03/11/1985 Meeting - Laserfiche WebLink

Home Browse Search

Council Bill 2813 was read the second time by council bill number only. e Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19315). IV. INTEREST EARNINGS ON UNSEGREGATED TAXES (memo background material distributed) City Manager Micheal Gleason introduced the agenda item. Warren Wong, Finance Director, presented the staff report. He said Lane County collects property taxes and places them in an account titled "Unsegregated Property Tax Account. II The money is invested and interest is earned prior to distribution to the taxing districts. The interest earnings on the account have historically been put in the County's General Fund. In 1981 the Portland School District sued Multnomah County claiming the interest earnings should be distributed to the taxing districts. The Tax Court ruled in favor of the school district in 1983. . The interest earned on taxes levied by Eugene from 1981 to 1984 is $467,000. In FY 84, the interest earned is about $167,000. Lane County made an offer to the City on January 29, 1985 which indicated it will pay interest earnings from May 23, 1984 to January 8, 1985 of $84,000 to the City and about $6,000 to the Urban Renewal Agency. Subsequent interest earnings would be paid to the City and the Urban Renewal Agency. Part of the offer also provides that County officials should be held harmless against future claims. On March 5, the County Administrator notified the City that the offer of January 29 would be rescinded if it were not accepted by March 12, 1985, Mr. Wong said. The 4-J School District is still negotiating with Lane County about the unsegregated taxes. The staff recommended the council approve the draft letter from City Manager Micheal Gleason to James Johnson, County Administrator, distributed to the council. The letter indicates the City Council and the Urban Renewal Agency neither accepts or rejects the January 29 offer and that any final settlement must have some judicial sanction. Answering questions from Ms. Ehrman, Mr. Sercombe said the City will monitor the 4-J School District and Lane County negotiations to see if a jUdicial decision results. A court ruling on those negotiations would be applicable to the City and might be made in three to five months. Mr. Sercombe is not aware of any other case which might be decided first. Mr. Miller wanted to affirm that the City and the school district are cooperating. Mr. Sercombe said the rejection of the January 29 deadline will not convey a negative attitude. Both the school board and the county commissioners are aware of the legal issues. The City wants to be sure whatever it does is prudent and legal. e Lane County Commissioner John Ball said county representatives are negotiating with a representative group of school district administrators and have agreed on the amounts of money. Their is disagreement on a clause the county representatives want to insert that would allow the legislature to deal with MINUTES--Eugene City Council March 11, 1985 Page 12