Yolo County developing tax relief program for West Sacramento school bond ‘error’

The Yolo County Board of Supervisors at its meeting later this month will consider a payment deferral program for thousands of West Sacramento homeowners facing an unexpected property tax increase due to a county “error.”

Officials with the county’s Department of Financial Services mistakenly believed debt payments on the Washington Unified School District Measure Q bond approved by voters in 2004 for facility improvements were ending.

Because of the oversight, the taxes that should have been levied last year have been carried forward to the current fiscal year to avoid default.

Tom Haynes, Yolo County’s interim chief financial officer, said the higher tax rate is needed to catch up on debt payments.

“We understand the concerns of West Sacramento homeowners, and we sincerely apologize for any hardships this situation has caused,” Haynes said in a county news release. “Rest assured, we are actively working on a program to assist burdened homeowners. We will present this proposed program at the upcoming Board of Supervisors meeting, and we appreciate the community’s patience as we work to find a solution.”

County officials said the tax payment deferral program, which will be presented at the Board of Supervisors Oct. 24 meeting, will provide homeowners facing financial hardship with the option of paying this one-time tax increase on the school bonds over a period of time without interest, penalties or late fees.

The increased tax rate is $120 per $100,000 of assessed property value per the 2004 bonds, according to the county. Using the median home price in the county, that means a $532,500 home would pay $639 a year. Last weekend, county officials mailed out clarifying information about the increased tax rates to more than 17,000 households.

Haynes has said that he expects tax rates will return to normal over the remaining life of the school bonds once the county caught up with debt payments after this fiscal year. Resident property tax payments are due in December and again in April.

At a Sept. 28 Washington Unified board meeting, Haynes apologized to West Sacramento residents “for any error on our part that has contributed to this situation.”

Measure Q was passed by voters in 2004 for school improvements, construction and modernization to eliminate overcrowding.

The school bonds — broken into Series A and Series B — are expected to be paid off by 2031. According to district officials, the current balance of the bonds are $31.65 million and $18.495 million, respectively.

Chairman of the Board of Supervisors Oscar Villegas said they are fully committed to addressing this issue promptly and fairly.

“The county takes responsibility for the oversight, and is actively exploring options to provide relief to affected residents,” Villegas said in the news release. “We understand the importance of transparent and efficient governance, and we will present these additional remedies at our upcoming meeting.”

For more information not addressed in the letter sent to West Sacramento homeowners, call the Yolo County Department of Financial Services at 530-666-8190 or send an email to DFS@YoloCounty.org.