The following are Frequently Asked Questions in regards to the 2020-21 Capital Bond Tax Levy associated with the West Linn-Wilsonville School District.
Why did I receive a letter in the mail regarding 2020-21 property taxes?
In October, it came to the district's attention that the 2020-21 tax rate exceeded the $3/$1,000 projection that the district has historically projected for the community. The district sent the letter to West Linn-Wilsonville residents to alert them of the overage, the reason for the mistake, and of the corrective action that will be taken during the 2021-22 tax year.
What was the overage for the 2020-21 tax year?
West Linn-Wilsonville School District has historically projected a tax rate of up to $3 per $1,000 assessed value for Capital Bond Construction projects. We have long based our bond programs on this projection, and only pursue bonds of a size and at a time when we do not expect to exceed this projection. The tax rate for the 2020-2021 year exceeded our $3 projected rate by $0.33, and was $3.3312 per $1,000 assessed value.
What does this average mean toward my overall tax bill?
The overage is an increase of $0.33 per $1,000 assessed value of your property. For context, this is an increase of approximately $132.48 for a home with an assessed value of $400,000.
How did the overage occur?
Upon noticing the higher than expected tax rate in mid-October, the District found the error resulted from the District using incomplete information that was provided to the District by its bond paying agent/bank. The financial information available neglected to reflect a refinancing of the District' s Series 2015 GO Bonds. This refinancing, which saved taxpayers nearly $5 million overall, reduced the amount of debt service due this 2020-21 tax year, but this reduction was not accounted for in the information provided to the District. This error will result in approximately $3 million more than is needed being collected this year to make the debt service payment.
What will the district do to correct this overage?
The District has consulted with the Oregon Department of Revenue (ODR) who has recommended that to correct this situation the District should collect a reduced amount next tax year 2021-22. By carrying forward the additional $3 million into 2021-22, the District estimates that the bond levy rate for next year will be approximately $2.65 per $1,000 assessed value. This would create an average capital bond rate of less than $3.00 per $1,000 for this two-year period. Residents can therefore expect to see a reduction in their tax rate in the 2021-22 year.