HomeMy WebLinkAboutContract 45054 CITY SECRUARY
CONTRACT NO.
� § Agreement For the Collection ofTaxem
COUNTY OFIA/U1AN7 §
Agreement made this A—day of 2013, by and between the Tarrant County Tax
AooeomootoUmtor, hereinafter referred togASStE��R/C#LLEcTOR, and Tarrant Coouty, bereioufterrefencJk`
as the COUNTY, both of whom are addressed ml086. Weatherford Street, Fort Worth, Texas 76|V6-O30|, and the
City of Fort Worth hereinafter referred to as City,whose address is 1000 Throckmorton St,Fort Worth,TX 76101-6311.
PURJO8E0JrA{REEMENT
The purpose ofthis Agreement is to state the terms and conditions under which the A SSE 88OR/COLLBCII)R will
provide assessment and collection services of Ad Valorem taxes levied by the City.
NOW THEREFORE,in consideration oY the mutual promises herein contained,the parties hereto agree uy to||ov/o:
L
SE R VICES TO BE PERFORMED
The ASSESSOR/COLLECTOR agrees»obill 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 io the same manner and
bmhimo uo Tarrant County collects its own taxes due and owing on omah|e property. The services podhonud are as
follows: receiving the Certified Appraisal Roll from the appropriate Appraisal District and nmmh|y changes thereto;
providing mortgage companies, property ovmuo and uu mpmacoxoiveo, ku mU and payment data; providing all
necessary ooseoamoms of taxes and Truth ioTaxation calculations as required; the transmittal of tax smoomcnm via the
D.S. Mail or oloo0ou(o transfer of data; and payment processing. All City disbursements, made by check or by
electronic transfer(/\CH)' for collected tax accounts will bo made mthe City no the day the COUNTY Depository Bank
indicates the mandatory assigned''Ooau"period has elapsed and the funds are posted to the collected balance.If any daily
collection total is less than one hundred dollars(S 100.00),the disbursement may be withheld until the cumulative total of
taxes collected for the City equals at least one hundred dollars($100,00),or at the close of the month.
� ll
REPORTS
The AS8E880D/COLL8CT0R,will provide the City the following reports,ifrequest ed:
Daily: General Ledger Distribution Report
Weekly: Detail Collection Report(3ummmr)
Monthly: Tax Roll Summary(Totals Only)
Year-to-Date Summary Report
Detail Collection Report(8ummury)
Distribution Report(Svnnoary)
Dniinquon/Tom Attorney Tape
Annual: Paid Tux KoU
Delinquent Tax Roll
CurrentTax Roll
A selection of the above listed Reports will only 6o available hy iommetacouso. The AS8ESS0D/C0LLBCTORwill
provide the City the Gouem| Ledger Revenue & Expense Report monthly as required by 800. 31.10 of the Texas
Property Tax Code.
U%
COMPENSATION
In consideration of the oomiucm to be performed by the ASSESSOR/COLLECTOR, oompcouuuioo for the services
rendered is a rate of one-dollar and ten cc/8a ($|.lO) per account located within Tarrant County, and two-dollars and
sixty cents ($26O) per account located outside Tarrant County. The number ofaccounts billed will be based outhe
October billing roll certified onthe/\SS28S0R/COLLECTOR'net nf subsequent account additions and deletions made
by the Appraisal District. ]be ASSESSOR/COLLECTOR viD invoice for these accounts 6y January 3l,20l4with
payment mhe received from the City hy February Z8,30l4.
The scope of services identified in this contract does not include the administration of a rollback election. Un the event of
00W uecuosofu|rollback election,these costs incurred by the Tarrant County Tax Offixowill be se
OFFICIAL RECORD
CITY SECRETARY
" and paid hy the entity.
DK
AUDITS
The ASSESSOR/COLLECTOR will provide to the Qty auditor ucocoaary cxp|uoohoos 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.
K
TAX RAIERBQUfRfMFNT
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 27, 2O13. Under authority of
Section 31.01 (h)of the Property '"fax 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 mfthe last five(5)years in which onud valorem tax was levied,orall
prior years *hovc there remains delinquent tax, must be furnished in writing to the ASSESSOR/COLLECTOR at the
time of the initial contract.
COMPLIANCE WITH APPLICABLE
STATUTES, ORDINANCES,AND REGULATIONS
In performing the oen/ioeo required under this Agreement, the ASSESSOR/COLLECTOR, ybuU comply with all
applicable federal and state statutes,fiva\CourtordeoumdCom[xro}|erregu}obona. )f such compliance io impossible for
reasons beyond its control,the ASS8SS0A/C0LL2C7OK shall immediately notify the City nCthat fact and the reasons
therekore
.
VIL
DEyOSITOFFDNIS
All funds collected hy the ASSESSOR/COLLECTOR iu the performance of the services stated herein for the City shall
be promptly transferred to the account ofthe City N the City's depository bank, All payments to entities will he made
electronically by the automated clearing house (&CB). The ASSESSOR/COLLECTOR has oo liability for the bmdu
after iukiuhnn of the &C8 t onsfe, of the U\y^» funds from the COUNTY Depository to the City's designated
depository.
Vill.
INFESTMEY0F FUNDS
The City hereby agrees that the COUNTY,acting through the COUNTY Auditor, may invest collected ud valorem tax
funds of the City during the period between collection and payment. The COUNTY agrees that i|will invest such funds
iu compliance with the Public Funds Investment Act, The COUNTY further agrees that it will pay m the City all interest
or other earnings attributable to*xma owed to the City. All parties agree that this Agreement will not be construed on
lengthen the time period during which the COUNTY n, the ASSESSOR/COLLECTOR muy bold such funds bo0nrc
payment vo the City.
Ix.
REFUNDS
Dobmdo will be made by the &S8GS8DB/C0LLBC7DR 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 fivc(5)years are provided k/the ASS£3SOR/COLLBCT0K.
All refunds of overpayments or erroneous payments Juu, but not noqucated, and as described in Section 3|.|| of the
Texas Property Tax Code,will after three years fi-orn the date ofpayment, be proportionately disbursed to those entities
OFFICIAL RECORD
C11T SECRETARY
FE WO FITH,TX
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� contracting with the ASSES 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 ohmn in based upon the City's percent of the tax account's total levy ossu000d nt the time nf receipt ofthe
over or erroneous payment.
ln the event any lawsuit regarding the collection of taxes provided for io this agreement m which the City isoparty, is
settled or u final judgment rendered, and which final judgment is not uppmo\cJ, and the terms of such scu}unnot
agreement or final judgment require that a refund ke issued 6y the City to the taxpayer, such refund shall hc made by
ASSESSOR/COLLECTOR by debiting funds collected by ASSESSOR/COLLECTOR uo behalf ofthe City and
remitting such refund\othe taxpayer io conformity with the terms of the ynV|ement agreement or final judgment.
X.
DELINQUENT COLLECTIONS
The ASSESSOR/COLLECTOR will assess and uoUrut the collection fee pursuant to Sections, ]}.07. 33.08, 33.11
(changed order) and 3348 of the Property Tex Codo, when allowed. The ASSESSOR/COLLECTOR, will collect
attorney fees that are specified by the City through *riuoo agreement with o delinquent collection Attorney. The
ASSESSOR/COLLECTOR wi|l disburse the amount directly to the City for compensation N o8nm under contract to
the City.
If the delinquent collection Attorney contracted by the City requires attendance of ASSESSOR/COLLECTOR.personnel
utu court other than the District Courts in downtown Fort Worth, and the COUNTY io not uparty, the employee's
expenses and proportionate salary will bc the responsibility o[the City and will bc added m the collection expenses and
charged»n the City.
The ASSESSOR/COLLECTOR will not be responsible for the ooUc*bon of prior year delinquent accounts uo|eoy all
delinquent accounts information io provided m the ASSB8SDK/C0LLBCTOk.
X1.
~ JE RM OF ArREfME NT
This Agreement shall 6uoomc effective as nf the date bereinubove set out, and mhu|| continue in effect during the 2Ol3
tax year,unless sooner terminated by providing sixty(60)day written notice, is outlined in paragraph XIL
X11.
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 u«certified,postage prepaid with return receipt requested. Mailed notices shall 6o addressed mthe
address oy the parties aathey appear iuthe iuUnJouoxry paragraph of this Agreement, but each party may change this
address 6y written notice io accordance with this paragraph.
CITY SECRETARY
�
OFFICIAL RECORD
� XJD'
/S PROVISIONS
This instrument hereto contains the entire Agreement between the parties relating to the hgb$ herein granted and
obligations herein assumed. Any oral oposeut4 ions or modifications concerning this instrument shall 6oufno force or
oMet.
Thjs&gneemcntnha|lboonosunedundormodivacoorJaocev,ithtbo|uwanfthn0Ntev[Texam,ondaUoh|iA*i»osnCdu
parties created hereunder are nmfbonob|ein Tarrant County,Texas.
This Agreement ohuU be binding upon and inure 10 the bcooGt of the parties 6meW and their respective |c&ui
representatives and successors.
{n case any one or more mfthe provisions unoNinoJ in this Agreement shall for any reason bo held m be invalid,i||ogal,
or unenforceable io any respect, such invalidity, illegality, or enforceability shall not affect any other provision hereof
and this Agreement oboU be construed as if such invalid,illegal,orunenforceable 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\h�d uod e first above°riocn'To�antCounty,Texas.
RON WRIGHT, DATE
JAXASSE2S08ICOLiF,CJOR
7ARBANT0O6NTy
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FOR City of'Fort Worth ��������x���� �� ��
APPROVED, , ~~= °^��� r�x� o ��
BY. \ ^
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TITLE. AU 12, A6 e4--
FOR TARRANT COUNTY.
APPROVELD)��AOFQ *A CO �T�FSNT
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�By law,the District Attorney's Office may only approve contracts for its clients. We reviewed this ?n t Ir
client's legal perspective. Other parties may riot rely on this approval. Instead those parties should se vi
from independent Counsel. 00
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LOFFICIA R ECORD
CJYS L "flARY
WORT v TX
City of Fort Worth, Texas
Mayor and Council Communication
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DATE: Tuesday, July 09, 2013 REFERENCE NO.: **C-26309
LOG NAME: 13TARRANTC013
SUBJECT:
Authorize Execution of an Agreement with the Tarrant County and the Tarrant County Tax Assessor-
Collector for Ad Valorem Tax Assessment and Collection Services for Fiscal Year 2014 for Approximately
$471,960.00 (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 2014, covering the period October 1, 2013 to September
30, 2014, with a unit-based cost in the amount of$1.10 per account for property located within Tarrant
County and the amount of$2.60 per account for property located outside the County, resulting in an
overall annual cost of approximately $471,960.00.
DISCUSSION:
The purpose of this Mayor and Council Communication is to authorize engaging Tarrant County and the
Tarrant County Tax Assessor-Collector(together, The County)to provide assessment and collection
services for the City's property taxes. The County has been providing these services to the City for well
over a decade, with the Agreement for the current fiscal year having been approved on July 10, 2012
(M&C C-25674).
The County uses a standard Agreement with all of the taxing entities for which it collects taxes. Terms of
the Agreement for Fiscal Year 2014 are the same as those for the current fiscal year with the exception of
cost.
In previous years, The County has used a cost structure involving a single standard per-account
cost. However, as the City has expanded, The County has 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 2014, The County is changing
to a cost structure with two parts - one for accounts where the property is located within Tarrant County
and another for accounts where the property is located outside the County.
The cost for each in-county account is increasing from the amount of$0.90 to $1.10. Even with the
increase, the per-account cost is less than that in the counties of Dallas (the amount of$1.32 per
account), Bexar(the amount of$1.26 per account), and Johnson (the amount of$1.20 per account). The
estimated number of accounts in Tarrant County is 414,967, resulting in an estimated cost of
approximately $456,463.00 for these accounts for the fiscal year, The fee for out-of-county accounts is in
the amount of$2.60 per account. The estimated number of accounts outside of Tarrany County is 5,960,
resulting in an estimated cost of approximately $15,496.00 for these accounts for the fiscal year.
Logname: 13TARRANTC0 13 Pagel of 2
The total cost for Fiscal Year 2014 for all accounts will be approximately $471,960.00 for 420,927
accounts. The number of total accounts being serviced has increased by 15.6 percent from last
year. Staff is satisfied that the proposed rate is reasonable.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that funds will be included in the City Manager's
Proposed 2014 Budget in the General Fund.
FUND CENTERS:
TO Fu nd/Accou nt/C enters FROM Fund/Account/Centers
GG01 539120 0134010 $471,960.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Lisa Parks (6630)
ATTACHMENTS
1. tarrant County Tax Contract Revised.pdf (CFW internal)
Logname: 13TARRANTC013 Page 2 of 2