September 30, 2002 - 7:00 PM - County Board of Commissioners Meeting Minutes (Special)

10 96 Meeting of the Johnston County Board of Commissioners September 30 , 2002 The Johnston County Board of Commissioners met in special session Monday , September 30 , 2002 , at 7 00 pm in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina , with the following members present Present James H Langdon , Jr , Chairman , Cookie Pope , Vice Chairman , Thomas M Moore , Allen L Mims , Jr , Fred Smith , Wade M Stewart and W Ray Woodall Absent None Also Present Rick J Hester , County Manager , Patricia Baker , Deputy Clerk to the Board , Pat Goddard , Tax Administrator , and Dale Campbell with CLT The Chairman called the meeting to order and stated that in the absence of the Clerk , Patricia Baker , Deputy Clerk , would record the minutes for this meeting The purpose of the special session is to hold a public hearing on the proposed Schedules , Standards , and Rules to be used for the Johnston County 2003 Property Tax Revaluation 1 Public Hearing - Proposed Schedule of Values for 2003 County Tax Revaluation Advertised September 13 , 20 , 2002 in The Smithfield Herald The Chairman opened the public hearing and invited anyone who wished to address the Board on the proposed Schedules , Standards , and Rules to be used for the County 2003 Property Tax Revaluation Ada Kittle , who lives off Powhatan Road , stated the property she lives on has been in her family for more than 200 years and has been passed down through the generations She asked if the property taxes would increase significantly with the revaluation , and pointed out that much of her family’s property has been kept in its original state and , in her opinion , has little value Chairman Langdon explained that next year’s taxes will be based on the new value given the property and figured on the new tax rate that will be approved by the Board for 2003 He assured Ms Kittle the tax rate will be adjusted downward to reflect the new values ; however , it is uncertain what that rate will be at this time Ms Kittle noted her family wishes to pass the property down to the next generation , but has been frustrated with all the rules and regulations they have been told they would have to follow Due to the way the original deed was written concerning the path right of way , they have been unable to get recorded deeds She asked where she might go for help with this matter County Manager , Rick Hester , offered his assistance in making sure Ms Kittle meets with the appropriate staff members about her particular concerns Tax Administrator , Pat Goddard , provided the Board with copies of a letter from Steve Kenney with th Kenney Properties , Inc , which was faxed to her on September 27 The letter , which was addressed to the Board of Commissioners , discussed the proposed methodology for determining value on apartment complexes such as Amelia Village in Clayton Steve Williams of Williams Appraisers , Inc spoke on behalf of Kenney Properties He stated that Amelia Village is the largest apartment complex in the County with 320 units , and in the opinion of the owner , has always been over assessed by the Tax Department The County has determined the value based on total square footage instead of by the cash flow or income approach Since the apartments were completed 18 months ago they have been at 50 occupancy , and the taxes represent 15 of the gross income With the current soft market , he does not anticipate much increase in the occupancy rate in the near future , and in his opinion , if the property were put on the market today , it would be worth approximately 6 million For the 2003 revaluation , he asked the Board to consider using the income approach exclusively for valuing large apartment complexes Commissioner Wade M Stewart noted that farmers have seen a big decrease in income , as have other businesses throughout the County He questioned how it would be fair to single out apartment complexes to be valued on the income approach Mr Williams responded that this type of real estate is different from other businesses as it takes considerable management to put property on the market , and prices are based on demand Commissioner Fred Smith pointed out all property is supposed to be valued at fair market price as of st January1 of each year , and to determine fair market value , the type of property has to be considered The value of most real estate is easy to determine based on square footage , however , with certain properties , such as large apartment complexes , you need to also consider income and sales information He noted the County has neverPage97 September 30 , 2002 Continued had an apartment complex like Amelia Village , and in his opinion , we should at least consider assessing the value based on the income approach As the County becomes more urbanized , this is something the Board will have to consider for other properties In response to a question from Commissioner Thomas M Moore concerning how shopping centers and motels are valued , Dale Campbell with CLT , noted that income and vacancy rates are considered when assessing a fair market value for these types of properties Commissioner Allen L Mims , Jr pointed out that with interest rates so low , people are buying homes instead of renting apartments He questioned how fair it is to the rest of the properties in the County to use the income approach for rental apartments , especially when that income is impacted by the economy Commissioner Smith noted the Board’s responsibility is to approve a schedule of values , and this is a complicated issue The County needs to look at a combination of market costs , income and sales to come up with a fair market value Ms Goddard stated that since there are no other properties like Amelia Village in the County , Mr Campbell and staff are reviewing outside income information and comparable sales of similar properties Once all the information is compiled , everything will be considered to make sure the assessment represents a fair market value In response to a question from Commissioner Mims on how the tax office rated the Parkside Apartments as compared to Amelia Village , Ms Goddard stated that Parkside has a greater occupancy rate , and the fair market value would be determined based on a combination of occupancy , income and other comparable properties Brenda Measamer , Vice President of Kenney Properties Management , LLC , stated in her opinion , the income approach is the only accurate way to determine fair market value for large apartment complexes She noted she has provided Ms Goddard with a detailed copy of their financial statement and offered to provide the same information to the Commissioners She pointed out that Amelia Village Apartment Complex is a secure , well managed property that is a real asset to Johnston County Commissioner Wade M Stewart asked how farm use values were determined Ms Goddard went over the percent increases by class of open , wooded and non - productive land , and explained she compared these with information from the surrounding counties that are also doing reassessments for 2003 She noted there has been no increase in land use value in Johnston County for the last 16 years Concerning the schedule , Ms Goddard noted that staff has found several changes that need to be made John Shallcross has pointed out there is no mention of retention ponds , which needs to be considered as that property has limited use Once these changes are made , the corrected information will be sent to the Board There being no further comments , the Chairman closed the public hearing Board Comments 2 Champion Property The Board discussed the old Champion property in Clayton adjacent to Clayton High School Following discussion , the Chairman appointed a committee consisting of himself and Commissioners Woodall and Mims to work with the Town of Clayton , their fire department and rescue squad , and Johnston County school officials to discuss a facilities plan that will suit everyone’s needs There being no further business , Commissioner Cookie Pope moved the Board adjourn Commissioner Wade M Stewart seconded the motion , which carried by unanimous vote _______________________________ James H Langdon , Jr , Chairman __________________________________ Patricia Baker , Deputy Clerk to the Board ______________________________________ Joyce H Ennis , Clerk to the BoardPage