1994-113-RES WHEREAS, the City of Paris has need for tax assessment and collection services and the LAMAR COUNTY
RESOLUTION NO.
94-113
WHEREAS, the City of Paris has need for tax assessment and collection services and
the LAMAR COUNTY APPRAISAL DISTRICT has made a proposal for said services; and,
WHEREAS, it is deemed to be in the best interest of the City of Paris that such
Contract for Assessment And Collection Service in the form of Exhibit A attached hereto and
made a part hereof be approved; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, that the
proposal of the LAMAR COUNTY APPRAISAL DISTRICT for tax assessment and collection
services described in Exhibit A attached hereto, be, and the same is hereby, accepted; and,
BE IT FURTHER RESOLVED, that the Mayor of the City of Paris, Don Shelton, be,
and he is hereby, authorized and directed on behalf of the City of Paris to execute the Contract
For Assessment and Collection Service between the City of Paris and LAMAR COUNTY
APPRAISAL DISTRICT, attached hereto as Exhibit A.
PASSED AND ADOPTED this 12th day of September, 1994.
)/~~
Don Shelton, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
J~A
T. K. Haynes, City Attorney
CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE
STATE OF TEXAS }
COUNTY OF LAMAR }
THAT, the City of Paris, Paris, Texas, acting by and through its Mayor, Don
Shelton, duly authorized, hereinafter called CITY and Lamar County Appraisal District,
acting by and through its Chairman, Alan Weatherford, duly authorized, hereinafter called
LCAD do hereby contract and agree as follows:
1. PURPOSE
Pursuant to the authority granted by Section 6.24, Texas Property Tax Code,
and V.T.C.A. Government Code Chpt. 791, the parties agree that LCAD will assess and
collect ad valorem taxes on behalf of CITY, according to the terms and conditions recited
herein.
KNOW ALL MEN BY THESE PRESENTS:
2. TERMS
I) This contract shall become effective on the 1st day of October, 1994, and
shall continue in full force for each fiscal year thereafter and remain in effect until such
time as either party delivers written notice of termination, such notice to be given no later
than July I of the calendar year in which the contract is to terminate, said fiscal year shall
begin on the 1st day of October and end on the 31st day of September.
2) In the event of expiration of this contract, LCAD shall furnish to CITY
duplicates of all records kept in connection with the collection of CITY's ad valorem
taxes, so as to enable CITY to proceed to collect those taxes and applicable penalties,
interest and costs. Such records information to be delivered to CITY no later than the 1st
day of August of the year of termination and LCAD will continue to update such
information as such becomes available through the last day of such termination fiscal year.
CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Page I
EXHIBIT A
3. SERVICES TO BE PERFORMED
I) LCAD agrees to prepare and timely mail all tax statements; provide monthly
collection report to CITY; prepare tax certificates; develop and maintain current and
delinquent tax rolls for CITY; and develop and maintain such other records and forms as
are necessary or required by Law or State rules and regulations. LCAD agrees to make
available to the CITY full information about the operation of LCAD and to promptly
furnish written reports reasonably necessary to keep the CITY advised of all financial
information affecting it.
2) CITY agrees to promptly notify LCAD of the adoption of any exemption
not automatically imposed by the Law. Further, CITY will promptly notify LCAD of the
adoption of any other provision under Law which would affect the assessment or collection
of taxes for CITY.
3) The parties agree that the LCAD shall adopt CITY policy of not allowing
a discount for early tax payment or the split payment of taxes. The parties further agree,
and CITY expressly approves that the Chief Appraiser, in his capacity as tax collector for
CITY, may adopt a policy of accepting partial payments of ad valorem taxes. Such policy
shall include a provision to accept payment of taxes imposed on a property by a taxing unit
separate from taxes imposed on that property by any other taxing unit that contracts with
LCAD for collection services. Such policy shall also include a provision to accept partial
payments of property taxes under the following conditions; (I) the property taxes are
delinquent; (2) the property owner can prove financial inability to pay the taxes in full; and
(3) the property owner enters into a payment agreement with LCAD.
CONTRACT FOR ASSESSMENT AND COLLECI'JON SERVICE. Pase 2
4. DEPOSIT OF COLLECTION RECEIPTS
I) The taxes collected and receipted by LCAD for CITY shall be deposited by
LCAD into a depository and account designated in writing by CITY. Such deposits shall
be made three times per week during the term of this contract or any extension thereof.
5. DELINOUENT TAX COLLECTIONS
1) CITY agrees to deliver or make available to LCAD all delinquent tax
records necessary for the performance of the assessment and collection duties herein
specified. CITY herein expressly agrees to assume all costs required to furnish such
records.
2) The parties agree that CITY shall retain authority to contract with legal
council to enforce the collection of delinquent ad valorem taxes for CITY's delinquent
accounts. The parties further agree that the CITY's legal council shall have responsibility
for all enforced delinquent collections including but not limited to foreclosure of tax liens,
judgment and sale of property.
3) LCAD shall make the delinquent tax records available to CITY's delinquent
tax collection attorney on or before July I of each year this contract remains in affect. All
costs associated with records transmitted and enforced delinquent collection shall be
payable by the delinquent tax collection attorney.
4) Fees payable to the delinquent tax collection attorney, as provided by
Section 33.07 and 33.48, Texas Property Tax Code, as amended, shall be payable by
CITY with all bills for delinquent tax collection attorney's fees being submitted to CITY
for payment.
CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE _ Pale 3
6. REFUNDS
LCAD shall provide periodic reports of all refunds issued on behalf of CITY.
CITY herein expressly grants LCAD authority to designate an "auditor" for the purpose
of functions described under Section 31.11, Texas Property Tax Code and authorize LCAD
to make refunds in amounts not to exceed $500.00. CITY shall retain authority to approve
refunds in amounts that exceed $500.00.
7. PAYMENTS
I) CITY shall make payments to LCAD for the performance of the services
specified herein in accordance with EXHIBIT" A " attached hereto. Payment, for all years
this contract remains in effect, shall be made in four equal payments to be made at the end
of each calendar quarter, and the first payment shall be made before the first day of the
fiscal year in which the budget takes effect.
2) In the event that payments received in anyone year exceed the actual cost
of providing services pursuant to this contract, LCAD shall either reimburse CITY or
credit future payments to be made by CITY to the extent of excess funds.
3) Reimbursements or credits shall be distributed in the same pro rata share as
payments were made in the year in which payments exceed actual costs.
4) The parties agree that other taxing units may contract with LCAD for tax
collection services. The parties further agree that costs shall be allocated to participating
taxing units on a per current collection account basis.
5) Should CITY fail to adopt its tax rate by August 31st of the tax year or if
CITY's adopted tax rate is rolled back, any additional costs that may be incurred by
LCAD shall be strictly accounted for by LCAD and shall be payable by CITY upon
CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Pase 4
submission of the accounting by LCAD. Additional costs may include but are not limited
to, additional publications, notices, late or separate tax bill processing, issuance of
corrected tax bills, tax refunds, or any other required functions.
8. BUDGET ADOPTION
Each year, LCAD shall prepare a proposed collection budget for the following year
and must submit a copy of the proposed collection budget to the presiding officer of the
CITY on or before June 15. LCAD shall hold a public hearing to consider the budget and
shall deliver written notice of the date, the time and place of the hearing not later than the
10th day before the date of the hearing. LCAD shall complete its hearing and finally
approve a budget before August 15. If governing bodies of a majority of the taxing units
participating in a collection contract with LCAD adopt resolutions disapproving a budget
and file them with LCAD within thirty (30) days after its adoption, the budget does not
take effect and LCAD shall adopt a new budget within thirty (30) days of the disapproval.
9. BONDING
LCAD agrees to provide a surety bond covering LCAD's Chief Appraiser, acting
in his capacity as tax assessor-collector for CITY, and all employees of LCAD engaged
in the collection, receiving and disbursement of moneys on behalf of CITY, securing their
faithful performance of their duties. Said bond shall be in an amount of at least
$100,000.00.
10. AUDIT
LCAD shall provide for an annual independent audit of its expenditures and of
taxes collected as provided by this contract. Such accountant shall be authorized and
directed to report directly to CITY's governing body.
CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Pase .5
11. NO LIABILITY CLAUSE
LCAD shall not be liable to CITY because of any failure to collect taxes nor shall
the Chief Appraiser be liable unless the failure to collect results from a failure on his part
to perform, in good faith, the duties imposed upon him by Law or by this contract.
Also, there shall be no liability of LCAD to CITY for any of its actions unless said
actions involve collusion, fraud, malfeasance, or gross negligence.
12. NOTICES
Any written notice required or permitted under the terms of this Agreement shall
be given and be deemed to have bene duly served if either (I) delivered in person to the
designated representative of the party for whom it is intended, or (2) deposited first class
mail, postage prepaid in the United States mail, addressed to the respective parties, as
indicated below:
LCAD
CITY
Joe Welch
Chief Appraiser
Lamar County Appraisal District
P. O. Box 400
Paris, TX 75460
W. E. Anderson
Assessor/Collector
City of Paris
119 N. Main Street
Paris, Texas 75460
13. SEVERABILITY
If any term or provision of this Agreement shall be declared unconstitutional or
void by any court of competent jurisdiction, the constitutionality and validity of the
remainder of said Agreement shall not be affected thereby, and to this end the terms and
provisions of said Agreement are declared to be severable.
C'ONTRAC'T FOR ASSESSMENT AND COLLECTION SERVICE - Page 6
14. RELATIONSHIP OF PARTIES
Nothing contained in this Agreement shall be deemed or construed to create the
relationship of principal and agent, partnership, joint venture, landlord and tenant, or any
relationship or association whatsoever between CITY and LCAD, other than as expressly
set forth herein.
THIS AGREEMENT is executed this 12th day of September, 1994, pursuant to
enabling resolution adopted by the governing body of each party.
CITY OF PARIS, PARIS, TEXAS
ATTEST:
Don Shelton, Mayor
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
T. K. Haynes, City Attorney
LAMAR COUNTY APPRAISAL DISTRICT
Alan Weatherford, Chairman
ATTEST:
Bobby Smallwood, Secretary
CONTRACT FOR ASSESSMENT AND COLLECfION SERVICE - hAc 7