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Res 167-91 10/15/1991RESOLUTION NO. /O 7' V RESOLUTION OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A DEPOSITORY CONTRACT WITH THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. The City Manager be and is hereby authorized to execute a depository contract with the Wichita Falls Independent School District in accordance with the terms and conditions of said contract, the same attached hereto as Exhibit "A" and made a part hereof for all purposes. SECTION 2. The contract executed between the City and the School District dated November 8, 1989, providing for the designation of the City of Wichita Falls as the agent and instrumentality for collecting the taxes for the Wichita Falls Independent School District is hereby terminated, the same being substituted by the contract authorized by Section 1 hereof. SECTION 3 . It is hereby officially found and determined that the meeting at which this resolution is passed is open to the public as required by law and that public notice of the time, place, and purpose of said meeting was given as required. PASSED AND APPROVED this the 15th day of October, 1991. M A Y O R 649°. 64.111111.11..ir ATTEST: City erk e THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF WICHITA WHEREAS, the Texas Legislature has authorized governmental entities to contract with each other for the furnishing of governmental services that are mutually advantageous for the contracting parties; and, WHEREAS, the City of Wichita Falls has the necessary expertise, staff and equipment to provide the depository services hereinafter described. WITNESSETH: NOW THEREFORE, the parties hereto do hereby agree as follows: On this the day of 1991, the Wichita Falls Independent School District, hereinafter called the District, " the Wichita County Education District, hereinafter called "the CED," and the City of Wichita Falls, a municipal corporation, hereinafter called "the City," entered into the following agreement pursuant to the authority granted by Article 4413 ( 32C) , V.A.C.S. , known as the Texas Interlocal Cooperation Agreement Act. SECTION I. TERM This contract shall be effective on October 1, 1991, and shall continue in effect from year to year until either party terminates said contract by providing the other party written notice of termination. Such termination shall be effective on September 30th of the year in which such notice is provided. The City shall be responsible for providing the services required under this contract until such termination date. Upon termination, the City shall provide to the District and CED, without charge, copies of the District and CED' s current and delinquent tax records. Notwithstanding anything to the contrary, either party may give notice to the other party of the intent to cancel the contract in total by the giving of sixty 60) days written notice to the other parties hereto. 2 . SECTION II. SERVICES TO BE PROVIDED The City agrees to act as depository for the payment of ad valorem property taxes due the CED and the District, and perform the following responsibilities to the CED and the District: Submission of appraisal roll; Calculation of the tax; Preparation of current and delinquent tax rolls; Prorating of taxes; Issuance of tax receipts; Issuance of tax certificates; Remittance of funds collected to the CED and District institutional depositories. Nothing herein should be construed as designating the City Assessor and Collector of Taxes as the Assessor and Collector of Taxes for the CED and District, as authorized by Section 6. 24 of the Texas Property Tax Code. District and CED shall designate a suitable individual to perform the responsibilities and duties of Assessor and Collector of Taxes for the respective taxing entities, who shall register with the Texas Property Tax Board as an Assessor and Collector of Taxes. The CED hereby designates the Tax Assessor and Collector of the District as the person responsible for calculating the effective tax rate for the District taxing unit, as required by Section 26. 04 of the Texas Property Tax Code. The District shall provide the City Tax Assessor and Collector with the amount needed to pay principal and interest on debt and the amount needed to pay any contractual obligations for debt issued by the unit on behalf of another political subdivision, which amounts are required by law for calculation of the effective tax rate. The District shall also furnish the City Tax Assessor and Collector with the estimated fund balances required to be published with the effective tax rate. SECTION III. PAYMENT OF SERVICES It is further agreed that as consideration for the services herein provided by said City, the District and CED shall pay to the City fifty ( 50%) percent of the total direct and indirect costs to collect taxes for the City, District and CED, to be computed as follows: 1) As direct costs, the total approved budget for the City Tax Collection Office. 3 . 2 ) As indirect costs for administration and overhead support - ten ( 10%) percent of the approved budget for the City Tax Collection Office. 3 ) As indirect costs for data processing - six 6%) percent of the total approved budget for the City' s Data Processing Department. It is agreed that the said City Tax Assessor and Collector shall furnish a bond in the statutory amount of $25,000, or such greater amount as may be subsequently required by law; said bond to be payable to the Board of Trustees of the Wichita Falls Independent School District and Wichita County Education District, conditioned that said Collector will faithfully perform the duties and responsibilities outlined in this agreement, and will faithfully perform the duties imposed upon him by law. Said bond shall cover the period from October 1 through September 30 of each year this contract is in effect, and shall be executed by an approved surety company acceptable to the District and CED. The cost of such bond will be paid for by the District and CED. SECTION IV. REMITTANCE OF FUNDS COLLECTED The City shall remit all funds collected at the City offices to the District and CED' s institutional depositories as follows: 1) For all amounts in excess of $60,000, the Tax Collector will telephone the District and the CED of the amount, and will also notify the District' s bank to electronically transfer the money to the CED' s account by 10:00 o'clock a.m. 2) For all amounts in excess of $25,000, yet below $60,000, the Tax Collector will notify the District and CED of the amount and will notify the District' s bank to electronically transmit the money to the District' s account by 10: 00 o'clock a.m. of the next day. 3 ) During the slack tax collection periods, the Tax Collector will electronically transfer or issue a check when funds accumulate to a maximum of $15,000, or at the end of each week whichever is reached first) . Otherwise, District and CED tax collection are to be transferred daily based on the guidelines above. 4. 4) The City will make daily distribution of District and CED funds when the total funds available exceed $15,000 by 12:00 o'clock noon, or as soon as possible thereafter, so that the District can reinvest these funds the same day. 5 ) Interest earned by the City will also be prorated back to the District. SECTION V. REPORTS The City' s Tax Assessor and Collector shall report its daily receipts to the District and CED monthly, as well as whatever is needed to verify daily deposits. Said reports shall include year-to-date figures and shall also report tax roll adjustments. SECTION VI. AUDIT The City shall include in its annual audit an audit of the funds collected, cost, payments received from the District and CED, and expenditures for collection services. Such items shall be audited in the same manner as the City tax collections are audited. A copy of such portion of the District' s audit as applicable to the CED may be provided to the CED upon receipt by the District. SECTION VII. POLICY MATTERS The City shall deposit the taxes for the District and CED in the same manner and at the same time it collects its own taxes. Where taxes are owed to both parties on the same account, remittances will be recognized on an as tendered basis from the taxpayer. 1)The City shall be authorized to accept partial payments of current taxes on behalf of the District and CED. Such payments may be taken at the discretion of the Assessor and Collector, as authorized by Section 31.07 of the Texas Property Tax Code or its successor. 5 . 2) The City shall not be authorized to accept split payments of current taxes on behalf of the District and CED as authorized by Section 31. 03 of the Texas Property Tax Code. 3 ) The City shall not be authorized to accept discount payments of current taxes on behalf of the District and CED as authorized by Section 31.07 of the Texas Property Tax Code. 4) The City shall be authorized to accept payment of delinquent taxes, penalty and interest via an installment agreement which may be in writing and still not exceed thirty-six ( 36) months, as authorized by Section 33 .02 of the Texas Property Tax Code. 5) Any existing local option exemption, other than homestead, disability and elderly offered by the District will also apply to CED taxes collected by the City. 6) It is agreed that the City Tax Assessor and Collector may, in the name of said District, bring and prosecute any and all suits which may be found necessary for the collection of said District and CED taxes; but said Collector shall not have the power or authority to compromise or dismiss without first obtaining the consent of the Board of Trustees of the District. 7) Taxes not paid by February 1 of the year following the year the taxes are imposed shall be considered delinquent and subject to penalties and interest as follows: A. As of February 1, a six ( 6%) percent penalty charge shall be added to all delinquent accounts. Penalty charges shall increase at the rate of one ( 1%) percent per month until July, at which time a maximum penalty rate of twelve 12%) percent shall be imposed, as authorized by Section 33.01(c) of the Texas Property Tax Code. B. Interest shall accrue at the rate of one 1%) percent per month for each month or part of a month that a tax is delinquent, as authorized by Section 33 . 01(c) of the Texas Property Tax Code. 6. Between February 1 and July 1 of each year, the City Tax Office shall endeavor to collect taxes that have gone delinquent through normal office procedures. Accounts that remain delinquent as of July 1 may be forwarded to the Delinquent Tax Attorney for legal action at the discretion of the City Tax Office. Delinquent accounts do not automatically have to be forwarded to the Delinquent Tax Attorney if the City Tax Office is working the accounts.All accounts turned over to the Delinquent Tax Attorney shall have an additional fifteen ( 15%) percent collection penalty added to the total due, such fee to be turned over to the Delinquent Tax Attorney in reimbursement for his services in collecting delinquent taxes. SECTION VIII. ADMINISTRATIVE PROVISIONS The City prepareshallare and mail tax statements for theP District and CED on or about October 1 of each year, or as soon thereafter as it is practicable. The City shall retain all fees charged for the issuance of tax certificates. The District and CED hereby authorize the City to contract with an attorney for the collection of delinquent taxes due the District and CED and to take all steps necessary for compliance with Section 33 . 07 of the Texas Property Tax Code on behalf of the District and CED. SECTION IX. COLLECTION CONTRACTS WITH THIRD PARTIES If the City has contracted with any third party for the collection of its taxes, the provisions of this contract are made applicable to the contract so executed, and the District shall bear any additional costs incurred as a result of this contract. If the City chooses to contract with any third party for the collection of its taxes after the effective date of this contract, then it shall provide for the collection of the taxes of the District and the CED at the same time and in the same manner as its taxes are collected by the third party. 7. SECTION X. REFUNDS The District and CED expressly agree to retain a sufficient portion of its tax monies received to satisfy its legal obligation to refund taxes for any purpose authorized under the applicable laws of the State of Texas, and to remit such funds to the City' s Tax Assessor and Collector promptly upon notice from the City' s Tax Assessor and Collector. The City Tax Assessor and Collector shall pay any applicable refund from the monies of the District and CED remaining in City' s possession at the time that the requirement to make the refund arises. If sufficient monies are unavailable in the possession of the City Tax Assessor and Collector to make such refunds, the Collector shall immediately notify the District and CED of the necessity of remitting such monies as are necessary to make the required refund. Any additional interest incurred as a result of the District and CED' s failure to promptly remit such monies to the City' s Tax Assessor and Collector shall be borne by the District and CED. The District and CED designate the auditor of the City as their auditor for purposes of approving any refunds requiring the auditor by Section 31. 11 of the Texas Property Taxapprovalofanauypy Code. The District and CED authorize the Board of Trustees of the District to approve any refunds requiring the approval of the governing body by Section 31.11 of the Texas Property Tax Code. SECTION XI. WAIVER OF PENALTIES AND INTEREST The District and CED authorize the City Council of the City of Wichita Falls, Texas, to make all required determinations regarding the waiver of either penalties or interest under Section 33 .001 of the Texas Property Tax Code. SECTION XII. SEPARABILITY Should any portion of this contract be determined to be invalid for any reason, the remaining portions of the contract shall remain in force and effect as though the invalid portion were not contained in such contract. 8 . EXECUTED on the date and year first above written. CITY OF WICHITA FALLS By: James Berzina, City Manager ATTEST: City Clerk WICHITA FALLS INDEPENDENT SCHOOL DISTRICT By: Title: ATTEST: Secretary, Board of Education Wichita Falls Independent School District COUNTY EDUCATION DISTRICT By: Title: ATTEST: