HomeMy WebLinkAbout020693 RES - 06/13/19891N X
A RESOLUTION
AUTHORIZING THE EXECUTION OF A A CONTRACT WITH NUECES COUNTY
FOR THE COLLECTION OF THE CITY'S AD VALOREM TAXES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. That the City Manager is hereby authorized to execute a
contract with Nueces County fcr the Lo'iecL'on of the City's ad valorem taxes,
all as more fully set forth in the contract, a substantial copy of which is
attached hereto and made a part hereof, marked Exhibit "A."
ATTEST:
City Secretary
APPROVED:
1L<<-ii[t_
MAYOR i
THE CITY OF CORPUS CHRISTI, TEXAS
DAY OF TZciv42_ , 1995
HAL GEORGE, CITY ATTORNEY
208HG112.res
MICROR L ED
STATE OF TEXAS
COUNTY OF NUECES
AGREEMENT FOR AD VALOREM TAX COLLECTION SERVICES
THIS AGREEMENT made and entered into this day of
, 1989, by and between the County of Nueces
(hereinafter called "County"), a political subdivision of the
State of Texas and the City of Corpus Christi (hereinafter called
"City") duly organized and existing under the laws of the State
of Texas, each acting herein by and through its duly authorized
official.
WITNESSETH:
WHEREAS, the parties to this agreement wish to consolidate
the collection of their respective ad valorem property taxes into
one agency, i.e., the Tax Assessor -Collector of the County of
Nueces; and
WHEREAS, the parties enter into this agreement in order to
eliminate the potential duplication of the existing system for
collection of taxes and to promote governmental efficiency; and
WHEREAS, the parties enter into this agreement pursuant to
the authority granted by Sections 6.23, 6.24, 6.30, TEXAS
PROPERTY TAX CODE, and TEXAS REVISED CIVIL STATUTES ANNOTATED
article 4413 (32c), known as the Interlocal Cooperation Act;
NOW, THEREFORE, for purposes stated herein, it is mutually
agreed as follows:
I. DEFINITIONS
"Collection" is defined as assessment, collection,
disbursement, and any other function associated with levying and
collecting current and delinquent taxes as required by Texas
Property Tax Code.
"Current taxes" are defined as ad valorem property taxes
legally due and payable without penalty and interest.
"Delinquent taxes" are defined as ad valorem property taxes which
have not been received by the County on or before January 31st of
any given tax year and on which penalty and interest are due.
II. REGULATIONS AND LAWS
This Agreement shall be subject to all rules, regulations
and laws applicable thereto passed or promulgated by the United
States of America, State of Texas, or any governmental body or
agency having lawful jurisdiction or any authorized
representative or agent of them.
605HG157.agr.dv 1
III. PERFORMANCE
1. Effective from and after August 1, 1989, the County of
Nueces acting by and through its Tax Assessor -Collector and the
County Property Tax Collections Activity shall act as Tax
Assessor -Collector and collect ad valorem taxes for the City of
Corpus Christi under the provisions of Sections 6.23(a)(4) and
6.24, Texas Property Tax Code, for a term of three (3) years
commencing on August 1, 1989, and ending July 31, 1992. The term
of this contract may be extended beyond the original three year
term by mutual consent, to allow for additional time to complete
negotiations for a new contract or extension of the present
contract.
2. The County Tax Assessor -Collector shall have full
authority, within the terms of this contract, and shall assess
all of the real and personal property, in accordance with the
laws pertaining thereto, located within the boundary of the City
subject to taxation. The County Tax Assessor -Collector is
authorized and directed, and shall vigorously collect all current
and delinquent taxes of the City, including taxes previously
assessed by the City. The collection of said taxes, both current
and delinquent, shall be done in accordance with the Texas
Property Tax Code and all other laws or regulations pertaining to
property tax collections. In the event any provisions of this
contract are inconsistent with the requirements of the law, the
requirements of the law shall control, and the Tax
Assessor -Collector shall discharge the duties in accordance
therewith.
3. The County Property Tax Collection Activity shall
identify all property accounts located within the Tax Increment
District Reinvestment Zone No. 1 (Zone) for all taxing units
participating in the Zone. The County Property Tax Collection
activity shall collect all property taxes within the Zone in
accordance with the terms and conditions of the establishment of
the Zone. Said property tax collections shall be remitted to the
City and identified separately from other property tax
collections. The following is a partial listing of required
reports:
1. Comparison of Values - Present year to Prior
2. Analysis of Tax Collections Distribution
3. Reports necessary to Annual Report
4. RIVZ Levy Distribution
5. Monthly Collections Reports
All reports requested must conform to the per parcel cost
factors of this contract. If additional expense is incurred by
the County in providing these reports, the City will reimburse
this cost.
605HG157.agr.dv 2
4. This contract shall be for a term of three (3) years,
but each of the parties hereto reserves the right to terminate
this contract any time during the term of this contract by giving
notice as provided by this contract. If notice of cancellation
is given between January 1 and June 30 of any given year, the
effective date of cancellation for assessment purposes is the
following January 1st. The effective date of cancellation for
the purpose of tax collections is the July 31 following the
effective date of cancellation for assessment. If notice is
given between July 1 and December 31 of any given year, the
effective date of cancellation for assessment purposes is October
1 of the following year. The effective date of cancellation for
collection purposes is July 31 of the year following the notice
date.
For example, if notice of cancellation is given on April 30,
1989, the effective date of cancellation is January 1, 1990, for
assessment purposes and July 31, 1990, for collection purposes.
Likewise, if notice of cancellation is given on October 31, 1989,
the effective date of cancellation is October 1, 1990, for
assessment purposes and July 31, 1990, for collection purposes.
Until such respective effective dates of cancellation are
initiated, the assessment and collection of the City's taxes by
the County shall be continued as here provided. In all cases,
the County will be duly compensated by the City for all services
performed.
5. In the event of termination of this contract, either by
withdrawal by either party or the failure to agree on extension
of agreement beyond the three-year period, a magnetic tape of
property tax data pertaining to property within the City shall be
prepared by the County and delivered to the City with the cost of
such preparation being part of the cost of services provided by
this contract.
IV. SERVICES TO BE PERFORMED
1. The County shall vigorously collect current and
delinquent ad valorem property taxes owing to the City. The
County further agrees to perform for the City all the duties
relating to the collection of ad valorem taxes for the City
provided by the laws of the State of Texas.
2. The County shall perform all the functions set out in
the Definitions section of this Agreement. The County agrees to
prepare consolidated tax statements for each taxpayer. The
County shall mail said tax statements to each taxpayer or
authorized agent on property within the City. The County shall
collect delinquent taxes in accordance with accepted collection
practices.
605HG157.agr.dv 3
3. The City hereby designates the Tax Assessor -Collector of
the County of Nueces as its tax collector for all purposes under
the Texas Property Tax Code.
4. The County shall supply the City with monthly and annual
reports as required by the State Property Tax Code and the State
Property Tax Board. Additional requests for reports by the City
must be made in writing; must allow sufficient time for adequate
response; and must conform to cost factors of this contract. The
monthly and annual reports shall include as a minimum the
following information: total tax collected including penalty and
interest, discount, refunds, cumulative collections, less
discounts and any other information as required by the State
Property Tax Code or State Property Tax Board. The City may
request additional reports as it may require at its cost.
5. The County will prepare an annual property tax
collection activity operational budget which will include all
expenditures incurred in the property tax collection process for
the previous year. Copies of this work budget will be made
available to representatives of the Consolidated Property Tax
Advisory Council and will be used as basis for joint independent
audits of the property tax collection operation and for
establishing the following years "per parcel" costs.
6. The County will apply equal effort in the assessment and
collection of current and delinquent property taxes for the
parties to this Agreement. The County Property Tax Collection
Activity will not show bias toward any taxing unit for which it
collects current and delinquent property taxes.
7. The County will permit the taxpayer, in the event
payment of less than the consolidated bill is tendered, to apply
the payment as the taxpayer desires, in compliance with State
law. In the absence of the expression of any preference as to
application of payment, the payment will be applied in compliance
with State law.
8. The County will obtain written approval from the City's
Director of Finance or his designee before penalty and interest
is waived, either partial or in whole, on any City account. Any
waiver of penalty and interest being considered must establish
that the delinquency was caused by a direct action or inaction of
the Tax Office as required by the Texas Property Tax Code.
9. The County will limit the time frame allowed for
installment payment agreement on delinquent property taxes owing
to the City to no more than six months. Written approval must be
obtained from the City's Director of Finance or his designee for
any deviations.
605HG157.agr.dv 4
10. The County will refrain from seizing and/or selling any
property pertaining to the City Tax Roll, having a homestead
designation, for payment of delinquent taxes.
11. Interest payments required as a result of untimely
processing of refunds are not considered reimbursable expenses.
V. PAYMENT
1. Amount of Payment
The City agrees to pay the County an amount determined by
dividing the Tax Collection Activity budget by the number of
parcels within the County which for the initial year is $0.93 per
parcel for all parcels on the City's certified tax roll that are
located in Nueces County. This fee is established as a
first-year estimate by which the consolidation process will be
initiated. It is expressly understood herein that included
within these first year $0.93 per parcel fees, are
hardware/software costs essential for consolidation and which
will be shared equally by all using entities. The County agrees
to accept recommendations from using entities for, and further
agrees to resolve with first-year entities, a method that will
equitably recoup for all first-year using entities, a fair share
apportionment of initial hardware/software costs, which will be
charged to entities that enter the property tax consolidation
process in subsequent years. At the end of the first collection
year, the County agrees to analyze property tax collection
expenditures to determine "actual per parcel" costs. A copy of
this analysis will be provided to the City which will be
authorized to examine source data to confirm "actual per parcel"
costs quoted in the County analysis. The County will reimburse
to the City its proportionate share of unspent funds which are
defined as those funds which were budgeted but not spent or
committed by valid contract during the County's fiscal year. The
County also agrees to reimburse to the City, questioned charges
which are defined as those costs charged to the property tax
collection process but determined by independent audit to be
inappropriately charged to the tax collection process. The cost
of this independent audit will be included in the annual budget
for the Tax Collection Activity.
It is recognized that Nueces County is but one unit of
government and the Nueces County General Fund, Debt Service and
Farm -to -Market taxes are levied, budgeted and spent only by the
Nueces County government. It is agreed that for tax year 1990
and subsequent years Nueces County shall be considered as one
unit with one county -wide total of parcels within that
consolidated tax roll used as the budget denominator to compute
the "per parcel" cost under this Agreement.
605HG157.agr.dv 5
2. Method of Payment
The City will pay at the end of each month, $0.93 per parcel
for each parcel collected during that month. The County will
include the number of accounts collected in a monthly report to
the City. By July 31st of each collection year, the City will
remit to the County the balance of fees for parcels identified in
the City's current year tax roll but which have not been thereby
collected.
3. Source of Payment
Payments by the parties for services under this Agreement
shall be made from current revenues of the parties.
VI. REMITTANCE OF COLLECTION
1. Current and delinquent taxes collected for the City
shall be deposited into the City depository when practicable
within 24 hours of collection, however, under no circumstances
will the deposit of taxes collected be made later than 48 hours
from the time of collection.
2. County agrees to certify to the City in a manner
approved by the City that all deposits in the County's depository
shall be fully collateralized in accordance with the appropriate
law requirements for the County. All refunds and amounts
applicable for returned checks will be withheld by the County
from current collections and will be annotated on the appropriate
report.
VII. PERFORMANCE STANDARDS AND REQUIREMENTS
County agrees to make every effort to collect 87 percent of
the net collectible of the current ad valorem taxes assessed and
levied on behalf of the City by February 1 of each year and 94
percent of the net collectible ad valorem taxes assessed and
levied on behalf of the City measured over the City's fiscal
year.
VIII. ADMINISTRATIVE PROVISIONS
1. All expenses incurred by the County for the collection
of taxes shall be clearly kept on the appropriate books and
records. The City or their designated representative, after
notifying the County in writing, is authorized to examine the
records to be kept by the County at such reasonable times and
intervals as the City deems fit.
605HG157.agr.dv 6
2.(a) The County agrees to establish a "Consolidated
Property Tax Advisory Council" of property tax collection service
users. The Consolidated Property Tax Advisory Council will be
appointed and will consist of one representative appointed by
each of the following entities, if participating in the County
Property Tax Collection Activity.
- City of Corpus Christi
- Corpus Christi Independent School
District
- Corpus Christi Junior College District
- Nueces County
- One representative appointed for all other
participating entities.
The Advisory Council will recommend the independent auditor
to be selected. The Advisory Council is authorized to review the
total operation of the County Property Tax Collection Activity
including the preliminary budget of the County Property Tax
Collection Activity and make any recommendations for change and
for improvement to the Nueces County Tax Assessor -Collector. The
Advisory Council will meet, at minimum, on a quarterly basis or
as often as required.
The chairman of this council will be the County Tax
Collector. The Council will be authorized to preview the
composition of costs by which the County will set the "per
parcel" fees for the following year. The Council will further be
authorized to submit recommendations pertaining to "per parcel"
costs to the County governing authority. The County agrees to
request that such recommendation be included in the agenda of the
Commissioners' Court.
(b) The parties hereto mutually agree to establish a
subcommittee of the hereinabove created Advisory Council to
consist of the principal attorney representing the County, the
City, and the Corpus Christi Independent School District, and the
Corpus Christi Junior College District known as the Delinquent
Tax Attorney Advisory Committee. This committee shall meet at
least quarterly and give advice to the County and the Advisory
Committee regarding the collection of delinquent taxes and make
recommendations on the selection of the Delinquent Tax Attorney
and the review of the delinquent tax collection program. The
County Commissioner's Court will select the delinquent tax
attorney.
3. In the case that the City changes or amends any portion
of the data submitted to the County, after the County begins
processing such data for collection of the City's taxes, the City
will pay the additional costs resulting from such changes and/or
amendments. Such cost shall be paid by the City.
605HG157.agr.dv 7
IX. MISCELLANEOUS PROVISIONS
1. The City agrees to transfer to the possession and
control of the County, without charge, copies of all records
necessary for the performance of the duties and responsibilities
of the County pursuant to this Agreement. These records shall
include all tax records, including tax rolls or records available
to the City. Transfer and format costs shall be incurred by the
City.
2. The County shall not be liable to the City for any
failure to collect taxes nor shall the County Tax Assessor -
Collector be liable unless the failure to collect taxes results
from willful or intentional failure on his part to perform the
duties imposed upon him by law and by this Agreement.
3. Following the first regularly scheduled meeting in
September of the City's governing authority, and not later than
September 12th of each year, if the City has not established the
tax rate as required by law, the City will pay the costs of
mailing its tax bills for that year. If such a delay creates a
condition that requires the County to isolate handling of the
City's tax collection data, the City will pay the additional
costs of special handling.
4. Authorized refunds to property owners will be made on
the same check for all taxing units contracting for assessment
and collection services. Such refunds include, but are not
limited to, late exemption claims, clerical errors, overpayments,
etc. The amount of the City's refund shall be deducted from
current receipts or, if none are available, such refunds will be
remitted by the City to the County within seven (7) days of
written notification of such sums due.
5. The County will make a reasonable effort to assure the
charge for services to the City shall never increase by more than
five (5%) percent from any one year to the next year.
X. DELINQUENT TAXES
1. Pursuant to Section 6.24 of the Texas Property Tax Code,
the City hereby authorizes the County by and through the County's
Tax Assessor -Collector to collect delinquent taxes for the City
as provided herein.
2. The County of Nueces is authorized to contract for the
employment of an attorney to enforce the collection of delinquent
taxes pursuant to Section 6.30 of the Texas Property Tax Code.
Said attorneys shall have full authority to represent the City
within the terms of said contract. The County and City, herein
agree, that selection of Delinquent Tax Attorney firms must
605HG157.agr.dv 8
exclude any attorney employed under the umbrella of either
government entity within one year of selection.
XI. SOVEREIGN IMMUNITY
It is expressly understood and agreed that, in the execution
of this Agreement, neither the County nor City waives or shall be
deemed hereby to waive any immunity or defense that would
otherwise be available to it against claims arising in the
exercise of governmental powers and functions.
XII. TERMINATION
This Agreement shall continue in full force and effect from
year to year until July 31, 1992 or such time as either party
hereto gives written notice of cancellation as provided by
paragraph III. (4).
XIII. AMENDMENTS
Any amendments, alterations, deletions or waiver of the
provisions of this Agreement shall be valid only when expressed
in writing and agreed to by official action of the governing
bodies of both parties, and will be effective only if they do not
adversely affect the prompt fulfillment of contract obligations.
All amendments concerning or affecting an increase in the amount
of payment or costs under this Agreement shall be effective only
if they are agreed upon on or before July 1 of the year in which
they are to become effective.
XIV. GENERAL PROVISIONS
1. Cost Containment
Increases to the property tax collection working budget
which will be annually previewed by the Consolidated Property Tax
Advisory Council, must be predicated on budget items essential to
the property tax collection operation. All future increases will
refer to the "per parcel" costs of the prior year contract. The
County will make a reasonable effort to assure the charge for
services to the City shall never increase by more than five (5%)
percent from any one year to the next year.
2. Notices
Except as otherwise provided in this Agreement, all notices
required or permitted herein shall be in writing and shall be
deemed to be delivered when deposited in the United States mail,
postage prepaid, registered or certified mail, return receipt
requested, to the party's office or usual mailing address.
605HG157.agr.dv 9
3. Parties Bound
This Agreement shall be binding upon the parties, their
legal representatives, successors, and assigns.
4. Copies
This Agreement is executed in multiple copies, any one of
which, or a true copy thereof, shall have the same evidentiary
value.
5. Completeness
It is understood and agreed that the entire Agreement of the
parties is contained herein and that this Agreement supersedes
all oral agreements and negotiations between the parties relating
to the subject matter hereof as well as any previous agreements
presently in effect between the parties relating to the subject
matter hereof.
6. Severability
The provisions of this Agreement are severable. If any
paragraph, section, subdivision, sentence, clause, or phrase of
this Agreement is for any reason held to be contrary to the law
or contrary to any rule or regulation having the force and effect
of law, such decision shall not affect the remaining portions of
the Agreement. However, upon the occurrence of such event,
either party may terminate this Agreement by giving the other
party thirty (30) days written notice.
IN WITNESS WHEREOF these presents are executed by authority
of the governing bodies of the respective parties hereto binding
the parties effective August 1, 1989.
ATTEST: CITY OF CORPUS CHRISTI
By
Armando Chapa Juan Garza
City Secretary City Manager
APPROVED AS TO LEGAL FORM THIS
F. Hal George
City Attorney
605HG157.agr.dv 10
ATTEST: COUNTY OF NUECES
By
Secretary Robert N. Barnes
County Judge
APPROVED AS TO LEGAL FORM THIS
DAY OF , 1989
Attorney for Nueces County
Ramiro R. Canales
Nueces County, Tax
Assessor -Collector
605HG157.agr.dv 11
99.066.01
Corpus Christi, Texas
day of �(.,� l l , 198
The above resolution was passed by the following vote:
Betty N. Turner it( ,
David Berlanga, Sr. (7/c
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr. (I
: