The Paddock Lake Village Board has hired its property assessment contractor to perform more frequent revaluations over the next five years at a regular interval in an effort to keep property values closer to market values.
The result, village official expect, should be less volatile village property tax bills.
The five-year contract with Associated Appraisal Services was awarded Wednesday. The village will pay $19,350 each year for 2021 through 2025.
The new contract was approved by a 5 to 2 vote with Trustee Robert Spencer and Scott Garland voting against.
At a committee of the whole meeting last week, Village President Terry Burns said a revaluation was needed this year because there is significant documentation that property in the village is currently valued for tax purposes at less than 90 percent of market value.
State regulations call for property values used for taxes to be as close to market values, with a minimum standard of 90 percent set.
Under the new plan, a revaluation will be done every odd year. In the other years, a less intense maintenance valuation will be done.
By revaluing more often, the mill rate for the village portion of the property tax bill should be shielded from being up and then down. Properties pay taxes based on a rate per $1,000 of assessed valued.
If your property value rises close to the average amount during a revaluation, your taxes should stay about the same, all other factors — such as the levy (the total amount of tax money collected) — being the same. If your property increases less than average, your village property tax may go down. If your property increases more than average, your tax may go up.
Revaluing every other year should keep values within 5 percent of market value, Burns said.
Village administrator Tim Popanda said at the committee of the whole meeting that most surrounding municipalities revalue every two years.
At Wednesday’s meeting, Spencer objected to approving the contract, criticizing the concept of frequent revaluations and an auto renewal clause in the contract. Instead of approval Wednesday, he wanted the village to go out for bids on assessing services.
“This contract is horrible,” Spencer said.
Popanda explained that the contract was not bid because it is technically an extension of an existing contract. The new contract can be canceled with 60 days notice by either party.
Popanda and Burns also praised the service the village receives from Associated Appraisal. As evidence, they pointed out that most disputes about property values are resolved between the property owner and Associated at the open book level, with few cases advancing to the Board of Review step.
“We have never had problems with this company,” Burns said Wedneday.
