2007-058
S:\Our Documcnts\Ordinances\07\Denton County Property Tax Interlocal Agreement.DOC
ORDINANCE NO. ,;{ ()f)'i- f),J;-il
AN ORDINANCE 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 ALL ORDINANCES
TO THE EXTENT OF CONFLICT THEREWITH (THE SPLIT-PAYMENT OPTION
FOR PAYMENT OF TAXES); AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, 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 property tax collection; 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 Mayor, or his designee, is hereby authorized to execute the
lnterlocal Agreement of behalf of the City. 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
day of ll{ar7;/1
IJ
,2007.
ATTEST:
JENNIFER WALTERS,
BY:
APPROVED AS TO LEGAL FORM:
EDWINM. SNYDER, CITY ATTORNEY
BY: ~~~
7 '
INTERLOCAL COOPERATION AGREEMENT -TAX COLLECTION
THIS AGREEMENT is made and entered into this l~ r" day of
2007, by and between DENTON COUNTY, a political subdivision of
the State of exas, 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
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:
The effective date of this Agreement shall be the ls~ day of October, 2007. The term of
this Agreement shall be for a period of one year, from October 1, 2007, to and through
September 30, 2008. 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 10
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:
COUNTY, by and through its duly elected tax assessor-collector, shall serve as
tax assessor-collector for MUNICIPALITY for ad valorem tax collection for tax year 2007, 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 "l exas 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. DISTRICT shall notify tax assessor-
collector at least 7 days before DISTRICT wishes publication of forms specified in this section.
Page 2 of ] 0
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.
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 DISTRICT requests such 7 days in advance. 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 "fax 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. "I'he 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.
Page3of10
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.
"fhe 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, 2008, as a reminder that delinquent tax penalties will apply to
all assessed taxes which are not paid by January 31, 2008. The advertisements will be printed
two times in each paper between January 5'h and January 25'h.
Z
0. COUNTY agrees that it will fax, mail or post to a secure website collection
reports to MUNICIPALITY listing current taxes, delinquent taxes, penalties and interest on a
daily basis between October 1, 2007 and March 31, 2008 and on a weekly basis between April 1,
2008 and September 30, 2008; 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.
1l. 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.
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 'fax 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
Page 4 of ] 0
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 COUN"CY 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.
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.
Page 5 of 10
vn.
For the services rendered during [he 2007 tax year, MUNICIPALITY agrees to pay
COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as follows:
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 exceed Seventy-Three Cents
($.73) per statement. If MUNICIPALITY does not adopt a tax rate before September 29, 2007,
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. An additional notice will be sent during the month of March following the initial
mailing provided that MUNICIPALITY has requested such a notice on or before February 28th.
The Cee for this service will be charged at the existing first class letter rate set by the United
States Postal Service (currently $:39) plus a $.OS processing fee per statement.
3. At least 30 days, but no more than 60 days, prior to April 1st, and following the
initial mailing, a delinquent tax statement meeting the requirements of Section 33.11 oP the
Texas Property -Tax Code will be mailed. The fee for this service will be a rate not exceed
Seventy-"three Cents ($.73) per statement
4. At least 30 days, but no more than 60 days, prior to July 1st, and following the
initial mailing, 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 exceed
Seventy-Three Cents ($.73) per statement.
Page 6 of 10
5. In event of a successful rollback election which takes place afrer tax bills for
MUNICIPALITY have been mai]ed, MUNICIPALITY agrees to pay COUNTY a
programming charge of $],000.00. An additional postage charge, at the first class letter rate
(currently $39) plus a $.OS processing fee per corrected statement, to comply with Property Tax
Code Section 26.07 (f), will be charged. When a refund is required per Property Tax Code
Section 26.07 (g), a $.OS 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. DISTRICT will be billed for the refunds, postage and
processing fees.
6. 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.
7. 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 [o remit all taxes, penalties, and .interest collected on
MUNICIPALITY'S behalf and to deposit such funds into the MUNICIPALITY'S depositories
as dcsignat_ed:
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.
Page 7 of 10
2. If MUNICIPALITY uses the same depository as COUNTY, the deposits of tax,
'penalty and interest shall be by deposit transfer.
3. [n anticipation of renewal of this Agreement, COUNTY further agrees that from
October 1, 2007 through March 31, 2008, deposits will be made daily and from April 1, 2008,
through September 30, 2008, 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.
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.
Page 8 of 10
XI.
Any and all written notices required to be given under this Agreement shall be delivered
or mai]ed to the listed addresses:
COUNTY:
County Judge of Denton County
110 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
MUNICIPALITY:
"fhe City/Town of Denton
215 E. McKinney
Denton, "texas 76201
"fe lephone: 940-349-8700
Contact: Gary Calmes
XII.
MUNICIPALITY hereby designates ~ 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.
Page 9 of 10
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 [he extent possible.
XIV.
"1'he 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.
L-'xccuted in duplicate originals this,~day of ~ 2007,
COUNTY MUNICIPALITY
Denton County The City/Town of Denton
1 ] 0 West Hickory 215 E. McKinney
Denton, "fex 76 Ol Denton, "Texas 76201
BY: ~~ unturaa.P BY: ~ ~-
- onorable Mary ~j~~~` ~ ~_ ,~~~sss~ Title: ~ e,~
Denton County ge '~ ~~ • <,e~~ ~ ~-
:~
ATTEST: ~'s ; ~AT EST:
BY: ' ' .~•C~B'
Cy thia Mitchell !'rr ~'~ ;`.' ~" ~ l•"~ ~,~~~•~Nam
Denton County Clerk ' r'~~~u,~u1~lp~~``` 'Title ~ ~ ~ nll"~'1fAtr1--
APPROVED FO i 1 AND CONTENT:
Steve Mossman
Denton County
7'ax Assessor/Collector
APPROVED S" RM:
Kim illes
Denton County
Assistant District Attorney
APPROVED AS TO FORM:
CITY ATTORNEY
Page 10 of 10 CITY OF DENTON, TEXAS
BY~ ~~