Property tax bills have some glad tidings

Barring last-minute changes of heart, cities and counties in the south metro are heading for the most widespread cuts in local property tax cuts anywhere in the metro area.

A survey compiled at the request of the Star Tribune shows that taxes in almost every city in Dakota and Scott counties are on a downward slide, owing in part to a dip in property values. That's much less true in other counties.

Not every property owner's taxes will fall. In Jordan, for instance, Mayor Pete Ewals said variations in home values mean that just over half the city tax bills will be reduced, as the City Council raises total tax collections by about 3 percent.

Because of time lags in assessing property, homeowners throughout the metro are finally seeing their tax bills for next year reflect the big declines in property values that have taken place in recent years. In Dakota County, for instance, the median home value dropped by about 8 percent, though the average drop varies by 4 percentage points when broken down by city.

The median home value in Eagan slipped just 6.85 percent to $239,400. The median home value in Inver Grove Heights, however, slid 10.45 percent to $213,400.

"We got hit pretty hard on that," said Ann Lanoue, the Inver Grove Heights finance director. But given the housing market and residents' frustrations with values last year, she said, "I think it was kind of what they were looking for."

Taxes for the median home in the city will go down between $37 and $98, depending on the school district. And so Lanoue's telephone has been ringing sparingly this year as residents digest their truth-in-taxation notices. "It's probably the quietest year in a long time," she said.

"While a very limited number of properties registered either no change or a small increase in their taxable value," the statement said, "the vast majority were showing valuation decreases of anywhere from 1 to almost 40 percent. In fact, the 'high-to-low' range of property valuations totaled to a shocking 45-percentage-point swing."

Knowing that, the board managed to reduce the total levy this year, said County Board Chair Jon Ulrich -- "something we won't be able to duplicate next year, I'm sure."

The Dakota County board and the councils in most cities aimed for tax levies this year that would reduce bills for residents or keep them flat. County Finance Director Matt Smith said board members "wanted to do everything they could to not add to the burdens people are already facing."

Even so, residents of median-value homes in Eagan and Apple Valley whose houses are within the Rosemount-Apple Valley-Eagan school district will see slight increases.

Jeff Solomon, the director of finance and operations for the school district, said its levy grew by about 5.7 percent for 2010, mostly because it was artificially lowered in 2009 when the district chose to spend down some fund balances. "It's not the result of increased spending or increased overall expenditure in any particular area," he said.

"It may not be business as usual as we move ahead, so we're trying to get the public more engaged," Hedges said.