2010-11-03 Cost of Government Commission Minutes

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MR. SITKO: There are actually three separate programs that we are administering at this moment. One is a 20-year dedication which is slowly being phased out. The other is a 10-year dedication. In both cases you have to make an application and commit yourself to being in this agricultural production for that period of time to get the benefit. The other one is called the non-dedicated, which you can go in and out of on an annual basis. There are differences. The longer the term you commit, the lower the rate that is applied to your land. The non-dedicated program once again, you apply, you have to be an agricultural production as of the first of January preceding the tax year that you’re going get the benefit for. MR. ARMOUR: What is the penalty if somebody applies and doesn’t do any ag? MR. SITKO: We maintain both the market value and the preferential rate on the land and you would be liable for what is called the roll back tax for the period you have received the benefit. It depends on what part or how long you’ve been in the program. It can go back as much as five years. And you’d pay the difference between the benefit you receive and what you would normally pay plus a 10% penalty. MS. O’HARA: Just following up on those questions. What type of documentation do you require to demonstrate agricultural activity? Do you require tax statements? MR. SITKO: At this time no. Only field inspections. This is why the ag evaluation analysis specialist was very helpful. He was a trained agricultural specialist and he could visit the properties. Our field appraisers are doing that work right now. Now the ordinances do not call for any specific documentation to be submitted outside of the native forest program, which is kind of a side shot where you have to have a report from the forester. MS. O’HARA: Would that possibly resolve some of the need to have staff physically inspect properties if you had required it through financial data? MR. SITKO: I would like that, but that has not been the wish of the council at this point. MS. O’HARA: Another question with regard to your appraisers. They must be using some type software or inaudible to conduct these. And I understand that you defunded these two positions that help you come up with the current monthly values. So is there any improvement in technology devices that might assist your appraisers in doing their job or licenses to outside information data basis that would provide the type of information that your unfunded position would provide? MR. SITKO: Real estate by its very nature is local. So fundamentally most of the outside data basis that I can tap, I’m already tapping one way or the other, such as the home mortgage amounts. The point of the evaluation analyst is one of their duty was to collect the data, be it agricultural data or evaluation data. So right now, the assistant administrator and I are doing as much as we can, and doing that. As far as software concern, yes our software is 13 years old but it’s still functional. There are improvements but at this point I don’t see – there are newer and nicer programs, let me put it that way. But I don’t see any gain for the amount that would have to be spent at this moment. This is something that we are probably going to be looking at within three 9