Franklin Lakes August 18, 2010 THE VILLADOM TIMES I • Page 3 Council adopts ordinance authorizing reassessment by Frank J. McMahon The Franklin Lakes Borough Council has adopted an ordinance that authorizes a special emergency appropriation of $80,000 to hire Appraisal Systems, Inc. of Glen Rock to conduct a borough wide reassessment program to update and make current the previous revaluation conducted in 2007. The reassessment program is intended to bring the borough’s assessed property values more in line with their real market values and thereby reduce the number of tax appeals that are being filed by residents who feel their properties are over assessed in the current housing market. The emergency appropriation or notes to finance the appropriation will be provided for by including at least one fifth of the appropriated amount in succeeding annual budgets. A contract has been awarded to Appraisal Systems to conduct the reappraisal services with the exception of holding informal hearings and providing the defense of tax appeals based on the recommendation of Michael Leposky, the tax assessor. In a July letter to Borough Administrator Gary Hart, Leposky stated that the driving reason behind his recommendation to the governing body to conduct a reassessment program is the continuing decline in property values, which has made Bergen County extremely vulnerable to tax appeal litigation. In his letter, he advised that there were 194 county tax appeals in 2010 with an estimated tax dollar impact of minus $300,000, versus 85 in 2009 with a tax dollar impact of minus $294,455, and 88 state tax appeals in 2010 with an estimated tax dollar impact of minus $100,000 versus 62 in 2009 with a tax dollar impact of minus $69,299. Leposky described this trend in tax appeals as “very alarming” as it might pertain to fiscal planning for 2011. According to Leposky, the average sale price since 2008, when there were 58 usable sales, has declined from $1,528,169 with an average assessed value of $1,601,588 to $1,022,326 with an average assessed value of $1,110,065 in 2010 when there have been 23 usable sales in the first six months of the year. “Clearly, with such a small volume of sales for the current six month period we are in,” Leposky stated, “it would be impossible to accurately forecast property values on an overall town-wide basis.” He said a further decline in property values is likely. Leposky pointed out that the amount of tax dollar loss for 2010 for both county and state tax appeals is in excess of what an entire reassessment would cost the municipality. “Complicating matters when an increase in appeals is occurring and continues to be forecast for at least the upcoming tax year, is the fact that the uniformity of assessments has been disturbed,” Leposky said. “Now, just as many people appeal their assessment based on a friend or neighbor getting an appeal-related assessment reduction as those who appeal based strictly on the market value as determined by comparable sales. “Nothing bothers a taxpayer more than finding out their assessment is higher than a neighbor with a similar property. As more and more assessment reductions occur through the appeal process, the disparity in assessment uniformity continues to grow proportionately with it. Unfortunately, this becomes a very negative cycle that is only broken when the municipality undergoes a complete overhaul of the assessment either through a revaluation or a reassessment.” According to Leposky, a reassessment could conceivably be conducted and completed for implementation in the 2011 tax year. He recommended Appraisal Systems because that was the firm that conducted the last revaluation in the borough, and they have access to all the appropriate data regarding the municipality, and firsthand experience in valuing all properties throughout the borough. ��������������� ����������������������������������������������������������������������� The Franklin Lakes Branch of the Valley Hospital Auxiliary is seeking vendors for its Nov. 17 pre-holiday shopping/brunch extravaganza. The event will be held Vendors sought for Valley benefit ������������������������� ������������������������� ����������������������������� from 10 a.m. to 2 p.m. at the Indian Trail Club in Franklin Lakes. A large turnout is expected. For more information, call Christine Ordway at (201) 337-1928. ������������������������� ��������������������������������������������������� ������������������������������������������������������� ������������������������������������������������������������������������� ������������������������������������������ �������������������������������������� ������������ ��������������������������� ����������������������