Item 4FCITY OF
SOUTHLAKE
MEMORANDUM
July 13, 2009
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Subject: Approval of the Tarrant County Tax Collection Contract
Action
Requested: Approval of the contract with Tarrant County for assessment
and collection services for ad valorem taxes levied by the
City of Southlake.
Background
Information: Since 1982, the Tarrant County Tax Assessor /Collector has
collected property taxes for the City of Southlake. The
renewal contract has been presented to the City for
collection of the 2009 taxes for the fiscal year beginning
October 1, 2009. Tarrant County charges $.65 per account.
The number of accounts will be based on the October billing
roll certified to the assessor /collector by the Tarrant
Appraisal District. New accounts added by Tarrant Appraisal
District will be billed to the city quarterly. The fee is a very
reasonable charge for the service provided. Southlake
would spend far in excess of the $7,500 anticipated for this
service in personnel costs alone if the tax collection was
done by the city. The working relationship over the years
with the Tarrant County tax office has been excellent. The
contract provides for disbursements to be made to the City
when daily collections exceed $100, or at the close of the
month. Also included in the contract is a listing of the reports
provided to the City. The contract provides that the County
may invest the collected tax funds in a manner that complies
with the Public Funds Investment Act. There are provisions
that allow the City to perform an audit of the County's
collection process if we choose to do so.
Financial
Considerations: If the contract is not approved the City would have to make
provisions to collect taxes for ourselves. This would cost
significantly more than the cost for Tarrant County to collect
the City's taxes.
Honorable Mayor and City Council
Page 2 of 2
Strategic Link: L5 Actively promote opportunities for partnerships and
volunteer involvement; B2 Collaborate with select partners to
implement service solutions.
Citizen Input/
Board Review: There is no requirement for citizen or board review of the
contract with Tarrant County for tax collection.
Legal Review: The contract has been reviewed by the City Attorney.
Alternatives: The City could assess and collect taxes for ourselves at a
significantly higher cost than what is proposed by Tarrant
County.
Supporting
Documents: Contract for Tax Collection with Tarrant County.
Staff
Recommendation: Approval of the contract with Tarrant County for assessment
and collection services for ad valorem taxes levied by the
City of Southlake.
§ Agreement for the Collection of Taxes
COUNTY OF TARRANT §
Agreement made this day of , 2009, by and between the Tarrant County Tax Assessor /Collector,
hereinafter referred to as ASSESSOR/COLLECTOR, and Tarrant County, hereinafter referred to as the COUNTY, both of
whom are addressed at 100 E. Weatherford Street, Fort Worth, Texas 76196 -0301, and the City of Southlake, hereinafter
referred to as City, whose address is 1400 Main St Ste 440, Southlake, TX 76092.
PURPOSE OF AGREEMENT
The purpose of this Agreement is to state the terms and conditions under which the ASSESSOR/COLLECTOR will provide
assessment and collection services of Ad Valorem taxes levied by the City.
NOW THEREFORE, in consideration of the mutual promises herein contained, the parties hereto agree as follows:
I.
SERVICES TO BE PERFORMED
The ASSESSOR/COLLECTOR agrees to bill and collect the taxes due and owing on taxable property upon which the City has
imposed said taxes. The ASSESSOR/COLLECTOR shall perform the said services in the same manner and fashion as Tarrant
County collects its own taxes due and owing on taxable property. The services performed are as follows: receiving the
Certified Appraisal Roll from the appropriate Appraisal District and monthly changes thereto; providing mortgage companies,
property owners and tax representatives, tax roll and payment data; providing all necessary assessments of taxes and Truth in
Taxation calculations as required; the transmittal of tax statements via the U.S. Mail or electronic transfer of data; and payment
processing. All City disbursements, made by check or by electronic transfer (ACTT), for collected tax accounts will be made to
the City on the day the COUNTY Depository Bank indicates the mandatory assigned "float" period has elapsed and the funds
are posted to the collected balance. If any daily collection total is less than one hundred dollars ($100.00), the disbursement
may be withheld until the cumulative total of taxes collected for the City equals at least one hundred dollars ($100.00), or at the
close of the month.
A selection of the above listed Reports will only be available by internet access. The ASSESSOR/COLLECTOR will provide
the City the General Ledger Revenue & Expense Report monthly as required by Sec. 31.10 of the Texas Property Tax Code.
Ill.
COMPENSATION
In consideration of the services to be performed by the ASSESSOR/COLLECTOR, compensation for the services rendered is a
rate of sixty five cents ($.65) per account. The number of accounts will be based on the October billing roll certified to the
ASSESSOR/COLLECTOR by the Appraisal District. New accounts added by the appropriate Appraisal District will be billed
to the entity. The ASSESSOR/COLLECTOR will invoice for all these accounts by January 15, 2010 with payment to be
received from the City by February 15, 2010.
H
REPORTS
The ASSESSOR/COLLECTOR will provide the City the following reports, if requested:
Daily:
General Ledger Distribution Report
Weekly:
Detail Collection Report (Summary)
Monthly:
Tax Roll Summary (Totals Only)
Year -to -Date Summary Report
Detail Collection Report (Summary)
Distribution Report (Summary)
Delinquent Tax Attorney Tape
Annual:
Paid Tax Roll
Delinquent Tax Roll
Current Tax Roll
A selection of the above listed Reports will only be available by internet access. The ASSESSOR/COLLECTOR will provide
the City the General Ledger Revenue & Expense Report monthly as required by Sec. 31.10 of the Texas Property Tax Code.
Ill.
COMPENSATION
In consideration of the services to be performed by the ASSESSOR/COLLECTOR, compensation for the services rendered is a
rate of sixty five cents ($.65) per account. The number of accounts will be based on the October billing roll certified to the
ASSESSOR/COLLECTOR by the Appraisal District. New accounts added by the appropriate Appraisal District will be billed
to the entity. The ASSESSOR/COLLECTOR will invoice for all these accounts by January 15, 2010 with payment to be
received from the City by February 15, 2010.
The scope of services identified in this contract does not include the administration of a rollback election. In the event of a
successful rollback election, these costs incurred by the Tarrant County Tax Office will be separately identified, billed, and paid
by the entity.
IV.
AUDITS
The ASSESSOR/COLLECTOR will provide to the City auditor necessary explanations of all reports and access to
ASSESSOR/COLLECTOR in -house tax system computer terminals to assist the City auditor in verifying audit samples of the
financial data previously provided by the ASSESSOR/COLLECTOR during the past audit period.
Y.
TAX RATE REQUIREMENT
The City will provide the ASSESSOR/COLLECTOR, in writing, the City's newly adopted tax rate and exemption
schedule to be applied for assessing purposes by Friday, September 12, 2009. Under authority of Section 31.01 (h) of the
Property Tax Code, any additional cost of printing and mailing tax statements because of late reporting of the tax rate or the
exemption schedule will be charged to and must be paid by the City. If the City wishes its collection reports to be itemized as to
maintenance and operation fund and interest and sinking fund, then the notice advising of the new tax rate must set out the
separate rates, as well as the total rate.
The tax rate and the exemption schedule for each of the last five (5) years in which an ad valorem tax was levied, or all prior
years where there remains delinquent tax, must be furnished in writing to the ASSESSOR/COLLECTOR at the time of the
initial contract.
VI
COMPLIANCE WITHAPPLICABLE
STATUTES, ORDINANCES, AND REGULATIONS
In performing the services required under this Agreement, the ASSESSOR/COLLECTOR shall comply with all applicable
federal and state statutes, final Court orders and Comptroller regulations. If such compliance is impossible for reasons beyond
its control, the ASSESSOR /COLLECTOR shall immediately notify the City of that fact and the reasons therefore.
VII.
DEPOSIT OF FUNDS
All funds collected by the ASSESSOR/COLLECTOR in the performance of the services stated herein for the City shall be
promptly transferred to the account of the City at the City's depository bank. All payments to entities will be made
electronically by the automated clearing house (ACH). The ASSESSOR/COLLECTOR has no liability for the funds after
initiation of the ACH transfer of the City's funds from the COUNTY Depository to the City's designated depository.
VIII.
INVESTMENT OF FUNDS
The City hereby agrees that the COUNTY, acting through the COUNTY Auditor, may invest collected ad valorem tax funds of
the City during the period between collection and payment. The COUNTY agrees that it will invest such funds in compliance
with the Public Funds Investment Act. The COUNTY further agrees that it will pay to the City all interest or other earnings
attributable to taxes owed to the City. All parties agree that this Agreement will not be construed to lengthen the time period
during which the COUNTY or the ASSESSOR/COLLECTOR may hold such funds before payment to the City.
IX.
REFUNDS
Refunds will be made by the ASSESSOR/COLLECTOR except as set forth herein. The ASSESSOR/COLLECTOR will
advise the City of changes in the tax roll which were mandated by the appropriate Appraisal District.
The ASSESSOR/COLLECTOR will not make refunds on prior year paid accounts unless the prior year paid accounts for the
past five (5) years are provided to the ASSESSOR/COLLECTOR.
All refunds of overpayments or erroneous payments due, but not requested, and as described in Section 31.11 of the Texas
Property Tax Code, will after three years from the date of payment, be proportionately disbursed to those entities contracting
with the ASSESSOR/COLLECTOR. The contract must have been in force, actual assessment and collection functions begun
and the tax account was at the time of the over or erroneous payment within the City's jurisdiction. The proportional share is
based upon the City's percent of the tax account's total levy assessed at the time of receipt of the over or erroneous payment.
In the event any lawsuit regarding the collection of taxes provided for in this agreement to which City of Southlake is a party, is
settled or a final judgment rendered, and which final judgment is not appealed, and the terms of such settlement agreement or
final judgment require that a refund be issued by City of Southlake to the taxpayer, such refund shall be made by
ASSESSOR/COLLECTOR by debiting funds collected by ASSESSOR/COLLECTOR on behalf of City of Southlake and
remitting such refund to the taxpayer in conformity with the terms of the settlement agreement or final judgment.
X
DELINQUENT COLLECTIONS
The ASSESSOR/COLLECTOR will assess and collect the collection fee pursuant to Sections, 33.07, 33.08, 33.11 (changed
order) and 33.48 of the Property Tax Code, when allowed. The ASSESSOR/COLLECTOR will collect attorney fees that are
specified by the City through written agreement with a delinquent collection Attorney. The ASSESSOR/COLLECTOR will
disburse the amount directly to the City for compensation to a Firm under contract to the City.
If the delinquent collection Attorney contracted by the City requires attendance of ASSESSOR/COLLECTOR personnel at a
court other than the District Courts in downtown Fort Worth, and the COUNTY is not a party, the employee's expenses and
proportionate salary will be the responsibility of the City and will be added to the collection expenses and charged to the City.
The ASSESSOR/COLLECTOR will not be responsible for the collection of prior year delinquent accounts unless all delinquent
accounts information is provided to the ASSESSOR/COLLECTOR.
XI.
TERM OF AGREEMENT
This Agreement shall become effective as of the date hereinabove set out, and shall continue in effect during the 2009 tax year,
unless sooner terminated by providing sixty (60) day written notice, as outlined in paragraph X111.
XII.
NOTICES
Any notices to be given hereunder by either party to the other may be effected, in writing, either by personal delivery or by mail,
registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the address of the
parties as they appear in the introductory paragraph of this Agreement, but each party may change this address by written notice
in accordance with this paragraph.
Xlll.
MI S CE L L A NE O US P R O VI S I O NS
This instrument hereto contains the entire Agreement between the parties relating to the rights herein granted and obligations
herein assumed. Any oral representations or modifications concerning this instrument shall be of no force or effect.
This Agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties
created hereunder are performable in Tarrant County, Texas.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives and
successors.
Ia case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or enforceability shall not affect any other provision hereof and this
Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained.
This Agreement and the attachments hereto constitutes the sole and only agreement of the parties hereto and supersedes any
prior understandings or written or oral agreements between the parties respecting the within subject matter.
Executed on the day and year first above written, Tarrant County, Texas.
BY:
BETSYPRICE
DATE
TA X A S S ESS OR / C O L L E C T O R
TARRANT COUNTY
FOR THE CITY OF SOUTHLAKE:
BY.•
DATE
TITLE:
FOR TARRANT COUNTY.-
BY.
B. GLEN WHITLEY
DATE
TARRANT COUNTYJUDGE
APPROVED AS TO FORM *AND CONTENT
BY.•
DISTRICT ATTORNEY'S OFFICE
DATE
*By law, the District Attorney's Office may only advise or approve
contracts or legal documents on behalf of its clients. It may not
advise or approve a contract or legal document on behalf of other
parties. Our review of this document was conducted solely from the
legal perspective of our client. our approval of this document was
offered solely for the benefit of our client. Other parties should not
rely on this approval, and should seek review and approval by their own
respective attorney(s).