W. Caldwell to Begin Revaluation of All Properties

All West Caldwell residents will soon receive an introductory letter in the mail—a formal greeting will follow in person.

Beginning in early July, Appraisal Systems Inc., will conduct a revaluation of all town properties, a process that will last approximately four to five months.

Appraisal Systems, which conducted the town's last revaluation in 1988, explained the process to the governing body during Tuesday night's council meeting and will provide a presentation to the public on Tuesday, June 29 and Wednesday, June 30 at the James Caldwell High School cafeteria at 7 p.m.

"Appraisal Systems was the lowest bidder in the process as well as they have a lot of experience both with us—they performed the last West Caldwell revaluation in the 1988 tax year—and they have also performed revaluations in the surrounding communities," said Richard Hamilton, the town's tax assessor.

Appraisal Systems has conducted revaluations in North Caldwell, Roseland, Fairfield, Essex Fells, Montclair, West Orange and most recently in Verona.

Ernie Del Guercio Sr., CEO of Appraisal Systems, said it's important for residents to learn more about the process by attending one of the two information sessions at Caldwell High where an approximately 45-minute PowerPoint presentation will be given followed by a question-and-answer forum. 

In addition, a private one-on-one session will be held for each interested resident following the revaluation to discuss each property's assessed value.

However, Del Guercio said the introductory meetings are generally only attended by 12 to 18 percent of the population and about 20 percent schedule an individual session after the revaluation.

"It's very important that we speak to as many people as possible to explain the process of revaluation," he said. "What is critical is that after the letters of value go out, public or group meetings are ineffective and are not recommended. The meetings that occur at that point are one-on-one.

"Every taxpayer will have the opportunity to meet with a qualified representative of Appraisal Systems. All of the information that we collect on their individual properties and the process of how the value was arrived at will be explained in detail."

In addition to each home's assessed value, Appraisal Systems will also compile and present to each interested resident recent property sales figures in the area, Del Guercio said. All of this information will also be available on the company's Web site.

"In addition to speaking to individual taxpayers and sharing with them all of the information that was gathered to arrive at their particular value, not only was specific to their property, but all of the sales were analyzed," Del Guercio said.

"We present it to them in exhibit form all of the homes that have sold in the most immediate preceding period. They have an opportunity to see what was used to arrive at their value. We give them the information to prove us wrong, if you will, because in the final analysis all we're looking for is fairness and equity."

Hamilton reminded residents that revaluations are not a revenue source, but instead a way of finding a better balance within the town.

"Revaluations are revenue-neutral. We don't raise any more revenue, but what we are doing is rebalancing the equation," he said. "Last year, our tax rate was a little over $4. We were assessing at a ratio of about 45 percent. Think of it as a scale. As our assessments rose to 100 percent, our tax rate will change to that at the end of the equation."

Councilwoman Rosemarie Sutherlin urged residents to permit members of Appraisal Systems into their homes so a fair revaluation of each property can be assessed.

"Please let these people into your home. Let them evaluate it. Talk to them. Show them everything, because if you don't, it may cause you problems down the line," she said.

"I know a lot of people are concerned and they don't want to let them in, but they are going to be well-marked. If you have any doubts, call the police department. To get a fair revaluation of your home and your property, let these men and women in to do their jobs."

According to Del Guercio, about 95 percent of residents usually permit access to their homes, while the remaining residents are subject to the "highest, most reasonable" estimate.

"We respect the First Amendment right to privacy. The assessor cannot demand to enter a property. If you don't want to let us into your house, we will estimate and we will follow case law. The language in case law is that the assessor may estimate at its highest, most reasonable potential," Del Guercio said.

"I know there's some subjectivity in that language, but if you have a story-and-a-half Cape Cod and it has a basement, it's reasonable to assume the basement is finished. It's reasonable to assume that the half-story is finished. It's reasonable to assume the kitchen has been modernized as have the bathrooms. That has withstood case law."

"It's important that we give those 95 percent of the taxpayers in West Caldwell who have cooperated with the program the fact that those who did not for whatever reason can gain no advantage and cannot manipulate the system."