Ottawa council eyes tax rate decrease, but bills still likely to rise because of higher assessed values

The Ottawa City Council is projecting to decrease the tax rate property owners pay to the city’s portion of the bill, but because of spiking property values, it’s likely homeowners will pay more on their bills.

The tax rate for the previous fiscal year was $2.41 per $100 of equalized assessed value, but the city is expecting that figure to fall by about 8 cents, Treasurer Don Harris said.

The Ottawa City Council on Tuesday made public its request for an 8.3% increase in the property tax levy for the fiscal year from May 1, 2023, through April 30, 2024. This is the amount of money the city requests in taxes.

Driven by an increase in the overall property values, Harris said the total levy request will be $8,987,603, up from the previous extension of $8,292,368, an increase of almost $695,000.

Because the extension request is 5% or more than the extension request from the previous year, a truth-in-taxation public hearing is required.

That hearing will be conducted at 7 p.m. Tuesday, Dec. 19, as part of the regular City Council meeting.

“As a result of the EAV increases, even though we are requesting the additional tax dollars, we are expecting the levy rate to decline, probably as much as 8 cents per $100 of EAV,” Harris said. “It’s a little uncomfortable presenting it in this way because the numbers are very likely to change as people protest their tax values, etc., so there’s no way we can project exactly what they’re going to be, but that’s what we’re projecting right now – a drop from $2.41 to $2.33.

“It’s a combination of good news and bad news, I guess. If your property values went up a lot, that will have an impact on your taxes, but then presumably your house will be worth more.”

Levy documents will be available for public inspection at the city clerk’s office during regular business hours.

In other action, the council:

• Authorized a professional services agreement with Ginkgo Planning and Design for design work on the waterfront property
• Authorized a lease agreement with Carson Building Ottawa LLC for its use for an art fair and market this weekend as part of the Chris Kringle Market