2017-200ORDINANCE 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:.
TI„nN l. The findings and recitations contained in the preamble of this Ordinance
.S.E.C..... _
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 � day of � �� , 2017�
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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BY: � �� �
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,r���� VED r�� �"C,� LEGAL FORMu
Aaron Leal, INTERIM CITY ATTORNEY
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THE STATE OF TEXAS §
COUNTY OF DENTON §
INT�RLOCAL COOPERATION AGR�EMENT FOR TAX COLLECTION
BETWEEN DENTON COUNTY, T�XAS, AND
CITY/ TOWN OF Denton, Texas
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2017, 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, liereinafter referred to as "MUNICIPALITY."
WHEREAS, COUNTY and MUNICIPALITY mutually desire to be subject to
the provisions of V.T.C.A. Governinent 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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of this Agreement shall be for a period of one year, from October l, 2017, to and through
September 30, 2018. This Agreernent shall be automatically renewed for an additional one
(1) year term at the discretion of the COUNTY and MUNICIPALTTY, unless written notice
of termination is provided by the terminating party to the ather party prior to one hundred-
fifty (150) days of the expiration date of the current term of the Agreement.
UNICIPALITY agrees to deliver this agreernetlt na later than September 5, 2017 or the
first Monday of Septeinber 2017 in manner required by COUNTY to fully execute said
collection services by COUNTY.
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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 valarem
assessing and collecting duties for UNICIPALITY and UNICIPALITY does
hereby expressly authorize COUNTY to do and perfor►n all acts necessary and proper to
assess and collect taxes foi• UNICIPALITY. C UNTY agrees to collect base taxes,
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2 of 14 2017-2018 INTERLOCAL AGREEMENT
statements required by statute, supplemental cllanges foi• applicable propet•ty accaunts,
as well as prepare and mail any other mailing as deemed necessary and apprapriate by
COUNTY; provide daily and monthly callection reports to MUNICIPALITY;
prepare tax certificates; develop and maintairi 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 avei•payment ar erroneous payment of
taxes for MUNICIPALITY pursuant to Texas Property Tax code Sections 31.11 and
31.12 frain available current tax collectians of MUNICIPALITY; meet the
requirements of Section 26.04 af the Texas Tax Cade; and ta develop and maintain such
other i-ecords and forms as are necessary or required by State law, rules, or regulatians.
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 cast to MUNICIPALITY. The information concerning the effective and
rollback tax rates will be published in the farrn prescribed by the Coinptroller 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 af each year
that UNICIPALITY wishes publication of forms or natices specifed in this section.
MUNTCIPALITY further agrees that if COUNTY calculates effective and rollback tax
rates, COUNTY shall publish t11e requ►red notices on behalf of UNICIPALITY.
It is understoad and agreed by the parties that the expense of publication shall be bai°ne
by MUNICIPALITY and that COUNTY shall provide MUNICIPALITY's billing
address to the newspaper publishing the effective and rollbacl< tax rates.
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4. COUNTY agi•ees, upon i-equest, to offer guidance and the necessary forms
for pasting natices of required hearing and quarter-page notices as required by 5ections
26.05 and 26.06 af V.T.C.A. Tax Cade and Section 140.010 of Local Government
Code, if MUNICIPALITY requests such 7 days in advance of the intended
publicatian date, COUNTY agrees to �nanage all notices and publications on behalf of
MUNICIPALITY if request is received na later than July 25th. MUNICIPALITY must
approve all calculations and not►ces, in the format requil°ed by COUNTY, before
publication may proceed. The accuracy and timeliness af all required notices are the
responsibility of MUNICIPALITY.
5. Should MUNICIPALITY vate to increase its tax rate above the roliback
tax rate the required . publication of notices shall be the responsibility of
MUNICIPALITY.
6. COUNTY agrees ta develap and maintain written policies and procedures
af its operation. COUNTY further agrees to make available full information about the
operation af the County Tax Office to MUNICIPALITY, and to promptly furnish
written reparts to keep UNICIPALITY informed of all financial information affecting
rt.
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7. MUNICTPALITY agrees to pramptly deliver to COUNTY all recoi-ds
that it has accumulated and developed in the assessinent and callectian of taxes, and to
caaperate in furnishing or locating any otlier informatian and records needed by
COUNTY to perform its duties under the terms and conditians of this Agreement.
8. COUNTY agrees to allow an audit of the tax records of
MUNICIPALITY in C UNTY'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 of any and all such audits shall be furnished
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9. If required by MUNICIPALITY, COUNTY agrees to obtain a surety
band for the County Tax Assessor/Collectar. Such bond will be conditioned upon the
faithful performance of the Tax Assessor/Callector's fawful duties, will be made payable
to UNICIPALITY and in an ainount determined by the gaverning body af
UNICIPALITY. The premium for any such bond shall be borne solely by
UNICIPALITY.
10. ����T�'' agrees that it will post a notice on its website, as a
reininder 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 fai°
MUNICIPALITY listing current taxes, delinquent taxes, penalties and interest on a daily
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basis through September 30, 2018. COUNTY will provide anont111y Maintenance and
Operatian (hereinafter referred to as "MO"), and Interest and Sinking (hereinafter
i-eferi•ed ta as ((IS59} callection reparts; provide monthly i•ecap repoi•ts; and provide
monthly attorney fee callection repoi-�s.
12. MUNICIPALITY retains its rigllt to select its own delinquent tax
collection attorney and COUNTY agrees to i-easanably cooperate with the attorney
selected by MUNICIPALITY in the collectian of delinquent taxes and related activities.
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in collection attorney on or before the effective date af the new collection attorney
cantract.
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on behalf of the County Tax Office and to serve as Liaison for COUNTY with
MUNICIPALITY. The Caunty Tax Assessor/Callector, and/or his/her designee, shall
ensure the performance of all duties and abligatians of COUNTY; shall devote sufficient
tiine and attention ta the execuiion of said duties on behalf of COiJN'I'Y in full
campliance with the terms and conditions af this Agreement; and shall provide
immediate and direct supervision of the County Tax Office employees, agents,
cantractors, subcontractors, and/or laborers, if any, in the furtherance of the purposes,
terms and conditions of this Agreeinent for the inutual benefit of C UNTY and
MUNICIPALITY.
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IV.
COUNTY accepts respansibility for the acts, negligence, and/or amissians
related to property tax service af all COUNTY ernployees and agents, sub-contractors
and /or contract laborers, and for those actians of ather persons doing work under a
conti•act or agreement with COUNTY to the extent allowed by law.
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contract laborers, and for thase of all other persons doing work under a contract or
agreement with UNICIPALITY ta the extent allowed by law.
VT.
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employees, servants, agents, and representatives shall at no time represent theinselves to
be einployees, servants, agents, and/or representatives of COUNTY. C UNTY
understands and agrees that COUNTY, its ernployees, servants, agents, and
representatives shall at no time represent thernselves to ue employees, servants, agents,
and/or representatives of MUNICIPALITY.
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For the services rendered during the 2017 tax year, UNICIPALITY agrees to
pay COUNTY for the receipting, bookkeeping, issuing, and mailing af tax statements as
r• .•.
1. The current tax statements will be mailed by October l Ot" or as soon
thereafter as practical. In ordei• to expedite mailing af tax statements the
MUNICIPALITY must adopt their 2017 tax rate by September 29, 2017. Failure af the
MUNICIPALITY to adopt a tax rate by September 29, 2017 may cause delay in timely
mailing of tax statements. Pui•suant to Texas Property Tax Code §26.05 the
UNICIPALITY rnust adopt a tax rate by the later of Septembei• 30t" ar 60 days after the
certified appraisal roll is received. Failure to adapt and deliver a tax rate by the later of
September 3dth or 60 days after the certifed appraisal roll is received may result in delay
of processing and mailing UNICIPALITY tax statements. UNICIPALITY agrees to
assume the costs for additional delayed tax statements, processing and mailing as
determined by C UNTY. Notwithstanding the provisians af 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 publicatfon and
release of tax statements.
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following the initial mailing provided that MUNICIPALITY has requested such a notice
on ar before Pehruary 28, 2018. The fee for this sei•vice will be a rate not to exceed
��1��� per statement.
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following the initial inailing, COUNTY shall mail a delinquent tax statement meeting the
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i°equirements of Section 33.11 af tlle Texas Pi•opei-ty Tax Code ta tlle awner af each
parcel to the awner of each parcel having delinquent taxes.
4. At least 30 days, but no inore than 60 days, prior to July lst, and follawing the
initial mailing, COUNTY will mail a delinquent tax statement meeting the requirements
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5. For accounts which become delinquent on or after June lst, COUNTY
shall mail a delinquent tax statement meeting the requirements af Sectlon 33.08 of the
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6. In event of a successful rollback election which takes place after tax bills far
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programming charge of $5,000.00. COUNTY will mail corrected statements to the owner af
each parcel. COUNTY will charge a fee for this service at a rate not to exceed
'�ib.�� per statement pursuant to Property Tax Code Section 26.07 (fl. When a refund is
required per Property Tax Code Section 26.07 (g}, COUNTY will charge a$.25 processing
fee pei° check, in addition to the cori-ected statement mailing costs. Issuance of refunds, in the
event of a successful rollback election, will be the responsibility of the COUNTY.
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7. MUNICIPALITY understands and agrees that COUNTY will, no later than
January 31St, deduct froin current callectians o f t h e UNTCIPALITY the 66Tota1 Cost99 of
providing all services described in paragraphs 1-5 above. This "Total Cost" includes any
such services that have not yet been perfor�ned at the time of deduction. The 66Tota1 Cost"
of providing all services described in paragraphs 1-5 above shall be the total af:
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���;�� x the total number of parcels listed an MUNICIPALITY's September 30, 2017
In the event that a rollback electian as described in paragraph 6 takes place, COUNTY
shall bill MUNTCIPALITY far the applicable programming charge, check processing
fees, refunds paid, and refund pastage costs. MUNICIPALITY shall pay COUNTY all
billed amounts within 30 days of its i-eceipt af said bill. In tlle event costs for additional
delayed tax statements, processing and mailing are incurred as described in paragraph l,
COUNTY shall bill UNICIPALITY for such amounts. UNICIPALITY shall pay
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$. MUNICIPALITY further understands and agrees that COUNTY (at its
sole discretian) may increase or decrease the amounts charged ta UNICIPALITY for
any renewal year af this Agreernent, provided that COUNTY gives written notice ta
UNICIPALITY 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 af actual annual costs incurred by the COUNTY in performing tax callection
services. The collection rate for each year is approvcd by Caunty Commissioners' Court.
All entities are assessed the same per parcel collection rate.
VIII.
COUNTY agrees to remit all taxes, penalties, and interest collected on
UNICIPALITY's behalf and to deposit such funds into the UNICIPALITY's
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1. Far 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 af tax, penalty and intei-est be sent by mail to
MUNICIPALITY.
2. If UNICIPALITY uses the same depository as C UNTY, the deposits
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3. In anticipation of renewal of this Agreement, COUNTY further agrees
that deposits will be �nade daily through September 30, 2018 It is expressly understood,
however, that this obligation of COUNTY shall not survive termination of this
Agreement, whether by terinination by either party or by failure of the parties to renew
this Agreetnent.
4. In event that COUNTY experiences shortage in collections as a result
of an autstanding tax debt of MUNICIPALITY, the MUNICIPALITY agrees a
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within 15 days after notification of such shortage.
IX.
In the event of termination, the withdrawing pai°ty shall be abligated to rnake such
payments as are required by this Agreement through the balance af the tax year in which
notice is given. COUNTY shall be obligated to provide services pursuant to this
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F�
This Agreement represents the entire agreement between UNICIPALITY and
COUNTY and supersedes all prior negotiations, representations, and/or agreements,
eithei° written or oral. This Agreement may be amended only by written instrument
signed by the governing � bodies of both MUNICIPALITY and COUNTY or those
autharized to sign on behalf of those governing badies.
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12 of 14 2017-2018 INTERLOCAL AGREEMENT
XII.
Chuck Springerto act on behalf
MUNICIPALITY hereby desi�;�t�t�c.�� .,,,,,,,,,, ,,mm� �.. ..�
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 tliis Agreement; shall provide immediate and direct supervision
�f the MUNICIP�LITY cmployccs, agents, contractors, 3ubcontraetors, and/or laborers,
if any, in the furtherance of the purposes, terms and conditions of this Agreement for the
inutual 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 thi��;�„�m�day of �,� ����� �� w�C�17.
13 of 14 2017-2018 INTERLOCAL AGREEMENT
COUNTY
Denton County
110 West Hickory
MUNICIPALITY
Town/Clty, Denton
Address: 215 E McKinney St.
Denton, T�� �C�1 City, State, Zip: Denton, TX 76201
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BY: �,�� ��._ � "�� ���°�.�'__ m�..::W��.w.. ��;�/%����� � I
Danton Count �,a�,l �� �� I��p`���:����� �iieman � � ' � � �
Honorable M������ ��u�
y �,�" " " ,�� It�O: City Manager
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ATTEST;
BY: �
Juli Luke
Denton County �� � ��1�
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,� 1''�� �'� 1:��::� FORM AND CONT�f�iT: ���..
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C� �r�:tr�n County
Tax Assessor/Collector
APPROVED AS TO FORM:
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Name
Denton +�"�ti�iunty Assistant
District Attorney
APPROVED AS TO FORN1:
CITY ATTORNEY
CITY �,���,���"��� TEXAS ��r�s�
BY: ����� �� �, �„µ:� � � ��.,
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14 of 14 2017-2018 INTERLOCAL AGREEMENT