06/13/1983 Meeting - Laserfiche WebLink

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Ms. James provided a description of the four classes of properties under the ad valorem tax: e Class "A"--Property having no ODD tax liability for the year. The av ail ab 1 e Overpark assessment exceeds the original ODD tax allocation. Class "B"--Property having a reduced ODD tax liability for the year. The available Overpark assessment does not exceed the original ODD tax allocation. Cl ass "C"_-Property devoted to parki ng faci 1 i ties open to the general public and under the control of the ODD. Cl ass "D"--Property that is neither A, B nor C. Ms. James expl ained that those "A" properties which pay more assessment to the Overpark District than their allocation to the ODD assessment receive a credit. In order for the ODD to have enough revenue to operate, this credit must be covered through additional assessments to the "B" and "0" properties. This is accomplished with a second allocation equaling the amount of the credit for the II A" properti es. Ms. James stated that the focus of the programs changed when free parking was established. Ms. Stewart added that the Finance Director has a current contract with the Bond Council to examine the 10th and Oak Assessment and the funding of parking in the downtown area is being studied. Mr. Hansen asked how the II A" properti es get credi t through the assessment program . Ms. Stewart explained that the Overpark assessment is stable. She e stated that the ODD assessment fluctuates based on the value of property. In a situation where the property value escalates and the ODD assessment exceeds the Overpark assessment, she explained that the property owner must pay the Overpark assessment and the difference between the two assessments. The Overpark assess- ment property owners receive a statement twice yearly as to the principal and interest owed on their property. The property owners owing ODD ad valorem taxes are notified in November of the tax due. Mr. Gleason briefly commented on the ratio of the property value and assessment as it relates to the credit received. Mr. Lindberg stated that the credit appears to relate to the equity. Ms. James explained that there is a contingent liability in the Overpark Fund to pay back the ODD Fund. She stated that the Bond Council will examine how the rebate process works, but added that there is little agreement on the issue. Mr. Gleason, referring to a previous statement on equity, commented that the value of a parking structure and and its proximity to a business property is best seen when the property is liquidated. He added that rebating taxes carries with it the question of property value and ownership. Mr. Lindberg stated that a property owner can compare the assessment of separate properties based on the available parking in the area. Mr. Gl eason stated that it is incorrect to assume this assessment to be a tax in the classic sense; he explained that the value of the land is incremented by the mortgage on the street improvements and that there is a value received from the parking as well as a tax paid. In an attempt to clarify the process by which the downtown e MINUTES--Eugene City Council June 13, 1983 Page 2