Many Reasons for Antioch’s Property Value Decline
Friday, September 16th, 2011In July, the Antioch City Council sent a letter to county Assessor Gus Kramer audaciously asking him to appear in person to explain why the latest property valuations show the city’s projected property tax revenues to be $850,000 less than expected. (Councilman Agopian queried why Brentwood values dropped 4.5% while Antioch’s dropped 7%.)
If I were Mr. Kramer, I would politely reply to their correspondence, but I would not appear in person. Here are some of the explanations I’d provide.
Proposition 8 mandated that homes’ assessed value must be temporarily reduced to their current market value during downturns. Certain areas of the state were harder hit than others. Compared with coastal areas with job centers, unemployment in our county remains high and all foreclosure activity for August was up by 9% from July.
As for the Brentwood vs. Antioch property values:
Fact is, a property’s value to a prospective buyer depends on 1) the condition of the property 2) the appearance of the neighborhood 3) proximity to retail, commercial and mass transit and the local school districts’ progress on the statewide Academic Performance Index (Antioch’s 2011 score was 731 vs. Brentwood Union’s 843).
Home values in Brentwood are higher than Antioch’s because the word is out – the Antioch Police force is understaffed and the city no longer has a code enforcement department due to the city’s anticipated decline in property tax revenues and sales tax revenues for the next fiscal year.
Because 70% of the city’s General Fund revenues go primarily toward personnel costs, the city implemented furloughs and layoffs, and negotiated concessions with employee bargaining groups (Antioch Police Officer Association situation still not resolved satisfactorily), all of which diminished services to the public. That’s just not appealing to folks looking to buy a home.
It may be hard for council to admit that Brentwood’s property values have held up better than Antioch, but facts tell otherwise. Sure, our city has assets that Brentwood doesn’t have, e.g., an underdeveloped waterfront with great potential and an e-BART station. However, our shopping centers, like the Safeway center on Deer Valley Road have numerous vacant stores, and I know for a fact that many of the business were purloined by the City of Brentwood.
As for those of us who have been able to hold onto our homes in this stagnant economy, we’ve appreciated the temporary decline in our property tax bills. We’re having to pay more for food, etc. despite government telling us the Department of Labor’s Consumer Price Index (CPI), which they revised, has not risen since the last cost of living adjustment was determined in 2008! Who are they kidding?