Chapter 1
Overview of County Appraisal District1.1
County History and DemographicsAccording to the Handbook of Texas, Cooke County was formed in 1848 and parts of the original Cooke County included Montague, Clay, Wise and Jack counties. Cooke County assumed it current boundaries in 1857. The county was named for William G. Cooke, a hero of the Texas Revolution.
Cooke County is located in north central Texas on the Oklahoma border. Gainesville the county seat is located seven miles south of the Red River and 71 miles north of Dallas.
Agriculture still dominates the economy of Cooke County, with more than 77 percent of the county's total area occupied by farms. Fifty-seven percent of the acreage is pasture or rangeland.
The population of the county for 2003, according to the County Information Project, was 37,996 residents, with the City of Valley View having 788 residents, the City of Oak Ridge having 256 residents, the City of Muenster having 1,645 residents and the City of Gainesville having 16,040 residents and the City of Callisburg having 388. The balance of the county population, 17,998, lives in smaller cities and towns and the rural areas. The county comprises 905 square miles.
The county seat is Gainesville, located at the intersection of Interstate Highway 35 and US Highway 82. The city became the county seat in 1848.
The county includes the Gainesville Independent School District, Muenster Independent School District, Valley View Independent School District, Callisburg Independent School District, Era Independent School District, Lindsay Independent School District, Walnut Bend Independent School District, and Sivells Bend Independent School District.
1.2
Appraisal District Organization and StaffingThe appraisal district was formed in 1981 and became active in 1982. Cooke CAD has a total of 17 full time staff with three supervisory positions and one part time position. Seven of the positions are full time appraisers and one is a part time appraiser. The district contracts with Pritchard & Abbott, Inc. (P&A) for professional appraisal services on mineral and industrial appraisals.
Exhibit 1 outlines the district organization.
Scope of Office
The board of directors has no authority to set values or appraisal methods. The chief appraiser carries out the appraisal district's legal duties, hires the staff, makes the appraisals and operates the appraisal office.
The district provides appraisal services for twenty taxing units: Cooke County , Gainesville Independent School District, Muenster Independent School District, Valley View Independent School District, Callisburg Independent School District, Era Independent School District, Lindsay Independent School District, Walnut Bend Independent School District, Sivells Independent School District, City of Muenster, City of Gainesville, City of Oakridge, City of Valley View, City of Callisburg, City of Lindsay, Munster Water District, North Central Texas College District, Clear Creek Watershed District.
Exhibit 2 presents the types of properties appraised by Cooke CAD in tax year 2003. In-house staff handles all property categories except Category G (minerals), Category J (utilities), and part of Category F2/L2 (industrial - real/personal), which is appraised by P&A.
Exhibit 2
Cooke CAD Property by Category Summary with Assigned Responsibility
Property Category Account Type Description Responsible for Appraisal Category A Residential In-house staff Category B Multi-Family In-house staff Category C Vacant Lots In-house staff Category D/E Farm/Ranch Land w/Impr. In-house staff Category F1 Commercial Real In-house staff Category L1 Commercial Personal In-house staff Category G Minerals Contracted Appraisal Firm Category J Utilities Contracted Appraisal Firm Category F2 Industrial Real In-house & Contracted Appraisal Firm Category L2 Industrial Personal Contracted Appraisal Firm Source: Cooke CAD, 2005. Most appraisal districts contract out some appraisals to contract appraisal firms. PTD does not track parcel counts appraised by external appraisers in appraisal districts. Appraisal district contracts with external appraisers routinely do not include a parcel count for the number of appraisals an external appraisal company will perform. In assessing the staff to parcel count ratio in each appraisal district, PTD uses parcel counts reported in the district's 2003 independent school districts self reports to calculate the parcels per appraisal district staff. PTD does include all of the commercial real and personal property parcels in the calculation, since PTD is unable to determine exactly how many parcels are assigned to in-house staff versus a contract appraisal firm. The total parcels appraised in-house are calculated by summing the total number of parcels reported in Categories: A, single family residential; B, multifamily residential; C, vacant lots; D, rural land; E, rural improvements; F1, commercial real property; L1, commercial personal property; M1, mobile homes; O, residential inventory; and S, special inventory, as shown in Exhibit 3.
Exhibit 3
Reported Data on Parcels, Categories Staffing, Training and Operations Comparison to State and Group Averages
General Information Cooke State Avg. Group Avg. Parcel Size Group (by number of locally appraised parcels) 25,000 - 34,999 Estimated # Locally Appraised Parcels 32,445 55,463 28,722 # Taxing Units 20 15 12 Locally Appraised Parcels to Staff 2,318 3,404 2,911 2003 Composition by Percentage
of Value (Self Report):Cooke State Avg. Group Avg. Residential Value 45.0% 52.6% 36.9% Non-Residential, Non Mineral 52.1% 43.6% 56.1% Non-Residential, Mineral 2.9% 3.7% 7.0% 2003 Composition by Account Category Type (Operations Survey): Real Property 31,994 45,804 26,079 Mineral Property 7,492 13,536 12,215 Business Personal Property 2,043 4,689 1,588 Individual Personal Property 0 1,342 694 Total Accounts 41,529 65,372 40,576 2003 Composition by Locally Appraised Parcel Category (Estimated from Self Report): Cooke State Avg. Group Avg. Parcel Type # Parcels % of Parcels A 10,686 32.9% 44.1% 29.5% B 98 0.3% 1.0% 0.3% C 3,581 11.0% 13.1% 15.5% D 8,722 26.9% 24.7% 29.9% E 5,124 15.8% 4.5% 12.8% F1 1,171 3.6% 3.1% 3.0% L1 1,730 5.3% 5.7% 4.7% M1 777 2.4% 2.2% 3.3% O 520 1.6% 1.4% 1.0% S 36 0.1% 0.1% 0.1% Total 32,445 100.0% 100.0% 100.0% PTD estimated that Cooke CAD staff is responsible for appraising about 32,445 parcels. The International Association of Assessing Officer (IAAO) Standards state that small taxing units run from 1,500 to 1,700 parcels per staff member and large taxing units run from 3,000 to 3,500 parcels per staff member with an average of 2,500.
Comparable districts in size to Cooke are Wharton, Pecos, Bandera and Upshur. The number of parcels per staff member for Cooke CAD was 2,318. Wharton CAD was 4,019, Pecos CAD was 4,391, Bandera CAD was 5,082 and Upshur was 3,611. Of course workloads in appraisal districts may vary due to any number of considerations other than parcel count. Geography or the size of an appraisal district may have a significant impact on the time required to work all parcels. The types of properties may also have an impact. More complex commercial and sometime even residential properties may require more staff to appraise. The data given here is meant to give the reader at least some comparison to other appraisal districts with similar parcel counts and the standards determined by IAAO.
Exhibit 3 includes reported data concerning CAD and state and group averages.
Exhibit 3
Reported Data on Parcels, Categories Staffing, Training and Operations Comparison to State and Group Averages (continued)
Financial and Staffing
Information (Operations Survey)Cooke State Avg. Group Avg. 2003 Budget $725,150 $1,079,695 $586,864 2003 Surplus $5,000 $71,620 $27,106 2003 Surplus as % of Budget 0.7% 6.6% 4.6% 2004 Budget $750,350 $1,104,961 $614,890 % Change in Budget 3.4% $0 4.8% 2004 Budget per Total Local Parcel $23.13 $19.92 $21.41 Staffing Full Time 14 18 10 Part Time 2 2 1 Supervisory 3 3 2 Programmers 2 2 0 Supervisory to Staff Ratio 1:5 1:5 1:4 Chief Appraiser Performs Appraisals? Yes 2004 Total Compensation $55,200 $53,564 $54,871 Appraisers Full - Time 7 8 4 Part - Time 1 0 1 Salary Range: Low $24,500 $24,504 $24,688 High $34,500 $37,521 $36,967 Training Budget $7,300 $8,832 $7,095 # Registered with BTPE (1) 7 9 6 Types of BTPE Certification: RPA (2) RTA (3) RTC (4) All 3 1 0 0 Operations Information
(Operations Survey)Cooke State Avg. Group Avg. Reappraisal Last Year of Reappraisal 2003 Next Year of Reappraisal 2006 Type of Appraisal: Complete Method of Appraisal: Combination Protests 1,323 3,131 927 Protests per Parcel 3.2% 4.7% 2.4% Consolidated Collection Yes Collection Budget $203,567 Geographic Information System (GIS)? Yes Percent GIS Complete 99% 80% 74% Board of Directors Members 5 6 6 Tax Assessor Votes? * Elected Members 2 3 2 Note: An asterisk (*) is shown where data was not reported.
Source: Cooke CAD ISDs 2003 Self Reports and Comptroller 2003-2004 Appraisal District Operations Report and Comptroller comparative data for state and group averages from district self reports and the Appraisal District Operations Report.
Notes: (1) BTPE - Board of Tax Professional Examiners. (2) RPA - Registered Professional Appraiser. (3) RTA - Registered Texas Assessor-Collector. (4) RTC - Registered Texas Collector.1.3
Self Evaluation QuestionnaireIn preparation for the Appraisal Standards Review, Cooke CAD was requested to complete the IAAO's Self Evaluation Questionnaire. This instrument allows an appraisal district to assess their compliance with acceptable procedures, standards and organization. Each district receives an electronic version of the question and the complete IAAO manual explaining each question with information on how to answer each question. Each district undergoing an appraisal standards review is requested to perform the self assessment, with the goal of assisting the district in determining how well it is performing.
Cooke County Appraisal District declined to answer the questions in the questionnaire despite requests to answer and return it.
1.4
Findings of the Property Value Study and Summary WorksheetsThe Property Value Study (PVS) determines the total property value in each school district in the Cooke County Appraisal District (CAD). With a few notable exceptions, all CADs and the Property Tax Division (PTD) are required by law to appraise property at market value. Agricultural land and timberland are appraised according to productivity value. Market value, in short, is the price that a property would transfer from a willing seller to a willing buyer. For it to be a market transaction, neither party may be under duress to buy or sell. The sale must be on the market for a reasonable time.
Local appraisal roll value, or local value, is determined by the county appraisal district and submitted to PTD on its annual self-report. The PTD staff estimates the total taxable value in a school district, referred to as state value, by determining market value or by accepting the local appraised value in each property category (see Exhibit 2) in the district and then adding these category values for an overall school district value. PTD then deducts state-mandated homestead exemptions, disabled veterans' exemptions, value limitations, reinvestment zones, freeport exemptions, the loss between market value and productivity value appraisal of qualified agricultural lands, the school tax ceiling for homeowners over age 65 or disabled and other state-mandated exemptions.
PTD issues a preliminary and final PVS each year. School districts and county appraisal districts may protest the findings of the preliminary PVS through an administrative hearings process with the Comptroller, and school districts may protest the findings of the final PVS in district court. The administrative hearings process requires the protester to file a written protest with supporting documentation within 40 days of the issuance of the preliminary PVS. PTD may amend the findings of the preliminary PVS based on the submission of the written protest, an informal hearing or a formal hearing. Formal hearings are held by a hearings examiner, appointed by the Comptroller's General Counsel, and reporting directly to the Comptroller. The hearings examiner is not an employee of PTD.
When conducting the property value study, PTD assigns properties to various categories, such as residential, commercial and rural property. Properties are divided into categories so that like properties are assessed together.
Cooke CAD did not appeal the findings of the preliminary study. Lindsay ISD, Valley View ISD and Callisburg ISD each appealed the preliminary findings of the study. Valley View received all its requested changes. Callisburg ISD received a majority of its requested changes. Lindsay ISD received all its requested changes. Despite the changes, Lindsay ISD, Valley View ISD and Callisburg ISD were unable to get into the confidence interval and were certified as eligible school districts in July 2004.
A review of the school districts in the county indicates that Cooke CAD is inconsistently appraising the single-family residences, and rural residences, as well as consistently over valuing productivity value of dry crop land as determined by PTD. In the 2003 PVS, Lindsay ISD, Valley View ISD and Callisburg ISD were identified as eligible and fell outside the study's statistical margin of error. Single-family residences (category A), and rural real property (category D) are the primary reasons that the schools' values are not within the acceptable range determined by the study. Other school districts in the county are Gainesville, Muenster, Era, Walnut Bend, and Sivells Bend ISDs.
In general, a ratio of between .95 and 1.05 in any property category makes it more likely that the district is appraising property within the margin of error, or that it is appraising property at or near market value, according to the PVS.
Eligible School Districts
Lindsay ISD
Lindsay ISD was identified as an eligible district with value outside of the confidence interval limit. There are four property categories tested in Lindsay ISD: (1) category A, Single-Family Residences, making up 32.8 percent of the district's value with a weighted mean ratio of 0.9220, (2) category D, Rural Real, making up 13.2 percent of the district's value with a weighted mean ratio of 1.0006, (3) category F1, Commercial Real, making up 10 percent of the district's value with a weighted mean ratio of 0.9511 and (4) category L1, Commercial Personal, making up 7.4 percent of the district's value with a weighted mean ratio of 1.0026.
Category A has 51 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below their market value. A review of the category A properties indicates that the district appraised from as low as 73 percent to a high of 105 percent of market value with a weighted mean ratio of 0.9220.
Category D, Rural Real, tested near their market value and within the margin of error by a weighted mean ratio of 1.0006. Subcategory D1 consists of 14.7 percent of category D's value and 3.2 percent of the tested value. D1 was tested primarily in the dry crop appraisal with a weighted mean ratio of 1.3267. Subcategory D2, however, has 85.3 percent of category D's value and 18.4 percent of the school district's total tested value. The district appraised rural homes from as low as 85 percent to a high of 105 percent of market value with a weighted mean ratio of 0.9599.
Category F1, Commercial Real property, is 10 percent of the district's value and tested below market value with a weighted mean ratio of 0.9511. The district valued the commercial real property from as low as 76 percent to a high of 113 percent of market value.
Category L1, Commercial Personal property, is 7.4 percent of the district's value and tested near market value with a weighted mean ratio of 1.0026. The district valued the commercial personal property from as low as 80 percent to a high of 155 percent of market value.
Valley View ISD
Valley View ISD was identified as an eligible district with value outside of the confidence interval limit. There are two property categories tested in Valley View ISD: (1) category A, Single-Family Residences, making up 36.9 percent of the district's value with a weighted mean ratio of 0.9562; and (2) category D, Rural Real, making up 42.4 percent of the district's value with a weighted mean ratio of 0.9421.
Category A has 45.3 percent of the tested value. A review of the category A properties indicates that the district appraised from as low as 73 percent to a high of 164 percent of market value with a weighted mean ratio of 0.9562.
Category D, Rural Real, has 54.7 percent of the tested value and is below their market value by a weighted mean ratio of 0.9421. Category D represents rural properties and contains two subcategories: D1 and D2. Subcategory D1, Productivity Value of Qualifying Acres, is primarily farm and ranch land that qualifies for the special productivity appraisal. Subcategory D2, Non-Qualifying Acres and Farm and Ranch Improvements, is primarily rural homes and land that does not qualify for farming or ranching or timberlands. The differences in value between qualified and non-qualified rural land are often wide since D1 land is appraised using a special statutory method to determine the lands productivity value and D2 is based on what the land would sell for in an open market transaction. Subcategory D1 consists of 7 percent of category D's value and 3.8 percent of the tested value. D1 tested above their market value primarily in dry crop appraisals with a weighted mean ratio of 1.2537. Subcategory D2, however, has 93 percent of category D's value and 50.9 percent of the school district's total tested value. The district appraised rural homes from as low as 40 percent to a high of 150 percent of market value with a weighted mean ratio of 0.9249.
Callisburg ISD
Callisburg ISD was identified as an eligible district with value outside of the confidence interval limit. There are two property categories tested in Callisburg ISD: (1) category A, Single-Family Residences, making up 67.1 percent of the district's value with a weighted mean ratio of 0.9312 and (2) category D, Rural Real, making up 21.6 percent of the district's value with a weighted mean ratio of 0.9900.
Category A has 74.7 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below their market value. A review of the category A properties indicates that the district appraised from as low as 75 percent to a high of 177 percent of market value with a weighted mean ratio of 0.9312.
Category D, Rural Real, has 25.3 percent of the tested value and is very near market value by a weighted mean ratio of 0.9900. Callisburg ISD's subcategory D1 consists of 5.7 percent of category D's value and 1.5 percent of the tested value. D1 tested above their market value primarily in dry crop appraisals with a weighted mean ratio of 1.0514. Subcategory D2, however, has 94.3 percent of category D's value and 23.9 percent of the school district's total tested value. The district appraised rural homes from as low as 60 percent to a high of 183 percent of market value with a weighted mean ratio of 0.9865.
Other School Districts
Gainesville ISD is within the confidence interval limit. Category A has 46.5 percent of the district's value, and 57.8 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below their market value. A review of the category A properties indicates that the district appraised from as low as 51 percent to a high of 245 percent of market value with a weighted mean ratio of 0.9451. Category D, Rural Real, makes up 7.3 percent of the district's value and tested above their market value with a weighted mean ratio of 1.1098. Subcategory D1 consists of 6.9 percent of category D's value and .7 percent of the tested value. D1 tested above their productivity value primarily in the dry crop appraisal with a weighted mean ratio of 1.1930. Subcategory D2, however, has 93.1 percent of category D's value and 8.9 percent of the school district's total tested value. D2 tested above their market value. The district appraised rural homes from as low as 79 percent to a high of 217 percent of market value with a weighted mean ratio of 1.1041. Category F1, Commercial Real property, is 18 percent of the district's value and tested below market value with a weighted mean ratio of 0.9204. The district valued the commercial real property from as low as 62 percent to a high of 123 percent of market value.
Category L1, Commercial Personal property, is 9.9 percent of the district's value and tested near market value with a weighted mean ratio of 1.0044. The district valued the commercial personal property from as low as 81 percent to a high of 120 percent of market value.
Muenster ISD is within the confidence interval limit. Category A has 40.7 percent of the district's value, and 47.4 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below their market value. A review of the category A properties indicates that the district appraised from as low as 62 percent to a high of 112 percent of market value with a weighted mean ratio of 0.9417. Category D, Rural Real, has 26.4 percent of the district's value and tested near their market value by a weighted mean ratio of 1.0035. Subcategory D1 consists of 21.8 percent of category D's value and 7.1 percent of the tested value. D1 tested above their productivity value primarily in the dry crop appraisal with a weighted mean ratio of 1.1543. Subcategory D2, however, has 78.2 percent of category D's value and 25.3 percent of the school district's total tested value. The district appraised rural homes from as low as 72 percent to a high of 119 percent of market value with a weighted mean ratio of 0.9681. Category F1, Commercial Real property, is 8.9 percent of the district's value and tested below market value with a weighted mean ratio of 0.9344. The district valued the commercial real property from as low as 75 percent to a high of 105 percent of market value. Category G, Minerals property, is 7.8 percent of the district's value and tested above market value and with a weighted mean ratio of 1.1088. The district valued the Minerals property from as low as 99 percent to a high of 189 percent of market value.
Era ISD is within the confidence interval limit. Category A has 22.8 percent of the district's value, and 24.4 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, above market value. A review of the category A properties indicates that the district appraised from as low as 57 percent to a high of 174 percent of market value with a weighted mean ratio of 1.0265. Category D, Rural Real, has 67.2 percent of the district's value and tested below market value with a weighted mean ratio of 0.9360. Subcategory D1 consists of 17.5 percent of category D's value and 13.2 percent of the tested value. D1 tested above productivity value primarily in the dry crop appraisal with a weighted mean ratio of 1.2368. Subcategory D2, however, has 82.5 percent of category D's value and 62.4 percent of the school district's total tested value. D2 tested below market value. The district appraised rural homes from as low as 52 percent to a high of 118 percent of market value with a weighted mean ratio of 0.8901.
Walnut Bend ISD is within the confidence interval limit. Category A has 5.8 percent of the district's value, and 6.6 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below market value. A review of the category A properties indicates that the district appraised from as low as 67 percent to a high of 124 percent of market value with a weighted mean ratio of 0.9151. Category D, Rural Real, has 22.1 percent of the district's value and tested below market value with a weighted mean ratio of 0.9663. Subcategory D1 consists of 24.7 percent of category D's value and 6.2 percent of the tested value. D1 tested primarily in the dry crop appraisal with a weighted mean ratio of 1.1147. Subcategory D2, however, has 75.3 percent of category D's value and 18.8 percent of the school district's total tested value. D2 tested below their market value. The district appraised rural homes from as low as 57 percent to a high of 103 percent of market value with a weighted mean ratio of 0.9259. Category G, Minerals property, is 59 percent of the district's value and tested above market value with a weighted mean ratio of 1.0366. The district valued the Minerals property from as low as 70 percent to a high of 162 percent of market value.
Sivells Bend ISD is within the confidence interval limit. Category A has 40.6 percent of the district's value, and 44.4 percent of the tested value. The appraisal district is placing a value on the category A, single-family residences, below their market value. A review of the category A properties indicates that the district appraised from as low as 55 percent to a high of 173 percent of market value with a weighted mean ratio of 0.9114. Category D, Rural Real, has 13.8 percent of the district's value and tested above their market value by a weighted mean ratio of 1.1867. Subcategory D1 consists of 32 percent of category D's value and 5.1 percent of the tested value. D1 was tested primarily in the dry crop appraisal with a weighted mean ratio of 1.1145. Subcategory D2, however, has 68 percent of category D's value and 10.8 percent of the school district's total tested value. The district appraised rural homes from as low as 87 percent to a high of 144 percent of market value with a weighted mean ratio of 1.2241.
Category G, Minerals property, is 34.6 percent of the district's value and tested near market value with a weighted mean ratio of 0.9848.The district valued the minerals property from as low as 65 percent to a high of 134 percent of market value.
Cooke CAD Summary
In summary, the Cooke CAD is inconsistently appraising in every category where a sampling of properties were tested.
For a statistical explanation of why the district was selected as eligible, see Appendix 22.
