HomeMy WebLinkAbout2002 07 22 Regular I.2 Property Tax Review
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COMMISSION AGENDA
ITEM
I
CONSENT
INFORMA TIONAL
PUBLIC HEARING
REGULAR X
July 22, 2002
Meeting
MGR {l-.-tBEPT ~
A lIthoriz~ti()n
REQUEST:
The Finance Department is requesting the City Commission grant the City Manager
approval to enter into an agreement with MBIA MuniServices Company (MMC) for
Revenue Enhancement Services Pertaining to the City's Property Tax Revenue.
PURPOSE:
To gain Commission approval to contract with MBIA MuniServices Company (MMC) to
perform a property tax review.
CONSIDERA TIONS:
>- Objective - To realize all of the tax revenue to which the City is entitled to from the
taxable valuations within its jurisdiction.
>- Scope of Service -:
· Establish an inventory of every parcel located within the City boundaries
· Comparative analysis of the database with the County's database
· Examine records pertaining to locational coding of properties to ensure that
locations are not miscoded to another jurisdiction
· Examine records pertaining to homestead exemptions to identify any improperly
claimed
· Examine records pertaining to taxable valuations to identify and confirm any
errors/omissions
· For each error/omission/miscoding identified and confirmed, prepare
documentation to substantiate and facilitate recovery due from prior periods and
prevent recurring deficiencies in current and future years
· Prepare and forward to the County Property Appraiser and County Tax Collector
requests for corrective action of the errors
· Meet with staff to review and qiscuss findings and recommendations
);> Compensation - MMC will receive 35% of the additional tax revenue realized by
the City as a result of MMC detecting and documenting the error(s)/omission(s)
causing the property tax deficiencies. The 35% will apply to the additional revenue
realized by the City during the first 3 years following the correction, MMC will also
pursue recovery of revenue for eligible prior periods, if any. For retroactive
adjustments MMC's 35% shall apply to the amount of the adjustment.
);> Term - The initial term of this agreement shall be for 3 years from the date of
execution,
);> Timing and Reporting - MMC is prepared to commence the property tax service
within 10 working days following authorization. Annually, MMC will provide to the
City a report summarizing discovery service progress to date. MMC will provide the
initial set of property tax discovery service reports within 90 to 180 working days
following authorization.
FUNDING:
No up-front funding necessary. The property tax recovery program is contingent fee
based, MMC will receive 35% of the additional tax revenue realized by the City as a
result of MMC detecting and documenting the error(s)/omission(s) causing the property
tax deficiencies. The 35% will apply to the additional revenue realized by the City
during the first 3 years following the correction. MMC will also pursue recovery of
revenue for eligible prior periods, if any. For retroactive adjustments MMC's 35% shall
apply to the amount of the adjustment.
IMPLEMENTATION:
MMC is prepared to commence the property tax service within 10 working days
following authorization. Annually, MMC will provide to the City a report summarizing
discovery service progress to date. MMC will provide the initial set of property tax
discovery service reports within 90 to 180 working days following authorization.
RECOMMENDATION:
The Finance Department recommends that the City Commission grant approval to the
City Manager to execute the agreement for property tax revenue enhancement services
with MMC.
ATTACHMENTS:
· Draft agreement to provide Revenue Enhancement Services
Company/Service Information
COMMISSION ACTION:
DRAFT
June 5, 2002
AGREEMENT TO PROVIDE
REVENUE ENHANCEMENT SERVICES,
FOR THE CITY OF WINTER SPRINGS FLORIDA
June . ,2002
By
MBIA MuniServices Company
MBIA
MBIA MuniServices Company
MBIA MuniServices Co.
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TABLE OF CONTENTS
CONSULTANT SERVICES AGREEMENT
EXHIBIT A
PROPERTY TAX DISCOVERY SERVICE
MBIA MuniServices Co.
Page 2 of 18
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June 5, 2002
DRAFT
June 5, 2002
CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT IS made at Winter Springs, Florida, on
2002 by and between the City of Winter Springs a municipal
corporation (hereafter referred to as "City") and MBIA MuniServices Company
(hereafter referred to as "Consultant" or "MMC"), who agree as follows:
1, Services. Subject to the terms and conditions set forth in this
Agreement, Consultant shall provide to City the services described in Exhibit "A", (the
Exhibit). Consultant shall provide said services at the time, place, and in the manner
specified in the Exhibits. Consultant shall not be compensated for services outside the
scope of the Exhibits.
2. Payment. City shall pay Consultant for services tendered pursuant to
this Agreement at the times and in the manner set forth in the Exhibits, The payments
specified in the Exhibits shall be the only payments to be made to Consultant for
services rendered pursuant to this Agreement unless the City approves additional
compensation for additional service. Consultant shall submit all billings for services
rendered pursuant to this Agreement to City in the manner specified in the Exhibits,
3. Facilities and Equipment. Consultant shall, at its sole cost and expense,
furnish all facilities and equipment that may be required for furnishing services pursuant
to this Agreement.
4. Extra Services. City shall pay Consultant for those City authorized extra
services, not reasonably included within the services described in Exhibits "A", such
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amounts as mutually agreed to in advance. Unless the City and Consultant have agreed
in writing before the perfonnance of extra services, no liability and no right to claim
compensation for such extra services or expenses shall exist.
5. Assignment. This Agreement may be assigned by Consultant provided
the City has consented in writing to any assignment.
6. Term.
The initial term of this Agreement shall be for 3 years from
the date of execution. After the initial term, this Agreement shall remain in force until
terminated by either party in accordance with Section 23 below.
7. Hold Harmless. MMC shall indemnify and hold harmless City, its
officers, agents and employees, from and against any and all claims, demands, actions,
suits and proceedings by others against all liability arising out of negligent acts of
MMe, its employees and agents in the performance of this Agreement. In turn, the City
shall defend, indemnify and hold harmless MMC, its officers, agents and employees,
from any and .all claims, demands, actions, suits and proceedings by others, resulting
from erroneous information provided to MMC by City and upon which MMC can
reasonably be expected to rely.
9. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.
10. Severability. If any provision of this Agreement is declared or found to
be illegal, unenforceable, or void, then both parties shall be relieved of all obligations
MBIA MuniServices Co,
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June 5, 2002
under that provision, The remainder of the Agreement shall be enforced to the fullest
extent permitted by law.
11. Waivers. All conditions, covenants, duties and obligations contained in
this Agreement can be waived only by written agreement executed by all parties,
Forbearance or indulgence in any form or manner by a party shall not be construed as a
waiver nor in any way limit the legal or equitable remedies available to that party. No
waiver by either party of any default or breach shall constitute a waiver of any
subsequent default or breach.
12, Arbitration. All Claims, demands, disputes, controversies, differences,
or misunderstandings between the parties arising out of, or by virtue of, this Contract
shall be submitted to and determined by arbitration in accordance with the Rules of the
American Arbitration Association for commercial arbitration, such arbitration to be held
in Florida. The arbitrator's decision shall be final, binding and conclusive on all parties:
it will not be appealable and shall include a finding for payments of the costs of such
arbitration, not including fees and expense of counsel and witnesses. Judgment of a
court of competent jurisdiction may be entered upon the award and may be enforced as
such in accordance with the provisions of the award, This agreement to arbitrate is
specifically enforceable by the parties to this Contract. Nothing within this paragraph
shall prevent any party from resorting to judicial proceedings if interim injunctive or
other equitable relief is necessary to prevent and irreparable injury to a party,
13. Independent Contractor. At all times during the term of this Contract,
MBIA MuniServices Company (Consultant) shall be an Independent Contractor and
MBIA MuniServices Co.
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June 5, 2002
shall not be an employee of the City of Winter Springs, Florida (City). City shall have
the right to control Consultant only insofar as the results of Consultant's services
rendered pursuant to this Agreement; however, City shall not have the right to control
the means by which Consultant accomplishes services rendered pursuant to this
Agreement.
14. Subcontracts. Any subcontracts entered into by Consultant for services
to be rendered towards the completion of Consultant's portion of this Agreement shall
be for Consultant's benefit alone, and as such shall be its responsibility with no liability
resting on the City. Consultant agrees to provide a list of all subcontractors to be used
in connection with services to be rendered toward the completion of its portion of this
Agreement to the City within ten (10) working days of execution of this Agreement.
15. Licenses, Permits, Etc. Consultant represents and warrants to City that
they have all licenses, permits, qualifications and approvals of whatsoever nature, which
are legally required for Consultant to practice his profession, Consultant represents and
warrants to City that Consultant shall, at his sole cost and expense, keep in effect or
obtain at all times during the term of this Agreement any licenses, permits, and
approvals which are legally required for Consultant to practice his profession.
16. Time. Consultant shall devote such time to the performance of services
pursuant to this Agreement as may be reasonably necessary for satisfactory
performance of Consultant's obligations pursuant to this Agreement. Neither party shall
be considered in default of this Agreement to the extent performance is prevented or
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delayed by any cause, present or future, which is beyond the reasonable control of the
party.
17. Insurance.
a. Public Liability. During the term of this Agreement, Consultant
shall maintain in full force and effect a policy of public liability insurance
with minimum coverage's as follows: $1,000,000 for injury to one person
in anyone occurrence; $1,000,000 aggregate; and, $50,000.00 for property
damage. Consultant shall cause the City, its officials and employees to be
named on all liability policies described above as insured as respects: (1)
activities performed for the City by or on behalf of the named insured, (2)
products and completed operations of the Named Insured, and (3)
premises owned, leased or used by the Named Insured.
b. Worker's Compensation. During the term of this Agreement,
Consultant shall fully comply with the terms of the law of Florida
concerning worker's compensation. Said compliance shall include, but not
. be limited to, maintaining in full force and effect one or more policies of
insurance insuring against any liability Consultant may have for worker's
compensation.
18. Consultant Not Agent. Except as the City may specify in writing,
Consultant shall have no authority, express or implied to act on behalf of City in any
capacity whatsoever as an agent. Consultant shall have no authority, express or implied,
pursuant to this Agreement to bind City to any obligation whatsoever.
19. Personnel. Consultant shall assIgn only competent personnel to
perform servIces pursuant to this Agreement. In the event that City, in its sole
discretion, at any time during the term of this Agreement, desires the removal of any
person or persons assigned by Consultant to perform services pursuant to this
Agreement, Consultant shall remove any such person immediately upon receiving
notice from City of the desire of City for the removal of such person or persons,
MBIA MuniServices Co.
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20. Standard of Perfonnance.' Consultant shall perform all services
required pursuant to this Agreement in the manner and according to the standards
observed by a competent practitioner of the profession in which Consultant is engaged
in the geographical area in which Consultant practices his/her profession. All products
of whatsoever nature, which Consultant delivers to City pursuant to this Agreement,
shall be prepared in a substantial and workmanlike manner and conform to the
standards of quality normally observed by a person practicing in Consultant's
profession.
21. Reports, Charts or Other Products. All reports, charts and other
products resulting from the performance of this agreement are the property of the City.
22. City Representative. The City Manager or his/her designee IS the
representative of the City and will administer this Agreement for the City,
23, Termination, This Agreement may terminate on thirty (30) days written
notice by either party, or within such time as both parties may find necessary to
conclude the work in progress and to summarize Consultant's findings. Termination
shall not affect the payment of any compensation due MMC. In the event of
termination under this Section, City shall pay Consultant for services performed up to
the effective date of termination for which Consultant has not been previously paid.
Because the services performed by Consultant prior to termination may result in City's
receipt of revenue after termination and because this receipt of revenue entitles
Consultant to payment from the City even after termination, City agrees to provide to
Consultant after termination of this Agreement such information as is necessary to
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enable Consultant to calculate the compensation due to Consultant as a result of this
receipt of revenue by the City. The Consultant shall maintain the confidentiality of this
information.
24. Whole and Entire Agreement. This instrument contains the whole and
entire agreement of the parties hereto and correctly sets forth the rights, duties and
obligations of each to the others as of its date. Any prior agreements, promises,
negotiations or representations not expressly set forth in this Agreement are of no force
and effect.
25. Equal Employment Opportunity, During the performance of this
Agreement, Consultant, for itself, its assignees and successors in interest, agrees as
follows:
a. Compliance With Regulations: Consultant shall comply with the
Executive Order 11246 entitled "Equal Employment Opportunity": as
labor regulations (41 C.F.R, Part 60), hereinafter referred to as the
"Regulations. "
b. Nondiscrimination: Consultant, with regard to the work performed
by it after award and prior to completion of the work pursuant to this
Agreement, shall not discriminate on the ground of race, color, religion,
sex or national origin in the selection and retention of subcontractors,
including procurements of materials and leases of equipment.
MBIA MuniServices Co.
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June 5, 2002
c. Solicitation for Subcontractor, Including Procurements of
Materials and Equipment: In all solicitations either by competitive
bidding or negotiations made by Consultant for work to be performed
under any subcontract, including procurements of materials or equipment,
such potential subcontractor or supplier shall be notified by Consultant of
Consultant's obligation under this Agreement and the Regulations relative
to nondiscrimination on the ground of race, color, religion, sex or national
ongms.
d. Information and Reports: Consultant shall provide all information
and reports required by the Regulations, or orders and instructions issued
pursuant thereto, and will permit access to its books, records, accounts,
other sources of information and its facilities as may be determined by the
City to be pertinent to ascertain compliance with such Regulations, orders
and instructions, Where any information required of Consultant is in the
exclusive possession of another who fails or refuses to furnish this
information, Consultant shall so certify to the City and shall set forth what
efforts it has made to obtain the information.
e. Sanctions for Noncompliance: In the event of noncompliance by
Consultant with the nondiscrimination provisions of this Agreement, the
City shall impose such contract sanctions as it may determine to be
appropriate, including, but not limited to:
MBIA MuniServices Co.
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June 5, 2002
(I) Withholding of payments to Consultant under the contract
until Consultant complies;
(2) Cancellation, termination, or suspension of the Agreement,
in whole or in part.
f.
Incorporation of Provisions:
Consultant shall include the
provisions of paragraphs "a" through "e" in every subcontract, including
Regulations, order, or instructions issued pursuant thereto. Consultant
shall take such action with respect to any Regulations, order or
instructions issued pursuant thereto. Consultant shall take such action
with respect to any subcontract or procurement as the City may direct as a
means of enforcing such provISIOns including sanctions for
noncompliance, In the event the Consultant becomes involved in, or is
threatened with, litigation with a subcontractor or supplier as a result of
such direction, the Consultant may request City to enter such litigation to
protect the interests of the City.
26, Confidentiality, Consultant agrees that it shall keep all information it
receives concerning City taxpayers confidential and that it shall not use this information
for any purpose other than as expressly provided in this Agreement or otherwise
expressly consented to by City.
MBIA MuniServices Co.
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27. Notices. Any notice to be given from one party to the other pursuant
to this Agreement shall be deposited with the United States Postal Service postage
prepaid and addressed as follows:
To City:
To Consultant: Monica Keller
Contract Manager
MBIA MuniServices Company
The Curtis Center
Independence Square West
Suite 507
Philadelphia, P A 19106
Nothing in this Paragraph shall be construed to prevent the giving of notice by personal
service.
28. Exhibits. All Exhibits referred to herein are attached hereto and are by
this reference incorporated herein.
29, Counterparts. This Agreement shall be signed by the parties in two (2)
original counterparts, both of which shall constitute but one (I) Agreement.
EXECUTED as of the day and year first above stated,
CITY OF WINTER SPRINGS,
A Municipal Corporation
By:
Title:
MBIA MuniServices Co.
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June 5, 2002
Date:
ATTEST:
CITY CLERK
ATTEST TO FORM:
CITY ATTORNEY
MBIA MuniServices Company/MMC
By:
Marc Herman
Title: Chief Operating Officer
Date:
MBIA MuniServices Company/MMC
By:
Kevin Cerutti
Title: Chief Financial Officer
Date:
MBIA MuniServices Co.
Page 13 of 18
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June 5, 2002
EXHIBIT A
PROPERTY TAX DISCOVERY SERVICES
MBIA MuniServices Company (MMC) proposes to provide to the City of Winter
Springs, Florida (City) property tax discovery services. The background, objectives,
scope of services, timing and compensation are set forth as follows:
BACKGROUND AND OBJECTIVES
It is common for cities to be deprived of property tax revenue to which they are entitled.
This is largely due to administrative and procedural errors and omissions related to the
assessment and assignment and/or coding of properties within City boundaries,
Administrative and procedural errors and omissions are virtually assured given the non-
standard, complex nature of state and locally assessed property taxes with regard to
applicability, millage rates, exceptions, exemptions, and procedural inconsistencies.
Human fallibility, fragmented responsibilities, reduced staffing and staffs turnover further
compound the problem.
Because there are time limitations on the City's ability to recover tax revenue that has
been understated or incorrectly allocated, it is incumbent upon the City to detect these
property tax deficiencies as quickly as possible, before they become unrecoverable.
The objective ofMMC's property tax discovery services is to assist the City in realizing
all of the tax revenue to which it is entitled from the taxable valuations within its
jurisdiction. MMC's property tax discovery services result in the detection and
documentation of errors and omissions causing deficiencies and thereby recover tax
revenue that would not otherwise have been realized by the City.
MBIA MuniServices Co.
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June 5, 2002
PROPERTY TAX DISCOVERY PROCEDURES
The scope of services includes, but is not limited to, MMC providing the services
summarized as follows:
o Meet with designated City staff to review discovery service objectives and
scope, procedures, county/public agency relations and logistical matters; we
will also establish an appropriate liaison with City management and staff and
logical checkpoints for measuring progress;
o Establish a comprehensive, valid inventory of every parcel located within City
boundaries and the database elements needed to facilitate a comparative
analysis with the County's local real and personal taxable values;
o Represent the City for the purpose of examining records pertaining to locational
coding of properties to identify properties that are within the City but are
miscoded to another jurisdiction resulting in reduced revenue to the City,
o Represent the City for the purpose of examining records pertaining to
homestead exemptions, and utilizing MMC databases and others available to
MMC to identify improperly claimed homestead exemptions that are resulting
in non-payment and/or deficient payment of property tax to the City.
o Represent the City for the purpose of examining records pertaining to taxable
valuations to identify and confirm errors!omissions that are resulting in non-
payment and/or deficient payment of property tax to the City,
o For each error/omission/miscoding identified and confirmed, prepare
documentation to substantiate and facilitate recovery of tax revenue due from
prior periods (plus applicable interest and penalties, where appropriate) and
prevent recurring deficiencies in current and future years;
o Prepare and forward to the County Property Appraiser and County Tax
Collector requests for corrective action of the noted errors;
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o Meet with designated City staff to review and discuss our discovery service
findings and recommendations; and
o Provide additional assistance as necessary to support City in recovering and
preventing future revenue deficiencies.
TIMING AND REPORTING
MMC is prepared to commence the property tax service within 10 working days
following authorization. Annually, MMC shall provide the City with a report
summarizing discovery service progress to date.
MMC will undertake the property tax discovery effort by service segment, in the
following order: discovery of miscoded properties, discovery of improper homestead
exemptions, and discovery of unreported personal property tax. If the results ofMMC's
effort indicates that MMC's perfonnance-based fee for providing any segment of the
service is not likely to exceed the cost of providing it, MMC may cease providing that
segment of the service. In any case, such cessation of any segment of the service may
only occur after MMC has notified the City of the reasons for cessation and shall not
affect MMC's provision of any ofthe other service segments.
MMC shall deliver the initial set of the property tax discovery service reports within 90
to 180 working days following authorization and receipt of data necessary to conduct the
work. The City and MMC will mutually agree on the frequency and type of periodically
updated property tax discovery service reports to be provided thereafter.
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DATA AND FILE RETENTION
All data reports and other documentation (other than MMC's drafts, notes and internal
memorandum) shall become the property of the City upon tennination of this Agreement
and upon payment in full of all compensation due MMC. Upon termination of this
Agreement and at the request of the City, MMC shall deliver all, or the designated
portions of such, to the Client within 90 days of such request. Absent such a request from
the City after 90 days, MMC shall have the authority to archive and or destroy such
information. MMC does not warehouse data (magnetic media on computer disk drives)
and will not retain data used to perform the contracted services, except for data that is
available through "Public Domain." All magnetic media will be returned to the City
immediately after it has been processed by MMC. All Data that has been derived from
"Public Domain" data is the property of MMC.
COMPENSATION
MMC's compensation for providing the property tax discovery service is 35% of the
additional tax revenue realized by the City as a result of MMC detecting and
documenting the error(s)/omission(s) causing the property tax deficiencies. Said 35%
apply to the additional revenue realized by the City during the first 3 years following
correction. MMC will also pursue recovery of revenue for eligible prior periods, if any.
For retroactive adjustments MMC's 35% shall apply to the amount of the adjustment.
Under this arrangement, the City agrees to notify MMC within 10 days following receipt
by the City of payments resulting from MMC's discovery service, Upon the City's
receipt of payment, MMC will then invoice the City for its fee. Earned compensation is
due and payable upon receipt of invoice.
City agrees that it will pay all MMC invoices within thirty (30) days of receiving the
invoice. If City does not make payment within thirty (30) days of receiving MMC's
invoice and does not dispute the billing in writing, MMC has the discretion to collect one
percent (1 %) interest per month for each month the invoice remains unpaid.
MBIA MuniServices Co.
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If said property tax deficiencies are detected and documented during the tenn of this
Agreement, but not collected by the City until after this Agreement has expired, City
shall nevertheless pay Consultant its fee, including interest and penalties, upon receipt of
the revenue.
All expenses incurred by MMC in providing the property tax discovery service are
absorbed by MMC. These expenses include items such as salaries and benefits,
insurance, airfare, auto rentals, meals, lodging, keypunching, computer processing,
clerical, communications (e,g, meetings, telephone, mail, etc.) photocopying, overhead
and miscellaneous out-of-pockets for consumable supplies and research materials etc.
MBIA MuniServices Co.
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Municipal revenue officers are constantly seeking innovative strategies to improve the
efficiency and yield of their revenue streams. Their challenge is complicated by sudden and
burdensome shifts in state and federal mandates, by entrenched resistance to tax hikes, and
by flat or declining state and federal funding. Additional challenges include pre-exemptions
of taxing authority over the growing e-commerce sector.
ENHANCING MUNICIPAL REVENUE STREAMS
MBIA MuniServices Company (MMC) focuses its
extensive professional tax experience and data mining
capabilities on enhancing your revenue screams
within the parameters of your existing tax Strucmre.
As municipal revenue enhancemem specialists who
work exclusively in the public seeeor, MMC helps
local governmem finance professionals fulfill the
expanding service demands of their cOllStituems even
in the face of Rat or low"growth revenue performance.
MMC's proven revenue enhancemem techniques
idemifY and then recover governmem revenues that
are either unknown to the jurisdiction, misallocated
or deemed otherwise unco\lectable. These techniques
and compliance'programs have been tested in juris-
dictions across the country and across many different
tax types and revenue structures. MMCs skill at
integrating its people and services with your existing
compliance programs minimizes the disruptions and
oversight responsibilities [hat can complicate vendor
relationships where revenue matters are involved. A
case in point from the MMC diem list is Washington,
D.C. where MMC successfully steered a series of
complex compliance initiatives that required the
collaboration of several elements of the District's
Office of Tax and Revenue.
Using a broad range of services and products, from
audit to GIS mapping to recovery operations, MMC
has delivered resuk~ that consistently exceed our clients'
expectations. In 20 years of applying our revenue
enhancemem skills in the public sector, MMC's
programs have raised $800 million for governments
large and small. In f'hiladelphia alone, with the city
on the verge of insolvenc~', MMC's discovery, audit
and collections programs raised nearly $130 million
from non-compliance wirh the city's wage, business
privilege and net profits GLXCS. This was one of the most
successful recovery pro;ecrs of its kind and a key to
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MBIA MuniServices Company can help with the
challenges of fiscal administration by providing the
information tools needed to preserve and enhance
your local revenue base.
What MMC's Compliance Professionals
Can Do For You:
. Expand your community's tax base through
discovery programs that identifY non-filers.
. Restore revenue that was misallocated through
adminiscrative errors.
. Re-build the revenue stream by accelerating the
collections of known receivables.
. Preserve the perception of fairness by assuring
a 'level playing field.'
· Maintain complete security in the use of
confidential taxpayer data.
DISCOVERY AND DETECTION SERVICES
MMC's tax base expansion st~ategy identifies unknown
or unregistered taxpayers such as corporations,
individuals, partnerships and trusts whose activity
within your jurisdiction confirms an obligation to
comply with your tax codes. Our recroactive reviews
can yield major finds on their own, but there is also
the significant new revenue generated by restoring the
taxable entity to the regiStry for future receipts.
Our discovery programs also identifY under-reporting
by registered taxpayers. In the case of complex
corporate structures, our analysis can often confirm
that these corporations are nOt paying the correct
amount based on their true level of business activity.
MMC's discovery and detcction programs can be
tailored (0 focus on multiple tax types including sales
and use, income, propcrry, utility, lodging, and
business taxes.
continued
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COLLECTION AND RECOVERY
MMC offers a fi.1I1 range of collection and enforcement
programs CO help revenue departments recover known
tax and fee liabilities. These collection programs can
include dunning letters, skip-tracing, and direct
response through our cuscomer service ceIHers that
provide coast-[O-coast coverage.
HOMESTEAD AUDIT
For local and state governments trying co promote
residential stability and home ownership through tax
set-aside programs, MMC's Homestead Audit Service
can help rescore the integrity of this registry by
confirming the authenticity of the deduction. With
coday's transience, job shifts and 2nd-home ownership,
homestead exemptions are ripe for abuse and can
represent a significant drain on a jurisdiction's treasury.
A narrow homestead audit program for Washingcon,
D.C. netted $12 million in an 18-month period.
REVENUE INFORMATION SERVICES
MMC is unique ill its ability co offer revenue review,
analysis and information services that encompass all
general municipal taX sources. Our relational, Geo-based
Revenue Information Program (GRIP) produces a
detailed, geographically coded profile of the tax base
.and its variable revenue contributions; this allows
,
revenue managers to relate their economic base to
their tax structure. GRIP and other related products
give the municipal revenue manager additional tools
to develop and implement strategies that will preserve
and expand revenue.
PROPERTY TAX RECOVERY
Assessments assigned to incorrect Tax Rate Areas
can result in significant property tax revenue losses.
MMC's property tax audit team develops a detailed
parcel map using MMC's industry-standard
geo-coding techniques. MMC's auditOrs then engage
in a parce/-by-parcel review of secured and
unsecured properties that produces audit recovery
efficiencies of 98%.
AUDIT SERVICES AND ALLOCATION REVIEWS
MlvlC's Sales and Use tax allocation team has
generated hundreds of millions of dollars for our
California clients by uncovering erroneous
allocations of the sales and use tax. M MC's audit
and data-matching technicians authenticate the
misallocations; our team of legal and tax specialists
then advocate their findings on the jurisdiction's
behalf before the appropriate state aurhorities.
Our physical, on-site audit teams safeguard the
integrity of the local tax'code by bringing a
jurisdiction's compliance efforts co the ground level,
applying the physical audit that confirms nexus,
situs and business volumes that self-disclosure ne\'er
fully reveals. Working in conjunction with the
jurisdiction's legal counsel, MMC's physical audit
unit then follows the cases of stubborn non-
compliance through the legal and review cycle.
What MMC's Review and Analytical Staff
Can Do For You:
· Conducr performance-based, self-funding
tax reviews and analysis for every standard
municipal tax source.
. Facilitate revenue-related reporting to
other government entities and associated
reimbursement programs.
. Provide consultative services that include
forecasting, regulatory, legislative and policy
updates and projecr analysis.
MBIA Inc. is the world's foremost financial guarantor
and a leading provider of specialized financial services.
Our cost,effective products and services help public,
and private,sector clients worldwide meet their credit
enhancement, financial and investment needs.
MBIA Insurance Corporation has a financial strength
rating of Triple,A by Moody's, Standard & Poor's, Fitch,
and Rating & Investment Information Service.
Contact:
MBIA MuniServices
The Curtis Center
Independence Square West
Suite 507
Philadelphia. PA 19106-3323
215.574.8533
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CCIs my City receiving
all of its property tax
revenue:~:J:J
Often jurisdictions do not receive all of the revenue to
which they are entitled from various revenue sources.
Taxpayer errors frequently result in cities being deprived
of property tax revenue for any of several reasons (e.g.
improper homeowner exemptions).
eo................. ....................... .....0. ... .0..............................................
CCAre out-of-state
residents impropero/
claiming homeowner
exemptions in our City.?~~
CCAre non-resident .
vacation-home owners
claiming an exemption
in our City?~~
"'Are some individual
property owners claiming
multiple homeowner
exemptions in our City?~~ .
MBIA MuniServices Company's (MMC) property tax
revenue enhancement services can help identify and
correct improperly claimed homeowner exemptions in
your City, including:
· Out-of-state property owners claiming
exemptions
· Vacation home owners claiming exemptions
· Multiple homeowners exemption claims by
an individual
· Owners failing to discontinue exemption
upon movmg
Through the correction of these improper exemption
claims, MMC produces revenue the City is entitled to
but may not be receiving.
... ......... ............0.................. ............... ... .......... 0.......... .... .......0......
"'Are we receiving our
share of revenue from all
property taxes paid by
property owners in our
Cityr"
Taxpayer and administrative errors cause revenue due
a City to be diverted. MMC's proprietary systems and
procedures identifY economic activity in a community
leading to the detection and correction of taxpayer and
administrative errors, thereby securing revenue for the
City.
..... .... ........ ................ ....... ......... ......... ......... ..... ...... .... ...... ............
""Is there business equip-
ment or machinery in
our City on which the
property tax is "1U!t being
reported?""
MMC electronically identifies economic activity within
the City. Utilizing the discovered economic activity,
and applying MMC's proprietary processes, businesses
that should be reporting taxable personal property
(e,g. equipment and machinery) are determined. MMC
then detects non-reporting businesses and assists in the
filing of the appropriate taxes.
... ......... ...... ......... ... ... ....... .......... ........ ......... ........ ......... ..... ......... ...
MMC.s REVENUE ENHANCEMENT SERVICES
The Problem
Thousands of property tax assessments including both real (secured) and personal (unsecured)
are required annually. Taxpayer reporting errors and omissions, combined with general compli-
ance problems, are inevitable given the non-standard, complex nature of local property taxes.
Error rates rise as variables increase for property tax applicability, rates, exceptions, quirks and
other inconsistencies. Human bllibility, multiple and sometimes fragmented responsibilities,
coupled with the reality of employee turnover further compound the problem.
Outdated and/or invalid homeowner exemptions can also deny your City of revenues dlat it
should receive. The resulting loss of revenue from d1ese inappropriate exemptions, coupled
with the problems cited above, places an increased tax burden on homeowners who are prop-
erly reporting and paying their taxes, or erodes the level of service your City can provide.
Our Experience
MMC has been successful in conducting property tax related revenue enhancement efforts for
over 20 years. The .combined work of our property tax deficiency and allocation experts have
helped identif)r millions of dollars in ad valorem revenues that jurisdictions were entitled to but'
would not have received without MMC's efforts.
We Can Help You
MMC has revenue enhancement systems, processes, and extensive experience working with
government professionals. We can help ensure d1at your City receives the property taxes to
which it is entitled.
BENEFITS OF UTILIZING MMC's REVENUE ENHANCEMENT SERVICES
A Proven Track Record
MMC's services have produced hundreds of millions of dollars for MMC's clients in California,
Florida, Ge.orgia, Illinois, Michigan, New Jersey, Pennsylvania and the District of Columbia.
Multi-Revenue Expertise
MMC is staffed by proven tax and technology specialists with unparalleled expertise, experience
and revenue results in virtually all tax source types, including: property tax, occupational license
tax, utility taxes/franchise fees, tourist development tax, and income tax.
Self-Funding
In most instances, MMC's services are self-funding, that is, our compensation is entirely depen-
dent upon our performance and is derived from the new revenue produced by our services for
our clients.
Non-Selective Methodologies
MMC's methodologies are non-selective to ensure equal treatment for all entities and avoid
issues raised by selective methodologies;
Fairness, Equity and Fiscal Self-Reliance
MMC's services treat all taxpayers equally and assist our clients in balancing their budgets with-
out having to raise taxes and/or reduce services.
For further information) pLease contact:
MBIA
MBIA MuniServices Company
Dan O'Keefe
1870 Aloma Avenue, Suite 120
Winter Park, FL 32789
(407) 599-7055
mmc. florida@munisolutions.com
MBIA MuniServices Company