Every year, said Collier County Property Appraiser Abe Skinner, the Florida Dept. of Revenue issues a prediction for property values in Collier County. And every year, he said, they are wrong.

Skinner spoke to MITA, the Marco Island Taxpayers Association, Wednesday evening at the Marco Community Bank. While the state predicted Collier property values would be down 24 percent for 2008, the actual number is 11.4 percent, he told the association.

“Last year was a very unusual year for the world of appraisal, as was the year before that,” he said. For many years in the Sunshine State, property values and assessments have gone only one direction – up.

The 11 percent decrease in county property values is just an average, Skinner stressed. Values in the City of Naples went down just 5.7 percent, while some property in Golden Gate Estates was down 50 percent. But Marco Island valuations as a whole did track the county-wide average closely.

The numbers used for Wednesday’s presentation are preliminary figures, which Skinner’s office is required to supply on or before June first to the taxing authorities. The final assessment figures, due out July first, will vary slightly, he said.

Property sales are the most important yardstick the appraiser’s office uses to determine property values, and there have been new wrinkles recently in the types of transactions recorded in the county.

“Foreclosures are not sales,” said Skinner. “We like to use arms length transactions, where you have a willing seller and a willing buyer. We have seen a sharp increase in short sales,” where the selling price does not cover the amount owed on the property.

“I pointed out in a statewide property appraisers’ meeting in Lake City recently that short sales can create the market. If you have a number of short sales, that will affect the arms length sales, and that sets what properties are worth.”

One key point Skinner said he cannot stress enough: “The property appraiser does not tax your property. The taxing authorities – the school board, the county, the municipalities, the fire districts, water management – they’re the ones who tax your property.”

Skinner, whose office determines the amount each taxpayer must contribute to those taxing bodies, also discussed the effect of the Save Our Homes provision, how in a down economy, assessments can go up even as property values go down. The property appraisers will ask the legislature to eliminate this “recapture rate” provision, which they believe is unfair.

Along with Skinner came Douglas Gorham, Director of Personal Property and also Director of Customer Service at the appraiser’s office, and Bruce Stephens, Director of Improvements. Stephens, who is responsible for valuing all structures, but not the land on which they sit, explained how he talks to builders to reach an idea of the proper valuation. This assessment is an art, not a science, he said, emphasizing his 40 years in the business.

MITA members present were favorably impressed by the presentation and professionalism of the speakers. “He did a good job – he does it every year,” said Bedford Biles.

“He did a good job explaining appraisal technique. When property values go down, millage has to go up, if revenue has to match the city’s budget,” said Irv Povlow, who is also a member of the city’s planning board.

MITA members were vocal in their belief that more restraint is needed on the spending side of the equation. “My point has been since I set foot on the island, that our strategic planning is terrible,” said MITA president Fay Biles. “They start a project, and don’t know what’s coming down the line.”

“We have $22 million in high-dollar projects – but we’ll have the best dog park in the area,” commented Amadeo Petricca.

Povlow mentioned one idea to cut revenue he has seen implemented elsewhere. Called “banking time,” the scheme would pay municipal employees for only 37 hours of each 40 hour week now, with the other three hours received “at pension time.”

Other topics discussed included Collier Blvd. improvements, the forensic audit, and the difficulty of understanding city financial reports. After everyone had their say, the meeting adjourned for refreshments.

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