City of Norwich

1

• City of Norwich
• Public Meeting
• January 21, 2009
• Revaluation Process/Appeals

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Introductions

• John Hocking
• Project Manager, Appraisal Resource Co.
• Charles Glinski
• Norwich Tax Assessor
• Rich Nagle
• VP Revaluation, Appraisal Resource Co.

3
Why and When

• Connecticut State statute mandates, that all
  cities and towns perform a revaluation every 5
  years. (section 12-62)
• Norwich performed the last revaluation in 2003.
  That revaluation was based on an inspection of
  recent sales, rather than a full inspection of
  properties as was conducted for the 2008 project.

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Fairness

• The basic reason for Revaluation
• Over time, assessments become out of step with
  market values.
• When assessments are brought back into line with
  the market, the result is a fair distribution of
  the tax burden.

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What Exactly is a Revaluation?

• Estimate new values on Real Estate based on
  specific rules and current market data
• A Careful analysis of recent selling prices is
  conducted to identify and quantify the features
  that have motivated buyers and sellers in the
  Real Estate market.

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What Exactly is a Revaluation?

• The analysis results in the creation of schedules
  which are used to value the properties.
• The schedules are statistically tested to verify
  their ability to predict estimates of current
  fair market value, accurately and uniformly.

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Major components of theRevaluation Process

• Measure Inspect all improved properties
• Inspect recent building permits
• Valuation analysis, 2 years of sales
• Heaviest weight given to the most recent sales
• Field review, all parcels
• Informal hearings, November/December 08

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Norwich Property Count

• Residential 10,668
• Commercial 1326
• Industrial 126
• Exempt 835
• Vacant Land 1177
• Use Assessment 86
• Apartments 331
• Total 14,549

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How are properties priced?

• We analyze
• Land sales
• Sales of land with buildings
• Building costs
• Condominium sales
• Business Income Expense statements

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What about Land values?

• Land values can vary dramatically based on
• Location
• Zoning
• Waterfront, View, Partial View
• Topography, Easements, Wetlands

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• What has been
• happening with sales
• in Norwich?
• Discussed in the industry as the Median Sales
  Price
• (Median The middle number in the sequence, or
  the average of the two middle numbers)

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Summary by Sales Date
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Connecticut RequirementsFor a revaluation
project

• CT Requirements
• Median ASR .90-1.10
• (Assessment to Sale Ratio)
• Norwich Results
• ASR .93

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ASR?

• Assessment to Sale Ratio
• Example
• 100 Maple Street
• 2003 Assessment 140,000
• 2008 Sale 210,000
• 2008 Assessment 195,000
• 2003 ASR 140,000/210,000 67
• 2008 ASR 195,000/210,000 93
• Note All Assessment or Appraised value to sale
  ratios (ASRs) are calculated at 100. New
  assessments are then reduced to 70 of appraised
  value.

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Summary by Style
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Using the sales data to value unsold property

• The Sales analysis results in the creation of
  schedules which are used to value the properties.
• The schedules are statistically tested to verify
  their ability to predict estimates of current
  fair market value, accurately and uniformly.

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Why can similar properties have different values?

• Location
• Desirability of the neighborhood
• External influences
• Traffic, schools, waterfront, view
• Buildings
• Size of the buildings
• Quality of construction
• Condition
• Amenities

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Revaluation results

• The revaluation resulted in an average increase
  for residential properties of approximately 40
• Commercial properties on average increased 30
• Taxpayers should note that the new assessments
  will take effect upon receiving their July 2009
  tax bills.

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New Assessment notices

• At the end of the Revaluation, a notice is sent
  to every property owner advising them of their
  new assessment.
• (New Assessment Notice)
• The Norwich notices were mailed
• November 19th.

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Informal Hearings

• New Assessment notices provided property owners
  with a toll free number they could call to set up
  an informal hearing with Appraisal Resource.
• Property owners met with Appraisal Resource
  hearing officers to review their new assessment,
  and to request a reduction in value if they felt
  they had significant information affecting the
  value of the property.

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Keep in mind

• No adjustments were made at the hearing.
• Hearing officers made notes as to the property
  owners concerns, and provided information about
  the revaluation, and specifics regarding their
  property.
• Then each property that had an informal hearing
  was reviewed on an individual basis to determine
  if there was a change of value warranted.

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Results of informal hearings

• Residential Hearings
• 525 Changes
• 760 No changes
• 1285 Total hearings
• Commercial Hearings
• 102 Changes
• 104 No changes
• 206 Total hearings
• No shows
• 237 Appointments made but did not show up.

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After the Informal Hearings

• Those who attended a hearing will receive a
  notice (by mail), indicating whether their
  assessment has been changed, and, if so, what the
  new value is.
• If a property owner is still not satisfied, they
  have the right to appeal to the Norwich Board of
  Assessment Appeals

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If I am not satisfied with the results?

• If a taxpayer is not satisfied with the results
  of the informal hearing process, or was not able
  to attend an informal hearing
• They may appeal to the Citys Board of
  Assessment Appeals

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How do I appeal to the board?

• Applications for Appeal with the Board of
  Assessment Appeals are available in the City
  Assessors office.
• Applications must be filled out and returned to
  the Assessors office by March 20th, 2009.

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What should I bring/how do I prepare for the
Appeal process?

• The Appeal process is set up to offer a property
  owner an opportunity to show why they believe
  their property has been over assessed.
• The burden of proof is on the property owner to
  submit information, and or evidence, to support
  their claim.

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What should I bring/how do I prepare for the
Appeal process?

• Types of information or evidence
• A recent appraisal
• Examples of recent sales that are similar to your
  property
• Pictures showing significant damage or disrepair
  to the property
• An accurate market analysis by a Real Estate
  professional

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Notes

• Caution Appraisals, a Market Analysis, and sales
  information need to be timely.
• No older than 12 months from the revaluation date
  October 1, 2008
• And sales that are more recent than October 1,
  2008 cannot be considered.

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Will the Revaluation result in a raise in taxes?

• Revaluation does not, in itself, increase taxes.
  It simply provides a basis for the fair
  distribution of the tax burden among all property
  owners.
• The City will establish a new Mill Rate sometime
  in the Spring.
• The Mill Rate is established by dividing the City
  budget by the new Grand List.

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End/Questions?