Assessor says citywide values raised to 91% after 18-month revaluation; warns of revenue loss if left at prior level

Sean McCarthy, Saco's assessor, told the City Council the assessing department completed an 18-month "measure and list" of parcels and used 399 qualified sales from 07/01/2024 to 06/30/2025 to update values citywide.

McCarthy said the department applies mass-appraisal statistical methods and tracks both a sales-ratio (how assessed values compare to market sales) and a quality rating (how far individual sales deviate from the average). "We went from about 77% when I started analyzing the data back in February to about 91%," he said, adding the change reduced the department's quality rating from about 14 to 5.6. He said the sample is the state's usual audit window and is large enough to support the update.

McCarthy explained why the change matters for city finances. "If we were to factor today, if we stayed at 77%, I calculated this using the tax rate calculation sheet based on our current budget, we would lose about $277,000 in state reimbursement for exemptions," he said, also estimating about $145,000 in lost personal-property revenue if the ratio remained at 77%.

Councilors asked practical questions about timing and frequency. McCarthy said tax bills are planned to be committed in early August and mailed in early September, with the tax due date on Oct. 14. On assessment cadence he said he favors smaller, more-regular updates: "My personal preference would be that these be smaller and more regular," he told councilors, explaining that spot updates tied to building permits or sales will continue between cycles.

Administrator Pelletier confirmed staff's plan to commit valuations around Aug. 3 and said the administration will report further during the next meeting. McCarthy also said the department has received substantial public interest since the letters went out: "As of right now...we've taken 235 phone calls and an unknown number of walk-ins."