L.B. approves property reassessment contract

L.B. approves property reassessment contract
CFO: Assessments will go down
BY KENNY WALTER Staff Writer

LONG BRANCH — The City Council approved a contract last week to move forward with the reassessment of properties this fall.

The council voted 4-0 to approve a contract for Realty Appraisal Co. at the Aug. 11 council meeting. Councilman Brian Unger was absent for the vote.

The West New York company will receive $365,000 for services, which will be on the books for the 2010 tax year.

Long Branch Tax Assessor John Butow spoke to the council at the workshop meeting preceding the vote.

"We received two bids," Butow said. "We evaluated the proposals and the company we chose based on the different factors.

"We are here asking the city to approve the contract for Realty Appraisal Company," he added.

The other bid was submitted by Appraisals Systems Inc., Morristown, which made a $488,900 bid to complete the reassessment.

City Attorney James Aaron explained some of the other factors that led to this decision.

"Realty is not only the cheapest," Aaron said, "but it is also the only bid that had any experience with areas of redevelopment, of which we have significant areas.

"So that was another factor," he added. "Other than that, they are very professional."

According to Butow, the reassessment should start very soon.

"I spoke with the state today," he said. "They will fast-track out there to get approval, and then 10 days after that we will get feet on the ground and start the process."

The contract award comes just two weeks after the council approved $375,000 in appropriations for the reassessment.

Butow said last month that the Monmouth County Board of Taxation ordered the reassessment and that he will be overseeing the entire project.

At the July 28 meeting, Aaron explained exactly why the reassessment is necessary.

"The goal is to reduce the number of tax appeals," he said. "Since the tax appeals are based on the assessed value of the property, by doing this reassessment now, we're joining the League of Municipalities.

"They're attempting to do this to find a more equitable way of taxing the taxpayers in each municipality and to stave off the growing number of appeals, which will also cut down on the legal costs," he added.

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."

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

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

Realty Appraisal Co. also carried out the previous Long Branch reassessment, which took place in 2007. The reassessment was not well received by some, with many residents in Elberon upset with the results.

The city administration, however, sees a different outcome this time.

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

Contact Kenny Walter at

kwalter@gmnews.com.


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