Title
Consider and take action on a resolution authorizing an interlocal agreement with Galveston County and the Galveston County Tax Assessor Collector (GCTO) for Public Improvement District assessor collector services (Director of Finance)
Background:
Approval of this resolution will authorize an agreement with the Galveston County Tax Assessor Collector to bill and collect assessments for all of the City's Public Improvement Districts (PID). The contract period is three years beginning October 1, 2018 with two options of renewing for one year.
Local Government Code 372.017 authorizes the City to levy assessments in periodic installments. Local Government Code 372.015 authorizes the City to contract with the County for collection of assessments. Assessments of the Southwest has been the assessor collector mailing and collecting annual assessment statements for the City's PIDs since 2001. An agenda item was presented in August 2018 to renew their contract and at that time staff was directed to seek additional quotes, specifically from the County. The Galveston County Tax Assessor Collector is the assessor-collector for the City's property taxes.
Upon evaluation of the information received from the County it has been determined that it is in the best interest of the City and homeowners within the PIDs to move forward with a contract with the County, as the cost is minimal and will save the PIDs over $55,000 annually combined. The rate included in the agreement is $0.256 per parcel for an estimated total of $306.94 annually, with conversion costs of up to $5,000 in year 1. Due to the transition of vendors, we recommend billing separately from regular property taxes in year 1, which will result in a per parcel charge of $1 for a maximum number of 1,639 parcels (the number of parcels in the PIDs per GCAD). Approximate cost per PID for the current number of parcels billed is presented below:
Year 1 Future Years
PID #1 (Magnolia Creek) 413 Parcels ...
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