Cities Begin To See The Financial Hit Of Falling Real Estate Values

Some property tax bills may be slashed as home values have dropped off a cliff. County assessors throughout the state are re-valuing the prices of homes and cities and counties are bracing for the commensurate decline in revenues. More than 40,000 homes suspected of losing value since their purchase are under review by the Kern County Assessor, a process that will reduce property tax bills for many homeowners, but also shrink a critical source of revenue to county services and schools.

Just a bit to the south in Ventura County The city of Simi Valley takes an $820,000 hit. Still further south, the city of Lemon Grove sees revenue drop from falling sales tax receipts. Lemon Grove faces a deficit for the first time in four years. Both southern California cities have reputations for being well run financially and are expected to weather the financial storm just fine.