Minutes 10-05-2021 Virtual Business Meeting

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21 Commissioner McKee asked if the number of many homeowners that would be eligible for this could be identified. Travis Myren said there are about 10,000 households that have owned a home for 10 years or more, and experienced an increase in the tax bill due to revaluation. He said using the countywide percentage of people making 80% AMI or higher, it leads to a number of 1378 and average increase among that group was $158, equaling $218,000 in estimated exposure. He said he feels less confident that this cohort represents income distribution of the entire county, but this was the best estimation staff could measure to determine if the allocated $250,000 would be sufficient. Commissioner McKee said this would mean $218,000 per year escalating and ongoing. He said every time there is a revaluation in Orange County values will increase, minus a catastrophic event. He said even if values do not go up, the county can expect $200,000 plus in ongoing costs for this program. He said this will be paid with ARPA money this year, and asked if this will have to come from county funds going forward. Travis Myren said it will be a board policy decision of how to fund the program in future years. Commissioner McKee said it would likely be funded through other sources. He said he owns and runs a farm, and benefit from a lower tax rate due to him farming the land. He said if he sells the land, the money has to be paid back. He asked if the homeowner passes away and house is sold, is there a clawback provision on this tax advantage. He asked if the home is handed down to the next generation of family, will this be a generational subsidy to the family over time. He said the original proposal did not have an age limit, but asked if the Jackson Center age limit was 65. Travis Myren said the age limit for that program is 62. Chair Price said this program would not decrease the value of the property, so it is dependent on the homeowner, and the next generation will be liable for the value of the home. Commissioner McKee said he understands. He said there is a subsidy to the taxes paid, and he gets an advantage of paying a lower tax rate on his farm, for which he would required to repay should he sell the land. Chair Price said Commissioner McKee's benefit is due to the use of his land, as opposed to his income. Commissioner McKee said he is asking these questions because he does not believe this program will stop, nor should it, once started due to the gentrification seen across the county. He said he wants to think about the long-term implications of the program. Chair Price said she wants to hear from George Barrett on the Jackson Center's program. Commissioner Greene said the Jackson Center uses age 62, but it is flexible based on a formula that they use. She said she understands why Chair Price wants to decrease the age to at least 50, and she has gone back and forth herself. She said Commissioner Richards has brought up a good question about the basic purpose of the program. She is on the side of getting rid of age limit in favor of preserving community. She said Commissioner McKee has brought up some good questions about the sustainability of the program and she wonders if there should be a clawback provision. She said if someone is going to buy a property at a gentrified inflated price, why not have a provision where the county would get maybe three years of the tax back, and let the buyer and seller work it out about who pays. Chair Price said her original intent was to help preserve the neighborhood, and perhaps with an extra push for seniors who may have lived there for half a century. George Barrett said there is no age limit in the Jackson Center property tax program. He said age is taken into account and is used it to weigh the award amount. He said the