PORT ANGELES — The City Council chose earlier this week to slightly decrease the amount of property tax it levies next year.
But because of dropping land values, some homeowners will still see an increase in how much they pay.
After several council members cited the need to send a message to their constituents that they understand how the recession affects pocketbooks, the City Council, with Dan Di Guilio absent, voted unanimously Tuesday to not add to Port Angeles’ regular levy and to lower one of its two special levies by $80,000, or nearly 26 percent.
The difference will be covered by a property tax reserve fund.
The decision came after a motion to raise the regular levy by 1 percent — the most allowed by state law — failed in a 3-3 tie at the meeting.
With the use of the reserve fund, that motion would have still reduced the city’s overall property tax, but by half as much as what was eventually approved.
City Council members Karen Rogers, Larry Williams and Cherie Kidd voted against any increase of the regular levy.
When explaining their votes, each said he or she was hesitant to approve an increase to any levy until the economy recovers.
“[Residents] are working hard to invest in the community,” Rogers said.
“I, for one, would like to send them a message and not increase their [regular] property tax . . . “
Whether or not property owners will actually see a decrease in the amount they pay the city through the levy in 2010 depends upon their new land assessment and how it compares with other properties in Port Angeles, said city Finance Director Yvonne Ziomkowski.
And since the total property value assessment in Port Angeles is estimated to drop 12 percent in 2010, some people will pay more even if the value of their own land doesn’t change.
Decrease in values
Clallam County Assessor Pam Rushton said property values are expected to decrease because there are more homes on the market than there are buyers.
If that prediction holds true, Ziomkowski said that homeowners can expect to pay the city less in 2010 if their new land assessment — delivered to them this month — is 10 percent lower than the assessment they received last year.
But if their property value decreases by less than 10 percent, stays the same or increases, they will pay more the city more next year, she said.
That’s because, with a citywide property value decrease of 12 percent, their share of the property levy would increase.
So what does that mean for the owner of a home that was valued at $200,000 in the last assessment?
Ziomkowski said that if that value stays the same, the owner will pay the city an additional $5.20 next year.
If it decreases by 10 percent, the pocketbook expense will remain steady at $470 per year.
And if the value decreases by 12 percent, the owner will pay Port Angeles $448 in 2010.
Also noteworthy at the meeting, the council approved a revised public records ordinance intended to make the handling of public records request more efficient and a contract amendment for construction of The Gateway transit center.
The amendment allocated $48,332 to Exeltech Consulting Inc. for additional project management time needed due to delays in construction.
The total cost of the project won’t be known until the city and Clallam Transit finish negotiations with Krei Architecture and Primo Construction overt who is responsible for other costs associated with delays.
City Manager Kent Myers said those negotiations will likely extend into the new year.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.