2013-176s:llegallour documentslordinances1131denton county properiy tax interlocal agreement.doc
ORDINANCE NO. 2013-176
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 COLLECTIONS 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 ta�c 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
axe 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 � day of _�f �� J,/ , 2013.
A�Bi�R�[JC�IS, MAYOR
ATTEST:
JENNIFER WALTER�„ CITY SECRETARY
I�
APPI�VED A�TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
THE STATE OF TEXAS §
COUNTY OF DENTON §
INTERLOCAL COOPERATION AGREEMENT FOR TAX COLLECTION
BETWEEN DENTON COUNTY, TEXAS, AND
CITY/TOWN OF DENTON
THIS AGREEMENT is made and entered into this 16TH
day of �u�Y 2013, by and between DENTON COiTNTY, a political
subdivision of the State of Texas, hereinafter referred to as "COLTNTY," and, the
CIiy�TOWll Of DENTON � Denton County, Texas, also a political
subdivision of the State of Texas, hereinafter referred to as "MUNICIPALITY."
WHEREAS, COITNTY and MIJNICIPALITY 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 COITNTY to act as tax assessor and collector for MITNICIPALITY and
COLJNTY has the authority to so act;
NOW THEREFORE, COLTNTY and MITNICIPALITY, 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 ls` day of October, 2013. The
term of this Agreement shall be for a period of one year, from October 1, 2013, to and
through September 30, 2014. This Agreement shall be automatically renewed for an
additional one (1) year term at the discretion of the COITNTY and MITNICIPALITY,
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 cunent term of the
Agreement. MLTNICIPALITY agrees to deliver this agreement no later than September
30, 2013 in manner required by COiJNTY to fully execute said collection services by
COUNTY.
II.
For the purposes and consideration herein stated and contemplated, COITNTY
shall provide the following necessary and appropriate services for MLTNICIPALITY fo
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 asscssor-collector, shall
serve as tax assessor-collector for p a r c e 1 s i n D e n t o n C o u n t y o f t h e
MITNICIPALITY for ad valorem tax collection for tax year 2013, and each tax year
for the duration of this Agreement. COITNTY 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 MLTNICIPALITY. COITNTY agrees to collect
base taxes, penalties, interest, and attorney's fees.
2. COITNTY 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
COLTNTY; provide daily and monthly collection reports to MUNICIPALITY;
prepare tax certifcates; develop and maintain both current and de�iinquent tax rolls,
disburse tax monies to MLJNICIPALITY daily (business day) based on prior day tax
postings. COUNTY agrees to approve and refund overpayment or enoneous payment of
taxes for MiTNICIPALITY pursuant to Texas Properiy Tax code Sections 31.11 and
31.12 from available current tax collections of MIJNICIPALITY; meet the
requirements of Section 26.04 of the Texas Taac Code; and to develop and maintain such
other records and forms as are necessary or required by State law, rules, or regulations.
3. COLTNTY further agrees that it will calculate the effective tax rates and
rollback tax rates for MIJNICIPALITY 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.
MUNICIP,ALITY further agrees that if COUNTY calculates effective and rollback tax
rates, COtTNTY shall publish the required notices on behalf of MLTNICIPALITY.
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.
Page 3 of 14
0
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, if MUNICIPALITY requests such 7 days in
advance of the intended publication date, COiTNTY agrees to manage all notices and
publications on behali of MUNICIPALITY if request is received no later than July 25th.
MITNICIPALITY must approve all calculations and notices, in the format required by
COIINTY, before publication may proceed. The accuracy and timeliness of all required
notices are the responsibility of MITNICIPALITY.
5. Should MiTNICIPALITY vote to increase its tax rate above the rollback
tax rate the required publication of notices shall be the responsibility of
MUNICIPALITY.
6. COITNTY 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 MITNICIPALITY, and to promptly furnish
written reports to keep MIJNICIPALITY informed of all financial information affecting
it.
Page 4 of 14
7. MUNICIPALITY agrees to promptly deliver to COITNTY 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
COLTNTY to perform its duties under the terms and conditions of this Agreement.
8. COUNTY agrees to allow an audit of the tax records of
MiTNICIPALITY in COITNTY'S possession during normal working hours with at least
48 hours advance, written notice to COIJNTY. The expense of any and. all such audits
shall be paid by MIJNICIPALITY. A copy of any and all such audits shall be furnished
to COITNTY.
9. If required by MITNICIPALITY, 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 MTTNICIPALITY and in an amount determined by the governing body of
MITNICIPALITY. The premium for any such bond shall be borne solely by
MiTNICIPALITY.
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, 2014. COITNTY agrees to mail a reminder notice to delinquent property
accounts in the month of February notifying that delinquent tax penalties will apply to
all assessed taxes which are not paid by January 31, 2014. The r'eminder notices will
be mailed between
February 5`h and February 2g�n.
11. COUNTY agrees that it will post to a secure website collection reports for
MLTNICIPALITY listing cunent taxes, delinquent taxes, penalties and interest on a daily
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basis through September 30, 2014. COIJNTY will provide monthly Maintenance and
Operation (hereinafter referred to as "MO"), and Interest and Sinking (hereinafter
refened to as "IS") collection reports; provide monthly recap reports; and provide
monthly attorney fee collection reports.
12. MITNICIPALITY retains its right to select its own delinquent tax
collection attorney and COiTNTY agrees to reasonably cooperate with the attorney
selected by MITNICIPALITY in the collection of delinquent taxes and related activities.
13. MUNICIPALITY will provide COiJNTY with a copy of their current tax
collection attorney contract on or before each February 15th. MUNICIPALITY will
provide COITNTY with notice of any change in collection attomey on or before the
effective date of the new collection attorney contract.
III.
COUNTY hereby designates the Denton County Tax Assessor/ Collector to act
on behalf of the County Tax Office and to serve as Liaison for COLTNTY with
MITNICIPALITY. The County Tax Assessor/Collector, and/or his/her designee, shall
ensure the perfo�nance of all duties and obligations of COUNTY; shall devote sufficient
time and attention to the execution of said duties on behalf of COLTNTY 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 COIJNTY and
MUNICIPALITY.
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IV.
COITNTY accepts responsibility for the acts, negligence, and/or omissions
related to property tax service of all COIJNTY employees and agents, sub-contractors
and /or contract laborers, and for those actions of other persons doing work under a
contract or agreement with COiTNTY to the extent allowed by law.
�
MITNICIPALITY accepts responsibility for the acts, negligence, and/or
omissions of all MUNICIPALITY employees and agents, sub-contractors andlor
contract laborers, and for those of all other persons doing work under a contract or
agreement with M[TNICIPALITY to the extent allowed by law.
C�
MiTNICIPALITY 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 COLTNTY. COITNTY
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 MIJNICIPALITY.
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VII.
For the services rendered during the 2013 tax year, MITNICIPA.LITY agrees to
pay COIJNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as
follows:
1. The current tax statements will be mailed by October 10`i' or as soon
thereafter as practical. In order to expedite mailing of tax statements the
MLTNICIPALITY must adopt their 2013 tax rate by September 25, 2013. Failure of the
MiTNICIPALITY to adopt a tax rate by September 25, 2013 will cause delay in timely
mailing of tax statements. Pursuant to Texas Property Tax Code §26.05 the
MITNICIPALITY 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 30`h or 60 days after the certified appraisal roll is received may
result in delay of processing and mailing MITNICIPALITY tax statements.
MITNICIPALITY agrees to assume the costs for additional delayed tax statements,
processing and mailing as determined by COiTNTY. Notwithstanding the provisions
of the Tax Code, if MITNICIPALITY fails to deliver the adopted tax rates (M&O and
I&S) to the T� Assessor Collector by September 25, 2013, it may 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 MITNICIPALITY has requested such a notice
on or before February 28th. The fee for this service will be a rate not to exceed $0.70 per
statement.
3. At least 30 days, but no more than 60 days, prior to April 1 st, and
following the initial mailing, COIJNTY shall mail a delinquent tax statement meeting the
Page 8 of 14
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 t�es.
4. At least 30 days, but no more than 60 days, prior to July lst, and following
the initial mailing, COITNTY 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 t�es.
5. For accounts which become delinquent on or after June ls`, 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 ever�t of a successful rollback election which takes place after tax bills
for MITNICIPALITY have been mailed, MIJNICIPALITY agrees. to pay COITNTY a
programming charge of $5,000.00. COLTNTY will mail corrected statements to the
owner of each parcel. COITNTY will charge a fee for this service at a rate not to exceed
$0.70 per statement Property Tax Code Section 26.07 (�. When a refund is required per
Property Tax Code Section 26.07 (g), COUNTY will charge a$.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 COIJNTY.
MUNICIPALITY will be billed for the refunds, postage and processing fees.
7. MUNICIPALITY understands and agrees that COIJNTY will, no later
than January 31St, deduct from current collections of the MIJNICIPALITY 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:
Page 9 of 14
$ 0.70 x the total number of parcels on MIJNICIPALITY Tax Roll for tax year
2013.
In the event that a rollback election as described in paragraph 6 takes place, COITNTY
shall bill MiTNICIPALITY 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 l,
COLTNTY shall bill MIINICIPALITY for such amounts. MITNICIPALITY shall pay
COITNTY all such billed amounts within 30 days of its receipt of said bill.
8. MITNICIPALITY further understands and agrees that COUNTY (at its
sole discretion) may increase or decrease the amounts charged to MITNICIPALITY 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 COIJNTY 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.
Cifii�
COiTNTY agrees to remit all taxes, penalties, and interest collected on
MITNICIPALITY's behalf and to deposit such funds into the MUNICIPALITY's
depositories as designated:
Page 10 of 14
1. 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 MIJNICIPALI�'Y uses the same depository as COITNTY, the deposits
of tax, penalty and interest shall be by deposit transfer.
3. In anticipation of renewal of this Agreement, COITNTY further agrees
that deposits will be made daily through September 30, 2014. It is expressly understood,
however, that this obligation of COITNTY 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 COiTNTY experiences shortage in collections as a result
of an outstanding tax debt of MIJNICIPALITY, the MUNICIPALITY agrees a
payment in the amount of shortage shall be made by check or ACH to COITNTY
within 15 days after notification of such shortage.
►�
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. COITNTY shall be obligated to provide services pursuant to this
Agreement, during such period.
Page 11 of 14
�
This Agreement represents the entire agreement between MiTNICIPALITY and
COITNTY and supersedes all prior negotiations, representations, andlor 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:
.rhe ci�iTo� of D E N TO N
Ada�ess: 215 E. MCKINNEY ST.
c�ty, State, z�p: D E NTO N, TX 76201
Telephone: 94'0-349-8260 Emall: CHUCK.SPRINGER@CITYOFDENTON.COM
Page 12 of 14
XII.
MITNICIPALITY hereby designates GEORGE C. CAMPBELL to act on behalf
of MIJNICIPALITY, and to serve as Liaison for MIJNICIPALITY to ensure the
performance of all duties and obligations of Mi1NICIPALITY as stated in this
Agreement. MITNICIPALITY's designee shall devote sufficient time and attention to
the execution of said duties on behalf of MIJNICIPALITY in full compliance with the
terms and conditions of this Agreement; shall provide immediate and direct supervision
of the MITNICIPALITY 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 MIJNICIPALITY and COITNTY.
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.
���
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, 16TH aay ofJ U LY 2013.
Page 13 of 14
COUNTY
MUNICIPALITY
Denton County TOW11�Clty: DENTORI
110 West Hickory Address: 2�5 E. MCKINNEY ST.
Denton, Texas 2 City, State, Zlp: DENTON, TX 76201
BY: BY: ..�`".—
Honorable Mary H Narile: G ORGE C. CAMPBELL
Denton County Jud e Title: cin' MANA�ER
ATTEST: ATTEST:
� � ' -
BY: BY: t �
Cynthia Mi 1 j\j�i ` NNIFE � LTERS
Denton Coun Clerk Title i SECRE �RY
APP�OVED FORM AND CONTENT: APPROVED AS TO FORM:
�` j °� , C.!%� �i�. �
���c..a�-
IVT1chc lc French
Denton County Denton County
Tax Assessor/Collector Assistant District Attorney
APPROVED AS TO FORM:
CITY ATTORNEY
CITY OF DENTON, TE�AS
BY:
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