1. October 14, 20101 INTRODUCTION The purpose of this presentation is to give a brief overview of a lengthy and complex process. If you have questions or need more information, please contact the Assessing Office (see contact information on slide 15).

2. October 14, 20102 FY11 PUBLIC FORUM Board of Assessors FY2011

3. October 14, 20103 FY11 PUBLIC FORUM Board of Assessors MASS APPRAISAL PROCESS  Analyze prior calendar year’s “arm’s length” sales (2009 for FY2011)  Adjust factors in mass appraisal computer model so sale properties reflect market value  Apply updated factors to all properties; goal is full and fair market value as indicated by sales activity  Calculate Tax Rate(s)  Board of Selectmen decides tax policies & sets rates

4. October 14, 20104 FY11 PUBLIC FORUM Board of Assessors STATE REQUIREMENTS  Sales are stratified in several ways: class, neighborhoods, style, building and lot size, age, sale price, and sale date  ASR* median within 10% of 100% of full and fair market value  Within dispersion limits for various classes *Assessment to Sale Price Ratio

5. October 14, 20105 Assessment/ Classification Report TOTAL VALUE: $5,041,730,741 (FY11 PROPOSED)

6. October 14, 20106 FY11 PUBLIC FORUM Board of Assessors CALCULATING TAX RATE DETERMINE TAX LEVY (amount to be raised) Prior FY levy limit + 2-1/2% allowed increase + new growth + debt exclusion + override(s) Current FY Permitted Levy

7. October 14, 20107 FY11 PUBLIC FORUM Board of Assessors CALCULATING TAX RATE Levy (voted by town meeting) Total Property Valuation X 1,000 = Tax Rate FY10 $65,797,569 $5,026,552,229 X 1,000 = $13.09* FY11 (estimated) $66,525,315 $5,041,730,741 X 1,000 = $13.20 *Tax Rate if maximum levy limit used: $13.27 Tax Rate if at 2.5%: $25.00

8. October 14, 20108 FY11 PUBLIC FORUM Board of Assessors CALCULATING TAX RATE Levy (voted by town meeting) X 1,000 = Tax Rate Total Property Value CALCULATING YOUR TAX Bill Your Total Property Value X Tax Rate = Your Annual Tax 1,000 + CPA Surcharge

9. October 14, 20109 FY11 PUBLIC FORUM Board of Assessors CALENDAR FISCAL YEAR 2011 Jan. 1 Jun. 30 Jul. 1 Oct. 1 Jan. 1 Feb. 1 Apr. 1 Jun. 30 2010 2010 2011 2011 Assessment New Construction Abatement Date Assessment Date Application Calendar 2009 (deemed to exist Deadline Sales on January 1 st ) Date Liability Fixed FY11 1 st Qtr Preliminary Bill Issued FY11 3rd Qtr Actual Bill Issued

10. October 14, 201010 FY11 PUBLIC FORUM Board of Assessors CONCORD TRENDS  In FY2011 the total value of the town stays almost the same as FY10  Residential property owners’ share of total tax burden continues at 91%  State aid % of budget decreases FY10 to FY11 (.02%) (Total non-tax revenues stable)  FY10 to FY11 Total Budget increase: 1.3%

11. October 14, 201011 FY11 PUBLIC FORUM Board of Assessors CONCORD SALES  Median home sale price: 2007*$775,000 2008$720,000 2009$721,100  Median condo sale price: 2007$469,000 2008$370,000 2009$342,000 *calendar year

12. October 14, 201012 FY11 PUBLIC FORUM Board of Assessors CONCORD PROPOSED FY11 # Quali- Median fied Sales ASR* COD**  SFR 122.95 6.80  Condos26.95 3.84 *Assessment to Sales Ratio**Coefficient of Dispersion

13. October 14, 201013 FY11 PUBLIC FORUM Board of Assessors FY2011 ADJUSTMENTS  Median Market Area changed; Land Curve adjusted  Market Area Factors adjusted  Some minor shifts between areas  Site indices reviewed; rarely used  Excess land rate decreased; wetlands rate increased (most removed)  Building values relatively stable

14. October 14, 201014 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS

15. October 14, 201015 FY11 PUBLIC FORUM Board of Assessors CONTACTS 24 Court Lane (Sleepy Hollow) 8:30 a.m. to 4:30 p.m. (978) 318-3070 assessing@concordma.gov Concordma.gov (town departments: assessors) Visionappraisal.com

16. October 14, 201016 FY11 PUBLIC FORUM Board of Assessors APPENDIX Assessors’ Duties Definitions Sample Land Values FY10 to FY11 Site Indices/Condition Factors % Change Histograms Property Record Card CAMA Cost Formula/Table Factors Valuation versus Tax Bill

17. October 14, 201017 FY11 PUBLIC FORUM Board of Assessors ASSESSORS ’ DUTIES  For all physical property, real and personal 1. Inventory all property 2. ID legal owner 3. Value each property a. As of fixed date (January 1 st ) b. 100% of full and fair market value 4. Classify (R,C,I,O,S,E) 5. Calculate tax rate  Administer excise taxes, special assessments and betterments, delinquent municipal charges

18. October 14, 201018 FY11 PUBLIC FORUM Board of Assessors DEFINITIONS Arms Length Sale: market transaction between and willing and knowledgeable buyer and seller ASR (Assessment to Sale Ratio): ratio of the assessment divided by the sales price COD (Coefficient of Dispersion): measure of deviation of the ASRs from the median ASR DOR (Department of Revenue): branch of state government responsible for oversight of assessing operations. IYA (Interim Year Adjustment): Years in between revaluation years requiring only summary reports from a town in order to have the tax rate approved. Revaluation Year: a year-long process during which the DOR examines every aspect of an assessing operation before certifying property values.

19. October 14, 201019 FY11 PUBLIC FORUM Board of Assessors INTERIM YEAR  State requirement for all cities and towns to undergo revaluation every third year  Interim year adjustments in the two years in between keep property valuations in line with the market to follow annual fluctuations

20. October 14, 201020 FY11 PUBLIC FORUM Board of Assessors LAND VALUATION

21. October 14, 201021 FY11 PUBLIC FORUM Board of Assessors SITE INDICES/ CONDITION FACTORS SITE INDEX A factor in addition to Market Area factor to denote a variance in a group of properties from other surrounding properties Rarely used, but usually forms a pattern, such as an area within a market area that is more or less desirable. For example: highest point in a neighborhood or properties along a river. CONDITION FACTOR A factor in addition to Market Area and Site Index that is applied to an individual property for a condition that impacts the marketability of the property. Examples: abutting a railroad, easement that impairs access to or utility of the property Very rarely used. BOTH MUST BE USED CONSISTENTLY AND SUPPORTED BY SALES DATA

22. October 14, 201022 FY11 PUBLIC FORUM Board of Assessors FY10 TO FY11

23. October 14, 201023 FY11 PUBLIC FORUM Board of Assessors FY10 TO FY11

24. October 14, 201024 FY11 PUBLIC FORUM Board of Assessors FY10 TO FY11

25. October 14, 201025 FY11 PUBLIC FORUM Board of Assessors PROPERTY RECORD CARD

26. October 14, 201026 FY11 PUBLIC FORUM Board of Assessors PROPERTY RECORD CARD

27. October 14, 201027 FY11 PUBLIC FORUM Board of Assessors COST FORMULA  OUTPUT FROM STORED PROCEDURE  REPORT GENERATED ON 14-OCT-2010 AT 01:01  ***************Building #1 Calc Start*******************  Cost Calculation for pid, bid = 1443,1443  Account Number = 1443  Use Code = 1010  Cost Rate Group = SIN  Model ID: P01  Section #1  Base Rate: 117  Size Adjustment:.99675  Effective Area: 2887  Adjusted Base Rate = (117 + 0) *.99675  Adjusted Base Rate: 116.62  RCN = (((116.62 * 2887) + 12000) * 1.1) + 0  RCN: 383550  **************Base Rate Adjustments********************  FLOOR COVER 1 12 (Hardwood) = 2.34 + BaseRate  EXTERIOR WALL 1 25 (Vinyl Siding) = -2.34 + BaseRate  **************Flat Value Additions*********************  FULL BATHS = 10000 + RCN  HALF BATHS = 2000 + RCN  **************Factor Adjustments***********************  GRADE ADJUSTMENT 04 = 1.1 x RCN   Percent Good = 82  RCNLD: 314500  *******************************************************

28. October 14, 201028 FY11 PUBLIC FORUM Board of Assessors INTERPRETATION OF COST FORMULA

29. October 14, 201029 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS MARKET AREA FACTORS Proposed 2009 2010 2011 ASR # SALES 21Annursnac0.901.000.78.97 4 22Virginia Rd/Bedford St0.940.940.76.9415 23Old Marlboro/ORNAC1.051.050.90.9314 24Downtown/Author’s Ridge1.801.801.45.9719 25Strawberry Hill/Lowell Rd 1.051.251.01.97 9 26Monument St2.602.702.25.94 2 27Plainfield Rd/White Pond1.041.040.82.93 7 28So. of center/Nimrod/Adams1.281.281.00.9221 29Thoreau Hills0.800.900.73.96 7 30West Concord1.001.000.81.9716 31Nashawtuc Hill Area2.703.002.55.94 1 32Ea. of Center/Lower Monument2.502.502.02.93 4 33Mattison Farm/Garfield1.051.250.90 1.00 3

30. October 14, 201030 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS STYLES ASR# SALES 1Ranch.93 10 2Old Style.92 13 3Colonial.95 30 4Cape Cod.97 14 6Conventional.97 25 7Contemporary.96 17 8Raised Rnch/Split Lvl.92 7 60Century.91 6 55Condo.95 26

31. October 14, 201031 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS STYLES 200920102011 1Ranch$100$ 90$ 90 2Old Style 153 142 150 3Colonial 125 117 117 4Cape Cod 118 110 110 5Bungalow 105 80 85 6Conventional 143 140 140 7Contemporary 112 104 104 8Raised Ranch/Split Level 104 90 90 9Family Flat, 2-Family 135 130 130 103-Family 135 120 120 60Century 200 170 170 100Custom 200 170 170 55Condo 275 248 248

32. October 14, 201032 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS

33. October 14, 201033 FY11 PUBLIC FORUM Board of Assessors FACTOR ADJUSTMENTS DEPRECIATION Effective Base Year Changed to 2010 Maximum % Deducted Poor45 Fair35 Average30 Good25 Very Good20 Excellent10

34. October 14, 201034 FY11 PUBLIC FORUM Board of Assessors VALUATION vs. TAX BILL