Officials continue to look at options for rising valuation and real estate costs

By Stuart Hedstrom 
Staff Writer

    MILO — Last month the selectmen reviewed a letter from Joshua Morin of Hamlin Associates of Parkman, assessor’s agent for Milo, at how to cope with a rise in the new state valuation and the resulting impact on the sale of properties. During a meeting on Nov. 12 the board met with assessor’s agents to review possible options.
    “As you know from the last meeting, you have some issues with your valuation and what the state requires of you,” said Elizabeth Morin of Hamlin Associates.

    Joshua Morin told the town officials they know that property is being sold for less than the assessed value. The current year’s combined state valuation is at 123 percent, indicating town properties are being assessed for more than the parcels are being sold for, and the time has come to bring these back down to market value.
    “No matter what, what we have to do is adjust these values one way or another,” Morin said as he presented the selectmen with several options. The first option would involve a town-wide factoring of buildings and land, at a rate of 15-20 percent on buildings and reducing the land to reflect market value.
    Morin said this would be the least expensive option, other than doing nothing, but in his mind would not be the best way to proceed. “If you have problems and you solve them by factoring, all you’re doing is factoring your problems worse,” he said.
    The second option would be a complete market sales data ratio of buildings and land to get these properties more in line to market value. “With this process we would actually get our feet out in the field,” Morin said, as the assessors would visit all buildings to see what structures are new and what is gone and then revisit grades and conditions to get values closer to market.
    Option No. 3 would be a full revaluation across town, taking about two years to complete on the approximate 1,700 parcels in Milo. The last revaluation in the community was completed in 2007, and this process is recommended to be done about every decade.
    While the percent is at 123 percent for all properties in Milo, the state allows towns to be within 10 percent of 100. The selectmen could opt to do nothing “but the ratio’s going to keep climbing,” Morin said, adding that whatever the town decides to do the same amount of money is needed for the municipal budget. He added that if no adjustments are made, then the number of abatement requests is likely to rise.
    Selectman Jerry Brown asked Morin what he would recommend, and Morin said the third option but “option two would do the same thing for a little less money, I think you can achieve that some goal with option two.”
    The town of Milo contracts with Hamlin Associates for its services and the three options would have prices per parcel, $10, $20 and $30 per the options in numerical succession. Based on a parcel total of 1,700 the totals would be $17,000, $34,000 and $51,000 — which can be spread across two years — along with the yearly contract price.
    Select Chair Lee McMannus said, based on some of the conversations he has had, residents feel their tax bills will decrease if action is taken and he is concerned because this is not necessarily what will transpire. If the values in town are reduced the mil rate will go up to reflect the changes made and allow for all of the monies needed to make up the municipal budget.
    Town Manager David Maynard said the valuation has been climbing and could increase beyond the 123 percent, perhaps to as high as 143 in the next few years depending on the market. He wondered if the town may get out of compliance again before a revaluation is even finished.
    “Any way you look at it it’s a gamble,” Selectman Bob Ade said about the unpredictability of the real estate market.
    “I really think we have to make a decision and make it quick because budget’s coming,” Brown said, as the board opted to not take any action during the Nov. 12 meeting.
    In other business, Maynard said the project manager for the Safe Streets Project was in town the week before for a walk-through of the completed work. “His statement to me was we have a clean sign-off,” Maynard said.
    He said there may be a few errors in the Route 11 project, but these are the responsibility of the state and not the town. Maynard said he wanted the board to be aware of this potential issue and he asked for their support “so the town should not be paying one cent” if adjustments to the road are needed.
    McMannus said the board needs to schedule a work session to go over potential ordinances for the town, with this meeting likely going to be held during the first week of December.
    “I think everyone should bring their ideas but I think we need to focus on a few — maybe prioritize,” he said.
    “I can tell you, we need them and we need them bad,” Brown said town ordinances. He mentioned that with the leaves gone problems with some homes in town are now clearly visible.