More than $4 million set aside by Clatsop County should be distributed to taxing districts this week.

The County Board of Commissioners, during its regular meeting in the Judge Guy Boyington Building Monday night, rescinded a reserve account to hold money for possible payment of a huge refund to Wauna Mill.

County Manager Duane Cole conducted a whirlwind tour of 41 of the 60 taxing districts to convince them to sign onto his plan for getting the money back, concluding with a stop at the Westport-Wauna Rural Fire Protection District less than two weeks ago.

Cash-strapped taxing districts could have access to the money sometime this week.

Seaside School District has been waiting for its $800,000 share of the funds, knowing that without it, mid-year staffing reductions would be made because of a declining budget this year. Superintendent Doug Dougherty was thankful to hear that the money to pay salaries and benefits for district employees would be in the district’s hands by the end of the week.

“At this point, we’ll be able to continue our current program levels for this year,” he said today. The district appreciates that the county and all the taxing districts voted to approve the intergovernmental agreement, Dougherty said.

Late last fall, just as the recession struck the nation, the county set aside $4.1 million to protect against a possible loss in a lawsuit.

The saga began when the mill’s owner, Georgia Pacific Consumer Products, was granted an exemption to certain taxes if Wauna Mill met employment obligations. When the mill failed to meet the obligations, all exempted taxes became due. GP paid the taxes but appealed the disqualification and the amount of the taxes. The legal battles over the money were expected to take years, so the county placed the money in a reserve account. If the county lost, it would have to pay the money back with 12 percent interest when the case was settled.

But with the economy stalling, taxing districts felt they could use the money. Cole came up with the idea of approaching all 60 taxing districts and asking them to agree to issue a bond to pay Wauna a lump sum, including 12 percent interest, if the county lost the case and the settlement were for more than $1 million.

The bond – to be paid with future tax revenues – will pay for any money awarded to Wauna Mill when the case is settled.

The thinking was that the districts could use the money right away, and the bond would be a more reasonable interest rate.

“Hopefully, this is the end of the road for giving the money back to our taxing districts,” Cole said. “With the economy the way it is, it’s real important to get the money back to our districts.”

The Board voted unanimously to rescind the account and distribute the money to taxing districts. Voting to rescind were commissioners Patricia Roberts, John Raichl, Jeff Hazen and Dirk Rohne.

“This is money that (districts) can use,” Cole said. “Once we get this approved we’ll make some noise.”

The commissioner District 5 seat was vacant because the Clerk’s office certified the recall of Commissioner Ann Samuelson earlier in the day. By statute, when a recall is certified, the commissioner for that seat is immediately removed.

Samuelson lost in her bid to retain her seat by only four votes Oct. 27, causing an automatic hand recount to kick in. That recount is to be conducted today.

In other business, the Board:

? Unanimously approved a resolution increasing civil fees, effective Jan. 1, for the Sheriff’s Office to reflect changes made by the Oregon Legislature.

The Sheriff’s Office also recommended that fees for prisoner boarding (for municipalities such as Astoria) be removed, and that a flat fee be charged for providing deputies for events.

? Appointed Cliff Watt to the Commission on Children and Families.

? Approved legal services contracts for county counsel with Reynolds, Henningsgaard, and Bennett. It also approved legal service with Bullard, Smith, Jernstedt, Wilson as labor counsel. Both contracts are for three-year terms beginning Jan. 1.

? Agreed to buy a used International truck for $80,520 from Motor Trucks, Inc. The purchase includes a trade-in of an old truck in need of repairs. The new truck will be used to tow a low-boy trailer, which is used to haul heavy equipment around the county.

? Proclaimed Nov. 9 through 15 National Veterans Awareness Week.

? Approved a letter of support for Marine Reserve Advisory Committee applicants from Clatsop County.

Reporter Deeda Schroeder contributed to this story.