4. SR 04-13-2015Template Updated 4/14
Request for Action
To
Mayor and City Council
Item Number
Agenda Section
Board of Appeal
Meeting Date
April 13, 2015
Prepared by
Tina Allard, City Clerk
Item Description
Board of Appeal and Equalization Meeting
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
1. Sherburne County will call upon each property owner. The Board is asked to listen to the property
owner and then make a determination regarding the value or classification of the parcel being
considered.
If the Board is faced with a decision that it is not sure how to vote, the decision should be “no
change.” The property owner is then able to appeal to the County Board or the Tax Court.
2. If the Board determines further review of any parcels by the assessor are needed, a reconvene
meeting must be set in order for the assessor to report back to the Board for further action. The
date and time must be determined before the recess of this meeting. The date must be set within 20
days of this meeting. This timeline would be Tuesday, April 14 through Sunday, May 3. There is a
Council meeting scheduled for April 20.
Background/Discussion
Board Purpose
The Board’s purpose is to objectively determine if 2015 values and classifications of parcels has been
properly set by the assessor. Keep in mind that reductions in value shift the tax burden to others. It’s
assumed that the assessor has properly valued and classified a property and the burden of proof rests with
the property owner who must present factual evidence to disprove the assessor’s value or classification.
All changes made by the Board must be based on fact.
Reconvene Meeting
The Board should not order the assessor to review a parcel and change the valuation/classification and
then adjourn. The Board may ask the assessor to review a parcel and report back to the Board at a
reconvene meeting. All issues must be resolved before the meeting is adjourned. If issues still need to be
considered, the Board should recess until the next meeting.
Once the Board has adjourned, it can’t reconvene. Reconvene meetings should be limited to appeals and
not for hearing a property owner’s initial appeal.
For a refresher, you can download the Local Board of Appeal and Equalization Handbook or a
PowerPoint presentation from the Department of Revenue at:
N:\Public Bodies\Agenda Packets\04-13-2015\xStaff Report 2015.docx
Handbook
http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/baetraining_handbook.pdf
PowerPoint Presentation
http://www.revenue.state.mn.us/local_gov/prop_tax_admin/education/baetraining_presentation.pdf
Certification
At least one Councilmember must be at this meeting who attended state required training.
Councilmember Westgaard is certified to July 1, 2017 and Councilmember Wagner is certified to July 1,
2018.
Financial Impact
N/A
Attachments
None
- arcj�
Elk River Local Board of Appeal and Equalization
April 13, 2015 6:00 pm
Elk River Year End Summary — 2015 Assessment
Re- Assessment
Kristi, Cindy and Greg re- assessed 1,933 properties out of 8,399 parcels, meeting our goal of
20% of the area. Letters were sent to re- assessment areas to inform the homeowners that their
property would be re- appraised. Drawings were updated, new photos taken, and inspections of
homes were completed. Depreciation was applied to buildings as necessary. Value was added
for all improvements that were not currently listed on the assessment.
Permits
There were 62 permits issued for new single family homes and 6 for new townhomes. There
were an additional 177 permits issued for improvements to properties such as additions, decks
and basement finish. Improvements were measured, photos taken, and inspections were
completed.
Residential Statistics
2014
2013
2012
New Homes
68
87
37
Improvement Permits
177
242
200
Good Sales
292
208
137
Bad Sales
132
213
243
Total Sales
424
421
380
Ave Sale Price
$207,214
$205,524
$180,500
Ave Assessed Value
$189,815
$190,281
$172,400
Beginning Sales Ratio
85.9%
84.6%
93.0%
Ending Sales Ratio
92.2%
91.09%
95.41%
Change Overall
+6.09%
+7.67%
+2.59%
State Time Adjustment
8.06%
+8.4%
none
Apartment Sales
1(30 unit)
2 (8, 30 unit)
3 (24, 54, 16 unit)
Sales Ratio Studies
Sales ratio studies compare the Assessor's Estimated Market Value to the sales price of the
property. Sales from October 1, 2013 to September 30, 2014 were used to determine the
Estimated Market Value for the January 2, 2015 Assessment. The Minnesota Department of
Revenue requires the Assessor to maintain a ratio of 90% to 105 %. The sales ratio for the 2015
assessment is 92.2 %.
Residential Sales
There were a total of 424 residential sales in Elk River that occurred between October 1, 2013
and September 30, 2014. Of that number, 292 sales were considered `good' sales that were
included in the Department of Revenue Sales study for the 2015 assessment. The average sale
price was $207,214 with an average assessed value of $189,784. There were an additional 132
`bad' sales that were not used. These were rejected for such reasons as foreclosures, sales to
relatives, and relocations.
Vacant Land/Lot Sales
There were 66 vacant land sales in 2014 with an average sale price of $39,400. This compares to
71 vacant land sales in 2013 with an average sale price of $32,200.
Residential Building Changes
Increases were made to raise the level of assessment. The house and garage building schedule
was increased by 7 %.
Residential Land Changes
Land values on existing homes were increased 7% to the base rates.
Rural Vacant Land: Base rates are unchanged, ($4100 to $4500 per acre).
Ag Building Changes
Ag house and garage increased 7% with the residential building schedule.
Apartments
Elk River has 39 Apartment projects with 1214 apartment units. A new 52 unit apartment
building, Coachman Ridge, was started in 2014. When this is completed Elk River will have 40
apartment projects with a total of 1266 units. The overall change for apartments increased
4.18 %.
Oar o.-A-
Sherburne County Assessor
Sherburne County Government Center
13880 Business Center Dr NW
Elk River, MN55330 -1692
Phone: (763)765 -4900
FAX. (763)765 -4905
2015 ELK RIVER CITY ASSESSMENT
Residential values increased in overall market value by approximately 6.09 %. The property value increases
are the result of 292 sales used in our sales ratio study. (Assessed value divided by sale price equals sales
ratio)
$ 6,785,600
2012
Assessment
Years
$ 8,656,700
2011
128 sales
99.4% Beginning Ratio adjusted by -7.41 %
2012
85 sales
113.4% Beginning Ratio adjusted by - 11.25%
2013
137 sales
93.0% Beginning Ratio adjusted by +2.59%
2014
208 sales
84.6% Beginning Ratio adjusted by +7.67%
2015
292 sales
85.9% Beginning Ratio adjusted by +6.09%
Agricultural Values increased approximately 1.16 %.
Apartment values increased approximately 4.18% (1 Sale)
Commercial /Industrial values combined decreased approximately - 3.18 %. There were 2 Commercial sales
and 1 Industrial sale.
Total Taxable New Construction
Assessment Years
2011
$ 6,785,600
2012
$12,562,700
2013
$ 8,656,700
2014
$20,085,400
2015
$17,354,782
Total City Estimated Market Values
Assessment Years
2011 $1,873,410,300
2012 $1,721,462,200
2013 $1,728,439,800
2014 $1,838,493,300
Taxable Real Property
2015 $1,885,011,600 (spring mini abstract)
INQASMHST Assessment History
Data Set: PRD Production
Parcel /Acct:
75- 681 -0310
Taxpayer: DAHL, DENIS & GINA M
Type options,
press Enter.
1= Assessment
Summary
Asmt ------------
- - - - --
Taxable ---------------
-
Opt Year
Est Land Dfr Land
Imprvmnts
Total EMV
_ 2015
48,500
270,100
318,600
_ 2014
45,700
241,300
287,000
_ 2013
42,000
223,700
265,700
_ 2012
42,000
211,300
253,300
_ 2011
48,200
234,300
282,500
_ 2010
59,000
240,800
299,800
_ 2009
65,000
246,200
311,200
_ 2008
65,000
279,300
344,300
4/13/15
18:21:52
New Imp
More...
Press Enter to continue or enter new parcel /tax year: 75- 681 -0310 2016
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2015 Elk River Board of Appeal and Equalization
April 13th, 2013
Recommendations from County Assessor
For changes to the 2015 Assessment
HICKEY, THOMAS J & LAURA A
501 MAIN ST NW
ELK RIVER MN 55330
LEGAL DESCRIPTION: LOTS 1,2 & 3, Blk 14
SEC /TWP /RGE : 34 33.0 26
ACRES: .43
PROPERTY TYPE: COMMERCIAL
2015 Original
Land $ 91,500
Building $ 326,500
Total $ 418,000
P.I.N. 75- 405 -1410
405 Village (Elk River)
2015 Suggested Change
Land $ 73,200
Building $ 326,500
Total $ 399,700
Reduction: $18,300 Land Decrease ( -$1.00 per sq. ft.).
Reason: With the close proximity to the railroad tracks, a decrease to the land value is
equitable with surrounding properties.