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HomeMy WebLinkAboutOrder 057 - Advance Tax Levies to Small DistrictsDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of November 1, 2010 Please see directions for completing this document on the next page. DATE: October 20, 2010 FROM: Loni Burk/ Marty Wynne Finance/Tax X6538 TITLE OF AGENDA ITEM: Consideration of Board Order # 2010-057, order to advance 2010-11 tax levies from the County general fund to certain small districts as provided for by ORS 311.392. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The small taxing district advance being requested includes the list of districts that the County has advanced to in each of the last several years. This advance provides the Districts with the immediate access to 97% of the tax levy proceeds and provides the County with the administrative efficiency of reducing distribution costs over the collection life of the levy. Additionally, if an advance is given to the districts, ORS 311.392(1) allows the Tax Collector revise the tax distribution schedule so that all taxes collected for those districts are directly allocated to the County without having to give them to distribute them to the districts and have the district pay those back to the County. FISCAL IMPLICATIONS: The County is advancing $280,898.63 listed in the order being requested. The County will collect an estimated 85% of that amount before it is required to be paid out on December 1, 2010. Based on collection history, the County will ultimately collect 101% of the amount advanced. Also, if the payment is made before December 1, ORS 311.392(2) allows the county to deduct the 3% discount "which would have been given by the district by the district had all of the taxes been paid by November 15 and turned over to the district on or before December 1 of each year." ORS 311.392(1), however, says that "If the county makes the payments provided in this section, it shall have no recourse against the political subdivision for recovery of the shrinkage in collections from that anticipated at the time the payment was made." Thus, if the County advances these funds and the collections result in less revenue collected than advanced, the County may not require the the districts to pay the difference. RECOMMENDATION & ACTION REQUESTED: We request that the Board approve and sign Board Order 2010-057. ATTENDANCE: Marty Wynne and/or Loni Burk if requested. DISTRIBUTION OF DOCUMENTS: Copy to Loni Burk, Chief Deputy Tax Collector, Tax Department REVIEWED LEGA C�SEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Authorizing the ORS 311.392 Advance of Taxes, Assessments and Charges to Small Tax Districts * * * ORDER NO. 2010-057 WHEREAS, Marty Wynne, Deschutes County Tax Collector, requested that the Board of County Commissioners authorize the advance from the General Fund the taxes, assessments and other charges levied by taxing districts, and WHEREAS, the advance of these funds is consistent with the treatment of these taxing districts levies in prior years, and WHEREAS, the advance of these taxes, assessments and other charges as provided for by Oregon Revised Statute 311.392 is economically justifiable and enhances administrative efficiency, now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. That Pursuant to ORS 311.392, the Deschutes County Treasurer is hereby authorized to advance prior to December 1st, 2010, the discounted (97%) taxes, assessments, and other charges of the following tax districts: 2010-11 ID DISTRICT NAME Dist % Levy 580 MANUFACTURED DWELLING ASSESSMENT 0.005299% 14,488.20 702 DRRH SPECIAL RD DISTRICT UNIT #6 0.008203% 22,430.35 703 LAZY RIVER ROAD DISTRICT 0.008074% 22,077.23 705 RIVER FOREST ROAD DISTRICT 0.010118% 27,665.35 706 PINEWOOD COUNTRY ESTATES SRD 0.002747% 7,511.77 710 SPRING RIVER ROAD DISTRICT 0.006836% 18,692.43 735 RIVER BEND ESTATES ROAD DISTRICT 0.001828% 4,999.20 740 VANDEVERT ACRES ROAD DISTRICT 0.006432% 17,587.75 745 HOWELL HILLTOP ACRES ROAD DIST 0.006718% 18,370.81 747 CROOKED RIVER RANCH ROAD DIST 0.006699% 18,318.66 749 PANORAMIC ACCESS ROAD DISTRICT 0.009156% 25,037.16 775 NEWBERRY ESTATES ROAD DISTRICT 0.006145% 16,801.45 785 FALL RIVER ESTATES ROAD DISTRICT 0.005553% 15,183.15 790 FOREST VIEW ROAD DISTRICT 0.008287% 22,658.61 795 BEAVER ROAD DISTRICT 0.003628% 9,921.01 796 PONDEROSA PINES EAST LOCAL OPT 0.001646% 4,499.78 /// PAGE 1 OF 2- ORDER NO. 2010-057 (11/3/10) 797 PONDEROSA PINES EAST ROAD DIST 906 LAPINE SPECIAL SEWER DISTRICT 0.002339% 0.006197% 0.105905% 6,397.04 16, 946.27 289, 586.22 Buyout Percentage 97% Total payments to Small Districts 280,898.63 Dated this of , 2010 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ATTEST: DENNIS R. 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This represents 0.1059% of the total taxes levied for 2010-11. This advance is consistent with the treatment of these Taxing Districts' levies in prior years and provides the Districts with the immediate access to 97% of the tax levy proceeds. It also provides the County with the administrative efficiency of reducing distribution costs over the collection life of the levy.