Atlantic City is trying to see if it can afford a citywide revaluation, which is a requirement before it can get out from under state oversight.
City Council will vote tonight to advertise for proposal requests to see revaluation services for all properties in the city.
“This is the first step,” Business Administrator Ron Cash said Tuesday. “We’ll see what the proposals are, and we’ll make a determination whether we can afford it or need to defer it.”
The city can’t afford not to do the revaluation on behalf of its residents and small businesses, Department of Community Affairs’ spokeswoman Tammori Petty said.
The city is currently under state fiscal oversight by the DCA’s Local Finance Board, with a revaluation necessary before that ends.
The last revaluation — in 2008 — cost $2 million.
“Failing to move forward with a revaluation will deny residents and businesses assessment reductions that are clearly warranted in light of market changes,” Petty said Tuesday. “The cost of revaluations can be spread over five years through the issuance of notes with a first payment coming due in 2014, which makes costs manageable as the revaluation is conducted and implemented.”
The city also is allowed to apply for Transitional Aid next year and beyond, if it needs help to meet its obligations, including the revaluation, she said.
The lack of a new revaluation has been mentioned as a problem in the city, especially after this year’s budget brought an increase of just more than 25 cents per $100 of assessed value on the tax rate. The entire amount was traced to $3.7 billion lost in ratables from successful casino tax appeals, city Revenue and Finance Director Michael Stinson said.
“We’re going to find out who has interest and what they can do,” Cash said of the proposal requests. “We have to be careful and diligent.”
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