By Amy Choate-NielsenDeseret News
Published: Sunday, June 22, 2008 12:10 a.m. MDT
RIVERTON — Hard times have fallen on Riverton.Like many other cities feeling the crunch of a faltering economy and skyrocketing fuel prices, Riverton is considering increasing property taxes by more than 200 percent to fill a gap in the city’s revenue caused by evaporating new construction.
Mayor Bill Applegarth trimmed about $700,000 from the 2007-08 budget, and five city employees — including the public works director — have been laid off, but still, the city needs an additional $1 million in revenue, Applegarth says. The city currently receives about $460,000 in property-tax revenue, which is roughly 2 percent of the total tax bill property owners in Riverton pay.
“Our problem isn’t expenditures, it’s revenue stream,” Applegarth said. “We’ve had, in the past, a high building rate of residents. The last fiscal year we were right around 1,000 residential building permits for the year. This year we’ll be right around 100 building permits. You can see that revenue stream has dropped a great deal.”
The city’s projections for sales-tax revenue is $700,000 short, and the city is running on a loss of about $1.5 million in new construction fees from its 2006-07 budget. All but $800,000 of the city’s rainy day fund has been tapped to supplement the 2007-08 budget, and Applegarth says he doesn’t want to deplete those funds any further.
The city commissioned a survey of 454 Riverton residents in April to gauge how receptive residents would be to a potential tax increase of about $8 a month — or $96 a year, for an average home valued at about $330,000 — on the city portion of property owners’ property-tax bill. About 59 percent of residents polled in the survey said they would be willing to pay the increase to keep the same level of city services, including 6 percent who said they would pay the increase if no other sources of revenue could be found.Applegarth is quick to point out that Riverton residents pay some of the lowest property taxes in the state — even if the increase is approved the city will still be lower than most of its neighbors — and he is emphatic that he hates suggesting raising taxes, but the mayor is comforted by the statistics of the survey.
“If I had not had the support of the people to increase property taxes I never would have taken that budget to the council,” Applegarth said. “We’re dealing with the people’s money and people need to make decisions on how they feel about services. … If (the survey) had come back that over 50 percent of us wanted to cut services, that’s what my budget would have reflected.”
Some residents are skeptical that a majority of residents would support such a dramatic tax increase — and that the city really needs the revenue. Resident Bill Cox says he thinks the survey of 454 residents was misleading and manipulative. His wife was one of the 454 polled, but he does not support a 230 percent increase.
“With the economy being so bad, I don’t think it’s the best idea,” Cox said. “I think operations need to pull back. If they can’t cover costs for essential city services, then they should go to the residents. But a 300 percent increase at once? That’s a lot.”The city will have one more public hearing on Aug. 12 before the new tax rate is approved by the city. In the meantime, each property owner should receive a property-tax notice in early August detailing how much the increase would cost them.
Former City Councilwoman Lisa Mariano says she can see how the increase will hurt, but she understands why the city would need to raise the tax.
“In terms of percentage, (the tax increase) looks huge, but in terms of money, that’s the least of my worries,” Mariano said. “I know no one wants to pay more than they have to right now, everything is tight, but everything is tight all the way around, and it’s tight on the council, too.”
Monday, June 30, 2008
Monday, June 23, 2008
Sunday, June 22, 2008
Short Sale/Foreclosures affect all Homeowners
A conversation that I had with a seller a few days ago led me to believe that a lot of people out there don't realize that short sales and foreclosures affect them as well. This homeowner trying to sell their home said that "We're not selling short sale or foreclosure so I don't have to price our home that way." What this person isn't aware of is, that whether we all like it or not, this does affect everyone's home values, including those not looking to sell their home. This affects those that are are trying to refinance or get a home equity loan.
It's important when selling one's home that it is priced "in the market" not "out of the market". Meaning that if it is priced too high (out of the market) it will not sell. Even if one is looking at the prices of their competitors. It's most important to look at the 'sold comparables'. That is what an appraiser is going to look at to put a value on a home.
Realtors do have access to this information to help put a value on a home. We do look at the sold, active listing comparables as well as under contract. We put all of this information together to help put a value on a home.
If anyone would like a free Comparative Market Analysis of their home please just call or email me. I will give you this information to help you know where the value of your home stands.
Thanks,
Becky
It's important when selling one's home that it is priced "in the market" not "out of the market". Meaning that if it is priced too high (out of the market) it will not sell. Even if one is looking at the prices of their competitors. It's most important to look at the 'sold comparables'. That is what an appraiser is going to look at to put a value on a home.
Realtors do have access to this information to help put a value on a home. We do look at the sold, active listing comparables as well as under contract. We put all of this information together to help put a value on a home.
If anyone would like a free Comparative Market Analysis of their home please just call or email me. I will give you this information to help you know where the value of your home stands.
Thanks,
Becky
Friday, June 20, 2008
Economic Spin: Why the Media Are Wrong About the Economy
This is just a portion of the full article on this subject.
Salt Lake REALTOR® June 2008
By Dave Anderton
The headlines are unavoidable. “Meltdown For Housing: Why The Worst Is Yet To Come,” screamed the cover story of a recent national magazine with a portrait of a red house melting into oblivion. “The Great American Slowdown” shouted the headline of another magazine. “Buyer and Seller Beware,” warned yet another. As the national media focuses on what is wrong with America, Utah economist Jeff Thredgold isn’t losing any sleep. In fact, Thredgold, who runs his own consulting firm and serves as an economic advisor to Zions Bank, believes the divide between the media’s take on the U.S. economy and the actual fundamentals has never been greater. America’s economic opportunities, Thredgold maintains, abound as much now as ever before. “The national media has led millions of Americans to believe that the economy is merely limping along, creating few quality jobs, and on the brink of disaster,” Thredgold writes in his latest book, “EconAmerica: Why the American Economy is Alive and Well. “Such negativity dominates the economic writing found in the nation’s bookstores. Books focusing on the demise of America; the coming debt crisis; the coming oil crisis; and the imminent dominance of China, Europe, or India are far too prevalent.”
Excerpts from the article:
Utah ranked No. 2 in the nation in house-price appreciation in the first quarter compared to year ago.
Our economy is three times the size of No. 2 Japan. It is four times the size of No. 3 and No. 4 Germany and China.
economists are “dialing back dire forecasts.”
The media drives negative news when it’s negative and drives positive news when it’s positive.
In Utah, every sector is doing well Manufacturing, surprisingly, is doing well.
After five consecutive quarters of posting the highest rates of house-price appreciation in the nation, Utah fell to the No. 2 spot in this year’s first quarter, according to a May report by the U.S. Office of Federal Housing Enterprise Oversight. For the three months ended March 30, Utah home prices appreciated 5.58 percent compared to the first quarter of 2007. When compared to the fourth quarter of 2007, Utah home prices declined slightly at 0.20 percent.
Wyoming saw the strongest house-price appreciation of all states at 6.34 percent. California ranked dead last, with home prices there dropping 10.58 percent. Besides California, 14 other states (including Nevada, Florida, Arizona and Michigan) saw home prices fall. Three Utah cities made the top 20 list of 292 U.S. cities showing the highest rates of appreciation. The Provo-Orem area was No. 6 at 6.76 percent. Ogden-Clearfield was No. 9 at 6.64 percent. Logan ranked No. 15 at 6 percent. Salt Lake City was No. 22 at 5.39 percent. St. George was No. 235, with home prices there dropping 3.65 percent.
Nationally, home prices were down 0.03 percent in the first quarter compared to a year ago and down 0.23 percent compared to the fourth quarter of 2007. James B. Lockhart, OFHEO director, said the national price declines bring positive and negative news. “For
homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets,” Lockhart said. “To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates.”
Top 10 U.S. Cities With Highest Rates of House Price Appreciation
Houma-Bayou Cane-Thibodaux, LA — 11.22%
Grand Junction, CO — 9.08%
Wenatchee, WA — 8.02%
Austin-Round Rock, TX — 7.74%
Billings, MT — 7.09%
Provo-Orem, UT — 6.76%
Anderson, SC — 6.73%
Mobile, AL — 6.64%
Ogden-Clearfield, UT — 6.64%
Hickory-Lenoir-Morganton, NC — 6.41%
Top 10 Economic Myths Perpetuated by the National Media
1. U.S. economic growth continues to be substandard.
2. We are losing our ability to “make things” in the
economy. We are rapidly approaching a time when
all we will do is serve each other hamburgers and
trade information with each other.
3. We have endured a “jobless recovery” in recent years.
4. We are losing high-paying jobs and replacing them
with low-paying jobs at Wal-Mart and burger joints.
5. We will be forever dependent on oil-rich nations.
6. Reducing the capital gains tax rate reduces tax revenue…
and vice versa.
7. We run a huge trade imbalance with the rest of the
world because we are not competitive.
8. Social Security will not be there for our children
and grandchildren.
9. As Americans, we have an insatiable appetite for
consumption… We save little for the future.
10. The stock market is overvalued.
Source: Jeff Thredgold
Dave Anderton is the public relations director for the Salt Lake Board of
REALTORS®.
Salt Lake REALTOR® June 2008
By Dave Anderton
The headlines are unavoidable. “Meltdown For Housing: Why The Worst Is Yet To Come,” screamed the cover story of a recent national magazine with a portrait of a red house melting into oblivion. “The Great American Slowdown” shouted the headline of another magazine. “Buyer and Seller Beware,” warned yet another. As the national media focuses on what is wrong with America, Utah economist Jeff Thredgold isn’t losing any sleep. In fact, Thredgold, who runs his own consulting firm and serves as an economic advisor to Zions Bank, believes the divide between the media’s take on the U.S. economy and the actual fundamentals has never been greater. America’s economic opportunities, Thredgold maintains, abound as much now as ever before. “The national media has led millions of Americans to believe that the economy is merely limping along, creating few quality jobs, and on the brink of disaster,” Thredgold writes in his latest book, “EconAmerica: Why the American Economy is Alive and Well. “Such negativity dominates the economic writing found in the nation’s bookstores. Books focusing on the demise of America; the coming debt crisis; the coming oil crisis; and the imminent dominance of China, Europe, or India are far too prevalent.”
Excerpts from the article:
Utah ranked No. 2 in the nation in house-price appreciation in the first quarter compared to year ago.
Our economy is three times the size of No. 2 Japan. It is four times the size of No. 3 and No. 4 Germany and China.
economists are “dialing back dire forecasts.”
The media drives negative news when it’s negative and drives positive news when it’s positive.
In Utah, every sector is doing well Manufacturing, surprisingly, is doing well.
After five consecutive quarters of posting the highest rates of house-price appreciation in the nation, Utah fell to the No. 2 spot in this year’s first quarter, according to a May report by the U.S. Office of Federal Housing Enterprise Oversight. For the three months ended March 30, Utah home prices appreciated 5.58 percent compared to the first quarter of 2007. When compared to the fourth quarter of 2007, Utah home prices declined slightly at 0.20 percent.
Wyoming saw the strongest house-price appreciation of all states at 6.34 percent. California ranked dead last, with home prices there dropping 10.58 percent. Besides California, 14 other states (including Nevada, Florida, Arizona and Michigan) saw home prices fall. Three Utah cities made the top 20 list of 292 U.S. cities showing the highest rates of appreciation. The Provo-Orem area was No. 6 at 6.76 percent. Ogden-Clearfield was No. 9 at 6.64 percent. Logan ranked No. 15 at 6 percent. Salt Lake City was No. 22 at 5.39 percent. St. George was No. 235, with home prices there dropping 3.65 percent.
Nationally, home prices were down 0.03 percent in the first quarter compared to a year ago and down 0.23 percent compared to the fourth quarter of 2007. James B. Lockhart, OFHEO director, said the national price declines bring positive and negative news. “For
homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets,” Lockhart said. “To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates.”
Top 10 U.S. Cities With Highest Rates of House Price Appreciation
Houma-Bayou Cane-Thibodaux, LA — 11.22%
Grand Junction, CO — 9.08%
Wenatchee, WA — 8.02%
Austin-Round Rock, TX — 7.74%
Billings, MT — 7.09%
Provo-Orem, UT — 6.76%
Anderson, SC — 6.73%
Mobile, AL — 6.64%
Ogden-Clearfield, UT — 6.64%
Hickory-Lenoir-Morganton, NC — 6.41%
Top 10 Economic Myths Perpetuated by the National Media
1. U.S. economic growth continues to be substandard.
2. We are losing our ability to “make things” in the
economy. We are rapidly approaching a time when
all we will do is serve each other hamburgers and
trade information with each other.
3. We have endured a “jobless recovery” in recent years.
4. We are losing high-paying jobs and replacing them
with low-paying jobs at Wal-Mart and burger joints.
5. We will be forever dependent on oil-rich nations.
6. Reducing the capital gains tax rate reduces tax revenue…
and vice versa.
7. We run a huge trade imbalance with the rest of the
world because we are not competitive.
8. Social Security will not be there for our children
and grandchildren.
9. As Americans, we have an insatiable appetite for
consumption… We save little for the future.
10. The stock market is overvalued.
Source: Jeff Thredgold
Dave Anderton is the public relations director for the Salt Lake Board of
REALTORS®.
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