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NO~I~ C~f~OLINA <br /> <br />December 9, 1997 <br /> <br />To: Frank Clifton <br /> <br />From: Blair Bennett <br /> <br />Subject: Use of Lock Box for Tax Collections <br /> <br />A committee comprised of Linda Morgan, Donna Deal, Terry Rowland and Blair Bennett <br />has been reviewing the possibility of using a lock box service offered by banks for receipt <br />of tax payments. Lock box service is specifically designed for companies that regularly <br />receive large volume of payments from customers. The lock box services works as <br />follows. The bank provides the County with a special post office box with our own <br />unique zip code. This unique zip code allows our tax payments to by-pass regular mail <br />sort patterns, thereby reducing mail float. The bank makes frequent mail pick-ups from <br />the post office during each day, immediately delivering our payments to the lock box <br />operations center. The payments are opened, sorted and processed according to our <br />specific instructions. Tax remittance notices are optically scanned by remittance <br />processing equipment. This equipment collects preprinted payment data and produces <br />reports and a computer file for transmission of the tax receivables so that our files can be <br />updated daily. Checks are endorsed and deposited to our bank account the same day <br />received. <br /> <br />Through a bank mail study we discovered that tax payments coming to our normal post <br />office box could take as long as three extra days to reach us versus using this lock box <br />service. This service does come with a cost, but I believe that interest earning on the <br />funds received by this special zip routing and processing would offset much of that cost. <br />After extensive research and pricing discussions we have negotiated with BB & T for <br />delivery of this service. Based on our volume the armual cost would be approximately <br />$17,000. While this will free up some processing time in the tax collectors office, there is <br />still plenty of work to be done. We need to concentrate more on delinquent taxes, <br />especially as it relates to motor vehicles. <br /> <br />I am requesting approval of a contract with BB & T to begin this service in late January <br />1998. <br /> <br /> Finance Department <br /> <br />P.O Box 707 · Concord, NC 28026-0707 · (704) 788-8104 <br /> <br /> <br />