About Me

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I have served the City of Isanti as Mayor since 2007. We have accomplished great things together and I look forward to building on our success. United, we move forward to a better future. You may contact me at 763-442-8749 or e-mail me at george@georgewimmer.com.

Saturday, October 22, 2011

Taxable Market Values


This graph shows just how bad it has gotten as our overall city tax base has started a rapid decline. We have lost over $137,000,000 or 37% of our tax base from the all time high.

This being said I think the real question needs to be asked is why did the County continue to increase everyone's property values in 2007, 2008 and 2009 when it was clear the real estate market was collapsing then? This gave a false impression of City wealth and made it very difficult every time I said things are very tough and we need to cut cost and keep our long term spending in line.

As you follow the bell curve year to year on each side of the high point matching very closely and can be used as a harbinger of what is yet to come....

This cold reality is being faced by all communities in regions like ours that grew so rapidly....

2 comments:

Lori said...

I'm confused about your statement about how the county decides property value. Isn't there a standard book of values,like there is with used cars? If there is not,there is a possibilty for abuse.

George said...

That is the theory that there is a range to follow but if that actually happened then how could values increase in 2008 and 2009 when the foreclosure and housing bust was at its worse? I will be writing more later but a huge problem this caused was in labor relations where employees wanted more pay and benefits and pointed to escalating property values in 2008 and 2009. Then mediators and arbitrators followed suit.... There are so many layers to this crisis ...