SANFORD — City assessor George Greene is poised to lower the mil rate by a full $2, to $20.74 per $1,000 worth of property, City Manager Steve Buck said Tuesday.

And while the city’s valuation has increased, on average, owners of single family dwellings who have taken advantage of the Homestead Exemption may see a property tax decrease, both Greene and Buck say. 

That average decrease will be most apparent with owners of single family homes in the $100,000 to $150,000 range, said Greene on Wednesday morning. 

Buck told the City Council on Tuesday that those who applied for the Homestead Exemption whose home is valued at $100,000 may see a property tax decrease of about $150. The amount of decrease is less as the value of a property increases. According to charts prepared by the city, the average tax decrease on a home valued at $200,000 to $225,000 with a Homestead Exemption is pegged at around $100. Buck said his figures are an average, because any decrease would depend on the type of home, the neighborhood and other factors.

Buck said last year there was, in rough numbers, $40 million of new growth in the city but all was lost to depreciation.

This year, the picture is brighter.

“This is a first year of $120 million to the net positive, as opposed to having new construction that we see taking place in the community, but seeing it eroded and the market taking money away from us,” Buck said, in part.

He said he sees the combination of the increased Homestead Exemption from $15,000 to $20,000, increased school subsidy, the $120 million valuation increase and the $2 mil rate reduction as “very positive.”

Both the municipal and city budgets had no increase for the fiscal year that began July 1.

Mayor Tom Cote praised the efforts of the Sanford Budget Committee, and the City Council for passing the budgets and to city staff for their work. 

“Obviously we have a lot to do from an infrastructure point of view, but passing along $100 to $150 in savings to the folks’ tax bills is a great step in the right direction,” Cote said.

The city this year hired a firm to perform a revaluation of all commercial and industrial properties — the first since 1980. Buck told the City Council that about one-third of commercial and industrial property owners are likely to see a tax increase, one-third a decrease and about one-third will stay the same.

Buck said the commercial section didn’t “take it on the chin,” because of the robust housing market.

— Senior Staff Writer Tammy Wells can be contacted at 324-4444 (local call in Sanford) or 282-1535, ext. 327 or twells@journaltribune.com.