12-09-13 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested:December 9, 2013 Source of Funds:N/A Requested By:Kathy Powell Account Number: Department:Finance/Tax Amount Budgeted: Report: Resolution: Ordinance: X Amount Requested: Exhibits:Ordinance Budgeted Item:YESNO Exhibits: Approved Contract by LPISD Exhibits SUMMARY & RECOMMENDATION In July 1994, the City entered into a contract with the La Porte Independent School District to assume itsTax Collection operations. Under the terms of this contract, the City collects current and delinquent ad valorem taxes for the District through the City’sTax Assessor/Collector and the La Porte Tax Office, and performs all related duties. The services performed include, but are not limited to: (1) Receipt of the Certified Appraisal Roll from Harris County Appraisal District (HCAD); (2) Receipt and processing of all Correction and Supplemental Tax Rolls; (3) Provision of Tax Roll and payment data to mortgage companies, property owners and tax representatives; (4) Truth in Taxation calculation and public notices; (5) Deposit of Taxes collected into District account; (6) Compilation and mailing of Tax billing notices;and(7) Specialized reports as needed. This relationship has worked out extremely well, and staffbelieves it to be a benefit to the La Porte citizenry. Not only do citizens get the convenience of paying both City and School taxes in one place, they also get the added benefit of having their tax dollars support only one Tax Collection operation. Staff is recommending that the Cityrenew this contract for a three year period, to continue on a year to year basis thereafter. The City currently receives $4.35 for each separate assessed item on the District’s certified roll, as reported by the Harris County Appraisal District on its first roll. There are approximately 22,450 accounts, and the City currently receives approximately $97,660 per year for these services. This contract will increase by twenty-five cents ($0.25) per item per year, with a cap of seven dollars and forty-five cents in the third year of the contract. Fiscal Year 2013-14 $6.85 Fiscal Year 2014-15 $7.10 Fiscal Year 2015-16 $7.35