Item 5CCity of Southlake, Texas
MEMORANDUM
July 28, 2003,
TO: Shana Yelverton, City Manager
FROM: Sharen Elam, Director of Finance, ext. 1713
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 2005 taxes for the fiscal year beginning
October 1, 2005. Tarrant County charges $.50 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 $6,000
budgeted 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.
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 Tares
COUNTY OF TARRANT §
Agreement made (his day of 2005, by and between the Tarrant County Tax Assessor /Collector,
hereinafter referred to as ASSESSORICOLLECTOR, and Tarrant County, hereinafter referred to as the COUNTY, both of
whom are addressed at 100 E. Wcatherf)rd Street, Fort Worth, Texas 76I9b -0301, and the City of Southlake, hereinafter
referred to as City, whose address is 1400 Main St Ste 270, South lakc, TX 76092.
PURPOSE OFAGREEMENT
The purpose of this Agreement is to state the terms and conditions under which the ASSESSORICQLLECTOR will provide
assessment and collection services of Ad Valorem taxes levied by the City.
NOW THEREFORE, in consideradou of the mutual promises herein contained, the parties hereto agree as follows:
SERVICES TO BE PERFORMED
The ASSESSORICOLLECTOR agrees to collect the taxes due and owing on taxable properiy upon which the City has imposed
said taxes.. The ASSESSORICOLLECTOR shall perform the said services in the same manner and fashion as Tarrant County
collects its own taxes due and awing on taxable property situated within its boundaries. The services performed are as follows:
receiving information from the Tarrant Appraisal District for purposes of the Certified Appraisal Roll, and monthly changes
thereto; providing mortgage companies, property owners and tax representatives, tax roll and payment data; providing all
n"essary 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 rapid deposit payment processing All City disbursements, made by check or by electronic
transfer (wire), 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 disbtrrsemcnt may be withheld unfil the cumulative total oftaxes collected for the
City cyuals at least one hundred dollars ($100.00), or at the close of the month.
REPOR
The ASSESSORJOOLLECTOR will provide the City the following reports, if requested:
Daily:
General Ledger Distribution Report
Weekly:
Detail Collection Rat (Summary)
Monthly:
Tax Roll Suoanary {Totals Only)
Year - coo -Date Summary Repeal
Detail Coltution Report (Summary)
Distribution Report (Summary)
Delinquent Tax Attorney Tape
Annual-
Paid Tax Roll
DtAinquem Tax Roll
Current Tax Roll
A selection of the above listed Reports will only be available by intemet access. The ASSESSORICOLLECTOR will provide
the City the General Ledger Revenue & Expense Report monthly as required by Sec. 31.10 of the Texas Pmperty Tax Code,
III.
COMPENSATION
In consideration of the services to be performed by the ASSESSORICOLLECTOR, Compensation for the services tendered is a
rate of fifty cents (S.50) per account. The number of accounts will be based on the October billing roll certified to the
ASSESSORICOLLECTOR by The Tarrant Appraisal District. New accounts added by The Tarrant Appraisal District will be
billed to the entity. The ASSESSOWCOLLECTOR will invoice for all these accounts serviced on a quarterly basis.
IV.
AUDITS
The ASSES SORICOLLECTOR will provide to the City auditor necessary explanations of all reports and access to
ASSESSORICOLLECTOR icehouse tax system computer terminals to assist the City auditor in verifying audit samples of the
finan vial data previously provided by the ASSESSORICOLLECTOR during the past audit period.
If the City elects to have its auditors conduct a "computer system assurance Tcvicw audit" requiring assistance from
ASSESSOR/COLLECTOR systems programmers and accountants, the fee is $660.00 per day, which will be deducted from the
City's current collections at the end of the month.
TAX FATE REQUfRE.MEYT
The City will provide the ASSESSOWCOLLECTOR, in writing, the City's newly adopted tax rate and exemption
schedule to be applied for assessing purposes by Friday, September 9, 2005, but no later than 2:00 p.m., Friday,
September 16, 2005. Under authority of Sectiou 31.41 (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 m 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 poor
years where there rciiaains delinquent tax, must be fumished in writing to the ASSESSORICOLLCCTOR at the time of the
initial contract.
VI.
COMPLMNCE WITHAPPLICABLE
STAMM ORDINANCES, AND REGti'LATIONS
In performing the services required under this Agreement; the ASSESSOWCOLLECTOR stroll comply with all applicable
federal and state statutes, final Court orders and Comptroller regulations. If such compliance is impossible far reasons beyond
its control the ASSESSOR/COLLECTOR shall immediately notify the City ofthat fact and the reasons therefore.
"I.
DEPOSIT OF FUNDS
All funds collected by the AS SESSORICOLLECTOR 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. Electronically transferred funds may incur an
additional fee, which will be charged back to the City and deducted from those collected fends. The transfer fees charged will
be the same fees charged to the County by its frank depository. if the City Aesires its tare disbursements to be made by electronic
transfer of ftnrds (wire) the ASSESSORICOLLECTOR has no liability for the fiords after initiation of the electronic transfer of
the City's ftuids from the COUNTY Depository to the City's designated depository.
Yf7I.
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_ The ASSES SORICOLLECTOR agrees to deliver to the COUNTY Auditor all ad
valoT2lI1 taxes collw d on behalf of the City for inn mcnt on a tittlCly basis. All parties agree that this Agreement will riot be
construed to lengthen the time period during which the COUNTY or the ASSESSORICOLI=OR may hold such funds
before payment to the City.
Ix
REFUNDS
Refunds will be trade by the ASSESSORICOLLECTOR except as set forth herein. The ASSESSORICOLLECTOR will
advise the" of changes in the tax roll which were mandated by the Tarrant Appraisal District.
The ASSESSORICOLLECTOR will not make re funtis on prior year paid accounts unless the prior year paid accounts for the
past five (5) years are provided to the ASSESSORICOLLECTOR.
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 sham is
based upon the City's percent of the tax accounts total levy assessed at the lime oCreceipt ofthe over w erroneous payment.
In the event any lawsuit regarding the collection of taxes provided for in this agreement to which City of Southlakc 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 refrtnd shall be made by
ASSESSORICOLLECTOR by debiting funds collected by ASSESSORICOLLECTOR on bchalf of City of Southlake and
remitting such refund to the taxpayer in conformity with the terns of the settlement agreement or final judgment.
X
DELINQUENT COLLECTIONS
The ASS ESSORICOLLECTOR will assess and collect the collection fee pursuant to Sections 33.07, 33.0$ and 33.48 of the
Property Tax Code, when allowed. The ASSESSORICOLLECTOR will collect attorney fees that are specified by the City
through written agreement with a delinquent collection Attorney. The ASSESSOWCOLLECTOR 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 a ttendance of ASSESSOR/COLLECTOR personnel at a
court other than the District Courts in downtown Fort Worth, and the COUNTY is not a patty, the employees expenses and
proportionate salary will by the n $ppnsibihty Rf the City anti will he added to the collection expenses and charged to the City.
The ASSESSORICOLLECfOR will not be responsible for the collection of prior year delinquent accounts unless all delinquent
accounts infonnation is provided to the ASSESSORICOLLECTOR.
xI.
TERM OFAGREEMENT
This Agreement shall become effective as of the date hereinabove set out, and shall continue in effect during, the 2005 tax year,
unless sooner terminated by providing sixty (60) day written notice, as outlined in paragraph X11.
XIL
NOTICES
Any notices to he 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.
X111.
MISCELL.A!â–ºEOUS PROVISIONS
This insnwnent hereto contains the entire Agreenvurst between the parties relating to the rights herein granted and obligations
hctcin assumed. Any oral representations or nxsdifications 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 patties
created hereunder are performable in Tarrant County, Texas.
This Agreement shall be binding upon and inure to the benefit of the pasties hereto and their respective legal representatives and
successors.
In 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 coast rued as iNuch invalid, illegal, or unenforceable provisions had never been contained.
This Agreement and the attashrnents 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 n atier-
Executed on the day and year first above writtcn; Tarrant County, Texas.
BY:
BETSY PRICE DATE
TAX ASSESSOR/C'OLLECWR
TARRANT COUNTY
FO THE C1T'Y OF S0P711LAKE:
BY:
TITLE:
FOR TARRANT COUNTY:
DATE
BY:
TOM P NDF.RGRIF'F DATE
TARRANT C'OUNTYJUDGE
APPROVED AS TO FORM "AND CONTENT
BY:
DISTRICT ATTORNEY'S OFFICE DATE
'By law, the oistxict 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 dccument 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 attorney1.51.