The Porter County Commissioners on Tuesday may have put an end to a long-standing dispute among county officials by approving a contract with a new software vendor to handle the county’s property tax billing.

But while the contract approval may clear one obstacle with the county’s delayed tax bills, North Porter County Commissioner John Evans raised the burning question: Just when will the 2009 bills go out?

Porter County Treasurer Jim Murphy noted that a number of steps need to be taken in the coming weeks, but he projected that if all the various pieces of the tax work come together, the first installment of property tax bills could go out in September, with the final installment more or less back on track in November.

“It’s incumbent we get them something,” Evans said of taxpayers. He also noted that the delayed tax bills are causing havoc for taxing units, due to the delay in revenue and, in some cases, lowered bond ratings. “We’re causing them great problems,” he said.

The contract approved with Low Associates of South Bend totaled $322,777, of which the county has already paid $20,000. Additional services provided by Low could add up to an additional $186,000.

The Porter County Council, which would have to grant the add-on costs, is expected to hear an update of the county’s delayed tax bills at a special meeting today at 5 p.m.

The new Low program will replace software purchased two years ago from Hamer Enterprises of Texas. The choice of tax software vendors has prompted a protracted debate among office holders, first with the county assessor’s office favoring a different system. Then, after assorted glitches with Hamer, county officials agreed earlier this year to switch to Low. But then last week, Porter County Auditor Jim Kopp stunned other officials by saying that he would prefer to stick with Hamer after all.

On Monday, a number of county officials, including Kopp and his two top deputies, went to Low’s offices in South Bend to discuss the system. Kopp said it was a good meeting and that Low has agreed to provide items that he felt were important for a nearly integrated, real-time system.

The commissioners’ contract approval is contingent upon final approval by Low, which has disputed language in the state’s model contract for tax software vendors. Other documents approved by the commissioners included a work plan that outlines the county’s expectations of the new system and assurances that the county can access the source code if necessary.

Murphy said other counties that have the Low system are pleased with it. He also noted that unlike the Texas-based Hamer, Low is an Indiana company and might be more responsive in solving problems. Plus, its software is compatible with the assessor’s system.

Evans criticized the state’s current system, in which counties get to choose from different vendors without fully knowing if the programs will work. He said the state should select one system that could be used statewide.

Porter County Information Technology Services Director Sharon Lippens outlined the additional components that could still be added to the Low system.

One is the download and integration of tax data from the last four years. Lippens said this feature, estimated to cost up to $96,000, would be important in tax appeals, which could result in refunds to taxpayers retroactive for three years.

Another possible added cost is a $25,000 integration of the county’s Geographic Information System, which would allow updated parcel data to be transferred to the new tax system. The third additional cost involves getting the tax data on the county’s website. Lippens said the cost is estimated at $55,000 plus a yearly maintenance fee of $10,000, but she said the work could probably be done at less cost if the county handled the website in house or if it contracted out for the website but took on the maintenance itself.

In a separate matter, the commissioners discussed the option now available in Indiana for homeowners to make automatic monthly property tax payments via their checking accounts. The option was made possible due to a bill authored by State Sen. Karen Tallian that became law last year.

Murphy said he has always informally allowed taxpayers to come in at any time and make payments. If the county were to opt for the new payment program, he said the added work in his office would be “manageable but difficult” due to the calculations that would be needed.

Commissioner President Robert Harper urged Murphy to take the proposed ordinance to the county council, which is the body that would have to approve the new program. Harper said for many homeowners without an escrow account, it’s a burden to get hit with two large tax installments each year.

Evans said the monthly payments could help minimize the impact for taxpayers, while also speeding up tax revenue for taxing units. “A lot of the burden would be relieved,” he said.