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countypropertyTax InterlocalAgreement.

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AN ORDINANCE AUTHORZING THE MAYOR OR HIS DESIGNEE TO ENTER


INTO AN INTERLOCAL AGREEMENT WITH DENTON COLINTY FOR THE
COLINTY TO PROVIDE PROPERTY TAX BILLING AND COLLECTION
SERVICESFOR THE CITY OF DENTON AND TO REPEAL ALL ORDINANCES
TO THE EXTENT OF CONFLICT THEREWITH(THE SPLIT-PAYMENTOPTION
FOR PAYMENT OF TAXES); AND PROVIDINGAN EFFECTIVEDATE.

WHEREAS,the City and DentonCounty(the "County") desireto enterinto an


InterlocalAgreementfor the Countythroughits duly electedtax assessor-collector
to act
astax assessorandcollectorfor the city propertytax collection;and

WHEREAS, the county is well equippedto perform this service;and

WHEREAS, the City Council finds that the Interlocal Agreementis in the public
interest;NOW THEREFORE,

THE COUNCILOF THE CITY OF DENTONHEREBYORDAINS:

SECTION 1. The findings and recitations contained in the preamble of this


ordinanceare incorporatedherein by reference.

SECTION 2. The Mayor, or his designee,is hereby authorizedto execute the


Interlocal Agreementof 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 lnterlocal Aereement
including the expenditureof funds provideclfor therein.

SECTION 3. This ordinance shall become effective immediately upon its


passageand approval.

PASSED i-lt
ANDAppRovEo tnisJL\!_d^y d /l{i( i t,/i: ,2007.

McNEILL MAYOR

ATTEST:
JENNIFERWALTERS, CITY SECRETARY
APPROVEDAS TO LEGAL FORM:
EDWIN M. S}ITDER,CITY ATTORNEY
INTERLOCAL COOPBRATIONAGREEMENT- TAX COLLECTION

THIS AGREBMENT is made and enteredinto this //w day of

2407,by andbetweenDENTON couNTy, a politicalsubdivision


of
the State of Texas, hereinafterreferredto as "COUNTY," and, the City/Town of DENTON,

Denton County, Texas,also a political subdivisionof the Stateof Texas,hereinafterreferredto

as "MUNICIPALITY."

WHEREAS' COUNTY and MUNICIPALITY mutually desire to be subject to the

provisionsof V.T.C.A. GovcmmentCode, Chapter791, the InterlocalCooperationAct. and

V.'f.C.A.,Tax Code,Section6.24'.and

WHEREAS, MUNICIPALITY hasthe authorityto contractwith the COUNTY for the

COUNTY to act as tax assessor


and collectorfor MUNICIPALITY and COUNTy has the

authorityto so act;

NOW THEREFORE, COUNTy and MUNICIPALITY, for and in considerationof

the mutual promises,covenants,and agreements


hereincontained,do agreeas follows:

The effective date of this Agreementshall be the I't day of October,2007. The term of

this Agreement shall be for a period of one year, from October l, 2007, to and through

September30,2008' This Agreementshall be automatically


renewedfor an additionalone (l)

year term at the discretionof the COUNTY and MUNICIPALITY, unlesswritten notice of

terminationis provided by the terminatingparly to the other party prior to one hundred-fifty

(150)daysof the expirationdateof the initiartermof the Asreement.

P a g e1 o f 1 0
II.

For the purposesand considerationherein stated and contemplated,COUNTy shall

providethe following necessaryand appropriateservicesfor MUNICIPALITY to the maximum

extent authorizedby this Agreement,without regardto race,sex, religion, color, age,disability,

or nationalorigin:

I' COUNTY, by and through its duly electedtax assessor-collector,


shall serve as

tax assessor-collector
for MUNICIPALITY for ad valoremtax collectionfor tax year 200i, and

eachtax year for the durationof this Agreement. COUNTY agreesto perform all necessary
ad

valorem assessingand collectingduties for MUNICIPALITY and MUNICIPALITy does

herebyexpresslyauthorizeCOUNTY to do and perform all actsnccessaryand proper


to assess

and collect taxes for MUNICIPALITY. COUNTY agreesto collect basetaxes,penalties,

interest,and attorney'sfees.

2' COUNTY agreesto prepare and mail all tax statements;provide monthly

collectionreportsto MUNICIPALITY; preparetax certificates;developand maintain


both

currentand delinquenttax rolls; meetthe requirements


of Section26.04of the'fexasTax Code;

and to develop and maintain such otherrecordsand'formsas are necessaryor required


by State

Iaw,rules,or regulations.

3. COUNTY further agreesthat it will calculatethe effectivetax ratesand rollback

tax ratesfor MUNICIPALITY and that suchcalculationswill be providedat no additionalcost

to MUNICIPALITY' The informationconcerningthe effectiveand rollback tax rateswill be

publishedin the form prescribedby the Comptrollerof Public Accountsof


the Stateof Texas,

and as requiredby Section26.04of V.T.C.A.Tax Code. DISTRICT shallnotifli


rax assessor-
?
collectorat least7 days beforeDISTRICT wishespublicationof forms specifiedin
this section.

P a g e2 o f 1 0
It is understoodand agreedby the parties that the expenseof publication shall be bome by

MUNICIPALITY and that COUNTY shall provide MUNICIPALITY's billing addressto the

newspaperpublishingthe effectiveand rollbacktax rates.

4. COUNTY agrees,upon request,to offer guidanceand the necessaryforms for

posting noticesof requiredhearingand quarter-pagenoticesas requiredby Sections26.05 and

26'06 of V.T.C.A. Tax Code, if DISTRICT requestssuch 7 days in advance. Should

MUNICIPALITY vote to increaseits tax rate abovethe rollback tax rate, or more than three

pcrcent(3Yo)abovethe effectivetax rate,whicheveris lower, (or other limits requiredby current

legislation) the required publication of quarter-pagenotices shall be the responsibilitv of

MUNICIPALITY-

5' COUNTY agreesto developand maintainwrittcn policiesand proceduresof its

operation'COUNTY furtheragrcesto make availablefull informationaboutthe operationof the

County Tax Office to MUNICIPALITY, and to promptly furnish written reports to keep

MUNICIPALITY informedof all financialinformationaffectinsit.

6- MUNICIPALITY agreesto promptlydeliverto COUNTY all recordsthat it has

accumulatedand developedin the ass'essment


and collection of taxes, and to cooperatei n

furnishing or locating any other informationand recordsneededby COUNTy to perform its

dutiesunderthe termsand conditionsof this Asreement.

7. COUNTY agreesto allow an audit of the tax recordsof MUNICIpALITy in

COUNTY'S possessionduring normal working hours with at least 48 hours advance.written

noticeto COUNTY. The expenseof any and all suchauditsshallbe paid by MUNICIPALITy.

A copy of any and all suchauditsshallbe furnishedto COUNTy.

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8. If requiredby MUNICIPALITY, COUNTY agreesto obtain a surerybond for

the County Tax Assessor/Collector.Such bond will be conditioned upon the faithful

performance of the Tax Assessor/Collector'slawful duties, will be made payable to

MUNICIPALITY and in an amountdeterminedby the governingbody of MUNICIPALITy.

The premiumfor any suchbond shall be bome solelyby MUNICIPALITY.

9' COUNTY agreesthat it will place quarter-pageadvertisementsin newspapers

servingDentonCountyin January,2008, as a reminderthat delinquenttax penaltieswill apply to

all assessed
taxeswhich are not paid by January31,2008. T'headverlisements
will be printed

two times in eachpaperbetweenJanuary5'l' and January25th.

10. COUNTY agreesthat it will fax, mail or post to a securewebsitecollection

reportsto MUNICIPALITY listing current taxes,delinquenttaxes,penaltiesand intereston a

daily basisbetweenOctober1,2007and March 3 I, 2008and on a weekly basisbetweenApril I,

2008 and September30, 2008;providemonthly Maintenanceand Operation(hereinafterreferred

to as "MO"), and Interestand Sinking (hereinafterreferredto as "lS") collectionreports;provide

monthly recapreports;and providemonthly attorneyfee collectionrepofis.

I l. MUNICIPALITY retains its right to selectits own delinquenttax collection

attorney and COUNTY agrees to reasonably cooperate with the attorney selected bv

MUNICIPALITY in the collectionof delinquenttaxesandrelatedactivities.

III.

COUNTY herebydesignates
the Denton County Tax Assessor/Collectorto act on behalf

of the County Tax Office and to serveas Liaison for COUNTY with MUNICIPALITY. The

County Tax Assessor/Collector,


and/or his/her designee,shall ensure the performanceof all

Cutiesand obligationsof COUNTY; shall devotesufficienttime and attentionto the executionof

P a g e4 o f l 0
said duties on behalf of COUNTY in full compliancewith the terms and conditionsof this

Agreement;and shall provide immediate and direct supervisionof the County Tax Office

employees,agents,contractors,subcontractors,
and/orlaborers,if any, in the furtheranceof the

purposes,terms and conditionsof this Agreement for the mutual benefit of COUNTy and

MUNICIPALITY.

IV.

COUNTY acceptsresponsibilityfor the acts,negligence,and/oromissionsrelatedto

property tax serviceof all COUNTY employeesand agents,sub-contractors


and /or contract

laborers,and for those actionsof other personsdoing work under a contractor agreementwith

COUNTY to the extentallowedby law.

V.

MUNICIPALITY acceptsresponsibility
for the acts,negligence,
and/oromissionsof all

MUNICIPALITY employeesand agents,sub-contractors


and/orcontractlaborers,and for those

of all other personsdoing work under a contractor agreementwith MUNICIpALITy to the

extentallowedby law.

VI.

MUNICIPALITY understandsand agrees that MUNICIPALITY, its employees,

servants,agents,and representatives
shall at no time representthemselvesto be employees,

servants,agents,and/or representatives
of COUNTY. COUNTY understandsand agreesthat

COUNTY, its employees,servants,agents, and representativesshall at no time represent

themselvesto be employees,servants,agents,and/orrepresentatives
of MUNICIpALITy.

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VII.

For the servicesrenderedduring rhe 20Al tax year, MUNICIPALITY agreesto pay

COUNTY for the receipting,bookkeeping,issuing,and mailing of tax statements


as follows:

l. The current tax statementswill be mailed on or about October20th or as soon

thereafteras practical. The fee for this servicewill be a ratenot exceedSeventy-ThreeCents

($'Z:) per statement.If MUNICIPALITY doesnot adopta tax ratebeforeSeptember29,2007,

the tax rate for MUNICIPALITY will be set at the lower of the effectivetax rate calculatedfor

that year or the tax rate adoptedby MUNICIPALITY for the precedingtax year. Before the

lifth day after establishmentof a tax rate underthis provision,MUNICIPALITy must ratifli the

applicabletax ratein the mannerrequiredby Article 26.05(b)of the TexasTax Code.

2. An additionalnotice will be sent during the month of March following the initial

mailing providedthat MUNICIPALITY hasrequestedsucha noticeon or beforeFebruary2gth.


'fhe
fee for this service will be chargedat the existing first classletter rate set by the United

StatesPostalService(currently$.39)plusa $.05processing
feeper statement.

3. At least30 days,but no more than 60 days,prior to April lst, and following the

initial mailing, a delinquenttax statementmeetingthe requirements


of Section33.1I of the

Texas Property Tax Code will be mailed. The fee for this servicewill be a rate not exceed

Seventy-Three
Cents($.Zf; per statement

4. At least 30 days, but no more than 60 days,prior to July lst, and following the

initial mailing, a delinquent tax statementmeeting the requirementsof Section 33.07 of the

Texas Property Tax Code will be mailed. The fee for this servicewill be a ratenot exceed

Seventy-Three
Cents($.2:1 per statement.

Page6ofl0
5' In event of a successfulrollback electionwhich takes place after tax bills for

MUNICIPALITY have been mailed, MUNICIPALITY agrees to pay COUNTY a

programmingcharge of $1,000.00. An additionalpostagecharge,at the first class letter rate

(currentlyS.39)plus a $.05 processingfee per correctedstatement,


to comply with propertyTax

Code Section 26.07 (f), will be charged. When a refund is requiredper PropertyTax Code

Section 26.07 (g), a $.05 processingfee per check will be charged,in addition to the corrected

statementmailing costs. Issuanceof refunds,in the eventof a successfulrollback election,will

be the responsibilityof the COUNTY. DISTRICT will be billed for the refunds,postageand

processing
fees.

6. MUNICIPALITY understands and agrees that COUNTY will bill

MUNICIPALITY following each mailing for which chargesare permitted.paymentis due

upon receiptof the statement.

7. MUNICIPALITY further understandsand agreesthat COUNTY (at its sole

discretion)may increaseor decreasethe amountschargedto MUNICIpALITy for any renewal

year of this Agreement,providedthat COUNTY giveswritten noticeto MUNICIPALITy sixtv

(60) days prior to the expirationdateof the initial term of the Asreement.

VIII.

COUNTY agrees to remit all taxes, penalties, and interest collected on

MUNICIPALITY's behalfand to depositsuchfundsinto the MUNICIPALITy's depositories

as designated:

I' For depositsof tax, penalties,and interest,paymentshallbe by wire transferor by

check sent by mail to MUNICIPALITY's accountsonly, and segregatedinto the appropriate

MO and IS accounts.

PageTofl0
2. If MUNICIPALITY usesthe samedepositoryas COUNTY, the depositsof tax,

penaltyand interestshall be by deposittransfer.

3. In anticipationof renewalof this Agreement,COUNTY further agreesthat from

O c t o b e r1 , 2 0 0 7 t h r o u g hM a r c h 3 1 , 2 0 0 8 ,d e p o s i t w
s i l l b e m a d ed a i l y a n d f r o m A p r i l 1 , 2 0 0 8 ,

through September30, 2008, depositswill be made weekly. For end of month reporting,there

will be a depositmade at the end of eachmonth. It is expresslyunderstood,however,that this

obligationof COUNTY shall not surviveterminationof this Agreement,whetherby termination

by eitherparty or by failureof the partiesto renewthis Agreement.

IX.

In the event of termination,the withdrawing party shall be obligated to make such

paymentsas are requiredby this Agreementthroughthe balanceof the tax year in which notice

is given. COUNTY shall be obligatedto provideservicespursuantto this Agreement,during

suchperiod.

X.

This Agreement representsthe entire agreementbetween MUNICIPALITY and

COUNTY and supersedesall prior negotiations,representations,


and/or agreements,either

written or oral. This Agreementmay be amendedonly by written instrumentsigned by the

governing bodies of both MUNICIPALITY and COUNTY or those authorizedto sisn on

behalfof thosegoverningbodies.

Page8ofl0
XI.

Any andall writtennoticesrequired


to be givenunderthisAsreementshallbe delivered

or mailedto the listedaddresses:

COUNTY:
County Judgeof DentonCounty
I l0 WestHickory
Denton,Texas76201
Telephone9 40-349-2820

MUN ICIPALITY:

The City/Town of Denton


215 F..McKinney
Denton,Texas76201
Telephone: 940 -349-8700
Contact:GaryCalmes

XII.

MUNICIPALITY hereby designates to act on behalf of

MUNICIPALITY, and to serveas Liaison for MUNICIPALITY to ensurethe performanceof

all duties and obligations of MUNICIPALITY as stated in this Agreement.

MUNICIPALITY's designeeshalldevotesufficienttime and attentionto the executionof said

dutieson behalfof MUNICIPALITY in full compliancewith the termsand conditionsof this

Agreement,shallprovideimmediateand directsupervision
of the MUNICIPALITY employees,

agents,contractors,subcontractors,
and/or laborers,if any, in the furtheranceof the purposes,

terms and conditions of this Agreement for the mutual benefit of MUNICIpALITy and

COUNTY.

P a g e9 o f l 0
XIII.

In the eventthat any portion of this Agreementshall be found to be contraryto law, it is

the intent of the partiesthat the remainingportionsshall remainvalid and in full force and effect

to the extentpossible.

Xry,
The undersignedofficersand/oragentsof the partiesare the properly authorizedofficials

and have the necessaryauthorityto executethis agreementon behalf of the parties. Each party

hereby certifiesto the other that any resolutionsnecessaryfor this Agreementhave been duly

passedand are now in full forceandeffect.

Executedin duplicateoriginalsthis, /tw day


or 1ilA/rur^'
tf-
2007.
u
COLTNTY MLINICIPALITY

DentonCounty The City/Town of Denton


I l0 West Hickory 215 E. McKinney
Denton,Texas76201

BY:
onorableMary Title:
DentonCounty

ATTEST:

BY: B\A
thia Mitchell Na
Dehton CountyClerk

APPROV AND CONTENT: APPROVED

SteveMossman
Denton County Denton County
Tax Assessor/Collector AssistantDistrict Attornev

APPROVEDASTOFORM:
CITYATTORNEY
P a g e1 0 o f l 0 CITYOFDENTON,
TEMS
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