ASSESSMENT UPDATE revaluation review, new construction, & assessed value projections KEN JOYNER BOARD OF COUNTY COMMISSIONERS ANNUAL RETREAT 1 ASSESSMENT UPDATE ◦ Framework for the BOCC update ◦ Item 1 - Revaluation Review ◦ Point 1 - Valuations Process ◦ Point 2 - Appeals ◦ Point 3 - Refunds & Discoveries ◦ Point 4 - Legislative Amendment SB159 ◦ Payment Plans ◦ Discoveries ◦ Item 2 - New Construction Data ◦ Point 1 - # of Permits ◦ Point 2 - % Increase in Permits ◦ Point 3 - Timeframe for Completion of Field work/Data Entry ◦ Point 4 - Historical Growth in Real Property base ◦ Item 3 - Assessed Valuation Estimate for FY17 (including an explanation of the FY16 Tax Base) 2 Item #1: Revaluation Review ◦ Point 1 of Project - Valuation Process ◦ Completed in March of 2015 ◦ Completed ON-TIME based on the ORIGINAL 18 month period ◦ Total Reduction in Value Year Count Pre-Review Value Pearson Value Change % BOCC Approval 2014 342,355 $96,745,628,245 $95,459,882,598 ($1,285,745,647) -1.329% Jan 2014 - Feb 2015 only 2013 351,282 $100,481,034,350 $98,968,452,514 ($1,513,552,536) -1.506% Oct 2013 -Feb 2015 2012 350,121 $99,676,151,333 $97,991,612,264 ($1,689,049,569) -1.695% Oct 2013 -Feb 2015 2011 349,227 $99,128,583,665 $97,535,798,476 ($1,594,138,989) -1.608% Oct 2013 -Feb 2015 ◦ Parcels details ◦ 69% No Change ◦ 8% Increases in Value ◦ 23% Reductions in Value 3 Item #1: Revaluation Review ◦ Point 2 of Project – Appeals Process – Completed December 2015 ◦ Hearings - Completed Dec 2015 ◦ Closed appeals – 23,932 appeals heard at the BER level ◦ Decision Letters - Completed Jan 22nd, 2016 ◦ Increase bills remaining ◦ Appeal rights - Individuals will have a 30 appeal period ◦ Process - The next BER will handle those as part of their normal process ◦ Impact - Should have minimal impact 4 Item #1: Revaluation Review ◦ Point 3 of Project – Refunds & Discoveries (Increase Bills) Process ◦ Refunds (No appeals) ◦ Completed ◦ 319,865 Refunds ◦ $43,946,498.01 Paid to Date ◦ In-Process ◦ 55,235 Refunds ◦ $17,005,935.64 Remaining to Be Paid (Does Not Included Interest) ◦ Total ◦ 375,100 Refunds ◦ $60,902,393.01 5 Item #1: Revaluation Review ◦ Point 3 of Project – Refunds & Discoveries (Increase Bills) Process ◦ Refunds (BER362 appeals) ◦ Completed ◦ 9,289 Refunds ◦ $12,661,577 Paid to Date ◦ In-Process ◦ 434 Refunds ◦ $98,837 Remaining to Be Paid ◦ Total BER362 appeals ◦ 9,723 Refunds ◦ $12,760,414 6 Item #1: Revaluation Review ◦ Point 3 of Project – Refunds & Discoveries (Increase Bills) Process (as of 1-25-16) ◦ Refunds (PTC362 appeals) ◦ Completed ◦ 662 Refunds ◦ $23,958,516 Paid to Date (Includes Interest) ◦ In-Process ◦ 84 Refunds ◦ $2,251,672.69 Remaining to Be Paid (Does Not Include Interest) ◦ Total PTC362 appeals ◦ 746 Refunds ◦ $26,210,188.69 Total 7 Item #1: Revaluation Review ◦ Point 3 of Project (Cont.) – Refunds & Discoveries (Increase Bills) Process ◦ Discovery (Increase Bills) ◦ One time funding ◦ Completed ◦ 74,484 Discovery/Increase bills ◦ $16,525,188 Billed to Date ◦ In-Process ◦ 16,545 Increase Bills Remaining ◦ $8,703,154 Remaining to be Billed 8 Item #1: Revaluation Review ◦ Point 4 of Project Legislative Amendment SB159 ◦ Approved by the General Assembly on October 1, 2015 ◦ Changes to the Original Revaluation Review Process ◦ Payment Plans (through 1/21) ◦ Total plans applications = 258 ◦ Total Declines = 131 ◦ Total pending = 0 ◦ Total Approval = 127 ◦ Approval Funds = $411,715.28 9 Item #1: Revaluation Review ◦ Point 4 of Project Legislative Amendment SB159 (CONT.) ◦ Approved by the General Assembly on October 1, 2015 ◦ Discovery (Increase Bills) to January 1 owner ◦ 1164 unpaid bills that we released and will be rebilled ◦ 3576 customers mailed a letter identifying “They may be due a refund……” on bills they have paid ◦ 3,188 bills that remained unpaid had their interest date adjusted to 1-6-16 versus 1-6-15 ◦ 8,465 bills that have been paid that had their interest date adjusted that are now due a refund ◦ $451,057.02 including all districts (not including interest) 10 Item #2: New Construction Data PERMITS ISSUED BY CALENDAR YEAR Building Permits Mechanical Permits All Permits 60,000 NO. OF PERMITS ISSUED 50,000 40,000 32,503 34,345 41,076 38,369 45,299 27,789 48,574 29,193 23,053 24,858 13,683 15,316 16,218 17,510 2010 2011 2012 2013 2014 2015 Building Permits 2010 13,003 2011 13,683 2012 15,316 2013 16,218 2014 17,510 2015 19,381 Mechanical Permits 19,500 20,662 23,053 24,858 27,789 29,193 All Permits 32,503 34,345 38,369 41,076 45,299 48,574 30,000 19,500 20,662 13,003 20,000 10,000 19,381 0 CALENDAR YEAR 11 Item #2: New Construction Data ◦ Point 2 – Permits ◦ % growth in Permits over the prior calendar year 2015 ◦ Historical comparison 2010-11 2011-12 2012-13 2013-14 2014-15 Overall Construction 5.2% 12.0% 5.9% 8.0% 10.7% 49.1% Mechanical 6.0% 11.6% 7.8% 11.8% 5.1% 49.7% 12 Item #2: New Construction Data ◦ Point 3 – CAO New Construction completion timeframe by year ◦ 2016 estimated ◦ Field work 1/31/16 ◦ Data Entry 2/29/16 ◦ Historical comparison Completion Date 2010 2011 2012 2013 2014 2015 Fieldwork 2/23/10 5/12/11 8/29/12 4/10/13 2/14/14 2/13/15 Data Entry 4/23/10 7/12/11 10/29/12 6/10/13 4/14/14 4/13/15 13 Item #2: New Construction Data ◦ Point 4 – Historical Growth in Real Property Base ◦ Real Property is the largest segment of the tax base ◦ Historical comparison Completion Date 2009 % Growth Real Property Base $-Real Property Base $81.279 B 2010 2011 2012 2013 2014 2015 1.5% 11.3% * 0.4% 1.0% 1.7% $82.517 B $91.813 B $92.206 B $93.133 B $94.608 B 2016 2.7% Approx. 2.0% $97.289 B $99.265 B * Revaluation Year 14 Item #3: Assessed Valuation Estimate FY17 ◦ Item 3 - Assessed Valuation Estimate for FY17 FY16 Budget Real Estate FY16 Actuals * FY17 Estimate 97,070,689,452 97,288,094,089 99,265,612,901 Personal 9,268,662,370 9,277,258,953 9,418,778,607 Motor Vehicles 8,729,611,722 8,708,134,184 9,056,459,552 Public Utilities 4,436,919,206 4,194,805,689 4,446,494,030 119,505,882,750 119,468,292,915 122,187,345,090 TOTAL * Adjusted base – removed one-time valuations anomalies 15 Item #3: Assessed Valuation Estimate FY17 ◦ Item 3 – Adjusted FY16 Actuals INCLUDING the One-Time REVENUE Items FY16 Real Estate 97,288,094,089 Personal 9,277,258,953 Motor Vehicles 8,708,134,184 Public Utilities 4,194,805,689 Total excluding one-time funding Prior Year Audit SL362 Discoveries FY15 Airline Discovery – Public Utilities Total FY16 Billing 119,468,292,915 + 408,747,595 + 1,876,213,978 + 519,454,191 122,272,708,679 16