MADRAS, OR -- Jefferson County taxing districts met with county leaders Friday to work out details of a massive repayment, after Portland General Electric paid $1.8 million dollars more in property taxes than it was supposed to in 2023. "It was a meeting called by PGE and PGE was not present," says Lynn Breeden, Chair of the Crooked River Ranch Special Road District Board. PGE tells KBND News the meeting was called by the Jefferson County Administrator, not the utility, although it was invited.
Breeden says he's frustrated he couldn't talk directly to PGE but is pleased to learn there will be some help, "PGE is offering the county a half a million dollar grant to offset the expenses. So, they’ve actually thrown two bones: They’ve removed the interest and now they’re offering a half a million dollar reduction in the amount owed, via a grant." If the county accepts the $500,000 grant, Breeden's district will still owe just over $10,000, despite - he says - not receiving any of the original money. "Something’s going to get shorted to make up for the money," he says. He acknowledges other districts, like the library (pictured), face a much bigger shortfall.
Previous coverage: Jefferson Co. Taxing Districts Grapple With PGE Overpayment
The payback will occur as a reduction in PGE's 2024 property tax payment to Jefferson County, totaling about $1.2 million, which will deeply impact the second half of the fiscal year. For Breeden and others, it means a big adjustment in budgets they finalized in June, "If I have no wiggle room in the budget I have, I’m going to have to rewrite a new budget, along with all these other districts."
A PGE spokesperson told KBND Friday the mistake occurred "due to an overstatement in the net book value of PGE properties in Jefferson County submitted to the Oregon Departmebt of Revenue in 2023. Under state law, tax overpayments must be repayed to the tax payer. And an Oregon court case determined large corrections can be spread across all taxing districts. PGE says the $500,000 grant its offering will come from the utility’s general fund, which is paid for by shareholders. Representatives of the utility chose not to attend Friday's meeting after learning the agenda was focused on how to distribute the grant.
Jefferson County Commissioners will discuss the plan at their regular meeting on Wednesday.
Story updated to include clarification that Jefferson County called Friday's meeting, not PGE.
