City opts to repeat reassessment

City opts to repeat reassessment
High volume of appeals of '07 valuations cited
BY KENNY WALTER Staff Writer
The Long Branch City Council approved an ordinance last week that will pave the way for a complete reassessment of the city's properties.

At the July 14 meeting, the council voted 4-0 to authorize special emergency appropriations for the assessment. The appropriations will cost the city $375,000. Councilman Anthony Giordano was absent for the vote.

According to Finance Director Ron Mehlhorn, a request for proposals (RFP) would go out within 10 days of the meeting for a firm to carry out the reassessment, and city Tax Assessor John Butow will be in charge of the process.

According to Butow, the proposals will be opened on July 31 and a contract will be awarded sometime in August

Butow sent an email last week that explained among other things what his role is going to be in the assessment.

"I will be overseeing the project, reporting to the city administrator and the Monmouth County Board of Taxation," he said.

He also said that it was ultimately the county's decision to move forward with the assessment.

"The city spoke to the Monmouth County Board of Taxation regarding the state of the real estate market in Long Branch," Butow said. "After considering the facts, they ordered the city to move forward with a reassessment."

City Attorney James Aaron explained what the city is looking to accomplish with the reassessment.

"The goal is to reduce the number of tax appeals," he said at the meeting.

According to Butow, there have been 400 tax appeals filed by residents at the county level this year. The last day for hearings is July 31, and the city will have word on the judgments sometime in August or September.

According to Aaron, the reassessment will be complete within the calendar year.

Aaron also said that with the poor housing market, other municipalities are taking similar measures to limit tax appeals and costs.

"Since the number of tax appeals are based on the assessed value of the property, by doing this reassessment now, we're joining the legion of municipalities," Aaron said. "They're attempting to do this to find a more equitable way to taxing the taxpayers in each municipality and to stave off the growing number of appeals, which will also cut down on the legal costs."

Both the city administration and residents believe that the end result of the reassessment will be that property values go down based on the current market.

"So what you're saying is that the mean amount will probably end up going down in the market that we have right now?" Ocean Boulevard resident Harold Bobrow asked at the meeting.

"That's exactly right," Aaron answered. "We will be looking at this particular market, rather than a market way back when, when the economic times were different."

Butow said the reassessment would reflect the market as of Oct. 1.

"This will result in the equitable distribution of the tax burden," he said.

Aaron explained that the gap between assessed value and market value is wide now, thus making the reassessment a necessary step.

"These are all key to dramatic changes in the ratio of sales and tax assessment," Aaron said. "The wider the ratios get between the assessed value and the market value, then you need these types of measures to bring everything back together again."

Butow agreed with the reasoning for the assessment, saying, "The main reason is the recent decline in property values."

While the assessment will take place this year, the $375,000 cost will be paid out over the next five budgets.

"You're allowed to write this off in five succeeding budgets," Mehlhorn said. "Put one-fifth in each budget and raise it, instead of doing a bond ordinance."

When asked if the special emergency appropriation could be used for other things, specifically to televise council meetings, Mehlhorn said it couldn't.

"Special emergency is limited to things like the assessment or storm damage," he said. "Any other budget, when you look at emergencies, you have to explain why it was not anticipated at the time of the budget."

Mehlhorn also said last week that not all the funds would be used for the actual reassessment.

"Not all that money is for the assessment," he said. "Some can be used if they find they have to do revisions to the tax map. Most of the money will be used for the assessment, though."

According to Butow, the previous re-assessment was completed for the 2007 tax year and the firm awarded the contract was Realty Appraisal Company, West New York, N.J.

Residents, particularly those in Elberon, were not happy with the rising property values from the last assessment, but city officials expect a different outcome from this one.

"I'm sure overall everything will go down," Mehlhorn said.

Contact Kenny Walter at

kwalter@gmnews.com


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