Assessor reports tax commitment: taxable value up about $29 million; example homeowner impact shared

At the council meeting July 21 the assessor's office reported that tax commitment for the year has been completed and that the city's net taxable valuation increased by roughly $29 million compared with the prior year. Assessor staff explained they declared an 85% ratio for valuation purposes; the state-certified ratio for that past sales window is 66% and lags by approximately two years.

Joe St. Peter of the assessor's staff explained that the state's published ratio is based on older sales data and staff made internal market adjustments that supported the 85% declaration. The assessor staff walked council through homeowner examples: using a $300,000 home with homestead exemption at the adjusted ratio and a mill rate of $22.88, staff illustrated an estimated annual tax increase of roughly $220 for that hypothetical homeowner. Staff also said homestead and veterans exemptions are ratioed and therefore fell in assessed valuation when the declared ratio changed (homestead from $23,250 to about $21,250; veterans exemption also reduced on valuation terms).

Assessor and finance staff said the city will continue to monitor the state's sales-ratio data and that next-year revaluation work is underway with a target roll-out in FY28. Councilors asked whether changes would affect state revenue-sharing formulas; staff said state revenue-share calculations use sales-tax formulas and statewide adjustments that effectively normalize different municipal ratios for revenue-share computations, though homestead-reimbursement formulas are affected.

What residents should know: staff gave a concrete illustration of how ratioing and the mill rate translate to a homeowner example; the assessor emphasized the 85% declared ratio is the result of staff work on recent sales data and market adjustments, and that an upcoming revaluation process is planned.