County won't pay city early
The city made a request to Mower County for an early apportionment of $900,000, or 70 percent, of real estate taxes due the government entity.
The regular apportionment date is June 21, according to county coordinator Craig Oscarson.
The earliest the county could pay the real estate taxes to the city would be 10 days early.
The city's request was made by letter to Mower County Auditor-Treasurer Doug Groh in early May.
According to Oscarson, the reason for the city's request was to earn more interest income.
“Of course,” Oscarson said, “if you would pay them early, we would lose that interest income.
“State statute says you don't have to pay the taxes to the government entities until June 21,” he added. “If you would do this for the city of Austin, other local government entities could make the same request.”
Donna Welsh, the county's finance director, confirmed what Oscarson told the county commissioners.
No explanation was given for the reason the city's request languished until Tuesday's meeting of the county board, when it was brought to the commissioners' attention.
“What about delinquent taxpayers?” asked Ray Tucker, 2nd District county commissioner, “What affect would they have on the taxes we collect if we would pay the city its taxes early?”
“May 15 is the cutoff date for first-half taxes to be paid,” Oscarson said, “When May 16 arrives, the clock is ticking for the next disbursement in the fall.”
The city's request for an early payment of real estate taxes collected by Mower County was made May 2.
Had the $900,000 been paid to the city that date, it would have given the city six full weeks to collect interest income by investing the 70 percent of its first half taxes.
Welch pointed out, not only would the county lose that income, but to individually apportion the taxes from all the funds, where it is held, would be “added work” for the county finance officer and others in county government.
No other city or township government entity in Mower County has ever requested such an early payment.
Tucker made a motion to deny the city's request, but Oscarson and other commissioners suggested the motion read that the county will “distribute real estate taxes according to statute.”
Richard P. Cummings, 1st District, seconded the motion and all five county commissioners voted “Aye.”
