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2024-035 Denton Central Appraisal District Nomination Board of Directors Date: September 20,2024 Report No. 2024-035 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Nominations to the Board of Directors of the Denton Central Appraisal District. EXECUTIVE SUMMARY: The Denton Central Appraisal District (DCAD) has notified the City that the term for members on the current DCAD Board of Directors expires on Dec. 31, 2024. Therefore, DCAD is seeking nominations from the 61 taxing jurisdictions in the district. The City Council can make up to five nominations for the Board of Directors. Once DCAD receives nominations, a ballot will be sent to the City. The City Council will then vote to elect Board members at the Dec. 3, 2024, City Council meeting. BACKGROUND: During the second special session of the 88ffi Legislature, the passing of Senate Bill 2 changed the terms and composition of the board. The DCAD Board of Directors will increase from a five- member board to a nine-member board. The new board composition will include five voting members and three publicly elected members. No changes were made to the nomination and appointment process for taxing jurisdictions. Board members will now serve staggered four -year terms instead of two-year terms for all. DISCUSSION: The number of votes a taxing unit has is determined by their proportional share of the total levy in the district from the prior tax year. There is a total of 5,000 votes throughout the district. Current allocated votes for the City of Denton are being calculated by DCAD. The five candidates who receive the largest cumulative vote totals are appointed to the board. The current Board of Directors is as follows: Name Title Roy Atwood Chairman—Place 7 Charles Stafford Vice Chairman—Place 8 Ann Pom kal Secretary—Place 4 Angie Cox Member—Place 1 Lisa McEntire Member—Place 2 Rick Guzman Member—Place 3 David Terre Member—Place 5 Alex Buck Member—Place 6 Michelle French TAC—Member—Place 9* *Position changing to a voting member in 2024 Date: September 20,2024 Report No. 2024-035 ATTACHMENTS: Denton Central Appraisal District Memorandum, "Request for Nominations for DCAD Board of Directors" STAFF CONTACT: Jessica Williams, Chief Financial Officer Jessica.JWilliamskcityofdenton.com (940) 349-8244 REQUESTOR: Staff initiated. PARTICIPATING DEPARTMENTS: Finance Department STAFF TIME TO COMPLETE REPORT: .5 hour ANON MEMO TO: Denton County, School Districts and Cities that Levy a Tax FROM: Don Spencer, Chief Appraiser SUBJECT: Request for Nominations for DCAD Board of Directors DATE: August 14, 2024 It is time again for the Denton County taxing entities to select five individuals to serve as the DCAD Board of Directors. Each jurisdiction may nominate by written resolution up to five people to be considered for the DCAD Board of Directors. According to Section 6.03 of the Texas Property Tax Code, it is the chief appraiser's responsibility to initiate this process, which is the purpose of this memo. Please note that a chief appraiser does not have the authority, or the duty, to investigate or judge the qualifications of the nominees. Further, a chief appraiser cannot extend the deadline for receiving nominations. Please return your nomination(s) by written resolution before October 15, 2024. Please provide the name and address of the nominee(s). The District will send a questionnaire to each nominee requesting additional information to assist the entities in the voting process. CALENDAR FOR APPOINTMENTS: 1. Before October 1 st - Each jurisdiction will be advised of the number of votes they are entitled to cast in the election of the board of directors (those numbers are included in this email). 2. Before October 15th - The governing body of each jurisdiction may nominate by written resolution up to five candidate(s) to the DCAD Board of Directors. (The number of votes that each jurisdiction has is not relevant in the initial nomination phase.) 3. Before October 30th - A comprehensive list of the nominees will be compiled and this information will be sent to the taxing jurisdictions in the form of a ballot. 4. Before December 15th - The taxing jurisdictions choose by written resolution the candidate, or candidates, of their choice. The jurisdictions then submit the names of their candidates and the votes they cast for each candidate before the December 15th deadline. 5. Before December 31 st—A tabulation of the votes will be forwarded to the jurisdictions. The five candidates that have received the most votes become the Board of Directors as of January 1 st. 2��N cEtiT,P Denton Central Appraisal District (940) 349-3800 3911 Morse Denton, TX 76208 www.dentoncad.com .9rSA� O1�i Memo, Appointing Board of Directors, August 14, 2024 Page 2 SELECTING A NOMINEE AUTHORITATIVE GUIDELINES - The selection process is set forth in Section 6.03 of the Property Tax Code. This process is not an "election" governed by the Texas Election Code. It is an independent procedure unique to the property tax system. ELIGIBILITY - An appraisal district director must reside in Denton County for at least two years immediately preceding the date he or she takes office. Most residents are eligible to serve as a director. An individual that is serving on the governing body of a city, county, or school district is eligible to serve as an appraisal district's director. An employee of a taxing unit served by the appraisal district is not eligible to serve as a director. However, if the employee is an elected official, he or she is eligible to serve. A statute relevant to the Board selection process prohibits nepotism and conflict of interest for appraisal district directors and chief appraisers. In summary, the law states that: .......... "a person may not serve as director if closely related to anyone in the appraisal district or if related to anyone who represents owners in the district, or if the person has an interest in a business that contracts with the district or a taxing unit. A chief appraiser may not employ someone closely related to a member of the board of directors". TERM OF OFFICE — Section 5.13(d) of SB2 Second Special Session 88th Legislature redefined the terms for appointed positions on the appraisal district board of directors. For the term of office beginning on January 1, 2025, officers will serve either a one or a three year term. All terms thereafter will be 4 year staggered terms. Term length each appointed position will be determined by drawing during the first calendar meeting of 2025. FREQUENCY OF MEETINGS - The applicable statutes require the board of directors to meet a minimum of once each calendar quarter.