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The on going saga of USG can be nothing short of confusing, but I feel that it is worth investigating. This sordid affair includes our Money, funneled through Special Districts, Columbia County, the Port and City of Rainier. It is an item that needs to be brought forth to the county taxpayer.
This week, I thought that it would be appropriate, to continue on with the latest information on the problems facing REDCO, Columbia County, Port of St. Helens and the City of Rainier. Last week I wrote an article with various information regarding money problems of REDCO and how they were trying to solve their outstanding debt to USG. I discovered that some of the information that I had reported to you last week was not quite accurate, as certain district boards had reported.
All the other " Special districts were asked to give up different values from 50.04%-0.69% not just 30% of their monies received from the property taxes that USG was paying into the county.
REDCO's debt was the result of REDCO borrowing 3.2 million dollars from USG to purchase the 125 acres parcel from the Port of St. Helens where the facility was to be built.
Not only did REDCO borrow the money from USG, REDCO gave USG the property, and REDCO has to pay USG back the 3.2 million dollars they borrowed, pretty sweet deal for USG!
The wisdom of the Big Four (REDCO, Port, Col County and City of Rainier) is that it is a good idea to return some of the monies generated from USG property taxes back to REDCO.
In turn, REDCO pays back USG the collected monies for the outstanding debt that REDCO owes USG. After all no one would of gotten property tax revenue if USG had not located here in Columbia County.
Without USG, Columbia County taxpayers would not be in debt to USG. Without USG we would not have given up several years of all our Road Department money. Because USG is in an Enterprise zone we will receive no property tax from USG for at least 7 years. Without property tax income we can not the $72,000.00 per year to pay the bank note for USG.
The Port lost approximately $150,000.00 to USG because the Ports' attorney did not read the contract correctly, and USG being such a good friend to Columbia County refused to return the funds. Because of property tax breaks, buildings are valued at a mere pittance, along with other corporate giveaways. Now the taxpayers are asked to give USG back a % of our property tax revenues.
Is it the taxpayers' fault that REDCO screwed up and capped the monies that they would receive from tax revenue from USG to $300,000.00 instead of taking the money from the tax revenue of what the debt payment was?
Their answer to this was that they were trying to help out the other districts with money problems because some of the levies that the districts put to the taxpayer failed.
If I remember correctly, there were several districts that managed to get levies approved by County taxpayers. These districts are now being asked to give REDCO money that will come out of their budgets. If these districts have figured in their budgets money from USG, as they are entitled to, they cannot give it back. I do believe that giving this money back is illegal. I believe that they have to justify and list this money as an expenditure.
When a special district is formed, they usually list in their by-laws what their purpose is. I can't think of one district where their by-laws state that their purpose is to bail out another district. I would think, that this alone would send up a red flag as "illegal."
If these districts can perform their duties as usual with out the 30% return money for several years, than perhaps they did not need it in the first place. If they cannot do their required tasks properly than they certainly should not give money to REDCO.
Here is yet, another bit of the confusing puzzle, REDCO, the Port of St. Helens, Columbia County, and City of Rainier are heading to court to see if it is legal to take back money that is supposed to go to special districts through the collection of property taxes.
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