RES 2010-13TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2010-13
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS APPROVING AN INTERLOCAL
AGREEMENT FOR COLLECTION OF THE EMERGENCY
SERVICES ASSESSMENT ON THE TROPHY CLUB PUBLIC
IMPROVEMENT DISTRICT NO. 1 ENTITLED "INTERLOCAL
COOPERATION AGREEMENT TAX COLLECTIONS";
PROVIDING FOR THE INCORPORATION OF PREMISES;
AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT
ON BEHALF OF THE TOWN; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas
Governrnent Code, authorizes governmental entities to contract with each other
to perform government functions and services, such as those that serve the
public health and welfare; and
WHEREAS, Oenton County is a political subdivision of the State of Texas
(hereinafter "County"), and is therefore an entity with which the Town may
contract; and
WHEREAS, County collects ad valorem taxes for the Town of Trophy
Club, a home rule municipality (hereinafter "Town"), and collects assessments for
Trophy Club Public Improvement ~istrict No.1, a special district established
under Texas law (hereinafter "PIO"); and
WHEREAS, the PIO is located wholly within the boundaries of Town, has
legal authority to levy assessments on the properties located within its
boundaries; and
WHEREAS, PIO assessments are not ad valorem taxes but are purely
administrative assessments on property based upon a Service and Assessment
Plan applicable to and regulating the PIO and approved by the Town Council
acting in its capacity as the PIO Board; and
WHEREAS, the PIO has levied assessments to pay for the costs of
emergency services provided to the residents of the PIO (hereinafter
"Assessments"), and those Assessments are not an ad valorem based tax nor
are they legally classified as a tax; and
WHEREAS, the Assessments are regulated and limited only by state law
governing public improvement districts and by the Service and Assessment Plan
adopted for the PIO, are not subject to any state law limitations applicable to the
Resolution 2010-13
·Ref. 52_ICA Tax Coliection(Oenton ety -PI0#1-EMS(PI0 0 & M)
(File 10 2010-389)
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amount of tax that may be adopted, nor are the Assessments subject to state law
rollback provisions; and
WHEREAS, the Town Council has been presented a proposed Interlocal
Cooperation Agreement by and between Town of Trophy Club PIO #1 Emerg
Services, and the County entitled "Interlocal Cooperation Agreement -Tax
Collection" a sUbstantial copy of which is attached hereto as Exhibit "A" and
incorporated herein by reference (hereinafter called "Agreement"); and
WHEREAS, for their own administrative purposes, County has classified
the PIO Assessment as a tax; however, the amount to be collected by the County
from the residents of the PIO is the amount of the Assessment lawfully approved
and levied after a public hearing on the Service and Assessment Plan for the
PIO; and
WHEREAS, the process for the collection of the Assessments and the
process for the collection of taxes are the same; and
WHEREAS, the County has erroneously classified the Emergency
Services Assessment levied by the PIO as an "Emergency Services ~istrict" and
WHEREAS, as a result of this misciassification, the County has
designated the Assessment as a "tax" in the Agreement, which designation is an
error in terminology, but does not impact the amount collected nor does it
substantially impact the process for the collection of the Assessments; and
WHEREAS, County has advised Town that it will consider changing its
designation of the PIO Assessment from a tax to an assessment for the collection
year beginning October 1, 2011, but will not change that terminology for the
upcoming collection beginning on October 1, 2010; and
WHEREAS, the County will only collect the Assessment for the PIO if the
Town approves the Agreement; and
WHEREAS, upon full review and consideration of the Agreement and of
this Resolution, and all matters attendant and related thereto, the Town Council
is of the opinion that the County's error in classifying the Assessment as a "tax"
does not affect the substance or character of the Assessment, that execution of
the Agreement serves a valid public purpose, that all funds necessary to pay for
the services shall be paid out of current revenue legally available to the parties to
the Agreement and shall not exceed the amount budgeted therefore in the
current fiscal year budget, that the terms and conditions of the Agreement should
be approved, and that the Mayor or her designee should be authorized to
execute the Agreement on behalf of the Town of Trophy Club.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS THAT:
Resolution 2010-13
"Ref. 52_ICA Tax Coliection(Oenlon Cly -PI0#1-EMS(PI0 0 & M)
(File 102010·389)
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Section 1. The above and foregoing premises are true and correct and
are incorporated herein and made a part hereof for all purposes.
Section 2. Notwithstanding the County's misciassification of the
Assessment, the Town Council of the Town of Trophy Club, Texas does hereby
approve and agree to enter into the Agreement, a true and correct copy of which
is attached hereto and incorporated herein as Exhibit "A", so that the Assessment
is collected for the use and benefit of the PID.
Section 3. Approval of this Resolution and the Agreement supersedes
the Town Council's previous approval of an amended agreement with Denton
County for collection of the emergency services assessment.
Section 4. The Mayor and the Town of Trophy Club is hereby
authorized, empowered and directed to execute the Agreement on behalf of the
Town of Trophy Club.
Section 5. This Resolution shall take effect from and after its date of
passage.
PASSED AND APPROVED by the Town Council of th
Club, Texas this the 19 1h day of July, 2010.
ATTEST:
1 /\ J' /~ d1 '7/ /J/}/JI( v/ LIsa HenneK, TOwn Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
~J1C~~
atncla A. Adams, Town Attorney
Town of Trophy Club, Texas
Resolution 2010*13
'Ref. 52_ICA Tax Coliecllon(Oenlon Cly ·PI0#1-EMS(PI0 0 & M)
(File 10 2010·389)
Mayor Pro Tem, Glenn Strother
Town of Trophy Club
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