CC MEETING: June 17, 2025
DATE: June 3, 2025
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Chrystal Davis, Assistant City Manager
Title
Consider Authorizing The City Manager To Enter Into An Interlocal Agreement With Denton County For Property Tax Assessment And Collection.
Body
BACKGROUND:
The City contracts with Denton County to administer and collect taxes for Denton County and Collin County parcels of property through the Denton County Tax Assessor and Collector’s Office. In addition to the collection and distribution of tax revenue, Denton County Tax Assessor and Collector also serves as the official Truth In Taxation calculation, provides guidance on required legal postings for property tax rate adoption, and mails property tax notifications to residential and commercial properties. The initial term of the agreement is for Tax year 2025 and is renewed automatically for subsequent one-year terms unless written notice is provided. The City will pay a set amount of $1.41 per parcel for the service.
FINANCIAL IMPLICATIONS:
The Budget for tax collection is budgeted in the Finance Department’s Administration Budget.
IMPACT ON COMMUNITY SUSTAINABILITY:
The ongoing collection and distribution of taxes is essential for the ongoing operations of the City and to ensure proper fiduciary care of the City’s largest revenue source.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends authorizing the City Manager to enter into an interlocal agreement with Denton County for Tax Assessment and Collection.