Property Update Flowchart

2. Public Relations Plan Develop Work plan Collect Required Physical Data Quality Control Procedures Collect/Verify Specific Market Data Sales & Improvement Data Income & Expense Data Market Analysis Cost Income Data Collection Field Review & Value Correlation Data Collection Informal Hearings Project Delivery Property Update Flowchart

3. Benefits of an Update • Corrects disproportionate taxation • Adjusts value for market shifts • Captures all new construction • Provides access to all information with computerized property files *NH Department of Revenue Administration Conducts own ratio studies of sales to assessment and wants towns to be between 110% to 90% of Fair Market Value (Sale to Assessment) Chester’s equalization for 2005 is 54% (Sale to assessment)

4. Data Collection and Verification of Sales • Foundation of Project • Information Collected • Bedrooms and Bathrooms • Attics and Basements • Exterior Measurements • Outbuildings • Land Topography • Staff Project Manager • Crew Chiefs (review day to day work) • Data Collectors(most visible members of the team) • Quality Control (data entry)

5. Exterior Inspection • Style • Quality/Design • Story Height • Roof Structure • Roof Covering • Wall Construction • Year Built

6. Interior Inspection • Room Count • Baths Count • Wall Finish • Floor Finish • Heating • Bath Style • Kitchen Style • Quality

7. Sales Analysis • Town Market Determines Values • No Preconceived Estimates of Value • In-Depth Study of Town Sales • Determine Land Prices • Determine Building Value and Depreciation • Delineate Neighborhoods • Develop Computer Models Based On Market

8. Valuation • Analysis of Market Information • Sales • Income and Expense Info -- Local Realtors/Agents/Banks • Land Valuation by Location • Comparable Properties • Review of All Values in the Field • Feedback from Informal Hearings $$$

9. Median Sale Price in Chester • Single Family Home $334,000 • Condominium $226,000 • Vacant building lot $160,000

10. Sales Ratio Studies • Please see supplemental handouts for details: • 2 years sales are in at an assessment to sale ratio of 102% with a COD of 6.06% • 1 year of sales, most recent of 4/1/05 through 3/31/06 in at A/S ratio of 100% with a COD of 6.33% • 2ND Quarter of 2006 4/1/06 through 6/30/06 shows A/S ratio of 99% with a COD of 9.34% • State of NH Dept of Revenue looks for A/S ratio of 110% – 90% and a COD of 10% or less

11. Old to New Assessment • For 161 sale properties from time of 4/1/2004 through 3/31/2006, the old to new increase in assessed value is 100% or double in valuation. • Old Value $26,129,400 vs New Value $51,722,100 • Old to New Preliminary Town Value increase of 87% Approx $318,698,900 old to approx. $594,969,315. Increase is slightly lower overall due to Current Use Assessed values and to Utility Values not completed.

12. Chester’s Project Schedule 2005 properties * Project Set Up/Start Up 11/2005 * Sales Verification of last 2 years 11/2005 - 06/2006 * Sale Properties (approx. 200) 02/2006 - 06/2006 * Sales and Cost Analysis 02/2006 - 05/2006 * Convert current database to new 02/2006 - 03/2006 * Field Review (Exterior Inspections) 06/2006 - 07/2006 * Data Entry 02/2006 - 07/2006 * Town Review of Values 7/13 – 7/26 * Notices Sent to Taxpayers 7/28 * Informal Hearings 8/7 – 8/11 * Final Notices for those attending Hearings 8/14 * Finalization of Project 08/15/2006

13. Informal Hearing Process • Final Review of Values by Town Assessor • Notification to Taxpayers of New Assessment (est. 7/28) • Informal Hearings Begin (est. Aug. 7) • Valuation Review • Change Notice as a result of Hearings (est. Aug. 14) • Appeal to Chester Assessor’s Office by March 1, 2007 • Appeal to Board of Land and Tax Appeals summer 2007

14. Web Access

15. Comparable Sales