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Home My WebLink AboutResolutions - 1982.04.29 - 13791MISCELLANEOUS RESOLUTION # 82123_ BY: FINANCE COMMITTEE, G. WILLIAM CADDELL, CHAIRPERSON IN RE: 1982 EQUAIJZATION REPORT April 29, 1982 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS the Equalization. Division of the Department of Management and Budget has examined the assessment rolls of the several townships and cities within Oakland County to ascertain whether the real and personal property in the respective townships and cities has been equally and uniformly assessed at true cash value; and WHEREAS based on its findings, the Equalization Division has presented to the Finance Committee the 1982 Equalization Report which equalizes the aforementioned valuations by adding to or deducting from the valuation of the taxable property in the several townships and cities an amount as, in its judgment, will produce a sum which represents the true cash value thereof; and WHEREAS the Finance Committee in accordance with Rule XA8 of the Board of Commissioners adopted January 15, 1981, has reviewed the findings & recom- mendations of the Equalization Division and conducted hearings to provide for local intervention into the equalization process; and WHEREAS the Equalization Factors listed on the attached report are the result of the foregoing process and are for information purposes only NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts the 1982 Equalization Report and authorizes its certification by the Chairperson of the Board and further that it be entered on the County records and delivered to the appropriate official of the proper township or city . Mr. Chairperson, on behalf of the Finance Committee, 1 move the adoption of the foregoing resolution. FINANCE COMMITTEE z April 20, 1982 TO: • THE FINANCE CO.'C'TITTLE - OP 1(1AND CO'ditv Br""'"' 0 7" C'''''''''-17,5 _ e.,-....,e ... e....,...-.. e...e.'‘e • , v ypeee.e 1-.T-v-e-,,,---, nr, '7,:- — . .,_.,,.z,c, , ,._ 'CI. ,..., i Li ,<, ..,..,.1: IL,L 122-77 ' "-...7"-'r & 7.'-Thr.--.'' --- - ( ..........• .. q v FROM: HEKIAN W. STEPETS =ACE.7. Or 777 ---fl-'77 7 ,--re- *-7 T-7-cee CF eeeee e ee SUBJECT: 1982 EQUALIZATION Pursuant to the rules of the State Tax commission, an Interim State Report was filed July 17, 1961. In this report, we outlined in detail the,stedies that were underway for 1982 Equalization. We also indicated in this report that the residential class Would be studied from the market through the use of sales ratios, i.e. the ratio between the reported selling price and the assessed value. The other classes were to he studied by the use of appraisal referenced to the market. In addition, we asked the State Tax Commission to: Review the above program and advise Oakland County in writing before August 10, 1981, if our current program was acceptable. 2. Submit to Oakland County by December 1; 1981, any studies made by their field staff. 3. Notify Oakland County before February 1, 1982 of their acceptaeee or rejection of our starting ratios, which were submitted to them by December 31, 1981. 4. Request that their district supervisor appear and participate az our Equalization hearings in December. 5. Sample our commercial, industrial, acreage and personal propert i es, as we felt that these classes were at 50%. By late summer, it became apparent that the real estate market in our area was deteriorating and conditions did not lock as if they would improve before sometime in 1962. With this condition worsening, the current market provided the most accurate measurement of assessing levels for our use in arriving at our recommendations for the 1962 proposed factors. Subsequently, the market data available up through October was utilized to arrive at a trended ratio for December 31, 1961. The corrections needed in the residential class, based on these trended ratios, were forwarded to all the cities and townshe in 1981 and were also used to prepare our L-4018 report for the State Tax Commission on December 29, 1981. This report to the State Tax Come --4 ss 4 c-e was subsequently replaced in March of 1982 with a new set of 1..-n16's, Once the sales were available for November, December and the first two months of 1982. The 30 month study provided information which was considered throughout our deliberations, but could not be utilized across the board for two reasons: 1. it did not produce uniformity between the cities and townships in Oakland County. 2. It pushed the assessment level in almost every unit over the 50% constitutional maximum on Tax Day, December 3 1 , 1961. . April 20, 1982 Page 2 The utilization of the 12 month stud-s- proved ',.ust as hopeless for the same reasonS. After reviewing many of the studies turned. into the State Tax Com-4 sson by other counties and direct contact with. many . of the assessing officials state-wide, it is our belief that reliance on 30 month studies is not pro- ducing uniformity in the State for 1982. In addition, the 30 month study results in raising many of these areas above 50; on Tax Day, based on fhe first six months of 1981 sales ratios (see Grand Rapids - Et A). The uniform application of a procedure that does not produce uniformity and also causes many districts and individual properties to be assessed over 50% is inequitable. Exhibit B provides a comparison between the State Tex Commission procedures and the Oakland County procedures for residential properties. The State Tax COTriSSiOn procedures add approximately 6% to the County of Oakland for 1 962. The amount of increase varies c onsiderably between our cities and townships (See the last column in exhibit). The 1981 - 1982 market conditions are not typical of what we have been experiencing locally and nation-wide over the past 10 years. The same conditions, low volume of sales, creative financing and general market confusion, are reinforcing our convictions that tb equalize fairly, a moratorium should be called on the 49 -50% range for a factor of 1.00. This year a range of 47.50 - 50.00 is necessary in Oakland County. The attached chart (Exhibit C) displays our position as of December 31, 1987 , and the relationship of our correction (center line) to the 30 month study (bottom line). The difference between these two points is approximately 6% Exhibit D is a list of the Oakland County proposed 1982 factors by class for the townShips and cities. 43.02 ',; 4L15% 42.18 42.07% 41.35 40.50% 4.1-\ 42.55 6- 7 41.33% 41.1N 41.2 'XHIBIT A CITY OF GRAD RAPIDS — 1981 RESIDENTIAL REAL -PROPERTY SALES AMALYSIS ALL SALES /— NO. OF SALES AVERAGE c77- Land Contracts 007iveritiona2 Ratios FIRST QUARTER Land Contracts 257 34,494 Conventional 213 34,305 Combined 470 . 34,408 SECOND QUARTER Land Contracts 341 35,207 Conventional 294 35,939 Combined 635 35,546 THIRD QUARTER Land Contracts 299 35,508 Conventional 240 37,292 Combined 539 36,857 FOURTH QUARTER Land Contracts 251 34,809 Conventional 178 37,935 - Combined 4 2 9 36,105 TOTAL 1981 • Land Contracts 1143 . 35,545 _Conventional 941 36,238 Combined 2084 35,8E1 1 I", Proposed 1982 Ecalization 7actor February 10, 1982 COMPARISON OF DIFFERENCES BETWEEN STATE. TAY, COMMISSION PROCEDURES AND OAKLAND CO= PROCEDURES RESIDENTIAL PROPERTIES TOWNSHIP OR CITY ETC 30 MOS or 22 MOS AVG OC 1981 3RD & 4TH QTR or DEC 1981 SALES OC 1982 ETC 1982 PROPOSED PROPOSED DIFFERENCE FACTOR FACTOR 4 Addison Avon Bloomfield . Jprandon Col-nmerce Groveland Highland Holly Independence Lyon Milford Novi Oakland Orion Oxford Pontiac Rose Royal Oak Southfield Springfield Waterford West Bloomfield White Lake TOTAL TOWNSHIPS Berkley Birmingham Bloomfield Hills Clawson Farmington Farmington H ill s Ferndale Hazel Park Huntington Woods Keego Harbor Lathrup Village Madison Heights Northville Novi Oak Park Orchard Lake Pleasant Ridge Pontiac . Rochester - Royal Oak Southfield South Lyon Sylvan Lake Troy Walled Lake Wixom TOTAL CITIES GRAND TOTAL 39,509,014 502,049401 934,393,083 81,852,301 2 18,339,291 31,826,977 130,541,312 50,390,128 224,992,858 48,407,172 90,407,500 2,553,150 96,017,690 176,394,916 75,370,158 74,571,461 40,348,900 5,200,200 294,006,901 68,624,860 51 1 ,205,437 781,956,384 1 86,473,699 4,6E7,432,893 137,259,558 339,852,640 160,541,7 22 101,413,876 105,936,524 691,914,643 135,242,120 95,761,198 90,653,216 15,250,300 62,466,627 195,530,010 34,123,980 220,559,830 797,076,939 51,335,868 32,623,400 221,329,725 54,285,629 540,303,520 634,450,034 30,962,820 22,462,389 732,118409 29,835,244 37,386,340 4,970,675,661 9,636,108,554 36,554,3.00 468,246;000 868,099,030 79,266,425 ' 21 7 ,379;000 30,676,900 125,928,350 49,919,975 215,516,655 46,506,400 90,407,500 2,553,150 92,853,150 167,263,650 69,477,210 74,003,150 40,346,900 5,200,2_00 278,536,400 66,641,400 480,964,400 717,668,400 171,283.050 ,389,443,595 127,595,000 321,892,500 157,441,300 96,281,525 99,036,190 654,990,200 126,649,300 91;138,367 83,064,900 15,250,300 58,382,275 181,525,000 32,475,245 210,808,250 187,074,260 49,702,700 32,623,400 208,645,200 50,440,300 496,903,100 602,829,150 29,936,200 21,116,785 687,348,650 27,515,400 35,175,750 4,685,841,247 9,075,284,842 2,954,714 33,803,501 66,294,053 2,585,876 6,960;7'91 1,000,077 4,617',96? 470,153 9,476,203 1,900,772 -P- • -0- 5,164,540 9,131,266 5,892,948 568,311 -0- -0- 15,470,501 1,983,460 30,241,037 64,287,984 15,190.649 277,989,298 9,664,558 17,960,140 3,099,822 5,132,351 6,900,334 36,924,443 8,592,820 4,622,831 7,588,316 -0- 4,084,352 14,005,010 1,648,735 9,751,580 10,002,679 1,633,168 -0- 12,684,525 3,845,329 43,400,420 31,620,884 1,026,620 1,345,604 44,769,459 2,319,844 2,210,590 284,834,414 562,823,712 1.00 1.0E08 1 .00 1 .0722 1.00 1.0764 .1 0 , 1.00 rTic 1.03 1.0 --24 7 .00 1.0:66 1.00 1.03 1.0-40 1.00 1.0429 1.00 00 1.00 1.2:00 1.00 1.0556 1.00 1.0546 1.00 1.0848 1.00 1.0:77 1.00 1.0:50 1.00 1.0= 1.00 1.0555 1.00 1.0298 1.00 1.0629 1.00 1.0996 1.00 1.0E97 1.00 1.0757 1.00 1.055E 1.00 1.0197 1.00 1.0573 1.00 1.0697 1.00 1.0554 1.00 1.06 7 8 1.00 1.0507 1.00 1.0914 1.00 1.0000 1.00 1 .07 3 0 1.00 1.0772 7 .00 1.0 508 1.00 7 ,0463 1.00 1.0535 1.00 1.0329 1.00 1,007'0 1,00 1,06:8 1.00 1.0762 1.00 1,0973 1,00 1.0525 1.00 1.0343 1.00 1.0637 1.00 1.0651 1.00 1.0843 1.00 1.0628 1 .06 2 0 Prepared by Oakland County Equalization Division ----- April 20, 1982 3/9/82 ASIAT RASE 4:3 10,10,00,000:11040 . :umil itiwa..iimminvi ioniimmainnitun*willimoomnimiumeininiiiiininoillinti:I.041ii;1/41141%.90111bilk9i:idpir2deffillkia ,435 ,431 .n;.- 1".t .436 (1.1012 436 41..:126 CTY PROPOSED .454 .455 .455 6.t.c.14,44,244.4,4:1.1.56 .455 ' FL, var.x.waxiccia o iccuria=autia waux.mmuw.mi *41, 6 STC PROPOSED .483 ,4 B4 .484 .484 A ti 0,06 h'" 4.0 13.40 .44 86.0 kw. sosdi 66.8 14=9 tomo -LIN111 A S MT DATE .500 &ft, 4.4 LIMIT .461 4214470-0. 4,44 466 X-C.V.4414414441, 469 TOTAL NUMBER OF SALES 7.712 % .491 4'4,7 4, 4 96 kkt. Y11804/1144.77004ii.m.„- 450 '1:1:1,54/54::141114111,11111011/171,11ni:t n 41.4 -NO 418 • 1,444441134244 ,411I • - LIMIT n 465*40184,4:„. 4464, 478 .479 d. oilliohinnt.uanowuinat. rl 5.11,4 491 98 .499 otaazz,zkM.Yie .51 .513 innip "k• .52 .53 .55 nffif 1981 &82 RESIDENTIAL MONTHLY TIME-SERIES .4 .41 .42 ,43 .44 0 F- L( .45 < A (I) . • .47 .48 .4 9 .50 509 . 447 4, 4041;544243 , 531 .532 fig0 *VS Feki11 11264 kfilda .54 tk A CINIT r117, i REAL PERSONAL TOWNSHIPS AG .CON'L .IND'L RES DEV ' 1.00 1.00 1.00 nnnn•••n 1.00 1.00 1.00 1.C;) 1 .07. .C? 1 I .C.T 1.n - 1.00 1.00 1.00 1.00 1.00 Leo 1.00 1.00 1.00 1.00 1.00 1.03 1.02 1.00 1.00 1,00 1.00 1.00 1.00 1 ,0P 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.03 1.00 1.00 1.00 1.00 PROPOSED 1982 FACTORS BY CLASS Addison Avon Bloomfield Brandon . Cor.merce Grove Ian 17:0117 independence Lyon Milford Novi Oakland Orion Oxford Pontiac Rose Royal Oak Southfield Springfield Waterford West Bloomfield White Lake CITIES Berkley Birmingham Bloomfield Hills Clawson Farmington Farmington%Hills Ferndale Hazel Park Huntington Woods Keego Harbor Lathrup Village Madison Heights Northville Novi Oak Park Orchard Lake Pleasant Ridge Pontiac Rochester Royal Oak Southfield South Lyon Sylvan Lake Troy Walled Lake Wixom 1.00 1.00 1.00 1.00 - LOU 1.00 1.00 - 1.00 1 -00 2 .00 1.00 1.00 1.00 1.60 1.00 -- 1.00 1.00 1.00 1.00 1.00 1.00 1„--.: 1.00 1.00 1_00 1.00 1.00 1.00 1.00 i_rJc 1.00 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.0341 1.00 1.00 1.00 1.00 1.00 1.3 1.00 1.00 1.00 1.00 -- ...._ -- -- 1.00 _ 1.00 1.00 1.00 1.00 1.00 i 1.00 1.00 1.00 1.00 1.00 1 1 00 1.00 1 -' 1.00 1.00 -- -- 1.00 1.00 1.00 1.00 i i 1.00 1.00 1.00 1.00 1.00 ! - 1.00 1.00 1.00 -- i 1.00 - 1.00 -- ; i 1.00 1.00 1.00 1.00 - i 1.00 1.00 Loo 1.00 -- 1 1.00 1.00 1.00 1.00 , 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 -- 1.00 - 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1 .00 1.00 1.00 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 ' -- 1.00 -- 1.00 -- 1.00 -- 1.00 -- 1.00 -- 1.00 1.00 1.00 ....... 1.00 1.00 1.00 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 -- 1.00 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 1.00 1.00 -- 1.00 1.00 1.00 1.00 1.00 1.00 1.00 -- 1.00 1.00 1.00 ...... 1.00 1.00 1.00 1.00 1.00 1.00 1.00 -- PREPARED BY THE OAKLAND COUI:',TY EQUALIZATION DIVISION April 20, 1982 Kr5ssi_Laae.Qua_Ba51Pautian_l_32123 anoprPo n1 aakdand Co DE Roard 29th day of 19 82 #82I23 April 29, 1982 Moved by Caddell supported by Perinoff the resolution be adopted. Discussion foljowed -. Vote on resolution: AYES: Olsen, Rage, Patterson, Perinoff, Pernick, Peterson, Aaron, Caddell, Cagney, Calandra, DiGiovanni,'Doyon, Fortino, Gabler, Geary, Gosling, „Jackson, Kasper, Lanni, McDonald, Moffitt. (21) NAYS.-Whitlock, Moore. (2) A sufficient majority having voted therefor, the resolution was adopted. STATE- OF MICHIGAN) - COUNTY OF OAKLAND) t, Lynn 0. Allen, Clerk of the Count}, of Oakland and having a seal, do hereby certify that 1 have compared the annexed copy of their meeting beilLguLlWiaLja,a112_ with the orginial record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan . ALLEN Coun -y Clerk/Register of Deeds , this