Special Bd. of Aldermen — 02/27/2017 Page 3
These are the folks that the normal means of the criminal justice system hasn’t worked for them. They have
been on probation. They have gone through the system, they have been incarcerated and it is still not
working. The difference between drug court and regular probation is this idea of judicial supervision.
Special Bd. of Aldermen — 02/27/2017 Page 2
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
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 ?
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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
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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
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)
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.
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Approaches to Value
Market Approach (Analysis of Sales)
Cost Approach (Building Value + Land Value)
Income Approach (Commercial/Industrial)
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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
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