The 2006 numbers are in for the assessed property value for the City of Platte City. In a report that was presented to the board of aldermen by City Administrator Keith Moody at Tuesday’s meeting, Moody reported that the city will see a 3.86% property value increase over 2005.
Figures gained from Platte County show that Platte City’s total real estate assessment value for fiscal year 2006 is $49,546,581. Of that, $1,570,700 is due to new construction. The 3.86% increase is one of the smallest real estate assessment increases the city has experienced in the past decade.
“This is the smallest increase in this value from one year to the next since 1996,” said Moody.
Moody points to the change from 2004 to 2005 was a 4.13% increase and prior to that between 1996 and 2004, the city has seen an average of nearly a 10% increase in assessed value per year.
“I’m not saying that the 3.86% increase is bad because it’s exceeding the national inflation rate,” said Moody. “At least we’re growing at a pace that exceeds the inflation. It’s just that in the past 10 years, the city has enjoyed a higher average growth rate that has been around 10 percent.”
Over the past 24 months, Moody said the there have been no subdivision plats filed with the city.
“We saw a 4.13% increase from 2004 and over the last 10 years we’ve averaged around a 10 percent increase per year,” said Moody. “So we’ve had some years where the assessed value grew by more than 10 percent. It’s just been within the last 24 months that we’ve seen a decline in the growth of our assessed value.”
Within the last 10 years, the city has seen various pieces of land platted such as: the Oak Creek 2 subdivision, residential and commercial plats in the Platte Valley Plaza area, the Williamsburg subdivision, and plats within Tudor Flats.
Moody acknowledged some possible scenarios for the city’s real estate assessed valuation to once again reach it’s average.
“Additional lots by the way of plats being filed would allow for more opportunity for new building permits to be issued, and establishing the TIF commission as a way to encourage additional development through tax increment financing,” said Moody.
Moody also stated that the addition of ground through annexation would provide additional opportunities for plats to be filed with the City of Platte City.
“Expansion of the city across I-29 or annexation in any direction could provide that same opportunity. However, it doesn’t necessarily mean that it will, though,” said Moody. “Cost of development, as well as the market, is still going to influence the timing of development in particular areas.”
Platte City has seen a population increase of approximately 1,000 residents over the last four years. As of November of 2004, Platte City’s population was 5,092 compared to 4,086 residents in November of 2000. Over five years, Platte City has averaged a population growth of 6.4%, with a 2.6% growth between 2003-2004.
Moody said the percentage increase of assessed valuation affects not only the city, but businesses and residents.
“Growth and assessed value relates to growth in property tax revenues. So the services provided by tax revenues help offset inflationary increases for operating expenditures,” stated Moody.
“Residents, as well as businesses, receive services from the city. If we have increases in operating costs we have to cover those by either having to increase revenues, by implementing higher rates, by having more people contributing to our revenues (volume in customers), or by cutting services.”
While the rate of increase in the assessed valuation may be slowing, Moody said it’s not as bad as some may think.
“I’m not trying to paint a bleak picture. Some communities are lucky to see a two percent increase in assessed values. We’ve been very lucky to see the average of 10 percent over the past 10 years and we’ve been able to keep our levy lower than it was 10 years ago,” said Moody.
“Platte City’s tax levy is still lower than it was in 1996 and we’re still growing at a rate greater than inflation and the property tax revenues are a part of the revenue stream we use to support these services.”