Board Of Aldermen

Board of Aldermen

City of Nashua
229 Main Street Brian S. McCarthy
Nashua, NH 03061-2019 President, Board of Aldermen

(603) 589-3030

February 23, 2018

Patricia D. Piecuch, City Clerk
City of Nashua

229 Main Street

Nashua, NH 03061-2019
Dear Ms. Piecuch:

Please be advised | am hereby calling a Special Meeting of the Board of Aldermen for Thursday,
March 1, 2018, at 7:00 p.m. in the City Hall Auditorium, for a discussion on assessment updates.

Thank you.

Sincerely,

SPECIAL BOARD OF ALDERMEN
MARCH 1, 2018

7:00 PM
PRESIDENT BRIAN S. MCCARTHY CALLS ASSEMBLY TO ORDER
PRAYER OFFERED BY CITY CLERK PATRICIA D. PIECUCH
PLEDGE TO THE FLAG LED BY ALDERMAN PATRICIA KLEE
ROLL CALL
COMMUNICATIONS

From: Brian S. McCarthy, President, Board of Aldermen
Re: Special Board of Aldermen Meeting

ADJOURNMENT

City Hall Auditorium

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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Appraisal Company

KRT Appraisal, Haverhill Massachusetts
Ken Rodgers, CMA, President
Rob Tozier, CMA, Vice President

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