City of Milwaukee - File #: 130240

• File #: 130240
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 6/11/2013
• In control: COMMON COUNCIL
• Final action: 7/2/2013
• Title: Substitute resolution approving a service agreement between the City of Milwaukee and GovTech Services, Inc., for certain technical tax collection services.
• Sponsors: THE CHAIR
• Indexes: AGREEMENTS, PROPERTY TAXES

Date	Ver.	Action By	Action	Result	Tally
7/12/2013	1	MAYOR	SIGNED
7/2/2013	1	COMMON COUNCIL	ADOPTED	Pass	15:0
6/26/2013	1	FINANCE & PERSONNEL COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Individuals appearing: Jim Klajbor, Treasurer's Office Connie Klein, GovTech Services, Inc.	Pass	5:0
6/24/2013	1	FINANCE & PERSONNEL COMMITTEE	HEARING NOTICES SENT
6/11/2013	0	COMMON COUNCIL	ASSIGNED TO

Number
130240

Version
Substitute 1

Reference

Sponsor
The Chair

Title
Substitute resolution approving a service agreement between the City of Milwaukee and GovTech Services, Inc., for certain technical tax collection services.
Analysis
This resolution approves a service agreement with GovTech Services, Inc., to act as an intermediary between the City Treasurer and certain agents escrowing Milwaukee property taxes to coordinate the accurate and timely release of escrowed property taxes to the City to reduce the number of duplicate property tax payments made in error by escrow agents, and reduce the costs incurred by the City to process and issue refunds for these erroneous payments.
There will be no cost to the City under this service agreement.
Body
Whereas, The Office of the City Treasurer processed 51,417 payments from bank and mortgage company tax escrow agents during the 2012 tax collection season, and incurred additional expense refunding 6,950 duplicate payments made by these escrow agents in error; and

Whereas, GovTech Services, Inc., (GovTech) provides services as an intermediary between property tax collectors and escrow agents to coordinate tax escrow payments, and ensure more accurate and timely escrow payments while eliminating duplicate payments; and

Whereas, GovTech currently contracts with 111 escrow agents and 101 tax collectors, including the cities of Wauwatosa and West Allis, Milwaukee and Waukesha Counties; and

Whereas, All charges for GovTech’s services to these tax escrow agents and tax collectors are borne solely by the tax escrow agents with no charges accruing to the tax collector; and

Whereas, The Office of the City Treasurer expects to reduce costs by agreeing to participate as a tax collector in GovTech’s service program at no cost to the City by substantially reducing the number of refunds of duplicate tax escrow payments made in error, and the number of telephone inquiries received regarding tax payments and ...