5913-Tax Collection Services Thru 9-30-2019ORDINANCE NO. 2017-200
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, TO ENTER INTO AN INTERLOCAL AGREEMENT
WITH DENTON COUNTY FOR THE COUNTY TO PROVIDE PROPERTY TAX BILLING
AND COLLECTION SERVICES FOR THE CITY OF DENTON; PROVIDING A SAVINGS
CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton (the "City") and Denton County (the "County") desire to
enter into an Interlocal Agreement for the County, through its duly elected tax assessor -collector,
to act as tax assessor and collector for the City for the purpose of billing and collecting property
taxes; and
WHEREAS, the County is well equipped to perform this service; and
WHEREAS, the City Council finds that the Interlocal Agreement is in the public interest;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this Ordinance
are incorporated herein by reference.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute the
Interlocal Agreement on behalf of the City with the County. The City Manager, or his designee,
is hereby authorized to carry out the rights and duties of the City under the Interlocal Agreement
including the expenditure of funds provided for therein.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the 12 day of 73 l , 2017.
dBo WATTS, AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ±AS1'0
Al' VEDEGAL FORM:
Aaron Leal, INTERIM CITY ATTORNEY
BY: 2f-!:
THE STATE OF TEXAS §
COUNTY OF DENTON §
INTERLOCAL COOPERATION AGREEMENT FOR TAX COLLECTION
BETWEEN DENTON COUNTY, TEXAS, AND
CITY/ TOWN OF Denton, Texas
THIS AGREEMENT is made and entered into this_ day of� ,
20175 by and between DENTON COUNTY, a political subdivision of the State of
Texas, hereinafter referred to as "COUNTY," and, the City/Town
of Denton, Texas , Denton County, Texas, also a
political subdivision of the State of Texas, hereinafter referred to as "MUNICIPALITY."
WHEREAS, COUNTY and MUNICIPALITY mutually desire to be subject to
the provisions of V.T.C.A. Government Code, Chapter 791, the Interlocal Cooperation
Act, and V.T.C.A., Tax Code, Section 6.24 and 25.17 and;
WHEREAS, MUNICIPALITY has the authority to contract with the COUNTY
for the COUNTY to act as tax assessor and collector for MUNICIPALITY and
COUNTY has the authority to so act;
NOW THEREFORE, COUNTY and MUNICIPALITY, for and in consideration
of the mutual promises, covenants, and agreements herein contained, do agree as follows:
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I.
The effective date of this Agreement shall be the 1St day of October, 2017. The term
of this Agreement shall be for a period of one year, from October 1, 2017, to and through
September 30, 2018. This Agreement shall be automatically renewed for an additional one
(1) year term at the discretion of the COUNTY and MUNICIPALITY, unless written notice
of termination is provided by the terminating party to the other party prior to one hundred -
fifty (150) days of the expiration date of the current term of the Agreement.
MUNICIPALITY agrees to deliver this agreement no later than September 5, 2017 or the
first Monday of September 2017 in manner required by COUNTY to fully execute said
collection services by COUNTY.
II.
For the purposes and consideration herein stated and contemplated, COUNTY
shall provide the following necessary and appropriate services for MUNICIPALITY to
the maximum extent authorized by this Agreement, without regard to race, sex, religion,
color, age, disability, or national origin:
1. COUNTY, by and through its duly qualified tax assessor -collector, shall
serve as tax assessor -collector for parcels in Denton County of the
MUNICIPALITY for ad valorem tax collection for tax year 2017, and each tax year for
the duration of this Agreement. COUNTY agrees to perform all necessary ad valorem
assessing and collecting duties for MUNICIPALITY and MUNICIPALITY does
hereby expressly authorize COUNTY to do and perform all acts necessary and proper to
assess and collect taxes for MUNICIPALITY. COUNTY agrees to collect base taxes,
penalties, interest, and attorney's fees.
2. COUNTY agrees to prepare and mail all current and delinquent tax
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statements required by statute, supplemental changes for applicable property accounts,
as well as prepare and mail any other mailing as deemed necessary and appropriate by
COUNTY; provide daily and monthly collection reports to MUNICIPALITY;
prepare tax certificates; develop and maintain both current and delinquent tax rolls,
disburse tax monies to MUNICIPALITY daily (business day) based on prior day tax
postings. COUNTY agrees to approve and refund overpayment or erroneous payment of
taxes for MUNICIPALITY pursuant to Texas Property Tax code Sections 31.11 and
31.12 from available current tax collections of MUNICIPALITY; meet the
requirements of Section 26.04 of the Texas Tax Code; and to develop and maintain such
other records and forms as are necessary or required by State law, rules, or regulations.
3. COUNTY further agrees that it will calculate the effective tax rates and
rollback tax rates for MUNICIPALITY and that such calculations will be provided at
no additional cost to MUNICIPALITY. The information concerning the effective and
rollback tax rates will be published in the form prescribed by the Comptroller of Public
Accounts of the State of Texas, and as required by Section 26.04 of V.T.C.A. Tax Code.
MUNICIPALITY shall notify tax assessor -collector no later than July 25th of each year
that MUNICIPALITY wishes publication of forms or notices specified in this section.
MUNICIPALITY further agrees that if COUNTY calculates effective and rollback tax
rates, COUNTY shall publish the required notices on behalf of MUNICIPALITY.
It is understood and agreed by the parties that the expense of publication shall be borne
by MUNICIPALITY and that COUNTY shall provide MUNICIPALITY's billing
address to the newspaper publishing the effective and rollback tax rates.
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4. COUNTY agrees, upon request, to offer guidance and the necessary forms
for posting notices of required hearing and quarter -page notices as required by Sections
26.05 and 26.06 of V.T.C.A. Tax Code and Section 140.010 of Local Government
Code, if MUNICIPALITY requests such 7 days in advance of the intended
publication date, COUNTY agrees to manage all notices and publications on behalf of
MUNICIPALITY if request is received no later than July 25th. MUNICIPALITY must
approve all calculations and notices, in the format required by COUNTY, before
publication may proceed. The accuracy and timeliness of all required notices are the
responsibility of MUNICIPALITY.
5. Should MUNICIPALITY vote to increase its tax rate above the rollback
tax rate the required . publication of notices shall be the responsibility of
MUNICIPALITY.
6. COUNTY agrees to develop and maintain written policies and procedures
of its operation. COUNTY further agrees to make available full information about the
operation of the County Tax Office to MUNICIPALITY, and to promptly furnish
written reports to keep MUNICIPALITY informed of all financial information affecting
it.
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7. MUNICIPALITY agrees to promptly deliver to COUNTY all records
that it has accumulated and developed in the assessment and collection of taxes, and to
cooperate in furnishing or locating any other information and records needed by
COUNTY to perform its duties under the terms and conditions of this Agreement.
8. COUNTY agrees to allow an audit of the tax records of
MUNICIPALITY in COUNTY'S possession during normal working hours with at least
48 hours advance, written notice to COUNTY. The expense of any and all such audits
shall be paid by MUNICIPALITY. A copy of any and all such audits shall be furnished
to COUNTY.
9. If required by MUNICIPALITY, COUNTY agrees to obtain a surety
bond for the County Tax Assessor/Collector. Such bond will be conditioned upon the
faithful performance of the Tax Assessor/Collector's lawful duties, will be made payable
to MUNICIPALITY and in an amount determined by the governing body of
MUNICIPALITY. The premium for any such bond shall be borne solely by
MUNICIPALITY.
10. COUNTY agrees that it will post a notice on its website, as a
reminder that delinquent tax penalties will apply to all assessed taxes which are not
paid by January 31, 2018.
11. COUNTY agrees that it will post to a secure website collection reports for
MUNICIPALITY listing current taxes, delinquent taxes, penalties and interest on a daily
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basis through September 30, 2018. COUNTY will provide monthly Maintenance and
Operation (hereinafter referred to as "MO"), and Interest and Sinking (hereinafter
referred to as "IS") collection reports; provide monthly recap reports; and provide
monthly attorney fee collection reports.
12. MUNICIPALITY retains its right to select its own delinquent tax
collection attorney and COUNTY agrees to reasonably cooperate with the attorney
selected by MUNICIPALITY in the collection of delinquent taxes and related activities.
13. MUNICIPALITY will provide COUNTY with notice of any change
in collection attorney on or before the effective date of the new collection attorney
contract.
COUNTY hereby designates the Denton County Tax Assessor/ Collector to act
on behalf of the County 'Tax Office and to serve as Liaison for COUNTY with
MUNICIPALITY. The County Tax Assessor/Collector, and/or his/her designee, shall
ensure the performance of all duties and obligations of COUNTY; shall devote sufficient
time and attention to the execution of said duties on behalf of COUNTY in full
compliance with the terms and conditions of this Agreement; and shall provide
immediate and direct supervision of the County Tax Office employees, agents,
contractors, subcontractors, and/or laborers, if any, in the furtherance of the purposes,
terms and conditions of this Agreement for the mutual benefit of COUNTY and
MUNICIPALITY.
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IV.
COUNTY accepts responsibility for the acts, negligence, and/or omissions
related to property tax service of all COUNTY employees and agents, sub -contractors
and /or contract laborers, and for those actions of other persons doing work under a
contract or agreement with COUNTY to the extent allowed by law.
a
MUNICIPALITY accepts responsibility for the acts, negligence, and/or
omissions of all MUNICIPALITY employees and agents, sub -contractors and/or
contract laborers, and for those of all other persons doing work under a contract or
agreement with MUNICIPALITY to the extent allowed by law.
VI.
MUNICIPALITY understands and agrees that MUNICIPALITY, its
employees, servants, agents, and representatives shall at no time represent themselves to
be employees, servants, agents, and/or representatives of COUNTY. COUNTY
understands and agrees that COUNTY, its employees, servants, agents, and
representatives shall at no time represent themselves to be employees, servants, agents,
and/or representatives of MUNICIPALITY.
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VII.
For the services rendered during the 2017 tax year, MUNICIPALITY agrees to
pay COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as
follows:
1. The current tax statements will be mailed by October 10th or as soon
thereafter as practical. In order to expedite mailing of tax statements the
MUNICIPALITY must adopt their 2017 tax rate by September 29, 2017. Failure of the
MUNICIPALITY to adopt a tax rate by September 29, 2017 may cause delay in timely
mailing of tax statements. Pursuant to Texas Property Tax Code §26.05 the
MUNICIPALITY must adopt a tax rate by the later of September 30th or 60 days after the
certified appraisal roll is received. Failure to adopt and deliver a tax rate by the later of
September 30th or 60 days after the certified appraisal roll is received may result in delay
of processing and mailing MUNICIPALITY tax statements. MUNICIPALITY agrees to
assume the costs for additional delayed tax statements, processing and mailing as
determined by COUNTY. Notwithstanding the provisions of the Tax Code, if
MUNICIPALITY fails to deliver the adopted tax rates (M&O and I&S) to the Tax
Assessor Collector by September 29, 2017, it may will cause a delay in the publication and
release of tax statements.
2. COUNTY will mail an additional notice during the month of March
following the initial mailing provided that MUNICIPALITY has requested such a notice
on or before February 28, 2018. The fee for this service will be a rate not to exceed
S0.82 per statement.
3. At least 30 days, but no more than 60 days, prior to April 1st, and
following the initial mailing, COUNTY shall mail a delinquent tax statement meeting the
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requirements of Section 33.11 of the Texas Property Tax Code to the owner of each
parcel to the owner of each parcel having delinquent taxes.
4. At least 30 days, but no more than 60 days, prior to July 1st, and following the
initial mailing, COUNTY will mail a delinquent tax statement meeting the requirements
of Section 33.07 of the Texas Property Tax Code will be mailed to the owner of each
parcel having delinquent taxes.
5. For accounts which become delinquent on or after June 1St, COUNTY
shall mail a delinquent tax statement meeting the requirements of Section 33.08 of the
Texas Property Tax Code to the owner of each parcel having delinquent taxes.
6. In event of a successful rollback election which takes place after tax bills for
MUNICIPALITY have been mailed, MUNICIPALITY agrees to pay COUNTY a
programming charge of $5,000.00. COUNTY will mail corrected statements to the owner of
each parcel. COUNTY will charge a fee for this service at a rate not to exceed
$0.82 per statement pursuant to Property Tax Code Section 26.07 (f). When a refund is
required per Property Tax Code Section 26.07 (g), COUNTY will charge a $.25 processing
fee per check, in addition to the corrected statement mailing costs. Issuance of refunds, in the
event of a successful rollback election, will be the responsibility of the COUNTY.
MUNICIPALITY will be billed for the refunds, postage and processing fees.
7. MUNICIPALITY understands and agrees that COUNTY will, no later than
January 31St, deduct from current collections o f t h e MUNICIPALITY the "Total Cost" of
providing all services described in paragraphs 1-5 above. This "Total Cost" includes any
such services that have not yet been performed at the time of deduction. The "Total Cost"
of providing all services described in paragraphs 1-5 above shall be the total of:
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$0.82 x the total number of parcels listed on MUNICIPALITY's September 30, 2017
end of year Tax Roll for tax year 2016.
In the event that a rollback election as described in paragraph 6 takes place, COUNTY
shall bill MUNICIPALITY for the applicable programming charge, check processing
fees, refunds paid, and refund postage costs. MUNICIPALITY shall pay COUNTY all
billed amounts within 30 days of its receipt of said bill. In the event costs for additional
delayed tax statements, processing and mailing are incurred as described in paragraph 1,
COUNTY shall bill MUNICIPALITY for such amounts. MUNICIPALITY shall pay
COUNTY all such billed amounts within 30 days of its receipt of said bill.
8. MUNICIPALITY further understands and agrees that COUNTY (at its
sole discretion) may increase or decrease the amounts charged to MUNICIPALITY for
any renewal year of this Agreement, provided that COUNTY gives written notice to
MUNICIPALITY sixty (60) days prior to the expiration date of the initial term of the
Agreement. The County Budget Office establishes collection rates annually based on a
survey of actual annual costs incurred by the COUNTY in performing tax collection
services. The collection rate for each year is approved by County Commissioners' Court.
All entities are assessed the same per parcel collection rate.
VIII.
COUNTY agrees to remit all taxes, penalties, and interest collected on
MUNICIPALITY's behalf and to deposit such funds into the MUNICIPALITY's
depositories as designated:
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I . For deposits of tax, penalties, and interest, payment shall be by wire
transfer or ACH to MUNICIPALITY depository accounts only, and segregated into the
appropriate MO and IS accounts. Only in the event of failure of electronic transfer
protocol will a check for deposits of tax, penalty and interest be sent by mail to
MUNICIPALITY.
2. If MUNICIPALITY uses the same depository as COUNTY, the deposits
of tax, penalty and interest shall be by deposit transfer.
3. In anticipation of renewal of this Agreement, COUNTY further agrees
that deposits will be made daily through September 30, 2018 It is expressly understood,
however, that this obligation of COUNTY shall not survive termination of this
Agreement, whether by termination by either party or by failure of the parties to renew
this Agreement.
4. In event that COUNTY experiences shortage in collections as a result
of an outstanding tax debt of MUNICIPALITY, the MUNICIPALITY agrees a
payment in the amount of shortage shall be made by check or ACH to COUNTY
within 15 days after notification of such shortage.
IX.
In the event of termination, the withdrawing party shall be obligated to make such
payments as are required by this Agreement through the balance of the tax year in which
notice is given. COUNTY shall be obligated to provide services pursuant to this
Agreement, during such period.
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X.
This Agreement represents the entire agreement between MUNICIPALITY and
COUNTY and supersedes all prior negotiations, representations, and/or agreements,
either written or oral. This Agreement may be amended only by written instrument
signed by the governing ' bodies of both MUNICIPALITY and COUNTY or those
authorized to sign on behalf of those governing bodies.
XI.
Any and all written notices required to be given under this Agreement shall be delivered
or mailed to the listed addresses:
COUNTY:
County Judge of Denton County
110 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
MUNICIPALITY:
The City/Town of Denton
Address: 215 E McKinney St.
City, State, zip: Denton, TX 76201
Telephone: 94 0-34 9-82 60
email:
Charles.Springer@cityofdenton.com
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XII.
MUNICIPALITY hereby designates C h u c k S p ri n g e r to act on behalf
of MUNICIPALITY, and to serve as Liaison for MUNICIPALITY to ensure the
performance of all duties and obligations of MUNICIPALITY as stated in this
Agreement. MUNICIPALITY's designee shall devote sufficient time and attention to
the execution of said duties on behalf of MUNICIPALITY in full compliance with the
terms and conditions of this Agreement; shall provide immediate and direct supervision
of the MUNICIPALITY employees, agents, contractors, subcontractors, and/or laborers,
if any, in the furtherance of the purposes, terms and conditions of this Agreement for the
mutual benefit of MUNICIPALITY and COUNTY.
XIII.
In the event that any portion of this Agreement shall be found to be contrary to
law, it is the intent of the parties that the remaining portions shall remain valid and in full
force and effect to the extent possible.
XIV.
The undersigned officers and/or agents of the parties are the properly authorized
officials and have the necessary authority to execute this agreement on behalf of the
parties. Each party hereby certifies to the other that any resolutions necessary for this
Agreement have been duly passed and are now in full force and effect.
Executed in duplicate originals this,,9 day of t I ,2017.
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COUNTY
Denton County
110 West Hickory
Denton, Texas 76201
BY:
Honorable Mary Horn
Denton County Judge
ATTEST:
BY:
Juli Luke
Denton County Clerk
APPROVED FORM AND CONTENT:
MUNICIPALITY
Town/City: Denton
Address: 215 E McKinney St.
City, State, Zip:
Denton, TX 76201
BY. O
LIL—
Name:Todd Hileman
Title: City Manager
V
B
N
T
GN NERE
�-- H E
APPROVED AS TO FORM:
Michelle French Name
Denton County Denton County Assistant
Tax Assessor/Collector District Attorney
APPROVED AS TO FORM:
CITY ATTORNEY
CITY 0 ENTON, T
BY: , ern .e
PGN HERE �
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