Agenda - 12-06-2010 - 7d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 6, 2010 Action Agenda Item No. "7 -~ d SUBJECT: Decision Regarding Upcoming Revaluation DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Informational Cost Data for Consideration in Relation to Potential Revaluation Schedule INFORMATION CONTACT: Jo Roberson, Tax Administrator, 245- 2725 Frank Clifton, County Manager, 245- 2306 PURPOSE: To make a decision on the County's Revaluation Schedule. BACKGROUND: Beginning in 1993, Orange County moved from asix-year revaluation cycle to a four-year cycle. Since 1993, each revaluation that has been completed has reflected an average growth of value from sales alone of 4% per year. When factoring in new construction the average growth per year in value has been 6%. Of the five revaluations occurring in this timeframe, the least amount of overall growth has been 21 %. Over the past two years, there has been a marked decline in the number of property sales and permit issuances for new construction and a definitive increase in the number of days property for sale has remained on the market. Historically, the County has also not seen the number of completed foreclosures or short sales that have occurred within the past twelve months. At its November 9, 2010 budget work session, the Board received a report on the current market trends and other relative data for consideration in the decision planning for the next revaluation timeframe. As part of the discussion on November 9th, the Board asked that staff bring this item back for final decision at a December regular Board meeting. FINANCIAL IMPACT: If the Board chooses to move forward with the current revaluation schedule, there will be a financial impact of a minimum of $213,000 over the next two years as outlined in the attached Informational Cost Data for Consideration in Relation to Potential Revaluation Schedule. There is no financial impact if the revaluation does not proceed. RECOMMENDATION(S): The Manager recommends that the Board: 1) Further discuss this issue as necessary and provide any comments to staff; and 2) Delay the upcoming revaluation for at least one year, possibly two years, to allow the opportunity for the real estate market and the economy to recover more fully before pursuing revaluation; OR 3) Direct staff to move forward with the planned revaluation and to take the necessary budgetary steps to begin the revaluation process including the hiring of personnel and other actions to accomplish the revaluation.