The overall assessed value of residential properties in Buchanan is down approximately 17 percent from the year prior.

City assessor Gordan Schreiber said the decrease reflects assessed values in the city from a period of October 2009 through September 2011.

Although nontraditional sales such as foreclosures aren’t used in the assessment, Schreiber said foreclosures have a dragging down effect on conventional sales.

“When you have two or three foreclosures out there for sale in an area when someone tries to sell their home, their overall value is pulled down by that,” he said.

A 17 percent decrease amounts to an overall reduction of approximately $6 million of evaluation, according to city manager Bill Marx.

That means the city’s general fund stands to receive about $130,000 less in property taxes than last year. Public safety would take the biggest hit because the city’s police and fire departments are paid from the general fund.

“We are still trying to evaluate and calculate what that is going to do with the 2012-13 budget, which we are in the midst of preparing,” Marx said. “We don’t see a lot of increase in any other revenues.”

The general fund would take an even bigger hit if the state eliminates personal property tax. Marx said the city would lose $148,000 if that were to happen.

“There’s not a whole lot more we can do before we start going through our little rainy day fund, which won’t last that long, to sustain city services,” Marx said.

The city is scheduled to approve the 2012-13 budget in April before making an initial budget report to the state at the end of March.