2.0 SR BOARD OF APPEAL 04-27-2020
Request for Action
To Item Number
Mayor and City Council
Agenda Section Meeting Date Prepared by
Board of Appeal April 27, 2020 Jessica Miller, Deputy Clerk
Item Description Reviewed by
Board of Appeal and Equalization Meeting Tina Allard, City Clerk
Reviewed by
Cal Portner, City Administrator
Action Requested
1. Each appeal will be reviewed. The Board is asked to listen to the appeal and then make a
determination regarding the value or classification of the parcel being considered.
If the Board is faced with a decision it is not sure how to vote, the decision should be a “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. The last date to schedule a reconvene meeting would be Saturday, May
16. There is a Council meeting scheduled for Monday, May 4.
Background/Discussion
Board Purpose
The Board’s purpose is to objectively determine if values and classifications of parcels has been properly set
by the assessor and should keep in mind that reductions in value shift the tax burden to others. It is assumed
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 cannot reconvene. Reconvene meetings are limited to appeals and not for
hearing a property owner’s initial appeal.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
For a refresher or more detail you can download the Local Board of Appeal and Equalization Handbook at:
https://www.revenue.state.mn.us/sites/default/files/2019-
12/Appeal%20and%20Equalization%20handbook.pdf
Financial Impact
N/A
Attachments
Assessor’s Report
Year End Summary – 2020 Assessment
Agricultural Report
N:\\Public Bodies\\Agenda Packets\\04-27-2020 BOA\\xsr Board of Appeal.docx
Sherburne County Assessor
Sherburne County Government Center
13880 Business Center Dr NW
Elk River, MN 55330-1692
Phone: (763)765-4900
FAX: (763)765-4905
2020 ELK RIVER CITY ASSESSMENT
Spring PRISM Report
Residential and Seasonal values increased in overall market value by approximately 5.2%. The property
value increases are the result of 351 sales in the City and 1,329 sales County-wide.
Assessment Years
2016 386 sales 89.3% x 1.041% = 92.93% adjusted ratio
2017 346 sales 88.4% x 1.057% = 93.43% adjusted ratio
2018 404 sales 85.8% x 1.096% = 94.04% adjusted ratio
2019 399 sales 87.02% x 1.065% = 92.67% adjusted ratio
2020 351 sales 88.9% x 1.058% = 94.0% adjusted ratio
Apartments increased county wide by 7.26%
Commercial and Industrial County-wide there were 10 sales, 7 Commercial and 3 Industrial. Our combined
median ratio started as 100% and final ratio is 94.4%
Total Taxable New Construction
Assessment Years
2016 $ 28,093,805
2017 $ 18,842,026
2018 $ 32,528,500
2019 $ 43,506,513
2020 $ 45,481,884
Total City Estimated Market Values Taxable Real Property
Assessment Years
2016 $ 2,009,030,900
2017 $ 2,119,094,900
2018 $ 2,313,310,000
2019 $ 2,486,129,500
2020 $ 2,658,483,400
Elk River Local Board of Appeal and Equalization
April 27, 2020 6:00 pm
Elk River Year End Summary – 2020 Assessment
Re-Assessment
Beth and Krista re-assessed 1858 single family homes, townhomes and condominiums. This
number meets our goal of re-assessing 20% of all residential properties each year.
Letters were sent to re-assessment areas to inform the homeowners that their property would be
re-assessed. 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 117 permits issued for new single-family homes and townhomes. There were an
additional 268 permits issued for improvements to properties such as additions, decks and
basement finish. Improvements were measured, photos taken, and inspections were completed.
Residential Statistics 2019 2018 2017
New Homes 117 163 113
Improvement Permits 268 299 283
Good Sales 351 399 404
Bad Sales 273 146 147
Total Sales 624 545 551
Avg Sale Price $259,307 $256,328 $253,824
Avg Assessed Value $250,459 $245,964 $233,396
Beginning Sales Ratio 88.9% 87.02% 85.8%
Ending Sales Ratio 94.0% 92.67% 94.04%
Change Overall +5.61% +6.58% +9.6%
State Time Adjustment +5.75% +7.06% +7.74%
Apartment Sales 0 0 1 (24 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, 2018 to September 30, 2019 were used to determine the
Estimated Market Value for the January 2, 2020 Assessment. The Minnesota Department of
Revenue requires the Assessor to maintain a ratio of 90% to 105%. The final sales ratio for the
2020 assessment is 94.0%.
Residential Sales
There was a total of 624 residential sales in Elk River that occurred between October 1, 2018 and
September 30, 2019. Of that number, 351 sales were considered “good” sales that were included
in the Department of Revenue Sales study for the 2020 assessment. The average sale price was
$259,307 with an average assessed value of $250,459. An additional 273 sales were not used.
These were rejected for such reasons as new construction/physical change, foreclosures/bank
sales, and sales between related parties.
Vacant Land/Lot Sales
There were 32 vacant land/lot sale transactions from October 1, 2018-September 30, 2019. This
included 2 transactions for new plats (Riverplace 2nd, Lawatsch Farms) and 20 individual sales of
single-family platted lots with an average sale price of $70,335. Five of the sales were tax
forfeited parcels.
Residential Building Changes
Increases were made to the house schedule to raise the level of assessment. Following the market
indications, lower value “entry level” homes received greater increases than higher end
“executive” homes and split and rambler style homes saw a larger increase than two story homes.
Residential Land Changes
Base rates for residential lots/land were increased 15%. Neighborhood modifiers were reviewed
city wide and inequities were addressed through upward or downward adjustments.
Rural Vacant Land increased 10% to Woods/Pasture/Tillable
Ag Building Changes
Ag house and garage increases followed the residential building schedule.
2020 City of Elk River
Local Board of Appeal and Equalization
April 27, 2020
The 2020 methodology utilizes agricultural sales within a region to develop a tillable and non -
tillable value to be used for Green Acres in that area. Our Green Acres Region includes the
Counties of Anoka, Chisago, Isanti and Sherburne. The Department of Revenue issued a memo
which indicated that the average per acre value for tillable land was to be $3,300 (no change from
2019 values) and the average for non -tillable was to be $1900 (no change from 2019 values).
Township Averages as Reported to the Department of Revenue for the 2020 Assessment
2020 Estimated Market Values
2a Tillable 4200/ac
2a/2b Pasture 4100/ac
-Same values have been applied to Rural Preserve and CRP land
Waste 750/ac
Wetlands 750/ac
2020 Green Acres Values
2a Tillable 3300/ae
2a Pasture 2200/ac
Waste 750/ac
-Same values have been applied to Rural Preserve and CRP land