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City assessor reports citywide assessed-value increases averaging 12'15%; DDA capture rose with downtown new construction
Summary
Assessor Jeff reported that 2025 assessed values rose roughly 12'15% on average across Harbor Springs, with some neighborhoods higher; new downtown construction and ownership transfers contributed to a significant DDA taxable-value capture increase.
Harbor Springs' assessor presented the annual assessment report and told council the citywide assessed values increased on average about 12'15% year over year, though some neighborhoods saw larger swings. The values were affirmed by the board of review and by county and state processes, the assessor said.
Jeff explained the difference between assessed value and taxable value under Michigan rules and noted that transfers of ownership "uncap" taxable values and can cause substantial increases when properties change hands. He pointed to downtown new construction and several large projects as contributors to a marked rise in DDA taxable-value capture over the last reporting cycle.
The assessor described the DDA mechanism: the DDA captures tax revenue growth above a frozen baseline to fund downtown improvements, and recent downtown building projects added new taxable value that increased that capture. He cautioned the council against attributing the entire increase to a single project, saying multiple factors'including new construction and transfers'combined to produce the jump.
Council members asked whether the assessment data would change revenue budgeting; the assessor said staff generally use conservative estimates and there were no immediate items that would "blow up the budget" but noted uncertainties such as transfers and future construction.
