Bernards Twp Resolution

Resolution #050272 Authorizing On-Line Electronic Paperless Check Method for the Collection (ACH Payment) of Property Taxes and Agreement with CIT-E-NET LLC

WHEREAS, the Bernards Township Chief Financial Officer has recommended that the Bernards Township Committee authorize the use Automated Clearing House (ACH) banking transactions for the payment of property taxes via the internet, and

WHEREAS, the acceptance of said ACH transactions create a no cost, secure, and convenient alternative payment method for Bernards Township taxpayers to pay property taxes on-line, and

WHEREAS, the Township’s tax collection software provider has performed all necessary software modifications to allow this processing method to effectively, and efficiently proceed, and

WHEREAS, CIT-e-NET LLC has developed this method, has demonstrated their competence, and is the preferred partner of the Township’s banking institution, and

WHEREAS, the Township Attorney reviewed the attached agreement;

NOW THEREFORE, BE IT RESOLVED by the Township Committee of the Township of Bernards, in the County of Somerset and the State of New Jersey, as follows: The Chief Financial Officer is hereby authorized and directed to execute the attached Service Agreement with CIT-e-NET LLC to upgrade our tax collector’s internet service capability by integrating ACH payment capabilities into our municipal web-site.

Explanatory Statement: This resolution will authorize the collection of tax payments by electronic Automated Clearing House (ACH) transactions. Many taxpayers have requested free on-line payment options for property taxes. To accept credit cards for taxes in a traditional sense would be cost prohibitive to the Township; we are only able to offer the high-cost third party option. The ACH alternative is free, and secure to taxpayers who want to pay their taxes on-line from any internet connection. There will be a seamless link for this service from our website. The system will interface with our tax collection system, for quick, accurate posting to payees’ tax accounts. ACH transactions are cheaper for banks, and depositors to process than paper. This has been a joint effort to seek a cost effective solution for our taxpayers. Wachovia Bank listened to our requests, and developed a relationship with CIT-e-NET. Bernards IT staff provided the expertise for the technological linkages required. Edmunds and Associates provided free programming changes to our collection software to enable this project. Monies are available next banking day in the Township’s accounts, and the detail of all ACH transactions will be available via our current on-line banking services. The system is completely taxpayer initiated at payment time; Township personnel would not control automatic debiting to any accounts. The plan is to have the same capability available for residents to pay for Sewer Fees, and for the Sewerage Authority to share in the costs. The Township’s costs (payable to CIT-e-NET are as follows: One time set up and programming fee $1,250.00 Annual Fee $ 500.00 Property Tax Payment Annual $ 250.00

CIT-e-NET uses this system with other clients to collect via internet ACH other types of fees such as Construction Permit Fees, Recreation Programs, Memberships, etc. As we explore other future uses such as these, they can be added for $250.00 per application.

Bruce McArthur, CFO

Agenda and Date Voted: 6/28/06