The Maple Valley City Council voted to approve the city’s 2012 property tax levy at its Nov. 28 meeting.

The new property tax levy rate will be $1.40 per $1,000 of assessed value. 2011’s rate was $1.29.

According to the city’s Finance Director Tony McCarthy, the rate was increased due to declining property value.

“We’ve tracked average prices in Maple Valley for 10 years,” he said. “The average home price in 2007 was $364,000. The average price now is $278,000. The house prices have dropped by about $80,000.”

McCarthy added that the city’s rate is also based on other levy rates, such as the school district, the fire district and the library.

City Manager David Johnston also explained that most residents will pay the same amount as they did the year prior.

“People have to understand that the levy is the result of an algebraic equation,” he said. “If the output is frozen you have to take a look at the other two variables, rate and assessed valuation. We’re seeing it (assessed valuation) go down a little bit, so the tax rate goes up. But the person doesn’t see an increase. Most people won’t see an increase.”

Johnston and McCarthy both stated that the levy rate will go down once assessed property value begins to rise again and more development occurs next year, such as the Fred Meyer.

“That helps with the tax rate,” Johnston said. “If you have more commercial in your base, then homeowners will pay less, because you have a new large group contributing to the tax base. And that’s why the cities look to make maximum use of property. That usually benefits residential homeowners.”

The maximum rate the city can set is $1.60.