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Home My WebLink About2016-0816 Interlocal Cooperation Agreement for Tax Collection between Denton County and the District for FY2017THE STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR TAX COLLECTION BETWEEN DENTON COUNTY, TEXAS, AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THIS AGREEMENT is made and entered into this 16th day of ___ A_ugu_s_t ___ 2016, 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 Denton County, Texas, also a political 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: 1 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT I. The effective date of this Agreement shall be the 1st day of October, 2016. The term of this Agreement shall be for a period of one year, from October 1, 2016, to and through September 30, 2017. This Agreement shall be automatically renewed for an additional one (1) 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 of the expiration date of the current term of the Agreement. DISTRICT agrees to deliver this agreement no later than September 5, 2016 or the first Monday of September 2016 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: 1. COUNTY, by and through its duly qualified tax assessor-collector, shall serve as tax assessor-collector for DISTRICT for ad valorem tax collection for tax year 2016, and each tax year for the duration of this Agreement. COUNTY agrees to perform 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 2 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT 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 quarter-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 3 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT 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 ofDISTRICT. 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 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 ofthis 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. 4 of 14 2016 SPECIAL DISTRICT INTER LOCAL AGREEMENT 10. 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, 2017. COUNTY agrees to mail a reminder notice to delinquent property accounts in the month of February notifying that delinquent tax penalties will apply to all assessed taxes which are not paid by January 31, 20 1 7. The reminder notices will be mailed between February 5, 2017 and February 28, 2017. 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, 2017. 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 notice of any change in collection attorney on or before the effective date of the new collection attorney contract. 5 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT 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 for 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. 6 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT 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 2016 tax year, DISTRICT agrees to pay COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as follows: 1. The current tax statements will be mailed by October 1 01h or as soon thereafter as practical. In order to expedite mailing of tax statements the DISTRICT must adopt their 2016 tax rate by September 29, 2016. Failure of the DISTRICT to adopt a tax rate by September 29, 2016 may cause delay in timely mailing oftax statements. Pursuant to Texas Property Tax Code §26.05 if the DISTRICT must adopt a tax rate by the later of September 30th or 60 days after the certified appraisal roll is received. Failure to adopt and deliver a tax rate by the later of September 301h 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 adopted tax rates (M&O and I&S) to the Tax Assessor Collector by September 29, 2016, it may cause a delay in the publication and release of tax statements. 7 of 14 2016 SPECIAL DISTRICT INTERLOCALAGREEMENT 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 28, 2017. The fee for this service will be a rate not to exceed $0.72 per statement. 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 of the Texas Property Tax Code will be mailed to the owner of each parcel having delinquent taxes. 3. 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. 4. 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. 5. 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 $0.72 per statement Property Tax Code Section 26.07 (f). 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 8 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT successful rollback election, will be the responsibility of the COUNTY. DISTRICT will be billed for the refunds, postage and processing fees. 6. DISTRICT understands and agrees that COUNTY will, no later than January 31, 2017, 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: $0.72 x the total number of parcels listed on the DISTRICT's September 30, 2016 end of year Tax Roll for tax year 2015. 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 1, COUNTY shall bill DISTRICT for such amounts. DISTRICT shall pay COUNTY all such billed amounts within 30 days of its receipt of said bill. 7. 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. 9 of 14 2016 SPECIAL DISTRICT INTER LOCAL AGREEMENT 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 further agrees that deposits will be made daily through September 30, 2017. 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. 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. 10 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT IX. As provided by Sections 49.107(g) and 49.108(±) 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: 11 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT COUNTY: County Judge ofDenton County 11 0 West Hickory Denton, Texas 76201 Telephone 940-349-2820 DISTRICT: NAME. __ Tr_qphy __ ~lub Municip~_!_!Jtili_!y D!~~ict No~_!_ ____________ _ Address: 100 Municipal Drive City, State, Zip: Trophy Club, Texas 76262 Telephone: 682-831-4600 Email: rgonzales@tcmud.org XIII. DISTRICT hereby designates Renae Gonzales, Finance Mgr. 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. 12 of 14 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT 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, I}_~~ day of ~'!: ' 2016. COUNTY Denton County 11 0 West Hickory Denton, Texas 76201 BY:_,__~....,.II£ti.,.._~L.....!!.311!!!=-..!~ Honorable Mar om Denton County Judge ATTEST: 13 of 14 DISTRICT Trophy Club Municipal Utility District No. 1 Address: 1 00 Municipal Drive City, State, Zip: Trophy Club, Texas 76262 BY:_~-~~ Denton County Assistant District Attorney 2016 SPECIAL DISTRICT INTERLOCAL AGREEMENT Exhibit A: Board of Directors for: Trophy Club Municipal Utility District No. 1 Office Name President Kevin R. Carr Vice President Greg Wilson Secretary/Treasurer James Hase ----------------------Treasurer Member Jim Thomas Member Bill Rose Member Member Member Member Member Member Member 14 of 14 Phone Number 682-831-4600 682-831-4600 682-831-4600 682-831-4600 . 682-831-4600 2016 SPECIAL DISTRICT INTERLOCALAGREEMENT