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HomeMy WebLinkAbout064360 - General - Contract - Tarrant County Tax Assessor CollectorCSC No. 64360 STATE OF TEXAS Agreement for Collection of Taxes COUNTY OF TARRANT Agreement made this __ __day of 6A i , 2025, 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 Fort Worth hereinafter referred to as CITY, whose address is 100 Fort Worth Trail, Fort Worth, TX 76102. PURPOSE OFAGREEMENT 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 areas 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 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: Assessment Roll Summary (Totals Only) Year -to -Date Summary Report Detail Collection Summary Report Distribution Summary Report Detail Collection Summary by Year Entity Revenue and Expense Reports — as required by Property Tax Code Sec 3 1. 10 Delinquent Tax Attorney Tape, which includes Assessments Annual: Certified Tax Roll Paid Assessment Roll Delinquent Assessment Roll Current Assessment Roll The following weekly reports are available upon request only and provided via email: Weekly: Detail Collection Summary Report Detail Collection Summary by Year OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Page 1 of 4 III. COMPENSATION In consideration of the services to be performed by the ASSESSOR/COLLECTOR, CITY will compensate the ASSESSORICOLLECTOR for the services rendered at a rate of one dollar and seven cents ($1.07) per account located within Tarrant County, two dollars ($2.00) per account located outside Tarrant County, and two dollars ($2.00) per account for Special Assessments (PIDs, MUDS, MMDs, BIDs). The ASSESSOR/COLLECTOR reserves the right to increase these rates for services performed by no more than 3% per year at its sole discretion for the duration of this contract. If the ASSESSOR/COLLECTOR institutes such an increase, the increase will begin as of October 1, 2026, for the duration of that collection year. Further increases will be reviewed and instituted on an annual basis. The number of accounts billed will be based on the ending number of accounts on the certified roll as of September 30' for the previous year as provided by the Appraisal District. The ASSESSOR/COLLECTOR will invoice for these accounts by January 31 of each contract year with payment to be received from the CITY by February 28 of each contract year. 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. Ili 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. 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 ASSESSOWCOLLECTOR 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 the third Monday in September of each year of the contract. 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 famished in writing to the ASSESSOR/COLLECTOR at the time of the initial contract. Vl. 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. VIl. 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. ASSESSOWCOLLECTOR has the authority to temporarily suspend payments to City of Fort Worth due to unforeseen or unanticipated circumstances. VIII. Page 2 of 4 IIWESTMENT 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 will be 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 ASSESSOWCOLLECTOR 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 ASSESSOWCOLLECTOR 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 ASSESSOWCOLLECTOR will disburse the amount directly to the 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 through the 2027 tax year, unless sooner terminated by providing sixty (60) day written notice, as outlined in paragraph XII. XU 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 Page 3 of 4 this address by notice in accordance with this paragraph. P.14110 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 day and year first above written, Tarrant County, Texas. BY. /*� t - CKBARNES DATE TAX ASSESSOR/COLLECTOR TARRANT COUNTY RDBarnes@tarranteountytx.gov FOR CITY O�F—TWORTH. l BY. �:���) f DA TE TITLE: NC A Qt �, W EMAIL: 1�>/L ���-r�'ki-Pk4s.�O✓ FOR TARRANT COUNTY.• BY: TIM O'HARE DATE TARRANT COUNTYJUDGE APPROVE AS ��FOI BY.• CRIMI L DISTRICT ATTORNEY'S OFFICE* DATE *By law, the Criminal District Attorney's Office may only approve contracts for its clients. We reviewed this document as to form from our client's legal perspective. Other parties may not rely on this approval. Instead, those parties should seek contract review from independent counsel. Page 4 of 4 2. Consideration of Contracts between Tarrant County, d/b/a Tarrant County Tax Assessor -Collector and Entities Within Tarrant County Including Cities, Towns, School Districts and Special Districts for the Collection of Ad Valorem Taxes PASSED AND APPROVED on September 16, 2025. COUNTY OF TARRANT STATE OF TEXAS Tim O'Hare County Judge October 1, 2025 4:14 PM APPROVED AS TO FORM: Signed by Mark Kratovil on October 2, 2025 8:43 AM District Attorney's Office* *By law, the District Attorney's Office may only approve contracts for its clients. We reviewed this document as to form from our client's legal perspective. Other parties may not rely on this approval. Instead, those parties should seek contract review from independent counsel. CERTIFICATION OF FUNDS IN THE AMOUNT OF N/A Sianied bN, Kimberly Buchanan on Set terilber 30. 2025 =:1 3 PN,-1. County Auditor Executed effective as of the date signed by the City Manager above. ACCEPTED AND AGREED: CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: By: Name: Title: 4/1— Reginald Zeno (Nov 11, 202516:58:37 CST) Reginald Zeno Chief Financial Officer Approved as to Form and Legality: BY: Name: Taylor C. Paris Title: Sr. Assistant City Attorney Contract Authorization: M&C: 25-0669 Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. ie By. Jay( y VL"/ ge/\YG�VC/25 rt:14:59 CST) Name: Jay Rutledge Title: Financial Services Manager, Treasury City Secretary: d4-W -:545! FORT 1 44 a�. o'Pion 0 ado 0 By: g ��o o Name: Jannette S. Goodall 0, �. 0oo Title: City Secretary 0 0 N4 nEXA?a�p OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX M&C Review Page 1 of 2 Official site of the City of Fort Worth, Texas CITY COUNCIL AGENDA FoRTIr- WO RT H Create New From This M&C DATE: 8/12/2025 REFERENCE **M&C 25- LOG NAME: 13TARRANTCOTAXCOLL25-27 NO.: 0669 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (ALL) Authorize the Execution of Agreements with Tarrant County and the Tarrant County Tax Assessor/Collector for Tax Years 2025-2027 (Fiscal Years 2026-2028) for Assessment and Collection of Ad Valorem Taxes and Special Assessments Levied by the City of Fort Worth with the Curent Year's Cost Being One -Dollar and Seven Cents ($1.07) Per Tax Account Located within Tarrant County, Two -Dollars ($2.00) Per Tax Account Located Outside Tarrant County, and Two -Dollars ($2.00) Per Assessment Account for Special Assessments RECOMMENDATION: It is recommended that the City Council authorize the execution of agreements with Tarrant County and the Tarrant County Tax Assessor/Collector for Tax Years 2025-2027 (Fiscal Years 2026-2028) for the assessment and collection of ad valorem taxes and special assessments levied by the City of Fort Worth at a rate of $1.07 per tax account for located within Tarrant County, two -dollars ($2.00) per tax account located outside Tarrant County, and two -dollars ($2.00) per assessment account for special assessments. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize engaging Tarrant County and the Tarrant County Tax Assessor/Collector (County) to provide assessment and collection services for ad valorem (property) taxes and special assessments levied by the City of Fort Worth. The City Council has designated the County to act as the agent of the Financial Management Services Department by providing these services for many decades. The agreement for the current fiscal year, which correlates to tax year 2024, was approved on August 9, 2022 (M&C 22-0562). The County uses a standard agreement with all of the taxing entities for which it collects taxes and assessments. Prior to 2013, the County used a cost structure involving a single standard per account cost. As the City has grown, 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 Tax Year 2025 (Fiscal Year 2026), the County is proposing an increase to the current per account charge from ninety-eight cents ($0.98) to one dollar and seven cents per tax account located within Tarrant County. The charge for tax accounts located outside Tarrant County will remain the same at two -dollars ($2.00) each as will the per -account charge for Special Assessments (PIDs, MUDs, MMDs, BIDs). The number of accounts billed will be based on the ending number of accounts on the certified roll as of September 30th for the previous year as provided by the Appraisal District. The per -account charge for accounts within the County continues to be the lowest collection fee rate of any urban county in Texas. This is the first rate increase in eight years. Also within the new agreement, the assessor/collector reserves the right to increase these rates by no more than 3\% per year at its sole discretion for the duration of this contract. If the assessor/collector institutes such an increase, the first increase would be effective as of October 1, http://apps.cfwnet.org/council packet/mc review. asp?ID=33530&councildate=8/12/2025 8/13/2025 M&C Review Page 2 of 2 2026 or 2025, for the duration of that collection year. Further increases will be reviewed and instituted on an annual basis. The number of property tax accounts (in -county and out -of -county) has experienced an average increase of approximately 2.8\% annually while the number of special assessment accounts (in - county and out -of -county) has remained relatively flat over the last three years. There will be two separate agreement documents: one for the assessment and collection of ad valorem (property) taxes and another for the assessment and collection of special assessments by the various Public Improvement Districts (PIDs) located throughout the City. The Financial Management Services Department will be responsible for contract compliance matters relating to the agreement for the assessment and collection of ad valorem taxes. The Fort Worth Lab will be responsible for contract compliance matters relating to the agreement for the assessment and collection of PID assessments. Funding will be budgeted in the Other Contractual Services account within the General fund for the Financial Management Services & Economic Development Departments for Fiscal Year 2026. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and the adoption of the Fiscal Year 2026 Budget by the City Council, funds will be available in the Fiscal Year 2026 operating budget, as appropriated, in the General Fund. Prior to an expenditure being made, the Financial Management Services Department has the responsibility to validate the availability of funds related to the assessment and collection of ad valorem taxes and the Economic Development Department has the responsibility to validate the availability of funds related to the assessment and collection of special assessments. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID I I I Year Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Reginald Zeno (8517) Originating Department Head: Reginald Zeno (8517) Additional Information Contact: Alex Laufer (2268) ATTACHMENT 13TARRANTCOTAXCOLL26-28 FID TABLE.xlsx (CFW Internal) Contract for Ad Valorem Taxes.pdf (Public) Contract for Special Assessments.pdf (Public) http://apps.cfwnet.org/council packet/mc review. asp?ID=33530&councildate=8/12/2025 8/13/2025 FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Tarrant County Tax Assessor/Collector Subject of the Agreement: Valorem taxes levied by the City. Assessor/Collector will provide assessment and collection services of Ad M&C Approved by the Council? * Yes 8 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑ No 8 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No 8 If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No 8 If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: 10/01 /2025 If different from the approval date. Expiration Date: 9/30/2028 If applicable. Is a 1295 Form required? * Yes ❑ No 8 *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 8 No ❑ Contracts need to be routed for CSO processing in the followingorder: rder: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.