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Special Board of Aldermen 11-15-2021 Page 11

Richard Vincent, Chief Assessor

So if you're looking at a shopping center where you don't care if Gamestop is in there and how much they're generating,
we want to know what the property itself will generate for rent for each store.

Alderwoman Lu
Thank you. Could | just ask two more questions?

President Wilshire

Yes.
Alderwoman Lu
Thank you. Has Vision found many errors in the measuring list?

Mike Tarello, Vice President

Well I'm not sure how you define it as an error. | guess, actually, probably June, you’d probably have to speak on this
(inaudible) because you're the one that's managing the team on a sense of the correction of the cards and so forth. It's
kind of hard to say what's identify as an error because there may be changes that occurred that maybe there wasn't a
perfect taken out and now they’re different. Do you want to add a little bit to that June?

President Wilshire

Can you identify yourself first for the transcriptionist please?
June Perry
June Perry with Vision Government Solutions.

President Wilshire

Thank you.

June Perry

| would just add that you're right. You can't really define it as an error until you are out there and you're looking at it, you
know, whether or not we come across something and it was a siding change - aluminum to vinyl. That could have been
done through a building permit or, you know, they didn't take out a building permit, and we're just finding it, and we're
making a correction. So, you know, as we get more towards the field review and what the guys are doing now is they're
measuring on the outside. I'm not seeing a high error ratio that | Know about. Again, we're going to be doing the interiors
and that's actually where we pick up a lot more data because we find things and people, you know, when we're doing the
inside if there's been a change or a model, you know, again, it's not a certain error but it's information that we're finding
out about.

Alderwoman Lu

Thank you. So | guess the question | asked wasn't very measurable. So let me if | could, what number errors would you
consider high? Just so | know what you're saying isn't a high rate. Would you say 30% you'd call high?

Mike Tarello, Vice President

It's hard to do a measurement of percentages. | would say the measured of the houses off by numerous feet, that would
whatever, you know, but percentage wise we don't really look at it as abating system. We're really there just to address
the property as it is now compared to what it was two or three years ago. There are changes that occur for many
reasons and it's hard for us to really identify a rating system in errors. Really they're there to just get the data correct as
it is now and then get accurate numbers.

Special Board of Aldermen 11-15-2021 Page 12
Alderwoman Lu

So just to clarify, | had asked whether you found many errors with the measure and the list and Miss Perry said well |
don't know what you would call a lot but | don't think there are a lot. | was just for the purpose of getting a useful answer,

| was just trying to say maybe you can tell me what percent of inspections that would be considered a high number to
find an error in. But it sounds as though are you hesitant to just close that loop for me?

June Perry

| don't have that answer for you.

Alderwoman Lu

All right. That's fine. Allright. Will we be able to let people with escrow accounts to give them any information to, you
know, in advance so that they will be able to prepare for what may be happening in 2022? This may be to the Mayor or

to Mr. Vincent.

Kim Kleiner, Administrative Services Director

So perhaps either June or Mike could go over the final document that laid out the rest of the process. | don't think that
we have shown that yet. Would that be acceptable? Kind of walk through when those dates are coming up? | think that
is to Alderman Lu’s question as to when, you Know, values will be released and things of that sort. June or Mike would
you be willing?

Richard Vincent, Chief Assessor

The project timeline?

Mike Tarello, Vice President

Yeah, | got it. Let me just pull it up. Yeah so just to kind of take it over. At the beginning of the year, we'll kind of do our
preliminary analysis in December, January, and then peer review with those preliminary generate with June, and then
the assessor's review in June and July, and then we'll give them like a preliminary manual and update of the documents
that we've done. In July, we'll send out the notices. They'll be mailed out early, mid-July and then we'll do appointments
in late July and in August for the hearings. Then the second notice of the chain would go in August and completion is
due September 1‘. So | would say that for the assessors to do their numbers and get everything ready for the State,
they would be doing that obviously in late August. Right what | just said, it's right up there on the screen.

Alderman Klee

Thank you, Madam President. | just want to make it clear and | know it was touched on earlier that the percentage of
increase of assessment is not directly related to the percentage of increase in taxes. That needs to be understood.
Truthfully if every single property went up 100%, we would not see $1 increase in taxes. That's not how it happens as
we could see here - different percentages go up. The same bills have to be paid by the same and | know when I've gone
back and looked at the history of the tax rate, | saw at one point it was up to the tax rate was like | think was like 50
something percent in the late 60s and then in 1970, it dropped down to like 80% because values jumped so high. So the
percentage of taxes is not necessarily the rate of the increase of assessment and the State will determine what that rate
is based on our overall city valuation. Am | correct Ms. Kleiner in that and, I'm sorry.

Kim Kleiner, Administrative Services Director

Yes, you are correct. We will get calls tomorrow that, you know, people are afraid that their taxes are going up 40%.
That is not a case and that's not the conversation. The conversation we're talking about is in assessments and there's a
large difference between assessments and the tax rate.

Richard Vincent, Chief Assessor

Again, you're right. If the overall increase is 40%, doesn't mean people's taxes are going up 40%. Generally, what
happens is some tax, some property owner’s taxes will go down and some will go up. Some will stay about the same.
The tax rate is quite simply a matter of division. You take the total revenue that has to be raised and divide that by the
total assessed value or — | forget which one - one gets divided into the other total value for the city and the total amount

Special Board of Aldermen 11-15-2021 Page 13

of revenue that needs to be raised and that's your tax rate. That's kind of simplifying the process but that's essentially
what it is.

And then where an individual property owners’ assessed value follows in that increase will determine whether their taxes
will go up or down. So if the average increase was 40% in an individual property’s value goes up 20%, they'll probably
see a decrease in their taxes. If it goes up 60%, they'll probably see an increase in their taxes. But that, again, is way
too early right now too project.

Alderman Klee
Thank you for the clarification. | just know exactly what Director Kleiner said. There will be calls tomorrow morning
probably to every one of us sitting around this horseshoe. | just kind of wanted to make sure that that information went

out that this is not directly related and as you pointed out, too soon to start talking about that. Thank you.

Alderman Clemons

So based on this timeline here, we're basically looking to have this implemented for the December tax — December 2022.
Is that correct? Do we think we're gonna make that timeline?

Kim Kleiner, Administrative Services Director

Yes, I'm very confident Vision Government Solutions will make that timeline.

Alderman Clemons

Okay. Thank you.

President Wilshire

You all set Director Kleiner?

Kim Kleiner, Administrative Services Director

Yes, thank you.

President Wilshire

Okay. I'd like to thank you all for coming this evening and for explaining this process. It was very informative. |
appreciate you also folks on Zoom. So thank you for the presentation this evening.

Mike Tarello, Vice President

Our pleasure.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE NOVEMBER 15, 2021, SPECIAL MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED, BY ROLL CALL

A viva voce roll call was taken to adjourn the Special Board of Aldermen meeting which resulted as follows:

Yea: Alderman O’Brien, Alderman Klee, Alderman Dowd, Alderman Caron,
Alderwoman Lu, Alderman Jette, Alderman Harriott-Gathright, Alderman Wilshire 8

Nay: Alderman Clemons, Alderman Lopez 2
MOTION CARRIED
The meeting was declared adjourned at 9:24 p.m.

Attest: Allison Waite, Deputy City Clerk

Nashua NH 2020/2022

Cyclical Revaluation

OVISION

GOVERNMENT SOLUTIONS

Final USPAP Compliant Appraisal Manual completed and turned over to DRA and

TIMELINE PROJECT TASK

March 2, 2020

Assessor's office - November/December 2022

Start-Up Meeting with Board of Assessor’s and DRA March

February 2020 Create Data Collection Guidelines
March 2020 - Data Collection at 28,559 Properties with Images
December 2021

July 2021 - May 6
2021

Callback Letters/Appointments

2021 - April 2022

April 1, 2021 - Residential Sale Properties

April 1, 2022

April 1, 2021 - Commercial, Industrial, and Apartments

April 1, 2022

pecan a02ills Review Residential Sale Properties ~? We Are Here
Through May Review Commercial, Industrial and Apartments

2022

February 2022 Mail Income and Expense Forms

May/June 2022 Reconciliation

December/January | Preliminary Residential Analysis

January —- June
2022

All Field Review Classes

June/July 2022 Assessors’ Value Review

July 2022 Completed Preliminary USPAP Manual

July 2022 Impact Notice are Mailed

July 2022 Appointments Taken to Schedule Hearings

Late July/August | Scheduled Hearings

2022

August 2022 Second Impact Noticed are Mailed

August 2022 Property Record Cards (Hard Copy or PDF) are Delivered to Assessor's Office

September 1°,
2022

Project is Completed and Database is Turned Over to Assessor's Office

Project Status Report

City of Nashua NH Date: oO VISION

GOVERNMENT SOLUTIONS
INT o)¥/=11 1) of 2) am 4 Oa

CODE TASK

100 Bonding, Office Set-up, Project Set-up, Public Relations

200 Data Collection, Data Mailers, Building Permits, Sales Inspections, Quality
Control and Data Entry

300 Residential Valuation

400 Commercial/Industrial Valuation

500 Residential Field Review, Data Entry

600 Commercial/Industrial Field review, Income Production, Reconcile Cost, and
Income

700 Digital Imaging, Documentation

900/1000 | Project Finalization, Change Notices, Special Land Pricing, Client Meetings,
Support of Values, Goodwill

Task 100/200

Y Bonding is complete. GIS maps have been provided. Building permits are being
completed by the City through April 1, 2020. Vision is responsible for building permits
though April 1, 2022.

Y Public Relations will be on going throughout the project, with on-going sample press
releases provided, and meetings available upon request.

¥ Updates will be provided throughout the project.

Y The initial startup meeting with the Board and DRA was March 2, 2020 at City Hall.

Y An update to the Board was held on June 4", September 18", 2020, December 17*", 2020,
March 18°, 2021, and June 3%, 2021, October 7, 2021.

Y Project commenced March 3%, 2020.

e,

2. Specific goals and benchmarks to measure success shall be established by the City subject to
consultation with the Contractor and agreed upon by both parties, and shall be such that the
work in these areas mect or exceed current standards and practices generally accepted in the
field of public access television and shall] at least show goals and benchmarks for the major
public access television outputs, including but not limited to hours of programming,
programming produced by access center staff, hours of training, and number of people
involved in different activities of the public access center.

3. The Contractor recognizes that the City highly discourages any revenuc cnhancing effort that
relies in whole or in part on establishment of or an increase in existing user fees for access

courses and programs.

DevelopmentandImplementationofanOperationsDevelopmentPlan

Contractor shall: develop a multi-year phased plan as necessary to support and expand
operations (including supplementing or expanding any dedicated or shared equipment
provided by the City). The plan should include sufficient detail to assist the City and
Contractor in estimating the approximate funds necessary annually to support and expand
ongoing operations, and to meet objectives including:

a. increasing frequency, depth, and quality of broadcasts;

b. increasing constituent satisfaction with content and delivery;

c. increasing public participation and involvement in public access television

activities; and
d. increasing the technical quality of productions and cablecasts.

SECTION 4. REPORTING REQUIREMENTS.

A.

BudgetPreparationandSubmission

Contractor shall be accountable to the Contract Manager and shall at all times maintain full, accurate
and current records documenting the level of Contractor’s services provided under this contract.
The Contract Manager may change the reporting schedule with 14 working days notification to the
Contractor.

At least twenty (20) days prior to the beginning of its fiscal year, Contractor shall provide Contract
Manager with a copy of its proposed budget for services under the contract, showing Contractor’s
plans for expenditure of all funds. Contract Manager shall provide comments (if necded) to
Contractor within twenty-one (21) business days of receipt of the proposed budget, or notification of
the necessity of an extension for review and comment by other City staff or agents.

Within 90 days following the beginning of the Contractor’s fiscal year, the approved budget adopted
by the Access Corporation board must be submitted to the Contract Manager. As stated in Section 4
— Reporting Requirements, City shall receive as part of the reports submitted by Contractor, a
reconciled report of actual expenditures from the previous fiscal year.

-10-

¥ Data Collection guidelines have been completed. Lister's information has been completed
and the police department has been informed of all aspects of the data collection phase
of the revaluation.

M

Data entry will be ongoing throughout the project, commencing after June 2020.
v¥ Usernames and passwords have been assigned and will have people associated with them
do the data entry.

v Daily communication with the Assessor's office is on-going concerning the progress of the
data collection as well as any issues to be addressed.

Interior Inspection are ongoing. More schedules will be added as needed.
Ward 1-9 Property record cards have been printed.

Images are being taken and will coincide with production numbers.

NS] NESTS

Images are also being captured to the live database.
Y Data entry is on-going.
Y The database is live in Nashua NH

WARD DATA COLLECTION

Ward 1 Count 3,869
Ward 2 Count 3,478

Ward 3 Count 2,845
Ward 4 Count 2,287
Ward 5 Count 4,480
Ward 6 Count 3,035
Ward 7 Count 3,027
Ward 8 Count 2,764
Ward 9 Count 3,521

The Following is the Measure and Listing Numbers Accountable as of November 6", 2021:

Total Residential Improved Parcel Count 25,605
Measures 24,871
Total Interior Inspections 1,686
Refusals to Date — Partial/Full 7/300
Total Measures with Refusal 25,171
Total Percent Complete Measured 98%

Total Commercial/Industrial/Exempt 1,964
Improved Parcel Count |
Total Measures 1,901
Total Interior Inspections | 0
Total Percent Complete Measured 97%
Refusals to Date 3

Y The callback letter has been approved.

¥ Ward 1 residential class mailed 6/30/2021.

¥ Ward 2 residential class mailed 8/13/2021.

Ward 3 residential class appointments will be scheduled for December 2021.

Task 300/400

On Track: Residential valuation is scheduled to commence in 2022.

On Track: Preliminary analysis in 2022.

On Track: Income and Expense forms are being sent out by the Assessor's Office

Task 500/600
On Track: Field review is scheduled to be completed in 2022.

Task 900
The Following Timetable is for the Hearing Phase of the Job Through Project's Completion:

On Track: |mpact notice mailing no later than July 2022.

On Track: Appointments are taken for hearings scheduled for July/August 2022.

On Track: Hearings are scheduled for July/August 2022.

On Track: Second Impact Notices mailed by August 2022.

Project Completed by September 2022

Manchester NH 2021 Revaluation Summary of Values Conclusions

Vision Government Solutions has completed a preliminary valuation of all the properties in Manchester
NH for their 2021 Revaluation. A complete review and analysis of all properties was performed. This
included the updating of all construction costs, land values and income and capitalization rates for the
commercial properties.

Once all the sales were qualified the first step was to adjust the land curve table to reflect a base year of
2021. This was done by raising the land curve 45%. The excess land price is $14,500. Once this was
accomplished the next step was to review the land Neighborhood table and make further adjustments
to lower the COD.

After the land values were adjusted the next step was to raise the base cost rates to reflect a median
sales value for all the different styles of homes to be at 100% based on M & S$ cost manual and local
building rates. This was accomplished by raising the current rates on average by approximately 55%.
The starting rate on average was at $100 per SF from 2016 and it was change to approximately $155 per
SF. The next step was to review other characteristics like building size, age, quality of construction rates
to make further defined changes.

These rates and value conclusions were tested against qualified sales that have occurred from 4/1/2020
to 7/16/2021 to ensure they are at market value.

Below is a breakdown of the old to new value change by land class and residential building style. Also
included are varies sales analysis studies by land class, style and sales date to indicate that the
assessments are at 100% of market value based on a comparison of recent sales data.

Old to New Review

Manchester as a whole increased 40% based on new construction and market changes.

Land Class Residential Stvle

Type of Property % Change Type of Style % Change
Single Family 46% Ranch 50%
Residential Condos 52% Split Level 48%

Two Family 64% Bungalows 56%
Three Family 61% Modern Contemporary 33%
Apartment 57% Colonial 41%
Vacant Land 41% Cape 48%
Commercial 14% Conventional 49%
Industrial 21% Raised Ranch 48%

Excluding Utilities Mobile Home 40%

Mixed Use 22% Modular Home 43%

Mobile Home 40%

Four to Eight Family 76%

Exempt 28%

Total 40%

Sales Analysis Summary
Residential Land Use Summary
4/1/2020- 7/16/2021
Group Summary by Land Use 9/1/2021
MANCHESTER, NH
Land Use @ Count Median A/SRatio COD PRD Median Sale Pre Median Appraised Mean Sale Price Mean Appraised — Mean A/S Ratio
1010, SINGLE FAM 1,004 10014 861. 1.0057 $311,250.00 $304,550.00 $328,459.02 $329,030.53 1.0044
1011, SFR W/ADU 6 10382 9.69 1.0091 $456,000.00 $489,450.00 $462,816.67 $490,333.33 1.0691
1012, SFRMFG/MODULAR = 10069 3.28 1.0006 $202,500.00 $203,900.00 $203,627.27 $202,018.18 0.9926
1013, SFR WATER 3 1.0043 11.37, 1.0544 $315,000.00 $351,500.00 -$373,42308 $354,200.00 1.0001
1020, CONDO MOL-05 498 0.9984 6.54 1.0062 $201,700.00 $201,750.00 $217,700.13 $217,853.61 1.0069
1031, TRAILER § 0.9932 9.12 1.0132 $65,950.00 $63,400.00 $55,037.50 $53,787.50 0.9902
1040, TWO FAMILY 235 1.0058 804 1.0073 $333,000.00 $335,200.00 $334,720.99 $338,925.11 1.0200
1050, THREE FAM MOL-01 101 0.9952 10.02 1.0122 $380,000.00 $387,000.00 $381,445.54 $380,674.26 1.0101
1300, VAC RES BL i 0.9288 17.45. 1.0672 $140,000.00 $116,100.00 $137,454.55 $114,487.00 0.8889
1320, VAC RES UB 1 W250002=~« $8,000.00 $9,000.00 $8,000.00 $9,000.00 1.1250
1,978 1.0002 8.15. 1.0064 $300,000.00 $298,600.00 $302,254.73 $302,332.38 1,0066