SUBJECT
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Authorizing the City Manager to renew the contract for the Collection of Delinquent Property Taxes and Other Charges with the firm Flores, Flores & Canales, PLLC in light of the impending expiration of the existing contract on September 30, 2026. The term of the contract will be the same as the current one, which is for three (3) years, commencing October 1, 2026 and ending September 30, 2029, with a two (2) year option to extend commencing on the first day after the expiration date of the previous term. Funding is available in General Fund-Tax Department.
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PREVIOUS COUNCIL ACTION
On April 19, 2021, City Council made a motion to enter into a three (3) year contract with the current delinquent tax attorney, Flores, Flores & Canales, PLLC with a two (2) year option to extend commencing on the first day after the expiration date of the previous term; therefore, the term ends on September 30, 2026.
BACKGROUND
The Texas Property Tax Code, Section 6.30, allows jurisdictions to hire an outside attorney to collect delinquent property taxes. It also allows jurisdictions to adopt by resolution additional attorney fees assessed to all delinquent tax accounts to defray the cost of collections.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating:
Supporting goal(s)/policy(ies):
Summary of alignment:
COMMITTEE RECOMMENDATION
Not Applicable.
STAFF RECOMMENDATION
recommendation
Authorize the City Manager to renew and execute this contract.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Click or tap here to enter text.
Account #: 101-1810-513-5201
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
Section 33.07 and 33.11 of the Property Tax Code allows taxing entities to incur an additional penalty to defer the costs of collection. Attorney fee's payable to Attorney under this contract shall not exceed the amount actually received by the City as collection costs from delinquent taxpayers subject to appropriation each budget year in revenue account 101-0000-303-1200 and expenditure account 101-1810-513-5201.