10-20-1992 (City Council) Agenda Packet AGENDA
WORK S E S S I ON
WYLIE CITY COUNCIL
OCTOBER 20, 1992
7:00 P.M.
MUNICIPAL COMPLEX
Call to Order
Worksession Items
1 . Update on Code Enforcement Initiatives
2. Discuss Meals on Wheels Program
3 . Discuss Inventory Controls Improvements
4. Discuss Economic Goals and Objectives and View
Development Corporation Video
5. Discuss Status of Delinquent Tax Accounts
6. Management Update
Adjournment
Vida.ed
Mary A. N' ./ 1 , City Secret
Posted ' 4, , 1992 at 6o .M.
Vytie
CITY OP' WYLIE
2000 HWY 78 N - P.O. BOX 428
WYLIE. TEXAS 75098
214-442-2236
MEMORANDUM
DATE: October 20 , 1992
TO: Steve Norwood, City Manager
FROM: Brady Snellgrove,rove, Finance Director
SUBJECT: Tax Status Reports From Nichols , Jackson,
Kirk & Dillard
The City ' s tax attorneys , Nichols , Jackson, Kirk & Dillard
(referred to hereafter as the "Firm") has supplied two reports to
us . The first report is a recommendation for deleting some personal
property accounts from our tax roll . The second report is an update
of the various accounts the Firm is working on.
The first report is accompanied by a letter from the Firm detailing
the reasons for recommending the write-off of specific personal
property tax accounts . Attached to this letter is a list of the
accounts to be deleted. This recommendation does not require a vote
by the City Council to implement . However , the staff feels that
this is information the Council should be made aware of and
informed about the reasons for the account deletions . The write-off
amount is $21 , 327 . 93 and includes tax years from 1981 through 1987 .
The other report lists the litigation status of the various
accounts the Firm is currently working on. This status report is a
listing of the defendant, tax accounts , case numbers, and the
status of the case. This report is was submitted to staff as an
informational update on what accounts the Firm is actively
pursuing.
NICHOLS, JACKSON, KIRK & DILLARD
(Formerly Sallinger, Nichols,Jackson, Kirk& Dillard)
Attorneys & Counselors at Law
LAWRENCE W.JACKSON 1800 Lincoln Plaza ROBERT E.HAGER
TIM KIRK PETER G.SMITH
ROBERT L.DILLARD III 500 N. Akard JOHN PIERCE GRIFFIN
ROBERT D.HEMPHILL Dallas,Thxas 75201 DAVIO M.BERMAN
(214)954-3333 JOHN F.ROEHM III
ROBERT L.DILLARD,JR. Facsimile(214)954-3334 BRUCE A.STOCKARD
H.LOUIS NICHOLS CHRISTINA A.MELTON
OF COUNSEL
September 16, 1992
Prudence Kling
Tax Assessor/Collector
City of Wylie
2001 Highway 78
Wylie, Texas 75098
Re: Deletion of Tax Accounts
from Delinquent Tax Roll
Dear Prudence:
This correspondence is to recommend a policy for the City to cancel or write-off certain uncollectible
accounts from the tax roll. Article III, Section 55, of the Texas Constitution prohibits the legislature from
releasing or extinguishing debts owed to political subdivisions except taxes which have been due for at least ten
years. In addition to this section,other provisions require taxation to be equal and uniform (Art.VIII,§ 1) and
prohibit waivers of taxes by the legislature except in cases of"great public calamity." (Art. VIII,§ 10). It has
often been thought that a taxing jurisdiction is prohibited from deleting taxes from a tax roll since it may be
interpreted as violating the constitutional mandate of equal and uniform taxation. See,e.g.,Tex.Atty.Gen.Op.
WW-107 (1957).
Section 33.05 of the Texas Property Tax Code indicates that no suit for collection shall be filed after the
limitations period expires and that a tax which remains uncollected after this period is presumed paid. In
addition, a taxing jurisdiction must cancel and remove from its delinquent tax roll a tax on real property that has
been delinquent for more than twenty years or a tax on personal property that has been delinquent for more than
ten years, if there is no pending litigation concerning the taxes at the time of the cancellation and removal. The
provision is mandatory and does not require prior approval by the governing body of the tax unit.
The limitations period for personal property is four (4) years. For real property, the period is twenty
(20) years. For mobile homes, the limitations period may be either 4 or 20 years, depending on whether the
mobile home owner also owns the real estate. Typically, it should be assumed that the 4-year period applies.
In accordance with Section 33.05(c) of the Code,the tax assessor-collector must delete all real property accounts
for tax year 1971 or prior and all personal property/mobile home accounts for tax year 1981 or prior. This can
be done automatically without City council approval.
As a legal and practical matter,many personal property and mobile home accounts become uncollectible
for a variety of reasons, not the least of which is an inherent difficulty in enforcing the tax lien. As often
happens,the taxpayer may be insolvent or a forfeited corporation or an individual whose whereabouts is unknown
and can not be identified after diligent and exhaustive inquiry. Even if we had a more accurate description of
the property from the appraisal district, it may often have been destroyed, sold or foreclosed on by unknown
parties years before. If the tax lien does not appear on the face of the certificate of title of a manufactured
home, the lien is extinguished and unenforceable. Since the collection of such accounts is often impossible, no
purpose is served by maintaining the account on the roll for the full ten years.
Prudence Kling
Page 2
The former State Property Tax Board has in the past advised that uncollectible accounts may be deleted
from the roll under certain circumstances. If,after diligent inquiry,the tax unit's collection attorney recommends
the deletion, then a tax unit may write off its older uncollectible accounts. This approach is the most rational
policy. The cancellation of an uncollectible account is not unequal or non-uniform since it does not result in a
disproportionate shifting of the tax burden.
Our recommended procedure is the adoption of a policy whereby no real property accounts are removed
from the tax roll unless the account has been delinquent for at least twenty years or any further collection
attempts would be ineffectual for a unique reason(e.g.,a partial discharge in bankruptcy). For personal property
and mobile home accounts, no account should be maintained for over ten years. They should be kept on the
delinquent tax roll or a supplemental roll for at least four years or until a written recommendation is received
from tax collection counsel advising the deletion of the account. The conclusion that the account is uncollectible
must be based on the completion of a diligent inquiry or investigation. If a properly recorded lien exists on a
mobile home, the account should be retained on the roll for at least four years unless the home has been
destroyed. For any accounts which are removed prior to the mandatory 20-or 10-year period imposed by Section
33.05(c) of the Code,City council approval should first be obtained. This should be treated as a consent agenda
item.
Attached hereto is a list of accounts which we recommend the City delete from its delinquent tax roll.
After diligent inquiry and investigation,we have concluded that there are no reasonable expectations of recovery.
Should you have further questions, please do not hesitate to contact me. Thank you for your attention herein.
Sincerely,
NICHOLS, JACKSON, KIRK& DILLARD
BY: �
David . erman
DB/cc
ends:
DELIQUENT TAXPAYER OVER $1, 000 . 00
BASE ONLY (AS OF 09/30/92)
NAME AND ACCOUNT YEARS AMOUNT
P9000-285-0338-i
Super Fresh Food Store 1986-88 $3, 858 .75
(In Bankrupcy)
R6022-000-0050-1 1987-91 20, 990 .79
P9000-286-0018-1 1988-90
Myco Concrete
R6266-000-0030-1 1988-91 5, 799 . 43
P9000-270-3179-1
Chemical Recycling
R1169-012-001A-1 1991 2, 644 . 50
Ari Berger
R1437-001-0020-1 1990-91 2, 294 . 57
Raymond Sweeney
(On a Payment Plan)
Various Accounts 1988-91 4, 121 . 97
Don Kreymer
R1156-002-0050-1 1986 1, 380 . 84
Nirmal Nilvi
R1169-033-002B-1 & 4B-1 1991 590 . 57
R1156-003-0310-1 1990-91 1, 331 . 86
Melvin St. John
R1169-007-0060-1 & Personal 1988-91 6, 415 . 43
Johnston, Inc.
(In Bankrupcy)
R1504-005-0060-1 1988-91 2, 192 . 16
R1504-005-0020-1
Steve Young Custom Home
Various Accounts 1987-91 3, 831 . 60
James Stanley Investments
R1955-00B-0010-1 1990-91 1, 862 .06
Page 1
DELIQUENT TAXPAYER OVER $1, 000 . 00
BASE ONLY (AS OF 09/30/92)
NAME AND ACCOUNT YEARS AMOUNT
George Schuler
Various Accounts 1987-91 2, 531 . 39
Tembar Corp.
Various Accounts 1987-91 12, 837 . 55
Myran Corp.
R2057-000-017A-1 1987-91 2, 456 . 11
Charles Irwin
R1182-000-0010-1 thru 0050-1 1990-91 4, 922 . 56
Rosemary Domecki Trustee
R6266-000-0230-1 1990-91 2, 274 . 89
Wylie Commerical Investment #2
R6266-000-0240-1 1986-91 8, 797 . 64
Wylie Commerical Investment #1
R6660-000-0090-1 1987-91 1, 967 . 73
Robert Rogers
R6267-000-0060-1 1991 26, 554 . 41
Physician's Regional
(On a payment plan)
R6696-000-0250-1 & 0320-1 1988-91 2, 633 . 63
David Rochester
R6820-000-0400-1 1989-91 12, 961 . 86
Independent Bank
R6820-000-0090-1 1987-91 3, 159 .28
Jack Sweet
Various Accounts 1991 1, 127 . 92
Mullen Development
R1173-002-0030-1 1988-91 1, 083 . 32
Jerry Cooper
Page 2
October 16, 1992
To: Brady Snellgrove, Finance Director
From: Jim Holcomb, Purchasing Agent
Re: F.Y. '92 Physical Inventory
The following is a summary of the annual inventory of consumable
supplies. The physical count was performed September 28-30.
Streets $ 8,829.34
Fleet 2,516.59
Fuel 2,695.40
General Fund Total $14,041.33
Utilities $26,925.30
Grand Total $40,966.63
Total dollar values at the end of fiscal '91 were as follows.
General Fund $13,561.71
Utility Fund $37,911.37
Grand Total $51,473.08
copy: Steve Norwood
Equipment Inventory 9/28/92
Fleet
arc welder, Forney F260
grinder, Milwaukee Cl1A
bench grinder, Craftsman 257-192190
cutting torch, Harris
air compressor, Ram
drill press, Guardian Power BDM-58-5s
headlight tester, Bear 560
engine hoist, Ramco 5000
bumper jack, Walker 93696
jack, Lincoln 20 ton mod. 93731
tire changer, Coats 028-000700 4040SA
lube gun, air operated
battery charger, Snap On YA167B
floor jack, Matco AM-200-FJM 2 ton
ice machine, Manitowac EB60
Equipment Inventory 9/28/92
Streets
transit w/stand
2- 4 ft. level
traffic counter, K-Hill
power auger, Stihl gas powered
heater, Sears 30,000 btu
back pack sprayer
2- chain saw, Stihl
5- bolt cutters
measuring wheel
2- line trimmer, Tanaka
concrete vibrator, Wyco s/n 292153
tool chest, Craftsman
2-walkie talkie, Realistic
concrete saw, Target self-propelled
rotary hammer drill, Black and Decker
Equipment Inventory 9/29-30
Utilities
generator, Honda 254
Wacker Packer
line trimmer, Snapper
line trimmer, John Deere 300G
line trimmer, Stihl FS160
cut-off saw, Stihl
pump, Wacker 4" 16 HP
boring machine, Honda
pump, Homelite Waterbug
pump, Homelite 2"
pump, Paco 40 hp submersible
escape system, Arap
ventilator, General 25918
manhole ladder
manhole grabbit
2- spare vacuum pumps
pump, submersible mixer
cable hoist
pike pole, 20 ft.
gas detector, Enmet
emergency oxygen kit
mandrel kit, 6"-12"
air pack system w/3 bottles,3 harnesses,2 masks
?cv. -4 +Zatv4.aw10 /3i3
EQUIPMENT INVENTORY 1991/ 1992
\I e..uv-- INUMBER IDESCRIPTION/MODEL IOCT INOV IDEC IJAN FEB IMAR IAPR IMAY IJUN IJUL IAUG ISEP
VA$-1I 2 ' SNAPPER MOWER/21500C I I I I I I I I I I I I I
`c'k i3I 3 ' FLAIL MOWER I I I I 1 I I I I I I I 1
1c$y I 5 ITROY BILT TILLER I 1 ` I I I I 1 I I I I 1 I
`RS9 I 7 I SOLO B/P SPRAYER 4 GAL I I I I . I I I I I I I I I
`c c I I 9 ' GRAVITY FLOW B/P SPRAYER 5 GAL ' I I I I I I I I I I 1 I
\9OQI 14 ISHINDAIWA HEDGE TRIMMER/ SH2OU I I I I I I I I I I I I I
lc'vo�� I 15 IHERBIE SPRAYER W/ATTACHMENTS I I I I I I I I I I I I I
1qq pI 17 IRED MAX BLOWER/EB430 I I I I I I I I I I I I I
`Ct<0I 19 ' SPRAYER -100 GAL/B1723 I I I I I I I I I I I I I
`;V$% I 20 ITRAILER-7FT-SHOP MADE I I I I I I I ---- I ---- I ---- I ---- I ----I -
--- I
1014-1I 21 ! SNAPPER LINE TRIMMER I I I I I I I I I I I I I
V15111 25 ' J . DEERE LINE TRIMMER/ 300G I I I I I I I I I I I I I
Vqi6' 27 ' SNAPPER MOWER I I I I I I I I I I 1 I I
,cla oI 30 ISCAG MOWER/SWZ-14KH I 1 1 I I I I I I I I I I
1959I 32 ISTIHL LINE TRIMMER/FS160 1 1 1 1 1 1 1 1 1 1 1 1 1
i
+ +____+____+____+____+____+____+____+____+____+____+____+____+
( NUMBER IDESCRIPTION/MODEL / y ec,v- IOCT INOV IDEC IJAN IFEB IMAR IAPR IMAM IJUN JULI 'AUG I £EP
+ I�� I I i I
I DIXIE CHOPPER MOWER _4 .-T1AG� ____.}.____+----+
+ + I I i I I I I ( I
I 34 ( POWER TRIM EDGER/ 300 k.°icI a I I I I
I 36 ( BOLT CUTTERS 1 I I I t I I I I
+ I i 1 I I I I I I I I I
I 37 I HERD SPREADER/GT 77 . `c1�c' I I
p E 1 3 I I I I I I I
+ + i
I 201 ( TRAILER - 14 FT I I I I . I
I 203 IJ . DEERE TRACTOR/2350 1984 1()\ile-V- 1151:4041.AJ2/241.12-1I0C.O11404.211 _-_+____+____+
+
I 206 (WATER CANNON ka7c)1 I I I I I I I I I I I I I
I I I I I I I I I I I I I I I .
+ I I I I I I I I I
I I I---- I ____I
+ + I I I I I I I I I I I I i
I I +----+----+----+----+----+____+----+----+____+-___+____+____+
I I
+ + I I I I I I I I I I I I I
SERIAL NUMBERS
#2 - 24087469 #21 - 164920 #33 - 360989
#3 - P00025A630345 #25 - TY300GA00584 #34-A55012
#5 - 488068 #27-1519220169018605200 #37-G1500
# 14 - 5001298 #30 - 1493 #200 - 1GCDC14DXDS128820
#17-958827 #32-4119D-35 #203 - L02350G472100