HomeMy WebLinkAboutContract 49943 ' CITY SECRETARY
CONTRACT NO.
§ Agreement For the Collection of Taxes
COUNTY OF TARRANT §
Agreement made this aday of 2017, by and between the Tarrant County Tax
Assessor/Collector, hereinafter referred to aqAS SSOR/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 Fort Worth hereinafter referred to as City,whose address is 200 Texas Street,Fort Worth,TX 76102-6314.
PURPOSE OFACREEMENT
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:
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SERVICES TO BE PERFORMED
The ASSESSOR/COLLECTOR agrees to bill and collect he 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; he 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 cumulative 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 of Fort Worth the following reports via internet access:
Daily: Entity Distribution Report
Monthly: Tax Roll Summary
Year-to-Date Summary Report Part A,B and C
Detail Collection Summary Report
Distribution Summary
Detail Collection Summary By Year
Entity Revenue and Expense Reports—as required by Property Tax Code Sec 3 1.10
Annual: Certified Tax Roll
The following weekly reports are available upon request only and provided via email: —
Weekly: Detail Collection Summary Report '
Detail Collection Summary By Year
III.
COMPENSATION
9 nsideration of the services to be performed by the ASSESSOR/COLLECTOR, compensation for the services
1a ' a rate of ninety-eight cents ($0.98) per account located within Tarrant County, and two-dollars and sixty
h� cents per account located outside Tarrant County. The number of accounts billed will be based on the July 25
ro a ified to he ASSESSOR/COLLECTOR, net of subsequent account additions unci dei ions made b the
}yd13b03� ct. The ASSESSOR/COLLECTOR will invoice for hese accounts b Janu 31,2018 with a men
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to be received from the City by February 28,2018.
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.
A UDITS
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. Additional
support for entity verification or entity auditor verification is not a part of this contract. Each request for support will be
reviewed individually. Costs for providing audit support will be determined by the ASSESSOR/COLLECTOR and will
be charged to and must be paid by the City.
V.
TAX RATE REQUIREMENT
The City will provide the ASSESSOR/COLLECTOR copies of the resolution, ordinance,or order signed by the
governing body adopting the City's current tax rate and exemption schedule to be applied for assessing purposes
along with a copy of the rate calculation worksheets,if applicable,by Friday,September 15,2017. 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. Any additional cost
or expense requiring recalculation or rebilling due to an inaccurate or erroneous tax rate provided by City of Fort Worth
will be paid by City of Fort Worth.
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 WITH APPLICABLE
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. ASSESSOR/COLLECTOR has the authority to temporarily suspend payments to City of Fort Worth due to
unforeseen or unanticipated circumstances.
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.
If the amount of refunds processed for City of Fort Worth exceeds collections for City of Fort Worth,City of Fort Worth
will be placed in a negative status and no distributions made to City of Fort Worth until collections exceed the negative
balance.
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 the City 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 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, 33.07, 33.08, 33.11 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 ASSESSORJCOLLECTOR
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.
TERM OF AGREEMENT
This Agreement shall become effective as of the date hereinabove set out,and shall continue in effect during the 2017
tax year,unless sooner terminated by providing sixty(60)day written notice,as outlined in paragraph XII.
XIL
NOTICES
Any notices to be given hereunder by either party to the other may be effected by e-mail,or 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 notice in accordance with this paragraph.
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XIIL
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 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 da and year first above written,Tarrant County,Texas.
BY.• l� /
RON WRIGHT, DATE
TAX ASSESSORICOLLECTOR
TARRANT COUNTY
FOR c� ort Worth APPROVED AS TO
BY• a'0 i� ND LEGALITY:
TI ' . n s S� . "'� ��� �ti0-��1/ D TE C ovtj ( C V-�C o 1
AN ANT C ATTORNEY
FOR TARRANT COUNTY:
--cBY. Attested by:
B. GLEN WHITLEY DATE
TARRANT COUNTYJUDG
Atiisari 'iclwell,AssistanL� SOCrOtP
APPROVED ASr I I I:
BY.
CR/ ����1��15'1k�cr':trr'o2VEt �,rFI� DATE ;
*By law,the Criminal District Attorney's Office may only approve contracts for its clients. We reviewed this document as to'fo o r
client's legal perspective. Other parties may not rely on this approval. Instead those parties should seek contract review from••indepen t
counsel. r����''
q/7 OFFICIAL RECORD
M&C: n- �
CITY SECRETARY
295: FT.(WORTH,TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved_on 81112017:
DATE: Tuesday, August 1, 2017 REFERENCE NO.: **C-28297
LOG NAME: 13TARRANTC018
SUBJECT:
Authorize Execution of Agreement with Tarrant County and the Tarrant County Tax Assessor-Collector for
Approximately $679,480.00 for Ad Valorem Tax Assessment and Collection Services for Fiscal Year 2018
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Agreement with Tarrant County and
the Tarrant County Tax Assessor-Collector for assessment and collection services of ad valorem taxes
levied by the City of Fort Worth for Fiscal Year 2018, covering the period October 1, 2017 to September
30, 2018, with a unit-based cost of$.98 per account for property located within Tarrant County and $2.60
per account for property located outside the County resulting in an overall annual cost of approximately
$679,480.00.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize engaging Tarrant County
and the Tarrant County Tax Assessor-Collector(together, County) to provide assessment and collection
services for the City's property taxes. The City Council has designated the County to act as the agent of
the Finance Department by providing these services for well over a decade. The Agreement for the
current fiscal year was approved on September 13, 2016 (M&C C-27898).
The County uses a standard Agreement with all of the taxing entities for which it collects taxes. In previous
years, the County used a cost structure involving a single standard per-account cost. However, as the City
expanded, the County increased the scope of its services to include assessment and collection for tax
accounts for property located outside of Tarrant County but still within the City. Processing different data
formats and verifying data with multiple appraisal jurisdictions has resulted in additional expenses to the
County, State law requires that the Tax Assessor-Collector charge taxing entities the actual costs for tax
collection. Therefore, for Fiscal Year 2018, the County will again utilize a dual cost structure, one for
accounts where the property is located within Tarrant County and another for accounts where the property
is located outside the County.
Terms of the Agreement for Fiscal Year 2018 are generally the same as those for the current fiscal
year. The per-account charge for in-county property accounts is increasing by$0.03 from $0.95 to $0.98.
The estimated number of accounts in Tarrant County is 669,470 resulting in an estimated cost of
approximately $656,080.00 for these accounts for the fiscal year. The fee for out-of-county accounts
remains the same as last year at $2.60 per account. The estimated number of accounts outside of Tarrant
County is 9,000 resulting in an estimated cost of approximately $23,400.00 for these accounts for the
fiscal year.
The total cost for Fiscal Year 2018 for all accounts will be approximately $679,480.00 for 678,470
accounts, representing a 9.18% increase from the prior year.
Logname: 13TARRANTC018 Page 1 of 2
ADMINISTRATIVE CHANGE ORDER- In accordance with Section 2-9 of the City Code, an administrative
change order or increase may be made by the City Manager in the amount up to $50,000.00 and does not
require specific City Council approval as long as sufficient funds have been appropriated.
This contract will be with governmental entities -Tarrant County and the Tarrant County Tax Assessor-
Collector.
This contract will be with a governmental entity, state agency or public institution of higher education:
(Tarrant County and Tarrant County Tax Assessor-Collector).
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the adoption of
the Fiscal Year 2017-2018 Budget by the City Council, funds will be available in the Fiscal Year 2018
Operating Budget, as appropriated, of the General Fund.
FUND IDENTIFIERS (FIDs):
TO
'Fund Department,AccOuB'-'t-'-'Projec ProgramActivitybudge Reference
ID ID Year r #
'(Chiartfield
FROM
FundDepartmen AccountProject Program ctivitybudgetReference
ID ID Year #
#(Dhartfield
2
CERTIFICATIONS:
Submitted for City Manaoer's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: John Samford (2318)
ATTACHMENTS
1. FY18 TC Agreement.pdf (Public)
Logname: 13TARRANTC018 Page 2 of 2