AgdaPkt 2002-12-09 - Laserfiche WebLink

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�. �1-Z City Council members by virtue of their office also serve as members of the Board of Equalization. The Director of Finance and Financial Planning, acting as the District Assessor, contracted with Charles Warren, ASA, to appraise the properties in the assessment district. Mr. , Warren derives the assessed valuations using the statistical mass appraisal method as developed by the Califomia State Board of Equalization. The appraisal of market value is predicated on valuation of property at its highest and best use. The methodology for commercial and apartment properties emphasizes the income approach. Mr. Warren surveys actual rental income and operating costs in the district and uses available statistical sources to derive estimated income for each property. This is then used to establish the assessed values. For residential properties, Mr. Warren relies heavily on the sales comparison approach, interpreted statistically using multiple regression analysis. Adjustments are made for location, water orientation, overall desirability and the quality and desirability of the projects compared to each other. Land is valued as though available for development to its highest and best use. Similar land sales are investigated and comparative analysis is made. The cost to bring raw land to a buildable state is taken into consideration. New construction is appraised using cost or market depending on the stage of completion. Current Year Actions: On July 15, 2002, the Council, sitting as the Board of Equalization, accepted the assessment roll for the General Improvement District No. 1-64. After the acceptance, the property owners have the right to appeal the assessment; they must provide the District Assessor with evidence that supports a different assessed value for their property. The assessed value of property for the purpose of debt service is based on 25% of current market value as of January 1, 2a02. Appeals: There were 4,324 parcels appraised and approximately 500 parcels inspected. One property owner filed an appeal. The Distric' :�praiser, Mr. Warren, has investigated the appeal and has agreed that the appeal has r � a com�romise �aluation was reached and accepted as proposed. A stipulation as tc - reduced appraised values has been received. If the Board of Equalization approves the changes in value, an explanatory letter will be sent to the property owner, and the County Assessor will issue a corrected tax bill. Alternatives The Board can (1) deny the appeal; (2) accept the values proposed by the appellant; and/or accept the compromise values recommended by the appraiser. Fiscal Impact Should the Board accept the recommendation of staff, the reduction in appraised values will result in a decrease in GID 1-64 property tax revenue of approximately $15.30 (negligible as a percentage of total revenue).