Commissioners are expected to lower the rate that determines property taxes by 0.2 mills at their meeting at 7 p.m. tonight at 100 Cherokee St.
That’s a savings of $6 annually for a home valued at $100,000, $14 for a $200,000 home and $38 for a $500,000 home, said Jim Pehrson, city finance director.
Chairman Tim Lee acknowledges the savings are small but says it’s a “step in the right direction.”
The millage rate was increased in 2011 when property values fell. Decreasing property values leaves the city with less money because property taxes are based on value.
Property values haven’t risen. They fell again this year for the fourth straight year, but Lee says measures the county put in place when slashing its budget after the Great Recession first took hold will help it absorb the $4.3 million it will lose by lowering the tax rate.
“The digest hasn’t recovered,” Lee said, noting that an increase in other kinds of fees has allowed the city to look long term at decreasing the millage rate.
Pehrson doesn’t expect any specific department within the city to be negatively impacted by the loss of revenue.
“What we are seeing is an increase in other revenues that typically react quicker to economic factors than property taxes do,” Pehrson said.