Loading...
HomeMy WebLinkAbout031808 Assessment ReviewAssessment Process Review Residential Properties City of Virginia Beach March 2008 ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Thanks for the Great Cooperation and Assistance •Jerry Banagan, Assessor •Ron Agnor, Assistant Assessor •Residentail Appraisal staff (Kim Smith, Tom Vitz, Dick Whitaker, George Barham, Sue Cunningham) •Kim Utley, IT/Data Coordinator •Ron Berkebile, Management Services ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants What We Did •Reviewed appraisal statutes, guidelines, tables, forms, and other documentation •Site visit & interviews (week of Nov 26) •Conducted independent statistical review of assessment accuracy & uniformity •Developed draft and final reports ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Assessment Environment (Late 2007) •City had completed 2007-2008 revaluation: base date of 1 July 2006 and completion date of 31 Jan 2007 •Was working on 2008-2009 revaluation •Transitional real estate market; consideration given to later sales (after July 1) •Conversion to ProVal CAMA system (old system used for 07/08; new system for 08/09) ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Summary of Findings •Virginia statutes provide a strong basis for fair and equitable assessment •Assessment procedures are appropriate & effective •Assessments achieve high accuracy/uniformity •Department is well managed •Residential staff is highly professional and productive -but understaffed •New CAMA system is significant enhancement •Various opportunities for improvement exist ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Strong Statutory Basis for Accurate Values and Assessments •Assessments based on full market value (price property would fetch on the open market) •Assessments are updated annually •No artificial value requirements or constraints •Mandatory rate rollback when assessments increase •Usual exemptions; relief for elderly and disabled •Public disclosure of sales prices (but Virginia law does not provide for real estate transfer declaration) ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Assessment Procedures •Comply with professional standards •Market-calibrated cost approach •Appraisers review and plot sales on maps •Valuation analyses are thorough/well-done •Old system very cumbersome; new system has more functionality and is more efficient •Too many neighborhoods •Various additional opportunities exist ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Assessment Performance •Level of assessment between 0.95 and 1.00 --0.98 for 07/08 residential values •Good uniformity among property groups •Good uniformity and consistency in values among individual properties --average dispersion of 8% •Good uniformity betweencommercial and residential properties ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Sales Ratios by Property Type ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Budget and Staffing Conclusions •Budget low by traditional benchmarks --budget per parcel --budget as a % of property tax revenue •Staff relatively small by traditional measures and compared to other jurisdictions •Staff highly productive but overly stretched •Vulnerabilities given potential retirements and possible appeal increases ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Budget and Staffing Benchmarks IAAO Metropolitan Jurisdiction Council (MJC) Survey, 1999 Virginia Benchmark Beach, NumberLowMedianHigh 2005-2006 Budget as a percent of total property tax 0.58220.340.932.89 revenues Budget per parcel ($)$18.1529$8.84$21.2039.32 Parcels per staff4,231301,7392,8196,667 ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Recommendations •Seek sales disclosure form / consider mailer •Consider centralizing sales validation process and adopt sales validation codes •Enhance analytical capabilities --additional training and pilot projects --add statistical analyst position --add GIS support position --provide appraisal staff direct access to data (rather than submission of requests to ComIT) ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Recommendations •Continue to consider late sales •Consolidate neighborhoods •More comprehensively monitor time trends and determine required adjustments •Use multi-year (time-adjusted) sales •Consider testing direct sales approach •Consider a number of additional technical refinements (see report) ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Conclusions •Residential valuations are highly accurate and uniform (exceed professional standards) •City has a highly experienced and capable staff --but staff is thinly stretched and vulnerable to turnover/retirements or increased appeals •The new CAMA system represents a major improvement and brings opportunities for improved efficiencies (many already in place) ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants Conclusions •Assessment department should strive to enhance its data analysis capabilities •Addition of a statistical analyst and GIS specialist would be highly desirable •Valuation procedures are sound; various technical refinements can be considered ALMY, GLOUDEMANS, JACOBS & DENNE Property Taxation and Assessment Consultants