In 1993, the Board adopted Resolution 93-224, authorizing the Teeter Plan as the methodology to apportion taxes and assessments on the County’s secured property tax rolls. Districts included in the Teeter Plan receive 100% of their taxes and assessments levied on the secured property tax roll, regardless of delinquencies. Delinquent tax amounts are distributed to the districts from the Teeter Plan funds. When delinquent taxes are collected, the Teeter Plan funds are reimbursed for the previously distributed tax. Those monies are then available to fund the next distribution to districts for delinquent taxes. The continued funding of the Teeter Plan is reliant on the fact that even if delinquent taxes on a parcel are not paid within five years, the Tax Collector will be able to sell the parcel at auction and the delinquent taxes will be paid from proceeds of that sale.
On October 31, 2000, the Board approved the inclusion of the City of Shasta Lake’s taxes and assessment districts into Shasta County’s Teeter Plan. The Wastewater Reclamation Facilities Assessment District was one of those districts. The district places assessments for the Series A & B issuances of debt on the County’s current secured property tax rolls.
Beginning June 30, 2006, several parcels within the Wastewater Reclamation Facilities Assessment District have defaulted on their property taxes each year and remain defaulted through 06/30/2017. As per the Teeter Plan, the district has received the full amount of the assessments levied each year, with the Teeter Plan funds covering the delinquent portion. Since 2006, the district has received $576,709.79 from the Teeter Plan funds, specifically for unpaid assessments.
Beginning in 2012, the Tax Collector attempted to auction the parcels to satisfy the delinquent taxes. However, the high dollar amount of the assessments levied by the district created a tax liability that is larger than the value of the property, therefore the parcels have not sold. The Tax Collector has repeatedly offered the parcels at auction, lowering the minimum bid to what is now far less than the delinquent tax amount.
Since the sale of the property is the source of reimbursement to the Teeter Plan funds for the amount distributed to the district for unpaid assessments, if the property is sold for less than the tax amount owed, the Teeter Plan funds will not be fully reimbursed and less will be available for future distributions.
The Wastewater Reclamation Facilities Assessment District, Series A & B is expected to continue to place assessments on the secured property tax roll through fiscal year 2033/2034. Removing the district from the Teeter Plan now, will assure that delinquencies on those future assessments will not be funded by Teeter Plan funds, further increasing the potential loss from the eventual sale of the defaulted properties.