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The Board discussed current market trends including data for consideration in <br /> timeframe planning for the County's next revaluation. <br /> Tax Administrator Jo Roberson presented this item. She made reference to the <br /> Revaluation Fact Sheet, which is shown below: <br /> Revaluation Facts: <br /> - The purpose of a revaluation is not to garner increased values and thereby be in <br /> position to lower the tax rate. It is in fact to ensure that all citizens are having their <br /> assets taxed fairly and equitably. <br /> - The average growth has historically prior to 2009 been 4% per year. This 4% <br /> represented actual increase in existing property value. When new construction was <br /> factored into the equation the percent of growth averaged 6% per year. That equated <br /> to 24% every four years. <br /> - Beginning in the later part of 2007 and during the year 2009 we began to see a slowing <br /> in new building permit issuance and number of actual completed sales. Additionally, <br /> with an increased field presence of Orange County staff we were able to complete the <br /> 2009 revaluation with the closest to full market sales ratio since 1998. (Exhibit I <br /> available through the North Carolina Department of Revenue). <br /> - Factors currently affecting the market— over the past 22 months the number of sales <br /> have dropped approximately 50% in comparison to prior years. Sales for the timeframe <br /> of January 1, 2005 through December 31, 2006 were 4844. For the timeframe of <br /> January 1, 2009 through October 31, 2010 total sales is 2178. Additionally, property is <br /> remaining on the market for a longer average time than historically data indicates. <br /> (please see Orange County Sales document included) <br /> - Currently with the limited number of completed sales it is reasonable to state that at 22 <br /> months out from the 2009 revaluation we have basically established the equivalent to <br /> less than 1 year of sales data historically. <br /> - The sales market analysis which was presented to the Board of County Commissioners <br /> in February of 2010 reflected an average ratio of assessed value to sales price of <br /> 100.40%. The median ration of assessed value to sale price was 100% and the <br /> measure of how closely values clustered around the median (COD) was 9.68. As <br /> reflected in the included sales market analysis covering January 1, 2010 through <br /> October 31, 2010 you will find this data has shifted very little. <br /> - The North Carolina Department of Revenue Property Tax Division sales ratio study of <br /> January 1, 2010 reflected the Orange County median as 98.65%. The same timeframe <br /> out from the 2005 revaluation the median for Orange County was 89.74%. <br /> - The 2005 beginning ratio was 95.58% and by the end of the year of 2006 the median <br /> was 88.29%. Our current reflected median from January 1, 2010 to October 31, 2010 <br /> is .99069 reflecting that our values are remaining flat. <br /> Jo Roberson pointed out that, historically, with prior revaluations, and specifically with <br /> the 2005 revaluation, in a period of two years there was a total of 4,844 sales. The number of <br /> sales has dropped approximately 50%. The number of sales recorded through the end of <br /> October was 2,178. This is more than a 50% drop in the number of sales, and not a 50% drop <br /> in the value that it sold for. She said that it is reasonable to state that Orange County has less <br /> than one year of historical sales data to work from. She pointed out that in the past two years, <br /> there has only been 1 and 1/3% growth in sales. Historically, at this point in a revaluation <br />