***Monday, June 29, 2020, at 9:00 a.m., Commissioners met in regular session with Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Clerk Glenda Poston, and Deputy Clerk Michelle Rohrwasser.

Commissioners gave the opening invocation and said the Pledge of Allegiance.

9:00 a.m., Road and Bridge Department Co-Superintendents Renee Nelson and Randy Morris joined the meeting to give the department report. A written report was provided.

County resident Lars Jacobson also joined the meeting.

Mr. Morris said ditch work will be done on Maas Loop to get ready for chip seal and the mowers are still going. The Durapatcher is at a standstill right now. Road and Bridge will do some tracking for calcium chloride applications. Clerk Poston asked how the grout worked at the fairgrounds and Mr. Morris said they’re still working on it. Ms. Nelson said the grout seems really firm.

Commissioners said they didn’t have an update on Mountain Heights 3rd Addition as it pertains to road names within the subdivision changing.

Ms. Nelson spoke of amending the Schedule A Forest Service Agreement for maintenance. The Forest Service has a large sale up the Camp Nine Road and they would like calcium chloride put on the entire section of road that is maintained, which is 2.1 miles. If that is done, she inquired if Road and Bridge could put calcium chloride on Deer Creek Road for the same distance? The Forest Service will work on revising Schedule A to include Camp Nine Road for dust abatement. That would be the only change to the Schedule A.

Commissioner Cossairt moved to sign the United States Forest Service Schedule “A” revision to authorize the Forest Service to apply dust abatement to the Camp Nine Road for 2.1 miles and for the county to apply 2.1 miles of dust abatement to Deer Creek Road. Commissioner Kirby second. Motion passed unanimously.

Ms. Nelson said she did not yet have the bid package for Deep Creek Bridge #3 repairs.

Commissioner Kirby moved to go out to bid for Deep Creek Bridge #3 repairs. Commissioner Cossairt second. Motion passed unanimously.

Commissioner Kirby moved to go into executive session pursuant to Idaho Code 74-206(1)b, to consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against, a public officer, employee, staff member or individual agent, or public school student. Commissioner Cossairt second. Commissioners voted as follows: Chairman Dinning “aye”, Commissioner Cossairt “aye” and Commissioner Kirby “aye”. Motion passed unanimously. The executive session ended at 9:20 a.m. No action was taken.

Commissioner Kirby moved to correct payroll for an employee for the next pay period. Commissioner Cossairt second. Motion passed unanimously.

Ms. Nelson questioned the ability for other county employees to turn the GIS computer in the server room back on for the addressing coordinator, if need be.
Those present discussed a county resident’s request to obtain a new address. A statement was made that this resident was livid for not yet having an address as it had been since February. The parcel the residents want to build on was to be split as approved by the Planning and Zoning Administrator, but the applicant didn’t take care of having the property split and do the deed work. The property owner can do an approach permit, but there had been an error in the document and the property owner and their title company were notified. The title company fixed the problem, which was not a county issue, but then there were issues with the Courthouse computers crashing and there are other requests for addresses from people prior to this resident. It was said it does make it frustrating for people, but to also note that this is why the county has its ordinance as this property owner had utilities in before being permitted. The process really hadn’t gotten to Road and Bridge for addressing until June; not February as was stated.

There was also a request for a record of survey on Fleming Creek and to this date it’s not certain one has been done. Road and Bridge did an approach permit. Due to being non-conforming parcels, the property owner’s application was denied as it perpetuated non-conformance. It was said the applicant’s surveyor is booked into June and that the information Commissioners received from the property owner might not have been factual. Chairman Dinning said in going through this process we need to see where we can get these approved.

Commissioner Cossairt discussed chip sealing.

The meeting with Ms. Nelson and Mr. Morris ended at 9:30 a.m.

Commissioners discussed Lars Jacobson’s request to renew the lease for a small area of property next to his business in Porthill. Commissioners will discuss this and Chairman Dinning explained to Mr. Jacobson how the county bases the lease amount on assessed value. Commissioners don’t yet have that figure and will let Mr. Jacobson know once they have that information.

Commissioner Kirby moved to enter into a land lease with Lars Jacobson. Commissioner Cossairt second. Motion passed unanimously.

Mr. Jacobson left the meeting.

Chairman Dinning commented to Commissioners that the Fair Board Secretary informed him the staff of the carnival would like to use the overflow parking area across from the Rocky Point boat launch. Commissioners had no issues with that and will let the Fair Board Secretary know.

Commissioner Kirby moved to allow the fair to use the overflow parking area for the carnival as the county has a lease, but this use is not for the boat launch area. Commissioner Cossairt second. Motion passed unanimously.

Commissioners considered a request for a new private road name.

Commissioner Cossairt moved to approve the new private road name of Elyon Lane, located off of Foust Road, as recommended by the Road Naming Committee. Commissioner Kirby second. Motion passed unanimously.

Commissioner Cossairt moved to sign the Certificate of Residency for Carson Spencer. Commissioner Kirby second. Motion passed unanimously.
County Civil Attorney Tevis Hull contacted Commissioners via telephone at 9:40 a.m.

Commissioner asked about certificates of insurance with regard to listing additional insured. Attorney Hull said for this particular certificate of insurance it should list both Boundary County Fair Board and Boundary County, political subdivision of the State of Idaho, as additionally insured.

Chairman Dinning commented that Commissioners need to adopt the Land Use Ordinance as it pertains to urban subdivisions.

Attorney Hull said he had sent correspondence to Commissioners for their review and it’s a public service announcement the City of Bonners Ferry is going to publish regarding the July Fourth event. Attorney Hull said he worked on this announcement with City Attorney Andrakay Pluid, Police Chief Brian Zimmerman and Assistant Police Chief Marty Ryan. Attorney Hull wanted Commissioners to review the announcement and provide input. The announcement explains that there is no permitting, the July Fourth event is not going to be co-sponsored, etc.

The call with Attorney Hull ended.

Commissioners discussed the continuing use of their conference call line during stage 4 of the state’s reopening due to COVID-19.

10:02 a.m., Restorium Administrator Karlene Magee joined the meeting to give her report. Ms. Magee said she attended training through the Center for Disease Control (CDC) regarding personal protective equipment and she listed who attended this course. Approximately three-fourths of the staff at the Restorium signed off as knowing the procedures. The protocols came out for COVID-19 testing. When stage 4 first came out, the Restorium sent out guidelines they were expecting and then received the state requirements and Ms. Magee said she learned she needs to do a whole lot more due to the state’s protocols. Ms. Magee said she has a lot of questions in order to make these protocols happen, such as a plan for denying entry, baseline testing for residents and staff, random testing at seven then fourteen days, and a protocol for when a resident or staff member declines to be tested. Chairman Dinning reviewed the Idaho reopening guidelines. The need for certain protocols were questioned if Boundary County hasn’t had community spread. Ms. Magee said she believes she still needs to have these protocols in place and she has been working on policies and procedures as quickly as she can. Protocols have to be sent to the state for review and then be posted. Through Panhandle Health District, if it’s thought there is a suspected case in the facility, Ms. Magee can get testing at $29.00 per person. Panhandle Health District will administer the tests if the Restorium has a suspected case.

Ms. Magee commented that she still doesn’t know what to do about a nurse. Those present discussed this being an emergency situation and Chairman Dinning said he feels it would be okay for a relative of Ms. Magee’s, who is nurse, to fill in. Commissioners approve of the emergency hire.

10:16 a.m., Commissioner Kirby moved to go into executive session pursuant to Idaho Code 74-206(1)b, to consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against, a public officer, employee, staff member or individual agent, or public school student. Commissioner Cossairt second. Commissioners voted as follows: Chairman Dinning “aye”, Commissioner Cossairt “aye” and Commissioner Kirby “aye”. Motion passed unanimously. The executive session ended. No action was taken.

Ms. Magee informed Commissioners of the number of residents at the Restorium and voiced concern about her budget. Those present briefly discussed budget for Restorium employee hours, etc.

The meeting with Ms. Magee ended at 10:27 a.m.

10:28 a.m., Commissioner Cossairt moved to recess as a Board of Boundary County Commissioners and to convene as the Board of Equalization. Commissioner Kirby second. Motion passed unanimously.

Commissioners said Appellant Michael Bejzak commented that he didn’t receive notice of his appeal hearing in time so Commissioners will look at rescheduling his hearing.

Clerk Poston left the meeting.

10:34 a.m., Commissioners held a Board of Equalization appeal hearing for Appellants Justin and Carol Julian. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Assessor Dave Ryals, Appraiser Monica Tompke, and Appellants Justin and Carol Julian. The hearing was recorded. Chairman Dinning administered the oath to those giving testimony and reviewed the hearing procedures. The Assessor’s Office presented one exhibit marked “County Exhibit Assessor #1” (consisting of 5 pages, copied both sides) and the Appellants presented one exhibit marked “Appellant Exhibit #1” (consisting of 36 pages, copied both sides).

Mr. Julian stated that he has three separate properties and the assessment on all of them has increased substantially, but he has no issue with two of the parcels, just the cabin property on the river. Mr. Julian reviewed his statement and brief (Exhibit #1) for the record. Mr. Julian reviewed Idaho Code Section 63-502 in that the there is no burden on the property owner to prove what the correct value for the property is. The cabin property was purchased in year 2003 for $67,000.00 cash as is and it’s on a knoll above the river. This property is severely impacted by a 100 foot wide gas line easement. This is somewhat unique in that it goes pretty much lengthwise through the center of the parcel. In other parcels the line runs along the road. This gas line runs through the property and as it gets to the north end the gas line turns and goes into the river. It precludes the rest of property from being suitable for a well, septic, etc. There are huge impacts that make the land somewhat unique. Also, there is the residence itself and Mr. Julian referred to the 65 page home inspection report and reviewed some of the issues with the structure as listed in the report. Mr. Julian commented that he wished the inspector who prepared this report was present as he had made statements that are not included in the report, such as this house will never pass financing. It wasn’t realized how bad the foundation is as part of it is held up a by car jack. The floors sag and the outside wall is bowed. Mr. Julian said structurally, the home was built incompetently and in his view, is grossly insufficient. It would never pass financing and it’s not fixable. Page 56 of 65 in the inspection report shows the car jack propping up the floor joist. There is a 3.5 inch gap of where the floor is to where it should be and you can feel it. It’s not up to code. The electrical is just as bad and the well water is not drinkable so they bring drinking water to the property. Mr. Julian said he doesn’t know if the well is decaying or if it’s in a large iron deposit area, but it’s not potable water. Mr. Julian added that there are major issues and he’s only addressing the larger things that are not fixable. The property could only be purchased by buyers with cash and all of the issues would have to be listed in the disclosure. Mr. Julian commented that he would have to find someone with $260,000.00 cash who couldn’t find a better house to buy. Mr. Julian cited case law from the second page of his brief and he mentioned that toward the bottom of page 2 there is one case in Idaho regarding property valuation appeals that is relevant. Most cases all had to do with commercial properties so they didn’t help homeowners. The case that is somewhat relevant is listed toward the bottom of page 2 and it pertains to property that is located close to Spirit Lake. The property owner in this case could not obtain a permit for septic. The Assessor discounted value of this property by 50% due to an unfixable defect. Mr. Julian reviewed his statement and brief to include mentioning that in this case it’s his contention the Assessor’s Office failed to adequately discount for the significant defects of his property to include the gas line and all of the problems with the structure itself, which makes it unable to be mortgaged. Based on the Spirit Lake case, his property valuation should be reduced by 50%. The Assessor had asked what value Mr. Julian had in mind. Mr. Julian said he would suggest looking at, hypothetically, a 4.3 acre parcel on the Moyie River with a house built from the 1970s, but built properly with a good foundation, electrical system, a well with drinkable water, and an unencumbered parcel. For starters, for any home like that close to $300,000.00 seems to be where livable houses are selling, especially with some land. With waterfront you could probably increase that to $350,000.00 so if that is starting point, the defects of the gas line and other defects, a 50% reduction in value puts it right in the ball park of the cabin property. The facts of the other case are somewhat similar, according to Mr. Julian.

There were no questions from the Assessor. Assessor Ryals said Mr. Julian’s comments were well stated. Commissioner Cossairt asked if there are deductions for gas lines running through property. Assessor Ryals said typically, yes. Mr. Julian said the property does have septic, but the quality and legality is unknown. The property does have power.

Commissioners asked for a statement from the Assessor’s Office. Ms. Tompke said other than the county-wide property increase no specific increases were made for year 2020, however she did lower the grade of the house and garage. Ms. Tompke said she had offered for Mr. Julian to bring in comparables in order to compare value, but he did bring in an appraisal. The value was reduced to $250,000.00 after the conversation with Mr. Julian, according to Ms. Tompke.

Commissioner Cossairt questioned if appraisers measure the outside of a house for the foot print. Commissioners said the original assessed value was $260,400.00 and questioned if it’s now $250,200. Chairman Dinning said in the original assessment what was the category of construction listed at that time? The category of construction had been reduced to fair from average. There is also a cheap category, but she didn’t run the numbers for that. Statements were made about physical appraisals and what they should reflect. It was said a physical inspection is done when a visit is made to the property and notes are taken. There was literally no depreciation shown that was valid on any property and that is part of the reason for such an extreme value. Assessor Ryals said we recognize that doesn’t necessarily fit the mold for each and every property, but we do this en masse. It probably applies to a vast majority, but there are some that simply do not fit. Assessor Ryals stated that he invited Mr. Julian to come in with numbers as there is probably some merit to that. There was an inspection amount, but no dollar figure tied to the remedy.

The Assessor’s Office had no rebuttal. Chairman Dinning asked if there is the ability to go through the inspection report. Assessor Ryals said they would have to have a cost assigned to each and every one of the issues. Chairman Dinning said he would like to ask the Assessor’s Office to run figures for the cheap category.

11:00 a.m., the hearing was paused until 11:15 a.m. in order to determine adjusted figures.

11:15 a.m., The appeal hearing reconvened for the Julian appeal hearing with the same participants present. Assessor Ryals spoke of adjustments for the gas pipeline and he said the gas line restricts certain things you can do with the property, such as farming, etc., but you can graze on the property, mow it and treat it as lawn. The Assessor’s Office doesn’t have anything that says there is a value reduction for having the pipeline. Mr. Julian said you cannot build on it, have a septic system or a well. Assessor Ryals said that was correct. Mr. Julian said .2 acres is owned by the gas pipeline. If it was on one side of the property, you could have approximately 4 acres that would be unencumbered. It was clarified that the pipeline company doesn’t own that part of the property, they just have an easement. Mr. Julian said where the line is located is the issue. Mr. Julian said if the pipeline was located to one side of the property, he would still have use of more acreage so how does one account for the gas line bisecting the property. Assessor Ryals said he understands. The amount of four acres is substantial and does leave a fair amount of room to navigate around the pipeline. Mr. Julian gave a rebuttal and said he really had wished the Assessor’s Office had taken him up on his offer to visit the property to see a massive gas line in the middle of the property, with national forest on one side and the river on other so there is nowhere else to build on his property. It’s basically a wasteland. It has weeds so maybe it’s good for goats, but that other acreage is not buildable and he added that on paper he own 4.3 acres, but not physically. Reducing the value by $2,000.00 for the gas line is way off. Commissioner Kirby asked for the value of the land. Assessor Ryals said the land was valued at $109,110.00 and it was reduced to $107,850.00. Assessor Ryals said he understands what Mr. Julian is saying. Assessor Ryals commented that he has ½ acre where his house is and it’s on a steep slope. The house has a substantial view from his property, which also had a substantial value increase, but he can only have his house. Commissioner Cossairt said there are no other classes of land so land is just land. Assessor Ryals said he agrees with Mr. Julian, but he can only say that in this market and these particular years, common sense has left the building and what we’re seeing is shocking.

Mr. Julian said regarding his proposal to the Board of Equalization, is there any model by which someone can say what a properly constructed house on a river and with no gas line would sell for today before we decide what his property is worth. A 50 year old house is not perfect, but would it be worth $350,000.00. If it’s sitting in a hay field, $350,000.00 would be the norm, but a home with any kind of exceptional view or frontage will be well above that. Mr. Julian said he can’t explain it, he can’t justify it and he doesn’t like it. It’s out of control and he’s not here stamping his feet; he’s just trying to explain.

Chairman Dinning closed the hearing to public comment. Commissioner Cossairt said in this market the value of $200,810.00 is probably not that far off. The Assessor’s Office did a good job, but it’s just a bad year. Commissioner Kirby said he agrees.

Clerk Glenda Poston joined the hearing at 11:30 a.m.

Chairman Dinning said in looking back for a potential error, these are difficult pieces to value and we try to be as fair as possible.

Commissioner Cossairt moved to reduce the Assessor’s valuation to $200,810.00 for parcel #RP64N02E268990A owned by Justin and Carol Julian. Commissioner Kirby second. Motion passed unanimously.

Chairman Dinning commented that if there were other justifications for adjustments either way, Commissioners should consider them. Chairman Dinning informed the Julians that they can appeal the Board of Equalization decision to the State Board of Tax Appeals or to district court. Mr. Julian said he and his wife will accept the decision and the Board has been very fair.

The appeal hearing for parcel #RP64N02E268990A owned by Justin and Carol Julian ended at 11:30 a.m.

Commissioners recessed for lunch at 11:35 a.m.

1:30 p.m., Commissioners reconvened for the afternoon session with Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Clerk Glenda Poston, and Deputy Clerk Michelle Rohrwasser.

1:30 p.m., Commissioners held a Board of Equalization appeal hearing for parcel #RP62N02E077400A owned by Fioravanti Family Trust, Steve and Lynda Fioravanti, Trustees. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Clerk Glenda Poston, Deputy Clerk Michelle Rohrwasser, Assessor Dave Ryals, Appraiser Monica Tompke, and Appellant Lynda Fioravanti. The hearing was recorded. Chairman Dinning reviewed the hearing procedures and administered the oath to those giving testimony.

The Assessor’s Office presented one exhibit marked “County Exhibit Assessor #1” (consisting of 6 pages) and the appellant presented one exhibit marked as “Appellant Exhibit #1” (consisting of 2 pages).

Ms. Fioravanti said in Boundary County or anywhere in Idaho, as a real estate agent she knows that lands that are treed or have a view are valued by the consumer a lot higher than just pasture land. Ms. Fioravanti said as it pertains to her property, she doesn’t own any trees and the property doesn’t quality for timber and it would be valued less than properties that have trees and she has provided comparables (comps) showing that. The average for land that closed escrow is $9,324.00 and if you multiple that five times, that is how she arrived at the approximate value of $40,000.00 that she is appealing. The value for land should be $46,615.00 instead of $78,070.00. Ms. Fioravanti explained that she is an agent so she deals with properties all day long. Ms. Fioravanti referred to her Appellant Exhibit #1 as showing who is purchasing treed properties that border the city. The Champs Road & Hardy Loop subdivision comp has water to every parcel and it’s still valued less than what her property is being valued, according to Ms. Fioravanti. If you look through the comps, there are a lot of parcels at $3,000.00 or $6,000.00 per acre and those are the comps that closed this year. Ms. Fioravanti said the valuation of her land is definitely exorbitant. Ms. Fioravanti commented on issues with COVID-19, etc., and she said this is just really bad timing on Commissioners’ part. Her property was valued $100,000.00 more last year and then the county increased the value another $100,000.00 this year. For the house itself, there is a house Commissioners will see on Grouse Hill that is on 5 acres and it’s a cedar sided home and Ms. Fioravanti stated what this property sold for. There is also a house across the way that is on 3 acres and it’s listed for $350,000.00 and it’s pending right now and it’s a newer home. Ms. Fioravanti said her home is a log home, which costs more to build, but they sell for less. Ms. Fioravanti said her home is very dated. If you take the average square foot by $111.00 per square foot, is what she put on her application and her value would be $334,475.00.

Chairman Dinning asked if there were any questions. Assessor Ryals asked about the per acre rate and he mentioned water being present on some comps and he asked about other utilities. Ms. Fioravanti said there are other utilities at the property line. Chairman Dinning said for those parcels that sold that are being used as comps, did they have electricity and water and it was said that some did and some did not. Chairman Dinning asked about utilities for the other comps. It was said that the comp for Champs Road had electric and water. Ms. Fioravanti said that parcel is in the Moyie Springs area so she’s not sure if it has city water or utilities, but they do have water brought to each lot.

Ms. Tompke read pages 3 and 4 of her exhibit into the record in its entirety and she mentioned using some of the comps for homes.

Ms. Fioravanti spoke of pricing for amenities, such as the cost of power being $5,000.00, etc. Ms. Fioravanti commented that she had replaced the septic systems for both her shop and house and it was $6,700.00 to replace a system, but it’s being valued at $8,000.00. To get a new septic system today will cost $6,700.00 so why is it being valued at $8,000.00. Assessor Ryals spoke of taking a poll of utility providers to determine that as they didn’t change any amenity values and that is the information he was quoted. Water is $8,000.00 and Ms. Fioravanti asked what was included in that. It’s the cost of the permit and actual digging of pipe to the site and it depends on how far you have to go, according to Assessor Ryals. It’s a ball park so it’s not high and it’s not low. A substantial value increase was realized, but it was applied county wide. Ms. Fioravanti spoke of the last time property values were increased. In referencing a comp, Ms. Fioravanti said this other house is bigger, it has more property and the property owners are paying less than she is. Assessor Ryals mentioned the other property owners might have exemptions.

Chairman Dinning spoke of the value of a brand new system septic and everything that is involved with that. With water, there is buying the membership and the right to hook on, and to dig that line to the house. Assessor Ryals said he also checked on digging wells and everything they could find on that. Ms. Fioravanti mentioned that the cost for septic is very high and buyers come into town all the time and they have to look into these rates. It’s exorbitant, according to Ms. Fioravanti and she added that she feels everybody has already made up their mind. Ms. Fioravanti added that she feels really bad for people who have lived here a long time with these increases.

There were no further questions.

Assessor Ryals said he wants to clarify something. There are two things his office is charged with and one is to develop market value. That is the Assessor’s function. The tax is something that comes later and it’s based on budgets and other factors. We’re not assessing tax, we’re assessing value and we try to be reasonable. Idaho law requests the county’s assessment levels to be within 90% to 110% and they take sales received and make a market out of that and apply that to the property. When the Assessor’s Office was tested by the State Tax Commission, the Tax Commission is looking for the county to be within 90% to 110% of the assessment levels. The exact midpoint is the 90% that they’re looking for. The Assessor will review the information to develop values. The State Tax Commission will then review the information and if the county is below 90%, the Assessor’s Office has failed. Assessor Ryals said this information was sent out in a letter to the property owners. This has nothing to do with generating more tax dollars; it’s just a county requirement to development market sales. If the county did not do this, the State Tax Commission would take the county to the State Board of Equalization and will raise values 100%. Assessor Ryals said values were raised in order to reserve the right to appeal, even though it comes back to bite the county. It allows the homeowner the right to appeal. The Assessor’s Office tries to come up with something that is workable for everyone. They look at a lot of numbers and cannot do a fee appraisal on everything.

Ms. Fioravanti said she looked up state law and it doesn’t say anything about assessments being within 90% to 110% so it must be an agency rule on their part to do that. Assessor Ryals said when saying agency rules, does that mean policy. The Legislature makes the laws and there is an agency that says counties must be within 90% and 110%. It’s listed in Idaho Code. Assessor Ryals said the Idaho State Tax Commission has oversight for all tax matters. All of these rules have to pass legislative approval before being put into effect. In the Rule it does discuss being within 90% to 110%. Ms. Fioravanti said she understands how valuation doesn’t compute to a higher tax value and she commented on Commissioners continuing to approve conservation easements. Chairman Dinning replied that Commissioners have not approved a conservation easement in four years. Ms. Fioravanti commented on certain taxes and Chairman Dinning clarified that those are in the city; not the county and there are no urban renewal districts in the county. Assessor Ryals explained that an urban renewal district does not increase tax, it just reapportions it. It uses money that would have gone to the city for the growth component and shuffles it back to the urban renewal district. No one pays for that. With conservation easements, typically those will remain in some form of taxable state so we’re not losing or gaining anything at all with those.

No one had any questions. Chairman Dinning asked what the class of construction is on this home. Ms. Tompke said it’s average plus.

Chairman Dinning closed the hearing to public testimony and Commissioners discussed the matter amongst themselves. Commissioner Cossairt said he’s not sure about the home value, but the property did gain in value. Commissioners reviewed the information. Commissioner Cossairt spoke of $110.00 as the cost per square feet totaling $237,984 for the home. The land valued at $69,730.00 and there is no change to the other building category for an overall value of $346,934.00.

Commissioner Cossairt moved to adjust the total value to $346,934.00 for parcel #RP62N02E077400A owned by Fioravanti Family Trust, Steve and Lynda Fioravanti, Trustees. Commissioner Kirby second. Motion passed unanimously.

Chairman Dinning informed Ms. Fioravanti of the ability to appeal the Board of Equalization’s decision to the State Board of Tax Appeals or district court.

The Board of Equalization appeal hearing for parcel #RP62N02E077400A owned by Fioravanti Family Trust, Steve and Lynda Fioravanti, Trustees, ended at 2:10 p.m.

2:10 p.m., Commissioners held a Board of Equalization appeal hearing for parcel #RP62N01E085003A owned by Mark C. Hubbard. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Clerk Glenda Poston, Deputy Clerk Michelle Rohrwasser, Assessor Dave Ryals, Appraiser Melissa Kramer, and Appellant Mark Hubbard. The hearing was recorded. The Assessor’s Office presented one exhibit marked “County Exhibit Assessor #1” (consisting of 6 pages copied both sides). The Appellant did not present any exhibits.

Chairman Dinning reviewed the hearing procedures and administered the oath to those giving testimony.

Mr. Hubbard provided history of the property, the improvements made to the home and property and then discussed the appraisal he submitted with his appeal form. Mr. Hubbard explained that the mobile home his brother had placed on the hill is not a part of his appeal. Mr. Hubbard said he purchased the property from his family in 2004 and it had appraised for $366,000.00. In year 2008, the property was refinanced and it had appraised at $233,000.00. The home had appraised at $350,000.00 at the end of year 2019. Mr. Hubbard mentioned comparing apples to apples as to what Commissioners are looking at and he completely ignored considering the wood elevator and silos, which would add value of $50,000.00 so the value of $315,000.00 would equate to $365,000.00. Mr. Hubbard said he has a fairly well done appraisal and he doesn’t think the values have reached back to year 2005 or 2006 values. The appraisal includes eight comparables (comps). Five of the comps are actual historical sold properties. Properties 1 through 5 did sell, properties 6 through 8 are for sale and property 6 and 7 look to have pending sales. The appraisal has a comparable sales approach and cost approach as part of the analysis. Page 3 of 6 is the cost approach. Mr. Hubbard said he’s not contesting the land value and site improvements, and he’s not contesting the value of $48,940 for the grain bins. The bins are structurally sound, but have not had grain in them for25 years and the elevator has not been used for 15 or 20 years and would need work. Mr. Hubbard said he’s contesting the value assessment of the building at $393,000.00 as the building, according to the cost approach, is $206,000.00 so there is a gap there. The appraiser did a good job of showing comparable sales in 2018 and 2019 and he did an okay job by having three listings. Mr. Hubbard said he puts a lot of credence in the appraisal.

Chairman Dinning said he made phone call to the State Tax Commission last week as that is who controls values. Chairman Dinning explained to Mr. Hubbard that Assessor Ryals has to keep values within 90% to 110% as the average value on homes. This year the Assessor failed in doing that so as a result the State Tax Commission made the county increase values. If the county chose not to do that, the State Tax Commission would have taken the county to the State Board of Tax Appeals, the county would’ve lost the appeal and the state would set the values. The county is caught in this pickle countywide. Commissioners had met with members of the State Tax Commission and Commissioners discussed depreciation. George Brown with the State Tax Commission informed Commissioners that deprecation is significantly less and market shows it doesn’t exist a lot. Chairman Dinning said he is not going to say it doesn’t exist, because old houses need fixed. Commissioners had no questions for Mr. Hubbard.

Ms. Kramer read her exhibit into the record. Of the 11.640 acres, 9.64 acres is in timber exemption. Ms. Kramer explained that she did attach a sheet as part of her exhibit since Mr. Hubbard is just contesting value of the house, so she took the first six comps and broke them into price per square foot. The Assessors’ system shows $108.90 per square foot for Mr. Hubbard’s house. The average cost per square foot for the remaining comps is $85.56. Mr. Hubbard feels the asking price for his home is $206,446, which would equate to $61.92 per square foot.

Mr. Hubbard said he understands that and the square footage Ms. Kramer is using is the gross living footage, which is 3,334. Mr. Hubbard asked if Ms. Kramer also included the basement and finished rooms below grade. Ms. Kramer said she did not use the unfinished basement in that total. Using square footage of 3,334 multiplied by the average cost of $85.56 equates to a cost of $285,257. The effective age of the farm house is 25 years and comps were aged at 10, 15, and 25 years, etc. There was mention of the age of the farm house and the possibility of a bit of concession for the age of the farmhouse being older, such as by deducting $10,000.00 to $15,000.00 from the value.

Assessor Ryals said to clarify, it was noted on the cost approach the amount of approximately $353,000.00. Assessor Ryals said it was indicated that the valuation manual used was Marshall and Swift and he is asking because he used to use the Marshall and Swift cost manual and the state said to use another manual that is cheaper. Assessor Ryals said he will allow that the manual he is currently using may not be as accurate as Marshall and Swift. The county value totaled $393,500.00 as the replacement cost of the house. That is a subjective thing, according to Assessor Ryals. Using the manual provided by the State Tax Commission one could make the argument that one manual could be superior to the other, but he can’t say which. Assessor Ryals said to understand that what the county is after is primarily replacement costs of the structure and improvements. Once the Assessor’s Office develops that using cost tables provided by the Tax Commission, they look to the market for appreciation or depreciation. Assessor Ryals said he’s been doing this work for 30 years now and there has always been some depreciation until this year. There was no depreciation this year and it was a big hit and it applied to everyone. There is some room with the replacement cost, according to Assessor Ryals. Chairman Dinning asked for an explanation about the Proval system and Ms. Kramer said Proval is the county computer system and it determines price per square foot on the houses.

Chairman Dinning said we’ve gone through the Assessor’s presentation, are there any other questions? Mr. Hubbard can make a rebuttal to any statements made. Mr. Hubbard commented that he works in commercial lending and was an appraiser for a bit in his day and then you were the appraiser and the loan officer at the same time. His only concern would be that values ebb and flow. If it’s a trend that appraised properties in Boundary County have sky rocketed in a six to 12 month time frame, he doesn’t know how to capture that as an appraiser. Like he said, he thought the appraiser did a pretty fair job of looking at historical sales, making adjustments and in his analysis, used pending sales and listings. The appraisal came in fairly close to what the indicated cost approach was. Mr. Hubbard said he would disagree that the State of Idaho has pooled the whole state for no depreciation or is this just Boundary County. Assessor Ryals said it was the state. Chairman Dinning said he doesn’t disagree one bit. The county is caught between the State Tax Commission rules, the power that they have and what they would force our Assessor to have to do. They only take a snapshot of an approximate six to 12 month window.

Assessor Ryals said what the county is attempting to do is follow the market up and down, and he explained values and taxes. Assessor Ryals said he has to follow the market and follow rules handed to him. Assessor Ryals added that he sees a problem looming and he sent this out with the valuation notices. The market is increasing, but the homeowner’s exemption did not increase so it’s not helping the homeowner anymore. Counties tried to get legislators do deal with this, but they chose not to.

Mr. Hubbard said if he takes the new assessed value of $535,970.00 and he comes before Commissioners and he has a reduction down to $485,000.00, but he has an appraisal of $315,000.00, that’s a huge disconnect. Ms. Kramer listed categories associated with the home and she said she has a rough estimate of square foot for the classes and she listed the price per square foot based on class.

Commissioners closed the hearing to public comment. Commissioner Cossairt said we’re all in the same boat, but he can see a value of $315,000. Commissioner Cossairt asked if the value of $315,000.00 included the grain bin and Mr. Hubbard said no. Commissioner Kirby said $315,000.00 sounds good to him due to the age of the home and maintenance. Chairman Dinning said that is an approximate reduction of $78,000.00.

Commissioner Kirby moved to adjust the Assessor’s value to $315,000.00 on the residence for parcel #RP62N01E085003A owned by Mark C. Hubbard. Commissioner Cossairt second. Motion passed unanimously.

The Board of Equalization appeal hearing for parcel #RP62N01E085003A owned by Mark C. Hubbard ended at 2:55 p.m.

3:00 p.m., Olivia Drake with 9B Trails joined the meeting to provide Commissioners with an update on Section 16 trails. The first section of trails has been finished and 9B Trails is now working on the second phase. Idaho Department of Lands has approved plans for the parking area and signage, etc. Foust Inc. agreed to come and clean out the parking area as it has been cleared. 9B Trails received an extension to finish the parking lot in late July with rock and grading. The next phase is on hold until it’s known what the status of the logging operation is. Ms. Drake said 9B Trails sees the project as being finished this year, except for the parking lot. In the Enchanted Forest project, the Al Farnsworth property, Ms. Drake said she thinks Mr. Farnsworth would’ve been happy with the people this area brings out. Equipment was moved to this location in the spring and a bridge was built over a creek. Weekly work parties were started and have cleaned up after the excavators. Almost one mile of trail was built this spring. Ms. Drake commented that labor is all volunteer and the excavator was purchased through a grant. At the end of May 9B Trails was awarded a grant through the Innovia Foundation to buy rock for Section 16, signage, kiosks, and groomer. The Sandpoint Nordic Club may also assist in some areas. Ms. Drake said that Foust Inc. has donated equipment to clear the parking lot, Idaho Forest Group donated lumber for the bridge, KG&T Septic donated a port-a-potty for each location, and 9B Trails received a grant for two kiosks. Ms. Drake spoke of the current plans for Riverside Park and she mentioned 9B Trails will look at obtaining support from the City of Bonners Ferry, they already have grants from various agencies and also have funding for two fitness stations. Ms. Drake said 9B Trails has been coordinating well with the Parks and Recreation Board. The county property portion will be the easy part and when the trail projects gets closer to the water, 9B Trails will need county input on parking, etc.

The meeting with Ms. Drake ended at 3:15 p.m.

Commissioners recessed until 4:00 p.m.

Commissioners discussed receiving invoices and payment requests from the Federal Aviation Administration totaling $14,236.28 and one request is for scoping and the other request is for an independent estimate.

Commissioner Cossairt moved to authorize the Chairman to sign the Federal Aviation Administration Request for Reimbursement #1 for Airport Improvement Project #3-16-0004-017-2020 and the Invoice Summary for the environmental analysis totaling $14,236.28. Commissioner Kirby second. Motion passed unanimously.

Commissioner Cossairt moved to authorize the Chairman to sign Federal Aviation Administration Request for Reimbursement #7 for Airport Improvement Project #3-16-0004-016-2019 totaling $26,584.63. Commissioner Kirby second. Motion passed unanimously.

4:34 p.m., There being no further business, the meeting recessed until tomorrow at 9:00 a.m.

***Tuesday, June 30, 2020, at 9:00 a.m., Commissioners met in regular session with Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Clerk Glenda Poston, and Deputy Clerk Michelle Rohrwasser.

Stephanie Franke with EL Automation Northwest joined the meeting.

Commissioners discussed extending the Disaster Emergency Declaration as it pertains to COVID-19.

Commissioner Kirby moved to extend the Disaster Declaration another 30 days, to July 27, 2020, and to sign the declaration once it’s been prepared. Commissioner Cossairt second. Motion passed unanimously.

Ms. Franke discussed withdrawing their application associated with the Idaho Broadband grant. The project was split into three categories instead of one so they’re requesting an extension.

Commissioner Kirby moved to extend the due date to receive applications for the Idaho CARES Act Broadband grant until July 8, 2020, at 4:00 p.m., and Commissioners will hold a special meeting on July 10, 2020 at 9:00 a.m. to consider these applications. Commissioner Cossairt second. Motion passed unanimously.

9:15 a.m. County residents Earl and Jean Borer joined the meeting.

Commissioner Kirby moved to recess as the Boundary County Board of Commissioners and to reconvene as the Board of Equalization. Commissioner Cossairt second. Motion passed unanimously.

Commissioners held a Board of Equalization appeal hearing for parcel #RP62N03E208111A owned by Earl and Jean Borer. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Deputy Assessor Tracy Golder, Appraiser Melissa Kramer and Appellants Earl and Jean Borer. The hearing was recorded. The Assessor presented one exhibit marked “County Exhibit Assessor #1” (consisting of 5 pages copied both side). The Appellants did not submit any exhibits. The hearing was recorded.

Chairman Dinning reviewed the hearing procedures and administered the oath to those giving testimony. Chairman Dinning informed Mr. and Ms. Borer that assessment valuations are driven right now with the State Tax Commission and in essence, the county’s Assessor failed his test. Chairman Dinning explained that the State Tax Commission comes up once or twice per year to check values against what information they have by category. This is the first time in over 20 years this test was failed. Commissioners asked members of the State Tax Commission what would occur if Commissioners chose not to increase residential values and were told that the State Tax Commission would take the county to the Board of Tax Appeals and would set the county’s values at 110%. Boundary County is in compliance now for the residential category.

Mr. Borer said he didn’t come to argue or be adversarial, he just came here to let Commissioners know just how angry he is about this. Mr. Borer added that he just wants Commissioners to know this and it’s not just him as everyone in the county is probably mad. Ms. Borer said when they first moved to Boundary County taxes were only a certain amount for 20 acres and she’s looking for Commissioners to provide protection for the older residents. Values have increased, but taxes for people on a fixed income are getting to be monstrous and the Borers asked if there is any way to have lower taxes apply to older residents on fixed incomes and have the higher taxes go to the new residents who pay more.

Chairman Dinning said through the Idaho Association of Counties (IAC), these issues have been brought up in the last three years before the legislature. The state said everyone has to be taxed fairly. Chairman Dinning said what we’re experiencing today had already affected Ada County and Kootenai County last year. IAC has seen this issue coming and we’ve asked the state legislature last year to increase the homeowner’s exemption to $150,000.00, which is an increase of $50,000.00. The legislature was also asked to index values, which means if prices go up, there would automatically be an increase or decrease, and they were also asked to put this on a curve. What is occurring has been mandated by a state agency. The rules of that state agency is approved by legislature and that legislature has not responded to any of the counties’ requests. The Legislature brought forward freezing county budgets for a period of years going forward. That was one thing and this is aimed at counties and not the residents. If the county collects exactly the same dollar next year as this year, this is proving there is going to be a great shift to the homeowner because of the values and we’ve not been insensitive to that, according to Chairman Dinning. The legislature is not understanding as they’ve not really looked at this issue. They’re not looking at what they can do for property tax relief. Chairman Dinning said he doesn’t blame the Borers one bit. Ms. Borer said her mantra is to remember this issue come November and what they can do with the people in Boise. Chairman Dinning said it’s not just those people in Boise. Ms. Borer briefly mentioned Proposition 13. Chairman Dinning said Commissioners have become the local people that residents see face to face when this issue is actually a mandate from the state.
Ms. Kramer said the Borers have a timber exemption and a homeowner’s exemption, but she doesn’t know if they qualify for the circuit breaker. Chairman Dinning explained that the circuit breaker is also a state rule. Mr. Borer said they fall just under it and they’re on a fixed income.

Ms. Kramer read her statement into the record taken from her exhibit. It was said the Borers’ main issue pertained to taxes, people moving in, and she understands that, but she has no control over that.

Nobody had any questions.

Chairman Dinning asked about the status of the home category. Ms. Kramer said it’s an average house and it is currently in the Assessor’s Office system as being 94% complete. Chairman Dinning stated that there is no error in the category as it appears and Ms. Kramer said no. Ms. Kramer reviewed the square footage of the home and garage, etc.

Ms. Borer asked how they can write to the legislators to move this issue along besides complaining to Commissioners. Mr. Borer said there were no errors in the county’s calculations. If rates stay the same, it will be a large increase so will that money stay local and Chairman Dinning said yes. Mr. Borer said they’ve lived with bad roads for years and the Road and Bridge Department needs a budget.

Mr. Golder calculated the cost per square foot as being $113.90 for the Borer’s home.

Commissioners closed the hearing to further public testimony. Commissioner Cossairt said this looks like every other piece of property, it’s just the value is increasing and there is not much wriggle room anywhere. Commissioner Kirby agreed.

Commissioner Cossairt moved to sustain the Assessor’ valuation for parcel #RP62N03E208111A owned by Earl and Jean Borer. Commissioner Kirby second. Motion passed unanimously.

The Board of Equalization appeal hearing for parcel #RP62N03E208111A owned by Earl and Jean Borer ended at 9:48 a.m.

10:09 a.m., Appraiser Melissa Kramer and Deputy Assessor Tracy Golder joined the meeting for the Board of Equalization appeal hearing for parcel #RP62N01E242840A owned by Charles and Tiffany Tuma. Chairman Dinning said the appellant has not signed the delivery mail receipt, but the United States Postal Service tracking slip shows the appointment letter was available for receipt on June 24th. Chairman Dinning said they would reach out to Mr. Tuma about rescheduling his hearing.

10:12 a.m., Mr. Golder and Ms. Kramer left the meeting.

Chairman Dinning moved to sign Certificates of Residency for Zachry Medearis and Jordan Dally. Commissioner Kirby second. Motion passed unanimously.

Commissioners tended to administrative duties.

10:50 a.m., Commissioners held a Board of Equalization appeal hearing for parcel #RPM00000168558A owned Zachary Whitson. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Deputy Assessor Tracy Golder, and Appraiser Melissa Kramer. The Assessor’s Office submitted one exhibit marked “County Exhibit Assessor #1” (consisting of 4 pages, copied both sides) and the appellant submitted one exhibit marked “Appellant Exhibit #1” (consisting of 28 pages). The hearing was recorded.

Chairman Dinning reviewed the appeal hearing procedures and administered the oath to those giving testimony.

Mr. Whitson gave an opening statement and said he had his property appraised in April of 2019, and it appraised at $165,000.00. Comparable properties were also listed. Mr. Whitson commented that he doesn’t see how his property can be appraised as $189,000 at this time. Chairman Dinning asked if that amount was for the property in totality and Mr. Whitson said yes. Commissioners reviewed the appellant’s exhibit.

Commissioner Cossairt said the appellant’s appraisal is one year old and it’s been a bad year. Ms. Kramer mentioned a value of $182,742.00 and commented that was from over one year ago and the Assessor’s Office would time adjust that by 1% per month based on the market they’ve seen.

Chairman Dinning informed Mr. Whitson that this is the first time in 20 years the Assessor has failed the state test for the home value category and the Assessor’s Office values have to fall within the range of 90% and 110%. The State Tax Commission met with Commissioners and Commissioners questioned what happens if the county chooses not to accept those values and rolls them back. The State Tax Commission had replied that they would take the county to the State Board of Tax Appeals, will win the case, and would then order to have values raised to fall within the range and if the county were not to do that, the state will raise values 100% of what the state determines is market value, whereas we are not at this point. The county currently is falling in the 90+% range for values. Commissioners and the Assessor have been thrown under bus and this also affects them as well. The Idaho Association of Counties saw this issue coming and Ada County and Kootenai County experienced this last year. Counties had asked that the homeowner’s exemption benefit be increased, to index values to the market so it increases or decreases according to market and to put it on a curve. The only thing that came out of the legislature of any consequence was to freeze county budgets and that is a whole set of problems. Boundary County is at the mercy of the state mandate right now, but Commissioners are sympathetic and they do understand.

Mr. Whitson questioned if the county feels it would lose if they were to go to the State Board of Tax Appeals. Chairman Dinning said yes, and he added that a couple few years ago Bonner County did just that and it didn’t work out for them. Mr. Whitson said if the state did this, Commissioners are saying the homeowner would lose the right to appeal. Chairman Dinning said yes, from what Commissioners have been told. Chairman Dinning said Commissioners are as frustrated about that just as much as the homeowners are.

Ms. Kramer read page 3 of her statement into the record and added that the value is still under $200,000.00 so Mr. Whitson will have the full benefit of the homeowner’s exemption. Ms. Kramer asked Commissioners to sustain the Assessor’s valuation.

Chairman Dinning asked about the home’s construction and Ms. Kramer said the home is classed as average. The next physical visit to this property would be next summer, according to Ms. Kramer. Chairman Dinning said the county used to be able to count depreciation, but the Idaho State Tax Commission has indicated that’s not the case anymore. Ms. Kramer said that is correct.

Mr. Whitson said he realizes Commissioners are having issues with the state, but he doesn’t feel the citizens should be taxed more heavily because of that or that this should fall on his shoulders. Mr. Whitson said he’s made little to no improvements. The chimney is sinking and falling away from the house and there hasn’t been a lot of time to make improvements, etc. Mr. Golder said Ms. Kramer had alluded that the homeowner’s exemption is still not maxed, so most of the increase would be absorbed by that exemption. Those that fall under the homeowner’s exemption wouldn’t see as high an increase from what’s Mr. Golder said he’s seen.

Chairman Dinning said in Mr. Whitson’s case, the increase was $40,000.00 over last year. The homeowner’s exemption will absorb up to $20,000.00 of that increase. There is still $20,000.00 more and what has happened is because of increased value in tax, there will be an increase to the homeowner. Other categories have seen a reduction in their responsibility in taxes. If the county didn’t increase property taxes by one penny, there would still be a shift in responsibility from the residential property and that comes off of the other categories. It’s just a shift of responsibility. Commissioners suggested contacting the legislators. Chairman Dinning said we all recognize that the appellant’s appraisal is over one year old and he added that Mr. Whitson mentioned the chimney is sinking in relation to the appraiser’s inspection. Commissioner Cossairt said he could see a reduction to $182,000.00. Mr. Golder said the cost approach came to $182,742.00. The sales comparison is $165,000.00 so there is a bit of difference between those two figures. The Assessor’s Office system shows $189,150.00 for a cost approach.

Commissioner Cossairt moved to reduce the value to $182.742.00 for parcel #RPM00000168558A owned by Zachary Whitson. Commissioner Kirby second. Motion passed unanimously.

Chairman Dinning said this is based on the cost approach documents from Mr. Whitson’s appraisal. There was depreciation included in the appraisal and the State Tax Commission states depreciation really doesn’t exist anymore. Chairman Dinning suggested taking another look as the cost approach doesn’t take into account things such as the chimney issue, which he thinks would be an additional $5,000.00.

Commissioner Cossairt moved to amend his prior motion and to reduce the value to $177,742.00 for parcel #RPM00000168558A owned by Zachary Whitson. Commissioner Kirby second. Motion passed unanimously.

Chairman Dinning stated for clarification that the value reduction is to come off the house.

The appeal hearing for parcel # RPM00000168558A owned by Zachary Whitson ended at 11:25 a.m.

Commissioner Cossairt moved to authorize Panhandle Pest Control to treat the tire pile at the landfill to consist of two treatments totaling $500.00. Commissioner Kirby second. Motion passed unanimously.

Commissioners recessed for lunch at 11:40 a.m.

1:30 p.m., Commissioners reconvened for the afternoon session with Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, and Deputy Clerk Michelle Rohrwasser.

1:30 pm., Commissioners held a Board of Equalization appeal hearing for parcel #RP60N01W131050A owned by Patrick and Laureen Doolin. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Deputy Assessor Tracy Golder and Appraiser Monica Tompke. The Assessor’s Office presented one exhibit marked “County Exhibit Assessor #1” (consisting of 5 pages, both sides). The appellant did not present any exhibits. The appeal hearing was recorded.

Chairman Dinning stated that Commissioners have not received the signed certified mail receipt card from the Doolins so we’re in the process of trying to reschedule their hearing. Commissioners paused the hearing to allow time for the appellants to arrive.

1:40 p.m., Commissioners postponed the hearing in order to contact the appellant to inquire about rescheduling their appeal hearing.

Commissioners recessed until their next hearing at 2:10 p.m.

2:10 p.m., Commissioners held a Board of Equalization appeal hearing for parcel #RP64N01E170760A owned by James Sporl and Maria Martinez. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Deputy Assessor Tracy Golder and Appraiser Melissa Kramer. The hearing was recorded. The Assessor’s Office submitted one exhibit marked “County Exhibit Assessor #1” (consisting of 6 pages copied both sides). Commissioners administered the oath to those giving testimony.

Chairman Dinning said the certified mail receipt card was signed for and returned to Commissioners. The appellants have not yet arrived so Commissioners will pause the hearing. The appellants did not show up and Commissioners resumed the hearing at 2:20 p.m.

Ms. Kramer provided an opening statement and read page 3 of her exhibit into the record. Chairman Dinning asked about the property’s acreage. It was said that it appears to be 39.8 acres and Ms. Kramer commented that she has not been to the home. Mr. Golder said the second structure is a detached garage with a living space above it and it had gone through the Planning and Zoning Office. The address of this other structure is 1911 Highway 1. Chairman Dinning mentioned it shows as a 1,600 square foot garage. Mr. Golder said he had no information. The information was added in 2010 and he hasn’t heard anything about it. Chairman Dinning asked about the construction and Ms. Kramer said it’s classified as “good minus”, which is above average. Chairman Dinning said the picture page shows the condition. Average condition is a default so it would have to be changed. Chairman Dinning reviewed the square footage. Commissioner Kirby said the brief remarks state there is a living area for an aunt. It was said the square footage of this area is included in the value, but it’s not calculated into the square footage of the house. The last page shows the amenities in this living space. Chairman Dinning asked if the Assessor’s Office program is adding cost as if the above loft is finished and Mr. Golder said no. Chairman Dinning said it’s showing as having a value of $146,520.00, which seems high for a detached garage with living area. Chairman Dinning reviewed the special features totaling $370.00 each and $3,300.00. Mr. Golder said some of this is information auto populated. Chairman Dinning spoke of a cost of $24,000.00 for the finished area so for a 40 x 40 garage is takes $20,000.00 and then take that off the total assessed values. Mr. Golder said special features are just add-ons. Mr. Golder spoke of reviewing the property via aerial. Commissioner Kirby asked if $5,000.00 includes the garage, etc. It was said year 2022 is the next time this parcel is to be visited. Mr. Golder informed Commissioners that this is a posted property. Ms. Kramer said the property was posted and gated when she did the last review. Commissioner Cossairt said it looks to be a very nice looking piece of property. Mr. Golder said the other structure is separately addressed so it has its own amenities, etc. Mr. Golder added that typically they list separately the homesite, septic and water, but in this case they didn’t separate those.
Commissioners stated for the record that the appellant is not present. Commissioner had no questions and closed the hearing to further testimony in order to deliberate amongst themselves. Commissioner Kirby said he would be inclined to uphold the Assessor’s valuation.

Commissioner Kirby moved to uphold the Assessor’s valuation for parcel #RP64N01E170760A owned by James Sporl and Maria Martinez. Commissioner Cossairt second. Motion passed unanimously.

The appeal hearing for parcel #RP64N01E170760A owned by James Sporl and Maria Martinez ended at 2:35 p.m.

Commissioners recessed until their next meeting at 3:00 p.m.

3:00 p.m., Commissioners held a Board of Equalization appeal hearing for parcel #RP62N02E260461A owned by the Beckle Family Trust, Karl Beckle and Robin Beckle. Present were: Chairman Dan Dinning, Commissioner Wally Cossairt, Commissioner Walt Kirby, Deputy Clerk Michelle Rohrwasser, Deputy Assessor Tracy Golder, and Appraisers Monica Tompke and Teri Cushman. The Assessor’s Office submitted three exhibits marked as “County Exhibit Assessor #1” (consisting of 8 pages, copied both sides), “County Exhibit Assessor #2” (consisting of 3 pages, copied both sides), and “County Exhibit Assessor #3” (consisting of 2 pages). The appellant submitted one exhibited marked as “Appellant Exhibit #1” (consisting of 6 pages). The hearing was recorded. Chairman Dinning reviewed the hearing procedures and administered the oath to those giving testimony.

Mr. Beckle said he absolutely understands that property taxes have gone up, but he hadn’t been aware of just how much. The difference between assessed value and taxes was clarified. Mr. Beckle mentioned the value increase from $182,000.00 to $183,000.00. Mr. Beckle informed Commissioners that Steve Carey with Shelman Realty had been to his home some time ago and had also shown the home multiple times over the years. The home is off grid and on an unimproved road that is not maintained. The house is heated by wood. Mr. Beckle said it’s just getting hard and he’s not sure they can keep the home up forever. When asking Mr. Carey what he felt the property would be listed at, Mr. Carey had felt it would list for approximately $420,000.00 to $450,000.00 and this was a conversation from several months ago.

Mr. Beckle questioned this assessment and Ms. Tompke reviewed some property details with him. It was 20 acres and approximately three acres were added. Mr. Beckle commented that when they first bought the property, the seller’s agent said the three acres were deeded to ride horses through, but it turned out to be a total lie. Yesterday Mr. Beckle said he met with Appraiser Teri Cushman and she explained the three acres and it made sense so he was wrong when he had spoken to Ms. Tompke. Ms. Cushman had shown him the aerial view and there’s a portion that was not forested and it was appraised at a different rate than forested land. Mr. Beckle said Mr. Carey commented that this property is worth $420,000.00 to $450,000.00 several months ago and now Mr. Carey says it’s worth $440,000.00 to $470,000.00. Mr. Carey had said the value would be higher if there was an improved road and power to the site. When they bought it, they didn’t know what they’re getting into as far as living off grid and Mr. Beckle spoke of the costs associated with a solar system. The only property he can relate to is his neighbor. Mr. Beckle added that this neighbor’s assessed value increased to $259,000.00 and his increased to $569,000.00 so almost double, but the neighbor’s home sold for $444,000.00 one and one half years ago. Mr. Beckle said in the letter he received about the increase, one thing stated was that homes over $200,000.00 increased considerably, and his home had a 47+% value increase. Mr. Beckle said he’s asking the Assessor’s Office how many of these properties increased 47%. His value of $569,000.00 seems excessively high and he provided comparables (comps) that have similar square footage. Mr. Beckle added that he has twice the acreage, but the home seems to be very similar and it’s a recent sale selling for $370,000.00. Mr. Beckle said he feels at a disadvantage as he doesn’t have the ability to get comps. The letter from the Assessor’s Office suggested that he get a fee based appraisal, but nobody called him back until it was too late.

Commissioner Cossairt said he found a note regarding square footage of 5,100 square feet and Mr. Beckle said the living space is 3,700 square feet. There is a garage with an area that has been started to be built into a couple bedrooms, but it’s not completed and you cannot live there. There is no bathroom. Mr. Beckle said as he understands, the place was once a hunting cabin. There is a storage area for food above the garage and out back is a bunker. The bunker is of no value and it leaks and has no electricity and he questioned how to get the bunker off the tax roll. Chairman Dinning mentioned Mr. Beckle’s neighbor’s comp and how many acres the parcel is. Mr. Beckle said he thought it was 40 acres. There is another neighbor on Two Tail Road, the so called school house, and that is 58 acres and it sold relatively recently for $318,000.00. That property is a 2,528 square feet house on 58 acres. Mr. Golder asked if the neighbor’s assessment was included in the packet. Mr. Beckle said he doesn’t have the assessment, he just got the information from the neighbor over the phone.

Ms. Tompke read page 3 of her exhibit into the record.

Commissioner Cossairt asked about square footage and Mr. Golder said he could address that. The note in the information is referring to the house and living space above the garage. It was found in a real estate ad from a previous sale. The square footage of 5,100 is the living space of the house and apartment. Mr. Beckle had commented that when he bought the property it was not listed as 5,100 square feet. The listing said it was 3,700 square feet. Chairman Dinning mentioned the dwelling as 3,478 square feet for the house only. The size of 1,200 square feet is the apartment and it’s shown as the pole building. Mr. Beckle said it’s a garage with an apartment above it. The prior owner wanted to turn it into an apartment, but the problem is you have to have some sort of septic and power, which was partially installed. Something that was started, but never completed and there is no running water or plumbing. Ms. Tompke said the property is posted and she has not been to the property. Mr. Beckle said Jackie Allen had appraised the house prior and it showed as having three full bathrooms, but it doesn’t have that many so that was to be fixed. It shows as having a fireplace, but it just has a stove. The home has curb appeal, but it’s lacking a dishwasher, garbage disposal, etc., according to Mr. Beckle.

Ms. Tompke said she did change the bathroom count. The Assessor’s information shows there being two fireplaces, but Mr. Beckle said he doesn’t have any fireplaces. Mr. Golder said under special features it lists a wood stove and a one story flue and the flue is also being valued. A wood stove at $1,600.00 and a one story flue also has value. Chairman Dinning asked if the garage apartment was addressed and valued as an apartment. Ms. Tompke said she believes it was valued at 70% complete for the apartment. The rate per square foot is $114.74 for the dwelling, the apartment is $58.19 per square foot and the basement bunker is $14.26 per square foot. Chairman Dinning questioned if the garage/pole building is valued at $116.00 per square foot for one level. Mr. Golder said it’s $58.19 per square foot for the pole building and that is 1,260 feet. Commissioners had no questions. The value of the bunker is $14,260.00. Ms. Tompke offered to reduce the value of the bunker for function as it was leaking. There was also the offer to take off the shed as it’s supposedly no longer there, but the property is posted so she didn’t go there. The greenhouse and shed can be removed from the Assessor’s information and the value of the bunker can be reduced 20%. The value for the greenhouse was $8,690.00.

The hearing was paused to allow the Assessor’s Office to look up the neighbor’s, Perry Miller, assessment to verify information.
Mr. Golder said there are both some differences and similarities. The size of one house is quite a bit smaller and 10 years newer and as far as land, it’s similar. The neighbor’s property has 40 acres and all but two acres are in an exemption. Mr. Golder said the sales verification showed the property sold in February 2018 for $387,500.00. Mr. Beckle said going back a while ago he became curious about the school house property and how much it sold for as well as the property at 267 Misty Mountain so he asked Mr. Carey about it and he came up with the figure of $440,000.00. Mr. Beckle added that Mr. Miller had verified that figure and that was from August 2018. There were no other questions for the Assessor. Chairman Dinning said what he’s hearing is because the subject property is older than the neighbor’s property, there is more depreciation assigned to it.

Chairman Dinning said the Idaho State Tax Commission comes up twice per year to check the Assessor’s values to be sure those values fall within the 90% to 110% range. For the first time in 25 years the Assessor had failed the test and the county has to bring residential values to the standard to fall within those percentages and Assessor Ryals has done that. The Tax Commission had informed Commissioners they don’t consider depreciation to be a part of that equation anymore. Commissioners don’t have to accept what value the Assessor has and they can lower values. Commissioners asked George Brown with the State Tax Commission what would happen if that were to occur and Mr. Brown said the state would take the county to the State Board of Tax Appeals, they would win the appeal and then send the order to the county to raise values to what they prescribe. It was stated those values would be raised to 110% whereas right now they’re in the low 90% range and that is being reflected in the assessments. If the county were to choose to lower everyone’s assessment, the property owners would lose the ability to appeal their own valuation according to the state’s rules. Chairman Dinning said he’s been very active with the Idaho Association of Counties for the last three years and has been asking the state legislature to address what is happening to the county this year and he added that this happened to Ada County and Kootenai County last year. Counties are asking for an increase in the homeowner’s exemption, to index values and put them on a curve instead of spikes and that has not happened. What we’re dealing with today is being mandated by the State of Idaho. The county is sympathetic, but in Mr. Beckle’s situation there seems to be quite a disparity in the property next door so Commissioners need to come to a conclusion to fix that.

Mr. Beckle provided a closing statement and said he voiced his feelings. From what Mr. Carey stated the property would sell for $470,000.00 and we’re talking an assessed value of $569,000.00. Even if the 110% was applied, it still falls below $569,000.00. If there are other homes that have increased 47+% like his, he would like to see a list of those homes. Commissioners asked for a closing statement from the Assessor. Ms. Tompke said she did offer some reductions. Mr. Golder said there had been discussion regarding changes to the land for next year so he wanted to make that known. Ms. Cushman was aware that changes couldn’t be made this year and that it would be up to Mr. Beckle to discuss this with the Board of Equalization. Mr. Beckle mentioned there being three acres of forested land and when he spoke to Ms. Tompke he felt those acres were miscoded as “other” instead of forested land. Mr. Beckle said he believes it was the seller’s agent who told the story of access for horses. Ms. Cushman said the property that is forested is not the three acres listed on the assessment. Those three acres are land that is not forested, has a pond, etc. What she had listed as the three acres happen to coincide with another three acres and Mr. Beckle thought they were one in the same. Ms. Cushman said she pulled out the pond, riparian area and open areas. The timber management plan spoke of nursery stalk and she can tell by the aerial that it’s overgrown, but what she determined today is that she would take out the acre for the home, one acre for the pond and riparian area at 50% and the one area is pipeline and is approximately .4 acres at 50%. So that is 1.4 acres at 50% as opposed to three acres at market, according to Ms. Cushman. Mr. Golder said he has the rough work up of what Ms. Cushman described. Commissioners reviewed the information before them. Commissioner Cossairt changed the house to $111.00 per square feet, didn’t include the bunker and he left the value of the land as is with a result of that calculation being $528,057.00.

Chairman Dinning said the property next door is $78.00 per square foot. This property is at $114.00 per square foot assuming the quality. Using $78.00 per square foot for the subject property brings the value of the house to $271,000.00, but it looks to be two different quality of structures. Chairman Dinning said what concerns him is that due to being an older home, depreciation is added back into the calculation, because the Idaho State Tax Commission is not adding depreciation. The existing total is $569,000.00. Commissioner Cossairt said he removed the value of the bunker, added the garage, removed the greenhouse and one shed, took 20% off for the basement, and a reduction of $8,690.00 for the garage.

Chairman Dinning mentioned the letter from Mr. Carey and the adjustment back and forth with similar properties. Mr. Beckle said the other off grid property is better. Mr. Golder had no comments.

Chairman Dinning said we need to be fair to everyone when we look at these. The Idaho State Tax Commission has done a real disservice. Mr. Carey’s letter lists a high side of $470,000.00 and he would feel comfortable with a value of $500,000.00.

Commissioner Cossairt moved to change the assessment for parcel #RP62N02E260461A, owned by Beckle Family Trust, Karl & Robin Beckle, to $500,000.00 with the value coming off the buildings. Commissioner Kirby second. Motion passed unanimously.

Chairman Dinning explained that Commissioners would send Mr. Beckle a letter listing the valuation change and he listed the options to appeal this decision.

The appeal hearing for parcel #RP62N02E260461A, owned by Beckle Family Trust, Karl & Robin Beckle, ended at 4:05 p.m.

Commissioner Cossairt moved to sign the FY2021 Indigent Defense Financial Assistance Supplement to Compliance and Application. Commissioner Kirby second. Motion passed unanimously.

There being no further business, the meeting adjourned at 4:15 p.m.

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DAN R. DINNING, Chairman
Attest:

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GLENDA POSTON, Clerk
By: Michelle Rohrwasser, Deputy Clerk