2016-201s:\legal\our documents\ordinances\16\denton county property tax interlocal agreement (002).doc
ORDINANCE NO. 2016-201
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE, TO ENTER 1NT0 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
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approval.
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PASSED AND APPROVED this the day of _��� �� ��',�,„,,, �" �;, _w�y� 2016.
CHRIS Wl���"'l"�, l"�1,�'��;;�
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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ANITA BURGESS, CITY ATTORNEY
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THIS AGREEMENT is made and entered into this ��
day c�I ,� �Q16, by and between DENTON CO TY, a political
subdivision of the �t�te of Texas, hereinafter referred to as "COUNTY," and, the
City/Town of Denton , Denton County, Texas, also a political
subdivision of the State of Texas, hereinafter referred to as "MUNICIPALITY."
WHE AS, COUNTY and MUNICIPALITY mutually desire to be subject to
the provisions of V.T.C.A. Government Code, Chapter 791, the Interlocal Caoperation
Act, and V.T.C.A., Tax Code, 5ection 6.24 and 25.17 and;
WHE AS, MUNICIPALITY has the authority to contract with the COUNTY
for the COUNTY to act as tax assessor and callector for MUNICIPALITY and
COUNTY has the autharity ta so act;
NOW THE FO , COUNTY and MUNICIPALITY, for and in
consideration of the mutual promises, covenants, and agreements herein contained, do
agree as follows:
1 of 14 2016 INTERLOCAL AGREEMENT
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of this Agreement shall be for a period of one year, from October 1, 2016, to and through
September 30, 2017. This Agreement shall be automatically renewed for an additional one
(1) year term at the discretion of the C UNTY and UNICIPALITY, unless written notice
af termination is provided by the terminating party to the other party prior to ane hundred-
fifty (150) days of the expiration date of the current term af the Agreement.
MUNICIPALITY agrees ta deliver this agreement no later than September 5, 2016 or the
firsi Monday of September 2016 in manner required by C UNTY to fully execute said
callection services by COUNTY.
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serve as tax assessor-collector for par c e 1 s in D e nt o n C o u n ty of t h e
UNICIPALITY for ad valorem tax collectian for tax year 2016, and each tax year for
the duration af this Agreement. COUNTY agrees to perform all necessary ad valorein
assessing and collecting duties for UNICIPALITY and UNICIPALITY does
hereby expressly authorize C UNTY to do and perform all acts necessary and proper to
assess and collect taxes for UNICIPALITY. C UNTY agrees to collect base taxes,
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2 of 14 2016 IN7ERLOCAL AGREEMENT
statements required by statute, supplemental changes for applicable property accounts,
as well as prepare and mail any other mailing as deemed necessary and apprapriate by
COUNTY; pravide daily and manthly collection reports to UNICIPALITY;
prepare tax certificates; develop and maintain both current and delinquent tax rolls,
disburse tax monies to UNICIPALITY daily (business day) based on prior day tax
postings. COUNTY agrees to approve and refund overpayment ar erraneous payment of
taxes far UNICIPALITY pursuant to Texas Property Tax code Sections 31.11 and
31.12 from available current tax collections of MUNICIPALITY; meet the
requirements af Sectian 26.04 of the Texas T� Code; and to develop and rnaintain such
ather 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 t� rates for MUNICIPALITY and that such calculations will be provided at
no additional cost to UNICIPALITY. The information concerning the effective and
rollback tax rates will be published in the form prescribed by the Comptroller af Public
Accounts of the State of Texas, and as required by Section 26.04 of V.T.C.A. Tax Code.
UNICIPALITY shall notify tax assessor-collector na later than July 25th of each year
that UNICIPALITY 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 UNICIPALITY.
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.
3 of 14 2016 INTERLOCAL AGREEMENT
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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 af Local Governrnent
Code, if UNICIPALITY requests such 7 days in advance of the intended
publication date, C UNTY agrees to manage all notices and publications on behalf of
UNICIPALITY if request is received no later than July 25th. UNICIPALITY 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 UNICIPALITY.
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4 of 14 2016 INTERLOCAL AGREEMENT
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 recards needed by
COUNTY to perform its duties under the terms and conditions of this Agreement.
8. COUNTY agrees ta allow an audit of the tax records of
MUNICIPALITY in COUNTY'S possessian during normal worlcing hours with at least
48 hours advance, written notice to COUNTY. The expense of any and all such audits
shall be paid by UNICIPALITY. A copy af any and all such audits shall be furnished
9. If required by MUNICIPALITY, COUNTY agrees to obtain a surety
bond far the County Tax Assessor/Callector. Such bond will be conditioned upan the
faithful performance of the Tax Assessor/Collector's lawful duties, will be rnade payable
to UNICIPALITY and in an amaunt determined by the gaverning body of
UNICIPALITY. The premiurn for any such bond sha11 be borne solely by
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10. COUNTY agrees that it will post a notice on its website, as a
rerninder that delinquent tax penalties will apply to all assessed taxes wluch are nat
paid by January 31, 2017. COUNTY agrees to mail a reminder natice 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, 2017. The reminder
notices will be mailed between February 5, 2017 and February 28, 2017.
11. COUNTY agrees that it will post to a secure website callection reports far
UNICIPALITY listing current taxes, delinquent taxes, penalties and interest on a daily
5 of 14 2016 INTERLOCAL AGREEMENT
basis through September 30, 2017. COUNTY will provide manthly Maintenance and
Operation (hereinafter referred to as "MO"), and Interest and Sinking (hereinafter
referred to as 46IS99) collection reports; provide monthly recap reports; and pravide
monthly attorney fee collection reports.
12. UNICIPALITY retains its right to select its own delinquent tax
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contract.
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on behalf of the County Tax Office and to serve as Liaison for � COUNTY with
UNICIPALITY. The County Tax Assessar/Collector, and/or his/her designee, shall
ensure the performance of all duties and obligations of C UNTY; shall devote sufficient
time and attention to the execution of said duties on behalf of C UNTY 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 C UNTY and
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6 of 14 2016 IN7ERLOCAL AGREEMENT
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COUNTY accepts responsibility for the acts, negligence, and/or oinissions
related to property tax service of all COUNTY employees and agents, sub-contractors
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UNICIPALITY accepts responsibility for the acts, negligence, and/or
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UNICIPALITY understands and agrees that UNICIPALITY, its
employees, servants, agents, and representatives shall at no time represent themselves to
be employees, servants, agents, and/or representatives af C UNTY. C UNTY
understands and agrees that C UNTY, its employees, servants, agents, and
representatives shall at no time represent themselves to be employees, servants, agents,
and/or representatives of MUNICIPALITY.
7 of 14 2016 INTERLOCAL AGREEMENT
VII.
For the services rendered during the 2016 tax year, UNICIPALITY agrees to
pay COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as
fallaws:
1. The current tax statements will be mailed by October l Ot,' or as soon
thereafter as practical. In order to expedite rnailing of tax staternents the
MUNICIPALITY must adopt their 2016 tax rate by September 29, 2016. Failure of the
UNICIPALITY to adopt a tax rate by September 29, 2016 may cause delay in timely
mailing af tax statements. Pursuant ta Texas Pro,perty Tax Code §26.05 the
MUNICIPALITY must adopt a tax rate by the later af 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
af pracessing and mailing UNICIPALITY tax statements. UNICIPALITY agrees to
assume the � costs for additional delayed tax statements, processing and mailing as
deterrnined by COUNTY. Notwithstanding the provisions of the Tax Code, if
UNICIPALITY fails to deliver the adopted tax rates (M&O and I&S) to the Tax
Assessor Collector by September 29, 2016, it may will cause a delay in the publication and
release of tax statements.
2. COUNTY will mail an additianal notice during the mo�th of March
following the initial mailing provided that UNICIPALITY has requested such a notice
on or before February 28, 2017. The fee for this service will be a rate not to exceed
$0.72 per statement.
3. At least 30 days, but no more than 60 days, prior to April lst, and
following the initial mailing, COUNTY shall mail a delinquent t� statement meeting the
8 of 14 2016 IN7ERLOCAL AGREEMENT
requirements of Section 33.11 of the Texas Praperty Tax Code to the awner of each
parcel ta the owner of each parcel having delinquent taxes.
4. At least 30 days, but no mare than 60 days, prior to July lst, and follawing the
initial mailing, COUNTY will rnail a delinquent t� statement meeting the requirements
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parcel having delinquent taxes.
5. For accounts which become delinquent on or after June 1 St, C UNTY
shall mail a delinquent tax statement meeting the requirements af Section 33.08 of the
Texas Property Tax Code to the owner of each parcel having delinquent taxes,
6. In event of a successful rallback electian which takes place after tax bills for
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programming charge of $5,000.00. COUNTY will mail corrected statements to the owner af
each parcel. COUNTY will charge a fee for this service at a rate not to exceed
$0.72 per statement pursuant to Property Tax Cade Section 26.07 (�. When a refund is
required per Property Tax Code Section 26.07 (g), COUNTY will charge a$.25 processing
fee per check, in addition to the corrected statement mailing casts. Issuance of refunds, in the
event of a successful rollback election, will be the responsibility of the COUNTY.
UNICIPALITY will be billed for the refunds, postage and processing fees.
7. UNICIPALITY understands and agrees that COUNTY will, no later than
January 31 S`, deduct from current collections o f t h e UNICIPALITY the 66Tota1 Cast" of
praviding ail services described in paragraphs 1-5 above. This 66Total Cost" includes any
such services that have not yet been performed at the time of deduction. The 66Tota1 Cost"
of providing all services described in paragraphs 1-5 above shall be the total of:
9 of 14 2016 BNTERLOCAL AGREEMENT
$ 0.72 x the total number of parcels listed on MUNICIPALITY's September 30, 2016
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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 pastage costs. UNICIPALITY shall pay COUNTY all
billed amounts within 30 days af 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 UNICI�ALITY for such a�nounts. 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 iis
sole discretion) may increase or decrease the amounts charged to UNICIPALITY for
any renewal year of this Agreement, provided that COUNTY gives written notice to
UNICIPALITY sixty (60) days prior to the expiratian date of the initial term of the
Agreement. The County Budget Office establishes collectian rates annually based an 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 ihe UNICIPALITY's
depositories as designated:
10 of 14 2016 INTERLOCAL AGREEMENi
1. For deposits of tax, penalties, and interest, payment shall be by wire
transfer or ACH to UNICIPALITY depasitory 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
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2. If MUNICIPALITY uses the same depository as COUNTY, the deposits
af tax, penalty and interest shall be by deposit transfer.
3. In anticipation of renewal of this Agreement, COUNTY further agrees
that deposits will be inade daily thraugh September 30, 2017. 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
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within 15 days after natification of such shortage.
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In the event af 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
natice is given. COT,JNTY shall be obligated to provide services pursuant to this
Agreement, during such periad.
11 of 14 2016 BNTERLOCAL AGFtEEMENT
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COUNTY and supersedes all prior negotiations, representations, and/or agreements,
either written or oral. This Agreement may be amended only by written instr ent
signed by the governing bodies of both UNICIPALITY and C UNTY or those
authorized to sign on behalf of those governing badies.
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12 of 14 2016 INTERLOCAL AGREEMENT
XII.
UNICIPALITY hereby c��:�i�;����t��; rl rto act on behalf
of UNICIPALITY, and to serve as Liaison for UNICIPALITY to ensure the
performance of all duties and obligations of UNICIPALITY as stated in this
Agreement. UNICIPALITY's designee shall devote sufficient time and attention to
the execution of said duties an behalf of UNICIPALITY in full compliance with the
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force and effect to the extent possible.
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13 of 14 2016 INTERLOCAL AGREEMEN7
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Denton County
110 West Hickory
DeriiOri, Tt�, '' � 7 )�ol
MUNICIPALITY
TowTl/City: Denton
Address: 215 E. McKinney
City, State, Zlp: Denton TX 78201
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B�: BY:� _
Hanorable l���r r����� ���e: Howard Martin
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Denton County �; u��� , �"°�"� � ��� � �"I��,��:
�� � ��� City Manager
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BY�.
Juli Luke
Denton �����ntr���lca•I�:
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Denton County
Tax Assessar/Collector
Dentan County Assistant
District Attorney
APPROVED AS TO FORM:
CI7Y ATTORNEY
CITY dF DENTON, TEXAS �
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14 of 14 2016 INTERLOCAL AGREEMENT