6.1 SR 02-07-2022Request for Action
To Item Number
Mayor and City Council 6.1
Agenda Section Meeting Date Prepared by
Presentations, Awards, & February 7, 2022 Tina Allard, City Clerk
Recognition
Item Description Reviewed by
Market Value Presentation: Sherburne County Cal Portner, City Administrator
Assessor Michelle Moen
Reviewed by
Action Requested
Receive Information.
Background
Sherburne County Assessor Michelle Moen will be in attendance to provide an update regarding the aggressive
market trends her office has seen in the past year and how it will impact values for the 2023 tax year (2022
assessment).
Annually the assessor’s office sends out the valuation notices to property owners in March with the Local Board of
Appeal meeting scheduled for April. Because of the higher increase in values due to sales, having this information
in advance should help with responding to calls received this spring.
Financial Impact
N/A
Mission/Policy/Goal
Mission and vision
Attachments
Property Assessment in an Appreciating Market
2022 Assessment – Market Trends Countywide
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
Valuation Date ILLUSTRATION**SEE REVERSE FOR January of 2022.as of $360,000closer to would also indicate a value in July of 2021 $330,000A purchase price of .22January of 20as
of 0,0006$3closer to would indicate a value 2120in January of 00,000$3 A purchase price of in your area:% 20say ,the market appreciatedJanuary 2 of each year. If The assessment
date is How is that possible?”,000. 06it’s worth $3saying now you’re and 0,000 for my home $30Wait a second, I paid “ “most likely” price. resulting in an indicated value, ora consideration
of many sales, on an individual sale, but rather he assessed value is not based T properties. many similar sale transactions ofvalue all properties based on the appraisal techniques
seek to . Mass every day deals occurring “bad”and “good”perceived preferences. This results in least in part, on their own purchase property based, at It’s also true that people
an Individual SaleAppraisal Isn’t Based on Mass date and the assessment date.have occurred between the sale appreciation that may given to with consideration edzanalyassessment
date must be Sales occurring prior to the . greater than experienced , gains significantn seeCounty has herburneestate market in SOver this past year the real Market Appreciating
properties.milar estimating the value of siused as comparable sales in sales ratio studies, nor are they transactions and are not used in length -market, arm’s-openundue duress are
not considered seller or buyer are acting under relatives, or sales where the as foreclosures, sales between of the market. Some sales, such Not all sales are representative ncludedNot
All Sales I .21September of 20d an 20between October of 20 considers sales that occurredassessment the assessor 22For the January 2, 20 Sales Study Period . 2320utilized in the calculation
for 22January 2, 20estimated propincluded an Valuation Notice 2220The recently mailed
$300,000Jan-22DecNovOctSepAugJulJunMayAprMarFebJan-21$370,000$360,000$350,000$340,000$330,000$320,000$310,000$300,000$290,000$280,000$270,000$360,000$330,000
EXAMPLE
Consider a Market Where Property Values
Appreciated 20% over the Past Year
ASSESSMENT
SALE 2
SALE 1
SHERBURNE COUNTY ASSESSOR
Michelle Moen, S.A.M.A.
Sherburne County Assessor’s Office
13880 Business Center Drive NW
Suite 100
Elk River, MN 55330
(763) 765-4900
1-800-438-0577
2022 Assessment – Market Trends County-wide
Residential/Seasonal Improved
Sherburne County Residential/Season Ratio prior to market changes – 76.57% - 1,544 Sales total
*This includes a time adjustment of 16.33% off water and 20.99% on water
County Ratio for Residential/Seasonal improved properties after all market increases - 93.3%
This is the data reported to the State in the spring
Increased 18-25% on Residential/Seasonal depending on jurisdiction
*Time Adjustment is used to keep all sales current with the market
EX: If a property sold in January 2021 – we need to adjust that sale to bring the sale to current
market conditions. That same sale in theory would sell for more if sold in September of 2021.
Sherburne County – Median Sale Price – Residential/Seasonal $345,100
Sherburne County – Median EMV – Residential/Seasonal $325,100
Commercial/Industrial
Commercial Ratio – prior to market changes – 82.35% - 14 Sales
Industrial Ratio – prior to market changes – 80.49% - 3 Sales
Commercial Ratio – after market changes - 92.4% - 14 Sales
Industrial Ratio – after market changes – 90.4% - 3 Sales
*Increased Industrial, Warehouse, Mini-Storage and offices County-wide average 10%
Apartments
Ratio prior to market changes – 76.55% - 4 Sales
Ratio after market changes – 90.00 – 4 Sales
14% average market increase on Apartments
Agriculture
Agriculture Ratio – prior to market changes – 65.5% - 16 Sales
This includes a time adjustment of 13.84% - have not seen a time trend in years for Agriculture
Agriculture ratio- after market changes - 92.9% - this is reported to the State in the spring
Average market increase - 28%
Green Acres Tillable – no change Non-Tillable increased $200 per acre
*This value set by the State