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HomeMy WebLinkAboutRES 04-155 RESOLUTION NO. 04-155 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an amendment to the contract for Collection and Assessment Services between Jefferson County and the City of Beaumont. The amendment is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of July, 2004. 91'Sk a } �aataa }� b X �! - Mayor Evelyn M. Lord - ,4 y a AWar STATE OF TEXAS § COUNTY OF JEFFERSON § AMENDMENT TO CONTRACT FOR COLLECTION AND ASSESSMENT SERVICES WHEREAS, Jefferson County, Texas, hereinafter called "County," and the City of Beaumont, hereinafter called "City,"entered into a contract for Collection and Assessment Services on the 4th day of October 1982, a copy of which is attached hereto and made a part hereof for all purposes as Exhibit"A,"and the parties desire to amend that agreement; NOW, THEREFORE, Section 4.1 and Section 5 of the contract are hereby amended as follows: SECTION 4. PAYMENT 4.1 The City shall pay the County for the performance of the services specified above the sum total calculated by multiplying thirty-two cents($.32)for each account times the total number of accounts as shown on the City's tax roll as received from the Jefferson County Appraisal District. After the first year of this contract, County may increase the$.32 rate to a rate that does not exceed the most recent price of a first class postal stamp. The parties agree that such sum total is a reasonable fee for the services to be performed, and does not exceed the actual cost of assessment and collection of the City's taxes by the County. SECTION 5. REMITTANCE OF COLLECTION The taxes collected for the City shall be remitted weekly. However, when the taxes collected for the City during any given week equals or exceeds$50,000, County shall make Page 1 GARMMAGREEMENTS\TAX COLL x EXHIBIT "A" a remittance on the next working day following the day the taxes were collected. Remittances may be held based on the available collected funds in the County's depository. Collections may be withheld for pending supplemental change refunds received from the Appraisal District. The amended provisions supercede all prior oral and written agreements between the parties regarding Payment and Remittance of Collections as provided in Section 4.1 and Section 5 of the Original agreement. All other terms and provisions of the original Contract for Assessment and Collection Services shall remain in full force. This agreement is executed at Beaumont, Texas, on the day of 2004, by the City Council for the City and by the Commissioners' Court for the County. CITY OF BEAUMONT JEFFERSON COUNTY Kyle Hayes, City Manager Commissioners' Court Page 2 G:\RM\MAGREEMENTS\TAX COLL T E STATE OF TEXAS § CDCJNPY OF JEFFERSON § CONTRACT FOR ASSESSr= AMID COLLECTION SERVICES On this the ( day of 0�, 1982, Jefferson County, Texas, hereinafter called "County", and the City of Beaumont, hereinafter called "City", enter into the following agreement: SECTION 1. PURPOSE The parties to this agreement wish to have the assessment and collection of taxes for the City performed by the County. The parties enter into this contract pursuant to the authority granted by Section 6.24, Property Tax Code., and Tex. Rev. Civ. Stat. Ann. art. 4413(32c) (Vernon 1979). SECTION 2. TEE?m 2.1 This contract shall be effective on October 1, 1982. Thereafter, either party may terminate and cancel the contract by giving sixty (60) days written notice of cancellation to the other party. 2.2 In the event of cancellation, County shall furnish City a duplicate of all records kept for the collection of City's taxes so as to enable City to collect t'iose taxes. SECTION 3. SERVICE To BE PERFORbIED 3.1 The County shall collect the current ad valorem property taxes owing to the City, and, subject to the limitations of Section 8 hereof, shall collect delinquent ad valorem taxes awing to the City. The County further agrees to perform for the City all the duties required by the laws of the State of Texas for the collection of said taxes. 3.2 The County shall perform all the functions set out in the definition section of this contract. Specifically, the County agrees to prepare consolidated tax statements for each taxpayer. The tax statement shall include taxes owed to both the County and the City, or either, as the case may be. The County shall mail said tax statement to each taxpayer who awns property within the geographical boundaries of the City. 3.3 The City hereby designates the Assessor-Collector of Jefferson County as its tax assessor-collector for purposes of ccnPliance loth Chapter 26 of the Texas Property Tax Code, and Article VIII of the City'r Charter, as amended. In EXHIBIT 'A' addition, the parties agree that the assessor-collector of the County shall perform all the duties required by law of the tax assessor-collector of the City in regard to assessing and collecting ad valorem taxes. 3.4 The City agrees to promptly notify the County of the adoption of any residential homestead exemption not automatically imposed by law. Further, the City will promptly notify the County of the adoption of any of the provisions contained in Sections 26.011, 31.03, or 31.05 of the Property Tax Code, or of the adoption of any other provision under law which would affect the assessment or collection of taxes for the City. 3.5 The County agrees to mail tax statements by October 1 of each year, or as soon thereafter as practicable. 3.6 The County shall provide for taxes to be collected at the Courthouse in Beaumont. 3.7 The County shall furnish to the City the following: 3.7.1 A duplicate of the current tax roll showing: gross value as certified by the Appraisal Review Board of Jefferson County; exemptions; and the tax levy as calculated using the City's tax rate. The total tax levy shown shall equal the amounts shown on all tax statements mailed to taxpayers. This document shall be delivered to the City by October 31 of each tax year, or as soon thereafter as practicable. 3.7.2 A report showing delinquent taxes for each year as of September 30, as required for the City's audit. This shall be furnished by October 31 of each year, or as soon thereafter as practicable. 3.7.3 A taxes receivable summary each calendar month showing unpaid current taxes and unpaid delinquent taxes at the end of such calendar month. Each sun Ta y shall be furnished by the 10th day of the month following that to which the summary pertains, or as soon thereafter as practicable. 3.7.4 A monthly status report of collection activity. Each report shall be furnished by the 10th day of the month following that to which it pertains, or as soon thereafter as practicable. Each report shall show separately for current and delinquent taxes: the beginning of the month taxes receivable; less collections; plus or minus adjustments; to equal the month ending unpaid balance of taxes receivable. This shall be shown in two colurms, or in two (2) reports, on showing the month's activity and the other showing City fiscal year-to-date 2 activity. Each report shall include a reconciliation of collections to the cash transfer to City's Depositary for the month. Further, each report shall show the breakdown of collections into current taxes, current penalty and costs, delinquent taxes, delinquent panalty and costs, interest, and other tax related revenue. Further, each report shall show legal activity taken on City accounts during the month, including suits filed, judgments taken, judgments paid, and Sheriff's sales. 3.8 All annual reports of delinquent taxes required by 3.7 hereof, shall first be due in the year 1983 on the date stated, 3.9 The County shall mail a delinquent tax notice to each delinquent taxpayer by March I and again by July 1 of each year. SECTION 4. PAYMENT 4.1 The City shall pay the County for the performance of the services specified above the sum total calculated by multiplying twenty cents ($.20) times the total number of accounts as shown on the City's tax roll as received from the Jefferson County Appraisal District. The parties agree that such sine total is a reasonable fee for the services to be performed, and does not exceed the actual cost of assessment and collection of the City's taxes by the County. 4.2 The fee specified in the preceding paragraph shall be payable annually to the County not later than Januuary 31 of each year. 4.3 Should City fail to adopt a tax rate by September I or by the date the County adopts its tax rate, whichever should later occur, and should it be necessary because of the City's failure to so timely adopt a tax rate to mail an additional statement containing the City's taxes only, such additional statement and mailing shall be paid for by City. 4.4 October 1 is the beginning date of the County's fiscal year. On each anniversary date of this contract, unless sooner terminated as herein provided, the charge for the base fee and the fee for work shall be increased by the percentage of the "cost of living" wage increase provided County employees, if any, for the preceding fiscal year. SECTION 5. REMITTANCE OF COLiECTION 5.1 The money collected for the City each day shall be remitted to the City by the County before 2:00 p.m, of the following banking day. However, for any day or consecutive days that the balance of money collected for the City 3 equals $50,000.00 or less, the remitting may be postponed to the first day the balance exceeds $50,000.00. The money shall be remitted by direct deposit into the City's Depository. Each deposit shall be pro-rated between the General Fund and the Debt Service Fund on a basis provided by the City. 5.2 Cashiers collecting City taxes shall make a separate electronic record of taxes collected that are current from taxes collected that are delinquent and a copy of the daily cashier's report used as the basis for the transfer of funds shall be furnished to the City within three (3) working days. SECTION 6. BC miNG REQUIREMENTS 6.1 The City agrees to obtain a surety bond for the County assessor-collector acting in his capacity as assessor-collector for the City. Such bond shall be payable to the City, and shall be in the amount of $500,000.00. 6.2 The County shall obtain a faithful performance bond (executed by a surety company authorized to do business in Texas) guaranteeing the faithful performance of duties of all employees of the County Tax Assessor-Collector's office engaged in the collection, receiving, and disbursement of tax money and naming the City as joint obligee. City shall pay for any additional cost of naming City as joint obligee over the cost of naming County, only, as obligee. SECTION 7. MTSC EILANmUS 7.1 The City agrees to transfer to the possession and control of the County, without charge, copies of all records in possession necessary for the performance of the duties and responsibilities of the County pursuant to this contract. These records shall include all tax records, including delinquent tax rolls, or records available to the City. These records shall be in both hard copy and in outer tape format, and shall be conformed to the account numbers of the Jefferson County Tax Appraisal District upon delivery. 7.2 The County shall not be liable to the City on account of any failure to collect taxes nor shall the assessor-collector of the County be liable unless the failure to collect taxes results from some failure on his part to perform the duties imposed upon him by law and by this agreement. 7.3 Payments by the City for the services under this contract shall be made from current revenues available to the City. 4 7.4 The City may require an annual independent audit of the assessor-collector's accounts performed on behalf of the City by an auditor not regularly employed by the City or the County. Costs of such audit and copies thereof shall be paid exclusively by City. 7.5 In addition to the audit provided in 7.4 above, the City reserves the right to examine or audit the tax records of the County at its awn expense, 7.6 As a condition precedent to the County's duty to collect taxes under the first year of this contract, City shall first present to the County a balanced and verfied statement showing the 1981 year's total of taxes due, and the cumulative by year total of delinquent taxes due the City prior to the 1981 tax year. 7.7 The County will not collect its own taxes on any account prior to collecting the City's, unless required by law. 7.8 The County shall make no tax refunds of City taxes. 7.9 The County shall provide for a duplicate of all electronic records kept for the collection of City's taxes to be stored at a location separate from the Courthouse together with the electronic program necessary to maintain the records. The duplicate shall be rotated weekly to reflect current information and a log kept of such rotation. The City shall, at its own expense, provide the storage space and shall provide for transporting said records to and from the Courthouse. SBCTION 8. DELINQUENT TAX SUITS 8.1 The City authorizes the Office of the Criminal District Attorney of Jefferson County, Texas, or any other attorney designated by the Coinnissioners Court, to institute suits for the collection of delinquent taxes. The County shall assume responsibility for all delinquent tax suits of the City pending on the effective date of this contract in which no answer has been filed by any named defendant, and may choose to assume responsibility in those cases in which an answer has been filed. 8.2 In filing delinquent tax suits, County shall include in any petition and judgment all liens assessed by City for weed liens, demolition liens, trash liens, and street assessments, based upon infomation furnished by the City, and updated on the first of each month. However, the County shall not be liable to the City for the failure to include any such lien in either a tax petition or 5 judgment, and City agrees to defend County against the claim of any third person who claims that such lien was improperly included in any tax judgment, and shall hold the County harmless against any judgment rendered against the County for any such claim. SECTION 9. DEFINITIONS For purposes of this agreement, the terms "assessment" and "collection" shall include the following: calculation of tax using rate provided by the City; preparation of current and delinquent tax rolls; collection of current taxes and tax certificate fees; collection of delinquent taxes, penalties, interests and costs; and performance of duties required of the assessor by Section 26.04 of the Property Tax Code. The terms "assessment" shall not include those functions defined as "appraisal" by the Property Tax Code. This agreement is executed in Jeffersor. County, Texas, on the date and year first written above, by the City Council for the City of Beaumont and by the Conmissioners' Court for the County. City of Beaumont Jefferson County, Texas B �.� Ray Rile City Man ger —' Attest: 'rt e. $yk C erk- Ulm=-, ` Commissioners Court 6