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HomeMy WebLinkAboutResolution No. 03-14 CITY OF THE COLONY, TEXAS RESOLUTION NO. ~ ~ A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF THE COLONY AND DENTON COUNTY FOR THE COLLECTION OF PROPERTY TAXES FOR THE CITY FOR 2003-2004 FISCAL YEAR; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Manager of'the City of The Colony, Texas, is hereby authorized and empowered to execute an Interlocal Cooperation Agreement with Denton County for the collection of property taxes for fiscal year 2003-2004. Section 2. That a true and correct copy of the Interlocal Cooperation Agreement is attached hereto and incorporated herein. Section 3. That this resolution shall take effect immediately ~rom and after its passage. PASSED AND APPROVED by the City Council of the City of The Colony, Texas, this 2nd day of June 2003. ATTEST: ~~__ ~/,~ ~fl~ /e -McC~'I~/Y' May°r7 Patti A. Hicks, TRMC, City Secretary THE STATE OF TEXAS COUNTY OF DENTON INTERLOCAL COOPERATION AGREEMENT - TAX COLLECTION THIS AGREEMENT is made and entered into this ~ t.~ day of ~_/~-~-, . 2003 by and between DENTON COUNTY, political subdivision of the State of Texas, hereinafter referred to as "COUNTY," and "CITY OF THE COLONY", 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 authorize the COUNTY to act as tax assessor and collector for MUNICIPALITY and the COUNTY has the authority to so act; NOW THEREFORE, COUNTY and MUNICIPALITY, for the mutual consideration hereinafter stated, agree and understand as follows: I. The effective date of this agreement shall be the 1st day of October 2003. The term of this Agreement shall be for a period of one year, from October 1, 2003 to and through September 30, 2004. This agreement is subject to renewal for additional one (1) year terms at the discretion of the Denton County Commissioners Court and the MUNICIPALITY, unless terminated by written notice by the COUNTY or MUNICIPALITY to the other participating in this agreement. Such written notice shall be given no later than one hundred fifty (150)days in advance of the expiration date of the agreement, or no later than one hundred fifty (150) days in advance of the termination date of any renewal agreement as provided herein. 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, ~vithout regard to race, sex, religion, color, age, disability or national origin; to-wit: I. COUNTY, by and through its duly elected tax assessor-collector, shall serve as tax assessor-collector for MUNICIPALITY for ad valorem tax collection purposes for tax year 2003 and each tax year thereafter, as herein provided. COUNTY agrees to perform for MUNICIPALITY all necessary duties hereby authorized, 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 develop and maintain such other records and forms as are necessary or required by law, State rules and/or regulations. COUNTY further agrees that it will calculate the effective tax rates and rollback tax rates for MUNICIPALITY and that such 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. It is understood and agreed by the parties hereto that the expense of publication shall be borne by the MUNICIPALITY and that COUNTY shall provide the MUNICIPALITY'S billing address to the newspaper publishing the effective and rollback tax rates. 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. 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, the required publication of quarter page notices shall be the responsibility of the MUNICIPALITY. 3. COUNTY will undertake and agrees to develop and maintain written policies and procedures of its operation, to make available to MUNICIPALITY full information about the operation of the COUNTY Tax Office, and to promptly furnish written reports hereinafter described to keep MUNICIPALITY informed of all financial information affecting it. 4. MUNICIPALITY agrees to promptly deliver to the possession and control of COUNTY all records that it has accumulated and developed in 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 hereof. 5. COUNTY agrees to allow an audit of the tax records of MUNICIPALITY during normal working hours with at least 48 hours advance written notice to COUNTY. The expense of any and all such audit and/or audits shall be paid for solely by MUNICIPALITY. A copy of any and all such audit and/or audits shall be furnished to COUNTY. 6. If required by MUNICIPALITY, COUNTY agrees to obtain a surety bond for the County Tax Assessor/collector, such bond to be conditioned on the faithful performance of 3 his/her lawful duties, payable to and in an amount determined by the governing body of the MUNICIPALITY. The premium for any and all such bonds as may be required by the MUNICIPALITY shall be borne solely by MUNICIPALITY. 7. COUNTY agrees that it will place ¼ to V2 page advertisements in newspapers serving Denton County in January 2004 as a reminder that delinquent tax penalties will apply to all assessed taxes which are not paid by January 31, 2004. The advertisements will be printed two times in each paper between January 5th and January 25t:q. Delinquent tax statements itemizing all taxes due per property account will be mailed in May per V.T.C.A., Tax Code, Section 33.07. MUNICIPALITY will pay fifty-five cents ($.55) for each delinquent tax statement, said statements to be mailed on or about May 1. 8. COUNTY agrees that it will fax or mail daily collection reports to MUNICIPALITY listing current taxes, delinquent taxes, penalties and interest; provide monthly Maintenance and Operation, hereinafter referred to as M & O, and Interest and Sinking, hereinafter referred to as I & S, collection reports; provide monthly recap reports; and provide monthly attorney fee collection reports. 9. MUNICIPALITY retains its right to select its own delinquent tax collection attorney and COUNTY agrees to reasonably cooperate with said attorney in the collection of delinquent taxes and related activities. III. COUNTY shall designate and does hereby designate the COUNTY Tax Assessor/ Collector to act on behalf of the COUNTY Tax Office, and to serve as Liaison for COUNTY with and between COUNTY and MUNICIPALITY. County Tax Assessor/ Collector, and his/her designated substitute, shall ensure the performance of all duties and obligations of 4 COUNTY as herein stated; 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; shall provide immediate and direct supervision of the COUNTY Tax Office employee, 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 agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all COUNTY employees and agents, sub-contractors and/or contract laborers, and . for those of other persons doing work under a contract or agreement with said COUNTY. V. MUNICIPALITY agrees to and accepts full 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 said MUNICIPALITY. 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. 5 VII. For the services rendered during the 2003 tax year as hereinabove stated, MUNICIPALITY agrees to pay the COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as follow: 1. The current tax statements will be mailed on or before October 15. This requirement xvill be deemed to have been met if the tax statement bears a postmark of not later than October 18. The fee for this service will be fifty-five cents ($0.55) per statement. In the event MUNICIPALITY fails to set its tax rate in time for the statements to be mailed on or before October 15, the fee for mailing the current tax statements will be one dollar and ten cents ($1.10) per statement. It is expressly agreed that the dates stated herein are contingent upon MUNICIPALITY setting its tax rate in a timely manner or on or before September 30, 2003. 2. Reminder notices that delinquent tax penalties will apply to all assessed taxes which are not paid by January 31, 2004 will be printed in newspapers serving Denton County. There will be no additional fee for the January reminder notice. 3. A second notice will be sent during the month of March following the initial mailing provided that MUNICIPALITY has requested same on or before February 28. The fee for this service will be charged at the existing First Class letter rate set by the United States Postal Service (currently $0.37 per statement). 4. At least 30 days, but no more than 60 days, prior to July 1, and following the initial mailing, a statement meeting the requirements of Section 33.07 of the Texas Property Tax Code will be mailed. The fee for this service will be fifty-five cents ($.55) per statement. 5. Only in the possible event of a successful rollback election taking place after tax bills for MUNICIPALITY have been mailed, MUNICIPALITY agrees to pay the COUNTY a 6 programming charge of $1,000 and an additional postage charge at the First Class letter rate (currently $0.37) per statement in order to comply with Property Tax Code Section 26.07 (f) and (g). Property Tax Code Section 26.07 requires refunds to be sent to those taxpayers who have already paid and a corrected statement sent to those taxpayers who have not as yet paid their taxes. MUNICIPALITY understands and agrees that COUNTY will bill MUNICIPALITY following each mailing for which charges are permitted as stated above for services rendered. Payment is due upon receipt of the statement. MUNICIPALITY further understands and agrees that COUNTY (at its sole discretion) may increase or decrease the amounts charged to MUNICIPALITY for any successive agreements between MUNICIPALITY and COUNTY for the services hereinabove stated with written notice to MUNICIPALITY of any such increase or decrease in the fee for said services, sixty (60) days prior to the expiration date of this agreement. VIII. COUNTY agrees to remit and pay over to MUNICIPALITY by check all taxes, penalties and interest collected on MUNICIPALITY'S behalf or to deposit same into such depositories as selected by MUNICIPALITY, as follow: 1. For deposits of tax, penalties and interest, the method of disbursement shall be wire transfer or by check sent by mail to MUNICIPALITY'S accounts, segregated into proper M & O and I & S accounts. 2. In the event the MUNICIPALITY uses the same depository as the COUNTY the above stated transfers of funds shall be by deposit transfer. 7 3. In anticipation of renewal of this Agreement by the parties herein, COUNTY further agrees that from April 1, 2004 through October 15, 2004 deposits will be made weekly and from October 16, 2003 through March 31, 2004, deposits will be made daily. For purposes of end of month reporting, there will be a deposit made at the end of each month of the year. 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 notice of termination, a withdrawing party shall be obligated to pay such payments as are required by this agreement through the entire balance of the tax year in which notice is given and COUNTY shall be obligated to provide services pursuant to this agreement, as hereinabove set forth, 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. COUNTY is a political subdivision of the State of Texas. The address of COUNTY is: County Judge of Denton County 110 West Hickory Denton, Texas 76201 Telephone 940-3~9-2820 8 MUNICIPALITY is a political subdivision of the State of Texas. The Address of MUNICIPALITY is: City of The Colony 6800 Main Street The Colony, Texas 75056 Telephone: 972-625-2741 XII. MUNICIPALITY shall designate and does hereby designate dackie Carrol 1 to act on behalf of MUNICIPALITY, and to serve as Liaison for MUNICIPALITY by and between COUNTY and the COUNTY Tax Office to ensure the performance of ali duties and obligations of MUNICIPALITY as herein stated; 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. The validity of this agreement and of any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. Further, this agreement shall be performable and all compensation payable in DENTON COUNTY, TEXAS. XIV. In the event that any portion of this agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. XV. The undersigned officer and/or agent of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions extending said authority have been duly passed and are now in full force and effect. Executed in duplicate originals this (~ day of ~ 2003. COUNTY MUNICIPALITY Denton County, Texas City of The Colony 110 West Hickory 6800 Main Street Denton, Texas 76201 The Colony, Texas 75056 Honorable Mary~om Title: Denton County Judge Acting on behalf of and by the Acting on behalf of and by the Authority of the Commissi.qa~tr?~.~oo, Authority of MUNICIPALITY. of Denton County, T exa~q.~/?~°,% ~[ ~5 ATTEST: C~thia Mitchell t.,,m~o Nam~ ~~ ~ )t ~ Denton County Clerk Title ~ ~ ~~ ~PROVED FOR FO~ A~ CONTENT: ~PROVED AS TO FO~: Steve Mossman Dent~ C~unt~ ~ Denton County Tax Assessor/Collector A~stant District Attorney 10