R2004-058 04-26-04
RESOLUTION NO. R2004-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE ADDITION OF A COLLECTION PENALTY
ASSOCIATED WITH THE COLLECTION OF DELINQUENT PROPERTY
TAXES.
WHEREAS, City of Pearland wishes to defray its costs of collection, as
authorized by Tex. Tax Code, Section 33.07 and 33.08, that it incurs under a
contract for collection of delinquent property taxes between said City of Pearland
and a private law firm entered into pursuant to Tex. Tax Code, Section 6.30; and
WHEREAS, under said Sections 33.07 and 33.08, the governing body of City
of Pearland is empowered to authorize the addition of a collection penalty in an
amount that does not exceed the amount of the compensation specified in the
contract with the private law firm; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the recitals set forth in this resolution are true and correct.
Section 2. (a) An additional penalty on delinquent taxes for tax years 2003
and subsequent years is hereby authorized and imposed, as provided by Section
33.07, Tex. Tax Code, in the amount of twenty percent (20%) of the delinquent tax,
penalty and interest if the tax becomes delinquent on or after February 1 of a year
but not later than May 1 of that year and remains delinquent on July 1 of the year in
which the tax becomes delinquent; and
(b) An add itional penalty on delinquent taxes for tax years 2003
and subsequent years is hereby authorized and imposed, as provided by Section
33.08, Tex. Tax Code, in the amount of twenty percent (20%) of the delinquent tax,
penalty and interest if the tax becomes delinquent on of after June 1 under Section
26.07 (F), 26.15(E), 31,03, 31.031, 31.032, or 31.04, Tex. Tax Code.
RESOLUTION NO. R2004-58
PASSED, APPROVED and ADOPTED this the 26th day of ADri 1
A.D., 2004.
~~J1~
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
~I(~~
DARRIN M. COKER
CITY ATTORNEY
Michael J. Siwierka
Partner
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
ATIORNEYS AT LAW
P.O. BOX 3064
HOUSTON, TEXAS 77282-3064
Writer's Direct Dial (713) 844-3466
Fax Number (713) 844-3511
April 20, 2004
Mr. Bill Eisen, City Manager
Mr. Darrin Coker, City Attorney
City Of Pearland
Delivery by E-Mail Only
RE: Collection Contract Between City of Pearland and Linebarger, et al.
Gentlemen:
It has been a pleasure being your delinquent tax attorney for the past ten (10) years. I am
looking forward to continuing as the Partner in charge of our collection efforts on behalf of
the City of Pearland.
Our contract with the City expires on May 31, 2004. I am asking that the City renew our
contract in advance so we can continue providing the City of Pearland with the quality legal
representation and collection services that has established the City of Pearland as the best
collected taxing entity in Brazoria County. Upon renewal, I will remain as the lead attorney
for Pearland, and Ms. Teri Zema will continue as your overall delinquent tax collection
manager. Teri is primarily responsible for developing our collection plan for the City of
Pearland. She is the person your delinquent taxpayers interact with, as does your Tax
Assessor-Collector.
The proposed form of the contract has changed, and I have included our last contract for
comparative purposes. The term remains at two years, and the fees remain the same except
for delinquent 2003 taxes that will be turned over to us for collection on July 1, 2004. The
penalty we are asking the City to adopt is 20%. This penalty is an add-on penalty that is
borne by the delinquent taxpayers. The penalty we have been working under has been 15 %,
and will remain at 15% for all existing delinquent taxes my firm is currently charged to
collect (taxes turned over to us for collection prior to July I, 2004). We are seeking this
change from 15% to 20% to harmonize the penalty charged to your delinquent taxpayers
with that of Brazoria, Harris and Fort Bend Counties, which are all at 20%. Further, we
believe this fee increase will lead to better current collections since the delinquent taxpayers
will receive notice of this additional penalty in May.
I would be happy to meet with you to answer any questions you may have, and look
forward to appearing at the next available City of Pearland Council Meeting to address any
questions Council may have.
Thank you for your consideration.
Michael J. Siwierka
Michael J. Siwierka
Partner
MJS/mjs
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
A TIORNEYS AT LAW
P.O. BOX 3064
HOUSTON, TEXAS 77282-3064
Writer's Direct Dial (713) 844-3466
Fax Number (713) 844-3511
Michael J. Siwierka
Parh1er
April 20, 2004
Mr. Bill Eisen, City Manager
Mr. Darrin Coker, City Attorney
City of Pearland
Delivery by E-Mail Only
Dear Gentlemen:
.RE: Request for Contract Amendment.
My law firm is requesting that the City of Pearland alter the add-on fee structure paid to us by the
delinquent taxpayers from 15% to 20%. The penalty is not retroactive, and therefore, would only apply on
2003 delinquencies forward. I am including information regarding this request in the following bullet
. point summary:
.
Seventy-Seventh Legislative Session passed H.B. 490 on May 15, 2001, allowing the add itional
collection penalty (attorney fees) for delinquent tax collections to be increased from 15'Yo to 20%.
.
The additional penalty has been 15% for the past 24 years. and 111'.; j!]c!'C;\C;C ic' 200/., ~~{'r..','
"cost of living" increase.
.
Costs of personnel, postage, telephone, rent and computer support have increased dramatically in
the past 24 years. Postage alone, has increased by 147%, with the cost of a stamp increasing from
$0.15 in 1980, when legislation was first enacted allowing the collection penalty, to the cllrrent
rate of $0.3 7 in 2004.
.
Taxpayers have multiple opportunities to pay their tax bill without incurring any additiunai
penalty. While our collection program emphasizes full payment, we work with the elderly.
hardship cases and taxpayers that require payment arrangements to pay off their debt over time.
.
This amendment will have no negative financial impact on your jurisdiction, as the delinquent
taxpayer pays the additional penalty. All costs for delinquent tax collections are home by the law
firm, resulting in a "cost free" collection program for the City.
.
Our clients that have adopted the increased collection penalty include Brazoria County, Fort Bend
County, and Harris County as well as hundreds of appraisal districts, cities and schell)l d isti k;"
throughout Texas.
Thank you for your consideration.
Michael J. Siwierka
Michael J. Siwierka
Partner
i\1J S/mjs