Town of Lexington,NY - Board Minutes


Board Meeting 5/17/2007 Special Meeting The Special Meeting of the Town Board of the Town of Lexington was called to order on May 17, 2007 at 7:00 P.M., by Supervisor Dixie Baldrey at the Lexington Municipal Building, followed by the pledge of allegiance. PRESENT: Supervisor........................................ Dixie Baldrey Council Members......……..….......… Keith Mellott Lynn Byrne Maurice Nelson Town Clerk ……….........................…...Rose Williams ABSENT: Councilmember ……………………… Paul Van Valkenburgh OTHERS PRESENT: Nicholas Palermo, Ellouise Cole and James Boyle, Code Enforcement Officer, and Assessor Georgette Krauss. Supervisor Dixie Baldrey said that the special meeting was called to discuss whether the Town of Lexington should consider doing an assessment revaluation on the property within the town. The Town Board Members discussed the pros and cons on doing a revaluation of the properties within the Town of Lexington. A handout was presented to the Town Board Members from the Assessor’s Office regarding the “Advantages and Disadvantages to Lexington Revaluation.” that stated the following: ADVANTAGES: Transparency: Assessments that are estimated based upon 100% of full market value are easier for the taxpayers to both understand and challenge. Most people have a sense of the true market value of their property. Where the assessment comes close to that value, taxpayers should believe they are being treated fairly. If the assessment exceeds market value, and the taxpayer has some proof of that fact, challenges can and should be successful. If the Equalization Rate is returned to 100% taxpayers will see the following benefits: Currently we are loosing approximately 6 million in assessments paid by the State of New York for state land because the values have been frozen at 33 million since the last update in 2004. In addition, under new rules set out in 2006 by the Office of Real Property Services. Special Franchise assessments are being reduced by the amount by which the equalization rate is reduced. A 62% equalization rate – will cause a special franchise assessment to be reduced to 62% of its full market value. It is also true that currently all new construction in the town has to be assessed at 62% of market value in order to meet the requirement that all parcels to be assessed at a uniform percentage of value. If all roll section 1 parcels (residential, commercial and vacant land are assessed at 100% of market value (including new construction), then all roll section 3 (State Land), Roll Section 5 (Special Franchise) and Roll Section 6 (Public Facilities) parcels can also be valued at100% of market value. An increase in all other roll sections increases the total taxable value of the town without increasing the burden on the local taxpayer. Local Taxpayers will benefit from increases in the amount of some exemptions because some exemptions are tied to the Equalization Rate. For example, the Combat Zone Veterans exemption adopted by the Board with a base value of $30,000. will be reduced this year to $22,350. or 74.5% of its adopted rate (There is a one year lag in the adjustments – so it is based upon last year’s equalization rate. In addition, the STAR Exemption, which was increased to base rate of $35,000, has already been reduced in 2006 to $29,360. and will be reduced further this year. If assessments are increased to 100% of value, the Veterans Exemption will return to it’s full value and even higher, if the Board accepts my recommendation to increase it to the maximum to offset higher assessments and the STAR exemption will increase based upon the change in level of assessment – if values increase by 50% overall, than the exempted amount will increase by 50%. That will certainly ease the burden of local school taxpayers. School and County Tax Apportionment will be positively impacted and the percentage of the tax levy will decrease as the equalization rate increase relative to the other municipalities in the county or school districts. DISADVANTAGES: Property Owners get really upset and fearful: The normal assumption is that if their assessment increases by 50% their tax bill will, as well. That causes extreme emotional outbursts normally targeted at the assessor – the Board, for the most part, remains unscathed. I have trued for 10 years – with very mixed results – to convince taxpayers that I only the market value of their property and that tax bills are determined by the tax levy and hence the levying bodies. “Impact Notices” determine the market value of their property and that tax bills are determined by the tax levy and hence that levying bodies. “Impact Notice” – required by full Revaluations – is somewhat helpful – as long as the taxpayer can feel comfortable with they are being give reliable information. Impact Notices show what will happen to the taxpayer’s tax bill if the tax levy stays the same and only the assessment increases. Normally the change in the tax bill is not nearly as bad as expected. However, it must be noted that none of us has any influence over school district and county tax levies, so there is no way to guarantee the result set out in the notice. It is not cost-free: It is hoped that the costs of a reval can be offset by the maintenance aid ($5 per locally assessed parcel or approximately $7,000) provided by the State of New York if the project is approved. However, money does need to be set aside in advance to cover cists (printing and postage can be almost $3,000.) and the State being what it is, there is, again, no guarantees it will approve the end result. In addition, were I should be very pessimistic, I could contemplate numerous small claim actions in August and September which might involve legal costs. Senior Citizens could be hurt: The Senior Citizen Exemptions not tied to the equalization rate and for incomes if $18,500. and under, it currently reduces assessments by 50%. However, if assessments are raised by 50%, the burden on the senior will clearly increase. Even if the Town increases the maximum income allowable to qualify for a 50% reduction, it seems probable that a senior whose assessment is not $50,000 and who pays taxes on $25,000 could be disadvantaged by the prospect of an assessment of $75,000., and a county taxable value of $37,500. if the county tax rate does not decrease in proportion to the amount the assessment increased. The Town Board Members decided that they wanted to hold public meetings to inform the taxpayers about a proposed revaluation that is being considered for 2009. Supervisor Dixie Baldrey said that she received an update from Attorney Tal Rappleyea regarding the problem that he is having in serving papers on Jaroslawa Gerulak because she cannot be located. A discussion was held. Supervisor Dixie Baldrey said that she received the snowmobile agreement and gave a copy to the Town Board Members for their review. Councilmember Lynn Byrne made a motion to adjourn the meeting, seconded by Councilmember Keith Mellott. Everyone agreed. Supervisor Dixie Baldrey adjourned the meeting. Respectfully submitted, Rose Williams, RMC Town Clerk

Board Meeting 5/17/2007 Special Meeting

The Special Meeting of the Town Board of the Town of Lexington was called to order on May 17, 2007 at 7:00 P.M., by Supervisor Dixie Baldrey at the Lexington Municipal Building, followed by the pledge of allegiance.

PRESENT: Supervisor........................................ Dixie Baldrey
Council Members......……..….......… Keith Mellott
Lynn Byrne
Maurice Nelson
Town Clerk ……….........................…...Rose Williams

ABSENT: Councilmember ……………………… Paul Van Valkenburgh

OTHERS PRESENT: Nicholas Palermo, Ellouise Cole and James Boyle, Code Enforcement Officer, and Assessor Georgette Krauss.

Supervisor Dixie Baldrey said that the special meeting was called to discuss whether the Town of Lexington should consider doing an assessment revaluation on the property within the town.

The Town Board Members discussed the pros and cons on doing a revaluation of the properties within the Town of Lexington. A handout was presented to the Town Board Members from the Assessor’s Office regarding the “Advantages and Disadvantages to Lexington Revaluation.” that stated the following:

ADVANTAGES:

Transparency: Assessments that are estimated based upon 100% of full market value are easier for the taxpayers to both understand and challenge. Most people have a sense of the true market value of their property. Where the assessment comes close to that value, taxpayers should believe they are being treated fairly. If the assessment exceeds market value, and the taxpayer has some proof of that fact, challenges can and should be successful.

If the Equalization Rate is returned to 100% taxpayers will see the following benefits:

Currently we are loosing approximately 6 million in assessments paid by the State of New York for state land because the values have been frozen at 33 million since the last update in 2004. In addition, under new rules set out in 2006 by the Office of Real Property Services. Special Franchise assessments are being reduced by the amount by which the equalization rate is reduced. A 62% equalization rate – will cause a special franchise assessment to be reduced to 62% of its full market value. It is also true that currently all new construction in the town has to be assessed at 62% of market value in order to meet the requirement that all parcels to be assessed at a uniform percentage of value. If all roll section 1 parcels (residential, commercial and vacant land are assessed at 100% of market value (including new construction), then all roll section 3 (State Land), Roll Section 5 (Special Franchise) and Roll Section 6 (Public Facilities) parcels can also be valued at100% of market value. An increase in all other roll sections increases the total taxable value of the town without increasing the burden on the local taxpayer.

Local Taxpayers will benefit from increases in the amount of some exemptions because some exemptions are tied to the Equalization Rate. For example, the Combat Zone Veterans exemption adopted by the Board with a base value of $30,000. will be reduced this year to $22,350. or 74.5% of its adopted rate (There is a one year lag in the adjustments – so it is based upon last year’s equalization rate. In addition, the STAR Exemption, which was increased to base rate of $35,000, has already been reduced in 2006 to $29,360. and will be reduced further this year. If assessments are increased to 100% of value, the Veterans Exemption will return to it’s full value and even higher, if the Board accepts my recommendation to increase it to the maximum to offset higher assessments and the STAR exemption will increase based upon the change in level of assessment – if values increase by 50% overall, than the exempted amount will increase by 50%. That will certainly ease the burden of local school taxpayers.

School and County Tax Apportionment will be positively impacted and the percentage of the tax levy will decrease as the equalization rate increase relative to the other municipalities in the county or school districts.

DISADVANTAGES:

Property Owners get really upset and fearful: The normal assumption is that if their assessment increases by 50% their tax bill will, as well. That causes extreme emotional outbursts normally targeted at the assessor – the Board, for the most part, remains unscathed. I have trued for 10 years – with very mixed results – to convince taxpayers that I only the market value of their property and that tax bills are determined by the tax levy and hence the levying bodies. “Impact Notices” determine the market value of their property and that tax bills are determined by the tax levy and hence that levying bodies. “Impact Notice” – required by full Revaluations – is somewhat helpful – as long as the taxpayer can feel comfortable with they are being give reliable information. Impact Notices show what will happen to the taxpayer’s tax bill if the tax levy stays the same and only the assessment increases. Normally the change in the tax bill is not nearly as bad as expected. However, it must be noted that none of us has any influence over school district and county tax levies, so there is no way to guarantee the result set out in the notice.

It is not cost-free: It is hoped that the costs of a reval can be offset by the maintenance aid ($5 per locally assessed parcel or approximately $7,000) provided by the State of New York if the project is approved. However, money does need to be set aside in advance to cover cists (printing and postage can be almost $3,000.) and the State being what it is, there is, again, no guarantees it will approve the end result. In addition, were I should be very pessimistic, I could contemplate numerous small claim actions in August and September which might involve legal costs.

Senior Citizens could be hurt: The Senior Citizen Exemptions not tied to the equalization rate and for incomes if $18,500. and under, it currently reduces assessments by 50%. However, if assessments are raised by 50%, the burden on the senior will clearly increase. Even if the Town increases the maximum income allowable to qualify for a 50% reduction, it seems probable that a senior whose assessment is not $50,000 and who pays taxes on $25,000 could be disadvantaged by the prospect of an assessment of $75,000., and a county taxable value of $37,500. if the county tax rate does not decrease in proportion to the amount the assessment increased.

The Town Board Members decided that they wanted to hold public meetings to inform the taxpayers about a proposed revaluation that is being considered for 2009.

Supervisor Dixie Baldrey said that she received an update from Attorney Tal Rappleyea regarding the problem that he is having in serving papers on Jaroslawa Gerulak because she cannot be located. A discussion was held.

Supervisor Dixie Baldrey said that she received the snowmobile agreement and gave a copy to the Town Board Members for their review.

Councilmember Lynn Byrne made a motion to adjourn the meeting, seconded by Councilmember Keith Mellott. Everyone agreed.

Supervisor Dixie Baldrey adjourned the meeting.

Respectfully submitted,

Rose Williams, RMC
Town Clerk