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HomeMy WebLinkAbout20222698.tiff2 0 2 2 WELD COUNTY PROPERTY ASSESSMENT STUDY C o1stt4un; Go`'t-;on S °/26/22 cc. AS R (DK) q/22/22 tiVILDIZOSE \ITN \t- \I I `.' (11•fl)ktTE[l Audit Division 2022-2698 WILDROSE AMAMI. ',COMMUTED Audit Division September 15, 2022 Ms. Natalie Mullis Director of Research Colorado Legislative Council Room 029, State Capitol Building Denver, Colorado 80203 RE: Final Report for the 2022 Colorado Property Assessment Study Dear Ms. Mullis: Wildrose Appraisal Inc. -Audit Division is pleased to submit the Final Reports for the 2022 Colorado Property Assessment Study. These reports are the result of two analyses: A procedural audit and a statistical audit. The procedural audit examines all classes of property. It specifically looks at how the assessor develops economic areas, confirms and qualifies sales, develops time adjustments and performs periodic physical property inspections. The audit reviews the procedures for determining subdivision absorption and subdivision discounting. Valuation methodology is examined for residential properties and commercial properties. Procedures are reviewed for producing mines, oil and gas leaseholds and lands producing, producing coal mines, producing earth and stone products, severed mineral interests, and non - producing patented mining claims. Statistical audits are performed on vacant land, residential properties, commercial/industrial properties and agricultural land. A statistical analysis is performed for personal property compliance on the eleven largest counties: Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo and Weld. The remaining counties receive a personal property procedural study. Wildrose Appraisal Inc. — Audit Division appreciates the opportunity to be of service to the State of Colorado. Please contact us with any questions or concerns. Harry J. Fuller Project Manager Wildrose Appraisal Inc. — Audit Division WILDROSE 101I, APPRAM,i!_ heORPORATIT. Audit Division TABLE OF CONTENTS Introduction 3 Regional/Historical Sketch of Weld County 4 Ratio Analysis 6 Time Trending Verification 8 Sold/Unsold Analysis 9 Agricultural Land Study 11 Agricultural Land 11 Agricultural Outbuildings 12 Agricultural Land Under Improvements 13 Sales Verification 14 Economic Area Review and Evaluation 16 Natural Resources 17 Earth and Stone Products 17 Producing Oil and Gas 17 Vacant Land 18 Possessory Interest Properties 19 Personal Property Audit 20 Wildrose Auditor Staff 22 Appendices 2 3 2022 Weld County Property Assessment Study Page 2 WILD APPR )Ki:)K.%TFt) Audit Division INTRODUCTION Colo o The State Board of Equalization (SBOE) reviews assessments for conformance to the Constitution. The SBOE will order revaluations for counties whose valuations do not reflect the proper valuation period level of value. The statutory basis for the audit is found in C.R.S. 39-1-104 (16)(a)(b) and (c). The legislative council sets forth two criteria that are the focus of the audit group: To determine whether each county assessor is applying correctly the constitutional and statutory provisions, compliance requirements of the State Board of Equalization, and the manuals published by the State Property Tax Administrator to arrive at the actual value of each class of property. To determine if each assessor is applying correctly the provisions of law to the actual values when arriving at valuations for assessment of all locally valued properties subject to the property tax. The property assessment audit conducts a two- part analysis: A procedural analysis and a statistical analysis. The procedural analysis includes all classes of property and specifically looks at how the assessor develops economic areas, confirms and qualifies sales, and develops time adjustments. The audit also examines the procedures for adequately discovering, classifying and valuing agricultural outbuildings, discovering subdivision build -out and subdivision discounting procedures. Valuation methodology for vacant land, improved residential properties and commercial properties is examined. Procedures for producing mines, oil and gas leaseholds and lands producing, producing coal mines, producing earth and stone products, severed mineral interests and non -producing patented mining claims are also reviewed. Statistical analysis is performed on vacant land, residential properties, commercial/industrial properties, agricultural land, and personal property. The statistical study results are compared with State Board of Equalization compliance requirements and the manuals published by the State Property Tax Administrator. Wildrose Audit has completed the Property Assessment Study for 2022 and is pleased to report its findings for Weld County in the following report. 2022 Weld County Property Assessment Study -- Page 3 WILD APPRAISAL I %CORPORA rtl► Audit Division REGIONAL/HISTORICAL SKETCH OF WELD COUNTY Regional Information Weld County is located in the Front Range region of Colorado. The Colorado Front Range is a colloquial geographic term for the populated areas of the State that are just east of the foothills of the Front Range. It includes MOFFAT 41 RIO BLANCO 52 • M ESA 39 Craig • Meeker • ROUTT 54 • Steamboat Spgs GARFIELD 23 Glenwood Spgs Grand Junction DELTA 15 • Delta • Montrose • M0NTROSE 43 Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo, and Weld counties. Walden • JACKSON 29 GRAND 25 Hot Suyrhu vpring5 Eagle . EAGLE 19 PITKIN • 49 Aspen Le vllc LAKE 33 SUMMI 59 'sr LARIMER 35 • Ft. Collins T BOULDER • Boulder G.& IY 4 w$ret CLEAR CREEK 10 kenridge Fairplay • PARK 47 GUNNISON CHAFFEE 26 8 • Gunnison Salida SAN hi1GUEL 57 Tellurid• e Dove Creek • DOLORES 17 llverton SAN JUAN Cortez . • Durango MONTEZUMA LA PLATA 42 34 CU RAY 46 • Ourve HIINSDALE Lake City 27 • Creede MINERAL 40 DelNorte RIO GRANDE 53 Golder.• JEFFERSON 30 WELD 62 • Greeley MORGAN 44 Fort Morgan LOGAN 8 • 3Sterling Jularurg SEDGW ICK Holyoke 48• PHILLIPS • OMfEL D 88 ADAMS 1 DENVER 3 16 ARAPAH OE Akron • WASHINGTON 61 Wray . YUMA 63 Castle Rock . DOUGLAS 18 h Iowa 28 • ELBERT SAC U ACH E 55 Saguache • TELLER 60 Colorado Spgs • EL PASO Cripple Creek 21 FREMONT. 22 Canon City Westclifte •CUSTER 14 1 Pagosa Spgs . ARCHULETA LETA 4 A LAMOSA 2 d/am2osa CON EJOS 11 • Conejos Hugo LINCOLN 37 . Burlington KIT CARSON 32 Cheyenne CHEYENNi:e1/s 9 Pueblo . PUEBLO 51 Trinidad • CROWLEY 13 ;rcAva La Junta • OTERO 46 Eads • KIOWA 31 Las Animas • BENT 6 Lamar PROW ERS 50 LAS ANIMAS 36 Springfield • RAGA 5 2022 Weld County Property Assessment Study — Page 4 WILDROSE AnntAn»..L hcnaniwreu Audit Division Historical Information Weld County has approximately 3,987.2 square miles and an estimated population of approximately 324,492 people, according to the U.S. Census Bureau's 2020 estimated census data. This represents a 28.3 percent change from April 1, 2010 to July 1, 2019. Weld County covers an area of 4,004 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined. Major Stephen H. Long made an expedition to the area now known as Weld County in 1821. In 1835 a government expedition came through the general area; the next year a member of that party, Lt. Lancaster Lupton, returned to establish a trading post located just north of the present town of Fort Lupton. In 1837 Colonel Ceran St. Vrain established Fort St. Vrain; Fort Vasquez was built south of Platteville about 1840. The latter was rebuilt in the 1930's by the State Historical Society. The county seat is Greeley which began as the Union Colony, which was founded in 1869 as an experimental utopian community of "high moral standards" by Nathan C. Meeker, a newspaper reporter from New York City. Meeker purchased a site at the confluence of the Cache la Poudre and South Platte Rivers (that included the area of Lathamvan Overland Trail station), halfway between Cheyenne and Denver along the tracks of the Denver Pacific Railroad formerly known as the "Island Grove Ranch." The name Union Colony was later changed to Greeley in honor of Horace Greeley, who was Meeker's editor at the New York Tribune, and popularized the phrase "Go West, young man." Weld County's cultural assets include Centennial Village, an authentic recreation of pioneer life on the Colorado plains. The Meeker Museum in Greeley is a national historic site. Fort Vasquez in southern Weld County has an exciting history as an early Colorado trading post. The Greeley Philharmonic Orchestra is one of the oldest symphony orchestra west of the Mississippi. The University of Northern Colorado's Little Theatre of the Rockies is one of America's premier college dramatic organizations. (www.co.weld.co.us, www.wikipedia.ow) 2022 Weld County Property Asseeeoo of Stud} Page WILDROSE Audit Division RATIO ANALYSIS Methodology All significant classes of property were analyzed. Sales were collected for each property class over the eighteen month period from January 1, 2019 through June 30th, 2020. Property classes with less than thirty sales had the sales period extended in six month increments up to an additional forty-two months. If this extended sales period did not produce the minimum thirty qualified sales, the Audit performed supplemental appraisals to reach the minimum. Although it was required that we examine the median and coefficient of dispersion for all counties, we also calculated the weighted mean and price -related differential for each class of property. Counties were not passed or failed by these latter measures, but were counseled if there were anomalies noted during our analysis. Qualified sales were based on the qualification code used by each county, which were typically coded as either "Q" or "C." The ratio analysis included all sales. The data was trimmed for counties with obvious outliers using IAA() standards for data analysis. In every case, we examined the loss in data from trimming to ensure that only true outliers were excluded. Any county with a significant portion of sales excluded by this trimming method was examined further. No county was allowed to pass the audit if more than 5% of the sales were "lost" because of trimming. All sixty-four counties were examined for compliance on the economic area level. Where there were sufficient sales data, the neighborhood and subdivision levels were tested for compliance. Although counties are determined to be in or out of compliance at the class level, non -compliant economic areas, neighborhoods and subdivisions (where applicable) were discussed with the Assessor. Data on the individual economic areas, neighborhoods and subdivisions are found in the STATISTICAL APPENDIX. Conclusions For this final analysis report, the minimum acceptable statistical standards allowed by the State Board of Equalization are: ALLOWABLE STANDARDS RATIO GRID Property Class Commercial /Industrial Condominium Single Family Vacant Land Unweighted Coefficient of Median Ratio Dispersion Between .95-1.05 Less than 20.99 Between .95-1.05 Less than 15.99 Between .95-1.05 Less than 15.99 Between .95-1.05 Less than 20.99 2022 Weld County Property Assessment Study Page 6 fifeWILDRCSE . APPRAML IscoaroRATFD Audit Division The results for Weld County are: Weld County Ratio Grid Number of Unweighted Price Coefficient Qualified Median Related of Time Trend Property Class Sales Ratio Differential Dispersion Analysis Commercial/Industrial 216 0.993 1.007 6.4 Compliant Single Family 11,461 0.971 1.005 4.9 Compliant Vacant Land 215 1.000 1.010 10 Compliant After applying the above described methodologies, it is concluded from the sales ratios that Weld County is in compliance with SBOE, DPT, and Colorado State Statute valuation guidelines. Recommendations None O' ? `Veld County Property Asses,n:cnt Study . Plc 7 WILDROSE Audit Division TIME TRENDING VERIFICATION Methodology While we recommend that counties use the inverted ratio regression analysis method to account for market (time) trending, some counties have used other IAAO-approved methods, such as the weighted monthly median approach. We are not auditing the methods used, but rather the results of the methods used. Given this range of methodologies used to account for market trending, see concluded that the best validation method was to examine the sale ratios for each class across the appropriate sale period. To be specific, if a county has considered and adjusted correctly for market trending, then the sale ratios should remain stable (i.e. flat) across the sale period. If a residual market trend is detected, then the county may or may not have addressed market trending adequately, and a further examination is warranted. This validation method also considers the number of sales and the length of the sale period. Counties with few sales across the sale period were carefully examined to determine if the statistical results were valid. Conclusions After verification and analysis, it has been determined that Weld County has complied with the statutory requirements to analyze the effects of time on value in their county. Weld County has also satisfactorily applied the results of their time trending analysis to arrive at the time adjusted sales price (TASP). Recommendations None 20?, Weld County Property Asse smeut Study Page 8 WILDROSE Audit Division SOLD/UNSOLD ANALYSIS Methodology Weld County was tested for the equal treatment of sold and unsold properties to ensure that "sales chasing" has not occurred. The auditors employed a multi -step process to determine if sold and unsold properties were valued in a consistent manner. We test the hypothesis that the assessor has valued unsold properties consistent with what is observed with the sold properties based on several units of comparison and tests. The units of comparison include the actual value per square foot and the change in value from the previous base year period to the current base year. The first test compares the actual value per square foot between sold and unsold properties by class. The median and mean value per square foot is compared and tested for any significant difference. This is tested using non -parametric methods, such as the Mann -Whitney test for differences in the distributions or medians between sold and unsold groups. It is also examined graphically and from an appraisal perspective. Data can be stratified based on location and subclass. The second test compares the difference in the median change in value from the previous base year to the current base year between sold and unsold properties by class. The same combination of non -parametric and appraisal testing is used as with the first test. A third test employing a valuation model testing a sold/unsold binary variable while controlling for property attributes such as location, size, age and other attributes. The model determines if the sold/unsold variable is statistically and empirically significant. If all three tests indicate a significant difference between sold and unsold properties for a given class, the Auditor may meet with the county to determine if sale chasing is actually occurring, or if there are other explanations for the observed difference. If the unsold properties have a higher median value per square foot than the sold properties, or if the median change in value is greater for the unsold properties than the sold properties, the analysis is stopped and the county is concluded to be in compliance with sold and unsold guidelines. All sold and unsold properties in a given class are first tested, although properties with extreme unit values or percent changes can be trimmed to stabilize the analysis. The median is the primary comparison metric, although the mean can also be used as a comparison metric if the distribution supports that type of measure of central tendency. The first test (unit value method) is applied to both residential and commercial/industrial sold and unsold properties. The second test is applied to sold and unsold vacant land properties. The second test (change in value method) is also applied to residential or commercial sold and unsold properties if the first test results in a significant difference observed and/or tested between sold and unsold properties. The third test (valuation modeling) is used in instances where the results from the first two tests indicate a significant difference between sold and unsold properties. It can also be used when the number of sold and unsold properties is so large that the non - parametric testing is indicating a false rejection of the hypothesis that there is no difference between the sold and unsold property values. These tests were supported by both tabular and graphics presentations, along with written documentation explaining the methodology used. 2022 \Veld County Properly .�sse;:ment Stud- Page 9 WILDROSE ArrwAIau,l.roanOwAreu Audit Division Sold/Unsold Results Property Class Commercial /Industrial Single Family Vacant Land Results Compliant Compliant Compliant Conclusions After applying the above described methodologies, it is concluded that Weld County is reasonably treating its sold and unsold properties in the same manner. Recommendations None 2022 Weld County Property Assessment .Study Page 10 WILD ' O. E N. PPP N►- \t l\n,Rlti'►k \TFp Audit Division AGRICULTURAL LAND STUDY Acres By Subclass Waste 8 94% Gray 48 49% Sprinkle 8.85% Flood 38% Dry Farm 27 98% leaaaar Hay 058% 60 000 000 50 000 000 40 000 000 30 000 000 20 000 000 10 000 000 0 Value By Subclass O a Agricultural Land County records were reviewed to determine major land categories such as irrigated farm, dry farm, meadow hay, grazing and other lands. In addition, county records were reviewed in order to determine if: Aerial photographs are available and are being used; soil conservation guidelines have been used to classify lands based on productivity; crop rotations have been documented; typical commodities and yields have been determined; orchard lands have been properly classified and valued; expenses reflect a ten year average and are typical landlord expenses; grazing lands have been properly classified and valued; the number of acres in each class and subclass have been determined; the capitalization rate was properly applied. Also, documentation was required for the valuation methods used and any locally developed yields, carrying capacities, and expenses. Records were also checked to ensure that the commodity prices and expenses, furnished by the Property Tax Administrator (PTA), were applied properly. (See Assessor Reference Library Volume 3 Chapter 5.) Conclusions An analysis of the agricultural land data indicates an acceptable appraisal of this property type. Directives, commodity prices and expenses provided by the PTA were properly applied. County yields compared favorably to those published by Colorado Agricultural Statistics. Expenses used by the county were allowable expenses and were in an acceptable range. Grazing lands carrying capacities were in an acceptable range. The data analyzed resulted in the following ratios: 2022 Weld County Property Assessment Study - Page 11 WILDROSE APreAmAthcoaresumEn Audit Division Weld County Agricultural Land Ratio Grid Abstract Code Land Class 4107 Sprinkler 4117 Flood 4127 Dry Farm 4137 Meadow Hay 4147 Grazing 4167 Waste Total/Avg Number County County WRA Of Value Assessed Total Acres Per Acre Total Value Value Ratio 142,328 183.75 26,152,810 26,093,144 1.00 176,455 242.92 42,863,937 43,513,854 0.99 553,083 35.18 19,456,033 19,129,320 1.02 11,595 41.19 477,576 477,576 1.00 1,045,509 6.55 6,851,302 6,851,302 1.00 13,112 2.20 28,864 28,864 1.00 1,989,366 48.22 95,934,611 96,198,149 1.00 Recommendations None Agricultural Outbuildings Methodology Data was collected and reviewed to determine if the guidelines found in the Assessor's Reference Library (ARL) Volume 3, pages 5.74 through 5.77 were being followed. Conclusions Weld County has complied with the procedures provided by the Division of Property Taxation for the valuation of agricultural outbuildings. Recommendations None 2022 Weld County Property Assessment Study Page 12 S R WILDE 1rvh.ro Audit Division Agricultural Land Under Improvements Methodology Data was collected and reviewed to determine if the guidelines found in the Assessor's Reference Library (ARL) Volume 3, pages 5.19 and 5.20 were being followed. Conclusions Weld County has used the following methods to discover land under a residential improvement on a farm or ranch that is determined to be not integral under 39-1-102, C.R.S.: Questionnaires Field Inspections Phone Interviews In -Person Interviews with Owners/Tenants Written Correspondence other than Questionnaire Personal Knowledge of Occupants at Assessment Date Weld County has used the following methods to discover the land area under a residential improvement that is determined to be not integral under 39-1-102, C.R.S.: • Property Record Card Analysis • Field Inspections • Phone Interviews • In -Person Interviews with Owners/Tenants Written Correspondence other than Questionnaire Personal Knowledge of Occupants at Assessment Date Aerial Photography/Pictometry Weld County has complied with the procedures provided by the Division of Property Taxation for the valuation of land under residential improvements that may or may not be integral to an agricultural operation. Recommendations None 7O,7 Weld County Property Assessment Study Pa`e 1 I WILDROSE tiPPR\Li.V_ (\/1/RIM1)R\7EU Audit Division SALES VERIFICATION According to Colorado Revised Statutes: A representative body of sales is required when considering the market approach to appraisal. (8) In any case in which sales prices of comparable properties within any class or subclass are utilized when considering the market approach to appraisal in the determination of actual value of any taxable property, the following limitations and conditions shall apply: (a)(I) Use of the market approach shall require a representative body of sales, including sales by a lender or government, sufficient to set a pattern, and appraisals shall reflect due consideration of the degree of comparability of sales, including the extent of similarities and dissimilarities among properties that are compared for assessment purposes. In order to obtain a reasonable sample and to reduce sudden price changes or fluctuations, all sales shall be included in the sample that reasonably reflect a true or typical sales price during the period specified in section 39-1-104 (10.2). Sales of personal property exempt pursuant to the provisions of sections 39-3- 102, 39-3-103, and 39-3-119 to 39-3-122 shall not be included in any such sample. (b) Each such sale included in the sample shall be coded to indicate a typical, negotiated sale, as screened and verified by the assessor. (39-1-103, C.R.S.) The assessor is required to use sales of real property only in the valuation process. (8)(f) Such true and typical sales shall include only those sales which have been determined on an individual basis to reflect the selling price of the real property only or which have been adjusted on an individual basis to reflect the selling price of the real property only. (39-1-103, C.R.S.) Part of the Property Assessment Study is the sales verification analysis. WRA has used the above -cited statutes as a guide in our study of the county's procedures and practices for verifying sales. WRA reviewed the sales verification procedures in 2022 for Weld County. This study was conducted by checking selected sales from the master sales list for the current valuation period. Specifically WRA selected 60 sales listed as unqualified. All of the sales in the unqualified sales sample had reasons that were clear and supportable. For residential, commercial, and vacant land sales with considerations over $100,000, the contractor has examined and reported the ratio of qualified sales to total sales by class and performed the following analyses of unqualified sales: The contractor has examined the manner in which sales have been classified as qualified or unqualified, including a listing of each step in the sales verification process, any adjustment procedures, and the county official responsible for making the final decision on qualification. The contractor has reviewed with the assessor any analysis indicating that sales data are inadequate, fail to reflect typical properties, or have been disqualified for insufficient cause. In addition, the contractor has reviewed the disqualified sales by assigned code. If there appears to be any inconsistency in the coding, the contractor has 2022 Weld County Property Assessment Study Page 14 Conclusions Weld County appears to be doing an adequate job of verifying their sales. WRA agreed with IkeWILDROSE Arran l\CMPOR ren Audit Division conducted further analysis to the county's reason for disqualifying each of the determine if the sales included in that sales selected in the sample. There are no code have been assigned appropriately. recommendations or suggestions. Recommendations None 2022 \V'ek1 County Property As,e,.'c cnt study Pa<`c_ [ 3 WILDROSE e,PPR\IesAL I<CINIR)R\TFA Audit Division ECONOMIC AREA REVIEW AND EVALUATION Methodology Weld County has submitted a written narrative describing the economic areas that make up the county's market areas. Weld County has also submitted a map illustrating these areas. Each of these narratives have been read and analyzed for logic and appraisal sensibility. The maps were also compared to the narrative for consistency between the written description and the map. Conclusions After review and analysis, it has been determined that Weld County has adequately identified homogeneous economic areas comprised of smaller neighborhoods. Each economic area defined is equally subject to a set of economic forces that impact the value of the properties within that geographic area and this has been adequately addressed. Each economic area defined adequately delineates an area that will give "similar values for similar properties in similar areas." Recommendations None 20?? Weld County Propc rty Assessment Study Paae 16 WILDROSE :\rrrt.vMu. INCORPORATED Audit Division NATURAL RESOURCES Earth and Stone Products Methodology Under the guidelines of the Assessor's Reference Library (ARL), Volume 3, Natural Resource Valuation Procedures, the income approach was applied to determine value for production of earth and stone products. The number of tons was multiplied by an economic royalty rate determined by the Division of Property Taxation to determine income. The income was multiplied by a recommended Hoskold factor to determine the actual value. The Hoskold factor is determined by the life of the reserves or the lease. Value is based on two variables: life and tonnage. The operator determines these since there is no other means to obtain production data through any state or private agency. Conclusions The County has applied the correct formulas and state guidelines to earth and stone production. Recommendations None Producing Oil and Gas Methodology Assessors Reference Library (ARL) Volume 3, Chapter 6: Valuation of Natural Resources STATUTORY REFERENCES Section § 39-1-103, C.R.S., specifies that producing oil or gas leaseholds and lands are valued according to article 7 of title 39, C.R.S. Actual value determined - when. (2) The valuation for assessment of leaseholds and lands producing oil or gas shall be determined as provided in article 7 of this title. § 39-1-103, C.R.S. Article 7 covers the listing, valuation, and assessment of producing oil and gas leaseholds and lands. Valuation: Valuation for assessment. (1) Except as provided in subsection (2) of this section, on the basis of the information contained in such statement, the assessor shall value such oil and gas leaseholds and lands for assessment, as real property, at an amount equal to eighty-seven and one-half percent of: (a) The selling price of the oil or gas sold there from during the preceding calendar year, after excluding the selling price of all oil or gas delivered to the United States government or any agency thereof, the state of Colorado or any agency thereof, or any political subdivision of the state as royalty during the preceding calendar year; (b) The selling price of oil or gas sold in the same field area for oil or gas transported from the premises which is not sold during the preceding calendar year, after excluding the selling price of all oil or gas delivered to the United States government or any agency thereof, the state of Colorado or any agency thereof, or any political subdivision of the state as royalty during the preceding calendar year. § 39-7-102, C.R.S. Conclusions The county applied approved appraisal procedures in the valuation of oil and gas. Recommendations None 2022 2 e 1 d Cho::::: Property .2,:e:,o cut Study Pao: 17 WILDROSE APPRUW.iL I\CVRR)NATED Audit Division VACANT LAND Subdivision Discounting Subdivisions were reviewed in 2022 in Weld County. The review showed that subdivisions were discounted pursuant to the Colorado Revised Statutes in Article 39-1-103 (14) and by applying the recommended methodology in ARL Vol 3, Chap 4. Subdivision Discounting in the intervening year can be accomplished by reducing the absorption period by one year. In instances where the number of sales within an approved plat was less than the absorption rate per year calculated for the plat, the absorption period was left unchanged. Conclusions Weld County has implemented proper procedures to adequately estimate absorption periods, discount rates, and lot values for qualifying subdivisions. Recommendations None 2022 Weld County Property Assessment Study Page 18 OfpWILDROSE , :1Pi•RAISLL. ��ClMM1KiTED Audit Division POSSESSORY INTEREST PROPERTIES Possessory Interest Possessory interest property discovery and valuation is described in the Assessor's Reference Library (ARL) Volume 3 section 7 in accordance with the requirements of Chapter 39-1-103 (17)(a) (II) C.R.S. Possessory Interest is defined by the Property Tax Administrator's Publication ARL Volume 3, Chapter 7: A private property interest in government -owned property or the right to the occupancy and use of any benefit in government -owned property that has been granted under lease, permit, license, concession, contract, or other agreement. Weld County has been reviewed for their procedures and adherence to guidelines when assessing and valuing agricultural and commercial possessory interest properties. The county has also been queried as to their confidence that the possessory interest properties have been discovered and placed on the tax rolls. Conclusions Weld County has implemented a discovery process to place possessory interest properties on the roll. They have also correctly and consistently applied the correct procedures and valuation methods in the valuation of possessory interest properties. Recommendations None 'O22. Weld Counts Proper, 0::essment Study _ Pa`e 19 4111, WILDROSE Audit Division PERSONAL PROPERTY AUDIT Weld County was studied for its procedural compliance with the personal property assessment outlined in the Assessor's Reference Library (ARL) Volume 5, and in the State Board of Equalization (SBOE) requirements for the assessment of personal property. The SBOE requires that counties use ARL Volume 5, including current discovery, classification, documentation procedures, current economic lives table, cost factor tables, depreciation table, and level of value adjustment factor table. The personal property audit standards narrative must be in place and current. A listing of businesses that have been audited by the assessor within the twelve-month period reflected in the plan is given to the auditor. The audited businesses must be in conformity with those described in the plan. Aggregate ratio will be determined solely from the personal property accounts that have been physically inspected. The minimum assessment sample is one percent or ten schedules, whichever is greater, and the maximum assessment audit sample is 100 schedules. For the counties having over 100,000 population, WRA selected a sample of all personal property schedules to determine whether the assessor is correctly applying the provisions of law and manuals of the Property Tax Administrator in arriving at the assessment levels of such property. This sample was selected from the personal property schedules audited by the assessor. In no event was the sample selected by the contractor less than 30 schedules. The counties to be included in this study are Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo, and Weld. All other counties received a procedural study. Weld County is compliant with the guidelines set forth in ARL Volume 5 regarding discovery procedures, using the following methods to discover personal property accounts in the county: Public Record Documents MLS Listing and/or Sold Books Chamber of Commerce/Economic Development Contacts Local Telephone Directories, Newspapers or Other Local Publications Personal Observation, Physical Canvassing or Word of Mouth Questionnaires, Letters and/or Phone Calls to Buyer, Seller and/or Realtor The county uses the Division of Property Taxation (DPT) recommended classification and documentation procedures. The DPT's recommended cost factor tables, depreciation tables and level of value adjustment factor tables are also used. Weld County submitted their personal property written audit plan and was current for the 2022 valuation period. The number and listing of businesses audited was also submitted and was in conformance with the written audit plan. The following audit triggers were used by the county to select accounts to be audited: • • Businesses in a selected area Accounts with obvious discrepancies New businesses filing for the first time Accounts with greater than 10% change Incomplete or inconsistent declarations 2022 Weld County Property Assessment Studv— Page 20 WILDROSE .�PP0.\ LY.U. I \l1NtPOR\Tti O Audit Division Businesses with no deletions or additions for 2 or more years Non -filing Accounts - Best Information Available Accounts close to the $50,000 actual value exemption status Accounts protested with substantial disagreement Weld County's median ratio is 1.00. This is in compliance with the State Board of Equalization (SBOE) compliance requirements which range from .90 to 1.10 with no COD requirements. Conclusions Weld County has employed adequate discovery, classification, documentation, valuation, and auditing procedures for their personal property assessment and is in statistical compliance with SBOE requirements. Recommendations None ?U? ) \Feld County Property Assessment Study Page 21 'Op WILDROSE Audit Division WILDROSE AUDITOR STAFF Harry J. Fuller, Audit Project Manager Suzanne Howard, Audit Administrative Manager Steve Kane, Audit Statistician Carl W. Ross, Agricultural/Natural Resource Analyst J. Andrew Rodriguez, Field Analyst ?0?? Weld County Property Assessment Study — Page 22 APPENDICES 2,122 Weld County Property Assessment Stndv - Paffe ? 3 WILD : mm.1,u 1\.-.WIt,WAnln Audit Division STATISTICAL COMPLIANCE REPORT FOR WELD COUNTY 2022 I. OVERVIEW Weld County is an urban county located along Colorado's Front Range. The county has a total of 150,907 real property parcels, according to data submitted by the county assessor's office in 2022. The following provides a breakdown of property classes for this county: 100,000 80,000 60,000 0 U 40,000 20,000 .4 0 Real P 15267 operty Clas 97131 s Distribution Vacant Land 1 5730 32779 Res Imp Comm/Ind Imp Other type The vacant land class of properties was dominated by residential land. Residential lots (coded 100 and 1112) accounted for 83.7% of all vacant land parcels. For residential improved properties, single family properties accounted for 93.4% of all residential properties. Commercial and industrial properties represented a much smaller proportion of property classes in comparison. Commercial/industrial properties accounted for 3.9% of all such properties in this county. II. DATA FILES The following sales analyses were based on the requirements of the 2022 Colorado Property Assessment Study. Information was provided by the Weld Assessor's Office in May 2022. The data included all 5 property record files as specified by the Auditor. 2022 Statistical Report: WELD COUNTY Page WILDRCSE Audit Division III. RESIDENTIAL SALES RESULTS There were 11,461 qualified residential sales that occurred in the 18 -month sale period ending June 30, 2020. The sales ratio analysis results were as follows: Median Price Related Differential Coefficient of Dispersion 0.971 1.005 4.9 Based on the Audit questionnaire filled out by the assessor (see below), the following geographic levels were used by the assessor to value residential, commercial and vacant land properties: Economic Area Case Processing Summary Count Percent ECONAREA 0 697 .7.2% 2 3763 b9.1% Overall Excluded Tota l 3 2421 ,25.2% 635 ?,6.6% 46 10.5% 6 1393 9 201 99 462 114.5% 2.1% 4.8% 9618 100.0% 0 9618 Ratio Statistics for CURRTOT / TASP Price Related Coefficient of Group N Median Differential Dispersion 0 697 .974 1.002 .037 2 3763 .970 1.003 043 3 2421 .970 1.005 .047 4 635 .982 ,1.002 039 5 46 .962 :1.017 1.076 6 1393 .972 :1.004 9.061 9 2101 99 462__ .971 :1.003 1.036 Overall 9618 .973 `1.005 1.044 .972 1.005 .046 Neighborhoods with at least 35 sales Ratio Statistics for CURRTOT / TASP Price Related Coefficient of Group N Median Differential Dispersion 71 87 .972 1.007 .052 72 61 .971 1.000 .030 78` 39 .964 1.000 .031 79 38 .974 1.000 .035 81 48 s964 1.001 .042 83 67 .964 999 039 171 132 .972 1.000 .038 174 ;225 L978 11.002 1.031 2002 44 ?.963 11.002 ,.044 2022 Statistical Report: WELD COUNTY Page 25 i ILDR�SE Audit Division 2005 81 2006 47 2007 2011 2013 2016 2018 2019 2020 2021 2060 2061 2100 2101 2102 2103 5 58 133 175 180 .975 _ 35 .968`._ _ 246 .966 449 .979 410 .970 52 .967 48 .965 54 38 2105 44 68 2106 1.000 .044 970 1.004 .048 976 1.022 100 .973 1.009 059 1.005 .052 1.001 .028 1.003 052 1.004 038 1.003 .036 1 004 .039 .998 .076 1.001 034 .966 1.001 .047 .967 1.001 .033 ;.969 1.000 .034 972 1.000 .983 2107 99 2108 45 2110 99 2111 198 2112 82 ' 2115 36 2117 67 2118 59 2120 70 2121 62 2122 236 2151 91 2152 124 2155 97 2252 39 2657 40 2690 47_ 3000 40 3003 56 3004 122 3008 444 3012 75 3013 138 3017 154 3024 3025 3026 151 83 229 3027 46 3030 138 3031 62 3032 135 3034 225 3037 130 3038 140 3122 53 4000 154 4002 93 4004 202 4102 85 .967 .972 .971 .969 .959 1.002 Mme. .964 1.005 968 1.001 .990 1.001 969 1.000 .967 1.0 .978 1. 974 1.002 .971 1 .966 .965 :098700 1.003 .968 .977 967 972 .980 .964 1001 958 iM1007 975 1.016 968 1.000 968 1.001 .947 1.002 972 1.000 981 1.000 .964 1.000 970 1.002 975 m_ 1.004 969 1.001 _ .970 1:001 .960 1.006 .984 1.001 .986 1.001 986 1.002 968 1.001 1.002 1.001 .999 1.001 1.007 '1.002 1.003 .999 :1.001 .050 .065 .036 .041 .039 .056 .054 .067 .045 .050 030 .036 .027 .039 .074 .051 .022 .043 .033 .027 059 .040 068 .060 .022 .039 053 .038 .049 044 .044 .040 .034 028 .025 .040 2022 Statistical Report: WELD COUNTY 'age 26 WILD' O,E \sera I�rcwl,.+nn Audit Division 4103 62 966 1.005 .063 4105 39 .100 5001 46 .076 6003 46 .965 1.001 .057 6021 66 .956 1.003 .053 6025 71 .964 1.004 .058 6027 74 .968 .040 6029 75 .969 1.000 .045 6030 75 .965 .998 .085 6031 133 .967 1.003 .057 6033 73 .990 1.022 .107 6034 163 .966 1.005 .070 6035 1.001 .036 6037 110 .976 .083 6038 1.003 .058 6045 58 .979 1.022 .098 6050 40 .965 .055 6062 .040 9010 62 1.004 .049 9014 52 .977 .049 9040 87 .976 1.003 .036 9999 460 .970 1.003 .035 Overall 9618 .972 1.005 .046 .971 1.011 962 1.017 145 .972 105 .969 161 .984 .967 1.003 1.004 1.004 1.001 1.006 NOTE: NBHD 9999 = Condominiums The above ratio statistics were in compliance with the standards set forth by the Colorado State Board of Equalization (SBOE) for the overall residential sales. The following graphs describe further the sales ratio distribution for these properties: V C 4) C' L LL 2.500 2,000 U Sales Ratio Distribution 1 .00 .50 salesratio Mean = .97 Std. Dev. _ . 071 N = 11,481 2022 Statistical Report: WELD COUNTY Page 27 WILD'O.E :%PPR % Ul 1St C*POR.\ n 1U Audit Division PRD Analysis 1.50 1.00 .50 ! I. • • •• • •• • • 00 1• • • •• • • • • _•• • • •• • • • • • j •• • • • • • • • • • !• • its • • • • • • I • • •• gic • IMP • • $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 TIMEADJPRICE NOTE: Sales over $2,500,000 excluded for graphic clarity The above graphs indicate that the distribution of the sale ratios was within state mandated limits. Subclass 1212 PRD Analysis We next analyzed residential properties identified as 1112 using the state abstract code system. These include single family residences, town homes and purged manufactured homes. The following indicates the distribution of sales ratios across the sale price spectrum: 1.50 .50 1212 SALES • w • • • % S PRD Analysis '• • • • • • 1• • • • • • •# • • • i • ••• • • N A • a - • • • N •. • • •�%• • • • • • • • • •• • • • • • • • • • • _• • • • 50 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 TIMEADJPRICE 2022 Statistical Report: WELD COUNTY WILDIE Audit Division The Price -Related Differential (PRD) for 1212 sales is 1.005, which is within IAA() standards for the PRD. We also performed a regression analysis between the sales ratio and the assessor's current value to further test for regressivity or progressivity in the residential sales valuation, as follows: Coefficients' Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta 1 (Constant) .967 .002 Sig. 439.744 .000 CURRTOT .0000000189 .000 1033 3.500 <.001 a. Dependent Variable: salesratio The slope of the line at 0.0000000189 indicates that there is virtually no slope in the regression line, which indicates that sales ratios are similar across the entire sale price array. This indicates no regressivity or progressivity in the residential values assigned by the assessor. We also stratified the sales ratio analysis by the sale price range, as follows: Case Processing Summary Count Percent SPRec LT $300K 1709 15.7% $300K to $400K 5127 47.0% $400K to $500K 2396 [21.9% $500K to $600K 963 (8.8% $600K to $750K 502 4.6% $750K to $1000K 166 1.5% $1000K to $2000K 54 0.5% Over $2000K 2 0.0% Overall 10919 100.0% Excluded 0 Total 10919 Ratio Statistics for CURRTOT / TASP Group LT $300K .975 1.003 .067 $300K to $400K .975 1.000 .038 $400K to $500K 968 1.000 .046 $500K to $600K 963 1.000 057 $600K to $750K .949 1.000 .070 $750K to $1000K 919 1.000 .092 $1000K to $2000K .918 .999 _ .123 Over $2000K .846 1.003 .061 Overall .972 1.005 .049 Coefficient of Price Related Coefficient of Variation Median Differential Dispersion =Median Centered "10.5% 15.,3% . 6.6% i7.5% z9.4% '11.5% 16.1% 8.6% :`.7.3% The above table indicates no regressivity in the sales ratios across sale price categories. 2022 Statistical Report: WELD COUNTY Page 29 FJILD1 E Audit division Residential Market Trend Analysis We next analyzed the residential dataset using the 18 -month sale period for any residual market trending and broken down by economic area, as follows: Coefficientsa ECONAREA Model Standardized Unstandardized Coefficients 'Coefficients B Std. Error !Beta Sig. .000 .315 0 6 7 99 (Constant) .972 SalePeriod .000 Constant) .969 SalePeriod _000 (Constant) 973 SalePeriod 000 (Constant) .977 SalePeriod .000 (Constant) .982 .018 SalePeriod -.001 1.002 (Constant) .978 1.005 SalePeriod .000 ".000 .003 278.317 .000 .033 002 1.005 '514.140 .000 1.002 ;.000 x.006 '.001 (Constant) .858 SalePeriod .008 x.027 -.018 ,'"x.028 -.043 1.023 .055 _.005 " 1254 (Constant) .932 i.032 SalePeriod .003 0.003 .131 (Constant) 967 ,.T ;.008 l _SalePeriod .000 '.001 ).027 (Constant) .965 .005 SalePeriod - .001 '.001 1.077 001 6 1.756 417.292 -.967 168.209 .794 54.054 -.451 .52 1.658 09 1 a. Dependent Variable: salesratio There was no residual market trending present in the sale ratio data for any of the economic ,areas; we. therefore concluded that the assessor has adequately addressed market trending in the valuation of residential properties. Sold/Unsold Analysis In terms of the valuation consistency between sold and unsold residential properties, we compared the median actual value per square foot for 2022 between each group. The data was analyzed both as a whole and broken down by economic area, as follows: Report VALSF sold N Median Mean UNSOLD 84627 SOLD 11460 $214 $214 $212 $217 2022 Statistical Report: WELD COUNTY Page 30 WILD15 3SE Audit Division Report VALSF ECONAREA sold N 00 UNSOLD 6601 $227 $225 _ SOLD 914 $226 $225 _ 2.00 UNSOLD 24877 $216 $218 SOLD 4197 $211 $216 3.00 UNSOLD 19119 $210 $218 Median Mean 4.00 5.00 6.00 SOLD 2883 $211 $218 UNSOLD 6655 SOLD 808 ;:$202 $208 UNSOLD 1659 SOLD 114 UNSOLD 1728 SOLD 1610 $200 $204 $187 7.00 OLD 817 $117 $12 .m. 0 33 $139 $15 8.00 9.00 99.00 UNSOLD 726 $174 $177 _ SOLD 65 ;$198 '$192 UNSOLD 2881 $217 $210 _ SOLD 376 $225 UNSOLD 3737 $182 SOLD 419 $185 $220 $171 $189 NOTE: Econ Area 99 = Condominiums Please note that economic areas with significant differences based on the actual value per square foot comparison were also tested using the percent change in value method; in each case, those economic areas showed no significant difference between sold and unsold residential properties using this second method. We also stratified this analysis by residential neighborhoods with at least 35 sales, as follows: Report VALSF NDHD sold N 0071 UNSOLD `s656 x$245 $242 SOLD 0072 UNSOLD SOLO 0083 UNSOLD SOLD 67 $177 $181 0171 UNSOLD 818 $252 $246 SOLD132 =$232 $$33 0174 UNSOLD 881 $230 SOLD 225 $227 2005 UNSOLD 832 $254 SOLD 81 ?$262 2007 UNSOLD 652 x$261 SOLD 58 $269 UNSOLD 585 $220 SOLO 133 $238 UNSOLD SOLD` 2016 UNSOLD SOLD 180 $244 $244 $224 $225 $214 $220 $172 $178 2013 Median Mean $225 $248 $255 $260 $262 $234 $250 $216 $220 5 $233 $229 :$182 $182 $173 $181 2022 Statistical Report: WELD COUNTY Page 31 tr: \VILBRgSE Audit Division 2019 UNSOLD 664 $227 $228 SOLD 246 $240 $238 2020 UNSOLD 748 $202 $205 SOLD 449 $196 $199 2021 UNSOLD 869 $197 $201 SOLD 410 $194 $203 2060 UNSOLD 524 $229 $225 SOLD 62 _ Y $225 $224 2100 UNSOLD 712 $216 $214 SOLD 54 $218_._w.. $216 _.. 2102 UNSOLD 557 $233 $230 SOLD 55 $240 $232 2103 UNSOLD 510 $197 $205 SOLD 55 $194 $206 2106 UNSOLD 251 $213 $215 SOLD 68 $226 $222 2107 UNS_OLD 705 $209 $211 SOLD 99 $217 $220 2110 UNSOLD 1025 $222- $222 SOLD 99 $229 $227 2111 UNSOLD 2346 $224 $223 SOLD 198 $210 $216 2112 UNSOLD 904 $193 $194 SOLD 82 $192 $195 2117 UNSOLD 199 $196 $200 SOLD 67 $198 $207 2118 UNSOLD 467 $221 $220 SOLD 59 $5238 $230 2120 UNSOLD 512 $218 $215 SOLD 70 $221 $217 2121 UNSOLD 331 $247 $249 SOLD 62 $271 $266 2122 UNSOLD 190 $197 $204 SOLD 236 $190 $199 2151 UNSOLD 716 $230 $228 SOLD 91 $227 $227 2152 UNSOLD 422 $192 $205 SOLD 124 $205 $214 2155 UNSOLD 114 $160 $176 SOLD 97 $155 $173 3003 UNSOLD 324 $199 $202 SOLD 56 �.�m. $204 $199 3004 UNSOLD 124 $210 $211 SOLD 122 $198 $199 3008 UNSOLD 820 $204 _ $213 SOLD 444 $207 $219 3012 UNSOLD 566 $205 $212 SOLD 75 $208 $214 3013 UNSOLD 1315 - $219 $229 SOLD 138 $221 $239 3017 UNSOLD 367 $224 $224 SOLD 154 $225 $226 3024 UNSOLD 340 $210 $214 SOLD 83 $208 $218 3025 UNSOLD 842 $224 _ $230 SOLD 229 $200 $199 3026 UNSOLD 1357 $213 $215 2622 Statistical Report: WELD COUNTY Page 32 • Audit Division SOLD 151 $203 $212 3030 UNSOLD 670 $195 $201 SOLD 138 $193 $201 3031 UNSOLD 579 $269 $264 SOLD 62.._ �._ $260 $268 3032 UNSOLD 704 $206 $209 SOLD 135 $204 $207 3034 UNSOLD 407 $202 $216 SOLD 225 $201 $216 3037 UNSOLD 942 $198 $202 SOLD 130 $202 $209 3038 UNSOLD 1155 $201 ®. $203 SOLD 140 $208 $211 3122 UNSOLD 298 $212 $220 SOLD 53 $212 $218 4000 UNSOLD 457 $191 $195 SOLD 154 $184 $183 4002 UNSOLD 408 $204 $207 SOLD 93 $205 $210 4004 UNSOLD 571 $179 $187 SOLD 202 $183 U195 4102 UNSOLD 265 $193 $193 SOLD 85 $196 $193 4103 UNSOLD 592 $254 $256 SOLD 62 - $258 $259 6021 UNSOLD 732 $249 $244 SOLD 66 $248 $247 _ n� 6025 UNSOLD 823 $217 $216 SOLD 71 $208 $214 6027 UNSOLD 395 $229 $226 SOLD 74 $239 $232 6029 UNSOLD 987 $238 - $233 SOLD 75 $247 $243 6030 UNSOLD 772 $214 $216 SOLD 75 $223 $223 6031 UNSOLD 1737 $225 $221 SOLD 133 $229 -_ $222 76033 UNSOLD 737 $230 $230 SOLD 73 $257 $246 6034 UNSOLD 1416 $242 $235 SOLD 163 $248 $240 6035 UNSOLD 1283 $244 $234 SOLD 145 m_ $231 $228 6037 UNSOLD 1345 $222 $221 SOLD 110 $228 $228 6038 UNSOLD 1267 $241 $228 SOLD 105 $265 $252 6045 UNSOLD 794 $255 $250 s_. SOLD 58 $261 $256 6062 UNSOLD 936 $242 $240 SOLD 161 $237 $240 9010 UNSOLD 582 $224 ;$221 SOLD 6, 2, $224~ ._,�,.�... 4.. 9014 UNSOLD 115 SOLD 52 $227 $ 9040 UNSOLD 164 $216 $215 SOLD 87 $236 $227 2022 Statistical Report: WELD COUNTY Page 33 WILDROOE APPRNI§1 Audit Division 9999 UNSOLD 3907 $179 $172 SOLD 460 $183 $185 NOTE: Econ Area 9999 = Condominiums The above results indicate that sold and unsold residential properties were valued in a consistent manner. IV. COMMERCIAL/INDUSTRIAL SALE RESULTS There were 216 qualified residential sales that occurred in the 18 month sale period ending June 30, 2020. The sales ratio analysis results were as follows: Median 0.993 Price Related Differential 1.007 Coefficient of Dispersion 6.4 The above table indicates that the Weld County vacant land sale ratios were in compliance with the SBOE standards. The following histogram and scatter plot describe the sales ratio distribution further: 120 100 SC a60 f a0 20 0 0.0 0.5 r S salesratio 2.0 Mean = .99 Std. Dev. _ .122 N=216 2022 Statistical Report: WELD COUNTY Page 34 WILD • 'E 'i PPR;I* NM 'I 1-n Audit Division 2.0 1.5 0 1.0 0.5 0.0 x x Commercial Sale Price by Sales Ratio a w $0 $5,000,000 $10,000,000 $15,000,000 TASP $20,000,000 $25,000,000 Commercial /Industrial Market Trend Analysis The commercial /industrial sales were next analyzed, examining the sale ratios across the 18 -month sale period with the following results: Coefficientsa Model 1 (Constant) SalePeriod -.001 a. Dependent Variable: salesratio Unstandardized Coefficients B Std. Error Standardized Coefficients Beta .995 . 016 2.0 13 0 1.0 I 05 00 . 002 -.040 Commercial Market Trend Analysis art in* s aat• art is lit l•rrrttate •**to I •r sasaasn.nnal 3 + 0 5 10 SalePeriod 15 20 t Sig. 62.707 <.001 -.590 .556 2022 Statistical Report: WELD COUNT WILDROSE Audit Division There was no residual market trending present in the commercial sale ratios. We concluded that the assessor has adequately considered market trending adjustments as part of the vacant land valuation. Sold/Unsold Analysis We compared the median change in value between valuation year 2018 and valuation year 2020 between sold and unsold groups to determine if sold and unsold properties were valued consistently, as follows: Report DIFF sold N Median Mean UNSOLD 5052 1.05 1.10 SOLD 196 1.15 ;1.21 Based on the number of subclasses for commercial and industrial properties, we chose only major subclasses with at least 10 sales for this analysis: i.e. those with improved abstract codes of 2212, 2220, 2230, 2235, 2245, and 3215. The following analysis was then performed: Report DIFF ABSTRIMP RIMP sold N 'Median ;Mean 2212.00 UNSOLD 685 1.02 X1.08 SOLD 31 1.23 1.25 2220.00 UNSOLD 354 1.01 11.08 SOLD 18 1.07 11..18 2230.00 UNSOLD 959 1.05 ;1.10 SOLD 32 1.16 2235.00 UNSOLD 998 1.08 ,1.14 SOLD 19 1.23 ;1.30 2245.00 UNSOLD 989 :1.06 1.10 SOLD 67 ,1.16 1.18. We have consulted with the assessor concerning the significant difference observed for several commercial subclasses. V. VACANT LAND SALE RESULTS There were 215 qualified residential sales that occurred in the 18 -month sale period ending June 30, 2020. The sales ratio analysis results were as follows: Median 1.000 Price Related Differential 1.010 Coefficient of Dispersion 10.0 The above ratio statistics were in compliance overall with the standards set forth by the Colorado State Board of Equalization (SBOE) for the overall vacant land sales. The following graphs describe further the sales ratio distribution for all of these properties: 2022 Statistical Report: WELD COUNTY Page 36 60 C40 7 20 WILD O.E APYR \C;.►t. I\I fRPOR1Tf 1► Audit Division 12 salesratio 14 1 1.8 Mean = .98 Std. Dev. _ .152 N=215 1.8 I 1.6 1.4 1.0 Vacant Land Sale Price by Sales Ratio $1,000,000 T $1,250,000 x X x x xX xx xX sicx x xx x x x x $0 $250,000 ' $500,000 ' $750,000 TASP x The above histogram indicates that the distribution of the vacant land sale ratios was within state mandated limits. No sales were trimmed. 2022 Statistical Report: WELD COUNTY Page 37 WILD APPRrf*1( hcoarl Afln Audit Division Vacant Land Market Trend Analysis We next analyzed the vacant land dataset using the 18 -month sale period, with the following results: Coefficientsa Model 1 (Constant) SalePeriod Standardized Unstandardized Coefficients Coefficients B Std. Error Beta t Sig. . 961 . 003 a. Dependent Variable: salesratio 1.8 1.6 14 O 1.2 0.8 0.6 . 018 52.003 . 002 .088 1.292 + Vacant Land Sales Market Trend Analysis + + + + + + + + + + + + + + + + + + + + + t1. # + + 11 + # + + T A. + t++ +++ + + + + + * 5 10 SalePeriod 15 <.001 .198 The above analysis indicated that no significant market trending was present in the vacant land sale data. We concluded that the assessor has adequately dealt with market trending for vacant land properties. Sold /Unsold Analysis In terms of the valuation consistency between sold and unsold vacant land properties, we compared the median change in actual value for valuation year 2018 and valuation year 2020 between each group. We stratified the vacant land properties by subdivision and found overall consistency. The following results present the overall comparison results: Report DIFF sold N Median Mean UNSOLD 6181 1.00 .92 SOLD 196 1.13 1.17 We also compared sold and unsold changes in value by subdivision with at least 6 sales, as follows: 2022 Statistical Report: WELD COUNTY Page 3S VILDROSE Audit Division Report DIFF SUBDIVNO sold N Median Mean 2528 UNSOLD 25 1.12 SOLD 17 1.13 2925 UNSOLD 14 1.30 SOLD 5 3372 UNSOLD 3 SOLD 5192 UNSOLD SOLD 5 6903 UNSOLD 9 SOLD 6 6924 UNSOLD 25 SOLD 5 7039 UNSOLD 10 SOLD 10 9 1 1.11 _ 1.31 _ 1.20 1.30 SS .36 _ 1.08 .93 _ 1.00 .95 _ 1.06_....__..97___ _ 46 .50 _ 96 .80 ... 1.00 1.00 1.40 1.40 1.00 _.72 1.00 1.07 Overall, we concluded that the county assessor valued sold and unsold vacant properties consistently. V. CONCLUSIONS Based on this 2022 audit statistical analysis, residential, commercial/industrial and vacant land properties were found to be in compliance with state guidelines. 2022 Statistical Report: WELD COUNTY Page 39 WILDROSE STATISTICAL ABSTRACT Residential Ratio Statistics for CURRTOT `TASP ECONAREA Mean 95% ConfidencMeae Interval for n 95% Confidence Interval for Weighted Mean al Weighted Price Related • Coefcientof Lower Bound Upper Bound Median • Lower Bound Upper Bound • Coverage Mean Lower Bound Upper Bound Differential Dispersion Mean Centered Coefficient of Variation 95% Confidence Interval for Medlan Actu 5 6 :975 .972 .971 .982 .976 .981 .928 . .961 .971 .972 .979 .974 .971 .977 .970 .974 .970 .969 .972 .969 .974 _971 .969 _ .976 .987 ti^ .979 .976 .954 .997 .969 .957 .977 .986 .972 .969 .872 .985 .958 .883 .929 .993 .975 .941 .963 .978 .970 .966 .972 .984 ,985 . .975 .977 .973 , .982 , 1.004 .063 9,4% .842 .966 1.027 .124 17.2% .956 .930 .982 1.005 .082 • E 13.4% :969 , .961 .977 , 1.002 .049 ' - 7.3% 99 .972 .967 .978 .971 .968 .974 95.5% .970 + .966 .974 1.003 .036 6.196 The confidence interval for the median is constructed without any distribution assumptions. The actual coverage level maybe greater than the specified level. Other confidence Intervals are constructed by assuming a Normal distribution fo rthe ratios. Commercial Land 95% Confidence Interval for Mean Mean Lower Bound Upper Bound .973 .969 ; .977 , 1.002 .041 5.7% .968 • .966 .971 1.004 • .044 6.3% .966 .963 , .969 • 1.005 .049 7.0% .977 .971 .983 1.005 .048 8.0% .987 ' .943 .991 1.009 .077 11,7% 1.000 .988 .975 95.6% 95.2% 95.2% 95.1% 95.1% 95.1% 96.5% 95.4% 95.6% Ratio Statistics for CURRTOT /TASP 95% Confidence Interval for Median Actual Median Lower Bound Upper Bound Coverage Weighted Maan 95% Confidence Interval for Weighted Mean Coefficientof Variation PriceRelated CoeitcientoT Lower Bound Upper Bountl Differential Dispersion . Mean Centered .987 .971 , 1.004 .993 .986 .998 95.2% .980 .954 1.006 1.007 .064 12.3% The confidence interval for the median is constructed without any distribution assumptions. The actual coverage level may be greater than the specified level. Other confidence intervals are constructed by assuming a Normal distribution torthe ratios. Vacant Land 95% Confidence Interval for Mean Mean Lower Bound Upper Bound Ratio Statistics for CURRLND ; TASP 95% Confidence Interval for Medlan Actual Median Lower Bound Upper Bound Coverage Weighted Mean 95% Confidence Intervalfor Weighted Mean Coeffffcienf of Variation Price Related Coefficient of Lower Bound Upper Bound Differential Dispersion Mean Centered .981 .961 1.002 1.000 .979 1.000 95.9% .972 , .948 .995 , 1.010 .1O0 15.5% The confidence Interval for the median is constructed without any distribution assumptions. The actual coverage level maybe greater than the specified level. Other confidence intervals are constructed by assuming a Normal distribution for the ratios. 2022 Statistical. Report: WELD COUNTY Page 40 1466.5O 740 1553.00 1.096 2220.00 .886 2227.50 .981 2235.00 1.060 9240.00 .921 Overall .971 WILDROSE Audit Division Residential Median Ratio Stratification Subclass Case Processing Summary Count Percent ABS T RIMP 1212.00 10915 95.2% 1213.50 3 1214.00 2 1215.00 83 1220.00 25 1224.29 1 1225.00 6 1230.00 419 1235.00 1466.50 1553.00 2220.00 2227.50 2235.00 9240.00 Overall Excluded Total 0.0% 0.0% 0.7% 0.2% 0.0% 9.1% 3.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 11461 100.0% 11461 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 1.005 .049 7.3% 14.4% 1212.00 .972 1213.50 .931 1.051 1214.00 1.116 1.009 1215.00 970 .999 1220.00 .980 1.004 1224.29 .959 1.000 1225.00 1.000 1 006 1230.00 970 1.002 1235.00 1.222 1.000 0 0 1.000 1.000 1.000 1.000 1.005 049 7.3% 14.7% '13.7% 8.8% 8.4% 6.0% 104 080 055 000 042 .034 000 000 000 .000 000 000 2022 Weld County Property Assessment Study — Page 41 ��ILDRC�SE Audit Division Age Case Processing Summary Count Percent AgeRec Over 100 289 2.5% 75 to 100 185 1.6% 50 to 75 609 5.3% 25 to 50 1283 11.2% 5 to 25 4305 37.6% 5 or Newer 4790 41.8% Overall 11461 100.0% Excluded 0 Total 11461 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered Over 100 985 1.014 . .104 15.4% 75 to 100 946 1.002 .092 13.4% 50 to 75 .969 1.009 075 11.0% 25 to 50 .968 1.003 `:060 8.7% 5 to 25 .969 1.003 3.045 6.5% 5 or Newer .975 1.005 1.040 5.7% Overall .971 1.005 ;.049 7.3% Improved Area Case Processing Summary Count Percent ImpSFRec LE 500 sf 13 0.1% 500 to 1,000 sf 638 5.6% 1,000 to 1,500 sf 3338 29.1% 1,500 to 2,000 sf 3909 34.1% 2,000 to 3,000 sf 2924 ;25.5% 3,000 sf or Higher 639 5.6% Overall 11461 100.0% Excluded., 0 Tota I 11461 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered LEr 500 sf .974 1.020 .197 26.2% 500 to 1,000 sf .950 1.007 .067 10.0% 1,000 to 1,500 sf .972 1.003 .044 6.9% 1,500 to 2,000 sf .971 1.003 .043 6.2% 2,000 to 3,000 sf .975 1.004 .049 7.0% 3,000 sf or Higher .967 1.005 .083 ' 11.6% Overall .971 1.005 .049 7.3% 2022 Statistical Report: WELD COUNTY Page 42 JILD19 E Audit Division Improvement Quality Case Processing Summary Count QUALITY Ratio Statistics for CURRTOT / TASP Percent 17.4% 77.2% 3.9% 0.5% 0.1% Group Median 1.274 1.000 .967 Price Related Differential Coefficient of Dispersion .000 Coefficient of Variation Median Centered 2 4 .. Overa 110 .065 1.004 .043 1.010 .072 0.014 .083 1.030 .109 1.005 .049 • :15.0% 110.2% ,6.1% '9.6% 11.9% ;19.8% 7.3% Improvement Condition Case Processing Summary Count CONDITION 1 Overall Excluded„ Total Percent 0.0% 3 0.0% 2 27 0.2% 11423 99.71 4. 0.1% 461 ;100.0% 11461 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 1.274 1.000 .000 2 .009 .919 ..228 4 1.044 .158 971 1.005 .048 7.2% 1.002 .048 6.4% Overall 971 1.005 .049 7.3% 2022 Statistical Report WELD COUNTY Page 43 WILDROSE Audit Division Commercial Median Ratio Stratification Sale Price Case Processing Summary Count Percent SPRec LT $25K 3 1.4% $50K to $100K 8 3.7% $100K to $150K 22 10.2% 0. $150K to $200K 25 11.6% $200K to $300K 27 12.5% $300K to $500K 43 19.9% $500K to $750K 22 $750K to $1,000K Over $1,000K Overall Excluded Total 1 10.2% 6.9% 51 23.6% 216 100.0% 6 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered LT $25K 1.056 1.128 .300 58.1% $50K to $100K 1.005 1.011 .115 19.4% $100K to $150K .986 1.002 .067 10.4% $150K to $200K .985 1.000 .055 8.6% $200K to 0300K $300K to $500K .987 .998 .061 12.7% $500K to $750K .996 1.000 .052 7.5% $750K to $1,000K .999 .999 .035 6.1% Over $1,000K .993 1.000 .063 11.8% Overall .993 1.007 .064 12.3% 1.007 .998 .053 7 0% Subclass Case Processing Summary Count Percent ABSTRIMP 1212.00 2 1220.00 1 1712.00 1 2183.85 1 2212 00 31 2215 00"1 2220.00 19 2223.50 1 2223.75 !1 2227.50 M1 2230.0O 35 2232 00 1 2232.50 1 2233.00 1 2235.00 24 2245.00 74 2556.67 1 2725.00 1 0.9% 0,%0 0.5%5 0.5% 14.4% 0.5% 8.8% 0.5% 0.5% 0.5% 16.2% 0.5% 0.5% 0.5% 11.1% 34.3% 0.5% 0.5% 2022 Statistical Report: WELD COUNTY Page 44 WILD Audit DivisionE Overall Excluded Total 2779.44 1 0 1 0 2917.40 3212.00 2 0.9% 3215.00 3225.00 ...1 0.5% 9239.00 1 0.5% 9249.00 9259.00 2 0.9%0 9279.00 2 0.9% 216 100.0% 0 216 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 1212.00 .867 1.031 .289 ;40.8% 1220.00 754 1.000 .000 . 1712.00 1.064 1.000 .000 s. 2183.85 1.000 1.000 000 2212.00 995 1.001 049 0.5% 2215.00 .616 1000 .000 2220.00 999 1.048 079 02.4% 2223.50 982 1.000 .000 2223.75 968 1.000 000 2227.50 .950 1.000 000 2230.00 .998 .989 .067 111.3% 2232.00 984 1.000 000 2232.50 .975 1.000 .000. 2233.00 993 1.000 000 2235.00 .997 1.079 .062 j11.9% 2245.00 .986 1.014 058 8.4% 2556.67 1.067 1.000 .000 2725.00 1.000 1.000 .000 2779 44 1.000 1.000 .000 2917.40 987 1.000 000 3212.00 991 1.000 000 0.0% 3215.00 990 1.008 .032 4.5% 3225 00 452 1.000 .000 9239.00 1 243 1.000 .000 9249.00 1.000 1.000 000 9259.00 1.002 1.007 039 5.5% 9279.00 1.017 .971 036 5.2% Overall .993 1.007 .064 ;12.3% 2022 Statistical Report: VELD COUNTY Page 45 ��'ILDROSE Audit Division Age Case Processing Summary Count Percent AgeRec Over 100 15 6.9% 75 to 100 8 3.7% 50 to 75 19 - 8.8% 25 to 50 39 18.1% 5 to 25 94 43.5% 5 or Newer 41 19.0% Overall 216 Excluded 0 Total 216 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered Over 100 .974 .994 .055 10.9% 75 to 100 .961 .996 .054 9.8% 51691901 .1 25.9% 251050 .5 993 %3435 5.7% 5 to 25 .996 .991 :.062 11.2% 5 or Newer .996 1.024 1.066 110.3% Overall .993 1.007 ,.064 12.3 A Improved Area Case Processing Summary Count Percent impSFRec LE 500 sf 6 500 to 1,000 sf 19 _ 1,000 to 1,500 sf 38 _ 1,500 to 2,000sf 19 2,000 to 3,000 sf 34 15.7% 3,000 slot Higher 100 46.3%0 0 Overall Excluded 2166 100.0% Total 2.8% 8.8% 216 8.8% Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered LE 500 sf .999 1.119 .177 29.1% 500 to 1,000 sf .986 1.055 .111 24.1% 1,000 to 1,500 sf .989 1.020 .054 s7.8% 1,500 to 2,000 sf .954 1.018 .065 11.6% 2,000 to 3,000 sf .998 1.006 .042 6.8% 3,000 sf or Higher .998 1.013 .058 10.7% Overall .993 1.007 .064 12.3% 2922 Statistical Report: WELD COUNTY Page 46 WII.I�R�SE Audit Division Improvement Quality Case Processing Summary Count Percent QUALITY 1 5 2.3% 2 15 6.9% 3 159 73.6% 4 37 17.1% Overall 216 Excluded 0 Total 216 :100.0% Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 1 .998 1.171 .205 46.3% 2 .985 1.000 .031 4.0% 3 .995 1.013 .063 11.1% 4 .986 .980... .062 10.4% Overall .993 1.007 :.064 12.3% Improvement Condition Case Processing Summary Count Percent CONDITION 2 6 2.8% Overall ued TotalExcld". 3 209 4 X0 1 .5% 216 ;100.0% 216 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 2 .989 .991 .015 2.1 % 3 994 1.009 .064 12.3% 4 .667 1.000 .000 Overall .993 1.007 .064 12.3% 2022 Statistical Report: WELD COUNTY Page 47 T1L11% E Audit Division Vacant Land Median Ratio Stratification Sale Price Case Processing Summary Count Percent SPRec LT $25K 7 3.3%. $25K to $50K 15 17.0% $50K to $100K $100K to $150K $150Kto $200K $2C0K to $3001 $300K io $500i< 18 '8.4% $5006 to $7506 8 3.7% Trt $750K to $1000K 3 .1.4% Over $1 000K 3 ;1.4% Overall 215 1100.0% Excluded 0 Total 73 51 21 .34.0%, ;.23.7%: 0.8% 7.4% 215 Ratio Statistics for CURRLND / TASP Group LT $25K 1.083 .987 $25K to $506 1.000 .993 $506#o $100K 1.000 1.004 $1006 to $150K .942 $150K to $2006 1000 .996__ $2006 to $300K 1 000 1.006 $300K to $5006 .948 1.009 $500K to $750K .944 1.001 $750K to $1,000K 1.000 1.002 Over $1,000K 1.000 1.001 Overall 1.000 1.010 Median 'Coefficient of Price Related "Coefficient of Variation Differential Dispersion Median Centered '.070 158 1.069 .094 8.7% 24.3% 12.0% 1.003 12.8% ;19.4% _ x1.5.2% 125.2% 6.1% X5.6%. !3.0% ;15.3% 4.163 1046 1.027 x.020 '.100 Subclass Case Processing Summary Count Percent APSTRLND 100.00 39 _ 200.00 19 8.8% 300.00 4 1.9% 520.00 1 0.5% 540.0a `;1 10.5% 550.00 1112.00 125 58.1% 112500.;1 2112.00 "3 2115.00 1 2120.00 ''6 2130.00 7 295.00 7 18.1% 0.5% 0.5% 1.4% 0.5% 3.3% 3.3% 2022 Statistical Report: WELD COUNTY Page 48 �, ��ILllI2OSE Audit Division Overall 215 100.0% Excluded 0 Total 215 Ratio Statistics for CURRLND / TASP Coefficient of Variation Price Related Coefficient of Median Group Median Differential Dispersion Centered 100.00 .949 1.042 .144 20.4% 200.00 .991 .975 .200 27.3% _ 300.00 .984 1.010 .137 21.1% _ 520.00 1.036 1.000 .000 540.00 .949 1.000 .000 550.00 .950 1.000 .000 _. 1112.00 1.000 1.002 .078 12.1% 1125.00 966 1.000 .000 2112.00 1.049 .997 .057 01.1% 2115.00 .921 1.000 .000 g. 2120.00 .984 1.026 .047 6.6% 2130.00 .923 1.004 .105 15.8% 2135.00 1.000 1.009 .045 7.1% Overall 1.000 1.010 .100 15.3% 2022 Statistical Report: WELD COUNTY Page 49 Hello