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TO:

Honorable Mayor and Members of the Common Council

FROM:

Kelly Nieforth, Director of Community Development

DATE:

October 8, 2024

SUBJECT:

Res 24-547 Approve Professional Service Agreement with Associated Appraisal Consultants, Inc. for 2025 Commercial Assessment Revaluation ($285,000)

BACKGROUND

The Wisconsin Department of Revenue (DOR) requires timely and accurate revaluations to ensure property assessments in the city are equitable among all property classes. In 2024, the DOR determined that the City’s commercial property assessment values were not in compliance with the DOR’s required ratios in relation to the equalized value in the City. The City’s residential assessment values were in compliance, but the DOR requires that both major property classes within the City (residential and commercial) be revalued at the same time to ensure that the properties are equitably assessed. As a result, another revaluation is necessary in 2025 to adjust the assessment values to meet state requirements.

ANALYSIS

To achieve this, the City has selected Associated Appraisal Consultants, Inc. (AAC) following a review and selection process. This firm has been chosen based on their proven expertise in municipal property assessments and strong reputation with numerous successful engagements with other municipalities in Wisconsin. AAC would physically inspect 100% of the improved commercial properties and update the assessment records to ensure that the values reflect recent market value sales utilizing mass appraisal methods. A full inspection would include both interior and exterior walk-throughs to update pictures and sketches of the properties. AAC would assist the city with Open Book, Board of Review, and marketing for the revaluation as it relates to commercial properties. Internal city staff will complete the revaluation for the residential property class, as they did for the 2024 revaluation.

FISCAL IMPACT

The contract for the 2025 Commercial Assessment Revaluation services will cost $285,000. The plan is to fund this through our fund balance, as our General Fund balance is in excess of its maximum per our Fund Balance policy and this is a one-time expenditure.

RECOMMENDATION

The City Council approves the professional services agreement with Associated Appraisal Consultants, Inc. for the 2025 Commercial Assessment Revaluation for $285,000.

Attachments

Res 24-547

AAC - City of Oshkosh 2025-2027 Assessment Services Proposal