4/28/2011

City Assessed Value

Posted by MJ

The LUSJ reported on the preliminary assessment role.

KLW Group has wound down an 18-month citywide property appraisal project, to straighten the “inventory” and establish full-market values for all properties. Whose values are higher, lower or the same since their last appraisal is about to be revealed, as tentative assessment notices start appearing in property owners’ mailboxes today, Acting Assessor Joseph Macaluso said.

Preliminarily, the 2011-12 assessment roll will show a year-over-year $110 million increase in property values citywide.

Theoretically, according to data turned over to the Common Council on Wednesday, the increase in total value drives a more-than $2 city tax rate cut...
...Total assessed value of the city is $740 million. Last year it was $630 million...
...In the residential property class, which includes single- and multi-family homes, 46 percent of properties are assessed at lower amounts than last year...
If the value of Lockport was just able to keep up with inflation from 2000, the city would have been "worth" $817M today. 46% of residential properties were not only unable to keep up with inflation but actually lost value compared to 2000. Welcome to the world of stagnant growth where additionally owners are penalized for improving their properties while those who do not are "rewarded" with lower tax bills.

Take 2 people making 40k a year. One invests in their real estate while the other invests in things they can "take with them", i.e. TVs, cars, motorcycles etc while making no improvements to their real estate. Which one is "using the system" more? Which one is more beneficial to the neighborhood/city? Is it the same person that supposedly is "paying their fare share?" I submit it is not.

Everybody's house value could drop 20% and we'd all have the same overall tax bill. Or, everybody could raise 20% and we'd all have the same tax bill. Which is the better scenario for the health and desirability of the city?

Until people start to get rewarded for investing in their property by the city (the market itself in the city stopped rewardinga long time ago) , only the bleeding hearts looking to save a piece of history or those who can aford nothing else, will risk investing in an area with declining property values. What is the city going to do about it? If nothing the city will contiue its low slide down. No amount of budget cutting will fix it.

54 comments:

Liz said...

I just looked up my new assessment online. It has MORE THAN DOUBLED. A lot of these improvements were done before I even purchased the house but since the city is too busy sitting on their butts doing nothing but increasing taxes each year and had not reassessed the hkuse in some time, this is somehow my fault. Had I known Lockport would penalize me for improving further and buying property in the city, I would have looked elsewhere.

In contrast, my "neighbor" - and by neighbor, I mean abandoned dump - has been in housing court for two years. His assessment went from $36k to $7k.

Yup, sure seems fair to me.

I am leaving this corrupt city the first chance I get. That is if I can sell this house to someone who can afford to pay the taxes in this dump.

Laurie said...

I received my letter today, up 15%. I will probably have the bank check it out, but I suppose it is reasonable considering some of the changes and other local properties. It is also in line with the zillow estimate now.

But, with all my calm acceptance, I have to acknowledge that without incentives the financially responsible thing to do now is maintain but not further improve my home above the depressed surroundings.

MJ said...

Mine is about the same. And one must remember it's only based on what is on the outside.

We can all gripe about how much the assessment is but in the end it is how the city chooses to tax us that will have the biggest effect on which direction the city goes. We either need to demand from our elected officials some progressive changes that promote investment/discourage neglect or vote in some that will.

Anonymous said...

An assesment based soley on lot size and square footage of living space would be the most fair way to do it. It shouldn't matter whether you have 2 bathrooms or 4, obviously if you have 4 bathrooms you have more square footage = higher assesment. Someone who owns a 1400 sq/ft home should pay the same whether its a complete dump or well maintained.

Xavier said...

Don't forget the 6% - 7% increase (again) in School taxes...

Xavier said...

My house is on a large lot and it's a large house. Unfortunately - the actual HOUSE needs work and NO ONE will buy it due to the neighborhood. That sort of thing must be considered - otherwise it's not a "fair" assessment.

Anonymous said...

my assesment was 37000.00 an jumped to 69000.00 an my property is land locked i mow grass in front yard an have to take lawnmower thru the house to mow the back i own 17 inches on left side of my house an maybe 1 ft on the right side of house i got a 32000.00 add on. is this city nuts or something. come on people get out an protest. not just a few people but lets get thousands of people to protest. enough is enough i will let this place go to forclosur an move to another state. city is lafing all the way to the bank. i pity the poor people of lockport.

Anonymous said...

Xavier you rent you do not own a house.

MJ said...

Anon 10:02. You do have a huge jump and it would probably be in your best interest to go down and visit the assessors (i.e. they are not city employess so blaming the "city" really does not apply.)

And the city does not "laugh all the way to the bank." The city only collects the amount it approves to spend each year, regardless of what the asessments are. In your case, you are just paying a bigger share of it since your assessment doubled.

As I said, go meet with the assessors. And if you do, please report back what they told you were their justifications. A doubling of your tax burden is very steep. I doubt you are using twice the city services.

Anonymous said...

It doesn't matter how many city services you use, it's the value of your house. It really sucks, the few good people left in Lockport take care of their houses, pay the most taxes and probably use the least amount of city services. Meanwhile the low lifes that pretty much now occupy 75% of the city pay the least taxes and use most of the city services.
Think about Lockport right now, isn't that 75% slum number pretty close? I wouldn't dream of living in the war zone )(Gennessee, Waterman, Washburn, etc area), north end, east end is going downhill fast (Juniper, side streets near hospital), etc. The only spot that is OK and not being threatened by the slum creep that I can think of is the south east area near Continental.
The city is going downhill much faster than I would have ever expected, it's no surprise taxes are up and the school scores are down.
It's amazinbg, but everyone I talk to says they are advising their kids to nojt even think about living in Lockport.
It's sad.

Anonymous said...

Sorry, those weren't spelling mistakes in the last post but typo's!

MJ said...

I understand and that's why the conversation above. A tax structure purely based on an assessed value only works in a new growing area with rising property values. The only reason it's used is because it's simple for the municipality to administor and is sold on the "rich" paying their "fare share". In an older area facing problems of older un-updated housing, stagnant income growth, etc it will only help kill it. It will punish the remaining few looking to take the risk and invest.

That's why I'm for the garbage privatization etc. Most anything that takes large line items out of the general taxation "black box" and divies them up with greater equality.

Even police or fire I'd be happy to see as line item fees. We could easily see how much more they are costing us each year. On the residential side split it up per residence and not structure. Want to have 4 apartments in the builing? Well pay 4x for the police and fire protection. It may just become beneficial for the landlord to make 2 higher rent apartments instead of 4 lower ones. No more paying taxes on a sub 10k assessment while adding 4x to the police work load.

The part of the budget left to based off of assessment would be left for items such as the running of city hall, streets, beautification (parks, trees), etc. Items that over all help the city become a better place or are used to "run" it.

Any change would not be without growing pains that would need to be planned for. I could see "landloards" dropping structures etc as they may become unprofitable. Plans would need to be in place to either aid/transition the current owner in updating the property or doing the same for a new owner who would commit to certain work.

There are better ways out there but they are no with out risk. But without taking some risk we will continue nowhere but down.

Anonymous said...

I would suggest though the tax rate perhaps be set by number of bedrooms. One bedroom apartments shouldn't be taxed like a 5 bedroom house.

G,I,Joe said...

I think you're confused..a one bedroom apartment would be taxed..the entire property would...right?

Lot size, and square footage...that's the only fair way to do it.

Anonymous said...

i was referring to MJ's proposal to bill based on number of units. Instead of number of units I said number of units plus number of bedrooms, which should correlate a little to number of residents. Except of course Gennessee/Waterman/Washburn area, where who knows how many people they stuff in each bedroom.

G.I.Joe said...

ok...but I think commercial property should be assessed differently..a single family home, and an investment property are already taxed differently. I don't like what's happening on Washburn either. We have a government that's afraid to do anything. They just make excuses, as the area gets worse and worse.

Anonymous said...

I just did some looking my assessment is 94,000 my neighbor/ nextdoor neighbor same house design theirs has an addition/with extra a bathroom is 73,000.......WTF?????????????

MJ said...

As said above, go talk to KLW. It will be the only way you will get an answer and the ability to get it adjusted. And if you do, please relate the information you gathered here. Many, including I, would find it useful in understanding the process if nothing else.

Xavier said...

A previous poster just hit a nerve with me.
I have been encouraging my children to LEAVE LOCKPORT.
Do you understand how difficult that is for a parent to tell their kids to get outta here? It breaks my heart - but it's their only chance at a decent life.
They don't want to leave, and they really don't want to leave me (I've had to promise to go where they go...that's not what a parent should do.)
The City is falling down around us and the welfare folks are dragging it down further. Moving DSS to Main Street was a WONDERFUL decision.
There comes a point when it's just not worth it anymore. How much do you invest in your home? The surrounding homes are rotten, yours sticks out like a sore thumb, so you get a $40K assessment increase while their's continue to deteriorate?

P.S. You're STILL wrong. Shall I give you a hint? I don't own the house I live in - I RENT imine to good people.

Anonymous said...

Reassesment hit me hard. Now im gonna pay 200.00 more a year to have my garbage picked up as well. Ive had enough! Someone besides Jack Smith run against Tuck I cant take it anymore enough is enough!

MJ said...

Again: what does this have to do with Tucker? The city hasn't done assessments in 10 years and it had to be done regardless of who is in office. Part of our state funding results from how current our assessments are. Plus it was done by a third party, not someone in city hall under Tucker's control.

Go talk to KLW and find out why and if you can prove a case for lowering it. Please let us know what you find out if you do.

Anonymous said...

Yes maybe someone like Mike Pillot could run.

Anonymous said...

My assessment went up by 5k but my taxes dropped by almost $500! Only in lkpt.....and my home is over 6k sq.....

moe said...

Anon 525
Maybe you don't remember but Mike Pilot was not a very good candidate....

Anonymous said...

Anon. 1:30 Why don't you run?

Anonymous said...

Pilot for mayor time for a change.

Anonymous said...

Oh was Pilot that cop that gave it a try last time? Oh no definitely not him.

MJ said...

An assessment can go up on a property but the overall taxes paid go down if property values above yours went up a higer percentage or, in a dream world, the overall budget goes down enough. It's not "only in Lkpt" it happens everywhere.

All assessments do is divide up the overall budget. They do not "make the city more money" etc. The budget is the budget regardless of what assessments are.

Anonymous said...

the lower impact taxes estimated on the letters are clearly not real world numbers and are definitely going to go up with the school budget increase. Just wanted to be sure no one was out spending the difference.

MJ said...

I believe those numbers were based off of last year's budget values with the proposed assessment values applied. So yes, this year's new school, city, and county budgets will change the value for sure.

Xavier said...

The assessment on my home has increased by 50%.
If ANYONE's home in the City has appreciated that much legitimately, I'd like to see it.
This assessment is NOT Mayor Tucker's fault. I would hazard a guess that he gets the blame for anything that goes wrong in the City-including the new assessment.
It had to be done. We will fight our new valuation tooth and nail. This is not Tucker's fault. I wish people would get off the "blame Tucker" train.

Anonymous said...

Unfortunately outside circumstances have a way of reflecting on the people that are in control. Tucker was able to use it to his advantage years ago...for what it's worth.

Anonymous said...

Let's also not forget the garbage fee you will now be charged that was originally in your taxes.

MJ said...

http://lockportforum.blogspot.com/2010/11/2011-budget-passed.html

The city budget last year was reduced $1.8 million most of which was the $1.3 million of the trash collection that was removed.

And of coarse, that means the cost of garbage pickup will have nothing to do with assessments at all as it most likely shouldn't. I feel people should be responsible for what they generate. No different then when water went to metered billing.

Anonymous said...

No but when people see a reduction of say $200 in their proposed taxes they must take into account that had the garbage not been privatized, it may have been a wash.

G.I.Joe said...

where can I get the scoop on the "privatization" of our trash collection program.I want to make sure that if am receiving less service, and paying more, that the politicians responsible for it pay at the polls.

MJ said...

You most likely will be paying more unless you own one of the higher assessed properties in the city. Last year the taxt rate went down $.69/1k. So for a $75k house you would of saved $52 on your tax bill. You most likely will be paying more than that for the smallest tote. I know I'll be paying more than I saved in tax money.

The reason you will be paying more is that those higher assessed properties have been subsidizing all the lower assessed properties garbage collection. Those going up will just finally be paying a market rate based on what they throw out.

The city itself will be seeing a savings. $1.3M minus what ever the bids come in at. If they come in at higher than $1.3M the city can keep the system as is. It also saves us from additional new employees on our pension and health system long term. These have eaten up almost any savings the city may have seen in the past from doing it "in house".

No different than the change from flat water fees to meters. Those who filled pools, watered lawns daily, religiously washed cars, etc were subsidized by those who didn't use as much. At least there is was a tad more fair as everyone paid a flat fee to "use what they could" instead of how much their property was worth.

The value of my property should have nothing to do with how much I pay for garbage, water etc. How much I use those services should.

Patti Starr said...

MJ -
Do you know if a decision has been taken vis a vis the businesses being allowed to put out as much as they want every day, and thereafter have it picked up every day?
I fully believe in recycling and, when push comes to shove with my household budget, I'll buy the tote and try to anticipate heavy weeks and buy the tags as well.
However, if all are not treated equally, I'll scream bloody murder. I rarely fill my existing tote and often don't even take it to the curb every week, but, if businesses, restaurants, non-profits, etc. are still going to be able to put out as much as they want on as many days as they want, I will not like it.
I will also want to see the large houses which have been chopped up into 5-6 apartments required to pay their fair share as well. At least one tote per apartment. This does, of course, require the City to monitor the (literal) crap people put out or dump elsewhere. The fellow who's supposed to be doing this is obviously not doing a decent job or the Court would be overflowing every day and twice on Sunday.
I, as with most residents, do my best to keep our neighborhoods neat, clean and attractive.
I'll ask again if anyone knows if the City implemented the oft spoken of requirement that absentee landlords have a local agent for service of process.
I'm sick and tired of working my butt off when the guy next door does nothing which definitely lowers the value of my house. I lose incentive to work.
I'd appreciate anyone's knowledge on this issue. (Jeff?)
Thank you

Anonymous said...

Your service is not gonna be the same. 1 can every week no large item pickup. Word is businesses are still gonna get picked up by city on taxpayers dime. You think they are gonna make Ulrich pay to have his concerts picked up lol the free concerts that Tuck lies about how much they truly cost!

Moe said...

One can..that won't work...what about cardboard and such..anyone know?

Anonymous said...

If voters do not hold the leadership of the city accountable who should we hold accountable? After you shift trash collection to one of Tuck's buddies (who will raise collection rates right after the elections) what else does the city do for us? Run a poor recreation program--a water and sewer dept which we are billed for separately--and do a terrible job of maintaining the roads. Oh yeah--forgot the concerts. WOW...thanks Tuck!

Anonymous said...

At the Assessment meetings it seemed to me that they got all their information on the property from Zillow. They spout off how much sq footage you have, how many restrooms, bedrooms etc. and say this is the information we have on your house with a sheet just like Zillow has on their site. It did not even seem like they went by to take a look or a look at the neighborhood before they sent them out. They ask you why you think the assessment should not go up. So you have to defend your reasoning or just blindly except their price. Or at minimum you have to pay $250.00 fee to get a private assessment company for each property and if you really do it right you need to pay your attorney to go fight it for you so they know you are serious. So either way you will pay, pay, pay. I tried to sell my house for 6 months last year when the government was offering the $8000.00 credit if you purchased one, to no avail. If they were anywhere else they may be worth more but nonetheless they are not elsewhere and the increase is huge. Especially, when your neighbors house is falling down on yours, the dealing can be seen out your window and then they speak of garbage fees, what's next? Let's just see how much it does cost me to fight it, shall we? (to be continued...)

Anonymous said...

yep seems like you loose either way . and the city knows this. city has a lience to steel

Moe said...

Politicians get too comfortable after being in office for too long. They think they can do anything they want. they don't care how it hurts the regular folks as long as someone at the top is making out. We need what we've never had under the Tucker admin. Open government.

Anonymous said...

mike pilot is a good man known him personally a long time ago i will vote for him

Moe said...

Ya I'm sure Pilot is a good man...that doesn't make him a good Mayor. Some of the quotes I heard from him last time he ran were down right scary.

A vote for Pilot is a WASTED vote.........

Anonymous said...

Mike Pilot represents the conspiracy obsessed lunatic fringe...

Anonymous said...

change is needed Tucker is an absolute maniac now with all his power... some times u need the lesser of two evils. Dick Mullaney is really the one who makes all the decisions..and he is supposed to be retiring lets clean house bye voting in november and getting rid of tucker and his four puppets on the council

Patti said...

The LAST person in Lockport who should EVER be considered to be a part of
"the conspiracy obsessed lunatic fringe"
is Mike Pilot.
He's a good man - was a great street cop and detective, and would be a great Mayor.

(& I'm a Republican...)

Anonymous said...

Mike Pilot's platform was "corruption" he couldn't prove. What does he know about a budget? Assessments? housing, schools, infrastructure?

If he's a good crime fighter great! we need one!

But not sitting in the Mayor's chair. That's no place for "a beat cop"

Patti said...

And what similar experience did Mike Tucker have? Sitting in a trailer out at Harrison Radiator? I like Mike Tucker and am not going to get caught up in who's better, or worse. I also like Mike Pilot. I've known him for 20 years and my comment stands.
He was NOT a beat cop except when he was younger and less experienced. And how do you suppose Mike would get the information to PROVE these allegations? I'M still waiting on a FOIA request which is months old.
He was a Detective and worked on several white collar crimes, which are VERY hard to prove. He's also a nice guy and a devoted family man. You sure can't sling mud at HIM. He hasn't beaten up his kids or his wife lately... ;- ) THIS IS A JOKE!

Anonymous said...

You mean Tucker slept in the trailer..

Anonymous said...

sorry...pilot doesn't do it for me.....

Anonymous said...

King Tuck (King Tuck)
Now when he was a young man,
He never thought he’d see
People stand in line to see the burger king.
(King Tuck) How’d you get so flubby?
(Flubby Tuck) Did you do the food bar?
Born in lockport,
Moved to lockport (king Tuck).
(king Tuck) Now, if I’d known
they’d line up just to see him,
I’d taken all my money
And bought me a politician. (king Tuck)
(Tuck, Tuck) Dancin’ by the Erie, (Tuck, Tuck)
He gave his life for tourism.
Maziers idol!
He’s a Politician.
Now, when I die,
now don’t think I’m a nut,
don’t want no fancy title
Just one like ole king Tuck. (king Tuck)
He coulda bought a vote, (king Tuck)
living in his sweaties, (king Tuck)
Now i say it's time to end his Erie crime.
Born in Lockport
He was just a burger king
King Tuck!

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