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Standards for a Statistical
Revaluation

¢ Purpose of the Statistical Revaluation is to maintain
assessment equity

¢ Assessment Date is April 1, 2018

¢ Sales used in analysis occur between April 1, 2017
and March 31, 2018

° Median assessment ratio must be between .90 and
1.1

° Coefficient of Dispersion must be less than 20%

° price Related Differential must be between 0.98 and

Page 8 of 14

Approaches to Value

Market Approach (Analysis of Sales)
Cost Approach (Building Value + Land Value)

Income Approach (Commercial/Industrial)

Page 9 of 14

Measurements of Equity

Assessment Ratio

The relationship of an assessed value to its sale
price. For example, if the assessed value of a piece
of real estate is $200,000 and it sold for $250,000,
the assessment ratio would be 0.80 or 80%.

Median Ratio

The middle ratio in a sorted (low to high) array of
sales ratios. Half of the ratios are above the
median and half are below the median. The
median ratio is the most widely used measurement
as it is less influenced by outliers.

Page 10 of 14

Measurements of Equity

Coefficient of Dispersion (COD)
Measures the uniformity of assessments by measuring
the average percentage deviation from the median ratio.
The lower the COD, the more uniform the ratios within
the property group.

Price-Related Differential (PRD)

Tests for appraisal equity between lower and higher
value properties or price-related bias. A PRD below 1.00
tend to indicate assessment progressivity, the condition
which assessment ratios increase with price. A PRD
above 1.00 tends to indicate regressivity, in which
assessment ratios decline with price. The PRD is
calculated by dividing the mean ratio by the weighted
mean.

Page 11 of 14

Statistical Revaluation
Process

Begin project in late March with a start-up meeting with the City and DRA
Measure and List all residential qualified sales from 4/1/2017 to 3/31/2018
Measure and list all Comm/Ind qualified sales from 4/1/2016 to 3/31/2018
Analyze all sales through various ratio studies

Update all tables as indicated from the sales analysis

Analyze returned income and expense statements to create income tables
Review all properties in the field

Submit final values to the City for review

Publically post values to notify property owners of the new assessments
Conduct informal hearings

Deliver a compliant USPAP Manual to the City and DRA

Page 12 of 14

Goals of a Revaluation

Corrects disproportionate taxation by valuing all property at
it’s fair market value as of April 1, 2018

¢ Adjust value for market shifts

Ensures that various classes of property are valued at the
same level of assessment

° Creates uniformity and assessment equity

¢ Create a mass appraisal model using a systematic approach for
consistency

Page 13 of 14

Summary

Statistical Revaluation is Required by State Law

KRT Appraisal is Certified by the New Hampshire DRA

KRT has done several revaluations in New Hampshire

KRT has expertise in using the Income & Expense approach

Cost of this project is approximately $500,000

Source of Funding will be CERF (Current Balance - $1.7 Million)

¢ QUESTIONS ?

Page 14 of 14

SPECIAL BOARD OF ALDERMEN
MARCH 1, 2018

7:00 PM
PRESIDENT BRIAN S. MCCARTHY CALLS ASSEMBLY TO ORDER
PRAYER OFFERED BY CITY CLERK PATRICIA D. PIECUCH
PLEDGE TO THE FLAG LED BY ALDERMAN PATRICIA KLEE
ROLL CALL
COMMUNICATIONS

From: Brian S. McCarthy, President, Board of Aldermen
Re: Special Board of Aldermen Meeting

ADJOURNMENT

City Hall Auditorium

Board of Aldermen

City of Nashua
229 Main Street Brian S. McCarthy
Nashua, NH 03061-2019 President, Board of Aldermen

(603) 589-3030

February 23, 2018

Patricia D. Piecuch, City Clerk
City of Nashua

229 Main Street

Nashua, NH 03061-2019
Dear Ms. Piecuch:

Please be advised | am hereby calling a Special Meeting of the Board of Aldermen for Thursday,
March 1, 2018, at 7:00 p.m. in the City Hall Auditorium, for a discussion on assessment updates.

Thank you.

Sincerely,

Bx hh Lc
Brian McCarthy, President

cc: Mayor Jim Donchess
Steven A. Bolton, Corporation Counsel

A special meeting of the Board of Aldermen was held Tuesday, February 27, 2018, at 6:30 p.m. in the
Aldermanic Chamber.

President Brian S. McCarthy presided; City Clerk Patricia D. Piecuch recorded.
Prayer was offered by City Clerk Patricia D. Piecuch; Alderman Jan Schmidt led in the Pledge to the Flag.

President McCarthy

Before | ask the Clerk to take the roll, Alderman Harriott-Gathright is participating by telephone and under the
terms of the State law that allows her to do that, she needs to explain why she can’t attend, if she can hear us,
and who she is with, if anyone.

Alderman Harriott-Gathright stated the reason she could not attend, confirmed that she could hear the
proceedings, and stated who was present with her.

President McCarthy
Acknowledged that those present could hear Alderman Harriott-Gathright as well.

The roll call was taken with 13 members of the Board of Aldermen present; Alderman Lopez and Alderman Gidge
were recorded absent.

Alderman Harriott-Gathright was not in attendance but participated in the meeting via telecommunication.
Mayor James W. Donchess and Corporation Counsel Steven A. Bolton were also in attendance.
COMMUNICATIONS

From: Brian S. McCarthy
Re: Special Board of Aldermen Meeting

MOTION BY ALDERMAN WILSHIRE TO ACCEPT AND PLACE ON FILE
A viva voce roll call was taken which resulted as follows:
Yea: Ald. Wilshire, Ald. Harriott-Gathright, Ald. Dowd
Ald. Klee, Ald. Laws, Ald. Caron, Ald. Kelly
Ald. Jette, Ald. Melizzi-Golja, Ald. Tencza
Ald. Schmidt, Ald. O’Brien, Ald. McCarthy 13
Nay: 0
MOTION CARRIED
PRESENTATION

Drug Court Steering Committee Presentation on the Hillsborough South Drug Court

Pegay Gilmour

Thank you for having us tonight from the Hillsborough County South Adult Drug Court Steering Committee. We
just wanted to come and make sure you understood what was happening in your city in terms of the drug court. |
am here instead of Tom Monahan who is the Chair of the Steering Committee of the Drug Court. The Steering
Committee is a five-member community representative citizens who work in conjunction with the drug court team.
Our role is to do community education and outreach. We do some kind of fundraising for things that are not