HomeMy WebLinkAbout2013 Denton County Interlocal Agreement for Tax CollectionTHE STATE OF TEXAS §
COUNTY OF DENTON §
INTERLOCAL COOPERATION AGREEMENT FOR TAX COLLECTION
BETWEEN DENTON COUNTY, TEXAS, AND
TROPHY CLUB MUNICIPAl UTII ITY DISTRICT NO. 1
THIS AGREEMENT is made and entered into this 18th ----------------
day of June _______ 2013, by and between DENTON COUNTY, a political
subdivision of the State of Texas, hereinafter referred to as "COUNTY," and
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 D C T I 1. · 1 _ enton ounty, exas, a so a po tttca
subdivision of the State of Texas, hereinafter referred to as "DISTRICT."
WHEREAS, COUNTY and DISTRICT 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, DISTRICT has the authority to contract with the COUNTY for the
COUNTY to act as tax assessor and collector for DISTRICT and COUNTY has the
authority to so act;
NOW THEREFORE, COUNTY and DISTRICT, for and in consideration of
the mutual promises, covenants, and agreements herein contained, do agree as follows:
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I.
The effective date ofthis Agreement shall be the 151 day ofOctober, 2013. The term of
this Agreement shall be for a period of one year, from October I, 2013, to and through
September 30, 2014. This Agreement shall be automatically renewed for an additional
one (I) year term at the discretion of the COUNTY and DISTRICT, unless written
notice of termination is provided by the terminating party to the other party prior to one
hundred-fifty (150) days ofthe expiration date of the current term ofthe Agreement.
DISTRICT agrees to deliver this agreement no later than September 30,2013 in manner
required by COUNTY to fully execute said collection services by COUNTY.
II.
For the purposes and consideration herein stated and contemplated, COUNTY
shall provide the following necessary and appropriate services for DISTRICT to the
maximum extent authorized by this Agreement, without regard to race, sex, religion,
color, age, disability, or national origin:
I. COUNTY, by and through its duly qualified tax assessor-collector, shall
setve as tax assessor-collector for DISTRICT for ad valorem tax collection for tax year
2013, and each tax year for the duration of this Agreement. COUNTY agrees to perfom1
all necessary ad valorem assessing and collecting duties for DISTRICT and DISTRICT
does hereby expressly authorize COUNTY to do and perform all acts necessary and
proper to assess and collect taxes for DISTRICT. COUNTY agrees to collect base
taxes, penalties, interest, and attorney's fees.
2. COUNTY agrees to prepare and mail all current and delinquent tax statements
required by statute, supplemental changes for applicable property accounts, as well as
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prepare and mail any other mailing as deemed necessary and appropriate by COUNTY;
provide daily and monthly collection and distribution reports to DISTRICT; prepare tax
certificates; develop and maintain both current and delinquent tax rolls, disburse tax
monies to DISTRICT daily (business day) based on prior day tax postings. COUNTY
agrees to approve and refund overpayment or erroneous payment of taxes for DISTRICT
pursuant to Texas Property Tax code Sections 31.11 and 31.12 from available current tax
collections of DISTRICT; 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 and rollback tax
rates for DISTRICT, however all calculations will be performed using only the Texas
State Comptroller's "Truth In Taxation" formulas, and that such calculations will be
provided at no additional cost to DISTRICT. 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 no later than July 25th of each year
that DISTRICT wishes publication of forms or notices specified in this section. It is
understood and agreed by the parties that the expense of publication shall be borne by
DISTRICT and that COUNTY shall provide DISTRICT'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 quatter-page notices as required by Sections
26.05 and 26.06 ofV.T.C.A. Tax Code, if DISTRICT requests such 7 days in advance of
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the intended publication date. DISTRICT must approve all calculations and notices, in
the format required by COUNTY, before publication may proceed. The accuracy and
timeliness of all required notices are the responsibility of DISTRICT.
5. Should DISTRICT vote to increase its tax rate above the rollback tax rate
the required publication of notices shall be the responsibility of DISTRICT.
6. 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 DISTRICT, and to promptly furnish written
reports to keep DISTRICT informed of all financial information affecting it.
7. DISTRICT agrees to promptly deliver to COUNTY all records that it has
accumulated and developed in the assessment and collection oftaxes, 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.
8. COUNTY agrees to allow an audit of the tax records of DISTRICT 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
DISTRICT. A copy of any and all such audits shall be furnished to COUNTY.
9. If required by DISTRICT, 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
DISTRICT and in an amount determined by the governing body of DISTRICT. The
premium for any such bond shall be borne solely by DISTRICT.
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I 0. COUNTY agrees that it will post a notice on its website, as a reminder
that delinquent tax penalties will apply to all assessed taxes which are not paid by
January 31, 2014. COUNTY agrees to mail a reminder notice to delinquent propetiy
accounts in the month of February notifying that delinquent tax penalties will apply to all
assessed taxes which are not paid by January 31,2014. The reminder notices will be
mailed between February 5th and February 28th
11. COUNTY agrees that it will post to a secure website collection reports for
DISTRICT listing current taxes, delinquent taxes, penalties and interest on a daily basis
through September 30, 2014. COUNTY will 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.
12. DISTRICT retains its right to select its own delinquent tax collection
attorney and COUNTY agrees to reasonably cooperate with the attorney selected by
DISTRICT in the collection of delinquent taxes and related activities.
13. DISTRICT will provide COUNTY with a copy of their current tax
collection attorney contract on or before each February 15th. DISTRICT will provide
COUNTY with notice of any change in collection attorney on or before the effective date
of the new collection attorney contract.
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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
DISTRICT. The County Tax Assessor/Collector, and/or his/her designated substitute,
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
DISTRICT.
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 tor those actions of other persons doing work under a
contract or agreement with COUNTY to the extent allowed by law.
v.
DISTRICT accepts responsibility for the acts, negligence, and/or omissions of all
DISTRICT employees and agents, sub-contractors and/or contract laborers, and for those
of all other persons doing work under a contract or agreement with DISTRICT to the
extent allowed by law.
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VI.
DISTRICT understands and agrees that DISTRICT, 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
DISTRICT.
VII.
For the services rendered during the 2013 tax year, DISTRICT agrees to pay
COUNTY tor the receipting, bookkeeping, issuing, and mailing of tax statements as
follows:
1. The current tax statements will be mailed by October 10 111 or as soon
thereafter as practical. In order to expedite mailing of tax statements the DISTRICT
must adopt their 2013 tax rate by September 25, 2013. Failure of the DISTRICT to
adopt a tax rate by September 25, 2013 will cause delay in timely mailing of tax
statements. Pursuant to Texas Property Tax Code §26.05 if the DISTRICT must adopt a
tax rate by the later of September 30111 or 60 days after the certified appraisal roll is
received. Failure to adopt and deliver a tax rate by the later of September 30111 or 60 days
after the certified appraisal roll is received may result in delay of processing and mailing
DISTRICT tax statements. DISTRICT agrees to assume the costs for additional
delayed tax statements, processing and mailing as determined by COUNTY.
Notwithstanding the provisions of the Tax Code, if DISTRICT fails to deliver the
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adopted tax rates (M&O and I&S) to the Tax Assessor Collector by September 25, 2013,
it may cause a delay in the publication and release oftax statements.
2. An additional notice will be sent during the month of March following the
initial mailing provided that DISTRICT has requested such a notice on or before
February 28th. The fee for this service will be a rate not to exceed $0.70 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 ofthe Texas Property Tax Code will be mailed to the owner of each parcel
having delinquent taxes.
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 to the owner of each parcel having
delinquent taxes.
5. For accounts which become delinquent on or after June 15
\ COUNTY
shall mail a delinquent tax statement meeting the requirements of Section 33.08 of the
Texas Property Tax Code to the owner of each parcel having delinquent taxes.
6. In event of a successful rollback election which takes place after tax bills
for DISTRICT have been mailed, DISTRICT agrees to pay COUNTY a programming
charge of $5,000.00. COUNTY will mail corrected statements to the owner of each
parcel. COUNTY will charge a fee for this service will be a rate not to exceed $0.70 per
statement Property Tax Code Section 26.07 (t). When a refund is required per Property
Tax Code Section 26.07 (g), COUNTY will charge a $.25 processing fee per check, in
addition to the corrected statement mailing costs. Issuance of refunds, in the event of a
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successful rollback election, will be the responsibility of the COUNTY. DISTRICT will
be billed for the refunds, postage and processing fees.
7. DISTRICT understands and agrees that COUNTY will, no later than
January 31st, deduct from current collections of DISTRICT the "Total Cost" of
providing all services described in paragraphs 1-5 above. This "Total Cost" includes any
such services that have not yet been performed at the time of deduction. The "Total
Cost" of providing all services described in paragraphs 1-5 above shall be the total of:
$ 0.70 x the total number of parcels on DISTRICT'S Tax Roll for tax year 2013.
In the event that a rollback election as described in paragraph 6 takes place, COUNTY
shall bill DISTRICT for the applicable programming charge, check processing fees,
refunds paid, and refund postage costs. DISTRICT shall pay COUNTY all billed
amounts within 30 days of its receipt of said bill. In the event costs for additional
delayed tax statements, processing and mailing are incurred as described in paragraph l,
COUNTY shall bill DISTRICT for such amounts. DISTRICT shall pay COUNTY all
such billed amounts within 30 days of its receipt of said bill.
8. DISTRICT further understands and agrees that COUNTY (at its sole
discretion) may increase or decrease the amounts charged to DISTRICT for any renewal
year of this Agreement, provided that COUNTY gives written notice to DISTRICT
sixty (60) days prior to the expiration date of the initial term of the Agreement. The
County Budget Office establishes collection rates annually based on a survey of actual
annual costs incurred by the COUNTY in performing tax collection services. The
collection rate for each year is approved by County Commissioners' Court. All entities
are assessed the same per parcel collection rate.
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VIII.
COUNTY agrees to remit all taxes, penalties, and interest collected on
DISTRICT's behalf and to deposit such funds into DISTRICT's depositories as
designated:
1. For deposits of tax, penalties, and interest, payment shall be by wire
transfer or ACH to DISTRICT's depository accounts only, and segregated into the
appropriate MO and IS accounts. Only in the event of failure of electronic transfer
protocol will a check for deposits of tax, penalty and interest be sent by mail to
DISTRICT.
2. If DISTRICT 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 fm1her agrees
that deposits will be made daily through September 30, 2014. 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 pat1ies to renew
this Agreement.
4. In event that COUNTY experiences shortage in collections as a result of
an outstanding tax debt of DISTRICT, the DISTRICT agrees a payment in the amount
of shortage shall be made by check or ACH to COUNTY within 15 days after
notification of such shortage.
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IX.
As provided by Sections 49.1 07(g) and 49.1 08(f) of the Texas Water Code,
Sections 26.04, 26.05, and 26.07 of the Texas Property Tax Code do not apply to taxes
levied by DISTRICT, except as provided in Water Code Section 49.236. Therefore,
references in the Agreement to Sections 26.04, 26.05, 26.07 of the Property Tax Code or
to the requirements of those sections shall not apply to DISTRICT, except to the extent
provided in Water Code Section 49.236. DISTRICT shall comply with Water Code
Section 49.236.
X.
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.
XI.
This Agreement represents the entire agreement between DISTRICT 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 DISTRICT and COUNTY or those authorized to
sign on behalf of those governing bodies.
XII.
Any and all written notices required to be given under this Agreement shall be delivered
or mailed to the listed addresses:
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COUNTY:
County Judge ofDenton County
11 0 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
DISTRICT:
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Address: _1_0_0_M_u_n_ic_i_p_a_I_D_r_iv_e _____ _
City, state, Zip: Trophy Club, TX 76262
Telephone: 682-831-4600 Email: _j m_c_k_n_ig_h_t_@_t_c_m_u_d_. O_r_g
XIII.
Renae Gonzales, Finance Mgr
DISTRICT hereby designates to act on behalf of
DISTRICT, and to serve as Liaison for DISTRICT to ensure the performance of all
duties and obligations of DISTRICT as stated in this Agreement. DISTRICT's
designee shall devote sufficient time and attention to the execution of said duties on
behalf of DISTRICT in full compliance with the terms and conditions of this
Agreement; shall provide immediate and direct supervision of the DISTRICT
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
DISTRICT and COUNTY. Attached Exhibit A lists current members of the Board of
Directors with contact information, and the time and location of regular board meetings.
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XIV.
In the event that any portion of this Agreement shall be found to be contrary to
law, it is the intent ofthe pmties that the remaining p01tions 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, _1_8t_h ____ day of_J_un_e _______ _
2013.
COUNTY
Denton County
II 0 West Hickory
Denton , Texas 76201
ATTEST:
rench
Denton County
Tax Assessor/Collector
Page 13 of 14
DISTRICT
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Address: 1 00 Municipal Drive
City, State, Zip: Trophy Club, TX 76262
APPr;:O FORM: j
1 ~9dt4 I{
·--.
Denton County
Assistant District Attorney
Exhibit A:
Board of Directors for:
Office
President
Vice President
Secretary
Treasurer
Member
Member
Member
Member
Member
Member
Member
Member
Member
Page 14 of 14
TROPHY Cl lJB MlJNICIPAI lJTII ITY DISTRICT NO 1
Name
Jim Moss
Bill Armstrong
Kevin R. Carr
Kevin R. Carr
Jim Thomas
Nick Sanders
Phone Number
682-831-4600
682-831-4600
682-831-4600
682-831-4600
682-831-4600
682-831-4600
14. F.
THE ORDER:
DENTON COUNTY
COMMISSIONERS COURT
08/13/2013
Month
Court Order Number
Approval of the 2013-2014 Inter local Cooperation Agreement ("ICA") for property tax collection
between Denton County, Texas, and Trophy Club Municipal Utility District No. I ("MUD") as
recommended by the Denton County Tax Assessor/Collector, and any appropriate action.
~otionby~'(~
Commissioner Pet No I Yes \4
Hugh Coleman Abstain "!:....'
No
Absent
Commissioner Pet No 3 Yes ~
Bobbie J. Mitchell Abstain _
No
Absent
County Judge
Mary Horn
Other Action: Pulled from Consent
Denton CoWity
Yes
Abstain
No
Absent
Seconded by _,f:_ad __ ..... ~.;a&..----
)a
Commissioner Pet No 7 Yes ~
Ron Marchant Abstain _(_~
No
Absent
Commissioner Pet No 4 Yes \0
Andy Eads Abstain _T_
No
Absent -~otion Carried ~ • (). a -
No Action
Page3of3
Postponed
ATTEST:
Cynthia Mitchell, County Clerk
and Ex-Omcio Clerk of the
Commissioners Court of
Denton County, Texas
AUG 2 7 2013
Printed on /l/8110/3
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