Item 4CCITY OF
SOUTHLAKI
MEMORANDUM 4C
June 11, 2014
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Approve the annual interlocal agreement with Tarrant County to
provide tax collection and assessment services for ad valorem
taxes levied by the City of Southlake for tax year 2014.
Action
Requested: Approval of the annual interlocal agreement with Tarrant
County to provide tax collection and assessment services for
ad valorem taxes levied by the City of Southlake for tax year
2014
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 2014 taxes for the fiscal year beginning
October 1, 2013. Tarrant County charges $1.10 per
account/parcel. The number of accounts will be based on
the October billing roll certified to the assessor/collector by
the Tarrant Appraisal District (TAD). New accounts added
by TAD will be billed to the City quarterly.
Southlake would spend well in excess of the anticipated
$14,000 if the City chose to provide this service in house.
The working relationship between City and County staff has
been excellent through the years, and we anticipate a
continuation of the same.
The contract states that collections in excess of $100 shall
be disbursed to the City on a daily basis, and always at the
close of the month. Reports provided to the City are also
disclosed in the contract provisions, and allow Southlake to
perform an audit of the County's collection process at our
discretion. The County may also invest the collected funds
in a manner that complies with the Public Funds Investment
Act.
Financial
Considerations: The amount budgeted for this service is $14,000-1 however,
should the contract not be approved, the City would be
required to provide the service in house, creating the
necessity to hire additional staff and equipment which would
dramatically increase the cost to Southlake.
Honorable Mayor and City Council
Page 2 of 2
Strategic Link: This agenda item is linked to the Southlake Strategy Map
through the following objectives:
• 132 Collaborate with select partners to implement
service solutions
• C5 Promote opportunities for partnerships and
volunteer involvement
Citizen Input/
Board Review: No requirement exists to review the contract with citizens or
boards
Legal Review: The contract has been reviewed by the City Attorney.
Alternatives: The alternative to approving this contract is to require
Southlake staff to assess and collect taxes. The cost of this
action would far exceed the cost to contract with Tarrant
County.
Supporting
Documents: The contract for Tax Collection with Tarrant County is
attached.
Staff
Recommendation: Staff recommends approval of the contract with Tarrant
County for the assessment and collection of the 2014 taxes
for the City of Southlake.
§ Agreement For the Collection of Taxes
COUNTY OF TARRANT §
Agreement made this day of 2014, 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 temps 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 (ACH), 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 pumulative total of
taxes collected for the City equals at least one hundred dollars ($100.00), or at the close of the month.
II.
REPORTS
The ASSESSOR/COLLECTOR will provide the City the following reports, if requested:
Daily: General Ledger Distribution Report
Weekly: Detail Collection Report (Sun -unary)
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.
III.
COMPENSATION
In consideration of the services to be performed by the ASSESSOR/COLLECTOR, compensation for the services
rendered is a rate of one -dollar and ten cents ($1.10) per account located within Tarrant County, and two -dollars and
sixty cents ($2.60) per account located outside Tarrant County. The number of accounts billed will be based on the
October billing roll certified to the ASSESSOR/COLLECTOR, net of subsequent account additions and deletions made
by the Appraisal District. The ASSESSOR/COLLECTOR will invoice for these accounts by January 31, 2015 with
payment to be received from the City by February 28, 2015.
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 AS SESSOR/COLLECTOR during the past audit period.
V
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, 2014. 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.
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.
t1
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.
VH..
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.
VIH..
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.
M.
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 accounts 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 the City is a party, is
settled or a final judgment rendered, and which fmal judgment is not appealed, and the terms of such settlement
agreement or final judgment require that a refund be issued by the City to the taxpayer, such refund shall be made by
ASSESSOR/COLLECTOR by debiting funds collected by ASSESSOR/COLLECTOR on behalf of the City 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, 33.67, 33.08, 33.11
(changed order) 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
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.
XL
TERM OFAGREEMENT
This Agreement shall become effective as of the date hereinabove set out, and shall continue in effect during the 2014
tax year, unless sooner terminated by providing sixty (60) day written notice, as outlined in paragraph XII.
1W..
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.
)UH..
MISCELLANEOUS PROVISIONS
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.
In caseany 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:
RON WRIGHT, DATE
TAX ASSESSORICOLLECTOR
TARRANT COUNTY
FOR City of Southlake
BY.•
TITLE:
FOR TARRANT COUNTY:
BY.•
B. GLEN WHITLEY
TARRANT COUNTYJUDGE
APPROVED AS TO FORM * AND CONTENT
BY..•
DISTRICT ATTORNEY'S OFFICE
DATE
DATE
DATE
*By law, the District Attorney's Office may only approve contracts for its clients. We reviewed this document from our
client's legal perspective. Other parties may not rely on this approval. Instead those parties should seek contract review
from independent counsel.