from sddt.com
There are five cities in San Diego County that experienced an increase in property tax revenues in the fiscal year ending in June 2009 despite the county’s assessed value being down 2.3 percent overall.
Del Mar, Coronado, Solana Beach, Poway and Encinitas are the only five cities in the county that have experienced growth, according to County Assessor David Butler. “They’re the ones you’d expect — coastal cities and other well-off areas,” he said.
Del Mar and Coronado had the most growth at 5.75 percent and 5.11 percent, respectively. Solana Beach, Poway and Encinitas all grew by less than 2 percent each.
Unlike much of the county, the five cities have had relatively stable home values and few foreclosures.
Additionally, their city governments have not had the same sort of financial issues seen in other cities within the county.
As the city of San Diego faces a deficit of $179 million, some of these cities have been able to produce a surplus, even if it is small.
In Poway, the 2008-09 budget ended with a $320,000 surplus, which Poway City Manager Rod Gould said was due to making cuts with “a scalpel rather than a meat cleaver.”
He said citizens would not likely notice most of the cost-saving strategies the city employed, though they may see slightly lower park maintenance or have to wait a little longer at the permit counter.
“The reason we’re doing a little better than most (other cities in the county) is because we saw this coming three years ago,” he said.
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Our friend Kingside contributes this data received while attending a recent Butler speech:
# of NODs/# of NOTSs/Prop Tax Reviews/Total County Assessed Values/% chg/Total Supplemental Taxes
| Year | NODs | TDeeds | Tax Reviews | Asd Value* | Inc/Dcr | Sppl Tax |
| 1992 | 12,059 | 3,827 | unk | 140 B | 4.3% | |
| 1993 | 12,521 | 5,110 | unk | 142.7 | 1.9% | |
| 1994 | 10,754 | 5,338 | 40,300 | 144.1 | 1.0% | |
| 1995 | 11,251 | 5,267 | 95,900 | 145.3 | 0.8% | |
| 1996 | 12,037 | 5,994 | 148,800 | 146.1 | 0.6% | |
| 1997 | 10,085 | 5,136 | 195,300 | 150.3 | 2.9% | |
| **** | **** | **** | **** | **** | **** | **** |
| 2005 | 5,080 | 559 | <100 | 319.4 | 13.3% | |
| 2006 | 10,294 | 2,065 | <100 | 319.4 | 13.3% | |
| 2007 | 22,194 | 8,417 | 11,500 | 391.4 | 9.36% | |
| 2008 | 34,069 | 19,577 | 88,000 | 409.4 | 4.59% | |
| 1-8/09 | 28,149 | 10,294 | 216,000 | 399.9 | -2.3% |
* in billions
The changes in assessed values (shown in supplemental taxes) must be particularly volatile these days. Properties sold at peak are having their assessed values reduced 20% to 50%, while at the same time the sales of long-time-owned properties are causing increases in similar amounts.
I read an article in the North County times in 07 where it stated the expected loss in property tax revenue was not going to matter and that there was really NO concern. I thought WTF??!! I’m going to search for that article and post a link. Personally, I’d like all the subsidize to stop so the knife can cut deep an hard. But that is not going to happen.
This was discussed in length with Rob Dawg before. This is a catch-up from those areas who have had strong inflation for 10+ years. Even though the overall values are going down, Prop 13 builds in a more stable base due to the maximum increase each year.
Gotta love California, allows rich people to freeload off of poor people.
Chuck Ponzi
This makes sense. As home prices go down people that couldn’t afford the “nice” areas are now looking in the better parts of town.
Yes, but one still has to qualify for the loan. That said, with the ‘new’ FHA one potentially can buy a 1,857 sq ft home in my hood (92024) for $700K and only put down only $12K (after closing) when it all done. Those who saved, kudos to them even though it creates a backlash to those 20 per centers. With only $12K down, it is easy to run when the tough gets going.
1655 Splitrail Dr, Encinitas CA 92024
3 beds, 1.5 baths, 1,857 sq ft
Sale History
08/11/2009: $700,000
04/26/1999: $301,000
This also reflects the dynamic of everything happening on the low end. The big tax hit will come when the high end lets loose.
As I have posted in the past–This is one of the good things about Prop 13–Properties with tax bases lower than actual values, an affect of Prop 13, are still increasing in taxable value during this downturn. This helps to maintain a steadier revenue stream for governments, especially as values decline–could you imagine hearing them squeal if the tax base in 2006 was $600 billion and now it is only $400 billion. the question I have is how can state and local governments be hurting for funds if we were functioning in 1997 with a tax base of $150 billion and are now at $400 billion–something smells!!! Definitely a spending problem rather than a revenue problem.
I don’t have my notes with me, but one of the things I recall Butler saying a couple of days ago was that the normal 2% inflation bump that occurs under prop 13 for properties with tax values lower than actual value will likely not be happening next year and that for the first time in history, these taxable values may even decrease about 1% since the 2% inflation bump that normally occurs is based on the CPI for certain California regions from October of 08 to 09. Since gas prices are actually lower for this period, The CPI is down, and the assessor, assuming the CPI numbers are certified by the State Board of Equalization, will be lowering values for all San Diego properties next year. According to Butler, this has not occured before, and they are not sure their systems can handle it. So there may in fact be a revenue problem next year.
It seems that the county assessor is really backlogged. We purchased a home back in Feb. The purchase price was ~25% below assessed value. We have yet to receive a credit for the amount overpaid in escrow (supplemental tax bill). The frustrating thing is that we just got our 2010 tax bill and will have to pay based on the previously assessed amount for the two 2010 payments. I spoke with the tax collector’s office and they said it normally takes 6-9 months after escrow to get the supplemental bill and re-assessed basis. Why do I think that they are gonna keep collecting money from me at the prior assessment for the forseeable future?
Interesting news on the potential lowering of values. That said, there is nothing new legislation can’t fix.
Del Mar is raking in the dough yet still feels the need to put up red light cameras and parking machines to collect fees for parking on the dirt above Torrey Pines State Beach. Nice.