| | | | | | | | Spotsylvania County
Board of Supervisors Agenda
Executive Summary |
| | | | | | | | Meeting Date:
| September 11, 2018 |
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| | | | | | | | Title:
| Authorization for County Administrator to Execute Class Action Opt-In Notice Form for Class Action Suit Related to Federal Payments in Lieu of Taxes |
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| | | | | | | | Agenda Title:
| Authorization for County Administrator to Execute Class Action Opt-In Notice Form for Class Action Suit Related to Federal Payments in Lieu of Taxes
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| | | | | | | | Recommendation:
| Staff recommends that the Board of Supervisors authorize the County Administrator to sign the Class Action Opt-In Notice Form, opting into the class action lawsuit pertaining to federal payments in lieu of taxes. |
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| | | | | | | | Non-Staff Name and Title of Presenters:
| Staff recommends that the Board of Supervisors authorize the County Administrator to sign the Class Action Opt-In Notice Form, opting into the class action lawsuit pertaining to federal payments in lieu of taxes. There is no direct cost to the County to opt into the lawsuit. |
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| | | | | | | | Summary:
| As ordered by the United States Court of Federal Claims, the County received notice of a class action lawsuit seeking to recover revenue that the Court has determined the federal government owes each class member related to annual payments in lieu of taxes (PILT). Given that Spotsylvania is home to more than 6,100 acres of National Park Service land and receives an annual PILT for that acreage, the County is believed to be a member of the class.
The Court ruled that the federal government was obligated to pay eligible local governments the full amounts calculated by the formula set forth in the PILT Act even though Congress failed to appropriate sufficient funds to do so in federal FY 2015 – FY 2017. As of the date the Court-ordered notice was prepared, an agreement had not been reached as to the total amount of underpayments over the course of FY 2015 – FY 2017. However, given annual reports obtained from the website of the Department of the Interior, Finance staff estimates the maximum underpayments combined for those three years to total $934.
According to the website of Class Counsel (Smith, Currie & Hancock, LLP), as of August 8, 2018, 27 Virginia local governments have opted into the class along with 765 localities in other states. Staff is seeking the Board’s authorization for the County Administrator to sign the Class Action Opt-In Notice Form, officially opting the County into the Class Action suit. |
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| | | | | | | | Financial Impact:
| There is no direct cost to the County to opt into the lawsuit. Legal fees and expenses that the Court determines should be paid to Class Counsel, if any, might be deducted from the money obtained for the class and might reduce the amount available for distribution back to class members, reducing the amount of funds the County could expect to receive as settlement of this suit. |
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| | | | | | | | Staff Contacts:
| Bonnie Jewell, Budget Manager |
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| | | | | | | | Legal Counsel:
| Karl Holsten, County Attorney |
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| | | | | | | | Consequence of Denial/Inaction:
| If this request is denied or no action is taken, the County will not be able to opt into the class action suit and will not be able to obtain any of the PILT funding that was reduced in FY 2015 – FY 2017 and not paid to the County by the federal government as required by the computations within the PILT Act. |
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| | | | | | | | Talking Points:
| Staff recommends that the Board of Supervisors authorize the County Administrator to sign the Class Action Opt-In Notice Form, opting into the class action lawsuit pertaining to federal payments in lieu of taxes. There is no direct cost to the County to opt into the lawsuit. |
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