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Revaluation Shows Big Drop in Property Values

Naugatuck property values go down but taxes may not, officials warn.

 

Real estate property values are down 26 percent in Naugatuck in the past five years, according to revaluation of borough property that was recently completed.

An overview of new property valuation numbers was released Tuesday night at the Board of Mayor and Burgesses meeting at Town Hall. The assessor’s office will send out new property assessments to all Naugatuck real estate property owners on Friday.

The numbers released Tuesday show the largest drop in value was in residential property, which went down 29.1 percent since 2007, the most recent revaluation since this year’s study.

The revaluation was a mix of statistical and physical studies. It asked people to report any new additions or property changes – 62 percent of residents responded - and evaluators inspected only properties sold between Oct. 1, 2010 and Oct. 1, 2012, of which there were 368.

The report shows that utility property, such as that owned by the water company, dropped 19.5 percent. Industrial property values went down 17.6 percent, and commercial property values went down 3.8 percent. Because there are many more commercial properties than industrial, the weighted average of decline between commercial and industrial properties was about 5 percent, said Naugatuck Assessor George Hlavacek.

All told, in 2007, the total value of real estate property in Naugatuck was worth $1.8 billion; it is now worth $1.3 billion, a 26 percent drop.

Borough officials warned, however, that taxes will likely not go down anywhere near the rate of assessments.

Burgess Ron San Angelo, former mayor from 2003-07, said the same amount of taxes will likely need to be collected, so the mill rate will likely have to go up. That means many property owners might not see a tax break at all. 

“I just want to make that clear to all residents,” he said.

Naugatuck officials, who allocated $203,000 for the revaluation study, will set the mill rate once they set the budget in the spring. It is at that point that Naugatuck residents will figure out how much tax money they will owe in the 2013-14 fiscal year.

The borough contracted with Tyler Technologies to conduct the revaluation. Eric Hardy, area manager for the Northeast Region of that company, said there will likely be a slight shift in the tax burden from residential to commercial. That’s because commercial property value didn’t go down nearly as much as residential property value. 

Salim Serdah, Naugatuck project manager for Tyler Technologies, said a 26 percent drop in property values is about average for area towns.

People who have questions or concerns about their revaluation can make an appointment to discuss it with representatives from Tyler Technologies. They plan to have several appointment times that are convenient for residents and business owners.

Residents can also request a hearing from the Board of Assessment Appeals, though a discussion with the revaluation company is usually the first step.

After the 2007 revaluation numbers were released, hundreds of residents filed appeals because the revaluation was done at or near the peak of the housing market. From 2002 to 2007, residential property values went up 55 percent, commercial property values went up 72 percent and industrial property values went up 46 percent.

Since then, the housing market has dropped tremendously, and it shows in the revaluation study.

Evaluators say the average sale price of 444 homes in 2006 (reflected in the 2007 revaluation) was $223,480. The average sale price of 163 homes reflected in this revaluation is $170,176, a 24 percent decline.

Naugatuck property owners are relatively new to the revaluation process. That is because between 1979 and 2000, Naugatuck did not conduct revaluation fearing a spike in property values.

However, a state law was implemented that forced Naugatuck’s hand in part because the borough and other municipalities, such as Waterbury, waited so long between revaluations. The law states that the borough must conduct a revaluation of taxable real estate every five years.

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Mr Mike December 5, 2012 at 06:55 pm
Therein lies the big problem, the Town's "we can't adjust our spending attitude" that is just supposed to be accepted/tolerated by the taxpayer. Well, we don't have the money! Maybe you should consider reducing services, taking a pay cut, stop giving increases to town workers, etc. Good thing the State has mandated frequent revaluation of property or Naugatuck would have continued to utilize the inflated old ones for as long as it could be gotten away with.
Mr Mike December 5, 2012 at 06:57 pm
Amen to that!!!
Ronald J Merancy December 5, 2012 at 11:04 pm
Our town fathers need to understand these numbers:
residential properties values took a huge hit while all other types of properties, while taking a hit, did not take as BIG a hit. Please make sure you you adjust the mill rate accordingly!
Andrew Hanson December 6, 2012 at 01:45 am
When property values go up, our taxes go up. When property values go down, our taxes still go up. So when do we get a break? That's the question! I guess the answer is Never!
Silence Dogood December 6, 2012 at 03:31 am
What Naugatuck needing more tax revenue? Lets recap a few thing that have happened since our town meeting to discuss our current budget. Purchase of land off gun town road, must need another bird sanctuary as they bring in a tons of tax revenue. Several union contracts were given out with pay raises over several years (what about pay for performance). New police cars, Ipad and Ipods for students, I haven't met a child that has one yet but we spend a lot of money to buy them. Recommendation for business to get tax breaks, little or no taxes for several years. Know wonder there is no money and taxes continue to go up. Add another home to the for sale list, mine!
SuperDave December 6, 2012 at 01:09 pm
Recall what I have been saying for some time now in these posts as well as to all friends acquaintences: Someday our houses will be worth $50K and our taxes will be $50K. Naugatuck has an issue with trying to operate as if its the 50's and 60's and ignoring that manufacturing has gone away and not coming back. Until services are cut to a reasonable level, and thus budgets are cut, then we will continue this downward slide.
Derek December 6, 2012 at 05:40 pm
Gunntown was purchased by the town over 15 years ago.
Derek December 6, 2012 at 05:43 pm
Police and teachers don't live the high life, they struggle just the same as you. They are your neighbors and family. Shame on you, don't blame them for your poor financial planning.
brutus December 6, 2012 at 06:10 pm
poor financial planning? you don't know me, why would you make such assumptions? I'm in good financial standing. I would just like to stay that way! but you are DEAD WRONG about teachers and cops. I know many in town and they ALL do very well for themselves. I don't begrudge anyone for doing well. but there was a time when people became teachers and cops because they wanted to serve their community, not to make 6 figures, free healthcare, and ridiculous pensions. and believe me, the people I know who are teachers and cops STILL choose those professions because they want to serve their community. The problem is that after a couple of years they eventually get sucked into the union entitlement mentality and forget that their neighbors pay their salary.
brutus December 6, 2012 at 07:00 pm
and just to add, my friends and family who are cops, firemen, and teachers, including my wife who is a former teacher, all know where I stand and many of them agree with me. this is not an attack on individuals, rather it's an attack on the system. in fact, I know cops in town who would have been more than happy to keep the same salaries and make other concessions because they know how much the town is struggling. it was largely the union bosses and cops who don't live in town that pushed for more. and of course, they got it.
Dan December 6, 2012 at 07:46 pm
Want to make some cuts.Let's start with who picks up the trash at the schools.It gets sub out to USA HAULING.Why when we have our own town garbage trucks.
Vox Populi December 6, 2012 at 08:08 pm
Brutus, since the union management normally does the negotiating, the only way for change to be effected is for the rank and file union members to tell them to change or vote them out. Also, if I remember from the budget hearings last spring, for 6 of the 7 unions in the town, all new hires for the past few years are no longer on a pension plan but the govt. equivalent of a 401K. However the financial benefits of this change will not be felt for at least 10 more years until those under the pension plans start retiring in significant numbers.
Michael December 6, 2012 at 08:21 pm
This is absolute BULL. I can guarantee that if it were the other way we would ALL have our taxes increased so they could suck more money out of us.
And for those of you saying the budget is what it is, that's bull too. Naugatuck needs to tighten up it's belt and start reducing the budget. I know how federal, state, and local governments work. At the end of the fiscal year there's a crunch to spend all the money, or throughout the year money is blown because of the mentality, "spend or we can't ask for it in the budget next year". This is a fact. This needs to change and the budget needs to be reduced. This spend it or we lose it mentality is why the budget is what it is and theirs millions that could be easily cut. For instance, buying buildings in the town just for the heck of it. Naugatuck politicians need to wake up before all the good people have their homes foreclosed on, move out, and all the Waterbury trash moves in. Anyone else notice the food pantry lines growing??
Vox Populi December 6, 2012 at 08:43 pm
Everyone keeps saying they are going to move. My question is to WHERE? California where multiple cities are declaring bankruptcy, Nevada where houses twice our size here can be bought with half the money, but there are no jobs, or Jersey where their property tax problem makes ours look mild?
This is not just a Naugatuck problem, it is a State and Federal problem, it is just the buck stops at the local level. Michael if you know well how govt's work, why did you neglect to mention the unfunded mandates from the state and feds that have to be implemented locally and paid for by the local taxpayer? Or how about the fact the state tells local govts "do as I say not as I do" as evidenced by the state's borrowing $500 million?? The stink starts in Wash and has hit every state capital and we, the local taxpayer have to deal with it because it can't be pushed down any further.
brutus December 6, 2012 at 09:02 pm
vox, good points, particularly regarding state and federal mandates that we are stuck with. this is certainly not just a naugatuck problem. but why limit your examples to california, nevada, and jersey? might as well throw NY in there too! there are many states that present a more favorable environment than CT. some southern states and NH comes to mind.
Mr Mike December 7, 2012 at 12:26 am
Mr. Derek, I think you have a lot of nerve! I do not begruge Police, etc a decent wage, but increases must be tempered by the financial reality of the taxpayers. I thought we had planned pretty good financially, then two strokes, a heart attack, COPD and Cancer, along with the extreme lowering of home values, has taken away any hope for "the Golden Years". Loss of 401k values due to decline of US Manufacturing and Wall Street/Banks manipulations did not help either. All this has slanted my opinion of the benefits and pay increases being demanded and gotten by too many "civil servents". Hope you do not go through anything like this in your future and have to read something from one who seems to think they have all the answers, presenting their view of money management.
luan huynh December 8, 2012 at 03:04 am
Hope and Change! Hope and Change! I see none of that from this forum. I am crying now.
Vox Populi December 8, 2012 at 04:15 pm
If property taxes go up this year, it won't be due to the reval so much as:
http://naugatuck.patch.com/articles/connecticut-budget-crisis-could-devastate-towns-0aa267bf
brutus December 8, 2012 at 07:30 pm
just got the revaluation letter in the mail today. great to see the value of my property has dropped 40% in the 7 years since I bought my house. if the town finds a way to raise the property taxes on someone who has lost that much value in their home and is so underwater on their mortgage, I think there will be an uprising (since it will require a mill rate of about 53 - yes, 53). sometimes I wish I wasn't so responsible and had the audacity to just stop paying my mortgage every month. raise my taxes, and I may have no choice.
Mr Mike December 9, 2012 at 02:17 am
Brutus,
Your not alone. I keep estimating how long I want to keep paying property taxes on something that keeps decreaseing in value and because of Banking/Mortgage availability you cannot get "qualified" buyers in order to sell. I have to pay on my own for many "town services" which my taxes go to deliver to others, not me. I am tired of increased cost for Educational Expenses that seem to be going toward less then stellar results.Lets increase the taxes on other than homes(like cars, etc), so that if you make use of the school system, you still contribute a fair share, even if you just rent/lease.Maybe if everyone that was underwater, etc. just dropped there deed at town hall and said "its yours - let me outa here" yhey'd wake up? I know, very radical and impractical and bad for one's credit. But would'nt it be something to see.
Alicia January 23, 2013 at 02:54 pm
I own a condo. When we moved in almost 10 years ago the value of our property was almost the same as the 2007 assessment. No improvements have been made to our condo or any of our complex and our reval is now assessed a couple grand higher from the 2007 assessment. How can that be since the property value has dropped by more than 25 % all over town. The last 2 condos that were sold went for 25,000 dollars less then my new assessment. None of this makes sense to me. I hope I don't sound ignorant but I do try to do a lot of research to figure these sort of things out and I'm kinda coming up blank...
Paul Singley (Editor) January 23, 2013 at 04:04 pm
You do not sound ignorant at all. I'm sure you have the same questions as many people. I would say that it would not be a bad idea to contact the assessor's office and/or Tyler Technologies and set up an appointment to discuss your assessment. Maybe they have answers or possibly, they made a mistake. The assessor's office number is 203.720.7016. They can tell you how to proceed and get you in contact with Tyler Tech. Good luck.
brutus January 23, 2013 at 04:30 pm
Alicia, you have every right to raise these issues and dispute the valuation of your property. it may be wise to first contact a realtor and ask them to do a valuation on your property - they usually do this for free if they think you are likely to sell - so that you can walk into your meeting with some actual data. it is possible that your condo went up in value while most of the town experienced decreases in value since many factors go into a valuation, but it does seem unlikely. so definitely fight it if you can!
brutus January 23, 2013 at 04:36 pm
Alicia, I also just thought that you might be confusing appraised value and assessed value. if a property is appraised at $200,000, the assessed value is 70% of that, or $140,000. the assessed value is what we are actually taxed on. so could you be comparing your 2007 "assessed" value with your 2012 "appraised" value? that would account for the 30% dip in value you might have been expecting.
Ronald J Merancy January 23, 2013 at 07:34 pm
What this re evaluation has done is reshuffled where the money will come from. For example, my property "only" went down 10%, so what that means is I will pay MORE taxes than the person whose property value assessment went down 20%. Just because someone re valued your property does not mean you cannot sell it for more than that evaluation. My property is on top of Andrew Mountain, we have well water and septic tanks.I am an interior lot. I added a small addition, 300 square feet since last evaluation, which would NOT cover the cost adjustment. If any house on the mountain catches fire, it will most likely burn to the ground as it will take over 12 minutes for a fully loaded fire truck to come up the mountain> Only the trucks ( pumpers) that carry water should come as there are no fire hydrants. Property owners that have septic and well are paying an unfair added taxe as well.All are paying for the cost of running the water pollution control plant. The town fathers have decided to add the cost of running that plant to the general budget as a line item ITEM instead of allowing the WPC Board to add a sewer use fee. A NEW tax would be political sucide.A sewer use fee would be based on water usuage rates, Everyone would be charged their fair share, something this town rarely does. There are currently only 6 or 7 towns in the state, out of 169, that do not have sewer use fees. The state is actually considering taking action against any town that does not charge a sewer use fee.
brutus January 23, 2013 at 11:50 pm
Ronald, do you get an outrageous water bill every three months? trust me, those of us on city water are paying our "fair share," and besides, your complaint is a valid one, but the solution is not more fees and taxes. and I wish my property only went down 10%....or even 20% for that matter!
Lynn F. January 25, 2013 at 11:51 pm
Some people dodge the point that a budget needs to be balanced - no increases (or so called concessions) in a recession!!! PERIOD! BALANCE THE BUDGET - no excuses...
Lynn F. January 25, 2013 at 11:52 pm
Run the town like you (hopefully) run your household!!!
Mr Mike January 26, 2013 at 01:43 am
If they ran their households like they do the town, they would be in bankruptcy.
And there would be no innocent captives they could hold to ransom like they do the taxpayers of Naugatuck-it-in-and-run.
27Reasons May 8, 2013 at 03:42 am
I would never want to be a police officer myself, but they've got it made in the shade compared to teachers, who make far less money on average and are the focus of ongoing political attacks masked as reform. Naugatuck is just one part of a much larger sinking ship.
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Carol Grenier June 9, 2013 at 07:48 am
I wholeheartedly agree with Eric. I am thinking of taking my account to a different bank in protest.Read More (NAUGATUCK Savings & Loan perhaps) May sound silly to some, but in my opinion, changing the name of such an historic institution to me is blasphemous, not to mention sounding stupid. ION indeed!
Joe Norton June 10, 2013 at 10:14 am
Eric is right! smh @ NSB (ION)
Grumpy Guy June 11, 2013 at 12:08 pm
For anybody who's thinking about leaving NSB/ION...if you find better savings acct interest rates-Read More let me know!!
EddieGin June 8, 2013 at 09:48 pm
By 2025 you won't even recognized this Country, especially in the "Nut-Meg" state whereRead More Y'all worship those moronic DumboRATS. PUKE. By the by, I hope they Tax Y'all into the Ghettos of New Haven.