October 14, 20101 INTRODUCTION The purpose of this presentation is to give a brief overview of a...

October 14, 2010 1

INTRODUCTION

The purpose of this presentation is to give a brief overview of a lengthy and complex process. If you have questions or need more information, please contact the Assessing Office (see contact information on slide 15).

October 14, 2010 2

FY11 PUBLIC FORUMBoard of Assessors

FY2011

October 14, 2010 3


MASS APPRAISAL PROCESS

Analyze prior calendar year’s “arm’s length” sales (2009 for FY2011)

Adjust factors in mass appraisal computer model so sale properties reflect market value

Apply updated factors to all properties; goal is full and fair market value as indicated by sales activity

Calculate Tax Rate(s)

Board of Selectmen decides tax policies & sets rates

October 14, 2010 4


STATE REQUIREMENTS

Sales are stratified in several ways: class, neighborhoods, style, building and lot size, age, sale price, and sale date

ASR* median within 10% of 100% of full and fair market value

Within dispersion limits for various classes

*Assessment to Sale Price Ratio

October 14, 2010 5

Assessment/ Classification Report

TOTAL VALUE: $5,041,730,741 (FY11 PROPOSED)

Apartments and

Other Group Quarters

Single Family

Residences, Condos, 2- & 3-

Families

Chapter Land

(61, 61A, 61B)

Vacant Land

Commercial

Personal

Property

Industrial

91% RESIDENTIAL 9% CIP

October 14, 2010 6


CALCULATING TAX RATE DETERMINE TAX LEVY

(amount to be raised)

Prior FY levy limit+ 2-1/2% allowed increase+ new growth+ debt exclusion+ override(s)

Current FY Permitted Levy

October 14, 2010 7


CALCULATING TAX RATE

Levy (voted by town meeting) Total Property Valuation X 1,000 = Tax Rate

FY10 $65,797,569

$5,026,552,229 X 1,000 = $13.09*

FY11 (estimated) $66,525,315

$5,041,730,741 X 1,000 = $13.20

*Tax Rate if maximum levy limit used: $13.27 Tax Rate if at 2.5%: $25.00

October 14, 2010 8


CALCULATING TAX RATE

Levy (voted by town meeting) X 1,000 = Tax Rate Total Property Value

CALCULATING YOUR TAX Bill

Your Total Property Value X Tax Rate = Your Annual Tax 1,000

+ CPA Surcharge

October 14, 2010 9


CALENDAR FISCAL YEAR 2011

Jan. 1 Jun. 30 Jul. 1 Oct. 1 Jan. 1 Feb. 1 Apr. 1 Jun. 30

2010 2010 2011 2011

Assessment New Construction Abatement Date Assessment Date ApplicationCalendar 2009 (deemed to exist Deadline Sales on January 1st)

DateLiability

Fixed

FY11 1st Qtr

PreliminaryBill Issued

FY113rd QtrActual

Bill Issued

October 14, 2010 10


CONCORD TRENDS

In FY2011 the total value of the town stays almost the same as FY10

Residential property owners’ share of total tax burden continues at 91%

State aid % of budget decreases FY10 to FY11 (.02%) (Total non-tax revenues stable)

FY10 to FY11 Total Budget increase: 1.3%

October 14, 2010 11


CONCORD SALES Median home sale price:

2007* $775,000

2008 $720,000

2009 $721,100

Median condo sale price:

2007 $469,000

2008 $370,0002009 $342,000

*calendar year

October 14, 2010 12


CONCORD PROPOSED FY11

# Quali- Median fied Sales ASR* COD**

SFR 122 .95 6.80

Condos 26 .95 3.84

*Assessment to Sales Ratio **Coefficient of Dispersion

October 14, 2010 13


FY2011 ADJUSTMENTS

Median Market Area changed; Land Curve adjusted

Market Area Factors adjusted

Some minor shifts between areas

Site indices reviewed; rarely used

Excess land rate decreased; wetlands rateincreased (most removed)

Building values relatively stable

October 14, 2010 14


FACTOR ADJUSTMENTS

LAND CURVE FACTOR VS TOTAL VALUE -- FY11

0102030405060708090

100

Lot Size

Lan

d C

ost

/ S

q. F

t.

-50,000100,000150,000200,000250,000300,000350,000400,000450,000

To

tal L

and

V

alu

eSq. Ft. Cost

Land Value

October 14, 2010 15


CONTACTS24 Court Lane (Sleepy Hollow)

8:30 a.m. to 4:30 p.m.(978) [email protected] (town

departments: assessors)Visionappraisal.com

October 14, 2010 16


APPENDIXAssessors’ DutiesDefinitionsSample Land Values FY10 to FY11Site Indices/Condition Factors% Change HistogramsProperty Record CardCAMA Cost Formula/Table FactorsValuation versus Tax Bill

October 14, 2010 17


ASSESSORS’ DUTIES

For all physical property, real and personal1. Inventory all property2. ID legal owner3. Value each property

a. As of fixed date (January 1st)b. 100% of full and fair market value

4. Classify (R,C,I,O,S,E)5. Calculate tax rate

Administer excise taxes, special assessments and betterments, delinquent municipal charges

October 14, 2010 18


DEFINITIONS

Arms Length Sale: market transaction between and willing and knowledgeable buyer and seller

ASR (Assessment to Sale Ratio): ratio of the assessment divided by the sales price

COD (Coefficient of Dispersion): measure of deviation of the ASRs from the median ASR

DOR (Department of Revenue): branch of state government responsible for oversight of assessing operations.

IYA (Interim Year Adjustment): Years in between revaluation years requiring only summary reports from a town in order to have the tax rate approved.

Revaluation Year: a year-long process during which the DOR examines every aspect of an assessing operation before certifying property values.

October 14, 2010 19


INTERIM YEAR

State requirement for all cities and towns to undergo revaluation every third year

Interim year adjustments in the two years in between keep property valuations in line with the market to follow annual fluctuations

October 14, 2010 20


LAND VALUATIONSAMPLES OF LAND VALUES FY10 TO FY11

FY10 FY11 MA

Factor Value MA

Factor Value 10,000 1.28 281,000 1 272,200 20,000 1.28 330,800 1 320,400 30,000 1.28 368,600 1 357,000 40,000 1.28 380,900 1 369,200 80,000 1.28 409,600 1 396,800

10,000 0.90 197,600 0.73 198,700 20,000 0.90 232,600 0.73 233,900 30,000 0.90 259,200 0.73 260,600 40,000 0.90 267,800 0.73 269,500 80,000 0.90 288,000 0.73 289,700

10,000 3.00 658,500 2.55 694,100 20,000 3.00 775,200 2.55 817,000 30,000 3.00 864,000 2.55 910,400 40,000 3.00 892,800 2.55 941,500 80,000 3.00 960,000 2.55 1,011,800

Area (Sq. Ft.)

October 14, 2010 21


SITE INDICES/CONDITION FACTORS

SITE INDEX

A factor in addition to Market Area factor to denote a variance in a group of properties from other surrounding properties

Rarely used, but usually forms a pattern, such as an area within a market area that is more or less desirable. For example: highest point in a neighborhood or properties along a river.

CONDITION FACTOR

A factor in addition to Market Area and Site Index that is applied to an individual property for a condition that impacts the marketability of the property. Examples: abutting a railroad, easement that impairs access to or utility of the property

Very rarely used.

BOTH

MUST BE USED CONSISTENTLY AND SUPPORTED BY SALES DATA

October 14, 2010 22


FY10 TO FY11 PERCENT CHANGE FY10 TO FY11 Single Family Residences

23100 90 31 55

149

519632

1248

302 330 329

14377

174110 602

10 65 2

8

28

30

43

919 15

13

411

20

200

400

600

800

1000

1200

1400

-0.05 -0.04 -0.03 -0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05

<-20% -10 to-20%

-6 to -9%

-5% -4% -3% -2% -1% 0% +1% +2% +3% +4% +5% +6 to+9%

+10 to+20%

>+20%

Percent Change

# P

arce

ls

OVERALL CHANGE <+1%

65% Decrease or No Change20% Increase +3% or More

October 14, 2010 23


FY10 TO FY11 PERCENT CHANGE FY10 TO FY11 Residential Condominiums

224 18

61

2 3 1 11523

30

12012

6

264

22 8 20 2517

3

2

7 131

9

4

1

1

9

1

1

75

0

50

100

150

200

250

300

0 0.05 0.06 0.07 0.08 0.09

-9 to -21% -3 to -8% -1 to -2% 0% +1 to +2% +3 to +4% +5% +6% +7% +8% +9% +10% or More

Percent Change

# P

arce

ls

October 14, 2010 24


FY10 TO FY11 PERCENT CHANGE FY10 TO FY11 Vacant Residential Land

1 1 37

24

12 12

20

11

1

26

125

8

10

15

18

1

8

2 2

1

2

4

6

8

7

22

54

26

1

42

1

7

5

1

3

0

10

20

30

40

50

60

70

(0.48) (0.47) (0.46) -

< -48% -48% -47% -46% -30 to -45% -11 to -29% -1 to -10% 0 +1 to +20% +30 to +100% > 150%

Percent Change

# P

arce

ls

October 14, 2010 25


PROPERTY RECORD CARD

October 14, 2010 26


PROPERTY RECORD CARD

October 14, 2010 27


COST FORMULA OUTPUT FROM STORED PROCEDURE REPORT GENERATED ON 14-OCT-2010 AT 01:01

***************Building #1 Calc Start******************* Cost Calculation for pid, bid = 1443,1443 Account Number = 1443 Use Code = 1010 Cost Rate Group = SIN Model ID: P01

Section #1 Base Rate: 117 Size Adjustment: .99675 Effective Area: 2887 Adjusted Base Rate = (117 + 0) * .99675 Adjusted Base Rate: 116.62 RCN = (((116.62 * 2887) + 12000) * 1.1) + 0 RCN: 383550

**************Base Rate Adjustments******************** FLOOR COVER 1 12 (Hardwood) = 2.34 + BaseRate EXTERIOR WALL 1 25 (Vinyl Siding) = -2.34 + BaseRate

**************Flat Value Additions********************* FULL BATHS = 10000 + RCN HALF BATHS = 2000 + RCN

**************Factor Adjustments*********************** GRADE ADJUSTMENT 04 = 1.1 x RCN Percent Good = 82 RCNLD: 314500 *******************************************************

October 14, 2010 28


INTERPRETATION OF COST FORMULA PROPERTY CARD COST CALCULATION

What Appears on Card

Base Rate (from style table) 117.00 --on back--

Base Rate Adjustments:Floor Cover (hardwood) 2.34 Exterior Wall (vinyl siding) (2.34) Base Rate + Adjustments to Base Rate 117.00

Size Adjustment: Size Curve based on median for the class 0.99675 (SFR median = 2,700 sq. ft.) 116.62

Grade Adjustment: 04 1.10

Base Rate +/- Adjustments X Grade 128.28 128.28 Adj. Base Rate

Effective Area (derived from sketch) 2,887

Replacement Cost New (RCN) of building 370,349 370,350 Section RCN

Flat Value Additions:Full Baths (2 X 5,000 X 1.1(grade)) 11,000.00

First bath "free"Half Bath (1 X 2000 X 1.1) 2,200.00 Total Additions 13,200.00 13,200 Net Other Adj.

RCN + Additions 383,549.34 383,550 Replace Cost

Percent Good (100% less depreciation = % Good): 0.82 82 Overall % Cond.RCNLD (replacement cost new less depreciation): 314,510.46 314,500 Appraise Val

(rounded to 100)Plus Extra Features (fireplace): 3,100.00 --on front--TOTAL BUILDING 317,610.46 317,600 RESIDNTLOUTBUILDINGS (detached garage): 800.00 800 RESIDNTLLAND (from land curve up to 80,000 sq. ft. + excess @ $40,000/acre): 320,400.00 320,400 RES LAND

TOTAL ASSESSED VALUE 638,810.46 638,800

October 14, 2010 29


FACTOR ADJUSTMENTS MARKET AREA FACTORS

Proposed2009 2010 2011 ASR #

SALES

21 Annursnac 0.90 1.00 0.78 .97 422 Virginia Rd/Bedford St 0.94 0.94 0.76 .94 1523 Old Marlboro/ORNAC 1.05 1.05 0.90 .93 1424 Downtown/Author’s Ridge 1.80 1.80 1.45 .97 1925 Strawberry Hill/Lowell Rd 1.05 1.25 1.01 .97 926 Monument St 2.60 2.70 2.25 .94 227 Plainfield Rd/White Pond 1.04 1.04 0.82 .93 728 So. of center/Nimrod/Adams 1.28 1.28 1.00 .92 2129 Thoreau Hills 0.80 0.90 0.73 .96 730 West Concord 1.00 1.00 0.81 .97 1631 Nashawtuc Hill Area 2.70 3.00 2.55 .94 132 Ea. of Center/Lower Monument 2.50 2.50 2.02 .93 433 Mattison Farm/Garfield 1.05 1.25 0.90 1.00 3

October 14, 2010 30


FACTOR ADJUSTMENTS STYLES

ASR# SALES

1 Ranch .93 102 Old Style .92 133 Colonial .95 304 Cape Cod .97 146 Conventional .97 257 Contemporary .96 178 Raised Rnch/Split Lvl .92 760 Century .91 655 Condo .95 26

October 14, 2010 31


FACTOR ADJUSTMENTS STYLES

2009 2010 2011

1 Ranch $100 $ 90 $ 902 Old Style 153 142 1503 Colonial 125 117 1174 Cape Cod 118 110 1105 Bungalow 105 80 856 Conventional 143 140 1407 Contemporary 112 104 1048 Raised Ranch/Split Level 104 90 909 Family Flat, 2-Family 135 130 13010 3-Family 135 120 12060 Century 200 170 170100 Custom 200 170 17055 Condo 275 248 248

October 14, 2010 32


FACTOR ADJUSTMENTS

Building Size Adjustment FactorFY11

0.8001.0001.2001.4001.6001.8002.000

Effective Sq. Ft.

Adj

Fac

tor

October 14, 2010 33


FACTOR ADJUSTMENTS DEPRECIATION

Effective Base Year Changed to 2010Maximum % Deducted

Poor 45Fair 35Average 30Good 25Very Good 20Excellent 10

October 14, 2010 34


VALUATION vs. TAX BILL

FY10 FY11 (for

demonstration purposes only)

% Change

A. Total Property Value of Concord 5,026,552,229 5,041,730,741 0.003%

B. Total divided by 1,000 5,026,552 5,041,731

C. Tax Levy 65,797,569 66,525,315 0.011%

D. Tax Rate (Levy "C" Divided by "B") 13.09 13.20 0.009%

E. Example Property Value 950,000 952,850 0.003%

October 14, 20101 INTRODUCTION The purpose of this presentation is to give a brief overview of a...

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