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2003-811-Resolution No. 2003-038 Recorded 5/1/2003DESCW TES COUNTY OFFICIAL UBLANKENSNIP, COUNTY CLERKS CJ 1003.81! NANCY REVIE COMMISSIONERS' JOURNAL 05101/2003 01;34.23 PM LEG SEL IIII IIIIIIIIIIIIIIIIIII l For Recording Stamp Only BEFORE THE BOARD OF COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Adopting the Oregon Department of Revenue Assessment and Taxation Grant Application for Fiscal Year 2003-04, and Designating a County Contact Person to Handle the Grant Application Process * * RESOLUTION NO. 2003-038 * * * * WHEREAS, Deschutes County is Applying to the Department of Revenue in order to participate in the Assessment and Taxation Grant; this state grant provides funding for counties to help them come into compliance or remain in compliance with Oregon Revised Statutes 308.027, 308.232, 308.234, Chapters 309, 310, 311 and 312, and other laws requiring equity and uniformity in the system of property taxation; and WHEREAS, Deschutes County has undertaken a self-assessment of its compliance with the laws and rules which govern the Oregon property tax system; and WHEREAS, Deschutes County is generally in compliance with Oregon Revised Statues 308.027, 308.232, 308.234, Chapters 309, 310, 311 and 312, and other laws requiring equity and uniformity in the system of property taxation; and WHEREAS, Deschutes County agrees to appropriate the budgeted dollars based upon one hundred percent of the expenditures certified in the grant application; if one hundred percent is not appropriated, no grant shall be made to the County for the quarter in which the County is out of compliance; and Page 1 of 2 WHEREAS, Deschutes County hereby designates Scot Langton, Deschutes County Assessor's Office, telephone number (541) 388-6513, as Deschutes County's contact person for this grant application; NOW, THEREFORE, BE IT RESOLVED that the Deschutes County Board of Commissioners hereby adopts the foregoing Resolution. DATED this 30th Day of April 2003. THE BOARD OF COMMISSIONERS FOR DESCHUTES COUNTY, OREGON ennis R. Luke, Chair Tom De olf, Commission ATTEST: &Ifaief M. aly, C issioner Recording Secretary Page 2 of 2 2003-2004 Property Tax Program Grant Application Forms and Instructions 2003-2004 Property Tax Program Grant Application Forms and Instructions Contents Background and General Information -------------------------------------------------- 3 Instructions---------------------------------------------------- 4 County Checklist for Completing the Grant Application ---------------------------- 9 Worksheet for Calculating FTEs ------------10 Grant Application Staffing Report ---------- 12 Explanation of All Staffing Changes ----- 13 Valuation Appraisal Staffing by Work Activity ----------------------------------------- 14 Summary of Expenses ________________________________ 15 Grant Application Resolution __________________ 16 OAR 150-294.175 ________________________ 17 2of19 2003-2004 Property Tax Program Grant Application Forms and Instructions Background The 1989 Legislative Assembly enacted House Bill (HB) 2338 in response to statewide deterioration in the property tax system caused by a variety of factors, including a lack of local funding. The legislation provided money to stem the deterioration and to maintain an adequate level of operation in the counties. A portion of the money was also earmarked for the Department of Revenue to support the local assessment and taxation (A&T) system and to appraise industrial properties. The money is raised by a fee placed on most documents recorded in the county clerk's office and a percentage of the interested collected on delinquent property tax accounts. The department uses the grant application to allocate each county's proportionate share of the department -approved assessment and taxation budgets for all counties for the coming fiscal year. HB 2139, enacted by the 1999 Legislative Assembly, provided additional stability to the funding mechanism first established in 1989. General Information We strongly encourage each county to designate a single contact person within the office to coordinate the grant application process. The property tax functions eligible for grant funding are as follows: assessment administration, valuation, appeals, tax collection and distribution, cartography, and assessment and taxation data processing support. The completed grant application will contain information on workload, staffing, and budgeted expenditures relative to each function. The county governing body must deliver (by hand, regular mail, e-mail, or fax) a completed grant application and signed resolution to the department's grant application coordinator on or before May 1 to be eligible to share in the dollars distributed from the County Assessment Function Funding Assistance (CAFFA) account. 3of19 Instructions Staffing Report The staffing report (Page 12) displays the staffing level for each A&T function within the county. Use the assigned duties to determine if the staff qualifies for inclusion in the grant, and identify the appropriate percentage if those duties are less than full-time. Refer to the sample worksheets on pages 10 and 11 to assist in calculating the correct number of full-time equivalent positions dedicated to the A&T function. The sample worksheet on page 10 illustrates full-time equivalents (FTEs) ded- icated to support the Board of Property Tax Appeals function. The worksheet on page 11 is a blank version of the same form to assist you in calculating FTEs. Qualifying A&T duties must support the A&T function. For example, county management of property involved in property tax foreclosure would qualify, but management expenses incurred for property obtained by means other than property tax foreclosure would not. For each function area, identify the (FTEs) that are approved for the current fiscal year, 2002-2003, column 1, on the 2003-2004 Grant Application Staffing Report. These numbers should be equivalent to those identified in last year's grant application in the column identified as Budgeted FTEs for the coming year (2002-03). Please identify the reason for any discrepancy between the approved FTEs for 2002-03 and those identified as budgeted for 2002-2003 in last year's grant application (for example, as the result of unfilled positions) on Page 13 of this application, "Explanation of All Staffing Changes," in the top box. Next, identify the number of FTEs that will be budgeted for the next fiscal year, 2003-2004. If a staff member performs duties in two or more different A&T functions, then the FTEs should be allocated between those two functions. In column 3 of the Staffing Report, note any change between approved FTEs for 2002-2003 (in column 1) and budgeted FTEs for 2003-2004 (in column 2). A plus represents an increase in the number of FTEs and a minus represents a reduction in the number of FTEs dedicated to a particular function, year-to-year. Please explain any differences (plus or minus) on Page 13 of this application, "Explanation of All Staffing Changes," in the bottom box. The allocation of FTEs on the staffing report should be consistent with the allocation of personal service expenses on the Summary of Expenses (page 15). FTEs are not the same as filled positions. For example, if a residential appraiser regularly spends 15 percent of his or her time doing assessment records duties, then the FTEs for that position should be split between "support staff' 15 percent and "residential appraiser" 85 percent. On the Summary of Expenses report, the salary for that position should also be split between "assessment administration" 15 percent and "valuation appraisal staff' 85 percent. Valuation - Appraisal Staffing by Work Activity The Valuation -Appraisal Staffing by Work Activity table on page 14 describes the actual appraisal activity (by number of accounts affected by the particular activity) and the number of FTE assigned to that activity during the 2002-2003 tax year in comparison to the estimated numbers for those same categories for the 2003-2004 tax year. 4of19 Provide the actual (2002-2003) and estimated (2003-2004) number of accounts pertaining to each activity. Fill in the actual and estimated number of FTE that correspond with each activity. Use decimals where appropriate. Under Section 2., "BoPTA" (Board of Property Tax Appeals), do not include support provided by the county clerk's office. Count only the assessor's office support to BoPTA. Under Section 4., "Personal Property", do not include manufactured structures. Include those accounts both below and above the personal property reporting threshold in enumerating the accounts by activity. Under Section 7., examples of "Other Valuation -Appraisal Activity" include such tasks as record filing, tech group participation, or taxpayer assistance. Summary of Expenses General Expenditures include all direct costs, including personnel and supplies associated with the assessment, collection, and distribution of property taxes. There are specific allowances for costs incurred in transportation, capital outlay, and indirect costs. The form on page 15 has been designed to help you comply with the requirements of OAR 150-294.175(1)(c), "Expenditures for Assessment and Taxation," in presenting your program expenditures for inclusion in the grant funding. Columns A through F on page 15 denote various program functions that occur in administration of the property tax system. Rows 1 through 4 on page 15 are the object classification (sometimes referred to as categories). This table allows the department to identify the resource classification (Personal Services, Materials and Services, etc.) that is being allocated to each program function (Assessment Administration, Valuation, BOPTA, etc.). Please read all of the instructions before com- pleting the form on page 15. • Enter the name of the county at the top of the form. • Under each function column, record only the amount of expenditure that will actually be used for that function split out by categories (rows). For example, if an appraiser is regularly spending a portion of his/her time doing assessment records duties, record the cost of that personal services time under the assessment administration column. • If expenditure items are used for more than one function, apportion the expenses among the functions involved. For example, if supplies are purchased in bulk to be used by Valuation, Assessment Administration, and Tax Collection, apportion the cost of the supplies among these three functions in the row labeled "Materials and Services." • Pay special attention to all notes in the table and the accompanying explanations. Row 1 - Personal Services Include wages, paid benefits, workers' com- pensation, etc. For data processing, see Special Note III under "Capital Outlay" and instructions for Column F on page 15 for "Personal Services." 5of19 Row 2 - Materials and Services Include materials and services such as office supplies, service contracts, instate travel, equipment rent, postage, freight, printing, reporting and recording fees, dues and subscriptions, DP supplies, education or instruction, professional development, and employee recognition/awards and relocation, etc. Do not include items that qualify as capital outlay or indirect costs in your county. Expenditures categorized for materials and services that are either partially or fully reimbursed by ORMAP can still qualify for inclusion in the grant. Rent and utility expenses can be included under materials and services if those expenses can be directly allocated to a distinct program function (for example, Assessment Administration, Valuation, Tax Collection, etc.). Rent and utility expenses that are not directly allocable to a program function are considered to be indirect costs for which a general allowance has already been provided (see Note IV -Indirect Costs). Row 3 - Cost of Transportation Include only the operating cost of vehicles. Do not include the purchase cost of vehicles. The administrative rule provides only two methods for determining the cost of transportation. They are: Method 1. Use the actual costs of operations for a twelve-month period, plus a depreciation allowance for the useful life of the vehicle, or Method 2. Use the county established rate per mile with an estimate of the miles that will be driven during the fiscal year. Identify the method used in Note II at the bottom of the expense summary form on page 15. If you use Method 2, provide the rate per mile and the estimate of miles in the blanks provided. Row 4 -Capital Outlay Include the cost of items that are categorized by your county as capital outlay. The total capital outlay on page 15 is limited to either: (1) six 6 percent of the total expenditures certified in rows 1 through 3, column G; or (2) $50,000, whichever is greater. See instructions for "Note V" on page 7 for a detailed discussion on calculating this limitation. Data Processing Special Note (Note III) on page 15: Include personal services, materials and services, and transportation costs for data processing equipment purchases or data processing development in Capital Outlay under the Data Processing function. Lease purchase payments are included here. Column C - Board of Property Tax Appeals (BOPTA) Expenses for board members who are paid on a per diem should be placed under the category "Materials and Services." Expenses incurred for a board appraiser under contract should be categorized under "Materials and Services." Column F - Assessment & Taxation Data Processing Direct costs for data processing include such items as: software changes required because of changes to laws or rules, elimination of "bugs," installation of periodic software upgrades, and technical assistance for personal computer support. For a more extensive listing, see OAR 150-294.175 (1)(c)(4)(d). Personal Services. Include only personal services necessary to maintain and operate data processing systems for assessment and taxation. Materials and Services. Include only the materials and services used by data process- ing in support of assessment and taxation functions. This would include contract services such as those provided by various software vendors. 6of19 Rent and utility charges can be included under this category IF the assessment and taxation functions identified in the general grant information on page 3 of this manual, are directly charged for rent and utilities. If there are no direct charges for those items, indirect costs are assumed to cover the rent and utility costs for those functions. Capital Outlay. See the "Data Processing Special Note III" under Row 4 - Capital Outlay in these instructions on page 15. Note IV- Indirect Costs Indirect costs are expenditures for items other than labor and materials, such as administrative costs, professional fees, legal fees, consulting, and accounting. These costs are not readily identifiable with nor are they necessarily incurred as the result of services rendered. Instead, indirect costs are typically calculated as a percentage of direct cost labor, materials, and overhead. Show which method you used to determine indirect costs by checking the appropriate box. • If the county receives federal grants, and has a percentage amount approved by the granting agency for indirect costs, the county may use that percentage to calculate indirect costs for this grant (in the same manner used for grants by the federal granting agency), or • The five percent method. If the county has no federal indirect costs percentage, use five percent of the total expenditures less the amount of capital outlay. This is calculated by totaling rows 1, 2, and 3 in column G and multiplying by five percent. Enter the total amount for indirect costs in Note IV on page 15. Note V - Capital Outlay Limitation The total capital outlay expenditure is limited for purposes of the grant application. The ex- penditure is limited to six percent of the total expenditures certified or $50,000, whichever is greater. To verify that your capital outlay does not exceed the limitation, use one of the following formulas based on the method you used to determine your indirect costs. For counties that use an indirect cost based on a federal granting agency, the limit for capital outlay is the greater of $50,000 or the results from this calculation. [(Rows 1 + 2 + 3 in column G) + (Total indirect cost)] x .06 - .94 For counties that use the "five percent" method for indirect costs, the limit is the greater of $50,000, or the results from this calculation. [(Total indirect cost) x 1.26] - .94 If your capital outlay expenditure on page 15 exceeds the limitation, you must reduce the total expenditure amounts in row 4, column G to the limitation amount. If you adjust this amount, remember to adjust the other amounts in row 4, columns A through F so that they total the limitation placed in column G on page 15. Row 5 - Total Direct Expenditures Total by Function. Add the amount of ex- penditures in rows 1 through 4 for each function (column). Enter the total amount of expenditures for each function in row 5. 7of19 Total by Expenditure Category. Add the amount of each expenditure row in columns A through E. Enter the total amount for each row in the total column (column G), far right. Remember to adjust your capital outlay ex- penses if they exceed the limitation in Note V. Grand Total. Add the amounts in row 5, col- umns A through F. Add the amounts under the total column (column G), rows 1 through 4. sum of each should be the same. Enter the grand total in row 5, column G, which is the lower right corner of the table. uniformity in the property tax system. And finally, the resolution identifies the person authorized by the county to serve as the contact person for the grant application. A sample resolution containing recommended language is provided on page 16. * DRS 294.175 requires that a county must be The certified by the Department of Revenue to participate in the grant. A county must appro- priate the budgeted dollars based on 100 These are the total direct expenditures. Enter the amount in Note VI page 15. Note VII - Total Expenditures Certified Add the total indirect costs (Note IV) and the total direct expenditures (Note VI). Enter the total in Note VII. These are the total expen- ditures certified for consideration in the grant. Double Check Once again, check your capital outlay to see if it exceeds the limitation. The total amount for capital outlay is limited to either six percent of the total expenditures certified or $50,000, whichever is greater. Resolution Instructions The grant application resolution serves mul- tiple purposes. The resolution assures that the county governing body has reviewed and approved the county's assessment and taxation budget for the purpose of obtaining the state grant. It obligates the county to appropriate the budgeted dollars based on 100 percent of the expenditures certified in the grant application.* The resolution attests to the county's compliance with a variety of laws requiring equity and percent of the certified expenditures as pro- vided in ORS 294.178. If 100 percent is not appropriated as certified, no grant shall be made to the county for the quarter in which the county is out of compliance. 8of19 County Checklist for Completing the Grant Application Appoint grant application coordinator. Receive grant application booklet and electronic forms on or about February, 15. Develop a time line for completion of the grant application on or before May 1. Obtain information from the: County Assessor County Clerk County Tax Collector County Treasurer Data Processing Support (related to the assessment and taxation function) County Cartographic Unit Schedule time with the county governing body to approve the completed grant application and to obtain a binding resolution. Submit the completed package (Grant Application Staffing Report, Explanation of All Staffing Changes, Valuation Staffing by Work Activity, Summary of Expenses, and signed Grant Application Resolution) to the Department of Revenue on or before May 1, 2003, in care of: Tom Wheatley Grant Application Coordinator Property Tax Division Department of Revenue P. O. Box 14380 Salem, OR 97309-5075 Telephone: (503) 945-8249 Fax: (503) 945-8737 E-mail: thomas.j.wheatley@state.or.us 9of19 —SAMPLE— Worksheet for Calculating FTEs INSTRUCTIONS: 1. Identify all the duties of the position. 2. Determine a measurement for the duties. 3. Determine the volume of work performed for each duty. 4. Estimate the total hours needed to perform each duty. 5. Sum the total hours for each duty for the total hours. Method to Calculate the Full -Time Equivalent Positions Total Working Hours per Year (52 weeks x Number of days per week worked x Number of hours per day attendance) 2080 From the "Total Working Hours per Year" subtract the following: 10 °l= �a -Number of holidays per year x Number of hours per day worked 96 -Vacation (use the average number of hours taken for vacation on a per person basis for the prior year) 80 -Sick leave (use the average number of hours taken for sick leave on a per person basis for the prior year) 40 -Hours per day rest period x Number of weeks per year x Number of days per week worked Hours Available to Work in a Year 1864 (2) Total Hours (1) = 183 Hours Available in a Year (2) = 1864 = .l (rounded up) FTE for A&T functions *Note: Petition processing would include public assistance, the time spent on the telephone and at the counter; receiving, numbering, and data entry of appeal petitions; appeal scheduling and notification; the preparation of orders; and maintain- ing the minutes and records of hearings. Other official record keeping would include all duties associated with the Board, exclusive of individual petitions. Show only FTEs for employees that are listed under "Personal Services" in the Summary of Expenses found on page 14. -FOR COUNTY USE ONLY- -Do not send this worksheet to the Department of Revenue - 10 of 19 Worksheet for Calculating FTEs INSTRUCTIONS: 1. Identify all the duties of the position. 2. Determine a measurement for the duties. 3. Determine the volume of work performed for each duty. 4. Estimate the total hours needed to perform each duty. 5. Sum the total hours for each duty for the total hours. Duties* Unit of Measurement Volume per Year Estimated Total Hours - Number of holidays per year x Number of hours per day worked - Vacation (use the average number of hours taken for vacation on a per person basis for the prior year) Sick leave (use the average number of hours taken for sick leave on a per person basis for the prior year) - Hours per day rest period x Number of weeks per year x Number of days per week worked Total Hours (2) (l) Method to Calculate the Full -Time Equivalent Positions Total Working Hours per Year (52 weeks x Number of days per week worked x Number of hours per day attendance) From the "Total Working Hours per Year"subtract the following: - Number of holidays per year x Number of hours per day worked - Vacation (use the average number of hours taken for vacation on a per person basis for the prior year) Sick leave (use the average number of hours taken for sick leave on a per person basis for the prior year) - Hours per day rest period x Number of weeks per year x Number of days per week worked Hours Available to Work in a Year (2) Total Hours (1) Hours Available in a Year (2) FTE for A&T functions - FOR COUNTY USE ONLY- -Do not send this worksheet to the Department of Revenue - 11 of 19 R E O N DEPARTMM ENT "AWOF REVENUE Grant Application Staffing Report 2003-2004 Count Deschutes Y 1 Approved FTEs Current Year (2002-2003) 2 Budgeted FTEs Coming Year (2003-2004) 3 Change (Col. 2 less Col. 1) A. ASSESSMENT ADMINISTRATION Assessor, Deputy, etc. 2.00 2.00 0.00 Support Staff 6.00 6.00 0.00 Total Assessment Administration B. VALUATION -APPRAISAL STAFF Chief Appraiser/Appraisal Supervisors 8.00 2.00 1 8.00 2.00 1 0.00 0.00 Lead Appraisers - - 0.00 Residential Appraisers 5.70 5.70 0.00 Commercial/Industrial Appraisers 2.00 2.00 0.00 Farm/Forest/Rural Appraisers 0.50 0.50 0.00 Manufactured Structure Appraisers 0.80 0.80 0.00 Personal Property Appraisers 1.75 1.75 0.00 Personal Property Clerk(s) - - 0.00 Sales Data Analyst 1.00 1.00 0.00 Other Appraisers/Technicians 2.50 2.50 0.00 Total Valuation -Appraisal Staff 16.25 16.25 0.00 C. CLERK/BOPTA STAFF* 0.50 1 0.52 0.02 D. TAX COLLECTION STAFF Real Property 3.70 3.70 0.00 Personal Property 1.20 1.20 0.00 Tax Distribution 0.40 0.40 0.00 Total Tax Collection Staff E. CARTOGRAPHY STAFF Cartographic Supervisor 5.30 1.00 5.30 1.00 0.00 AW -1 .. , 0.00 Lead Cartographer - - 0.00 Support Staff 5.00 5.00 0.00 Deed or Abstract Clerk 2.50 2.50 0.00 Total Cartography Staff 8.50 8.50 0.00 F. A&T DATA PROCESSING STAFF 3.75 3.75 0.00 TOTAL A&T STAFFING 42.30 42.32 0.02 *Show only clerk's office staff allocated to the BOPTA function on this line. 150-338-001-1 (Rev. 1-03) 12 of 19 EXPLANATION OF ALL STAFFING CHANGES Deschutes Please explain in this section any difference between actual staffing and the department approved staffing level for 2002-2003. Also explain why any funded positions were unfilled for 2002-2003. For a portion of the 2002-03 year there was a vacant residential appraisal position. In the Deschutes County budgeting process this vacancy was identified as a position to re-evaluate. After a comprehensive analysis it as determined that this position is needed and the County is currently in the process of recruitment. Some of he rationale used to identify this as a needed position was that the amount of new construction throughout Deschutes County appearing to remain equal to last year. Total permits and completions between 1/l/01 and 12/31/01 were 7,516 (permit value $508,168,833). Total permits and completions between 1/1/02 and 8/31/02 are 6,415 (permit value $357,742,865). Currently there are seven field appraisers to complete the task of assigning value to all new residential construction and completions. Three of these appraisers are pulled from he field early in the calendar year to complete journal vouchers. In order to timely complete all new Z nstruction and to appropriately address any areas identified as needing to be reappraised to keep the Real arket Value in required parameters there is a need for this appraisal FTE. Please explain in this section any difference between approved staffing for 2002-2003 and budgeted staffing for 2003-2004. 150-338-001-2 (Rev. 1-03) 13 of 19 Valuation Appraisal Staffing by Work Activity County: Deschutes Activities 1. Real Property Exceptions New Construction ---------------------------------------------- Zone Changes --------------------------------------------------- Subdivision, Segregations, Consolidations ----- Omitted Properties ----------------------------------------------- Special Assessment Qualification and Disqualification _________________________________________ Exemptions--------------------------------------------------- - -- -- Subtotal------------------------------------------------------------- 2. Appeals BOPTA------------------------ ---------------------------------------- Department of Revenue _______________________________________ Magistrate------------------------------------------------------------- TaxCourt -------------------------------------------------------------- Subtotal------------------------------------------------------------- 3. Real Property Revaluation Physical Reappraisal ------ _____________________________________ Recalculation -------------------------------------------------------- Subtotal---------------------------------------------------------- 4. Personal Property ---------------------------------------------- 5. Ratio --------------------------------------------------------------------- 6. Continuing Education -------------------------- _------------ 7. Other ___________7.Other Valuation -Appraisal Activity ------------------- 8. Total---------------------------------------------------------------------- 150-338-001-3 (Rev. 1-03) 2003-2004 Number of Accounts by Activity Number of FTEs by Activity Actual Estimated 2002-2003 2003-2004 Actual 2002-2003 Estimated 2003-2004 7000 7000 9.5 9.5 25 25 .05 .05 4600 4600 1 1 16 16 .1 .1 96 96 .4 .4 57 57 .25 .25 11794 11794 11.3 11.3 517 600 .25 .25 2 5 .05 .05 140 150 .1 .1 2 107 .1 .1 661 862 0.5 0.5 5773 5000 1.00 1.00 0 0 .30 .30 5773 5000 1.30 1.30 6718 6800 1.75 1.75 -------------------------------------- 1.00 1.00 .40 .40 -------------------------------------- 16.25 16.25 14 of 19 0 w 00 b z 0 �n 15 of 19 Cfl G A w O O 0 ® El g v �' g c� � cDa x 0 D 5' � cD vAi ,y O O CDS 0- cD v 55 n ° En U4 v O a .0 >✓ f9 .�. CL to A A� 'd < O O 0."co G to+ w cD C aro h O >✓ a G �D O O ky Ln n C m `< o a, 'a w a 0 m - m O * S TA aq J Aw O m CD 0 co 00 CD A 0 ~ O 10 0 O to .. 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W 20 00 cn b9 O b9 O � -A r o v 00 0o n th N OW zp Z 0 0000 CO J O m C O `\O It t'EAi� N bAN X D O*N 0 � N C O 00 w (nn D T c�ii W 'p N G D W bA 6,g b9 N C OWo N O W00 ILA C*N —1 G9 W C> O r to J G � Grant Application Resolution Deschutes County is applying to the Department of Revenue in order to participate in the Assessment and Taxation Grant. This state grant provides funding for counties to help them come into compliance or remain in compliance with ORS 308.027, 308.232, 308.234, Chapters 309, 310, 311, 312, and other laws requiring equity and uniformity in the system of property taxation. Deschutes County has undertaken a self-assessment of its compliance with the laws and rules which govern the Oregon property tax system. Deschutes County is generally in compliance with ORS 308.027, 308.232, 308.234, Chapters 309, 310, 311, 312, and other laws requiring equity and uniformity in the system of property taxation. Deschutes County agrees to appropriate the budgeted dollars based on 100 percent of the expenditures certified in the grant application in the amount of $ 0 If 100 percent is not appropriated, no grant shall be made to the county for the quarter in which the county is out of compliance. Deschutes County designates phone number , e-mail address as the county contact person for this grant application. Signature of Chairperson or Judge of Governing Body Date Signed 150-338-001-5 (Rev. 1-03) 16 of 19 DEPARTMENT OF REVENUE CHAPTER 294 LOCALBUDGET 150-294.005(Note)-(A)(1) [Renumbered to 150-294.175(l)(c)] 150-294.005(Note)-(B)(1) [Renumbered to 150-294.175(6)] 150-294.005(Note)-(B)(2) [Renumbered to 150-294.175(2)] 150-294.005(Note)-(D) [Renumbered to 150-294.1751 150-294.005(Note)-(E) [Renumbered to 150-294.1870)(c)] 15 0 -294.005 (Note) -(F) [Renumbered to 150-294.1871 OAR 150-294.175. Department of Revenue Review of the County Assessment, Appeal, Collection, and Distribution of Property Taxes. (1) As used in ORS 294.175, the following definitions will apply: (a) "Adequacy to provide the resources needed to achieve compliance" means: Appropriate and suffi- cient resources to maintain compliance with all laws and rules pertaining to the assessment, levying, and collection of property taxes. (b) "Laws requiring equality and uniformity in the system of property taxation" includes administrative rules implementing those statutes. (c) "Equality" means equity of assessments as required by the Oregon Constitution and laws to achieve fairness in property taxation. (d) "Other laws" include but are not limited to Chap- ters 305 to and including 312. (e) "Review" under ORS 294.175 may include, but is not limited to, an examination by the department of any county records, both paper and magnetic media; interviews with county staff, field review of values and procedures; and special studies. (2) County programs operating under a department approved conference agreement or plan must maintain levels of uniformity and equity established under the agreement or plan. (3) At the department's discretion, the department may examine any property and records to verify the accu- racy of county records. (4) For counties under the Computer Assisted Valua- tion program, part of the review will consist of the review required by ORS 308.027. When the depart- ment conducts a review of counties not under ORS 308.027, current appraisals will be reviewed to ensure they comply with the established standards for an appraisal contained in OAR 150-308.027(10). (5) The department must provide written notice to the county governing body, assessor, and tax collector of any scheduled review no less than 30 days prior to the date the review is scheduled to begin. This notice must contain: (a) The date the department will begin its review; (b) The purpose of the review; (c) A list of initial records the county must provide to the department. The records must be provided no later than the date specified in (a) above. The county must provide the department access to any records requested that are not available in hard copy or portable format; (d) An estimate by the department of the number of department staff who will participate in the review. The county must make available adequate work space for the conduct of this review. (6) The determination by the department that assess- ment and taxation activities, functions or services of the county are not adequate to maintain compliance or are not in compliance with a conference agreement or plan must be made no later than 40 days prior to the next fiscal quarter. The department will notify the county governing body within 10 days by certified or registered mail of its final determination of deficiency and the approximate amount of funds that will be withheld. If the department's notice is not sent in a timely manner, the funds will be withheld from the next following fiscal quarter which begins at least 40 days from the date of mailing the notice. No further notice by the department will be required. If the deficiency is corrected to the department's satisfaction at least 30 days prior to the start of the ensuing fiscal quarter, no funds will be withheld. (a) Example 1 - Next fiscal quarter begins --October 1; Department makes determination - August 15; Depart- ment notifies county by -August 15; No corrective ac- tion taken by county; Funds withheld from county beginning --October 1. (b) Example 2 - Next fiscal quarter begins --October 1; Department makes determination -September 5; De- partment notifies county by -September 14; No cor- rective action taken by county; Funds withheld from county beginning --January 1. Stat. Auth.: ORS 305.100 Stats. Implemented: ORS 294.175 Hist.: RD 3-1989, f 12-18-89, cert. of 12-31-89; REV 3-2001, f 7- 3 1 -0 1, cert. of 8- 1 -0 1, Renumbered from 150-294.005(Note)-(D) 17 of 19 150-294.175(1)(c). Expenditures for Assessment and Taxation (1) Expenditures include all direct costs, including personnel and supplies, associated with the assessment and appeal of property values and the collection and distribution of property taxes, as set out in ORS Chapters 305 through 312 and 321 or other statutes relating to the assessment, appeal, collection, and distribution of property taxes. Costs resulting from the performance of these functions performed in the offices of the county must be allowed. (2) All expenditures for assessment and taxation funding will be for no more than one fiscal year. (3) Costs incurred by the assessor's, tax collector's, and treasurer's office, or any other office in the county that are not attributable to assessment and taxation as set out in ORS chapters 305 through 312 and 321 or any other statute or meet the requirements of section (1) of this rule must not be allowed. (4) Direct costs include: (a) Personnel Services. (b) Materials and Services. The cost of transportation included as a direct cost must be determined using one of the following two methods: (A) The estimate of the actual cost of operating vehicle for a twelve-month period plus a depreciation allow- ance for the useful life of the vehicle. (B) The mileage rate used in the other county pro- grams, with the estimate of number of miles to be driven based on historical information. (c) Capital Outlay. (A) In determining what is a capital outlay expendi- ture, counties must use the definition presently used by the individual county to determine whether or not an item is capital outlay. (B) Automobiles purchased by the county and used for assessment and taxation functions are included as an expense item under Section (4)(b)(1)(A) of this rule. They must not be included as part of the capital outlay expenditures eligible to be certified for ftinding under ORS Chapter 294. (C) The county must be limited in the amount of capital outlay expenditure to be funded by these statutes to the higher of: (i) $50,000; or (ii) Six percent (6%) of the total dollars certified as expenditures under the statutes for flinding pursuant to ORS Chapter 294. (d) Data processing support based on the actual cost of items directly relating to assessment and taxation. For example: (A) System operating costs will be allocated on a pro rata share based on the ratio of usage for assessment and taxation functions. (B) Development of new computer applications to support the assessment and taxation functions. (C) Technical education of assessment and taxation staff. (D) Software changes required because of changes to laws or rules which govern the assessment, appeal, levy, collection or distribution of property taxes. (E) Software changes requested by the user to improve or extend the functionality of the system. (F) Elimination of reproducible errors (BUGS) in the application software. (G) Installation of periodic software upgrades. (H) Training of user staff in the use of new or en- hanced software. (I) Technical assistance for personal computer support. (J) Only cadastral maps or mapping necessary for the assessor's office must be included in the expenditures for assessment and taxation funding. All other costs for maps or mapping must not be allowed. (5) Indirect costs associated with the assessment, appeal, collection, and distribution of property taxes will be determined using one of the following meth- ods. (a) A percentage amount approved by a Federal Granting Agency for the county in accordance with the Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government. The percentage must be applied in the same manner as has been approved by the Federal Agency; or (b) Five percent of the total direct expenditures less capital outlay. Stat. Auth.: ORS 305. 100 Stats. Implemented: ORS 294.175 Hist.: RD 3-1989, f 12-18-89, cert. of 12-31-89; REV 8-2000, f & cert. of 8-3-00; REV 3-200 1, f 7-3 1 -0 1, cert. of 8-1 -0 1, Renumbered from 150-294.005(Note)-(A)(1) 18 of 19 150-294.175(2). Definition: Certification of Compli- ance. Plan to Achieve Adequacy. (1) On or before May 1 of each year, each county will file with the Department of Revenue an estimate of expenditures as required by ORS 294.175. The Depart- ment of Revenue will determine the adequacy of each county's estimates of expenditures to comply with the requirements of ORS 308.027, 308.232, 308.234, ORS Ch. 309, and other laws requiring equality and unifor- mity in the system of property taxation. For any county whose proposed expenditures are neither at a level nor of a type to achieve adequacy as determined by the department, the county will state how it intends to comply with a plan to achieve adequacy previously approved by the department. (2) Any county which is not in compliance as of January 1, of any year, and does not have a plan to achieve adequacy which has been approved by the department must, in lieu of the statement of compli- ance required under section I of this rule, submit a plan to achieve adequacy. After its review of the plan, the department will, if it deems necessary before approval, set a date for a meeting to be held with the county. The meeting may be for review of the plan only, or may be held in conjunction with the confer- ence with the county governing body on their expendi- ture level. (3) At the meeting the department and county govern- ing body, assessing officials, and others as appropriate, will conduct a thorough review of the plan to identify and resolve any areas of disagreement. Before the conclusion of the meeting the department will inform the county governing body of its agreement with the plan, or modifications that may be necessary to the plan before approval. If the department and county governing body reach agreement on the county's plan, or modified plan, the department will include in its approval, based upon the plan, the number of years for the county to reach full compliance. (4) Within ten days after the date of the meeting, the county governing body must fumish to the department a signed resolution of intent by the county governing body and assessing official to meet the provisions of the plan. (5) If the department and county governing body can not reach agreement on the plan, or if the signed statement of intent is not furnished to the department by June 1 of the year, the department must issue a denial of certification under Or. Laws 1989 Ch. 796 Sec. 2 Sub. (6). Stat. Auth.: ORS 305.100 Stats. Implemented: ORS 294.005 Hist.: RD 3-1989, f 12-18-89, cert. of 12-31-89; RD 2-1995, f 12-29-95, cert. of 12-31-95; REV 3-2001, f 7-31-01, cert. of 8-1-0 1, Renumbered from 150-294.005(Note)-(Bx2) 150-294.175(6). Certification. (1) On or before June 15 of each year, the Department of Revenue, must mail to the governing body of each county a letter of certification or of denial of participa- tion in the County Assessment Function Funding Assistance (CAFFA) Account. (2) The letter of certification referred to in (1) above must include the following information: (a) The total dollar expenditures budgeted by the county and approved by the department to be funded under the County Assessment Function Funding Program for that county. (b) A statement that the total expenditures budgeted by the county for the assessment and equalization of property values and the collection and distribution of property taxes is adequate to maintain the county property taxation system or to comply with an ap- proved plan to bring the county property taxation system into compliance. (c) An estimate of the total dollars to be available for distribution to the counties from the CAFFA Account in the ensuing fiscal year. (d) An estimate of the county's percentage distribution rate. For example, County A will receive 5 percent of the total for distribution from the CAFFA Account. (e) An estimate of the total amount the county will receive from the grant during the ensuing fiscal year. (3) The letter of denial referred to in (1) above must include the following information: (a) Reason(s) for the denial. (b) Appeal process for the county, if any. Stat. Auth.: ORS 305.100 Stats. Implemented: ORS 294.175 Hist.: RD 3-1989, f 12-18-89, cert. of 12-31-89; RD 2-1995, f 12-29-95, cert. of 12-31-95; REV 4-1999, f 12-1-99, cert. of 12- 31-99; REV 3-2001, f. 7-3 1-01, cert. ef. 8-1-01, Renumbered from 150-294.005(Note)-(B)(1) 19 of 19