City of Oak Creek

Common Council Report

Meeting Date: 09/02/03

Item No.:         7

Recommendation: 

a. That the Common Council authorize a limited scope revaluation of all taxable property for the 2004 assessment year,  and

b.   That the Common Council authorize negotiation with Cole-Layer-Trumble (CLT) for an addition to their contract to handle the project.

Background:

The City completed revaluations for the assessment years of 1997 and 2001.  In order to avoid drastic changes in valuation, and to maintain equity for all valued properties, the Council determined several years ago that it would be practical and beneficial to revalue properties on a regular basis, such as every three to four years.  To stay on track with the assessment ratio maintenance policy, funding has been designated as part of the CIP program, to accomplish the next revaluation for the assessment year 2004.  The values set in the revaluation would appear on the tax bills in December, 2004.

Now that the 2003 Assessment roll is closed, this item is being brought to you for consideration so that staff could begin scheduling the revaluation activities over the next year.  Since the 1997 data collection was quite comprehensive and the 2001 revaluation included interior inspections, a limited scope revaluation could be done at this time, costing substantially less than a full-fledged reassessment process.  A limited scope revaluation would consist of neighborhood delineation, land valuation, cost/depreciation analysis, establishment of valuation models, but would not require interior inspections except for properties that have been sold since 1/1/01.

Attached to this report are the following:

            Page 1:           Definitions          

            Page 2:           Examples of the effect of reassessment on a fictional town called “Sampletown”

            Page 3:           Table of sample residential sales through 6/30/03

            Page 4:           Table of assessment ratios and tax rates from 1988-2003

At the meeting, the City Clerk will review these pages and give a brief presentation.

Fiscal Impact:

Funding of $28,455 remains in the CIP project for revaluation, and the 2003 budget includes an additional $35,000, for a total of $63,455.  In keeping with the three-year program, an additional approximately $35,000 would be requested for the 2004 CIP.  

Prepared by and Fiscal review by: Beverly A. Buretta, CMC City Clerk/Comptroller

Respectfully submitted, Robert L. Kufrin City Administrator