FENWICK ISLAND – Officials in Fenwick Island last week selected an appraisal firm to reassess all properties in town as part of a revaluation project.
In October, the Fenwick Island Town Council agreed to issue a Request for Proposal (RFP) for appraisal services to reassess the value of real property within the town’s corporate limits.
At the time, Town Manager Terry Tieman said property taxes accounted for 34 percent, or $728,000, of town revenue in fiscal year 2019, and residential and commercial property assessments totals more than $36 million.
Officials noted, however, the town’s last revaluation project took place in 1976 and that 580 residential properties, or 75 percent of the people in town, paid less than $1,000 in taxes each year.
“I think that is really telling,” Mayor Gene Langan said last fall. “Twenty-five percent of the town is paying a majority of the taxes.”
To that end, the council issued an RFP for appraisal services, which officials said would fairly distribute the tax burden in town. And last Friday, the Fenwick Island Finance Committee made its recommendation based on qualifications, technical proposal content, quality of service and price.
“The town council asked the finance committee to review two proposals that we received for revaluation,” said Councilman Richard Mais, chairman of the committee. “We looked at those this morning, and of the two the committee was unanimous in recommending Pearson’s Appraisal Service.”
Tieman said the appraisal firm was well known in surrounding towns.
“Pearson’s is a reputable firm,” she said. “They were used by many of our local municipalities, and I think they’ll do a fine job.”
Councilwoman Julie Lee added the appraisal firm could begin revaluation work immediately.
“They can begin right away,” she said. “That’s important.”
The council voted unanimously to accept the favorable recommendation. While assessments are expected to increase, Tieman told residents in October that property taxes would likely decrease, as state law requires municipalities reassessing taxable properties to maintain the same tax revenue as was levied in the prior fiscal year.
“The tax rate would be lowered to get that $700,000 …,” she said. “That doesn’t mean everyone’s bill will go down. Some people’s bills will go up. Some people’s bills are going to go down.”
Tieman added that any tax rate increase would be advertised prior to council approval.
“We would only increase the tax rate if the council voted to increase the tax rate,” Tieman said, “and we would advertise it as such.”
