Council 'Disappointed' with Sole Reassessment Bidder
The only company to bid is the same one council members blame for supposedly botching Moorestown's 2007 revaluation.
Members of township council hesitated Monday after learning the only company to bid for the township’s reassessment was the same firm they believe botched the last revaluation.
Township tax assessor Dennis DeKlerk sent out requests for proposal (RFP) at the end of March and got just one bid back: Appraisal Systems Inc. (ASI), for $195,080.
ASI performed the 2007 revaluation, which according to some members of council resulted in a multitude of errors, which in turn contributed to an avalanche of appeals that have led to $3 million in lost tax revenue over the last four years.
“I’m disappointed we only got one response and it’s the vendor who did the last reassessment—and we all know how well that turned out,” said Deputy Mayor Greg Gallo.
DeKlerk and financial officer Tom Merchel said the primary source of the problems that followed the earlier revaluation was the market crash, which occurred just after ASI finished the job, and believe too much blame is being placed on the firm.
DeKlerk said council’s feelings are natural—the first reaction in situations like this is to “lay it at the foot of the contractor,” he said. But “in this case, the real culprit is the market crashing … Working (as a tax assessor) for other towns, I know this to be the case.”
But Mayor John Button, who along with Gallo and Councilman Mike Testa was serving on council when the appeals started pouring in in 2008, said while there’s “no question” the tanking economy is partly to blame, it doesn’t account for all the problems.
“One of the strong issues were the inequities (in value) among similar homes in similar neighborhoods,” Button said. “That doesn’t have anything to do with the economy.”
Merchel and DeKlerk explained, due to the volatile nature of the housing market, reassessment firms like ASI are in high demand right now, which is why they were the only company to bid.
“The pickings are slim,” said DeKlerk.
According to ASI's website, the company has either completed or is in the process of completing more than 40 revaluations in 10 counties across the state.
So whether they like it or not, council may be stuck with ASI, unless they want to rebid the project. Hoping to avoid such a delay, council plans to bring in ASI for a presentation so the company can soothe their concerns before a contract is inked.
“We want ASI to come in and talk to us … and tell us why we should have confidence in them doing this assessment again when the results of the last one were so incredibly difficult for the town,” said the mayor.
DeKlerk included a number of provisions in the RFP to mitigate potential problems, which include requiring reassessors to make data updates in the field using portable electronic devices to cut down on the risk of data entry errors and a “real-time link” between the firm’s computers and the assessment office’s computers.
Council will hold a special meeting, before their next regular meeting, to further discuss the matter, Button said.
During that same meeting, council will also continue its discussion of the field improvements project.
Get It Together
4:16 pm on Monday, May 14, 2012
This is very frustrating.. Reval again?
These five on council campaigned on fixing up or rebuilding town hall and the library. That is the main issue in town! Two years ago a man came to my door in the summer and we told him to fix up town hall and the library. That man was right thematic and now the town hall square is what the people want done.
Now reading here it seems fixing kids athletic fields are more important? Huh? how did that become more of an issue ?
Build a more realistic, cost saving town hall and police/ court next to it. And yes at this point fix the library not destroy it.
If you want to fix the fields for kids to a little at a time.
Get it done!
and not out town hall square?
Tax Playa
9:08 am on Wednesday, May 2, 2012
I can save the township $195,000, just take the initial home valuesfrom the last revaluation and reduce each value 35 percent.
What we really care about is that each property is valued correctly Relative to each other.
The real estate market is crashing and some keep talking about spending $27-$30 million with financing to build a building for a handful of employees that is only open 5 days a week less something like 20 paid holidays. If my house is worth less and my taxes are going up for town hall, how is this going to help housing values?
Townie
11:18 am on Wednesday, May 2, 2012
TP,
Your insight about value and reductions is 100% correct, but has one significant problem....the starting point. The reality of "appraisals" is that they are completely bogus. ASI was mostly guessing, and uses very generic formulas that are manually overridden to come up with their best guess. That's all it is. To prove my point, I picked a month at random that would show some sort of value decline against the 2007 assessments. I decided to use January 2009.
Here are the "real" sales in the month. I eliminated the $1 family transfers, land sales, and builders.
The list is Sales Price / Ratio (Assessment % of sales price) / and Assessed value.
609900 / 83.06 / 506600
290000 / 155.14 / 418900
205000 / 154.54 / 316800
268000 / 109.63 / 293800
140923 / 305.7 / 430800
150000 / 411.4 / 617100
310000 / 354.84 / 288000
850000 / 101.76 / 865000
344900 / 95.42 / 329100
824000 / 90.45 / 745300
The ones at 300+ % probably have overriding circumstances...but that's sorta the point. Based on this list, 5 houses sold for more in 2009 than they were assessed at in 2007. That's not possible. The valuations were wrong.
RE values are now too complicated to be a reasonable basis for tax...but noone (in power) wants to admit it. DeKlerk and all assessors know it's a problem, but can't fix it.
Finally, don't forget this all has to tie into county and state tables. That's even more of joke.
frank gilanelli
9:54 am on Wednesday, May 2, 2012
Am I the only person who wants to know why only one company responded to the RFP?
Rob Scott
10:07 am on Wednesday, May 2, 2012
Frank,
If you read the story closely, I answer that question.
"Merchel and DeKlerk explained, due to the volatile nature of the housing market, reassessment firms like ASI are in high demand right now, which is why they were the only company to bid."
According to Merchel and DeKlerk, all the other agencies that would have bid are apparently booked up, as reassessment is a trendy thing these days.