The city of Tomah budget will decrease the city’s portion of local property tax bills next year.
The city’s mill rate will drop from $8.51 in 2017 to $7.90 in 2018. The property levy will remain almost flat, rising from $5,121,713 in 2017 to $5,153,441 in 2018, a .06 percent increase.
For the owner of a $100,000 home, it means a decrease of about $63 in city taxes.
City administrator Roger Gorius said the decrease is due to the re-assessment of properties in the city.
“The property values went up,” he said. “It’s kind of a doubled-edged sword − your tax rate will go from $8.51 to $7.90, but depending on what you’ve done to your house over the last few years, your (taxes) might go up because you made improvements to your home.”
City treasurer Julia Mann said the average home value went up 8 percent.
“If your house value went up more than 8 percent, probably your taxes are going to go up,” she said. “But if you’re under 8 percent, you probably won’t see an increase in your taxes as far as the city’s tax rates goes.”
The reason why house values went up is mainly due to new home construction within the city, Mann said.
The city had a 1.98 percent increase in new construction, Mann said, which helped fuel the increase in the property tax base.
Gorius is pleased with the growth increase.
“It shows we’re moving forward in the right direction,” he said. “We’re getting growth inside the city, and we’re able to bring down the taxable rate on an individual property ... Because of the way the numbers came in, we don’t have to go out and borrow as much money for certain capital projects ... if we want to buy two dump trucks, we can fund two dump trucks instead of having to borrow, things like that.”
The Lake District tax is 6 cents per $1,000 of assessed value. The city budget meeting is scheduled for Nov. 20 at 6 p.m. in council chamber at Tomah City Hall.