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HomeMy WebLinkAbout20173235.tiffRECEIVED 2 0 17 WELD COUNTY PROPERTY ASSESSMENT STUDY SEP 1 5 2017 WELD COUNTY COMMISSIONERS • r lmO n t C ct ti"o rl S q/oO/�-1 WILD'S 'E APPRAISAL INom PORATFU Audit Division cc* GSRCD14C) rev 2017-3235 WILD :1l'PR.,1S il_ I\& I,RI%)kU l:l) Audit Division September 15, 2017 Mr. Mike Mauer Director of Research Colorado Legislative Council Room 029, State Capitol Building Denver, Colorado 80203 RE: Final Report for the 2017 Colorado Property Assessment Study Dear Mr. Mauer: Wildrose Appraisal Inc. -Audit Division is pleased to submit the Final Reports for the 2017 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. IbutAarva, Harry J. Fuller Project Manager Wildrose Appraisal Inc. Audit Division WILD' • E \I'rk_11-.u1. 1 M t )1tfl)RA-1 F=U 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 1 7 Producing Oil and Gas 17 Vacant Land 18 Possessory Interest Properties 19 Personal Property Audit 20 Wildrose Auditor Staff 22 Appendices 23 20 l 7 W'''eld County Property Assessment Study Page lipr AYI'R.II:. it_ I \t ORPO1t1'1 U) WILD ` • E Audit Division INTRODUCTION do dos ora , 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 2017 and is pleased to report its findings for Weld County in the following report. 2017 \'`'eld County Property Assessment Study Page 3 likAI'rR.\IS N.L. I\t c ilt Mk VI I WILD' E 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 Craig • Sim _ Meeker • RO UTT 54 • Steamboat Spgs GARFIELD 23 Glenwood Spgs • Walden • Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo, and Weld counties. JACKSON 29 GRAND 25 • Hot Sulphur springs Eagle • EAG L E 19 • MESA 39 Grand Junction DELTA 15 • Delta Dove Creek • DOLORES 6 .Ilverton 17 SAN JUAN Montrose • M0NTROSE 43 OURAY 46 • Le PITKIN • Fairplay 43 Aspen LAKE • 33 PARK SUMMI 59 •Br LARIMER 35 • Ft. Collins 7 BOULDER Boulder GIU' IN 4 avrgetow CLEAR GREEK 1O kenridge GUNNISON CHAFFEE 26 8 • Gunnison Salida • SAN MICUEL Dorm HINSDALE • Lake Cityr, 67 Telluride 27 Cortez • • Durango MONTEZUMA LA PLATA 34 42 Creede MINERAL 40 III _ 47 Golder. • JEFF EPSON 30 • Greeley WELD 62 OMFIELD 80 LOGAN 39 Sterling MORGAN 44 Fort Morgan ADAMS DENVER 16 3 ARAPAH OE Akron • WASHINGTON 61 Jule5rurg SE $GW ICK Holyoke 48 • PHILLIPS Wray • YUMA 63 Castle Rock • DOUG LAS 18 k Iowa 20 • ELSERT SAC U ACH E 55 Saguache . TELLER a Colorado Spgs • Cripple E L PASO Caei21 FREMONT. 22 canon City Hugo • LINCOLN 37 • Burlington KIT CARSON 32 Cheyenne CH EYENNE •ells 9 WestcI/tie �CUSTER 14 Del Norte RIO GRANDE 53 Pagosa Spgs ARCH U LETA 4 A LAMOSA Alamosa CON EJOS 11 •Cone}os COSTILLA 1? San Luis Pueblo • PUEBLO 51 Trinidad • CROWLEY 13 Ora" La Junta • OTERO 46 LAS ANIMAS 36 Eads • KIOWA 31 Las Animas • BENT 6 Lamar • PROW ERS 50 Springfield • BACA 5 2017 \Veld County Pnpuny Assessment Study Page 4 WILD' • E All R IzU_ I\ttJKPt)H\7II) Audit Division Historical Information Weld County had an estimated population of approximately 294,932 people with 74.0 people per square mile, according to the U.S. Census Bureau's 2016 estimated census data. This represents a 16.7 percent change from April 1, 2010 to July 1, 2016. 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 Latham, an 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. wilkipedia. org) ?O17 \Veld (()u111V Property .Asse"n1cnt Stuck Pairs 5 I ilik.1.1111(111:•‘1 INt i,l(Polt\11U WILD ' • 'E 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, 2015 through June 20, 2016. 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 IAAO 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. For the largest 11 counties, the residential ratio statistics were broken down by economic area as well. 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 Median Ratio Between .95-1.05 Between .95-1.05 Between .95-1.05 Between .95-1.05 Coefficient of Dispersion Less than 20.99 Less than 15.99 Less than 15.99 Less than 20.99 2017 Weld County Property Assessment Study Page 6 WILD • • E AI'PR.\I \I_ IM1.)KI%)K.\7LID Audit Division The results for Weld County are: Weld County Ratio Grid Property Class Commercial/Industrial Condominium Single Family Vacant Land Number of Qualified Sales 206 N/A 10,787 433 Unweighted Median Ratio 0.981 N/A 0.972 1.000 Price Related Differential 0.993 N/A 1.007 1.016 Coefficient of Dispersion 8.7 N/A 6.5 10.7 Time Trend Analysis Compliant N/A Compliant Compliant Ratio Statistics for CURRTOTITASR Price Related Group Median Differential Coefficient of Dispersion 0 .972 2 .968 3 .979 '4 .969 .953 .978 .966 .961 .972 99 .973 Overall .972 1.004 1.006 1.004 1.007 1.019 1.009 1.011 1.012 1.006 1.004 1.007 .057 .057 .061 .063 .111 .088 .127 .079 .070 .044 .065 NOTE: Econ Area 99 = Condominiums 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 2017 Weld County Property .Assessment Study Page 7 WILD :1PPR.\IS U.. 1\t t)RrORVI I'II► 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, we 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 2017 Weld County Property Assessment Study Page 8 S' :il'1'R.Vr 11_ IN( tilwoRA 1 I i' WILD' • 'E 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. 201 7 \Veld County Property ..Nsse"munt Study Page �� file° iI'PK.V,l!_ I\cORPO VIII) WILD' • E Audit Division Sold / Unsold Results Property Class Commercial/Industrial Condominium Single Family Vacant Land Results Compliant N/A 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 2017 \Veld County Property Assessment Study Page 1 O WILD ' 'E Al'PRA1s U.. IN( tli{1't lK \ ill) Audit Division AGRICULTURAL LAND STUDY Grazi 50.19% Acres By Subclass Waste 2.80 Sprinkler 6.26% Flood 10.80% Dry Farm 29.26% Meadow Hay 0.69% 70.000.000 60.000,000 50,000.000 40.000,000 30.000,000 20,000.000 10,000,000 0 Value BySubclass A\ to 0 4 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: 2017 \Veld County Property Assessment "tudl) Patzc 1 l OlkAI'I'R.\Iti U_ IN( ( )RI OIt\l LI► WILDE Audit Division Weld County Agricultural Land Ratio Grid Abstract Code 4107 4117 4127 4137 4147 4167 Total/Avg Land Class Sprinkler Flood Dry Farm Meadow Hay Grazing Waste Number Of Acres 120,545 207,981 563,463 13,194 966,333 53,982 1,925,498 County County Value Assessed Per Acre Total Value 245.53 307.46 42.24 46.74 6.60 2.22 29, 597, 347 63,946,370 23,799,788 616,750 6,377,596 119,940 64.64 124,457,791 WRA Total Value 27,564,881 62,417,203 22,671,648 616,750 6,377,596 119,940 119,768,018 Ratio 1.07 1.02 1.05 1.00 1.00 1.00 1.04 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 substantially complied with the procedures provided by the Division of Property Taxation for the valuation of agricultural outbuildings. Recommendations None 201 7 \Veld County Property Assessment Study Page 12 illkAl'l`K.klaii_ IN( URfl1R%II.l► WILD' • E 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 substantially 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 ?O17 Weld U)ulltV Prc)l)CrtV 2V,m.ussment Study Page 1 3 filik:VPIlltAIr U. IN( uRPOItIL I IA) WILD • • E 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 r lect 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 ver f ed 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 2017 for Weld County. This study was conducted by checking selected sales from the master sales list for the current valuation period. Specifically WRA selected 56 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 $ 500, 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. When less than 50 percent of sales are qualified in any of the three property classes (residential, commercial, and vacant land), the contractor analyzed the reasons for disqualifying sales in any subclass that constitutes at least 20 percent of the class, either by number of properties or by value, from the prior year. The contractor has 2017 \Veld County Property A`scs nicnt Study Page 14 filkAPPRAISAL I NCORPtntATE:E'+ WILD' E Audit Division 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 conducted further analysis to determine if the sales included in that code have been assigned appropriately. If 50 percent or more of the sales are qualified, the contractor has reviewed a statistically significant sample of unqualified sales, excluding sales that were disqualified for obvious reasons. Weld County did not qualify for in- depth subclass analysis. Conclusions Weld County appears to be doing a good job of verifying their sales. WRA agreed with the county's reason for disqualifying each of the sales selected in the sample. There are no recommendations or suggestions. Recommendations None 2017 Weld County Property Assessment Study Page 15 IlkAPPR.%1: U.. I Nil c11{11O1O.1 FE' WILDE 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 2017 Weld County Property :\ssessment Studs' Page 16 lik; I I'K.\lS.11_ l\t t,HPORA1 El) WILD' • 'E 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 Methodolog y 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 2017 `Veld (County Property Assessment Study PaLc 17 WILD' • E :A}'PR.U' lt.. I \Ct )R Pt )Itl7 In Audit Division VACANT LAND Subdivision Discounting Subdivisions were reviewed in 2017 in Weld County. The review showed that subdivisions were discounted pursuant to the Colorado Revised Statutes in Article 39-1-103 (14). Discounting procedures were applied to all subdivisions where less than 80 percent of all sites were sold using the present worth method. The market approach was applied where 80 percent or more of the subdivision sites were sold. An absorption period was estimated for each subdivision that was discounted. An appropriate discount rate was developed using the summation method. Subdivision land with structures was appraised at full market value. Conclusions Weld County has implemented proper procedures to adequately estimate absorption periods, discount rates, and lot values for qualifying subdivisions. Recommendations None 201 7 Weld County Property Assessment Study Page 1S WILD' • 'E APPItAISut_ IN(t)R1%f tkl u Audit Division POSSESSORY INTEREST 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 PROPERTIES 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 '017 `'V cld County Propel -1\ \"c`snieilt Study Page 19 01, :1JPR.Ui-ia. 1Mu Rfl)H.A1 u WILD' • E 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 2017 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 • Accounts with omitted property • Same business type or use 2017 Weld County Property Assessment Study Pate 20 WILD' • E APPRAISAL IN( tRIc1R_k I I:U Audit Division • Businesses with no deletions or additions for 2 or more years • Non -filing Accounts - Best Information Available • Accounts close to the $7,400 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 C O D 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 2017 \'Fuld County PrOJ)Crty Assessnient Study Page. 21 WILD' • E :A1'PR.1N \l_ I \t`t)ftf't)1t17 El) 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 2017 W'i'eld County Property Assesment Study Page 2 Olk:1!'rR.\1:‘lt_ INcc;RINIR TEA) WILD ' • 'E Audit Division APPENDICES • 2017 Weld County Property :\sse"mcut Study Page 23 likArru\I'U I\(iIHN'H\lth Audit Division `'VILDROSE STATISTICAL COMPLIANCE REPORT FOR WELD COUNTY 2017 I. OVERVIEW Weld County is an urban county located along Colorado's Front Range. The county has a total of 129,186 real property parcels, according to data submitted by the county assessor's office in 2017. The following provides a breakdown of property classes for this county: 4.9 C 0 U 100,000 - 80,000 - 60,000 - 40,000 - 20,000 - Real Property Class Distribution 1 11472 1 81336 4899 31479 i Vacant Land Res Imp Commllnd Imp Other The vacant land class of properties was dominated by residential land. Residential lots (coded 100 and 1112) accounted for 78.0% of all vacant land parcels. For residential improved properties, single family properties accounted for 92.4% of all residential properties. Commercial and industrial properties represented a much smaller proportion of property classes in comparison. Commercial/industrial properties accounted for 3.8% of all such properties in this county. II. DATA FILES The following sales analyses were based on the requirements of the 2017 Colorado Property Assessment Study. Information was provided by the Weld Assessor's Office in April 2017. The data included all 5 property record files as specified by the Auditor. 2017 Statistical Report: WELD COUNTY Page 24 WILDROSE .1PP.t% . : 1•.c uP!'IP i! l Audit Division III. RESIDENTIAL SALES RESULTS There were 10,787 qualified residential sales that occurred in the 18 -month sale period between January 1, 2015 and June 30, 2016. The sales ratio analysis results were as follows: Case Processing Summary Count Percent ECONAREA 0 924 8.6% 2 3121 29.1% 3 2828 26.3% 4 715 67% 5 100 0.9% ................. . 6 1937 18.0% 7 45 0.4% 8 121 1.1% 9 350 3.3% 99 600 5.6% Overall 10741 100.0% Excluded 46 Total 10787 Ratio Statistics for CURRTOT / TASP Price Related Coefficient of Group Median Differential Dispersion 0 .972 1.004 .057 2 .968 1.006 .057 3 .979 1.004 .061 4 .969 1.007 .063 5 .953 1.019 .111 6 .978 1.009 .088 7 .966 1.011 .127 8 .961 1.012 .079 9 .972 1.006 .070 99 .973 1.004 .044 Overall .972 1.007 .065 NOTE: Econ Area 99 = 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: 2017 Statistical Report: A\ ELD COUNTY Page 25 U C v 3 a. v I- 4,000- 3,000- 2,000- 1,000- 4.00 3.00 O in 2.00 R 40 lik; ITR\I-\i IM t>kh>k.\II I> WILDRCSE Audit Division I 0.00 1.00 2.00 3.00 4.00 salesratio I I I Mean = .98 Std. Dev. _ .103 N = 10,787 1.00 0.00 • • • • • 1 _ • Residential Sale Price by Sales Ratio 1 I 1 1 1 I $0 $10,000,000 $20,000,000 TASP $30,000,000 $40,000,000 The above graphs indicate that the distribution of the sale ratios was within state mandated limits. 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: 2017 Statistical Report: WELD COUNTY Page 26 99 1 (Constant) SalePeriod W1LDROSE Audit Division Coefficient? ECONAREA Model 2 3 1 (Constant) SalePeriod (Constant) Unstandardized Coefficients B Std. Error . 971 .017 Standardized Coefficients Beta t SalePeriod 1 (Constant) . 000 .002 _ . 983 .006 . 000 .001 . 966 .003 -.017 55.580 -.115 Sig. . 000 .909 -.007 167.619 -.216 374.255 . 000 .829 . 000 SalePeriod .000 1 (Constant) .979 .000 .003 . 019 1.042 .298 .000 304.397 SalePeriod . 000 .000 . 016 (Constant) . 981 . 007 SalePeriod . 000 . 001 -.014 1 (Constant) 1 1.008 . 032 1 SalePeriod -.003 _ (Constant) SalePeriod (Constant) 1.002 .003 .007 -.086 .845 140.862 -.371 31.310 . 398 . 000 . 711 . 000 -.854 .395 153.350 .000 -.001 _ 1.039 . 001 -.021 SalePeriod 8 1 (Constant) SalePeriod 1 (Constant) -.005 1.006 -.005 . 987 SalePeriod -.001 . 983 -.001 . 046 . 005 . 028 . 003 . 010 . 001 . 005 . 001 -.942 -.161 -.151 -.062 -.060 . 346 22.381 - 1.070 36.150 - 1.663 97.780 -1.163 183.208 - 1.460 . 000 . 291 . 000 . 099 . 000 . 246 . 000 . 145 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 2017 between each group. The data was analyzed both as a whole and broken down by economic area, as follows: Report VALSF sold I '! Median Mean 0 69,920 1 10,787 $166 $170 $199 $172 2017 Statistical Report: WELD COUNTY Page 27 4 WILDROSE .il'ru UrU ��1 upr'JRUI I> Audit Division Report VALSF ECONAREA sold N Median Mean 0 2 3 4 UNSOLD 5,668 $178 $188 SOLD 924 $181 $181 UNSOLD 19,037 $172 $183 SOLD 3,121 $172 $176 UNSOLD 14,312 $174 $228 SOLD 2,828 $175 $182 UNSOLD 5,723 $152 $190 SOLD 715 $164 $166 5 6 7 8 9 99 UNSOLD 1,234 $130 $130 SOLD 100 $164 $158 UNSOLD 16,755 $157 $219 SOLD 1,937 $165 $161 UNSOLD 796 $77 $362 SOLD 45 $99 $114 UNSOLD 619 $131 $178 SOLD 121 $147 $151 UNSOLD 2,281 $169 $161 SOLD 350 $184 $178 UNSOLD 3,325 $133 $133 SOLD 600 $142 $144 We also examined the overall median and mean change in actual value for taxable years 2016 and 2017 for residential sold and unsold properties, as follows: Report DIFF sold N Median Mean 0 67,083 1.26 1.29 1 9,952 1.27 1.28 2017 Statistical Report: WELD COUNTY Page 28 likNI PH 1h a I", i Ik IN ili%II I' WILDROSE Audit Division Hypothesis Test Summary Null Hypothesis Test Sig . Decision Independent - The distribution of DIFF is the sam Samples across categories of sold. �l a n n - Whitney U Test Retain the .984 null hypothesis. Asymptotic significances are displayed. The significance level is .05. The above results indicate that sold and unsold residential properties were valued in a consistent manner. IV. COMMERCIAL/INDUSTRIAL SALE RESULTS There were 206 qualified commercial/industrial sales that occurred in the 18 month sale period between January 1, 2015 and June 30, 2016. The sales ratio analysis results were as follows: Median 0.981 Price Related Differential 0.993 Coefficient of Dispersion 8.7 The above table indicates that the Weld County commercial/industrial land sale ratios were in compliance with the SBOE standards. The following histogram and scatter plot describe the sales ratio distribution further: 2017 Statistical Report: WELD COUNTY Page 29 WILDROSE 1ri•a 11 -\t 1.i (WI, 1if I' Audit Division 80 — 60 — 0 C a! 40 — as LL 1.0 1 1 .4 Mean = .97 Std. Dev. _ .144 N = 206 NO 1 0.0 0.2 0.4 0.6 0.8 salesratio 1.4- 12- 1.0 0.6- 0.4- 0.4 - 0.2- 0.2 - 0.0- 0.0 - )ic Commercial Sale Price by Sales Ratio x x u x Xx xx x x x x i i I I 1 ► F r $5,000,000 $10,000,000 $15,000,000 $20,000,000 TASP $0 2017 Statistical Report: WELD COUNTY Page 30 ilk Audit Division WILDROSE lrruv-\I hi. LIPP,INN,itu Commercial /Industrial Market Trend Analysis The 206 commercial /industrial sales were next analyzed, examining the sale ratios across the 18 -month sale period with the following results: Coefficient? Model 1 (Constant) .971 .020 48.997 .000 SalePeriod .000 .002 -.013 -.192 .848 Standardized Unstandardized Coefficients Coefficients B Std. Error Beta t Sig. a. Dependent Variable: salesratio 1.4-' 1.2- 1.0 O is 0.8- U, • up 0.6- 0.4 - 0.2 - 0.0 - + Commercial Market Trend Analysis- ♦ + .} + + ♦ + + t + t + .. ..p. ..... .....M.. .. . . ;.. S..S. . . S..:k.............. a f + + $ * i ,T, t * $ t : * $ + ++ + +$ + + I 0 I 5 I 10 SalePeriod 1 15 I 20 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 commercial/industrial land valuation. Sold/Unsold Analysis We compared the median actual value per square foot for 2017 between sold and unsold groups to determine if sold and unsold properties were valued consistently. Based on the amount 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: 2017 Statistical Report: WELD COUNTY Page 31 VVILDROSE I tkh 'RN I I !) Audit Division Report VALSF ABSTRIMP sold N Median Mean 2212 2220 2230 UNSOLD SOLD 2235 UNSOLD SOLD UNSOLD 2245 3215 Total SOLD UNSOLD SOLD UNSOLD SOLD UNSOLD SOLD UNSOLD SOLD 647 $72 32 $110 359 $99 16 $116 979 $100 41 $140 846 545 25 $70 828 $87 61 $89 282 $61 8 $80 3,941 $75 183 $90 $2,233 $123 $194 $122 $45,362 $24,114 $5,027 $69 $119 $98 $19,916 $79 $14,182 $5,480 Hypothesis Test Summary Null Hypothesis Test Sig. Decision Independent - The distribution of VALSF istheSamples 1 same across categories of sold. hAh- 111fhi ntn ey U Test Reject the .000 null hypothesis. Asymptotic significances are displayed. The significance level is .O5. Given that there was a statistically significant difference using the non -parametric Mann Whitney U test, we next compared the percent change in actual value between taxable years 2O16 and 2O17 for sold and unsold commercial properties in Weld County, as follows: 2017 Statistical Report: WELD COUNTY Page 32 •.\I'PH V -V IMil}ti.ik'III' Audit Division WILDROSE Report DIFF ABSTRIMP sold Median Mean 2212 UNSOLD 646 1.10 1.19 SOLD 32 1.50 1.64 2220 UNSOLD 356 1.09 22.12 SOLD 16 1.24 1.40 2230 UNSOLD 979 1.10 10.24 SOLD 41 1.43 1.76 2235 UNSOLD 836 1.12 12.19 SOLD 25 1.24 1.54 2245 UNSOLD 824 1.13 1.19 SOLD 61 1.22 1.37 3215 UNSOLD 277 1.10 39.46 SOLD 8 1.59 1.71 Total UNSOLD 3918 1.11 10.41 SOLD 183 1.29 1.54 Hypothesis Test Summary Null Hypothesis Test Sig. Decision Independent - The distribution of DIFF is the sam Samples 1 across categories of sold. Mann - 9 Whitney U Test .000 Reject the null hypothesis. Asymptotic significances are displayed. The significance level is .05. Given that both of these comparisons indicated a statistical difference between sold and unsold commercial/industrial properties, we next developed an econometric model that used the assessor's actual value as the predicted variable. A total of 4,126 commercial/industrial properties were analyzed. commercial/industrial property subclasses included the following: 2017 Statistical Report: WE:LD COUNTY Page 33 WILDROSE :NhPk \1^ k1 I\(-nN1Y>H 3 i 1 1> Audit Division ABSTRIMP Cumulative Frequency Percent Valid Percent Percent Valid 2212 680 16.5 16.5 16.5 2220 375 9.1 9.1 25.6 2230 1021 24.7 24.7 50.3 2235 871 21.1 21.1 71.4 2245 889 21.5 21.5 93.0 3215 _ _ 290 7.0 7.0 100.0 Total 4126 100.0 100.0 We developed a stepwise regression model to test whether sold and unsold properties were valued differently by the assessor. To do this, we included a binary variable for sold/unsold status. For the model, sold properties were coded "1" and unsold properties were coded "0." Other variables tested included improved area, age, economic area, and commercial /industrial subclass. The stepwise regression analysis adds variables to the model based on their contributory strength, as measured by their t or p values (depending on the test) . Due to the number of sales, we used a p value of 0.02 and the tolerance threshold. At each step, a variable is added, and variables already in the model are re-evaluated to determine if they should remain in the model. After it is determined that adding additional variables will not improve the model's predicative or explanatory power, the process stops. Variables not included that this point are determined to not be significant. In this analysis, our primary focus was the sold/unsold variable previously described. After 5 iterations, the following results were generated by the model: Model Summary Model R Adjusted R R Square Square Std. Error of the Estimate 1 .762a 2 .764D 3 /66 4 .766D . 580 .580 . 584 .584 . 586 .586 . 587 .587 5 .767e .588 .587 1355501.458 1349441.636 1345960.515 1344481.993 1343539.483 a. Predictors: (Constant), LIVEAREA b. Predictors: (Constant), LIVEAREA, T2235 c. Predictors: (Constant), LIVEAREA, T2235, T2245 d. Predictors: (Constant), LIVEAREA, T2235, T2245, T2220 e. Predictors: (Constant), LIVEAREA, T2235, T2245, T2220, AGE The following coefficients were included in the model at Step 5: 2017 Statistical Report: WELD COUNTY Page 34 WILDRQSE \PIN \1-11 Is.t I WNI,,N id I I, Audit Division 5 (Constant) LIVEAR EA T2235 T2245 T2220 AGE 316687.862 49.110 - 357162.989 - 229258.258 231058.321 -285.936 32294.099 .654 54706.321 54946.506 75765.750 109.781 . 757 -.070 -.045 . 032 -.026 9.806 75.089 - 6.529 -4.172 3.050 - 2.605 . 000 . 000 .000 . 000 .002 . 009 a. Dependent Variable: CURRTOT The model at Step 5 did not include the Sold/Unsold variable, indicating that it did not make a significant difference in the model whether the properties were sold or unsold. Based on this finding, we concluded that the assessor valued sold and unsold commercial properties consistently in 2017. V. VACANT LAND SALE RESULTS There were 433 qualified vacant land sales that occurred in the 18 -month sale period between January 1, 2015 and June 30, 2016. The sales ratio analysis results were as follows: Median 1.000 Price Related Differential 1.016 Coefficient of Dispersion 10.7 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: 0.0 0.5 1.5 1.0 salesratio 2.0 Mean = .99 Std. Dev. = .176 N = 433 2017 Statistical Report: WELD COUNTY Page 35 WILDROSE :iP1•H\I3/41I l'+ n1+h+H\1I U Audit Division to U, 2.0 1.5 0.5 0.0 x Vacant Land Sale Price by Sales Ratio 5c x x x x x x Y » Y 1 I $0 $500,000 I I I I $1,000,000 $1,500,000 TASP $2,000,000 I $2,500,000 The above histogram indicates that the distribution of the vacant land sale ratios was within state mandated limits. No sales were trimmed. Vacant Land Market Trend Analysis We next analyzed the 433 vacant land dataset using the 18 -month sale period, with the following results: Coefficient? Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 1.014 .014 72.100 .000 SalePeriod -.004 .002 -.110 -2.308 .021 a. Dependent Variable: salesratio 2017 Statistical Report: MID COUNTY Page 36 WILDROSE 1P1'k\I-\! I\, I WIN 1• Audit Division 2.0- 1.5 - to in 1.0 4,1 rs U, 0.5- 0.0 - + Vacant Land Sales Market Trend Analysis + t II 0 a s • ••$•• •iis •t•t eilifillillialle555501 I Ii 0 5 I 10 SalePeriod 1 15 i I 20 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 taxable years 2016 and 2017 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 t J Median Mean 0 6,865 1.17 1.21 1 383 1.26 1.30 We also compared sold and unsold changes in value by subdivision with at least 6 sales, as follows: 2017 Statistical Report: WELD COUNTY Page 37 WILDROSE tIUH)14\iti Audit Division Report DIFF SUBNO sold N Median Mean UNSOLD 555 1.24 1.22 SOLD 16 _ 1.34 1.37 2528 UNSOLD 1 1.78 1.78 SOLD 3 1.83 1.80 w 2925 UNSOLD 80 1.80 1.78 SOLD 6 1.80 1.80 3124 UNSOLD 10 _ 1.88 1.88 SOLD 6 1.88 1.88 3210 UNSOLD142 1.30 1.30 SOLD 6 1.28 1.28 3372 UNSOLD 208 1.33 1.33 SOLD 27 1.25 1.25 3390 UNSOLD 6 1.28 1.24 SOLD 7 1.28 1.28 3605 UNSOLD 3 1.11 _ 1.07 SOLD 8 1.06 1.06 4017 UNSOLD 20 1.50 1.50 SOLD 6 1.50 1.50 4035 UNSOLD 8 1.94 1.73 SOLD 6 1.94 1.67 4203 UNSOLD 10 1.37 1.37 SOLD 21 1.37 1.37 _ 4396 UNSOLD 24 1.03 1.10 SOLD 15 1.20 1.18 4584 UNSOLD 38 1.29 1.28 SOLD 6 1.29 1.29 4765 UNSOLD 14 1.65 1.65 SOLD 6 1.65 1.61 4815 UNSOLD 4 1.22 1.22 _ SOLD 9 1.22 1.22 4919 UNSOLD 2 1.52 1.52 SOLD 7 1.52 1.52 6045 UNSOLD _ 6 1.04 1.04 SOLD 21 1.04 1.04 Total UNSOLD _ 1131 1.30 1.31 SOLD 176 1.28 1.33 Overall, we concluded that the county assessor valued sold and unsold vacant properties consistently. VI. AGRICULTURAL IMPROVEMENTS ANALYSIS The final statistical verification concerned the assigned actual values for agricultural residential improvements. We compared the 2017 median improved value per square foot for this group and compared it to the 2017 median improved value per square foot for residential single family improvements in Weld County. The following indicates that both groups were valued in essentially the same manner: 2017 Statistical Report: WELD COUNTY Page 38 WI LDROSE 1rrx.I ! 1,,IWI, I Audit Division Report IMPVALSF ABSTRIMP 11 Median Mean 1212 4277 73,783 $139 $137 1,134 $128 $134 ABSTRIMP VII. Conclusions Based on this 2017 audit statistical analysis, residential and vacant land properties were found to be in compliance with state guidelines. 2017 Statistical Report: WELD COUNTY Page 39 STATISTICAL ABSTRACT Residential Ratio Statistics for CURRTOT I TASP 95% Confidence Interval for Weighted Mean 95% Confidence Interval for Median C iD n' 2 (C C '1' a' C Upper Bound Lower Bound Upper Bound Lower Bound C Cv T. a' 2 C O CD 'L a a Lower Bound C cv Q W CC Q O U W O ►� f� r en r CD t` a1 O v v is , In CO cc a CO f 4 1- 1+ `e7 O O O O O r O r O O O tc� w O Q f` a) O r (-J CO Q O O O O O r O r r O O O O O O O O O O O O O v (rl f- r CO tO to v C4 N CO Co CO to CO N- a) o) c') f� OO n a) o) a) at O s a) o a) a) 0 r to Cn O C') to in O O r r co 't r` to N. to (ten O v CO (0 a) 0) CA 0) a) o) 0 a) 0 0) 0 tci CD en f` CJ to r` f- Cl r C ) to f` to h- f.- to CO OO tc-1 a) O a) a) to O) a1 O O1 of O1 v 1n r Cl f` to d v to r4 to N: in 1n in 'a to kr; to tri in 'a O Of 0 01 01 01 0) a1 01 Cr) 0) O N- O CV el 'a f'') C4 CJ CO N.- r-- f- CO N. O1 CO ger N. O1 O1 O1 O CD 0) O1 O 01 O a) r O O) to ti e CJ f 1n to C') to CO to f- to Cn f• d a CO f� O) a) a) O1 a) rn rn rn 0) a) rn ri Cl co a) a) en m to r Cl cn tO f- to f` tD to F- tO (O f- rn 0) 0) 0) rn rn a) a) a) 0 a1 DD CO ri to to in en to in co r+ Co co f- co co r O 1n CO CO CO a1 O 0 O1 0 O O O O a) O r r r r to O CO r f") O 1n f� to f` f• tc) O) fl 'e to N. - a) a) rn O1 CI) O1 O) O a) a) O Cl a1 Cl O) v co co en f` re - co to OD r` CO a1 0) (O 01 0) O a1 a) a) 0f 0) 01 a) 0) O N K In tO ti m C) Of 0) to C N N cv T n V to v 44 N C O u m ci ca a, c_ a, u C ti V C O V a' L O y at V a, v a, a N t1) t r C Cv 'C a+ 4- cv a) a, .O cv E a1 d a+ a RI I- a, O u Cv 4- r v cv a, 'C H N C r a E N N ca C O D n C cv r O L ro u 2 N P3 a1 L RI y d u a1 ro H distribution for the ratios. Commercial Land Ratio Statistics for CURRTOT I TASP O Ca z '1' r C C I1' V C O `) to a) 95% Confidence Interval for C (O a' 2 V 4- L n+ 95% Confidence Interval for Median C Ca a' 5 O r C '1+ u C n+ O U C O_ N n• ' a N a v a - C a, t C Upper Bound Lower Bound V c cv v' 2a+ Upper Bound Lower Bound C (C V a' 2 Upper Bound Lower Bound C ca a' 2 S a) r r+ CO O cn rn O) O rn O) O O) a) en to rn r Ca 0) OD CO O) CO v 0) CD 40 O evel may be greater than the specified level. Other confidence intervals are constructed by assuming CD a cv 5- a► > O u 4- u ci a) C F -- go N cv C O 5 a r N C cv r O 'C a) u Ca L to 0.1 v t.=. H WELD COUNTY Audit Division Ratio Statistics for CURRLND I TASP Coefficient of nterval for 95% Confidence 95% Confidence Interval for C 0 Weighted Mean 95% Confidence Interval for Median C C a' a) a? r C a+ G C C O � N C.; a) E a) N O 0 a Price Related 2 C a' 0 Upper Bound Lower Bound V - C Ch t � y 2 a, a A m - a) r a1 V > < 0 a Upper Bound Lower Bound C rt T_. •1' 2 Upper Bound Lower Bound C m s co r -- t• -- to r 0 0 LC1 rn r- 0 0 O O 0 0 0 RP"' IC, O O r CO CO rn may be greater than the specified level. Other confidence intervals are constructed by assuming a) a) n� O V To 4- r V a' F- N C 0 fa E D N N ca C 0 .Q $ C (O O z r_yy u N co ro L cal as a+ a) ro Cod •'• Itrs oft r a r N I I I 4 I I I I 1IlkAPPRJUs,u_ I%fl)RN)R.V1 E I) WILD ' E Audit Division Residential Median Ratio Stratification Sale Price Case Processing Summary Count Percent SPRec LT $25K 9 $25K to $50K 6 $50K to $100K 55 $100K to $150K 430 $150K to $200K 1302 $200K to $300K 4386 $300K to $500K 0.1% 0.1% 0.5% 4.0% 12.1% 40.7% $500K to $750K $750K to $1,000K Over $1,000K 4007 37.1% 501 4.6% 59 0.5% 32 0.3% Overall _ Excluded Total 10787 100.0% 0 10787 Ratio Statistics for CURRTOT / TASP Group LT $25K $25K to $50K $50K to $100K Median .919 1.860 1.232 $100K to $150K 1.016 $150K to $200K .977 $200K to $300K .972 $300K to $500K .970 $500K to $750K .952 $750K to $1,000K .926 Over $1,000K .968 Overall .972 Price Related Differential . 802 1.017 1.017 1.002 1.001 1.000 1.001 1.002 1.000 . 996 1.007 Coefficient of Dispersion . 357 .251 .270 . 103 .072 . 056 . 056 . 086 . 110 . 151 .065 Coefficient of Variation Median Centered 98.9% 38.4% 34.8% 16.1% 10.6% 8.0% 7.9% 11.5% 15.0% 25.2% 10.6% 2017 Weld County Property Assessment Study Page 42 I I •WILDRCSE Audit Division Subclass Case Processing Summary Count Percent ABSTRIMP 1212 10029 93.0% 1214 2 0.0% 1214 2 0.0% 1215 113 1.0% 1217 1 0.0% 1220 25 0.2% 1222 2 0.0% 1222 1 0.0% 1224 1 0.0% 0.0% 5.6% 1225 5 1230 600 1712 2 1714 1 1721 1 1724 1 0.0% 2212 1 0.0% Overall 0.0% 0.0% _ 0.0% 10787 100.0% Excluded 0 Total 10787 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered 1212 .972 1.008 .065 10.6% 1214 .925 .999 .050 7.0% 1214 1.067 1.002 .081 11.4% _ 1215 .989 1.010 .097 13.6% 1217 _ _ 1.169 1.000 .000 1220 1.011 1.044 .139 27.0% 1222 1.093 1.000 .020 1222 1.270 1.000 .000 1224 1.041 1.000 _ .000 1225 1.038 1.181 .196 1230 .973 1.004 .044 1712_ 1.064 1.006 .103 1714 .917 1.000 .000 1721 _____ .999 1.000 .000 1724 .937 1.000 .000 2212 .. .930 1.000 .000 Overall .972 1.007 .065 2.9% 45.6% 6.9% 14.6% 10.6% 2017 Statistical Report: `\ I:I D COUNTY Page 43 I 4 4 I WILD ' O. E Amman. !fit tutlriR.\1ti) Audit Division . 967 1.054 1.025 . 173 . 121 31.3% 18.1% . 967 2,000 to 3,000 3,000 sf or Higher Overall Excluded Total Age Case Processing Summary Count Percent AgeRec Over 100 75 to 100 277 2.6% 285 2.6% 50 to 75 25 to 50 5 to 25 5 or Newer Overall Excluded 680 1346 4922 3277 10787 6.3% 12.5% 45.6% 30.4% 100.0% 0 Total 10787 Ratio Statistics for CURRTOT / TASP Group Median Price Related Differential Coefficient of Dispersion Coefficient of Variation Median Centered Over 100 .985 75 to 100 50 to 75 25 to 50 .964 5to25 .972 5 or Newer .977 Overall .972 1.013 1.001 1.004 1.006 1.007 . 095 . 084 . 054 14.4% 12.5% 8.1% . 052 .065 7.1% 10.6% Improved Area Case Processing Summary ImpSFRec LE 500 sf 14 500 to 1,000 sf 844 1,000 to 1,500 sf 1,500 to 2,000 sf Count Percent 3573 3370 0.1 % _ 7.8% 33.1% 31.2% 0 sf 2389 _ 22.1% 597 5.5% 10787 100.0% 0 10787 2017 Statistical Report: WELD COUNTY Page 44 likVVILDICSE .\I'l'k11> \I I".( (lb!' 'kl it I) Audit Division Ratio Statistics for CURRTOT / TASP Group Median Price Related Differential Coefficient of Dispersion Coefficient of Variation Median Centered LE 500 sf 500 to 1,000 sf 1,000 to 1,500 sf 1,500 to 2,000 sf _ 2,000 to 3,000 sf 3,000 sf or Higher Overall . 914 . 952 . 972 .973 .968 1.026 1.007 1.006 . 978 1.006 . 977 1.002 . 972 1.007 .201 . 106 . 060 . 055 . 063 . 097 . 065 38.4% 19.9% 9.6% 8.3% 9.1% 14.0% 10.6% Improvement Quality Case Processing Summary Count Percent QUALITY 1 Overall _ Excluded Total 2 115 2483 23.0% 3 7379 68.4% 4 743 6.9% 5 54 0.5% 6 13 0.1% 10787 100.0% 0 10787 Ratio Statistics for CURRTOT / TASP Group Median Price Related Coefficient of Differential Dispersion Coefficient of Variation Median Centered 1 .961 2 .967 3 .973 4 .982 5 .967 6 .947 Overall .972 1.051 _ 1.013 1.004 1.010 1.007 1.003 1.007 . 211 . 084 . 055 . 076 _ . 091 .093 . 065 37.9% 13.9% 8.2% 9.9% 13.2% 16.2% 10.6% Improvement Condition Case Processing Summary Count Percent CONDITION 1 2 3 4 Overall Excluded Total 10 33 10715 29 10787 0 10787 0.1% 0.3% 99.3% _ 0.3% 100.0% 2017 Statistical Report: WELD COUNTY Page 45 VVILDROSE �.rle\I a 1\, ';j�, Audit Division Ratio Statistics for CURRTOT / TASP Price Related Coefficient of Group Median Differential Dispersion 1 1.655 1.518 .459 2 1.005 1.020 .177 MINSINIMIONINIS 3 .972 1.006 .064 4 .978 1.052 .105 Overall .972 1.007 .065 Coefficient of Variation Median Centered 58.3% 23.3% 9.9% 17.0% 10.6% Commercial Median Ratio Stratification Sale Price Case Processing Summary Count Percent SPRec LT $25K 3 1.5% $25K to $50K 3 1.5% $50K to $100K 25 12.1% $100K to $150K 24 11.7% $150K to $200K 24 11.7% $200K to $300K 39 18.9% $300K to $500K 29 14.1% $500K to $750K 20 9.7% $750K to $1,000K 6 2.9% Over $1,000K 16.0_ % Overall 100.0% Excluded 33 206 0 Total 206 Ratio Statistics for CURRTOT / TASP Group Median LT $25K 1.031 $25K to $50K 1.056 $50K to $100K .958 $100K to_$150K .979 $150K to $200K .993 $200K to $300K .982 $300K to $500K .947 $500K to $750K 1.000 _ $750K to $1,000K .965 Over $1,000K .970 Overall .981 Price Related Differential . 998 1.005 . 996 . 998 1.000 1.004 . 998 Coefficient of Dispersion . 019 . 058 . 109 . 079 . 078 . 113 .096 1.000 . 999 . 998 . 993 . 093 .037 . 045 .087 Coefficient of Variation Median Centered 10.7% 11.3% 20.5% 20.0% 14.8% 4.6% 7.3% 14.8% 2017 Statistic al Report: V1'LLD COUNTY Page 46 WILDROSE iIPN‘I,%t IM It 1IU Audit Division Subclass Case Processing Summary Count Percent ABSTRIMP 0 3 1.5% 1212 1 0.5% 1215 1 0.5% 1721 1 0.5% 1981 1 0.5% 2212 32 15.5% 2215 3 1.5% 2220 16 7.8% 2221 2 2225 3 2228 3 _ 2229 1 2230 38 2235 24 2245 61 2723 2 _ 3212 2 3215 8 9229 1 1.0% 18.4% 11.7% 29.6% 1.0% 1.0% 3.9% 0.5% 9249 1 0.5% 9259 1 0.5% 9279 1 0.5% Overall Excluded Total 206 100.0% 0 206 2017 Statistical Report: WELD COUNTY Page 47 WILDRCSE M1MUSid IsiUKJM1 A1Et) Audit Division Ratio Statistics for CURRTOT / TASP Group Median 0 1212 1215 . 166 . 906 _ 1.206 Price Related Differential 1.475 1.000 1.000 Coefficient of Dispersion . 726 Coefficient of Variation Median Centered 142.0% . 000 . 000 1721 1981 .960 2212 2215 2220 2221 2225 1.454 1.000 . 000 .976 . 930 . 997 . 813 1.117 2228 .985 2229 _ 2230 2235 2245 2723 3212 3215 .967 9229 1.250 9249 .554 9259 1.009 9279 .962 Overall .981 . 970 . 976 . 955 .988 . 795 . 998 1.000 1.007 1.013 1.006 1.132 . 965 . 998 1.000 . 979 . 985 1.000 .878 1.043 . 988 1.000 1.000 1.000 1.000 . 993 . 000 .061 _ . 032 . 069 .220 . 055 . 049 9.3% 5.4% 12.0% 31.0% _ 8.4% 9.3% . 000 .062 . 099 . 073 . 187 . 074 . 031 . 000 .000 . 000 . 000 . 087 8.8% 15.3% 9.7% 26.5% 10.5% 3.5% 14.8% Age Case Processing Summary Count Percent AgeRec 0 Over 100 75 to 100 50 to 75 25 to 50 5to25 5 or Newer 3 12 13 25 53 89 11 1.5% 5.8% 6.3% 12.1% 25.7% 43.2% Overall Excluded Total 206 0 5.3% 100.0% 206 2017 Statistical Report: WELD COUNTY WILDICSE Audit Division Ratio Statistics for CURRTOT / TASP Group Median Price Related Differential Coefficient of Dispersion Coefficient of Variation Median Centered 0 .166 Over 100 .983 75 to 100 .991 1.475 1.010 . 999 . 726 142.0% . 045 . 060 8.2% _ 8.6% 50 to 75 .974 1.032 . 074 25 to 50 .988 5 to 25 .983 5 or Newer .897 ......................... Overall .981 1.033 . 990 . 931 . 993 . 097 068 . 082 . 087 10.8% 15.5% 9.9% 9.8% 14.8% Improved Area Case Processing Summary Count Percent ImpSFRec 0 Overall Excluded 3 LE 500 sf 6 500 to 1,000 sf 1,000 to 1,500 sf 1,500 to 2,000 sf 2,000 to 3,000 sf 27 25 16 1.5% 2.9% 7.8% 40 3,000 sf or Higher 89 19.4% 43.2% 206 100.0% 0 Total 206 Ratio Statistics for CURRTOT / TASP Group Median Price Related Differential Coefficient of Dispersion Coefficient of Variation Median Centered 0 LE 500 sf 500 to 1,000 sf .928 1,000 to 1,500 sf .973 .166 1.012 1.475 _ 1.031 1,500 to 2,000 sf .962 2,000 to 3,000 sf .986 3,000 sf or Higher .986 Overall .981 1.015 1.008 1.013 1.002 1.016 .993 . 726 . 041 . 097 . 062 072 . 065 . 083 . 087 142.0% 5.0% 12.1% 8.2% 9.7% 9.1% 13.9% 14.8% 2017 Statistic al Ruport: WELD COUNTY Pa e 49 Improvement Quality Case Processing Summary Count Percent QUALITY 3 1.5% 1 10 4.9% WILDROSE \PI'N IU\iI I Audit Division 2 13 63% 3 147 71.4% 4 32 15.5% 5 1 0.5% Overall 206 100.0% Excluded 0 Total 206 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered .166 1.475 .726 142.0% 1 .996 1.001 _ .103 19.7% 2 1.000 1.031 .047 6.8% 3 .968 .996 .080 12.0% 4 1.000 .982 .062 9.6% 5 .980 1.000 .000 Overall .981 .993 .087 14.8% Improvement Condition Case Processing Summary Count Percent CONDITION 3 1.5% 2 3 1.5% 3 198 96.1% 4 2 1.0% Overall 206 100.0% Excluded 0 Total 206 Ratio Statistics for CURRTOT / TASP Coefficient of Price Related Coefficient of Variation Group Median Differential Dispersion Median Centered .166 1.475 .726 142.0% 2 .990 1.007 .078 12.2% 3 .982 1.000 .078 11.9% 4 .976 1.014 .016 2.2% Overall .981 .993 .087 14.8% 2017 Statistical Report: WELD COUNTY Page 50 WILDROSE : prktl-\t INA tU,!'wIL1I1, Audit Division Vacant Land Median Ratio Stratification Sale Price Case Processing Summary Count Percent SPRec Rec LT $25K Overall Excluded Total 24 5.5% $25K to $50K 114 $50K to $100K 170 $100K to $150K $150K to $200K 26.3% 39.3% $200K to $300K $300K to $500K $500K to $750K 34 32 28 15 8 7.9% 7.4% 6.5% 3.5% $750K to $1,000K 3 1.8% 0.7% Over $1,000K 5 1.2% 433 100.0% 0 433 Ratio Statistics for CURRLND / TASP Group Median Price Related Coefficient of Differential Dispersion Coefficient of Variation Median Centered LT $25K $25K to $50K $50K to $100K $100K to $150K $150K to $200K $200K to $300K _ $300K to $500K $500K to $750K $750K to $1,000K Over $1,000K 1.000 1.010 1.000 1.004 .982 1.007 . 925 . 995 1.004 .994 . 987 Overall 1.002 1.015 1.000 1.006 . 998 . 168 . 103 . 095 . 177 30.0% 17.2% 14.4% 29.0% .089 13.5% 1.003 1.003 . 999 1.003 1.004 . 101 . 090 . 045 . 235 . 017 1.016 107 17.2% 12.3% 6.5% 36.7% 2.8% 17.6% 2017 Statistical Report: WELD COUNTY Page 51 WILD' O+E ArttkL�_u_ 1MT4r0k%1LU Audit Division Subclass Case Processing Summary Count Percent ABSTRLND 100.00 120 200.00 23 300.00 6 400.00 1 520.00 1 27.7% 5.3% t4% 0.2% 0.2% 540.00 550.00 1 1 1112.00 1115.00 254 0.2% 0.2% 58.7% 1 0.2% 2112.00 2115.00 2120.00 2130.00 2135.00 3112.00 3125.00 9169.00 4 1 1 8 6 0.9% 1 0.2% 0.2% 1.8% 1.4% 0.2% 3 1 0.7% 0.2% Overall Excluded Total 433 0 433 100..0% Ratio Statistics for CURRLND / TASP Group Median Price Related Differential Coefficient Dispersion Coefficient of of Variation Median Centered 1.017 100.00 .972 200.00 1.002 300.00 .998 400.00 .992 520.00 .386 540.00 .694 1.022 . 981 1.000 1.000 . 138 . 075 .050 . 000 _ .000 20.6% 12.3% 7.4% 1.000 . 000 550.00 1112.00 1115.00 2112.00 2115.00 2120.00 . 544 1.000 . 748 1.026 1.000 1.980 1.000 1.036 . 000 . 093 15.6% _ 1.000 . 987 1.000 1.000 .000 .030 . 000 . 000 5.0% 2130.00 1.006 2135.00 .991 3112.00 1.079 3125.00 .996 9169.00 1.249 Overall 1.000 . 987 . 965 1.000 1.009 1.000 1.016 . 059 _ . 109 . 000 . 049 . 000 8.6% 16.7% 7.4% . 107 17.6% 2017 Statistical Report: WELD COUNTY Page 52 Hello