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Barron County sees drop in equalized value(The Leader-Telegram (Eau Claire, Wis.) Via Acquire Media NewsEdge) Aug. 30--Barron County Administrator Duane Hebert said he was surprised by a new state report that shows equalized value in his county fell in 2008. "We've had huge growth the last five to 15 years," Hebert said. "It wasn't sustainable. It's not like all the other counties are growing that much more." The state's Department of Revenue released a report this week on equalized values for the 72 counties this year, and Barron County was the only county to show a decline. "Equalized value is the state trying to estimate values for tax purposes," said Dale Knapp, research director with the Wisconsin Taxpayers Alliance. "It is a value of all taxable property in the state." The values don't include certain forest lands, hospitals, schools, churches and municipal buildings. The values are based on Jan. 1, 2008, figures, Knapp said. Hebert said his office met with some real estate agents who warned that the county might have a low increase in equalized value. "It's not much greater (of a drop) than what we anticipated," Hebert said. County boards statewide are allowed to increase their budgets by 2 percent or the rate of new growth, whichever is greater. Last year, Barron County had a new growth rate of 2.6 percent, Hebert said. "For next year, we're going with just 2 percent (increase)," he said. Knapp said the slowing economy is showing up in the drop of equalized values, and that is true in Barron County. "It was a big drop in residential properties, down by over 2 percent (in Barron County)," Knapp said. "That's what is driving that (drop), with the economy the way it is." However, commercial property in Barron County actually increased 6 percent, Knapp said. Dunn County was second to last on the list for growth in equalized values. "With the housing market as bad as it is right now, you're not seeing as many people relocating, and housing prices are falling," Knapp said about Dunn County's level. Residential property values statewide were up just 3 percent, Knapp said. Chippewa County Administrator Bill Reynolds was disappointed when he learned the county's new construction growth is only 1.98 percent. "I was surprised in the net new construction," Reynolds said. "When you look at it, in respect to the overall economy, it's not a surprise." However, the slow growth will strain the county's budget, Reynolds said. "It means we are working in the confines of 2 percent (increases)," he said. "It is difficult when the wages of your employees exceed that. It's difficult when you are dealing with expenses you have little control over." The Chippewa County budget will start to come together in the next month. The state's report shows that overall equalized value rates in Chippewa County grew by more than 6 percent. "Hopefully it means we're bringing business in and keeping pace with our neighbors," Reynolds said. Knapp said the small increases in equalized values will have a different impact on counties this year. "You will generally see higher tax rates," Knapp said. "You will see that statewide this year. People are sort of used to seeing their property tax rate go down." Knapp said there also are possible political ramifications to higher tax rates. "Some county board members are adverse to raising the tax rates," Knapp said. "There will be political pressure to not raise the levy, so it doesn't raise the tax rate." Eau Claire County had nearly a 4 percent increase in equalized value, County Administrator J. Thomas McCarty said. "It's a positive thing -- we're still growing," McCarty said. "It's a gain." However -- like Chippewa County -- Eau Claire County had new construction at only 1.97 percent. Thus, the county can only increase spending by 2 percent this year under state law, McCarty said. Two-thirds of the counties in the state saw the rate of new construction at less than 2 percent, so they will all face the same constraints when preparing their 2009 budgets this fall, McCarty said. To see more of The Leader-Telegram or to subscribe to the newspaper, go to http://www.leadertelegram.com. Copyright (c) 2008, The Leader-Telegram, Eau Claire, Wis. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |