1994-07-11 Regular Meeting - Laserfiche WebLink

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~UEST FOR CITY COUNCIL AGENDA AGENDA DATE July 11, 1994 REQUESTED BY Jeff Litchfield, Finance-~C REPORT; RESOLUTION; X ORDINANCE; EXHIBITS: Contract; Calendar SUMMARY AND RECOMMENDATION Over the last several months, City and La Porte Independent School District staff have been working on a plan whereby the City would assume the tax collecting operation of the District. Currently, each entity bills its tax payers based on values reported by the Harris County Appraisal District. Both staffs feel this duplication of effort could be stopped and tax dollars saved if one entity collected for other. In discussions with Dr. John Sawyer, it was determined that while both staffs had the expertise to perform the collection operation, it currently would be a better fit for the City to assume the responsibility for collecting for the District. Attached is an ordinance that approves a contract with the District for the City to assume the Tax Collecting operation of the District. The School Board will consider this item at its meeting tomorrow, July 12th. The agreement is advantageous to the City because it lowers its total costs to collect taxes. Currently, the cost to collect taxes for one parcel is $6.00 per year. After the contract is approved, the City's cost to collect one parcel will drop to $3.60. The City expects revenues from the agreement to total $80,000 each year while annual costs will only go up $30,000. In conjunction with approving the contract with the District, the City needs to amend its current year budget for the addition of a new position and the purchase of a new computer system. The budget needed for the new position is $3,000 for the remaining portion of this year and the costs needed to be added for a new computer system totals $25,389. Both the new position and the computer system budget additions are contingent upon the School District approving the agreement at their meeting tomorrow night. As a side note, the School District currently collects taxes for the Cities of Morgan's Point and Shoreacres. Once the agreement is reached with the School District, a similar agreement will be offered to each of these cities. ACTION REQUIRED BY COUNCIL: Approve ordinance authorizing the City to become the Tax Collector for the La Porte Independent School District and amending the current year tax budget for $3,000 in personal services and $25,389 in capital outlay, both being contingent upon approval of the contract by the School District. FUND ACCT NUM: FUNDS AVAILABLE: APPROVED FOR CITY COUNCIL AGENDA Q~~ T. ~- ROBERT T HERRERA CITY MANAGER -~ 17 ~ ~~ DATE