06/13/1983 Meeting - Laserfiche WebLink

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properties are assessed by the two programs, Ms. James went through an example of how the ad valorem tax is levied. She explained that the properties are . assessed based on the amount of tax to be allocated and the assessed values of the properties. She stated that if the amount to be allocated is not obtained due to some of the II A" properti es recei vi ng credit, then a second all ocati on is performed, and the "B" and "0" properti es receive any additional assessment which in total is equal to the amount credited to the "A" properties. She added that a third allocation is then made upon the "0" properties to allocate the credit given to the "B" properties. Mr. Lindberg commented that it appears the unproductive properties pay more. Ms. James stated that, in the short run, the "0" properti es are assessed at a hi gher rate per $1,000 of assessed val ue, but that it may not be reasonable to compare the assessments in the short run, as the ODD was operational in nature and the Overpark was capital in nature. Ms. James presented another example to demonstrate the present situation of Citizens Associates. She stated that if the assessed value of one property increases and the allocation becomes greater than the Overpark credit, then the property owner will pay the Overpark assessment and the ODD tax. She stated that this property, as "B" property, will still have a rate below that of the "0" properties on a yearly basis. Mr. Hansen referred to the 1 etter from Citizens Associates, questioning the ad valorem tax assessed upon their building. Ms. James said that the recent increased valuation of the property bumped the property from class "A" to "B," and therefore the owners will have to pay the assessment pl us the respread of the II A" property credi ts. Ms. Stewart expl ained that the assessment for Citizens Associates increased 20 percent due to the finished tenant space while the downtown assessments increased two percent. Next year the assessment for Citizens Associates and for most of the downtown e will decrease ten percent. Ms. James explained that the ODD ad valorem tax is based on the assessed value of the property and that there is no problem if the assessed values of all the properties increase together. She restated the comment made by Ms. Stewart that the Assessor's Office has forecasted a general decline in property values over the next year. In response to a question by Mayor Keller, Ms. Stewart and Mr. Gleason stated that Citizens Associates had the opportunity to appeal the new assessment of its property but perhaps did not because the assessment had not been rai sed for two to three years. Mr. Gl eason added that the staff is not trained to make assessments or to second guess the tax assessors. In response to a question, Ms. Stewart stated that the ODD assessment is determined by the Downtown Commission, which then forwards the allocation to the Budget Committee for review. Mr. Gleason added that the allocation is placed on the ballot by the City Council after the tax rate has been set. Ms. Schue stated that the general public usually votes for the parking allocation because it does not cost them anything. Ms. Stewart stated that there is presently $2,400,000 in the 10th and Oak Bancroft account, in part a result of some property owners prepaying their assessments. She added that the City has invested the money at 15 percent, with the interest being reinvested into the fund. Ms. James stated that the owners prepaying their assessments are only allowed credit in the ODD calculations on e MINUTES--Eugene City Council June 13, 1983 P ag e 3