Polk County illegally stripped the elected treasurer of its duties, a state judge ruled on Sept. 20.
The ruling means that Polk County Treasurer Steve Milligan will perform the job duties required under Oregon law.
Milligan alleged in a lawsuit last November that the county had whittled down the treasurer’s salary to almost zero and assigned work of that office to an unelected county official.
His lawsuit sought a judge’s order forcing Polk County to not block its elected treasurer from carrying out their duties. He also sought up to $300,000 for damages and back pay.
Now, Milligan expects the treasurer to be restored to a full-time position and an annual salary of around $101,000.
“Exactly how we get there is a work in progress,” he said.
Under state law, duties of a county treasurer include receiving and paying out county money, keeping treasury books and issuing monthly financial statements.
But in 2016, then-Polk County Commissioners Jennifer Wheeler, Mike Ainsworth and Craig Pope unanimously approved a resolution in 2016 that transferred those duties to its finance manager, an unelected position overseen by the county administrator. Those changes were reiterated in an ordinance created earlier this year.
“You can’t do that,” according to Yamhill County Circuit Court Judge Ladd Wiles, who presided over the case after all three Polk County judges recused themselves. “The ordinance is unlawful. It’s invalid,” he said at the hearing last Friday.
Wiles declined to rule on other claims made in the lawsuit, including the money that Milligan was seeking. That is “a matter of county concern,” the judge said. “I don’t see any developed argument or claim for any sort of back pay, wages or economic damages.”
The next step in the case is for Milligan’s attorney, Misha Isaak, to draft an order summarizing the judge’s findings for the signature. Isaak was previously chief counsel to former Gov. Kate Brown.
Once that order is filed, Polk County will have 30 days to appeal the judge’s ruling.
For over eight years, the treasurer has served as nothing more than a figurehead, according to Milligan.
He told Salem Reporter that violates the oath he took when he first held public office over 20 years ago to uphold the U.S. Constitution and Oregon law.
“I didn’t just swear it for the time that I was an elected official. I swore it for the rest of my life,” he said.
Milligan is running for re-election in November against Chris Patoine, the owner and manager of Medlink, a non-emergency medical transportation company.
He said if the judge’s ruling stands, and especially if Milligan wins re-election, “There’s going to be some relationship-building that has to happen.”
Milligan was the mayor of Monmouth from 2017 to 2018. He previously served on the Monmouth City Council and the Central School District Board. He also worked more than 10 years in accounting and financial management for businesses and nonprofits, according to his lawsuit.
Milligan sued the county and its administrator, Greg Hansen, in November 2023 in Polk County Circuit Court.
He told Salem Reporter at the time that the county paid him a $1,000 monthly stipend, which amounts to one-fifth of full-time pay, and that his day-to-day work amounted to “nothing.”
Andrew Campbell, an attorney representing the county, argued at the hearing last week that Oregon law allows counties to pass their own ordinances.
“Counties can enact ordinances on any topic they like,” he said.
Nine Oregon counties – including Lane and Washington – have adopted home rule charters, allowing voters to decide how their county government is organized. Counties without such charters, including Polk, are required to rely on state law, according to the state Legislature.
Milligan filed the lawsuit with Mary Olson, a Polk County resident who voted for him in the 2020 election and “wishes to have the elected treasurer perform the duties of that office,” according to the lawsuit.
Wiles said at the hearing that Olson couldn’t be part of the case because the harm she alleged is “speculative, and simply trying to vindicate the public’s right to have the laws properly administered as she thinks they should be.”
Wiles did not rule on Millgan’s claim that the county’s handling of the treasurer job violates voters’ Constitutional right to elect their treasurer.
The judge said that the Oregon Constitution does not clearly describe a county treasurer’s responsibilities. He also said that the Constitution gives counties the authority to regulate their officers’ duties.
“It doesn’t say they can’t regulate the office of the treasurer,” he said.
Milligan also alleged that county officials wouldn’t allow him to use the county offices where those responsible for financial management work. He was not given a key and was instead assigned to a small office space in the basement of the Polk County Courthouse.
But Wiles said that declining to open a door and putting an office in the basement are not obstruction.
“I don’t think the treasurer has a Constitutional or statutory mandate to pick the corner office with the best view,” he said. “That’s a matter of county concern that they probably get to decide.”
The judge also said that he doesn’t believe Hansen tried to intentionally block Milligan from doing his job.
Polk County Commissioner Jeremy Gordon said he wasn’t surprised that Wiles ruled against the county’s ordinance.
“I am also not surprised that Judge Wiles ruled Mr. Milligan does not have standing to demand a particular salary and office space of his choosing,” said Gordon.
Gordon said he has “no doubt” that the county can obey state law governing county treasurers “while continuing to ensure financial controls appropriate for a modern government organization our size.”
Commissioner Craig Pope said he was disappointed that all of Milligan’s claims weren’t dismissed, but that “Polk County taxpayers’ day in court has come and Treasurer Milligan will not prevail on his efforts to wring additional compensation and unreasonable control from the citizens of Polk County.”
Pope said that the ordinance was intended to protect the accounts and systems of the county’s $125 million annual budget, and that Milligan was aware of the treasurer’s duties and pay when he ran for the office.
“This was never personal,” he said.
Pope said that Milligan should better prioritize his time to “actually show up” for the job, and that the treasurer has never produced a report or attended public finance or budget meetings during his term.
Milligan said that Pope has never raised concerns about any deficiency in his work or attendance in his nearly four years as treasurer.
“I never produced a report because the finance manager did not include me in the process, even though I made early attempts to be included. I participated in the budget meeting in 2021 and was summarily ignored by the budget committee chair when I tried to engage them in a serious conversation about the treasurer’s compensation,” Milligan said.
He said he was “ignored or not allowed to” participate in the county’s budget process.
Commissioner Lyle Mordhorst said that he and his colleagues “will move forward continuing to do the best job we can for our constituents.”
Hansen didn’t respond to a request seeking comment on the judge’s ruling.
CLARIFICATION: The story has been updated to clarify the extent of the judge’s ruling.
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Treasurer sues Polk County, alleges officials block him from doing his job
Contact reporter Ardeshir Tabrizian: [email protected] or 503-929-3053.
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Ardeshir Tabrizian has covered criminal justice and housing for Salem Reporter since September 2021. As an Oregon native, his award-winning watchdog journalism has traversed the state. He has done reporting for The Oregonian, Eugene Weekly and Malheur Enterprise.