South Gilliam fire and cemetery districts request county help after multi‑year tax appeals with Pacific Power and Avangrid

Representatives of the South Gilliam County Cemetery District and the South Gilliam Fire Protection District told Gilliam County Court on March 5 that tax distributions have been withheld pending multi‑year appeals filed by Pacific Power (Pacificorp) and Avangrid, creating financial hardship for small taxing districts that rely on property tax receipts.

Kevin Potter, chairman of the South Gilliam County Cemetery District, asked the county to provide $10,345 to offset withheld property tax distributions for tax years 2022–2024. Potter said the cemetery district’s annual expendable budget is modest and that the withheld amount represents about 10% of its budget; he asked the county to either backfill the withheld taxes now from county general or economic development funds with an agreement to recover the funds if the appeal is resolved against the taxpayers, or to treat the payment as a grant.

Jeff Schott, director with the South Gilliam Fire District, made a similar appeal while noting the fire district’s operational obligations, including mutual aid and insurance expenses. Shannon (last name not provided), appearing via phone, said the districts had already paid nearly $40,000 in expenses this fiscal year and that withheld revenues were creating immediate strain.

Assessor’s office staff Kelly Smith reviewed the county’s calculations and said some line‑item differences merited a deeper review; she suggested a follow‑up meeting to reconcile budgets and reserves. The assessor’s office explained that the withholdings result from a statutory process under which the assessor and treasurer may set aside tax receipts in a separate interest‑bearing account while appeals are pending; transcript comments referenced ORS citations (transcript read as "OS 305286" and "OS 311390"). County officials said they would consult legal counsel to determine the county’s authority and exposure if it elected to advance funds to affected districts.

Commissioners expressed sympathy and agreed there is a need to develop a uniform approach so the county does not create an inequitable precedent; they directed staff to consult legal counsel, examine whether grants or loans can be used to "make districts whole," and to report back with options. The court did not adopt an immediate appropriation at the March 5 meeting.

The matter arises from large utility property tax appeals that can affect multiple taxing districts; county staff said outcomes depend on state case law and the ultimate settlement of appeals. The court agreed to continue communication with the cemetery and fire district representatives and to explore administrative or grant mechanisms to relieve short‑term operational stress.