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Chapter 2
Findings of the Appraisal Standards Review

This chapter of the report addresses findings, commendations and recommendations from the appraisal standards review of the Parker CAD in five sections:

2.1 Governance and Management
2.2 Generally Accepted Appraisal Practices
2.3 Resources and Management
2.4 Information Processing and Data Collection
2.5 Assessment Administration

2.1 Governance and Management

The quality of the property tax system depends largely on the appraisal district's board of directors (board). The board should provide knowledge, judgment and expertise in establishing policies and procedures for the district's organization and operation.

The Parker CAD's board consists of five members as shown in Exhibit 6.

Exhibit 6
Parker CAD Board of Directors Members
Board Member Entity Member Represents Start Date Occupation Elected Official (Yes or No)
Warner Killough, Chairman Weatherford ISD 2000 Retired Lockheed Real Estate Agent No
Jerry Durant Weatherford ISD 2000 Owner- Auto Dealership No
Whitt Coffield Aledo ISD 2002 CPA No
K. K. LaFleur Parker County 2004 Owner- LaFleur Petroleum No
Steve Harris City of Weatherford Smaller ISD's 2006 Owner-Construction Co. No
Source: Parker CAD, January 2006.

The board has the following primary responsibilities:

  • establish the appraisal district's appraisal office;
  • adopt the appraisal district's annual operating budget;
  • approve appraisal contracts;
  • hire a chief appraiser;
  • hire a taxpayer liaison officer (in counties with a population of more than 125,000);
  • appoint appraisal review board members; and
  • set general policy on the appraisal district's operation.

The Comptroller's office asked the board to complete a written survey about its activities. Three of the five board members responded. The survey is broken down into board policies and procedures; chief appraiser and staff; property appraisals; appraisal review boards; and budgeting and financial management. Board members who responded gave Parker CAD good marks and noted no problems.

FINDING
Parker CAD has a new office building which was specifically designed to serve the needs of the CAD staff and county taxpayers and to address security and access to records issues.

The previous office building was crowded and lacked adequate space for workers. The collections area was open to the public and the collections area was not secure. The facility could not effectively accommodate taxpayers needing access to CAD records since there was not space for enough computers for public use. The location did not provide easy access or parking for workers and taxpayers. The ARB hearing facilities were inadequate for the fast growing population. There was no room for expansion and the building did not serve the needs of the CAD.

The new CAD office was completed in 2002 with over 13,500 square feet of office space. The location of the new office is convenient for taxpayers as it is situated next to the County Courthouse Annex and across the street from the post office. The building sits on a three acre tract which provides for the possibility of expansion if needed.

Included with the new office was new office furniture, computer network with 40 workstations, copy machines, facsimile machines, complete mail department, scanners, digital cameras and file cabinets.

The design and layout of the building provides not only for public service, but also safety and security for the staff. The new building has a drive-up window for taxpayers to pay their taxes or drop off exemption forms. Inside the building, taxpayers wishing to pay taxes are restricted to walk-up windows which provide security to the collections department. The office also includes a public access room with computers for taxpayers needing access to CAD records.

In addition, the office layout reinforces the organizational design of the CAD as each department is located together. Such a departmentalized design encourages teamwork, minimizes distractions and facilitates an efficient workflow.

The new office also provides for a large, state of the art, board room which includes computer data ports, a projector and telephones. The 13,500 square feet of office space includes some vacant office space which will be used when additional staff is needed.

IAAO Standard on facilities, computers, equipment and supplies states that assessment offices must have the facilities, tools and other resources needed for cost-effective performance of the assessment function. Office facilities should be clean, attractive and sufficiently spacious to provide comfortable workspace for each employee.

With the board's support and the approval of the taxing units and citizens of Parker County, the CAD has a facility that is professional in appearance and provides a good working environment for the staff.

COMMENDATION
Parker CAD's office building is a state of the art facility that provides for the needs of the taxpayers and CAD staff.

FINDING
Parker CAD's budget lacks the detail necessary to comply with Section 6.06, Tax Code.

This provision requires an appraisal district to list in its budget:

  • each proposed position with associated salary and benefits;
  • each proposed capital expenditure; and
  • an estimate of the amount of the budget allocated to each taxing unit.

The Parker CAD budgets for 2004, 2005 and 2006 show each proposed capital expenditure as well as an estimate of the budget amounts allocated to each taxing unit.

The budgets for the years 2004, 2005 and 2006 contain a section entitled salaries and a section entitled benefits. The salaries section is divided by department subheadings (administrative, appraisal, collections, mapping and records). A listing of each staff position is included under each department subheading. Each of the budgets reviewed contained the current year and upcoming year salaries associated with each staff position. The benefits section of each budget was divided into health insurance, dental insurance, life insurance and retirement.

The 2004, 2005 and 2006 budgets included a listing of each proposed position and corresponding salaries; however, those budgets failed to list the benefits for each position.

Exhibit 7 presents Parker CAD's 2004-06 adopted budgets.

Exhibit 7
Parker CAD Adopted Budgets
2004 through 2006
  2004 Budget Percent 2005 Budget Percent 2006 Budget Percent Percentage Increase
(Decrease) 2004-2006
Salaries
Administration
Chief Appraiser $90,750 4.47 $100,000 4.63 $105,000 4.40 16
Administrative Assistant 35,890 1.77 35,890 1.66 40,600 1.70 13
Appraisal
Deputy Chief Appraiser 64,325 3.17 68,000 3.15 78,000 3.27 21
Director Personal Property 46,800 2.30 51,800 2.40 49,900 2.09 7
Appraiser IV 46,800 2.30 48,800 2.26 51,400 2.15 10
Appraiser IV 39,000 1.92 47,500 2.20 49,900 2.09 28
Appraiser IV 39,000 1.92 47,500 2.20 47,500 1.99 22
Appraiser IV 39,000 1.92 38,000 1.76 0 0 -100
Appraiser III 34,650 1.64 34,000 1.57 35700 1.49 3
Appraiser III 27,040 1.33 0 0 0 0 -100
Appraiser II 0 0 0 0 30,300 1.27 100
Appraiser II 0 0 0 0 29,700 1.24 100
Appraiser I 26,000 1.28 28,500 1.32 29,700 1.24 14
Appraiser I 26,000 1.28 28,500 1.32 29,700 1.24 14
Appraiser I 0 0 28,500 1.32 0 0 0
Appraisal Clerk 20,280 1.00 0 0 0 0 -100
Appraisal Clerk 19,240 0.95 0 0 0 0 -100
Appraisal Clerk 19,240 0.95 0 0 0 0 -100
Appraisal Analyst 0 0 24,700 1.14 26,400 1.11 100
Appraisal Analyst 0 0 22,700 1.05 24,500 1.03 100
Appraisal Analyst 0 0 21,500 0.99 22,400 0.94 100
ARB Coordinator 0 0 32,450 1.50 33,400 1.40 100
Exemption Coordinator 0 0 0 0 28,600 1.20 100
Overtime/Comp. Time 0 0 0 0 5,000 0.21 100
Collections
Collections Supervisor 32,450 1.54 36,000 1.67 37,200 1.56 15
Collection Deputy 24,920 1.23 26,800 1.24 28,600 1.20 15
Collection Deputy 24,075 1.19 26,800 1.24 25,200 1.06 5
Collection Deputy 21,500 1.06 24,800 1.15 25,200 1.06 17
Collection Deputy 21,500 1.06 24,000 1.11 23,400 0.98 9
Collection Deputy 20,425 1.01 22,500 1.04 22,300 0.93 9
Collection Deputy 19,240 0.95 21,500 0.99 0 0 100
Telephone Receptionist 18,870 0.93 20,500 0.95 1,300 0.89 13
Agency Bookkeeper 28,030 1.38 32,500 1.50 33,000 1.38 18
Assistant Bookkeeper 20,800 1.02 22,500 1.04 24,100 1.01 16
Computer Operator 33,075 1.63 0 0 0 0 -100
Mapping
Director of Mapping 42,705 2.10 44,000 2.04 45,300 1.90 6
Mapping Assistant 42,080 2.07 38,000 1.76 39,500 1.65 -6
Mapping Assistant 33,950 1.67 0 0 0 0 100
Director Information Systems 0 0 46,500 2.15 48,800 2.04 100
Records
Records Supervisor 28,660 1.41 30,000 1.39 31,000 1.30 8
Records Analyst 23,000 1.13 24,000 1.11 26,300 1.10 14
Records Analyst 22,150 1.09 23,000 1.06 24,200 1.01 9
 
Subtotal 1,030,860 50.75 1,121,750 51.89 1,173,100 49.12 14
Benefits
Insurance (Health) 147,165 7.24 140,000 6.48 148,000 6.20 1
Insurance (Dental) 15,000 0.74 16,500 0.76 16,850 0.71 12
Insurance (Life) 7,500 0.37 7,500 0.35 6,000 0.25 -20
Retirement 123,700 6.09 205,000 9.48 235,000 9.84 90
Federal and State Expenses
Workman's Compensation 4,500 0.22 4,500 0.21 5,500 0.23 22
FICA/Medicare 9,500 0.47 12,000 0.56 12,000 0.50 26
Unemployment 4,000 0.20 4,000 0.16 7,000 0.29 75
Total Payroll Expenses 1,342,225 66.07 1,511,250 69.91 1,603,450 67.14 19
Purchased and Contracted Services
Internet Services 6,500 0.32 4,000 0.19 6,500 0.27 0
Legal Services 40,000 1.97 40,000 1.85 35,000 1.47 -13
Audit Services 30,000 1.48 30,000 1.39 25,000 1.05 -17
Valuation Engineers 2,000 2.56 57,000 2.64 57,000 2.39 10
Computer Hardware & System Software 60,000 2.95 60,000 2.78 60,000 2.51 0
Mapping Expense 7,000 0.34 7,000 0.32 130,000 5.44 1,757
Outside Support Services 4,000 0.20 4,500 0.21 4,500 0.19 13
Support Services 5,000 0.25 2,000 0.09 1,000 0.04 -80
Appraisal Review Board 8,000 0.39 15,000 0.69 $16,800 0.70 110
Security Courier 1,800 0.09 1,800 0.08 2,400 0.10 33
Janitorial Services 15,000 0.74 15,000 0.69 15,000 0.63 0
Building Maintenance 7,500 0.37 7,500 0.35 12,000 0.50 60
Computer Maintenance 1,500 0.07 100 0.005 500 0.02 -67
Office Equipment Repair and Maintenance 3,000 0.15 500 0.02 1,500 0.06 -50
Total Purchased and Contracted Services 241,300 11.88 244,400 11.31 367,200 15.38 52
General Operating
Water 12,000 0.59 7,000 0.32 6,000 0.25 -50
Telephone 30,000 1.48 30,000 1.39 22,000 0.92 -27
Electricity 16,000 0.79 16,000 0.74 17,000 0.71 6
Gas 6,000 0.30 4,000 0.19 2,000 0.08 -67
Office Equipment Rental 7,500 0.37 32,000 1.48 31,500 1.32 320
Books and Pamphlets 1,000 0.05 1,000 0.05 1,000 0.04 0
Postage 48,000 2.36 48,000 2.22 48,000 2.01 0
Data Processing Supplies 7,500 0.37 7,500 0.35 7,500 0.31 0
General Office Supplies 5,000 0.25 5,000 0.23 7,000 0.29 40
Printing 25,000 1.23 5,000 0.23 10,000 0.42 -60
Field Supplies 1,000 0.05 1,000 0.05 1,000 0.04 0
Drafting Supplies 1,000 0.05 1,000 0.05 1,000 0.04 0
Freight 750 0.04 750 0.03 900 0.04 20
Janitorial Supplies 2,500 0.12 2,500 0.12 3,000 0.13 20
Miscellaneous Supplies 2,000 0.10 1,500 0.07 1,800 0.08 -10
Auto Allowance 65,400 3.22 65,400 3.03 76,200 3.19 17
Travel and Training 15,000 0.74 15,000 0.69 15,000 0.63 0
Insurance Expenses 10,000 0.49 10,000 0.46 12,000 0.50 20
Fee, Dues, Registration 4,500 0.22 4,500 0.21 5,000 0.21 11
Public and Legal Notices 1,200 0.06 500 0.02 500 0.02 -58
Director's Expenses 1,500 0.07 1,500 0.07 1,000 0.04 -33
Total General Operating 262,850 12.94 259,150 11.99 269,400 11.28 2
Capital Outlays
Furniture 2,000 0.10 2,000 0.09 2,000 0.08 0
Equipment 8,000 0.39 5,000 0.23 5,000 0.21 -38
Building 150,000 7.38 140,000 6.48 141,000 5.90 -6
Total Capital Outlays 160,000 7.88 147,000 6.80 148,000 6.20 -8
Reserve for Contingency 25,000 1.23 0 0 0 0 -100
 
Grand Total $2,031,375 100% $2,161,800 100% $2,388,050 100% 18%
Source: Parker CAD, 2004 Budget, 2005 Budget, 2006 Budget.

The Parker CAD approved appraisal budgets are shown in Exhibit 8.

Exhibit 8
Parker CAD Approved Appraisal Budgets
2004-2006
Category 2004 2005 % Difference 2006 % Difference
Salaries $824,688 $897,400 8.10% $938,480 4.38%
Group Insurance Health 117,732 112,000 -5.12% 118,400 5.41%
Group Dental 12,000 13,200 9.09% 13,480 2.08%
Group Life 6,000 6,000 0.00% 4,800 -25.00%
Workman's Compensation 3,600 3,600 0.00% 4,400 18.18%
FICA/Medicare Tax 7,600 9,600 20.83% 9,600 0.00%
Unemployment 3,200 3,200 0.00% 5,600 42.86%
Retirement 98,960 164,000 39.66% 188,000 12.77%
Internet Services 6,500 4,000 -62.50% 6,500 38.46%
Legal Services 40,000 40,000 0.00% 35,000 -14.29%
Audit Services 15,000 10,000 -50.00% 8,250 -21.21%
Valuation Engineers 52,000 57,000 8.77% 57,000 0.00%
Computer Hardware & System Software 30,000 30,000 0.00% 30,000 0.00%
Mapping Expense 7,000 7,000 0.00% 130,000 94.62%
Outside Support 4,000 4,500 11.11% 4,500 0.00%
Support Services 4,000 1,500 -166.67% 750 -100.00%
Appraisal Review Board 8,000 15,000 46.67% 16,800 10.71%
Security Courier 900 900 0.00% 1,200 25.00%
Janitorial Services 12,000 12,000 0.00% 12,000 0.00%
Building Maintenance 6,000 6,000 0.00% 9,600 37.50%
Computer Maintenance 1,500 100 -1400.00% 500 80.00%
Office Equipment Repair 1,500 500 -200.00% 500 0.00%
Water 7,800 4,550 -71.43% 3,900 -16.67%
Telephone 22,500 22,500 0.00% 16,500 -36.36%
Electricity 12,000 12,000 0.00% 12,750 5.88%
Gas 4,500 2,600 -73.08% 1,000 -160.00%
Office Equipment Rental 5,625 24,000 76.56% 23,625 -1.59%
Books & Pamphlets 1,000 1,000 0.00% 1,000 0.00%
Postage 24,000 24,000 0.00% 24,000 0.00%
Data Processing Supplies 3,750 3,750 0.00% 3,750 0.00%
General Office Supplies 3,750 3,750 0.00% 5,250 28.57%
Printing 12,500 2,500 -400.00% 5,000 50.00%
Field Supplies 1,000 1,000 0.00% 1,000 0.00%
Drafting Supplies 1,000 1,000 0.00% 1,000 0.00%
Freight 250 250 0.00% 300 16.67%
Supplies Janitorial 1,500 1,500 0.00% 1,800 16.67%
Misc Supplies 2,000 1,500 -33.33% 1,800 16.67%
Auto Allowance 65,400 65,400 0.00% 76,200 14.17%
Travel, Training & Tuition 12,000 12,000 0.00% 12,000 0.00%
Chief Appraiser & Notary Bond 500 500 0.00% 500 0.00%
Public Employee Crime 325 325 0.00% 325 0.00%
Auto Insurance 100 100 0.00% 100 0.00%
Multi-Peril 8,050 8,050 0.00% 10,050 19.90%
Fees, Dues & Registration 4,500 4,500 0.00% 5,000 10.00%
Public & Legal Notices 800 300 -166.67% 300 0.00%
Director Expenses 1,500 1,500 0.00% 1,000 -50.00%
Furniture 2,000 2,000 0.00% 2,000 0.00%
Equipment 8,000 5,000 -60.00% 5,000 0.00%
Building 150,000 140,000 -7.14% 141,000 0.71%
Reserve for Contingency 25,000 0 0.00% 0 0.00%
  $1,643,530 $1,743,075 5.71% $1,951,510 10.68%
Source: Parker CAD 2004, 2005 & 2006 Budgets.

The Parker CAD approved collections budgets are shown in Exhibit 9.

Exhibit 9
Parker CAD Approved Collection Budgets
2004-2006
Category 2004 2005 % Difference 2006 % Difference
Salaries $206,172 $224,350 8.10% $234,620 4.38%
Group Insurance Health 29,433 28,000 -5.12% 29,600 5.41%
Group Dental 3,000 3,300 9.09% 3,370 2.08%
Group Life 1,500 1,500 0.00% 1,200 -25.00%
Worker's Compensation 900 900 0.00% 1,100 18.18%
FICA/Medicare Tax 1,900 2,400 20.83% 2,400 0.00%
Unemployment 800 800 0.00% 1,400 42.86%
Retirement 24,740 41,000 39.66% 47,000 12.77%
Internet Services 0 0 0.00% 0 0.00%
Legal Services 0 0 0.00% 0 0.00%
Audit Services 15,000 20,000 25.00% 16,750 -19.40%
Valuation Engineers 0 0 0.00% 0 0.00%
Computer Hardware & System Software 30,000 30,000 0.00% 30,000 0.00%
Mapping Expense 0 0 0.00% 0 0.00%
Outside Support 0 0 0.00% 0 0.00%
Support Services 1,000 500 -100.00% 250 -100.00%
Appraisal Review Board 0 0 0.00% 0 0.00%
Security Courier 900 900 0.00% 1,200 25.00%
Janitorial Services 3,000 3,000 0.00% 3,000 0.00%
Building Maintenance 1,500 1,500 0.00% 2,400 37.50%
Computer Maintenance 0 0 0.00% 0 0.00%
Office Equipment Repair 1,500 1,500 0.00% 1,000 -50.00%
Water 4,200 2,450 -71.43% 2,100 -16.67%
Telephone 7,500 7,500 0.00% 5,500 -36.36%
Electricity 4,000 4,000 0.00% 4,250 5.88%
Gas 1,500 1,400 -7.14% 1,000 -40.00%
Office Equipment Rental 1,875 8,000 76.56% 7,875 -1.59%
Books & Pamphlets 0 0 0.00% 0 0.00%
Postage 24,000 24,000 0.00% 24,000 0.00%
Data Processing Supplies 3,750 3,750 0.00% 3,750 0.00%
General Office Supplies 1,250 1,250 0.00% 1,750 28.57%
Printing 12,500 2,500 -400.00% 5,000 50.00%
Field Supplies 0 0 0.00% 0 0.00%
Drafting Supplies 0 0 0.00% 0 0.00%
Freight 500 500 0.00% 600 16.67%
Supplies Janitorial 1,000 1,000 0.00% 1,200 16.67%
Misc Supplies 0 0 0.00% 0 0.00%
Auto Allowance 0 0 0.00% 0 0.00%
Travel, Training & Tuition 3,000 3,000 0.00% 3,000 0.00%
Chief Appraiser & Notary Bond 700 700 0.00% 700 0.00%
Public Employee Crime 325 325 0.00% 325 0.00%
Auto Insurance 0 0 0.00% 0 0.00%
Multi-Peril 0 0 0.00% 0 0.00%
Fees, Dues & Registration 0 0 0.00% 0 0.00%
Public & Legal Notices 400 200 -100.00% 200 0.00%
Director Expenses 0 0 0.00% 0 0.00%
Furniture 0 0 0.00% 0 0.00%
Equipment 0 0 0.00% 0 0.00%
Building 0 0 0.00% 0 0.00%
Reserve for Contingency 0 0 0.00% 0 0.00%
  $387,845 $420,225* 7.71% $436,540 3.74%
Source: Parker CAD 2004, 2005 & 2006 Budgets.
*Reported as $418,725.

Taxing units are also required to maintain a copy of the budget for public inspection at its principal administrative office.

The board is required by law to hold a public hearing on the budget. The board held the public hearing for the 2004 budget on August 19, 2003. The public hearing for the 2005 budget was held on August 17, 2004 and the public hearing for the 2006 budget was held on August 16, 2005.

The CAD pays 100 percent of the employee's health insurance, dental insurance and life insurance. In addition, the CAD contributes to two retirement plans for the employees.

With about 66 percent of the 2006 budget going to wages and benefits, both taxing units and the public need the detail required by state law to be assured the number of CAD staff is sufficient to perform the work and that the staff is sufficiently compensated.

RECOMMENDATION 1
Expand the detail of the budget presented to the board for adoption to include associated benefits for each proposed position.

FINDING
Parker CAD's 2004-05 contract for external appraisal services did not include service delivery dates or a list of properties to be appraised and has at least one contract with an "evergreen clause" which is a non-expiring contract, but the CAD has recently begun to make changes to some contracts.

The CAD procures utilities, minerals and select industrial property appraisals from an outside appraisal firm. The chief appraiser indicated that Pritchard & Abbott, Inc. (P&A) has had a professional relationship with the CAD since 1984 and that the current contract is a two year term covering tax years 2004-05. The 2006-2007 contract was signed in May, 2006. Contracts should to be executed prior to the beginning of the contract year or contract period.

Payments under the 2004-05 contract total $52,000 for 2004 and $57,000 for 2005. The chief appraiser and P&A signed this contract on February 12, 2004.

The contract establishes what records the appraisal firm will provide the CAD including:

  • one copy of Recaps that show estimated value for each taxing unit;
  • one copy of the appraisal records;
  • two copies of notices of appraised value;
  • one copy of the appraisal roll for the appraisal district;
  • one copy of the appraisal roll for each of the taxing units; and,
  • one copy of division orders listing all current record owners of interests in oil and gas for the appraisal district and one copy for each taxing unit.

The contract further requires that the appraisal firm will make available the appraisals of the property covered by the contract and the supporting data relating to the appraisals.

The contract requires the appraisal firm to provide the following services:

  • appraise mineral, industrial, utility and personal properties for two years;
  • gather and compile data reasonably needed and available pertaining to the value of these properties;
  • furnish this data to the district for the purpose of equalizing valuations;
  • follow Sec. 23.01 of the Tax Code relating to USPAP;
  • compile specific formatted reports of data for the district;
  • provide copies of the appraisals along with supporting data to the district;
  • provide expert testimony to support the appraisals submitted to the Appraisal Review Board (ARB);
  • meet with taxpayers to review the appraisals;
  • meet with the ARB as needed;
  • generally assist the CAD in the equalization of values process;
  • provide additional services to the CAD and taxing units participating in the CAD are available at a rate mutually agreed upon; and
  • firm will support and defend values of these contract properties through the appropriate court at no additional charge.

The contract, however, failed to provide for a specific delivery date for the services.

In April 2006, the CAD took steps to correct this problem by executing a new P&A contract for the years 2006-07 that links deliverable services to quarterly installments. The contract was signed by the board in May, four months after the beginning of the contract period.

The chief appraiser indicated that Parker CAD has been doing business with the same appraisal firm since 1984 and there has never been a problem with the services. He believes that there is a very good relationship between the two organizations and that they have a long standing informal process for the delivery of services. The chief appraiser thinks that P&A understands that the notices of appraised values need to be delivered to the CAD by May 1 of each year and that P&A has always delivered the notices on time.

Exhibit 10 presents a summary of professional services contracts.

Exhibit 10
Parker CAD
Professional Service Contracts
Contract Services Provided Contract in Writing Key Terms and Conditions
Calame, Linebarger & Graham* Delinquent Tax Collection and Appraisal Related Legal Services Yes Yes
Southwest Data** Appraisal & Collection Software Yes Yes
Pritchard & Abbott Professional Appraisal Services Yes No
Applied Technology Services Website Management, Geographic Information System Yes Yes
Pictometry Aerial Maps Yes Yes
Source: Parker CAD, January 2006.
* Now Linebarger Blair Goggan & Sampson.
** Southwest Data software installed September 2005.

In order to get the appraisal roll ready each year, the CAD should have all of the appraisal information complete and in the appraisal system before the appraisal notices are mailed. Without dates for specific deliverables, the CAD would have no recourse to compel the vendor to perform the services within a prescribed timeframe.

The IAAO Standard on Contracting for Assessment Services, Section 5, requires that contracts have specific provisions, including the timeframes when services or goods will be delivered, payment provisions, required documentation and termination rights. Contract provisions establish the legal obligations of all parties with respect to any project.

The IAAO Standard on Contracting for Assessment Services, Section 5, requires monitoring contract performance. Without contract monitoring, the CAD cannot make a decision on the quality of services rendered by the contractor.

The CAD contracted with the law firm of Calame Linebarger & Graham (later Linebarger, Blair, Goggan & Sampson) for delinquent tax collection and appraisal related legal services beginning in 1981. Each contract term was for two years until 1990 and that contract was changed in 1990 to provide a term of two years beginning September 1, 1990 and thereafter, to continue on a month-to-month basis until such time as the CAD determines to end the agreement.

On January 7, 2006, the CAD entered into an updated automatically renewing contract with Linebarger Goggan Blair & Sampson that was approved and signed by the board to be effective February 1, 2006, and to continue until terminated by the CAD. Government entity contracts generally do not have "evergreen" clauses, clauses that provide for automatic renewal.

The chief appraiser related that the tax collection contract is monitored daily by CAD staff and a monthly activity report for all taxing entities is presented to the board, as reflected in the board minutes, reflecting monthly delinquent collections, delinquent tax suits and judgments filed and suits and judgments paid. The CAD does not have written procedures for monitoring contracts, making it difficult to assess whether contracts are monitored consistently.

Hansford CAD, for example, has an excellent process for managing and monitoring contracted services. Hansford CAD successfully prepares, manages and monitors its contracts while meeting IAAO contracting standards. The deputy chief appraiser and chief appraiser act as contract monitors for all contracts except the chief appraiser's, which is managed directly by the board. CAD management routinely reviews vendor performance and contract terms, requesting bids for services when needed to ensure receiving the best value at a reasonable cost. The CAD's adopted process ensures timely receipt of quality deliverables and timely payment according to contract terms.

RECOMMENDATION 2
Develop a review process for all contracts to ensure compliance with the IAAO Standard on Contracting for Assessment Services including service dates, key contract terms and written procedures for contract monitoring.

FINDING
Parker CAD does not have a written locally developed board manual in accordance with the Tax Code, but instead relies on the Tax Code and the Comptroller's Appraisal District Director's Manual which is published only as a guideline to be used by CADs in developing local manuals to meet local issues.

The chief appraiser advised that the CAD does not have a written locally developed board manual in accordance with the Tax Code, but instead relies on the Tax Code and the Comptroller's Appraisal District Directors Manual that is published only as a guideline to be used by CADs in developing their own local mauals to meet local issues. The absence of locally developed board policies leaves the CAD vulnerable to mismanagement of service contracts, hiring chief appraisers and the filing and resolution of public complaints.

The board has the following primary responsibilities:

  • establish the CAD's appraisal office;
  • adopt the CAD's annual operating budget;
  • contract for necessary services;
  • hire a chief appraiser;
  • hire a taxpayer liaison officer (CADs in counties having a population of over 125,000);
  • appoint appraisal review board members; and
  • make general policy on the CAD's operation.

Tax Code Section 6.04 requires the board to have specific written policies on selected matters.

Section 6.04(d) requires the board to develop a policy providing the public an opportunity to appear and speak at board meetings on any subject under the board's jurisdiction. The policy must provide reasonable time for the public to speak about appraisal district and appraisal review board procedures. The taxpayer liaison, if one is appointed, shall report to the board on the status of all complaints. The liaison officer, is also responsible for administering these procedures.

Section 6.04(e) requires the board to develop a written plan describing how non-English speaking and disabled persons have access to the appraisal district's programs. At a minimum, such a plan will show how the district obtains foreign language and sign language interpreters, provides access to those in wheelchairs and gives telephone services to the deaf.

Section 6.04(f) requires the board to prepare information of public interest describing the functions of the board and the board's procedures by which complaints are filed with and resolved by the board. The board shall make the information available to the public and the appropriate taxing jurisdictions.

A detailed written operating policy covering all operational aspects of CAD operations will be a useful tool to give direction to the chief appraiser and staff. The Tax Code provides board policy in statutory form, but it does not address every decision the board or chief appraiser must make.

By adopting a written local board policy and procedures manual, the board can be assured that the public is well-informed about how the board and CAD operates, that the CAD is in compliance with the Tax Code and that the CAD is not exposed to the possibility of unfavorable public opinion.

RECOMMENDATION 3
Develop a board manual that complies with the Tax Code and includes general policies covering operational aspects of the CAD.