OFFICE OF THE COUNTY

ASSESSOR

2012

OFFICE OF THE

COUNTY ASSESSOR

PORTFOLIO UPDATE

TODD KAUFMAN, CAE, MSA

LOUDOUN COUNTY ASSESSOR

JANUARY 17, 2012

DISCLOSURE

THE INFORMATION PROVIDED IN THIS PRESENTATION REPRESENTS A SUMMARY OF THE JANUARY 1, 2012 REAL PROPERTY PORTFOLIO AS OF JANUARY 12, 2012. THIS INFORMATION IS INTENDED TO ASSIST THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR DURING THE BUDGET AND TAX RATE SETTING PROCESSES. ASSESSMENT DATA WILL BE UPDATED AND PROVIDED DURING THE BUDGET PROCESS ON AN ONGOING BASIS.

CORE PROPERTIES: TAXABLE, NON-TAXABLE, DEFERRED

PRESENTATION SUMMARY

• INFORMATION PACKET AND REPORTS

• PRODUCTION OF THE TAX BILL

• PROPERTY CLASSIFICATION

• DISTRIBUTION BY CLASSIFICATION

• DISTRIBUTION BY ELECTION DISTRICT

• OVERALL PORTFOLIO SUMMARY

• RESIDENTIAL SUMMARY

• COMMERCIAL SUMMARY

• EXEMPT SUMMARY

• LAND USE PROGRAM SUMMARY

• FORECLOSURE UPDATE

• PERCENT CHANGE BY DISTRICT

LC REAL PROPERTY PORFOLIO

• SECOND LARGEST COUNTY PORTFOLIO IN VA.

• BASIS OF THE COUNTY’S LARGEST SOURCE OF REVENUE (APPROXIMATELY $700 MILLION)

• TAXABLE REAL PROPERTY PORTFOLIO VALUE OVER $56 BILLION WITH OVER 120,000 PARCELS

• NUMBER OF PARCELS DOUBLED SINCE 1997

• 5,000 PARCELS IN THE LAND USE PROGRAM, $26 BILLION DEFERRED @ $1.285 TAX RATE

• PROFESSIONALLY MANAGED BY THE COUNTY ASSESSOR AND A STAFF OF 34 FTES

• APPRAISAL STAFF: 4 SUPERVISING APPRAISERS, 15 RESIDENTIAL APPRAISERS, 4 COMMERCIAL APPRAISERS, AND 1 LAND USE TECHNICIAN

• SEE ROAP FOR OPERATIONAL OVERVIEW

ASSESSMENT, BUDGET, TAX RATE, TAX BILL

DEBT

SERVICE

($)

EDUCATION

OPERATING

EXPENSES

($)

LOCAL

GOVERNMENT

AGENCY

OPERATING

EXPENSES ($)

REVENUE

FROM

SOURCES

OTHER THAN

THE

PROPERTY

TAX ($)

BUDGETED

REVENUE

TO BE

RAISED BY

PROPERTY

TAX ($)

BUDGETED

REVENUE

($)

TOTAL

ASSESSED

VALUE OF

ALL

PROPERTY

($)

TAX

RATE

(%)

TAX RATE

(%)

*ASSESSED

VALUE OF

INDIVIDUAL

PROPERTY

($)

TAX BILL

($)

*ONLY PORTION OF THE PROCESS SUBJECT TO AN APPEAL BY AN INDIVIDUAL PROPERTY OWNER.

2012 PROPERTY CLASSIFICATION CODES (CODE OF VA 58.1-208)

120,123 PARCELS (NOT INCLUDING SCC)

1- CLASS 100 SINGLE FAMILY RESIDENTIAL URBAN

2- CLASS 200 SINGLE FAMILY RESIDENTIAL SUBURBAN

3- CLASS 300 MULTI-FAMILY RESIDENTIAL

4- CLASS 400 COMMERCIAL AND INDUSTRIAL

5- CLASS 500 AGRICULTURAL/UNDEVELOPED (20 ACRES TO 99 ACRES)

6- CLASS 600 AGRICULTURAL/UNDEVELOPED (OVER 99 ACRES)

7- CLASS 000 EXEMPT

8- CLASS 800 STATE CORPORATION COMMISSION (SCC)

RESIDENTIAL

$40,723,687,100 65%

MULTI FAMILY

$1,614,763,100 3%

COM/INDUST

$10,877,188,300 17%

RES 20-99.99 AC

$1,673,798,100 3%

RES > 100 AC

$1,299,078,200 2%

EXEMPT

$5,148,056,700 8%

SCC

$1,401,996,000 2%

2012 REAL ESTATE TAX BASE DISTRIBUTION

RESIDENTIAL 2012 - 70%

COMMERCIAL AND LARGE

MULTI-FAMILY 2012 - 22%

EXEMPT 2012 - 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2006 2007 2008 2009 2010 2011 2012

REAL ESTATE VALUE DISTRIBUTION 2005 TO 2012

RESIDENTIAL 113,169

94%

COMMERCIAL 5,772 5%

EXEMPT 1,182 1%

2012 PARCELS BY CATEGORY

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

1990 1995 2000 2005 2010 2015

T

H

O

U

S

A

N

D

S

AVERAGE RESIDENTIAL ASSESSED VALUE TREND

BLUE RIDGE 14,730 13%

BROAD RUN 18,347 16%

CATOCTIN 18,249 16%

DULLES 31,313 27%

LEESBURG 8,618 7%

POTOMAC 9,236 8%

STERLING 7,457 6%

SUGARLAND RUN 8,556 7%

2011 PARCEL ALLOCATION BEFORE REDISTRICTING

ALGONKIAN 13,808 12%

ASHBURN 14,489 12%

BLUE RIDGE 19,873 17%

BROAD RUN 12,455 10%

CATOCTIN 16,984 14%

DULLES 16,810 14%

LEESBURG 13,137

11%

STERLING 12,567 10%

2012 PARCEL ALLOCATION AFTER REDISTRICTING

$6

$7

$10 $10

$8

$9

$6

$5

$0

$2

$4

$6

$8

$10

$12

ALGONKIAN ASHBURN BLUE RIDGE BROAD RUN CATOCTIN DULLES LEESBURG STERLING

B

I

L

L

I

O

N

S

2012 TOTAL ASSESSMENTS BY DISTRICT (ROUNDED)

$4.6

$5.6

$8.5

$4.5

$7.3

$6.4

$3.6

$3.2

$0.8 $1.1 $0.7

$5.0

$0.4

$1.4 $1.6 $1.4

$0.5 $0.7 $0.8 $0.4 $0.5

$1.3

$0.7 $0.3

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9

ALGONKIAN ASHBURN BLUE RIDGE BROAD RUN CATOCTIN DULLES LEESBURG STERLING

B

I

L

L

I

O

N

S

Residential

Commercial

Exempt

2012 PARCEL ALLOCATION BY CLASS AND DISTRICT

2012 TAXABLE PROPERTY OVERALL

CHANGE (rounded) (REFER TO STATISTICAL ASSESSMENT SUMMARY – EXLUDES SCC)

• ALL REAL PROPERTY CHANGED 3.53% OR $1.9B;

FROM $54.3B TO $56.2B

• CHANGE IN *EQUALIZED VALUE 1.18% OR $641.7M * EQUALIZED CHANGE EXCLUDES NEW CONSTRUCTION AND GROWTH AND

CONSIDERS THE CHANGE IN VALUE OF PROPERTIES AS THEY EXISTED IN

THE PRIOR YEAR.

• CONSTRUCTION/GROWTH $1.27B (2,700 PARCELS)

• SUPPLEMENTAL ASSESSMENTS 2011 $206.5M

• SUPPLEMENTAL ASSESSMENTS 2012 $300M (EST.)

2012 OVERALL CHANGES (continued)

• RESIDENTIAL (CLASS 100) < ACRE +4.30%

• RESIDENTIAL (CLASS 200) >ACRE< 20 +0.13%

• MULTI-FAMILY (CLASS 300) > 5 UNITS +10.23%

• COMM/INDUST (CLASS 400) +3.97%

• RES (CLASS 500) >20 A < 100 A -1.04%

• RESIDENTIAL (CLASS 600) >100 A -2.30%

• EXEMPT +3.24%

• SCC +9.33%

2012 CLASS 100/200 CHANGE (110,780 PARCELS)

• EQUALIZED CLASS 100/200 CHANGE 1.11%

OR $434.7M

• OA CLASS 100/200 CHANGE 3.58% OR $1.4B

• NEW CONSTRUCTION AND GROWTH

INCREASED $971.5M

• AVERAGE EQUALIZED CLASS 100/200

VALUE IS $367,691

2012 CLASS RESIDENTIAL MARKET IMPACTS (REALLOCATION OF VALUE)

•LAND VALUES ARE FLAT WITH DEMAND AND

PRICES ON IMPROVED PARCELS INCREASING.

•INCREASED PRICE INFLATES IMPROVEMENT

ALLOCATION OF ASSESSMENT.

EXAMPLE:

2011 VALUE $100,000

•2011 LAND VALUE $25,000

•2011 IMPROVEMENT VALUE $75,000

2012 VALUE $103,000 (3% INCREASE)

•2012 LAND VALUE $25,000

•2012 IMPROVEMENT VALUE $78,000

2012 COMMERCIAL CHANGE (5,566 PARCELS)

• EQUALIZED COMMMERCIAL CHANGE

1.31% OR 136.9M

• OVERALL COMMMERCIAL CHANGE

3.97% OR $415.7M

• NEW CONSTRUCTION AND GROWTH

INCREASED $278.8M

2012 CLASS COMMERCIAL MARKET IMPACTS

•STABILIZED CAPITALIZATION RATES ON INCOME

PRODUCING PROPERTIES.

•STABILIZED VACANCY RATES FOR CLASS A/B

OFFICE IN NVA (COMPETITION W/FFC).

•HOSPITALITY SECTOR IMPROVING.

•LARGE MULTI-FAMILY UNITS VALUES INCREASED

DUE TO NOMINAL VACANCY AND STRONG

EMPLOYMENT MARKET.

•INVESTMENT CAPITAL LIMITED RESTRICTING

LENDING PRACTICES AND NEW DEVELOPMENT.

2012 EXEMPT CHANGE (1,182 PARCELS)

• EXEMPT BY CLASSIFICATION $4,863,013,400

• EXEMPT BY DESIGNATION (10 PARCELS VIA

ORDINANCE) $285,043,300 (HHMI PROVIDES LC APPROX. $1.2

MILLION PER YEAR IN VOLUNTARY FEES FOR SCHOOLS AND FIRE & SAFETY)

• TOTAL EXEMPT PROPERTY $5,148,056,700

• EQUALIZED CHANGE 3.24% OR $40.4M

• OA CHANGE 3.24% OR $161.6M

• NEW CONSTRUCTION AND GROWTH $106.5M

2012 - EXEMPTIONS BY CATEGORY

CATEGORY VALUE PARCELS

GOVERNMENT $ 3,927,661,600 709

RELIGIOUS $ 392,567,800 281

CHARITABLE $ 68,302,300 116

MISC NON-PROFIT $ 242,799,000 33

PRIVATE EDUCATION $ 231,682,700 33

BOS DESIGNATION $ 285,043,300 10

TOTAL $ 5,148,056,700 1,182

LAND USE PROGRAM

• FOUR QUALIFYING CATEGORIES – AGRICULTURE,

HORTICULTURE, FORESTRY, OPEN SPACE.

• DEFERRAL (NOT EXEMPTION) PROVIDED WHEN ALL

QUALIFYING CRITERIA FOR CATEGORY MET. TAXES

ARE ROLLED BACK FOR THE TERM OF THE

APPLICATION IF CRITERIA NOT MET.

• DEFERRAL COMPONENT SEPARATE AND DISTINCT

FROM FAIR MARKET VALUE ASSESSMENT.

REDUCES LEVY AMOUNT.

• DEFERRAL BASED ON LAND USE RATES SET BY

SLEAC (STATE LAND EVALUATION ADVISORY

COUNCIL).

• FURTHER PUBLIC INTEREST.

• ENCOURAGE PRESERVATION OF LAND.

• CONSERVE AND PROTECT NATURAL RESOURCES.

• PROTECT SAFE WATER SUPPLIES.

• PROMOTE ORDERLY LAND USE PLANNING AND

DEVELOPMENT.

LAND USE PROGRAM GOALS SUMMARY

LAND USE RATES (SLEAC RATES)

• AGRICULTURE AND HORTICULTURE HAVE EIGHT

RATES BASED ON SPECIFIC SOIL TYPES.

• AGRICULTURE RATES RANGE FROM $0 TO $70 PER

ACRE.

• HORTICULTURE RATES RANGE FROM $0 TO $70 PER

ACRE.

• FORESTRY HAS THREE RATES BASED ON QUALITY

RANGE OF FAIR, GOOD, AND EXCELLENT.

• FORESTRY RATES RANGE FROM $179 TO $412 PER

ACRE.

• OPEN SPACE RATE IS SET AT $1,700 PER ACRE.

2012 LAND USE ALLOCATION BY CATEGORY (4,979 PARCELS)

LAND USE DEFERRED TOTAL

CATEGORY VALUE ACRES

AGRICULTURE $ 1,395,159,850 109,576

HORTICULTURE $ 5,430,570 373

FORESTRY $ 346,780,680 29,054

Sub-Total (Production) $1,747,371,100 139,003

OS - SCENIC $ 14,581,260 1,049

OS - HISTORIC $ 448,550 33

OS - POSE/OSE $ 258,115,360 23,047

OS - PRES FARMLAND >20 AC $ 11,130,820 1,135

OS - AFD < 20 AC $ 1,832,370 97

Sub-Total (Open Space) $ 286,108,360 25,361

TOTAL $2,033,479,460 164,364

ALGONKIAN $587,760

0.03%

ASHBURN $23,936,490

1.18%

BLUE RIDGE $1,195,327,060

58.78%

BROAD RUN $6,715,440

0.33%

CATOCTIN $725,439,690

35.67%

DULLES $46,079,590

2.27%

LEESBURG $23,062,550

1.13%

STERLING $12,330,880

0.61%

2012 LAND USE DEFERRALS BY DISTRICT ($2.03 billion)

YEAR MO BLR BR CAT DLS LB PTMC STRLG SGR *ALGN *AB TTL

2011 1 12 8 9 3 9 5 6 2 1 55

2 6 13 8 15 5 1 7 4 1 60

3 4 8 8 24 8 1 5 6 64

4 7 11 15 15 7 8 9 1 1 74

5 13 11 11 12 13 7 7 1 2 77

6 8 11 10 26 11 4 10 3 4 87

*NEW 7 22 10 21 18 19 24 13 34 161

8 26 15 19 13 13 18 15 24 143

9 12 12 12 17 9 20 15 16 113

10 11 9 13 21 14 13 9 9 99

11 4 4 10 6 12 10 16 6 68

12 14 15 13 12 8 18 16 11 107

2011 139 127 149 182 128 26 147 17 85 108 1108

2010 91 148 180 278 126 97 152 97 N/A N/A 1169

2009 124 197 307 356 160 133 225 124 N/A N/A 1626

2008 213 284 294 415 295 182 465 244 N/A N/A 2392

2007 65 144 147 286 130 101 253 132 N/A N/A 1258

2006 5 29 24 28 22 18 31 13 N/A N/A 170

YEAR MO BLR BR CAT DLS LB PTMC STRLG SGR *ALGN *AB TTL

Totals 06 - 11 637 929 1101 1545 861 557 1273 627 85 108 7723

2011 FORECLOSURE SUMMARY YEAR END

0

50

100

150

200

250

300

350

400

450

500

BLUE RIDGE BROAD RUN CATOCTIN DULLES LEESBURG POTOMAC STERLING SUGARLAND RUN

ALGONKIAN ASHBURN

HISTORIC FORECLOSURES 2006 - 2011 (ALGONKIAN/ASHBURN ADDED AND POTOMAC/SUGARLAND RUN ELIMINATED 2010)

2006

2007

2008

2009

2010

2011

ELECTION

DISTRICT

EQUALIZED

CHANGE

TOTAL

CHANGE

COUNTYWIDE 1.18% 3.53%

ALGONKIAN 0.89% 1.14%

ASHBURN 1.30% 2.48%

BLUE RIDGE 1.45% 5.45%

BROAD RUN 2.99% 5.41%

CATOCTIN -1.32% 0.07%

DULLES 1.07% 6.68%

LEESBURG 1.45% 3.19%

STERLING 1.33% 1.55%

2012 TAXABLE PERCENT CHANGE SUMMARY (REFERENCE AVERAGE INCREASE AND TAX RATE” REPORT)

IMPORTANT DATES

JANUARY 1 – DATE OF VALUE FOR ASSESSMENTS

JANUARY 20 – ASSESSMENT NOTICES MAILED

JANUARY 20 – ASSESSMENT DATA LIVE ON-LINE

MARCH 1 – DEADLINE FOR OFFICE REVIEW APPLICATIONS

APRIL – BUDGET FINALIZED AND TAX RATE SET

JUNE 1 – DEADLINE FOR BOE APPLICATIONS

JUNE 5 – FIRST HALF REAL ESTATE TAXES DUE

NOVEMBER 1 – DEADLINE FOR LAND USE APPLICATIONS

DECEMBER 5 – LATE DEADLINE FOR LAND USE

APPLICATIONS ($300 PENALTY)

DECEMBER 5 – SECOND HALF REAL ESTATE TAXES DUE

IN SUPPORT OF PROACTIVE PUBLIC OUTREACH, THE ASSESSOR AND THE ASSESSOR’S STAFF

WILL GLADLY ASSIST BOARD MEMBERS AND THE COUNTY ADMINISTRATOR AT HOA,

NEIGHBORHOOD, AND OTHER PUBLIC EVENTS AND MEETINGS WHERE REAL ESTATE TRENDS

OR ASSESSMENT MATTERS ARE A POINT OF DISCUSSION.

THANK YOU