Achievements Challenges

COOK COUNTY BOARD OF REVIEW Commissioner Larry R. Rogers, Jr. Commissioner Dan Patlak Commissioner Michael M. Cabonargi

CHALLENGES AND ACHIEVEMENTS ANNUAL REPORT ASSESSMENT YEAR 2017 • FISCAL YEAR 2018 Table of Contents

Cook County Board of Review Operational Highlights �� 6 Responsibilities ...... 1 Appeals Resulting in Reductions Letter from Commissioners (Assessment Years 2006 – 2017) �� 7 Rogers, Patlak and Cabonargi ...... 2 PTAB Appeals �� 8

Digital Appeals System Changes ...... 3 Exempt Properties and the BOR �� 9

Budget Highlights...... 4 2017 Tax Year Outreach Efforts ��10

Employees and Appeals ...... 5 Did You Know? �� 11

COOK COUNTY

Why does it matter BOARD OF REVIEW to Cook County Residents if RESPONSIBILITIES the tax bills go out on time? The Cook County Board of Review (formerly the Board of Tax Appeals) When the tax bills are delayed, was created by the 89th General Assembly in 1998 under statutory schools, libraries and other changes that established a three member Board of Commissioners elected from three electoral districts. essential district services are The Cook County Board of Review (hereinafter “BOR”) is vested with forced into budget gaps. To quasi-judicial power to adjudicate taxpayer complaints and recommend fill those gaps, reserves may exempt status of real property, which includes: residential, commercial, be tapped, which means that industrial, condominium property, and vacant land. Responsibilities of the BOR include the following: money is not earning interest, 1. Order the Assessor to revise and correct the assessed value or, money is borrowed, and of property; loan costs and interest fees 2. Review Certificates of Error; are incurred. The cost to local 3. Correct factual mistakes; government can be in the 4. Recommend property for tax exempt status; and

MILLIONS OF DOLLARS. 5. Defend assessment decisions for properties appealed at the Illinois Property Tax Appeal Board (PTAB). The BOR deals only with assessed valuations before equalization, not with the tax rate or the amount of the tax bill.

OFFICE

County Building | 118 N. Clark St., Room 601 | Chicago, IL 60602 Ph: 312/603-5542

1 www.cookcountyboardofreview.com 2017 ASSESSMENT YEAR ANNUAL REPORT LETTER FROM COMMISSIONERS

The 2017 assessment appeal session was one of month later than it did in 2016. With the County budget challenges and achievements. The session started in cuts forcing the loss of 19 BOR positions via layoffs August 2017 with indications that we would experience and the elimination of vacant positions, a related hiring a new record in appeal filings and concerns county-wide freeze and yet another record number of assessment of a budget deficit that would need to be addressed. appeals, the BOR finalized its 2017 session in May 2018. Over the next several months leading This outcome was forecasted repeatedly up to the new fiscal year beginning on by the Board of Review—both in writing December 1, we commissioners worked and verbally—during budget discussions tirelessly to alert county officials that leading up to the final 2018 County budget. a significant reduction in our budget Despite difficulties brought on by an would have a negative impact on every historic number of appeals and a record low governmental body in Cook County and personnel count, our employees performed put the tax bills at risk. at the highest level - which still allowed the July mailing of the 2nd installment bill. As anticipated, the BOR did adjudicate another record number of appeals: LARRY R. ROGERS, JR. With increased appeals at the Board of COMMISSIONER 228,380. In recognition of the budget Review come increased appeals at the concerns of the County Board, the BOR Property Tax Appeal Board (see PTAB stats agreed to reduce its already underfunded on page 5). Total potential liability for PTAB annual $12 million budget by $600,000. appeals (in terms of what could potentially But the County Board cut a further $1.2 be refunded to appellants by taxing districts) million for a net reduction of $1.8 million is $430 million not counting 2017 appeals which forced the elimination of 19 FTE which are expected to be at record levels. positions from 130 approved positions to The BOR is required to defend those appeals 111. Also, the County froze replacement of on behalf of Cook County and every other departing staff leaving unfilled positions governmental entity in Cook County despite created by another 6 analyst resignations/ never having received funding to do so. retirements, bringing the total staff This past year we improved our operations reductions to 25, a 19% drop. using the recently launched PTAB defense In 2012, we anticipated that appeal unit created with existing personnel from each numbers would continue to increase commissioner’s staff. The County partially exponentially and determined that recognized the liability by authorizing 5 out technology was the only answer in of 12 BOR requested new positions, and an economic environment unlikely to $150,000 for appraisals designated to be MICHAEL M. CABONARGI allow for an increase in personnel. The COMMISSIONER used in the defense of assessments at this BOR’s technological solution was the appellate level. However, due to spending Digital Appeals Processing System (DAPS) which was and hiring freezes the positions could not be filled, the nationally recognized for its innovation and enhancing funding for appraisals was eliminated, and then positions services for taxpayers. With the support of the Cook were eliminated for FY18. County Bureau of Technology, DAPS was launched Sincerely, for the 2015 reassessment of the City of Chicago where the BOR saw yet another record number of assessment appeals. After six consecutive years of the Commissioner Larry R. Rogers, Jr. 2nd installment bill being mailed out on time due to the Commissioner Dan Patlak BOR completing its work in April, this 2017 session the Commissioner Michael Cabonargi BOR finalized the assessment appeals process nearly a

Cook County Board of Review 2 DIGITAL APPEALS SYSTEM CHANGES

The addition of the Digital Assessment Processing System (DAPS) as a new tool for analysts to use in the appeal process brought about significant changes that benefited analysts and appellants alike. In 2017, the base program was upgraded to a newer version providing a better and faster operating platform, an improved digital Property Record Card (PRC) was implemented that is more integrated with the County, and Hearing process improvements were made to better manage the scheduling of hearings and shorten waiting times.

Hearings Number of Requested Hearings Residential With increased analyst stations in place, wait times for property owners that had requested 40000 a hearing were reduced even further. Using the DAPS system, the analyst is able to view 30000 the property owner’s property and other 20000 pertinent information. 10000 OF HEARINGS AVERAGE TOTAL TOTAL AVERAGE Commercial 0 With the addition of DAPS tool for use in 2015 2016 2017 commercial hearings, the commercial analyst 29,855 11,177 10,806 was able to prepare for a case in advance of the hearing as commercial analysts now know which cases they will be overseeing ahead of time. This advanced preparedness improved the hearing experience for all.

The drop in requested hearings between 2015 and 2016 is a continued result of having the new DAPS program in place that allows for evidence uploading online. Previously for 2015, requesting a hearing by attorneys was done during the application process and the attorneys would request hearings on all cases and then filter out afterwards. In 2016, that task was moved to the end of the process and hearings are now requested after all evidence is submitted and the complaint is finalized.

Transparency Number of PINS Appealed by Property Type* Whether commercial or residential, the new system provides greater transparency for the property owner. All analyst information – notes, evidence and decisions – are now available online if an account is created by the appellant. An online account allows the appellant to login and see the final decision rendered and any notes by the analysts. RESIDENTIAL = 198,154 CONDO = 98,424 COMMERCIAL = 64,293 * This chart does not include vacant land or VACANT LAND = 1,057 tax exempt properties.

3 www.cookcountyboardofreview.com BUDGET HIGHLIGHTS

BOR Actual Expenditure

9.0

8.0

7.0

6.0

5.0

4.0

3.0 BOR ACTUAL EXPENDITURE (IN MILLIONS) BOR ACTUAL

2.0

1.0

0.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FISCAL YEAR ACTUAL EXPENDITURE NEW COOK COUNTY This year, mandated budget cuts ($ MILLION) ACCOUNTING impacted our ability to complete review of 2007 6.8 appeals on time. The Cook County Board cut $1.2 M from our budget forcing a 2008 7.3 reduction in staff which extended the 2009 7.5 2017 session almost a month later than the previous 6 years. 2010 8.1

2011 7.0 Note: The 2017 assessment year corresponds to the later part of the 2017 fiscal year and 2012 7.8 the beginning portion of the 2018 fiscal year.

2013 8.3 The BOR fiscal year runs from Dec 01 thru Nov 30. 2014 8.3

2015 8.5 *Cook County made a budget change in their accounting to have offices directly 2016 8.8 11.4* responsible for more budget items such 2017 10.2 as health benefits.

Cook County Board of Review 4 EMPLOYEES AND APPEALS

Employee Numbers, Appeal Numbers and PINS

550

500

450 (in hundreds)

400

350

300 /EMPLOYEES /EMPLOYEES 250

200

150

(in thousands) 100

50 0

PINS FILED 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EMPLOYEES 126 123 122 118 119 124 125 125 125 130* 111 APPEALS 125 128 159 158 146 152 175 162 184 208 228 PINS 277 295 439 386 342 423 403 319 476 422 361

ASSESSMENT EMPLOYEES APPEALS PINS FILED EMPLOYEES YEAR IN THOUSANDS IN THOUSANDS APPEALS 2007 126 125 277 TOTAL PINS FILED

2008 123 128 295

2009 122 159 439

2010 118 158 386 Despite a 19% staff reduction due to mandated budget cuts, 2011 119 146 342 the BOR successfully reviewed 2012 124 152 423 and adjudicated all 360,700 pins for assessment year 2017. 2013 125 175 403

2014 125 162 319

2015 125 184 476 *BOR was budgeted to add 5 new 2016 130* 208 422 positions for PTAB mid-year making a total of 130 employees, however, due 2017 111 228 361 to County budget constraints we were unable to hire the additional staff.

5 www.cookcountyboardofreview.com OPERATIONAL HIGHLIGHTS

Total PINS and Appeals Filed Assessment Years 2006–2017*

400

350

300

250

200

150

100 AVERAGE FILED IN THOUSANDS AVERAGE

2006–2008 PINS 273 2009-2011 2012-2014 APPEALS 116 PINS 389 APPEALS 154 PINS 382 2015-2017 APPEALS 163 PINS 419 APPEALS 207

ASSESSMENT PINS FILED APPEALS FILED REASSESSMENT YEAR IN THOUSANDS IN THOUSANDS TRIENNIAL

2006 247 94 CITY The BOR adjudicated 228,380 2007 277 125 NORTH SUBURBAN property complaints 2008 295 128 SOUTH SUBURBAN for tax year 2017.

2009 439 159 CITY *The Cook County Assessor’s Office 2010 386 158 NORTH SUBURBAN cycles reassessments between the 2011 342 146 SOUTH SUBURBAN north suburbs, City of Chicago, and south suburbs. This bar chart 2012 423 152 CITY reflects the triennial cycle starting with year 2006 to better illustrate 2013 403 174 NORTH SUBURBAN year-to-year trends. 2014 319 162 SOUTH SUBURBAN

2015 476 184 CITY 2016 422 208 NORTH SUBURBAN See CCAO Triennial Assessment 2017 360 228 SOUTH SUBURBAN Cycle Map page 14.

Cook County Board of Review 6 APPEALS RESULTING IN A REDUCTION

Appeals Resulting in a Reduction Assessment Years 2006–2017*

70.00%

60.00%

50.00%

40.00%

30.00%

20.0%

10.0%

0 AVERAGE APPEALS (PINS) RESULTING IN A REDUCTION APPEALS (PINS) RESULTING AVERAGE 2006-2008 2009-2011 2012–2014 2015-2017 66.5% 68.2% 61.6% 63.7%

ASSESSMENT APPEALS RESULTING YEAR IN A REDUCTION

2006 61.1% RESIDENTIAL NON-CONDO 2007 72.6% NUMBER OF APPEALS FILED 2008 65.8% 115,159 vs 56,999 2009 75.6% ATTORNEY VS PRO SE 2010 67.3% 2011 61.7% 61% vs 71% 2012 64.4% ATTORNEY VS PRO SE CHANGE 2013 61.8% 2014 58.6% 65% 47% RESIDENTIAL CHANGE COMMERCIAL CHANGE 2015 64.1% 2016 64% * The Cook County Assessor’s Office cycles reassessments between the City of 2017 63% Chicago, and the north and south suburbs. This bar chart reflects the triennial cycle starting with year 2006 to better illustrate year-to-year trends.

7 www.cookcountyboardofreview.com PTAB APPEALS

The BOR and Illinois Property Tax Appeal Board (PTAB) share a symbiotic relationship. The mandate of each entity is to provide taxpayers with an unbiased forum for appealing assessments at no cost to the property owner. PTAB is a forum to appeal the BOR’s decision.

PTAB Defense Division The purpose of the recently created PTAB Defense Division at the BOR is to defend the County’s assessment decisions full-time. PTAB does not have a yearly session so the division is focused year round on defending final assessment decisions, tackling the volume of cases, and addressing the four year backlog which helped create this potential tax refund liability. The Board successfully defended cases saving $156 million of refunds last year. The Board is building and expanding on this success to keep even more money for schools and government services. We continue to digitize our PTAB process and documents. Last summer, the Illinois PTAB office launched a new scanning system in which they began electronically transmitting unindexed PDF files of appeal notices transitioning from mailing paper copies. Due to both the size and unorganized nature of the PTAB files, the BOR was tasked with integrating the PTAB documents into its existing Digital Appeals Processing System (DAPS). The BOR’s IT team developed a custom solution which filtered and then properly indexed the PTAB dockets by class and property type and developed workflow to direct dockets to the Cook County Assessor’s Office for Commercial valuation evidence preparation and BOR staff for Residential valuation evidence preparation. Upon completion of the evidence preparation, these documents are electronically transmitted to PTAB. The PTAB DAPS workflow allows management to monitor workflow as it relates to critical dates and deadlines. Approximately 7-10% of BOR appeals go to PTAB annually. When a BOR decision is upheld, taxing bodies and Cook County residents save money.

Fiscal Year 2016: TAX DOLLARS SAVED $156 MILLION the difference between assessment reductions requested by appellants and reductions granted by PTAB.

2016 PTAB Caseload

DOCKETS DOCKETS FOR 20,311 CLOSED 4,014 HEARINGS

PTAB 97 HEARING DAYS

Cook County Board of Review 8 EXEMPT PROPERTIES & THE BOR

The BOR examines applications from governmental, charitable and religious organizations that believe they meet the qualifications for property tax exempt status. The requirements for property tax exempt status can vary. The BOR examines each case to determine whether the property is specifically exempt by statute and whether the property owner has met the required burden of proof. The BOR may hold a hearing in cases involving a question of law, an incomplete file, or when a taxing body objects to an application. In either case, petitioners are notified by mail of their hearing date. Following the hearing, a recommendation on exempt status is sent to the Illinois Department of Revenue. While the BOR makes a recommendation, only the State of Illinois can remove property from the property tax roll. In assessment year 2017, the BOR processed 1,928 exempt parcels requesting exempt status.

Exempt PINs Filed*

3000

2500

2000

1500

1000

500 AVERAGE TOTAL EXEMPT PINS FILED TOTAL AVERAGE 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FISCAL YEAR TOTAL PINS

2006 2,654 2007 2,404 2008 2,807 2009 1,946 2017 TOTAL APPEALS 2010 1,367 GOVERNMENTAL 693 2011 1,276 RELIGIOUS/CHARITABLE 380 2012 1,246 TOTAL 1,073 2013 1,911 2014 1,017 2015 1,017 2016 1,694 2017 1,928

9 www.cookcountyboardofreview.com 2017 TAX YEAR OUTREACH EFFORTS

Through the BOR’s community outreach programs, the BOR brings assessed valuation complaint services to the community. During the 2017 assessment year, our office conducted 134 outreach events and serviced thousands of taxpayers throughout Cook County. The main focus is to educate and inform taxpayers of the BOR’s services and to explain the assessed valuation appeal process. Our outreach programs have proven to be a viable and effective way to provide the community with important information and to provide transparent access to this office. The recent Civic Consulting Alliance (CCA) report dutifully noted the underserved communities as a whole are over assessed leading to regressivity in the Cook County Assessor’s Office assessment model. Per the CCA report, owners of lower value homes contest their assessments at a lower rate than owners of higher value homes. As it has for many years, the BOR provides transparent access to the assessment appeal process via its Outreach programs. This has proven to be an invaluable vehicle in bridging the gap between the rich and poor homeowners. The BOR is fortunate to have the continued support for our respective outreach initiatives from elected officials and community organizations throughout Cook County. The BOR has partnered with several elected officials and community organizations whose support has played an integral role in making the BOR more accessible to taxpayers.

2017 Outreach

MICHAEL CABONARGI

LARRY ROGERS, JR.

Cook County Board of Review 10 DID YOU KNOW? BOARD OF REVIEW

OF WHICH CREATED 360,700 87% 91% AN ONLINE ACCOUNT PINS FILED PINS FILED ONLINE

The BOR is administered by 2017 tax year marks the THREE COMMISSIONERS SEVENTH TIME who are elected from individual districts. since tax year 1977 that the The chairmanship of the BOR rotates among second installment tax bills have been the three Commissioners every year. MAILED OUT ON TIME.

The BOR is especially well equipped to assist taxpayers because of the MULTILINGUAL STAFF and documentation. We are currently able to assist taxpayers in Albanian, Mandarin, Cantonese, French, German, Greek, Hindi, Italian, Romanian, Serbian, Spanish, Polish, Punjabi, and Yoruba.

DID YOU KNOW? COOK COUNTY 1.8 M 5.2 M 1,635 PARCELS OF PROPERTY RESIDENTS IN SQUARE MILES IN COOK COUNTY COOK COUNTY

Cook County has the largest WATER RECLAMATION FACILITY in the world located in Stickney, IL. The plant processes 1.2 billion gallons of wastewater per day.

11 www.cookcountyboardofreview.com CCAO TRIENNIAL ASSESSMENT CYCLE CCAO Triennial Assessment Cycle

6 5 4 3 2 1 6 5 4 3 2 1 6 5 4 3 2 1 6 5 34 2 1 6 5 7 98 10 11 12 7 8 9 10 11 12 7 8 9 10 11 12 7 8 9 10 11 12 7 8 15 15 15 15 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 18 17 16 PALATINE WHEELING 01 23 02 03 04 22 20 19 20 21 22 24 19 20 21 23 24 19 20 21 23 24 19 20 21 23 24 19 22 22 21 BARRINGTON NORTHFIELD 22 05 28 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 28 27 26 25 30 29 27 NEW TRIER 26 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 0 3 2 1 6 5 4 6 5 4 321 6 5 4 9 10 11 12 7 8 9 10 EVANSTON 7 11 12 7 8 9 10 11 12 7 8 8 9 10 11 12 18 7 8 9 10 11 12 7 15 16 15 18 17 16 15 14 13 18 17 16 15 14 13 13 18 17 13 18 17 SCHAUMBURG 14 14 20 18 17 16 15 14 13 18 ELK GROVE 22 19 16 MAINE 23 24 19 21 23 24 20 22 20 21 22 23 24 19 21 NILES 21 23 24 19 20 09 22 10 HANOVER 06 23 24 19 20 07 08 11 19 20 21 22 25 30 29 28 27 26 25 29 30 29 28 27 26 30 26 25 30 29 28 27 26 25 0 0 30 29 28 27 0 032 30 29 28 27 26 25 0 33 ROGERS PARK 36 0 34 35 32 33 34 35 31 0 36 31 32 36 31 32 33 34 35 36 31 32 33 34 35 31 32 33 34 35 36 31 0 3 6 2 1 6 5 5 4 3 2 1 5 6 JEFFERSON 10 7 8 9 10 11 12 7 8 7 8 9 11 12 9 15 City Tri (2012, 2015, 2018) 0 NORWOOD PARK 16 14 13 18 17 16 16 70 Hyde Park 18 17 15 14 13 18 17 13 20 71 Jefferson 12 19 20 21 23 24 19 14 19 20 21 23 24 22 21 72 Lake 22 0 21 73 Lakeview 25 30 29 28 27 26 25 30 LAKE VIEW 30 29 LEYDEN 26 29 28 28 74 North Chicago 28 27 27 33 75 Rogers Park 34 35 36 31 32 33 33 34 35 36 31 32 33 34 76 South Chicago 31 32 2 NORTH 77 West Chicago 1 6 5 4 3 2 1 6 5 6 5 4 3 4 3 RIVER FOREST 8 11 12 10 North Tri (2013, 2016, 2019) 9 10 7 8 9 7 8 9 10 11 12 OAK PARK WEST 10 Barrington 7 15 17 16 16 Elk Grove 15 13 18 15 18 17 16 14 13 18 17 16 14 17 Evanston PROVISO 16 17 22 18 Hanover 15 20 21 23 24 19 20 21 23 24 19 20 21 20 Leyden 19 22 22 22 Maine CICERO 26 25 30 29 28 27 29 28 27 26 25 BERWYN 27 23 New Trier 30 29 28 SOUTH RIVERSIDE 30 24 Niles 33 34 35 36 31 32 33 34 35 33 34 31 32 25 Northfield 31 32 35 36 3 26 Norwood Park 4 3 2 1 6 5 4 2 4 3 2 1 6 5 29 Palatine 6 5 1 8 9 10 11 35 Schaumburg 7 8 9 10 11 12 7 12 7 8 9 10 11 12 38 Wheeling 16 15 13 15 14 15 17 16 14 13 18 17 13 17 16 14 13 18 South Tri (2014, 2017, 2020) 18 19 20 23 11 Berwyn LYONS 18 20 21 23 24 19 20 24 21 23 24 19 22 21 22 19 12 Bloom 19 20 22 29 26 25 30 13 Bremen 30 27 26 25 30 29 28 27 29 28 27 26 25 LAKE 14 Calumet 30 29 STICKNEY 28 34 35 36 21 32 15 Cicero 33 34 35 36 31 32 33 33 34 35 36 31 32 31 19 Lemont 31 32 4 3 2 1 6 21 Lyons 5 4 3 2 1 6 5 5 5 4 3 2 1 6 27 Oak Park 6 HYDE PARK 10 28 Orland 8 9 10 11 12 7 8 9 11 12 8 9 10 11 12 7 7 8 30 Palos 12 7 11 15 16 15 14 31 Proviso 15 17 16 14 13 18 17 17 16 14 13 18 13 18 32 Rich 14 13 18 17 15 WORTH 26 16 PALOS 24 20 21 25 33 River Forest 23 19 20 23 24 19 19 23 24 21 22 23 24 19 20 34 Riverside 19 20 21 22 23 24 20 21 22 22 25 30 29 28 36 Stickney 25 30 29 28 27 26 27 26 25 30 29 LEMONT 26 25 30 29 28 27 26 37 Thornton 29 30 28 22 27 CALUMET 39 Worth 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 32 31 32 33 34 35 36 6 6 5 4 3 2 1 6 5 4 3 2 1 5 4 3 2 1 6 5

7 8 9 10 11 12 City Tri (2012, 2015, 2018) 7 8 9 10 11 12 7 8 9 10 11 12 7 8 15 15 15 18 17 North Tri (2013, 2016, 2019) 18 17 16 14 13 18 17 16 14 13 18 17 16 14 13 ORLAND 27 BREMEN 28 THORNTON 29 30 19 20 21 23 24 19 20 21 23 24 19 20 21 23 24 South Tri (2014, 2017, 2020) 22 22 22 19 20 29 Area 30 29 28 27 26 25 30 28 27 26 25 30 29 28 27 26 25 30 29 32 Sections 31 32 33 34 35 36 31 32 33 34 35 36 31 32 33 34 35 36 31 Hydroline 6 5 4 3 2 1 6 5 4 3 2 1 6 5 Lake Michigan 7 8 9 10 11 12 7 8 9 10 11 12 7 8 18 17 15 16 15 Interstate Highway 18 17 16 14 13 18 17 14 13 5 RICH BLOOM 32 33 19 20 21 31 23 24 19 20 21 23 24 22 22 19 20

30 29 28 27 26 25 30 29 28 27 26 25 30 29 0 2 4 8 12 36 31 32 33 34 35 36 31 32 Miles 31 32 33 34 35