2022-05 Department of Finance Real Property Tax Division Revenue Cycle Management

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Competing priorities of maintaining and invoicing active parcels, skip tracing new addresses on mail returns, and going to sites to post property, do not leave staff time to conduct robust, proactive community outreach to resolve longstanding delinquencies. The volume of delinquencies in aggregate has reached numbers that call into question whether the staff can provide quality management on each communication. Table 6 assumes the division wants to work each account once per month, and collectors working these parcels can commit their full time and attention to collection efforts without multitasking. County of Hawai'i 13,871 Delinquent Parcels Calculations Collector "A" Collector "B" Collector "C" Divide by three employees 41624 41624 41624 Divide by 4 weeks 11156 11156 11156 Divide by 5 days 231 231 231 Divide by 8 hours 29 29 29 Divide by 60 minutes 2 accounts 2 accounts 2 accounts per minute per minute per minute Table 6,compiled courtesy OCA. While RPT has a category devoted to payment arrangements, it does not have an effective strategy, including income or payment matrices, an outreach strategy, or the ability to manage secured monthly payments. Cause and Condition The RPT collection process is designed for invoicing and collecting taxes. Proactive community outreach to establish, monitor, and maintain payments is not being prioritized. Effect RPT has an ineffective system to manage payment arrangements which cannot ensure ease of access and lacks a uniform approach. Recommendation 2 Payment Arrangements We recommend that RPT establish payment arrangements to resolve delinquent property-tax debts as one of its primary activities and develop a system to ensure effective management. 29 Page