2019.01.23 CC Packet - Goal Setting Session

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COUNTY TAX RATE REDUCED FOUR OF THE LAST FIVE YEARS The 2019 levy results in nearly a 1.5% change (decrease) in the county property tax rate. The re- duction in tax rate is a function of a rising tax base, significant new construction value, and an increase in the levy needed to pay for county services, much of which are mandated. The 2019 reduction in tax rate will be the fourth time over the last five years the county has seen a reduction in the tax rate. In 2018, Washington County had the second lowest tax rate of all seven metropolitan counties, and its 2019 tax rate is anticipated to remain the second lowest. STRONG FINANCIAL HISTORY Washington County has a history of strong financial management and a low tax burden. The adopted budget includes a 1.5% decrease in the county tax rate and an annual net increase in county tax of jus $35 on a median valued home ($273,200) in th county for 2019. This reflects a median value in- crease of 5.7% from 2018 to 2019. The median val ued home in 2010 ($240,000) paid $674 per year i county property tax; based on the 2019 budget, th median valued home would pay $783, a $109 in- crease over the last ten years. To further illustrate the county's low tax burden, the chart to the left shows a comparison of the total county tax paid on the median valued home over ten years among the seven metropolitan counties. INCREASED PRESSURE ON THE COUNTY PROPERTY TAX The estimated costs to provide mandated services in 2019 is approximately $200.1 million. Increased ser- vice demands, program changes, infrastructure up- dates, and typical increases in personnel costs for employees that provide these services all add to the increasing pressure of providing mandated services. Approximately 74% of the county's property tax is allocated towards providing these state and federally mandated services, up 2% since 2017. Prepared by the Washington County Office of Administration, December 2018