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Molalla council OKs intergovernmental agreement with Clackamas County to replace $6,302 in lost tax revenue
Summary
The Molalla City Council unanimously approved Resolution 2026-03 authorizing an intergovernmental agreement with Clackamas County to reimburse $6,302.36 in tax revenue that was previously dispersed outside the Molalla taxing district; the city will forward the fire-district portion to the fire district once received.
The Molalla City Council unanimously adopted Resolution 2026-03 on Jan. 28, authorizing an intergovernmental agreement with Clackamas County to replace $6,302.36 in tax revenue that county records showed was dispersed outside the Molalla taxing district.
City Manager Dan Hobf told the council the county corrected a prior distribution error and offered to reimburse the city for the year during which the funds did not flow into the Molalla taxing district. "They're actually providing the city with the fire district's portion," Hobf said, and the city will transfer those funds to the fire district once received.
Council moved and seconded the resolution; the roll-call vote passed 6-0. Mayor Kaiser thanked staff for identifying the discrepancy and singled out Assistant City Manager Matt Cortheil for his work in investigating the matter. Cortheil in turn credited the city’s lead accountant and fire marshal for bringing the issue to staff’s attention.
The agreement is an intergovernmental IGA that authorizes the city manager to execute the document and accept the reimbursement. No additional appropriations or programmatic changes were discussed at the meeting; council members framed the action as restoring funds to the proper taxing jurisdiction and ensuring transparency for taxpayers.
The council approved the resolution by roll call; the meeting record states "Vote passes 6 0."
