HomeMy WebLinkAboutResolution No. 05-52
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 05- S- ~
A RESOLUTION OF THE CITY OF THE COLONY, 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 2005-2006
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 lnterlocal Cooperation Agreement with Denton County for
the collection of property taxes for fiscal year 2005-2006.
Section 2. That a true and correct copy of the lnterlocal Cooperation Agreement is
attached hereto and incorporated herein.
Section 3. That this resolution shall take effect immediately from and after its passage.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas this 6th day of June, 2005.
Dillard, Mayor
ity of The Colony, Texas
r!MAi- !AJ4J
Christie Wilson, TRMC, City Secretary
~
INTERLOCAL COOPERATION AGREEMENT - TAX COLLECTION
THIS AGREEMENT is made and entered into this & ~ day of
~i<~ 2005, by and between DENTON COUNTY, a political snbdivision of
the Sta e of Texas, heremafter 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 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 151 day of October, 2005. The term of
this Agreement shall be for a period of one year, from October 1, 2005, to and through
September 30, 2006. 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:
1. 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 2005, 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.
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. It is understood and agreed by the
parties that the expense of publication shall be borne by MUNICIPALITY and that COUNTY
Page 2 of 10
shall provide 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, (or
other limits required by current legislation) the required publication of quarter-page notices shall
be the responsibility of MUNICIPALITY.
3. 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.
4. 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.
5. 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.
6. 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
Page 3 of 10
MUNICIP ALITY and in an amount determined by the governing body of MUNICIPALITY.
The premium for any such bond shall be borne solely by MUNICIPALITY.
7. COUNTY agrees that it will place quarter-page advertisements in newspapers
serving Denton County in January, 2006, as a reminder that delinquent tax penalties will apply to
all assessed taxes which are not paid by January 31, 2006. The advertisements will be printed
two times in each paper between January 5th and January 25th. 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 Sixty-Five Cents ($.65) for each delinquent tax
statement. The statements will be mailed on or about May 1 st.
8. COUNTY agrees that it will fax or mail collection reports to MUNICIPALITY
listing current taxes, delinquent taxes, penalties and interest on a daily basis between October 1,
2005 and March 31, 2006 and on a weekly basis between April 1, 2006 and September 30, 2006;
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.
9. 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.
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
Page 4 oflO
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 of all
COUNTY employees and agents, sub-contractors and lor 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
For the services rendered during the 2005 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 15th. This
requirement will be deemed to have been met if the tax statement bears a postmark of not later
than October 20th. The fee for this service will be Sixty-Five Cents ($.65) per statement. If
MUNICIPALITY does not adopt a tax rate before September 29, 2005, 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. A second 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 fee for this service will be charged at the existing first class letter rate set by the United
States Postal Service (currently $.37) plus a $.05 processing fee per statement.
3. At least 30 days, but no more than 60 days, prior to July 1st, and following the
initial mailing, a statement meeting the requirements of Section 33.07 of the Texas Property Tax
Code will be mailed. The fee for this service will be Sixty-Five Cents ($.65) per statement. (see
Part II, paragraph 7)
4. 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 $1,000.00 and an additional postage charge at the first class letter rate
(currently $.37) plus a $.05 processing fee per statement to comply with Property Tax Code
Section 26.07 (t) and (g). Property Tax Code Section 26.07 requires refunds to be sent to those
Page 6 of 10
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 requires a corrected statement to be sent to those taxpayers
who have not yet paid their taxes.
5. 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.
6. 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 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, 2005 through March 31, 2006, deposits will be made daily and from April 1, 2006,
through September 30, 2006, 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
Page 7 of 10
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.
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
11 0 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
MUNICIPALITY:
Mayor John Dillard
City of The Colony
6800 Main Street
The Colony, Texas 75056
Telephone: 972-625-1756
Page 8 of 10
/
Contact: "Christie Wilson
XIII.
l~i-ncthC-e.. f)lr~
MUNICIPALITY hereby designates Rp bee-co- )(00 to act on behalf of
MUNICIPALITY, and to serve as Liaison for MUNICIPALITY to ensure the performance of
all duties and obligations of MUNICIP ALITY 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.
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 that the remaining portions shall remain valid and in full force and effect
to the extent possible.
XV.
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 this,
bA
day of J~
2005.
Page 9 of 10
COUNTY
Denton County Texas
11 0 West Hickory
Denton, T 6201
MUNICIP ALITY
City of The Colony
6800 Main Street
The Colony, Texas 75056
BY: C;)~ ~
Title: c..-.~ )Il~d
BY:
Honorable Mar
Denton County
ATTEST:
~\\\\""U"""I.
~",~ ~\S COlJ. ;"'"
.ff' ~~:,..........,~ l' ~% A TTES T:
~;," .... ....0- '\ 1
~~.J~ \a-:.
-~- -fT':::
=~: :. z= ...... ~
~ ~ h;gBY:C-~uJ~
-:: 0 '. - ~::: Name tl; ~ 1s=
~ .() . .... 00::;;,; ~ ",..$ I "
~U:>--'I, ,""'.....~~. I ...
~"-I-~ ..,'....".... ~(J SO TItle
"":{ * 1--\.~ ~",,,,
'111 \\'
111'''11111'''\
APPROVED FORM AND CONTENT:
APPROVED AS TO FORM:
~~~
Steve Mossman
Denton County Tax Assessor/Collector
Page 10 of 10
enton County
Assistant District Atto