Special Board of Aldermen 11-15-2021 Page 3
So once this is completed and the property's been valued, reviewed, and approved by the assessors for the preliminary
values, we'll be sending out valuation notices to all the people in the community so they'll have an opportunity to do an
informal hearing with our staff to go over the value, to go over the data, to answer any of their questions. We encourage
them to bring information that can help support any claims they have or just to enforce that we did a good job and to
check. So during this whole process it’s informal to work with the taxpayers to explain the information and make sure
that we get the information and values added. Again, we feel that the taxpayers are part of the evaluation process and
we can bring a lot of added information (inaudible). So once this is finalized, we'll send a notice out if there was a
change in their property or there wasn't a change if they went to a hearing and sometimes when we make changes, it
might be people that met before a hearing that might have an adjustment. Also if we're looking at, say, a condo complex
or a neighborhood and we find that adjustment needs to be done (inaudible). And then once this is complete, the
taxpayer has the ability for further appeals, if necessary, with the assessor (inaudible).
Alderwoman Lu
Excuse me. Could we ask him to speak louder?
President Wilshire
Sure. Mr. Tarello could you speak a little louder?
Mike Tarello, Vice President
Sure.
President Wilshire
Thank you so much, appreciate it.
Mike Tarello, Vice President
Okay. So that's basically the process that we do for the revaluation.
Richard Vincent, Chief Assessor
Thank you, Mike.
Mike Tarello, Vice President
Sure.
Richard Vincent, Chief Assessor
So the next presentation is the report of real estate market trends. This is the report that | had mentioned earlier. This is
a report that | did back in September of this year. | looked at sales from October 1° of 2020 to July 7" of 2021. That was
one report that | ran. The other report was from April 18 of 2021 to July 7", so | included all the valid sales in those two
time periods. What | found was on the second page of this report, | compared my findings and | broke the findings down
into several categories. The first category, the first role is all sales. That's every type of sale that was in the study.
That's residential properties, commercial properties, vacant land, and industrial properties. So what | found was in the
October 1 study, the study that started on October 1* of 2020 from that time period October 1 to July 7", on the mean
ratio - I'll back up explain a little bit how we come up with these ratios. So the last revaluation was in 2018. The
valuation date is April 1s. So the last revaluation that we did was April 1%! of 2018. That reflects the value goes up as of
that date. What happens in the meantime is the market values can change and they can go up. They can go down.
They can stay stable. So what we do is we look at the sale prices that occur after that date and compare the sale prices
to the assessed values. Once we set that April 2018 value for assessment purposes, we hold that value at the 2018
rates.
In the meantime as | said, the market is fluctuating. So we want to compare — so what I’m doing in these reports is I'm
comparing the sales that occurred after October 1 of 2020 to the 2018 assessments and that's what the ratio is. So on
this first ratio it’s 77%. That's the mean ratio for October 1*!2020. That tells us that the assessments are 77% of market
value. So the property values have increased roughly 23% since April of 2018. Compare that to the April 2021 study
and that ratio was 72%. So it's a 5% change. That's telling us that property values went up between the two studies was
