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Marion County approves $125,000 amendment to Oregon Health Authority agreement to cover higher remittance rate
Summary
Commissioners approved amendment No. 2 to Marion County's intergovernmental agreement with the Oregon Health Authority, adding $125,000 to cover an increase in the state remittance factor for Foodborne Illness Prevention Program-related fees.
Marion County commissioners on Sept. 24 approved amendment number 2 to an intergovernmental agreement with the Oregon Health Authority (OHA), adding $125,000 and bringing the contract total to $525,000 to cover a higher remittance rate tied to licensing and inspection fees.
Ryan Matthews, administrator for Marion County Health and Human Services, told the board the increase reflects an OHA change to the remittance factor for the state's Foodborne Illness Prevention Program (FIP), which adjustments the percentage counties must remit from fees they collect. "That is the rate is increasing for the remittance factor that we need to, pay to the state based on the fees that we collect," Matthews said, noting the remittance factor is increasing from 13.42% to 15.24% and the county's annual share is determined to be $99,657.
Matthews explained the contract differs from many OHA agreements because Marion County will remit money to the state rather than receive incoming funds. "Remittance factors is the term that they use. It's a very polite way of saying it's a tax," he told the board.
During discussion, a commissioner questioned why Marion County should remit funds to the state for functions the county performs locally and said the county's environmental health staff perform restaurant and pool inspections. "I just think it's a wasted fee that I have to pay when I go sit down at the the former Hamburger Flippers place over here to eat my hamburger," the commissioner said, while also thanking county staff for their work. Matthews and commissioners repeatedly acknowledged the county provides most inspection services and that the state's role is primarily regulatory and statewide oversight.
A motion to approve amendment number 2 to the IGA, adding $125,000 to cover the remittance fee increase for licensing and inspection, was moved and seconded and carried on an affirmative voice vote.
The agreement covers licensing and inspections for restaurants, mobile food units, public pools and lodging through 2029 and, per county staff, requires quarterly payment to OHA based on fees collected. Matthews said the $99,657 figure is the county's annual remittance estimate under the new 15.24% factor and that the amendment increases the contract total to $525,000 to cover the expected payments through the contract term.
