The Ottawa City Council put its annual tax levy on file Tuesday night, requesting 7.2% more in property tax dollars but expecting the city’s tax rate to drop again.
The levy triggers a required truth-in-taxation hearing because it exceeds 105% of what Ottawa collected last year. The hearing is set for 7 p.m. Tuesday, Dec. 16.
City Treasurer Don Harris said the city’s equalized assessed valuation is expected to rise about 11.5%, driven by higher property values. Because of that increase, the city expects its tax rate to drop by about 8.9 cents per $100 of assessed value, although that final number could shift as assessments are finalized.
“What we’re collecting is going up, but the levy rate is going down,” Harris said.
Essentially, if a homeowner’s assessed value stays the same as last year, the amount they pay the city is expected to decrease.
Ottawa expects to collect about $683,000 more than last year under the proposed levy.
Commissioner Tom Gainere reminded residents that Ottawa’s portion of a property tax bill accounts for only about 17% to 20% of the property tax bill, with the rest coming from schools, township government and other taxing bodies.
The council also approved its routine bond abatements, which keep extra debt payments from showing up on residents’ tax bills. Instead of adding a separate levy, the city uses its regular revenues to cover the cost.
Mayor Rob Hasty said this has been the city’s standard practice to pay down debt without raising taxes.
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