City property values continue to rise

City has second highest growth

Over the past two years the City of Porterville has led all other cities in Tulare County in property value growth, an important factor when it comes to paying for things like public safety and parks.

Tulare County Assessor Roland Hill released his 2017-18 property values on Monday and the report showed Porterville’s property value rose 5.528 percent, second only to Farmersville of the county’s nine incorporated cities. Famersville showed a gain of 5.633 percent.

Tulare County saw its overall property values increase $143 million, a 4.481 percent increase.

After seeing property values rise by $200 million last year, the city gained another $143 million in property values this year. Over the past two years, the city’s property values are up nearly 13 percent, part of that from several annexations.

Lindsay, which had slow growth for a number of years, saw its property values grow $20 million, a 4.453 percent gain, the best it has seen in at least five years. Lindsay Finance Director Bret Harmon told his city council Tuesday night the growth in property values in that city was more than expected and he will be able to add a few more dollars into that city’s general fund budget for next year.

Hill noted property values continue to grow following the recession and the numbers reflect that. However, the Prop. 13 adjustment was the maximum 2 percent, so overall county property value growth was just 2.481 percent, but he pointed out that is primarily from new construction around the county and an increase in housing prices. “We saw moderate growth of 4.5 percent,” said Hill. “That’s pretty indicative of what we’re seeing out there.”

After a couple of negative years, property values have now risen in each of the past five years.

Property taxes are the main source of revenue for the city. Property taxes make up 25.3 percent ($6.5 million) of the general fund revenue. Second is money from sales and use taxes, which makes up 23 percent

of the general fund revenue. The remaining 52 percent comes from fees, other taxes, fines, utility users tax and charges for services.

The general fund is the part of the city’s budget the city council has some discretion over. It pays for police and fire, parks and the library and city administration. All total, the general fund revenue is projected at $26.6 million in the next fiscal year.

The city had budgeted for very little growth in property taxes — only a $370,000 increase.

Porterville City Manager John Lollis the value increase is more than it had projected in its budget, meaning property tax revenues will be slightly higher than expected.

“It will help with the deficit,” said Lollis of the city’s $26.6 million budget which is short about $1.3 million of being balanced. He said

the increase could mean as much as $100,000 more in revenue than projected.

Lollis said some of the increase can be attributed to some areas which were annexed into the city last year, but some is also because of construction projects such as Tractor Supply Store on West Henderson Avenue.

“Next fiscal year we’ll see Walmart Super Center, Greenpower (Motor Company), and certainly Smart & Final,” he said of pending or already begun construction projects. “I think there will be further development along Henderson, most notable at the corner of Prospect Street and Henderson Avenue.

Hill pointed out the only city in which property values dipped was Dinuba. Visalia and Tulare both saw property values increase by more than 4.25 percent.

Hill noted property owners will see their individual property taxes increase slightly, with the values up 2 percent.

He said there are still about 2,500 parcels up for value adjustments, but that is far less than what his department saw during the recession when many values were lower. Now, his office has just about caught up with bringing the lower values back to what they are today.

Porterville’s total property value for next year is $2.76 billion. Lindsay’s is $437.8 million.