2008-180sAour documents\ordinances\08\denton county property tax interlocal agreement.doc
00, ORDINANCE NO. 200, 5- AO D
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR 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 AND TO REPEAL SUBSECTION
10-2(B) OF THE CITY CODE AND ALL ORDINANCES TO THE EXTENT OF CONFLICT
THEREWITH (THE SPLIT-PAYMENT OPTION FOR PAYMENT OF TAXES); 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 Cooperation Agreement for the County through its duly elected tax
assessor-collector to act as tax assessor and collector for the City property tax collection
(Interlocal Agreement); and
WHEREAS, the County is well equipped to perform this service; and
WHEREAS, Section 10-2(b) of the Code of Ordinances of the City (City Code) currently
allows the payment of one-half of the principal amount of all property taxes for the current year
to be paid before December 1 of the year for which such taxes are due and the balance to be paid
at any time before July 1 of the following year without penalty (the split-payment option for
payment of property taxes); and
WHEREAS, the County does not allow the split-payment option for payment of property
taxes; and
WHEREAS, the City Council finds that the Interlocal Agreement is in the public interest
and that the split-payment option for the payment of property taxes should be repealed to the
extent of any conflict with the Interlocal Agreement; 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 Mayor, or his designee, is hereby authorized to execute the Interlocal
Agreement of 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. Subsection b of Section 10-2 "Payment of taxes, penalty and interest" of
the City Code and all other ordinances allowing the split-payment option for the payment of
property taxes, are hereby repealed to the extent of any conflict with the Interlocal Agreement or
the County's policies for collection of property taxes under that Agreement.
• /I-
sAour documents\ordinances\08\denton county property tax interlocal agreement.doc
SECTION 4. Save and except as amended hereby, all the provisions, sections,
paragraphs, sentences, clauses, and phrases of Section 10-2 of the City Code shall remain in full
force and effect.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
approval. / L
PASSED AND APPROVED this the day of 64&~ '2008.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B . I ~)O' ~ t'
APP 'eD A O LEGAL FORM:
JOHN M. KNIGHT, INTERIM CITY ATTORNEY
BY: "
Page 2
MTERLOCAL COOPERATION AGREEMENT - TAX COLLECTION
THIS AGREEMENT is made and entered into this IVAh
day of 2008, by and between DENTON COUNTY, a political
subdivision of the State 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."
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:
1.
The effective date of this Agreement shall be the 1St day of October, 2008. The
term of this Agreement shall be for a period of one year, from October 1, 2008, to and
through September 30, 2009. 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 initial term of the
Agreement.
Page 1 of 11
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 MUNICIPALITY for ad valorem tax collection for
tax year 2008, 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 tax statements; provide monthly
collection reports to MUNICIPALITY; prepare tax certificates; develop and maintain
both current and delinquent tax rolls; 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 at least 7 days before
MUNICIPALITY wishes publication of forms specified in this section. It is understood
Page 2 of 11
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.
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. Should MUNICIPALITY vote to increase its
tax rate above the rollback tax rate, or more than three percent (3%) above the effective
tax rate, whichever is lower, (or other limits required by current legislation) the required
publication of quarter-page notices shall be the responsibility of MUNICIPALITY.
5. 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.
6. 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.
7. 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.
Page 3 of 11
8. 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.
9. COUNTY agrees that it will place quarter-page advertisements in
newspapers serving Denton County in January, 2009, as a reminder that delinquent tax
penalties will apply to all assessed taxes which are not paid by January 31, 2009. The
advertisements will be printed two times in each paper between January 5th and January
25th
10. 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
basis between October 1, 2008 and March 31, 2009 and on a weekly basis between April
1, 2009 and September 30, 2009; 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.
11. 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.
12. MUNICIPALITY authorizes the COUNTY to perform all necessary acts
regarding supplemental tax payments in tax years 2008 and prior. COUNTY agrees to
provide monthly supplemental payment reports to the MUNICIPALITY.
Page 4 of 11
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 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.
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.
V.
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.
Page 5 of 11
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.
VII.
For the services rendered during the 2008 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 on or about October 20th or as
soon thereafter as practical. The fee for this service will be a rate not to exceed Seventy-
three Cents ($.73) per statement, but a minimum fee per year for the October mailing will
be $500.00. If MUNICIPALITY does not adopt a tax rate before September 29, 2008,
the tax rate for MUNICIPALITY will be set at the lower of the effective tax rate
calculated for that year or the tax rate adopted by MUNICIPALITY for the preceding
tax year. Before the fifth day after establishment of a tax rate under this provision,
MUNICIPALITY must ratify the applicable tax rate in the manner required by Article
26.05(b) of the Texas Tax Code.
2. MUNICIPALITY understands and agrees that COUNTY will assess a
surcharge for each parcel (account) that is physically outside the geographical limits of
the COUNTY. The surcharge will be a fee not to exceed twenty-five cents ($.25) per
parcel and will be billed to MUNICIPALITY in the month of December.
Page 6 of 11
3. COUNTY will mail an additional notice to the owner of each parcel
during the month of March following the initial mailing provided that MUNICIPALITY
has requested such a notice on or before February 28th. The fee for this service will be a
rate not to exceed Seventy-three Cents ($.73) per statement.
4. At least 30 days, but no more than 60 days, prior to April 1st, and
following the initial mailing, COUNTY shall mail a delinquent tax statement meeting the
requirements of Section 33.11 of the Texas Property Tax Code to the owner of each
parcel. The fee for this service will be a rate not to exceed Seventy-three Cents ($.73) per
statement.
5. At least 30 days, but no more than 60 days, prior to July 1 st, 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. The fee
for this service will be a rate not to exceed Seventy-three Cents ($.73) per statement.
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 $5,000.00. COUNTY will mail corrected statements to the
owner of each parcel. The fee for this service will be a rate not to exceed Seventy-three
Cents ($.73) per statement. When a refund is required per Property Tax Code Section
26.07 (g), a $.25 processing fee per check will be charged, 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.
Page 7 of 11
7. MUNICIPALITY understands and agrees that COUNTY will bill
MUNICIPALITY following each mailing for which charges are permitted. Payment is
due upon receipt of the statement.
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.
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:
1. For deposits of tax, penalties, and interest, payment shall be by wire
transfer or by check sent by mail to MUNICIPALITY's accounts only, and segregated
into the appropriate MO and IS accounts.
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 from October 1, 2008 through March 31, 2009, deposits will be made daily and from
April 1, 2009, through September 30, 2009, deposits will be made weekly. For end of
month reporting, there will be a deposit made at the end of each month. 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.
Page 8of11
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.
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
215 E. McKinney
Denton, Texas 76201
Telephone: 9940-349-8224
Contact: Bryan Langley
Page 9 of 11
MI.
MUNICIPALITY hereby designates ,B,QWAI /"&Z V to act on behalf
I
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.
Page 10 of 11
Denton County
I10 West Hickory
Denton, Texas 761
BY:Z (-,e52"
Honorable Mar
Denton County
Denton County
0ieve mossman
Denton County
Tax Assessor/Collector .
Kim Gilles
Denton County
Assistant District Attorney
APPROVED AS TO LEGAL FORM
JOHN M. KNIGHT,
INTERIM CITY ATTORNEY
The City/Town of Denton
215 E. McKinney
Denton, Texas-U201