DeKalb saw 4 percent drop in property values

New property appraisals reveal the full force of the real estate market collapse on governments in DeKalb County, and the only real surprise is that some communities actually saw an increase in their tax base.

The overall value of real estate increased in three cities, though the worth of land and buildings in the county overall declined by about 4 percent when compared with last year, according to new figures released by the county tax assessor’s office.

The board of assessors on Thursday certified computations that included the effect of foreclosures. Tax officials in DeKalb, unlike their colleagues in other counties, had initially ignored a new state law that mandates consideration of such forced sales when calculating values for property taxes.

Figures in April showed values rising county-wide, with increases in nearly all 10 of DeKalb’s cities. The new numbers show reversals in half the cities. The worst off was Stone Mountain.

In April, before foreclosures entered the equation, the value of real estate there showed a decline of about 5 percent from the official figures in June 2008. The new valuations indicate that property in Stone Mountain declined about 12 percent, according to an analysis of data obtained from the tax assessor’s office.

City Manager Barry Amos attributes the drop to a condominium where nearly all of the units were foreclosed upon.

It will have ramifications on city spending.

“Our budget is already tight; it’s going to get even tighter,” Amos said. He expects to take at least a $100,000 hit in his budget this year because of the real estate collapse.

The city will get by with reserve funds, drastic reductions in capital projects and a lucky turn of events in the global economy: the free fall of gasoline prices. Like many governments, Stone Mountain budgeted for $4-a-gallon gas and will spend half as much as expected on fuel.

Avondale Estates, Chamblee and Decatur were the only cities in DeKalb to see an increase in property values — all because of new construction. Without the added value of new buildings to compensate for the declining market, they too would have seen a drop in their tax base.

“We’ve had a lot of people adding additions to their houses,” said Avondale Estates City Manager Clai Brown. Thursday night, city officials approved another back room addition, he said, adding that people have also built a half dozen new houses in the city in the past year.

Officials from DeKalb County government and the county school system could not be reached Friday to explain the ramifications for their budgets. The real estate tax base for county-wide services fell 3.6 percent while the base for services in unincorporated DeKalb dropped 4.4 percent. The county school system’s base declined 4 percent.

The numbers could shift again next month. Wednesday, the county tax assessor’s office will mail valuation notices, said Hank Ruffin, the interim assessor. Property owners will have until June 19 to mail any appeals.