Daggett County weighs judgment levy after $214,612 refund to MidAmerica Pipeline

Daggett County commissioners spent the meeting’s final agenda item on a centrally assessed tax refund to MidAmerica Pipeline and whether to pursue a judgment levy to recover county costs.

"The total refund due to MidAmerica was $214,611.70, of which Daggett County's portion was $94,353.34," Speaker 4 (Treasurer, self-identified) told the commission, and laid out the amounts charged to county funds, including the county bond fund (Fund 12: $9,881.69), Fund 10 ($69,522.98) and Fund 33 (~$14,008.48). The treasurer said she deducts refunded amounts from future disbursements and that the checks for the refund had already been written.

Why it matters: Commissioners said the refund represents a significant hit to some funds, particularly Fund 10, and could force decisions about raising taxes, reallocating costs, or cutting spending. Speaker 3 emphasized improving assessing and collecting before defaulting to tax increases, saying the assessing and collecting side "seems like a bleeding problem" the county must address.

Options and timing: Speaker 4 explained the judgment levy mechanism and that state code and a judgment-levy checklist (previously emailed by staff) set procedural requirements. "I believe you could recoup it up to 5 years," the treasurer said, noting a shorter recoupment period concentrates the tax impact into fewer years while spreading it reduces annual spikes. She warned that, even if a judgment levy is approved, recoupment typically appears on the next tax cycle (minimum collections in November), delaying county reimbursement by about a year.

Fiscal detail and estimates: Commissioners and staff discussed rough magnitudes: the treasurer estimated the recurring impact absent disputed centrally assessed payments at roughly $75,000 per year and an aggregate shortfall near $214,000 for the contested years. Commissioners asked for amortization figures and what an equivalent tax-rate change would be to cover a $215,000 shortfall.

Interfund and overhead fixes: Several commissioners and staff proposed a staff-time analysis to allocate labor and overhead across county funds so enterprise or special funds "pay their way" rather than drawing on Fund 10. The treasurer described a suggested approach: collect hours and wages, compute percentages (for example, 5% of time spent on an RDA activity would mean charging that share of wages and benefits), and apply an agreed overhead percentage (staff discussed 15%–20%) to guide transfers.

Cost recovery and litigation expenses: The treasurer said the county can seek to recover attorney fees and litigation costs from other taxing entities and has begun compiling invoices for that purpose.

Deadlines and next steps: Commissioners reviewed procedural deadlines: a levy hearing must be held before June 22 for rate adoption timelines, and truth-in-taxation (TNT) notice requirements govern larger permanent rate increases. The commission directed staff to prepare worksheets, gather amortization schedules, and return with precise figures; staff also offered to check statutory timing and to schedule a public work meeting to review options, noting work meetings must meet public-notice requirements.

No final action: The commission did not adopt a judgment levy at the meeting. Instead, it instructed staff to provide detailed worksheets and scheduling options so the board can decide whether to pursue a judgment levy, spread recovery over multiple years, raise rates via TNT, or seek other interfund adjustments.

What comes next: Staff will prepare the requested worksheets and follow up on statutory deadlines and the feasibility of a work session. The commission flagged a departmental reconciliation/audit for several funds (including Fund 28) to verify cash and reimbursements before making a formal decision.