CVSID provides update regarding reassessment

Wednesday, May 30, 2018

Property owners in the Cherokee Village Suburban Improvement District (SID) can expect to see some changes to their property assessment fees next year.

According to David Webb with the SID, all amenities for the last year in Cherokee Village have undergone a reappraisal and as their value to the property owner has risen, so will assessment fees.

“Things will be changing but there is a reason. The improvement district started in 1974 and a value was given to the amenities for the property owners and in that value of the amenities; the lakes, golf course, pools, recreational centers, miniature golf, dams, fire departments and roads. All of that is part of those benefits for the property owners,” Webb explained.

During the time of the initial assessment in 1974, the value of those amenities to the property owner was $1,325 per lot. At that time, it did not matter if the lot was unimproved or improved, meaning there would be a house on the lot.

By law, the SID may levy up to 10 percent of the assessment. Initially set at 2.9 percent, property owners paid $38.43.

Over time, the levy hit its maximum percentage in 1996, and the average was $132.50 with a slight variation depending on if a home was located on a lake, a golf course or how much road frontage for a lot.

For the next 22 years, bringing the time line to date, the levy has remained at its maximum capacity, something that has had an impact on the SID and their ability to maintain and expand the amenities.

“Then, the only variable in income was the number of lots that were paying. In 2008, when the economy tanked, that’s when lot sales slowed. After the re-appraisal, those amenities as well as the land, will now go to $3,400 for a vacant lot and $7,400 for an improved lot. With the changes, the levy can now go back to anywhere between zero and 10 percent,” Webb said.

Webb said the levy will now be lowered, but there will still be an increase to property owners, as the value of the amenities re-appraised for approximately $100 million.

“We don’t know what it will be yet, but the example that is in the filing is 4.5 percent. It is for example purposes,” Webb said. “This study has the land, common property, all of the buildings, everything that would fall under the improvement district that has value. $100 million, divided by 25,362 lots equals $3,944 [rounded to $4,000], so you have how much the assets are and the number of lots, so that divided out is how you come out with $4,000 for a vacant lot because of the added amenities. The assets are worth that $100 million. We know there are 25,362 lots, so how much is that $100 million worth to each one? It’s $4,000.”

Webb said initially, they took 13,500 acres which makes up the SID territory, and figured what the value of that land would be with no improvements. When it was done, it was done by sales comparable and came up with the value being $1,100 an acre which came to $14,850,000 which was then divided by 25,362 (lots) the value came to $585 (rounded to $600) without any improvements.

“Without anything on it, each parcel has about a $600 value. Then you take the $100 million [600] and divide it by the same number of lots and you come up with $4,000. So then you subtract what it was beforehand and come up with the $3,400,” Webb explained.

Webb said the levy assessment percentage won’t be filed until September and will appear on the 2019 tax bill.

Webb said the increase will not only benefit the SID but also the city.

“Amenities will get better, the attractiveness of the pools; at some point down the road, we’ll be able to mow faster with more people, faster equipment, more fish in the lakes, roads and streets and certainly the City of Cherokee Village benefits from this also because the city gets 34 percent of the assessment income the improvement district does and they use that on the fire, and road and street departments,” Webb said. “This will enable the city to do things to help the road and street departments as well as the fire department. Continued fire department improvements could lead to a lower ISO rating and lower home owner insurance rates.”

The SID commissioners, Ron Patterson, Greg Pringer and Joe Waggoner, will be responsible for deciding at what percentage the levy is set.

“We will file notice of reassessment in the paper for two weeks. That filing will also include a date for the Board of Equalization, which is made up of the commissioners as well as the appraisers and our attorney. Just like you do in a county when there is an increase in the county, Advalorem. We will also be sending a certified letter to each property owner. That letter will include their lot block and addition and what the new evaluation will be for each lot they own.”

For example purposes, a 4.5 percent levy on a vacant lot would be $153. The current average is $132.50. An improved lot with an evaluation of $7,400 at 4.5 percent, would go to $333.00.

Improved lot property owners will see a greater increase due to before, there was no differentiation between improved and unimproved properties with the exception of road frontage, and locations on lakes or golf courses.

“Once we go to the process, we will turn the information over to the counties for their assessors to put on their books. We now also have a commercial classification, whether it be a commercial improved or unimproved and that will change also,” Webb said.

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  • I feel this is going to be very unfair, to retired citizens, also people that are disabled.

    Yes Mr. Webb, you work and make a good salary, with many increases, Also your wife works. and does well. No problems with that. But what you want to impose is outrages.

    There are many counties that have got rid of SID , The only roads that are taken care of Lake homes golf courses. Have live hear for over 15 years. I have spent many years, doing Vol. work for this City and so has many other citizens.

    Hoping this will make you take a 2 nd. look at this.

    A very concerned, Person.

    -- Posted by boss1 on Fri, Jul 20, 2018, at 7:08 PM
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