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04-053 - R TOWN OF PROSPER, TEXAS RESOLUTION NO. 04-53 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS, HEREBY AUTHORIZING THE MAYOR OF THE TOWN OF PROSPER, TEXAS, TO EXECUTE A TAX COLLECTION SERVICES AGREEMENT BETWEEN THE TOWN OF PROSPER, TEXAS AND COLLIN COUNTY, TEXAS. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS: SECTION 1: The Mayor of the Town of Prosper, Texas, is hereby authorized to execute, on behalf of the Town Council of the Town of Prosper, Texas, a Tax Collection Services Agreement between the Town of Prosper, Texas, and Collin County, Texas, a copy of which is attached hereto as Exhibit "A" and incorporated herein for all purposes. SECTION 2: This Resolution shall take effect immediately upon its passage. RESOLVED THIS THE 11th day of May, 2004. Charles i ange , ayor ATTEST TO: /1.10(.64- Shanae Jenning Town Secretary 1744 she /?, .Z ?N Page 1 of 8 t NTY HfT V TAX COLLECTION SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 0l+ ' day of -rot (I , 20 b 4 by and between the County of Collin (hereinafter called "County"), a political subdivision of the gtratr, c , = ,i' 1 vows, ,f P-cso r (hereafter called 'Taxing Entity!'), a duly orgu-.i-�c a,'(r; :xItr , __ e_- _- -__ under t :e laws of the State of Texas, e,x'; -.cc,r herein by and Lr1ruU, is c,.: authorized officials. RECITALS 1. The parties to this agreement wish to consolidate the collection of property taxes into one agency, the Collin County Tax Assessor Collector.. 2. The parties enter in this Agreement in order to eliminate the duplication of the existing system for collection of taxes and to promote governmental efficiency. 3. Therefore, under the authority of sections 6.23 and 6.24,Texas Property Tax Code Ann. And the Interlocal Cooperation Act,Texas Rev. Civ. Stat. Ann. art 4413 (32c)the parties agree as follows: SECTION 1 DEFINITIONS 1.01 Tax Collection Services. The term 'Tax Collection Services" shall include preparation and mailing of tax bills for property taxes assessed by the Taxing Entity, correction of lerical errors in tax rolls, collection of property tax liabilities, maintenance of a list of delinquent taxes, and issuance of refunds. Tax Collection Services do not include appraisal of property. 1.02 Current Taxes. The term "Current Taxes" shall mean those property taxes legally due and payable to the Taxing Entity without penalty and interest. 1.03 Delinquent Taxes. The term "Delinquent Taxes" shall mean the property taxes that have not been paid to the Taxing Entity on or before January 31 of any given year and on which penalty and interest are now due. Page 2 of 8 SECTION 2 TERM 2.01 Term. The term of this agreement shall commence on the Fb day of (_tj , 20 C and shall continue in full force and effect until September 30, 20 OS . Thereafter,this agreement shall automatically renew annually for an additional one (1) year term without the necessity of any action by the parties. Tithe-party may elect not to renew this Agreement by giving writte rv"ce ni,pert•0'40) o' to the r:, i .1t the original term or any renewer ter.'... 2.02 Termination. Either party may terminate this Agreement by giving ninety(90) days written notice to the other party. SECTION 3 SERVICES 3.01 Services to be Performed. The County agrees to provide Tax Collection Services to the Taxing Entity. 3.02 Tax Bills. By September 1 of each year or as soon as practicable thereafter, the Taxing Entity shall provide the County with a copy of the tax rate adopted for that year. The County agrees to prepare consolidated tax bills for each taxpayer. The tax bill shall include taxes owed to all taxing units to which the taxpayer owes taxes, except those units which have not been contracted with the County for Tax Collection Services. The County will mail such tax bills to the property located within the Taxing Entity by October 1 of each year or as soon as practicable. SECTION 4 PAYMENT 4.01 Rate of Payment. The Taxing Entity shall pay the County for Tax Collection Services at a rate of one dollar($1.00) per non-exempt parcel per year for parcels on the Taxing Entity's tax roll during the term of this Agreement. 4.02 Method of Payment. The County shall withhold from the taxes collected under this agreement the amount of money necessary to pay for Tax Collection Services at the rate indicated in Section 4.01 from the December collections. Page 3 of 8 The Taxing Entity shall not be entitled to receive any taxes collected for a tax year until the County has withheld the total amount of compensation under Section 4.01 for that year. 4.03 Proration of Payment. If this Agreement is terminated during the original term or any annual term prior to the time that the County has withheld sufficient funds pursuant to Section 4.02 to aggregate the amount of payment set forth,in Section 4.01. the County's compensation for Tax Collectic^ Services for the original term •ra c E =te' �� (.), he ""tio lil. J t n'Js '�itr;helo b'� cr-, � .n .. d term shall equal the gr�.. Co1,,;.y for the original term or the 1enel^' 'arm :;0.to^f terriineticn, and (b) a prorata portion of the amount set forth in Section, 4.01, based on the number of days in the original term or renewed term prior to termination. SECTION 5. REMITTANCE OF COLLECTION The taxes collected by the County for the Taxing Entity shall be remitted to the Taxing Entity after the proper amount of payment as set out in Section 4 and any taxpayer refunds have been withheld. Taxes collected shall be remitted to the Taxing Entity by the Tuesday following the calendar week in which they are processed and credited by the County Tax Office. SECTION 6. ADMINISTRATIVE PROVISIONS 6.01 Records. The Taxing Entity, or its representatives designated in writing, upon reasonable notice is authorized to examine the records to be kept by the County in the performance of this Agreement at mutually convenient times and intervals. Such books and records will be kept in the offices of the Collin County Tax Assessor Collector. 6.02 Taxing Entity Records. The Taxing Entity 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 Taxing Entity, as required by the County Tax Assessor Collector. Page 4 of 8 6.03 Surety Bond. If the Taxing Entity requires the County to obtain a surety bond for the Tax Assessor Collector, the Taxing Entity agrees to pay the premium for such bond. 6.04 Audits. The County, upon reasonable notice, agrees to allow an audit of the tax records at a mutually convenient time. The expense of such an audit shall be paid for by the Taxing Entity requesting the audit. A copy of the audit results he furnished to the County. 6.05 Dernsits o1 TP—as. 1'ie County ?grecs to deposit taxes collected Linder this Agreement into such depository as is designated by the Taxing Entity in writing. SECTION 7. ROLLBACK AND CORRECTED BILLING SERVICES In the event that the Taxing Entity's tax rate is rolled back or otherwise changed after the County begins collections for the Taxing Entity in any given year,the County will continue to act for the Taxing Entity in providing refunds to taxpayers or sending corrected billings only if the Taxing Entity assumes all additional costs. These costs are in addition to the payment required for the Tax Collection Services provided under Section 4 of this Agreement and shall equal one dollar ($1.00) per non-exempt parcel per year for each parcel on the tax roll for which a refund or corrected billing is issued. Such costs shall be withheld by the County from tax collections in the same manner as set out in Section 4. In the event that costs under this Section 7 cannot be satisfied from tax collections, the Taxing Entity agrees to pay for services provided under this section within 30 days of receipt of a bill from the County. The Taxing Entity agrees that any payments that it is required to make under this section shall be made out of the Taxing Entity's current revenues. SECTION 8. REFUNDS Authorized refunds to property owners will be made on the same check for all taxing units contracting for Tax Collection Services. Circumstances on which refunds may be based include, but are not limited to, late exemption claims, clerical errors, and overpayments. The amounts refunded by the County for a Taxing Entity shall be paid by the County from tax collections on hand for the Taxing Entity for the year for which the refunds are made after the County's Page 5 of 8 compensation is withheld pursuant to Section 4 of this Agreement. If excess tax collections for the Taxing Entity in the County's possession are insufficient to pay for a refund, the County shall notify the Taxing Entity of the deficiency, and the deficiency amount shall be paid by the Taxing Entity to the County within seven (7) days of notification of the amount due. The County shall not be obligated to pay a refund unless it has sufficient excess Taxing Entity tax collections in its possession to pay the refund or the Taxing Entity has paid to the County sufficient funds to co. tt lc d'ficiency. The Taxing Entity agrees that any payments tha' rea..lirc:' tc maKe shut; ue made out of the Taxing Entitys current re,i6nye.3. The Cour,'" has, ,r r .:on of paying the refund and deducting the balance of the payment from future collections on behalf of the Taxing Entity. SECTION 9. MISCELLANEOUS PROVISIONS 9.01 Liability. Any civil liability relating to the furnishing of services under this Agreement shall be the responsibility of the Taxing Entity. The parties agree that the County shall be acting as agent for the Taxing Entity in performing the services contemplated by this Agreement. The Taxing Entity shall hold the County free and harmless from an obligation, costs, claims,judgments, attorneys' fees, and other such liabilities arising from or growing out of the services rendered to the Taxing Entity pursuant to the terms of this Agreement or in any way connected with the rendering of said services, except when the same shall arise because of the willful misconduct of culpable negligence of the County, and the County is adjudged to be guilty of willful misconduct or culpable negligence by a court of competent jurisdiction. 9.02 Controlling Law. This Agreement shall be deemed to be made under, governed by, and construed in accordance with, the laws of the State of Texas. 9.03 Sovereign Immunity. It is expressly understood and agreed that, in the execution of this Agreement, neither the County nor Taxing Entity 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. Page 6 of 8 9.04 Amendments. This Agreement shall not be amended or modified other than in a written agreement signed by the parties. 9.05 Notices. (a) 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, r' h proper postage prepaid or when ds,iivered in person. kb, F,l communications provided for in this Acl, shall b aidre;se; follows: (i) if to the County, to: County Judge Collin County Courthouse 210 South McDonald Street McKinney,Texas 75069 With a correspondence copy to the Tax Assessor Collector, 1800 North Graves Street, Suite 170, P.O. Box 8006, McKinney, Texas 75070-8006. (ii) if to the Taxing Entity, -I-• h of f p fob • w K117: or to such person at such other address as may from time to time be specified in a notice given as provided in this Section 9.05. 9.06 Parties Bound. This Agreement may not be assigned and shall be binding upon the parties, their heirs, executors, legal representatives, and successors. 9.07 Copies. This Agreement is executed in multiple copies, any one of which, or a true copy thereof, shall have the same evidentiary value. 9.08 Integration. It is understood and agreed that the entire agreement of the parties is contained herein and that this Agreement supersedes all oral agreements and Page 7 of 8 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. 9.09 Severability. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause or phrase of the Agreement is for any reason held to be contrary to law or contrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of he A;'e ieid. HC'Neww:r, upon the occurrence of such event either i;:'.tj`? mOy tni;, ©.grr'er,ent forthwith, upon the delivery of writtcli nottcr.-. o termination to the other party. 9.10 Captions. The headings to the various sections of this Agreement have been inserted for convenient reference only and shall not modify, define, limit or expand the express provision of this Agreement. 9.11 Obligations of Condition. All obligations of each party under this Agreement are conditions to further performance of the other party's continued performance of its obligation under the Agreement. 9.12 Exclusive Right to Enforce This Agreement. The County and the Taxing Entity have the exclusive right to bring suit to enforce this Agreement, and no other party may bring suit, as a third-party beneficiary or otherwise, to enforce this Agreement. EXECUTED at McKinney, Texas on the day and year first written above. "COUNTY' COLLIN COON AS By: Title: County Judge of Collin Cou ty Date: ��� Page 8 of 8 `TAXING ENTITY' By:Title: aV 4OVt4S f h'V ISWClv1_Q er V Date: _4497; `TAX ASS- SOR Title: Tax Asses Coll ctor of C• in County Date: /e Tax Collection Services Agreement.doc