AUBURN – Some residents could see their property values double or triple when a new city revaluation is finalized, City Manager Pat Finnigan announced in a joint City Council/School Committee workshop Tuesday night.
Even more moderate increases in property values could raise a homeowner’s tax bill by $100 to $600 a year, she said, even as the property tax rate is lowered
She urged officials to remember such drastic changes when considering next year’s budget.
“The tax rate in a vacuum doesn’t matter,” she said. “What matters is what the tax bill might be.”
Because Auburn’s real estate market is hot, housing prices have skyrocketed in recent years. Although final figures won’t be available until June, Finnigan said the city’s valuation is likely to increase $700 million, from nearly $1.3 billion to nearly $2 billion.
At that valuation, the proposed city and school system budgets would require a $20.26 property tax per $1,000 of valuation. That’s down $9.12, but increases in home values mean many homeowners would pay more, not less.
In one example Finnigan outlined, a $100,000 home increased in value to $150,000. That home’s tax bill would go from $2,938 to $3,039, a $101 increase.
In another example, a $100,000 home increased in value to $175,000. That home’s tax bill would go from $2,938 to $3,546, a $607 increase.
To lower the anticipated tax rate $1, city councilors would need to cut the proposed city and school budgets $1.3 million. To lower the tax rate 10 cents, they would need to cut $130,000.
“It’s quite a gulf to cross to make any dent in the tax rate,” Finnigan said.
Councilors got their first look at the school system’s proposed $31.7 million budget Tuesday. They said they would keep Finnigan’s warning in mind as they consider next year’s spending, and they promised to keep school officials up to date so the committee could make any necessary cuts as soon as possible.
The City Council will hold a preliminary budget hearing at 7 p.m. Monday, May 16, in Auburn Hall.
Auburn has spent two years working on a comprehensive revaluation. The last citywide revaluation was done 15 years ago.
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