Special Bd. of Aldermen — 02/27/2017 Page 6
Alderman Tencza
Thank you. So the last time the full measure and list was done in 1991/1992 but if | remember correctly you
were Mayor at that time as well.
Mayor Donchess
It was implemented after | left office.
Alderman Tencza
Okay. So what has been the method that the city has used since then and has it had an effect on what the
assessed values are today?
Mayor Donchess
Well | haven’t been involved but | think just kind of an in house statistical update. | don’t think people were
facing this situation where we’ve seen a rapid escalation of residential values. One thing | should have
mentioned, we’re not alone here. Portsmouth has been going through the same thing. Portsmouth did a re-
evaluation in 2015. They did one in 2010. They did one in 2015 and for whatever reason, | don’t think we
would do this but residential values went up so rapidly between 2015 and 2017 even though they were still
three years away from a required re-evaluation, they did another one and two years later in 2017 because
residential values had already climbed so much in those two years they wanted to do it again which they did.
In each case, it shifted property taxes onto residential property owners. You know what the porch of the
market is like, it’s rapidly escalating. | don’t think ours have gone up quite as much as that but it’s kind of the
same. A similar situation.
Alderman Klee
Thank you. | hate to ask this question but will this have an effect on the TIFF going forward with anything like
that?
Mayor Donchess
No. | would say no but we could talk about that in the context of the TIFF. Why don’t we turn it over to KRT to
introduce themselves and talk through more of the details of what will take place.
Ken Rodgers
Good evening. My name is Ken Rodgers. I’m the President of KRT and with me tonight is Rob Tozier the
Vice-President. We're the principal owners of the company. We have a combined 45 years of appraisal
experience. We brought over 150 projects. We've done communities from 1,000 parcels up to 38,000 parcels.
What we'd like to talk about first would be the standards of a statistical revaluation. The purpose of a statistical
revaluation is to obtain assessment equity between the different classes of property. Like every other
community in the State of New Hampshire, we use an April 1° date of assessment. We're looking at an
assessment date of April 1, 2018. We'll be analyzing sales from April 1° of 2017 to March 31, 2018. We have
to have a median assessment ratio between 90 percent and 110 percent. Coefficient of dispersion must be
less than 20 which we'll talk about that in a few minutes. The price related differential must be between 98 and
103.
As the Mayor stated, we use 3 approaches to value. We use the market approach which is looking at sales.
We use the cost approach which we'll look at the cost to build, look at depreciation, and if you look at land
sales and what we call land residuals. We look at the income approach so we'll get rents back, expenses, and
