Stillwater City Administrator Larry Hansen said the reduction is due to lower residential property values in the city, with most values dropping by 9.7 percent.
The property value drop means a homeowner who purchased their home at the median value of $213,400 has a home now valued at $192,700. Last year that homeowner would have paid $1,068 in city property tax. This year, they will pay $1,054, a savings of $14.
Those who paid more for their homes will have to pay more. Homes sold at $443,000 dropped in value to about $400,000 and according to Hansen, they will pay about $12 more than last year’s taxes.
“This is good news for homeowners but not for industrial property or apartments,” he said.
The city’s total property tax bill in 2013 is about $11,515,000, an increase over the 2012 figure of $11,333,636.
“The operating levy continues to steadily increase and a lot of that reason is that because local government aid has decreased and has become unreliable.” Hansen said.
Property tax money will dispersed in the following percentages: 37 percent to public safety, 27 percent in funding for library and recreation centers, 25 percent to general government funding and 11 percent to public works.