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Special Bd. of Aldermen — 11/26/2018 Page 23

| will say that number one | appreciate the fact that you said that people in the assessing department have been
very patient. But | think you people also have to realize that Nashua residents have been very patient. I’ve only
lived here 5 years and have never ever gotten involved in this until | got my last bill. And then I’m looking over
things and saying you know I’m coming to a meeting about this audit and | have to tell you, I’m very
disappointed because it is not what | thought the audit would be about. Because | think we all knew the Chief
Assessor was very rude because | called him once and he told me that if | didn’t like the way Nashua did things,
| should move. | am now reviewing what is on the web site and | have to be honest, most of it, you go from one
portal to another portal, you are missing blocks and everything else, | am finding whole streets that have
absolutely no land value. That to me is a problem. And more importantly I’m going over now, | just took my
block and my block, just the land ranges from $5.37 to $9.37. That’s a problem to me. Why am | paying more
money than the guy 3 houses down from me for the same piece of land? | assume that this audit was going to
look at the problems within the Assessing Department as far as the garbage that they have on the web site.
And | am a little upset about it because | even looked around and believe it or not, Sky Meadow is paying .19
cents a square foot and I’m paying $8.66 and | want to know why? And if you look around there is a street, Bud
Way near the airport, no one is paying any land on it.

So you people are letting the residents of Nashua pay for all these other firms to be here and not pay any land?
| think that is totally unacceptable. | will be getting letters out tomorrow, | have 5 streets that do not have any
land assessment on. The one over on Bud Way, $5,500,000.00 to buy that piece of land and they are not
paying any taxes. What is it? But 1 expected you people to look more at the garbage that was on the web site
and to find out why, on a short block, our property, our square foot is going from $5.00 to $9.00. I’m sorry if |
sound mad but I’m looking over these numbers and | am a novice at this. | have never been involved in real
estate, you know, | got my bills, | paid them. But I’m looking at some of this stuff and | can’t believe it. And | am
getting into now the depreciation. You know from 2005 to 2018 we should all have the same depreciation,
whether it is 10%, 15% or 30%. I’ve looked at like 6 properties, somebody is 35, somebody is 20, somebody is
6, somebody 4. There is something wrong here. | mean aren’t we all supposed to be treated fairly and at the
same rates? I’m sorry guys but that’s how | feel. | am very upset because | just can’t believe — we all knew, |
mean you had to be a moron not to know that there was a problem in the Assessing Department, OK?

My listing said complete reno they forgot to say it was complete reno with used equipment but if | had an
inspector there maybe | wouldn’t have had to block off my basement for 4 years and not go down there because
of the gas leak. But Nashua failed me because they got a permit on the house but nobody checked anything
and | spent the next 4 years correcting wiring and everything else just to get it up to standard. Sorry.

President Wilshire

Anyone else who is here to speak this evening? Ok seeing no one, do | have motion?

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at 9:00 p.m.

Attest: Patricia Piecuch, City Clerk

Management Audit Report

for the Assessing Department
City of Nashua
March 1, 2019

Prepared by:
John Griffin, Chief Financial Officer
Kimberly Kleiner, Chief of Staff

TABLE OF CONTENTS

Executive Summary

Chapter 1: Objectives, Scope, Methodology of the Audit

Chapter 2: Profiles of the Organization, Analysis of the

Organization Structure and Function

Chapter 3: Observations and Opinions

Chapter 4: Conclusions and Major Recommendations

Appendix

Executive Summary

This is a final report on a Management Audit of the Assessing Department within the City of
Nashua. This study was commissioned by Mayor Jim Donchess and was conducted from
November 2018 through February 2019 by Chief Financial Officer John Griffin and Chief of
Staff Kim Kleiner.

Specificatly, Mayor Donchess directed the:

° Review of written and unwritten policies and procedures which are in effect in the
Assessing Department and recommend any new or different policies and/or procedures which
should be adopted and/or put into operation.

° Review and evaluation of the policies, practices and procedures related to the
management of the Assessing Department and recommend improvements and changes.

° Review of the organizational structure and the staffing of the Assessing Department and
make any reorganization or restructuring recommendations which would benefit the
operations of the Assessing Department in particular and the City of Nashua as a whole.

Note: This audit was not intended to review the practices or procedures used by KRT
Appraisal, an independent contractor, who was responsible for performing the city’s most
recent Revaluation project. KRT Appraisal followed specific New Hampshire Department of
Revenue Administration, Municipal and Property Division rules and procedures to conduct the
Revaluation. Due to concerns regarding the efficiency and capacity of the internal assessing
department in early spring of 2018, the decision was made to recommend the hiring of an
experienced appraisal consultant to the Board of Aldermen.

The major findings of the management audit are:

1} Ineffective management of the Assessing Department

2) Lack of internal policies to guide operations

3) Disparate software systems utilized by the department are not optimized

4) A full measure and list of all properties within the City has not been conducted since the
early 1990s

Objectives, Scope, Methodology of the Audit

The scope of the Management Audit included the review of written and unwritten policies and
procedures; review and evaluation of the policies, practices and procedures related to the
management of the Assessing Department; and review of the organizational structure and the
staffing of the Assessing Department. The Management Audit was not intended to review
individual property cards and assessments, The statutory abatement rules and regulations
guide that process.

In conducting the audit, one on one meetings were held with all of the members of the
Assessing Department staff. The assessing calendar, internal procedures, various reports, and
internal and external software applications were also reviewed. The audit did include the
observation of updating AssessPRO records, review of various data contained within the
system and some practices used by assessing staff.

Meetings and consultations were also held with the principals of KRT Appraisal, Patriot
Properties and CDMSmith. KRT Appraisal most recently conducted the Revaluation. Patriot
Properties is the company that developed, installed and maintains AssessPRO, the Computer
Assisted Mass Appraisal (CAMA) system that contains all of the property records for the City.
CDMSmith has assisted the City of Nashua in the development of its GIS operations for over
two decades.

Profiles of the Organization, Analysis of the

Organizational Structure and Function

Analysis Approach:

The organizational analysis focuses on the functional effectiveness of the assessing
department’s office and management structure.

Several documents were reviewed for this analysis, including:
Department-level organizational chart (Appendix 1)
Organizational assessments completed by State DRA
Policies and administrative regulations
Department operational procedures
Job descriptions of all positions
Board of Assessor meeting minutes, agendas, and Board packets
Budget information
Interviews with all departmental staff (Appendix 2)

Consultation with Information Technology Staff

Consultation with Patriot Systems, KRT Appraisals and COMSmith

Departmental Functions as defined in city job descriptions:
Chief Assessor

Directs and participates in all activities related to the assessment of all property in the City. The incumbent
directs four appraisers and four technical clerical staff to provide assessment/appraisal services, exemption
and credit qualification, constituent services and public relations in the highest quality manner for the City.
This individual is also responsible for establishing and administering customer-responsive, cost effective and
high quality assessment standards and procedures that meet all applicable legal requirements.

e Accomplishes assessing staff results by communicating job expectations; planning, monitoring, and
appraising job results; coaching, counseling, and disciplining employees; initiating, coordinating, and
enforcing systems, policies, and procedures.

sen THE CITY OF NASHUA “The Gate City’

FPinanetal Servicer

Purchasing Department

March 31, 2016
Memo #16-126

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: 2016 SEWER PROGRAM (VALUE: $1,10B,975)
DEPARTMENT: 169 WASTEWATER; FUND: WASTEWATER
ACTIVITY: SEWER REHAB
DEPARTMENT: 169 WASTEWATER; FUND: WASTEWATER
ACTIVITY: SEWER STRUCTURES

Please see the attached communication from Steven Dookran, P.E., City Engineer, dated March 24, 2016
for information related to this purchase.

Pursuant to § 5-78 Major purchases (greater than $10,000) A. All supplies and contractual services,
except as otherwise provided herein, when the estimated cost thereof shall exceed $10,000 shall be
purchased by formal, written contract from the lowest responsible bidder, after due notice inviting bids.
Several of the néighborhcod streets are very narrow and many underground conflicts are expected.
Therefore, a contingency of $50,000 or approximately 5% is included in this award to be used on an as
needed basis for unforeseen circumstances.

The City Engineer, Board of Public Works (March 24, 2016) and the Purchasing Department recommend
the award of this contract to Park Construction Corporation of Fitzwilliam, NH in an amount of
$1,108,975.

Respectfully,

Dan Kooken
Purchasing Manager

Cc: § Dookran L Fauteux

229 Main Street « Nashua, New Hampshire 03061 ¢ Phone (603) 589-3330 « Fax (603) 589-3344

e Maintains staff by recruiting, selecting, orienting, and training employees; maintaining a safe and
secure work environment; developing personal growth opportunities.

e Maintains organization's effectiveness and efficiency by defining, detivering, and supporting strategic
plans for implementing best practices in assessing.

e Directs staff in the measuring, listing and valuation of property to maintain $8.5 B assessment roll.

« Promotes transparency in assessment practices and directs outreach and public information program
to educate the public and elected officials.

« Educates staff in the procedures and policies necessary to conform with state law as it pertains to the
assessment of property and application of exemptions and credits.

e Directs appeals and litigation for the local and state level abatement process.

e Recommends assessing strategies, policies, and procedures by evaluating organization outcomes;
identifying problems; evaluating trends; anticipating requirements.

e Accomplishes financial objectives by forecasting requirements; preparing an annual budget; scheduling
expenditures; analyzing variances; initiating corrective action.

e Maintains quality service by establishing and enforcing organization standards.

e Maintains professional and technical knowledge by attending educational workshops; reviewing
professional publications; establishing personal networks; benchmarking state-of-the-art practices;
participating in professional societies.

e Contributes to team effort by accomplishing related results as needed.

Assessor lil

e Field Work: Organizes information based on building permit activity and assignments from Chief
Assessor and Deputy Manager/Appraiser IV. Assists Chief Assessor/GIS Manager and Deputy
Manager/Appraiser IV in supervising data verification of all City properties.

e Assists in training of Appraisers and Data Collector.

e Drives to subject sites; draws detailed sketches and calculates square footage of property
improvements; performs interior inspections; records list of pertinent structural characteristics;
evaluates quality and condition of subject properties; determines models, styles, story heights,
records visit history, performs site inspections and evaluation of new lots and subdivisions.
Properties inspected include new construction, building permits, and current transfers.

¢ Valuation of Real Property: Calculates property values utilizing appraisal software; analyzes
market influence to surrounding neighborhoods of environmentally sensitive or impacted sites.
Estimates value utilizing income approach and mass appraisal techniques. Correlates value estimates
into logical conclusion and presents in orderly fashion utilizing ADMINS appraisal software and other
computer applications.

e Conducts research to include but is not limited to: Registry of Deeds, banks, brokers, buyers, sellers,
MLS, appraisers, etc. to establish ownership histories and determine validity of “arm’s length"
transactions.

Interviews taxpayers to determine condition of property at time of sale. Analyzes income statements
to determine trends in market and validity of reported income. Defines problem areas if inequitable
taxation; suggests corrective measures; implements corrective measures.

Abatements and Appraisals: Processes requests for abatement of taxes; researches and
evaluates concerns submitted by taxpayers; makes recommendations tothe Chief Assessor
Manager and the Board of Assessors whether or not to abate taxes based on complaints of
inaccurate measure and/or listing. Reviews comparable. sales, equitable valuation of similar
properties, appraisals, cost factors, and other pertinent valuation data. Appraises property as
necessary for defense of assessment (appraisals require thorough understanding of sales, cost and
income approach to value). Prepares and presents cases for Board of Tax and Land Appeals. Interfaces
with Chief Assessor/Administrative Specialist IIl/CSR, Legal/Planning/ Building/IT Division,
Taxpayers, Attorneys, Appraisers, Tax Representatives, Public:

« Answers questions; composes written correspondence; provides information regarding real
property; interprets property record cards; arranges appointments; collects and organizes
submitted data; answers telephone inquiries; reports to and updates Deputy Manager/Appraiser IV
on status of all projects.

e Prepares preliminary value estimates for internal planning purposes of the administration.

Appraiser Il

Performs assessment and appraisal of real property in accordance with pertinent legislation, code,
and ordinances.

Field Work: Organizes information based on building permit activity and assignments from Chief
Assessor/GIS Manager and the Deputy Manager/Appraiser IV. Assists Chief Assessor/GIS Manager and
the Deputy Manager/Appraiser IV in supervising data verification of all City properties.

Assists in training of Appraiser | and Data Collectors.

Drives to subject sites; draws detailed sketch and calculates square footage of property
improvements; performs interior inspections; records list of pertinent structural characteristics;
evaluates quality and condition of subject properties; determines models, styles, story heights,
records visit history, performs site inspections and evaluation of new lots and subdivisions.
Properties inspected include new construction, building permits, and current transfers.

Valuation of Property: Calculates property values utilizing computer software. Reviews base rates
and other cost factors used to maintain equitable assessments of properties; analyzes market
influence to surrounding neighborhoods of environmentally sensitive or impacted sites. Research:
Research includes but is not limited to: Registry of Deeds, banks, brokers, buyers, sellers, MLS,
appraisers, etc. to establish ownership histories and determine validity of "arm’s length" transactions;
interviews taxpayers at site to determine condition of property at time of sale; defines problem
areas of inequitable taxation; determines/suggests corrective measures; audits equitable
assessments through statistical testing and mathematical computations using ADMINS, spreadsheet
applications and other calculating devices.

Abatements and Appraisals: Processes requests for abatement of taxes; research and evaluates
concerns submitted by taxpayers; makes recommendations to the Chief Assessor/GIS Manager and the
Board of Assessors whether or not to abate taxes based on complaints of inaccurate measure and/or
listing. Reviews comparable sales, equitable valuation of similar properties, appraisals, cost factors

7

and other pertinent valuation data. Appraises property as necessary for defense of assessment
(appraisals require thorough understanding of sales, cost and income approach to value).
Prepares and present cases for Board of Tax and Land Appeals. interfaces with Deputy
Manager/Appraiser |V and Chief Assessor/GIS Manager, Assessing Administrative Specialist III/CSR
Legal/Planning/ Building/IT Division, Taxpayers, Attorneys, Appraisers, Tax Representatives, Public:
Answers questions; composes written correspondence; provides information regarding real
property; interprets property record cards; arrange appointments; collect and organizes submitted
data; answer telephone inquiries; report to and update Chief Assessor/GIS Manager on status of
all projects.

Assists in preparation of proper forms for filing of taxpayer exemptions.

Assessment Processing: Analyzes subdivisions and combinations for resulting assessment
Change, processes religious and charitable exemptions, processes current use applications and
change of use penalties.

-

Appraiser |

s

Responsible for assessment and appraisal of real property in accordance with pertinent legislation,
codes, and ordinances.

Field Work - Measure and List: Drives to subject sites; draws detailed sketch and calculates
square footage of property improvements; performs interior inspections; records list of
pertinent structural characteristics; evaluates quality and condition of subject properties;
determines models, styles, story heights, records visit history, performs site inspections and
evaluation of new lots and subdivisions. Properties inspected include new construction, building
permits, and current transfers.

Valuation of Real Property: Calculates property values utilizing VMS-ADMINS and City computer
software. Performs data entry of property factors. Updates of assessments due to property changes.
Research and Ratio Studies: Research includes but is not limited to: Registry of Deeds, banks,
brokers, buyers, sellers, MLS, appraisers, etc. to establish ownership histories and determine validity of
“arm’s length" transactions; interviews taxpayers at site to determine condition of property at time
of sale; defines problem areas of inequitable taxation.

Abatements and Appraisals: Processes requests for abatement of taxes; research and evaluates
concerns submitted by taxpayers; makes recommendations to the Chief Assessor/GIS Manager and
the Board of Assessors whether or not to abate taxes based on complaints of inaccurate measure
and/or listing. Reviews comparable sales, equitable valuation of similar properties, appraisals, cost
factors and other pertinent valuation data. Appraises property as necessary for defense of
assessment (appraisals require thorough understanding of sales, cost and income approach to
value).

Interfaces with Deputy Manager/Appraiser IV and Chief Assessor/GIS Manager, Assessing
Administrative Specialist III/CSR, Legal/Planning/ Building/IT Division, Taxpayers, Attorneys,
Appraisers, Tax Representatives, and the Public.

Answers questions; composes written correspondence; provides information regarding real
Property; interprets property record cards; arranges appointments; collects and organizes
submitted data; answers telephone inquiries; reports to and updates Chief Assessor on status of all
projects.