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Cnergizeng OntarJo
REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: APR 18, 2011
Report#: FND-007-11 File
Resolution #: CF'r~1-3~G-! /
By-law #: N~~
Subject: PRE-AUTHORIZED WEEKLY PAYMENT OF PROPERTY TAXES
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend tc Council the following:
THAT Report FND-007-11 be received for information.
Submitted by:
NT/MM/hjl
;;
Reviewed by:
cy Ta lor, B. ., C.A. Franklin Wu,
Director f Finance/ Chief Administrative Officer
Treasurer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379
REPORT NO.: FND-007-11
PAGE 2
BACKGROUND:
1.0 At the General Purpose and Administration Committee meeting of March 21, 2011,
Committee approved Resolution #GPA-271-11 as follows:
Moved by Councillor Neal, seconded by Councillor Hooper
THAT the Director of Finance prepare a report on whether or not a weekly
payment program for payment of residential property taxes may be instituted.
1.1 The tax division of the Finance Department has been working diligently to
improve our tax collection process and enhance customer service options.
Certainly a weekly pre-authorized payment (PAP) option would be an additional
customer service enhancement.
1.2 There are two key issues that required investigation, whether the tax software
(Vailtech) has the capability to process a weekly PAP and the costs associated
with banking fees based on our banking contract. There would be additional
staff time to administer a weekly program but this would mostly be in the upfront
set-up of the program and transferring those existing taxpayers on the monthly
program that would want to transition to a weekly program.
COMMENTS:
2.0 Upon enquiry to Vailtech, our tax software company we bill from, they have
advised that our current program will not allow a correct calculation for a weekly
Pre-authorized Payment Plan. Programming changes would incur a cost of
between $3,000 and $4,000 to accommodate a weekly program. This is due to
the modifications to create a weekly program as this is currently not an existing
option, as well as costs to modify the calculations done on the final tax bills to
recalculate a revised weekly amount during the year and incorporate in the final
tax bill process (rather than multiple mass mailings with associated costs).
2.1 TD Client services quoted a price of $10.00 per file submitted and a 0.06 per
transaction cost. This translates to $520 per year as additional fixed costs ano
approximately $312 per year for every 100 taxpayers that join this program (ie.
$3,120 if 1,000 taxpayers participate).
2.2 The Municipality of Clarington currently has aPre-Authorized Payment Plan
available to taxpayers on a monthly basis which over 6,000 taxpayers are currently
enrolled.
2.3 Potentially many of our current Monthly Pre-Authorized members may switch to
the weekly plan which would be an increased cost due to the frequency, without
actually increasing the overall usage or participation in the. overall plan.
REPORT NO.: FND-007-11
PAGE 3
CONCLUSION:
3.0 It is not recommended at this time that any change be made to institute a Weekly
Pre-Authorized Payment Plan due to the costs involved. While interest is not
waived, taxpayers do have the option of independently paying on a weekly basis
through their Internet banking or telephone banking arrangements.