The value of Naperville’s real estate didn’t take as serious a bruising last year as predicted, and that means Naperville’s property owners won’t have to come up with quite as much to pay the city’s portion of their tax bills this year.
City Manager Doug Krieger said the equalized assessed valuation total was expected to show a 3 percent decline. When the EAV figures came recently, they brought a pleasant surprise.
“It shows a reduction of 2.41 percent, for a current assessed value $5,926,599,646,” Krieger said.
The figure includes $1,942,994,725 for the Will County portion of the city and $3,983,604,921 for the area that lies in DuPage County. The market value of all of the real estate in the city is roughly three times its EAV.
The mildly encouraging numbers will translate to a lower tax rate levied by the city on the bills to be mailed to property owners later this year. Krieger said instead of the projected levy of 78.72 cents per $100 of EAV, the rate will now be just 78.28 cents. For the owner of a house worth $300,000, the downsized levy will reduce the tax bill that goes to the city by about $4.40. Residents may not find the savings noticeable, however, as the levies for the Park District and school districts have gone up.
Breaking down the decline in EAV, Krieger noted that the loss in value of existing property was actually 2.94 percent, but the reduction was offset by the new construction, which showed growth of 0.45 percent. Building activity in Naperville Township brought $17.2 million in new EAV last year, Krieger said. In Lisle Township, he said, construction added $9.9 million to the EAV, but both saw their overall EAV decline. Naperville Township Assessor Warren Dixon III said the two townships combined saw their assessments decline by $151,621,908.
The reduction in the city’s EAV continued a series of years that have brought reduced home values in Naperville and virtually every other community in the U.S.
“We’ve seen about an 18 percent drop from the peak in 2007,” Krieger said.
Officials see reason for optimism in the coming year, however, based on the three-year median for assessments.
“Because they calculate EAV taking an average of the last few years, we may see another slight dip for next year,” Krieger said. “But it appears that in their average they have some positive numbers.”
There were a couple of recent years, he said, when the city’s EAV saw 5 percent declines.