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HomeMy WebLinkAbout2019-0909 ILA for Property Tax Assessment and Collection with Denton County14. C. THE ORDER: DENTON COUNTY COMMISSIONERS COURT 08/20/2019 Month ‘gDac 6Y Court Order NumVer Approval of Interlocal Cooperation Agreements between Denton County, Texas and each of the following entities for ad valorem tax.collection, as recommended by the Denton County Tax Assessor -Collector, 1) City of Aubrey; 2) Lake Dallas Independent School District; 3) Piot Point Independent School District; 4) Frisco West Water Control and Improvement District of Denton County; 5) Trophy Club Municipal Utility District No. 1; 6) Argyle Independent School District; 7) Smiley Road Water Control and Improvement District No. 1; 8) City of The Colony; 9) City of Carrollton; 10) City of Sanger; 11) Ponder Independent School District; 12) Town of Little Elm; 13) Town of Dish; 14) City of New Fairview & 15) City of Oak Point, and any appropriate action. Motion by k.V(8,A4- Seconded by Commissioner Pct No 1 Yes Hugh Coleman Abstain _ No Absent Commissioner Pct No 3 Yes Bobbie J. Mitchell Abstain _ No Absent ction: Pulled f County Judre Andy Eads Consent t3Y SIONE Yes Abstain No _ Absent movIrkma Commissioner Pet No 2 Yes Ron Marchant Abstain No Absent Commissioner Pct No 4 Yes , Dianne Edmondson Abstain _ No Absent Motion Carried No Action COURT: Postponed ATTEST: '1111173111p117,141101 annty Clerk ud Ex-Offic ouClerk of he i$ t ommissiouers Court of r •�"✓L�enton County, Texas r 1 esiding Officer APPROVED AS TO Assista 'et Attorney Denton County .. rIMO }. $Y: Ca u 6'� Page 3 of Printed on 8/13/2019 684 of 1083 THE STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR PROPERTY TAX ASSESSMENT AND COLLECTION BETWEEN DENTON COUNTY, TEXAS AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, TROPHY CLUB, TEXAS INTERLOCAL COOPERATION AGREEMENT —TAX COLLECTION THIS AGREEMENT is made and entered into 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, and Section 6.24; 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: Page 1 of 13 Special District Multi Year ILA I. The effective date of this Agreement shall be October 1, 2019. The initial term of this Agreement shall be for a period of one year commencing October 1, 2019 and ending September 30, 2020. Following the initial term, this Agreement shall automatically renew for subsequent one-year terms, unless written notice of termination is provided by COUNTY or DISTRICT no later than one hundred -eighty (180) days prior to the expiration date of the then -current term of the Agreement. If said notice is provided, this Agreement shall terminate at the end of the then -current term. During the initial term of this Agreement, the term "tax year" means tax year 2018 and the term "collection year" means 2019. During each subsequent renewal term, the term "tax year" means the year following the previous term's "tax year", and the term "collection year" means the year following the previous term's "collection year." For example, during the first renewal term of this Agreement (October 1, 2020 — September 30, 2021), the term "tax year" means tax year 2019 and the term "collection year" means 2020, during the second renewal term of this Agreement (October 1, 2021 — September 30, 2022), the term "tax year" means tax year 2020 and the term "collection year" means 2021, and so on. 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: Page 2 of 13 Special District Multi Year ILA 1. COUNTY, by and through its duly qualified tax assessor-collector, shall serve as tax assessor-collector for the DISTRICT for ad valorem tax collection for the tax year. 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 prepare and mail any other mailing as deemed necessary and appropriate by COUNTY; provide daily and monthly collection 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, 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; and to 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 State law, rules, or regulations. 3. COUNTY further agrees that it will calculate the effective tax rates 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 calculation 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. Page 3 of 13 Special District Multi Year ILA DISTRICT shall notify tax assessor -collector no later than July 25th of the collection year that DISTRICT wishes publication of forms or notices specified in this section. It is understood and agreed to 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. In the event DISTRICT requires early calculation based on certified estimate values, DISTRICT must notify COUNTY no later than May 20th of the collection year that DISTRICT wishes publication of forms or notices specified in this section. 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 of V.T.C.A. Tax Code, if DISTRICT requests such no less than 7 days in advance of 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. This Agreement is subject to and the parties herein shall comply with all applicable provisions of the Texas Property Tax Code and all other applicable Texas statutes. COUNTY will submit to DISTRICT approval forms of the tax rate calculation and required notices. DISTRICT must return executed approval forms to tax assessor/collector before notices may be appropriately submitted to the appraisal district, newspapers, etc. as required by law. 5. Should DISTRICT vote to increase its tax rate above the rollback tax rate the required publication of notices shall be the responsibility of the DISTRICT. Should Page 4 of 13 Special District Multi Year ILA DISTRICT roll back the tax rate as a result of Tax Rate Rollback Election, 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 frill 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 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. 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 that are not paid by January the collection year. 31St of Page 5 of 13 Special District Multi Year ILA 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 30th of the collection year. 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. 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. Page 6 of 13 Special District Multi Year ILA 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. 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 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 10th of the tax year or as soon thereafter as practical. Pursuant to Texas Property Tax Code §26.05(a), the DISTRICT must adopt its tax year tax rate before the later of the applicable dates set forth therein. In order to expedite mailing of tax statements, DISTRICT shall adopt and then deliver its adopted tax rate to COUNTY no later than said adoption deadline. Failure by Page 7 of 13 Special District Multi Year ILA DISTRICT to adopt and then deliver the adopted tax rate to COUNTY by the adoption deadline set forth in §26.05(a) 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. 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 of the collection year. During the initial term of this Agreement, the fee for this service will be $1.00 per statement. During the first and second renewal terms of this Agreement, the fee for this service will be the per statement rate approved by Commissioners Court for the applicable tax year, provided notice of that rate is provided to DISTRICT as described in Paragraph 7 of this Article VII. In the event COUNTY does not provide DISTRICT with said notice, the rate charged during the preceding term will apply. 2. At least 30 days, but no more than 60 days prior to April 1" of the collection year 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 1" of the collection year 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 that become delinquent on or after June 1" of the collection year, 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. Page 8 of 13 Special District Multi Year ILA 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, pursuant to Property Tax Code Section 26.07(0, mail corrected statements to the owner of each property. The fee for this service will be the same per statement rate described in Paragraph 2 of this Article VII. 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 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 31st of the tax year, 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. During the initial term of this Agreement, the "Total Cost" of providing all services described in paragraphs 1-5 above shall be the total of: $1.00 (the "per parcel rate") x the total number of parcels listed on DISTRICT's preceding tax year Tax Roll on September 30th of the tax year. During the first and second renewal terms of this agreement, the "per parcel rate" will be the per parcel rate approved by Commissioners Court for the applicable tax year, provided notice of that rate is provided to DISTRICT as described in Paragraph 8 of this Article VII. In the event COUNTY does not provide DISTRICT with said notice, the per parcel rate charged during the preceding term will apply. In the event that a rollback election as described takes place, COUNTY shall bill DISTRICT for the applicable programming charge, check processing fees, refunds paid, Page 9 of 13 Special District Multi Year ILA 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. 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 tax year is approved by County Commissioners' Court, and all entities are assessed the same per parcel collection rate. Following approval of the collection rate for each tax year, COUNTY will, at least sixty (60) days prior to the expiration date of the then -current term of this Agreement, provide DISTRICT with written notice of that rate. VIII. COUNTY agrees to remit all taxes, penalties, and interest collected on DISTRICT's behalf and to deposit such funds into the 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. Page 10 of 13 Special District Multi Year ILA 3. In anticipation of renewal of this Agreement, COUNTY further agrees that deposits will be made daily through September 30th of the collection 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. 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. IX. In the event of termination, the terminating 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 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. XI. Any and all written notices required to be given under this Agreement shall be delivered or mailed to the listed addresses: Page 11 of 13 Special District Multi Year ILA COUNTY: County Judge of Denton County 110 West Hickory Denton, Texas 76201 Telephone: 940-349-2820 DISTRICT: Trophy Club Municipal Utility District No. 1 100 Municipal Drive Trophy Club, Texas 76262 Telephone: 682-831-4600 XII. DISTRICT hereby designates Steven Krolczyk 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. XIII. 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. XIV. 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. Page 12 of 13 Special District Multi Year ILA 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, 22"d day of July 2019. COUNTY DISTRICT Denton County Texas 110 West Hickory Denton, Texas 76201 B Ho, ',fable Andy Eada County Judge ATTEST: Trophy Club Municipal Utility District No. 1 100 Municipal Drive Trophy Club, Texas 76262 BY: Ov/k Name: Grbgory Wilson Title: President, Board of Directors >ottttl" I1ttrti ATTEST: ,�oae , (v e""tr - BY: Juli Luke k—CAX -Name: Steve Flynn Denton County' 4 rk I Title: Secretary/Treasurer, Board of Directors APPROVED FORM AND CONTENT: (Jf1/6di�L _: ich!✓1Te French Denton County Tax Assessor/Collector APPROVED AS TO FORM: Assistant allrict Attorney Page 13 of 13 Special District Multi Year ILA