City of Norwalk 2018 Revaluation Project Presenter: Paul Miller Supervisor: Salim Serdah Appraisers: James Steiner, John Valente, Steve Beccio, Rich Nicolosi, and Gynt Grube.
Why Revaluation? It s important to remember that revaluation is revenue neutral. No new taxes are raised due to a revaluation, the existing tax dollars are redistributed more fairly based on current market values. The state of Connecticut mandates that assessors must revalue all real estate not later than five years after the October 1 effective date of the previous revaluation. 2
Scope The City of Norwalk contracted with Tyler Technologies, Inc. to assist the assessor with the state-mandated revaluation for October 1, 2018. As part of the revaluation, a percentage of properties were inspected including: properties that had recently sold, any property with a building sketch that was identified as having a discrepancy during the sketch verification process, and those for which a property data mailer was not returned or if a returned mailer had a significant discrepancy. 3
Scope Data mailers were sent to each residential parcel, giving taxpayers the opportunity to review and correct the data on file for their property. Tyler staff then visited any property where there was a significant discrepancy. 4
Data Mailer Owner Response Total Mailers Sent 24,374 Owner return with no data change 8,424 34.56% Owner return with data change 2,229 9.14% Owner return with major data discrepancy 834 3.42% Total Returned 11,487 47.13% 5
Research Market & Costs The goal of the revaluation project is to estimate fair market value for all of the residential, apartment, and commercial properties in Norwalk. Tyler will analyze local building costs, property sales, rental income information, and other valuation factors to update values for each property. Three traditional approaches to value estimation will be employed. Cost and Sales Comparison will typically be used for residential properties; Income analysis may be additionally employed for commercial property. Property valuation analysts conduct a number of studies to measure the real estate market in the area. The process begins with collecting and verifying dates and sale prices for all property sales within an approximate two-year period. Sales that were not arms-length are noted and excluded. Commercial property may also be valued using an income approach to valuation. With this method, the income and expense stream of a property is examined from typical purchasers, sellers, and investors point of view. The income approach will be applied to commercial properties such as apartments, restaurants, shopping plazas and the like. 6
How do we value land? The land value is used by all approaches (cost, market and income) For residential properties, the land is allocated between building site and residual (remaining) acres Land values were developed from sales from the specific neighborhood being valued - land sales when available, or improved sales if there were no vacant lot sales 7
How do we value buildings? Cost Approach The cost approach estimates what it would cost to build a replacement structure of the same quality, amenities, and functionality. This replacement cost is depreciated (reduced) to reflect the age and condition of the structure. Nearly every component listed on the property card contributes to the replacement cost (fireplaces, rec room, square footage, bathrooms, etc.). Garages, decks, porches, etc., add a value relative to their depreciated replacement cost. 8
Residential Sales Data The first step to establishing values is to determine what exactly drives value. We do this by reviewing properties that have sold. This review consists of both verification of the sale terms as well as the property data (such as amount of living area, location etc.). In Norwalk, there were 1,008 residential sales used for market analysis. There were 676 Residential House sales and 332 Residential Condo sales suitable to use for residential modeling occurring in the time period of October 1, 2017 to September 30, 2018. This timeframe represents the market we are attempting to capture in our valuation of each property. City of Norwalk Average SP Median SP Count Res Condo $ 284,330 $ 250,000 332 Res Houses $ 602,950 $ 489,875 676 Residential Total $ 498,067 $ 421,275 1,008 9
Field Review State certified appraisers and state certified revaluation personnel have reviewed the value calculation for each property in the field. The purpose of this review is to ensure the property data is accurate and that the valuation methodologies have been applied correctly and consistently. 10
Residential Class Change Analysis LAND_DESC PARCELS MEAN MEDIAN 2 Family 2,295 1.35 1.35 3 Family 389 1.43 1.40 4 Family 123 1.49 1.44 Condo OB 1,193 1.00 1.00 Condo PUD 262 1.04 1.02 Condominium 6,433 1.06 1.06 Res / Com 19 1.20 1.09 Resid Vacant 559 1.14 0.99 Single Fam w in-law 348 1.12 1.11 Single Family 15,571 1.09 1.08 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 RESIDENTIAL DISTRIBUTION WITH MEDIAN CHANGE 2 Family 3 Family 4 Family Condo OB Condo PUD Condomin ium Res / Com Resid Vacant Single Fam w inlaw Single Family MEDIAN 1.35 1.40 1.44 1.00 1.02 1.06 1.09 0.99 1.11 1.08 PARCELS 2,295 389 123 1,193 262 6,433 19 559 349 15,645 11
Style Change Analysis Single Family STYLE PARCELS MEAN MEDIAN Bungalow 373 1.09 1.08 Cape Cod 3,556 1.11 1.10 Colonial 4,698 1.11 1.09 Contemporary 548 1.09 1.07 Contemporary Ranch 5 1.09 1.02 Conventional 843 1.14 1.14 High Ranch 123 1.08 1.08 Mediterranean 8 1.22 1.12 Raised Ranch 1,517 1.09 1.08 Ranch 3,013 1.06 1.05 Split Level 1,086 1.03 1.03 Studio 8 1.10 1.07 Tudor 28 1.12 1.10 Victorian 113 1.12 1.10 15,919 12
Neighborhood Change Analysis NBHD PARCELS MEAN MEDIAN 10-Silvermine 875 1.09 1.08 11-Ponus/Broad River 751 1.06 1.04 12-West Norwalk 1,213 1.03 1.03 13-Strawberry Hill 1,269 1.08 1.07 14-Central Norwalk East 344 1.07 1.07 15-Central Norwalk 914 1.26 1.23 16-Central Norwalk West 1,334 1.13 1.08 17-West Route 1 367 1.11 1.11 18-Brookside 1,190 1.13 1.09 19-South Norwalk 954 1.26 1.20 20-Shorefront Park 89 1.26 1.18 21-Harbor View 115 1.09 1.05 22-Village Creek 71 1.06 1.02 23-Wilson Point 98 1.22 1.16 24-East Norwalk 1,674 1.24 1.21 25-Rowayton 1,404 1.12 1.08 27-Golden Hill 641 1.28 1.22 27-Springwood 307 1.34 1.31 29-Islands 18 1.14 0.99 30-Cranbury 1,793 1.07 1.07 31-West Rocks 1,193 1.09 1.07 32-Wolfpit 996 1.09 1.09 33-Spring Hill 1,256 1.11 1.09 34-Associates 304 1.17 1.12 14
Definitions Mean - The "Mean" is computed by adding all of the numbers in the data together and dividing by the number of elements contained in the data set. Median - The "Median" of a data set is dependent on whether the number of elements in the data set is odd or even. First reorder the data set from the smallest to the largest then if the number of elements are odd, then the Median is the element in the middle of the data set. If the number of elements are even, then the Median is the average of the two middle terms. Price Related Differential - This is for measuring assessment regressivity or progressivity. Hence the price related differential is also known as the index of regressivity. The mean ratio divided by the aggregate ratio. This statistic is used to determine whether assessment practices are progressive or regressive. Coefficient of Dispersion the average deviation of a group of numbers from the median expressed as a percentage of the median. Weighted Mean Ratio -- Sum of the appraised values divided by the sum of the sale prices. 16 2014
Residential Sales Analysis LAND DESCRIPTION SALES MEAN MEDIAN WGTMEAN PRD COD 2 Family 57 0.9858 0.9886 0.9801 1.0058 8.88% 3 Family 8 0.9475 0.9313 0.9415 1.0064 7.44% 4 Family 6 0.9787 0.9486 0.9668 1.0123 8.51% Condominium 332 0.9664 0.9628 0.9616 1.0049 4.71% Single Family 605 0.9822 0.9693 0.9836 0.9985 9.20% 700 RESIDENTIAL SALES WITH COD 600 500 400 300 200 100 0 2 Family 3 Family 4 Family Condominium Single Family MEDIAN 0.9886 0.9313 0.9486 0.9628 0.9693 SALES 57 8 6 332 605 17
Commercial Change by Use LAND DESCRIPTION PARCELS MEAN MEDIAN Apartments - Com 142 1.51 1.44 Apartments 107 1.34 1.24 Com / Res 157 1.34 1.29 Comm Vacant 32 0.95 1.00 Commercial Condo 315 1.27 1.25 Commercial Improved 876 1.46 1.38 Commercial Vacant 177 2.18 1.61 Industrial 115 1.40 1.34 Industrial Condo 24 1.21 1.29 Industrial Vacant 43 1.93 1.46 1,000 900 800 700 600 500 400 300 200 100 0 Apartment s - Com COMMERCIAL LAND USE WITH MEDIAN CHANGE Apartment s Com / Res Comm Vacant Commerci al Condo Commerci al Improved Commerci al Vacant Industrial Industrial Condo Industrial Vacant MEDIAN 1.44 1.24 1.29 1.00 1.25 1.38 1.61 1.34 1.29 1.46 PARCELS 142 107 157 32 315 876 177 115 24 43 18
Preliminary Assessment Notifications November 2018
What to Expect Notices with the 2018 preliminary assessments will be mailed to all property owners the week of November 19 th. Property Records will be available online VGSI.com If property owners feel the preliminary 2018 assessment does not accurately reflect market value as of the October 1, 2018 valuation date, Property owners, or their representative, may contact Tyler to schedule an informal review. All informal review meetings are by appointment only. The notice will outline what to do if you disagree with the assessment. 20
Understanding the Notice The property s parcel ID and location are printed at the top of the notice The 2018 Market Value is what Tyler will discuss in an informal review meeting. Tyler will NOT discuss exemptions or taxes. Appointments can be scheduled over the phone or online as noted 21
How to Schedule a Meeting Properties owners can schedule an appointment online or they can call Tyler at 203-854-4098 once they receive their letters. Tyler will be available Monday through Friday, 9:00AM to 5:00PM through December 28, 2018 for scheduling. Be sure to have your notice with you when you schedule your appointment. Information on the notice is required. The phone lines may be busy the first few days but will lighten up by the second week. Owners must inform Tyler of ALL properties they own and wish to discuss at the time they schedule their meeting. 22
At the Informal Meeting Informal meetings generally take 15 20 minutes. Property owners will have an opportunity to review the data Tyler used to determine the assessment. A signed form from the property owner is required for all representatives in order to discuss their property. Only properties that have been scheduled for an appointment will be discussed. Tyler will only discuss full market value. Tyler will not discuss taxes. 23
Property Record Card During an informal review, the hearing officer will review your property record card with you. The property record card contains the information on file for your property that was used to estimate the assessed value. The front of the card includes: Current owner information Land information Value information Entrance information Building permit information Sales and ownership history 24
Property Record Card During an informal review, the hearing officer will review your property record card with you. The property record card contains the information on file for your property that was used to estimate the assessed value. The back of the card includes: Dwelling data Sketch of the dwelling Value computations for the cost approach Outbuilding data Condominium information 25
Property Record Card 26
Property Record Card 27
What to Bring to the Meeting Informal reviews do not require anything specific or special from the property owner. While NOT required, photos, recent appraisals, or other documentation are welcome. It is best to provide a copy of this documentation for Tyler to retain for review. Commercial property owners should bring recent appraisals, 2018 income and expense data, and 2017 Tax returns. 28
What If I Cannot Attend? If owners cannot attend an informal review meeting, correspondence may be sent to Tyler Technologies at the address on the notice, postmarked no later than December 29, 2018. 29
What Happens Next? Tyler appraisal staff will review every property that had an informal meeting. Final assessment notices will be mailed in January to all properties. By office of the assessor. If a property owner is not satisfied with the results of the informal review, the owner may appeal in writing to the Board of Assessment Appeals no later than February 20, 2019. 30
Thank you for joining us today. We would be happy to answer any questions at this time.