HomeMy WebLinkAbout8A - Public Hearing to Conduct Board of Appeal and Equalization
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
CITY COUNCIL AGENDA REPORT
May 5, 2008 \~
:~nk Boyles, City Manag~
PUBLIC HEARING TO CONDUCT BOARD OF APPEAL AND EQUALIZATION.
AGENDA ITEM:
INTRODUCTION: The purpose of this agenda item is to have the City Council sit as the Board of
Appeals and Equalization for 2008 assessed property values.
DISCUSSION:
Historv: Minnesota Statutes provide that the County or City Council can sit as the
local Board of Appeals and Equalization, also known as the Board of Review.
The City Council has decided it wishes to fulfill this function rather than delegate
it to the County.
Current Circumstances: The Board of Review this year is scheduled for Monday,
May 5, 2008, at 7 p.m. in the City Council Chambers. Mike Thompson,
Assessor, will be present to assist the City Council in conducting the Board of
Review hearing. In accordance with state statute, notice of the hearing has been
posted, published and sent to property owners with their statement of 2008
valuation.
Conclusion: The Council should review the attached report and information
sheets provided by the Scott County Assessor's office, to familiarize itself with
appraisal and valuation related issues. A sign-up sheet will be distributed for
those who wish to address the Board of Appeals and Equalization. The Mayor will
open the hearing at 6 p.m. or a soon as possible thereafter. I will provide a brief
overview of the purpose of the hearing process. Schmidt will give the report. The
Mayor will make any letters the City has received part of the formal record of the
hearing and ask the Assessor to evaluate and provide a written response to the
Council. Each property owner present will have the opportunity to state their
concerns about the valuation of his/her property as of January 2, 2008. If there
are questions requiring additional research, the Scott County Assessor staff will
prepare a report and provide it to the City Council sitting as the Board of Review
prior to May 26, 2008, when the Board will meet to take final action. After all
appeals are heard, the City Council, acting as the Board of Appeals and
Equalization, should close the hearing and accept the Assessor's appraisals for
2008 to the extent they agree with them. If the Scott County Assessor office is
conducting additional research, the Board should continue the Board of Review
hearing until the May 19, 2008, Council meeting.
ISSUES:
The only issue before the City Council sitting at the Board of Appeals and
Equalization is the valuation placed upon each parcel by the County Assessor as
www.cityofpriorlake.com
M\COUNCIL\AGENDA REPORTS\2008\050508 bcpfja~~~.cIf4ll}1~i9ffi'J@09 Fax 952.447.4245
of January 2, 2008. Property owners received their valuation notice in April 2008.
A property owner wishing to contest his or her valuation must do so in person or
in writing at the Local Board of Appeal and Equalization hearing. Citizens wishing
to perfect their appeal may do so this evening by submitting a written letter to the
Mayor prior to the meeting or by making comments and providing a written
statement at the meeting. This will allow the property owners who believe they
are aggrieved by the valuation to continue the appeal process to the County and
eventually the court system should they desire.
ALTERNATIVES: 1. Conduct the public hearing, close the hearing and take action to affirm the
appraisals of the Scott County Assessor.
2. Conduct the public hearing, close the public hearing and direct the Scott
County Assessor to prepare a report for consideration at the May 19, 2008,
meeting.
RECOMMENDED
MOTION:
If the concerns of all persons present can be addressed at the May 5 meeting,
then Alternative #1 is appropriate. If it is necessary for the Scott County
Assessor to meet with property owners and prepare additional information for
Council consideration, then Alternative #2 is appropriate.
M\COUNCILIAGENDA REPORTS\2008\050508 board of appeal and equalization DOC
Assessor's Reoort to the Citv of Prior Lake
Board of Aooeal and Eaualization
The 2008 assessment for taxes payable in 2009 for Scott County and the
City of Prior Lake has been completed by the Scott County Assessor's office.
Throughout the year, the Scott County Assessor's Office diligently follows
the real estate market, analyzes trends, and makes annual adjustments to
property valuation as indicated. The Scott County Assessor's Office is
committed to providing accurate property valuations and classifications. The
2008 Notices of Valuation and Classification for taxes payable in 2009, along
with the 2008 Property Tax Statements, will be mailed to taxpayers on or about
March 21,2008.
Physical inspection of properties in Prior Lake began in July 2007, and
was completed in January 2008. This process included inspection of newly
constructed buildings, additions and improvements to property of over $1,000.00
in value. There were 117 new home permits issued in 2007, and a total of 505
properties with new permits were visited. Properties with improvements that
were partially complete as of January 2007 were also revisited.
Per State law, an annual inspection of 20% of all the properties within a
taxing district was completed as well. Scott County has approximately 65,000
parcels, thus approximately 13,000 parcels were viewed by appraisers and
assessors from the Scott County Assessor's Office. The City of Prior Lake has a
total of approximately 10,380 parcels; approximately 2,076 were part of the
annual review in 2007. An additional 30% of the city was reviewed in the field
and complete inspections were attempted when our records did not appear
accurate.
According to the Multiple Listing Service (MLS), the average sale price for
a single family detached home in Scott County in 2007 was $326,430, compared
to the average price of $334,784 in 2006. The average sale price for a
townhouse in 2007 was $199,564, down from $212,355 in 2006.
In Prior Lake, the MLS showed sales of 245 single family detached
homes, as compared to 299 in 2006. The 2007 average price was $400,077.00,
down from the 2006 average price of $427,604.00. Single family townhome
sales in 2007 totaled 101, compared to the 146 sales in 2006. The average
selling price for a single family townhome in 2007 was $240,248.00, compared to
the 2006 average of $249,235.00.
Below you will find approximate percentage changes for the total
estimated market value of specific residential categories. These percentage
changes are for existing properties, they do not include any value added due to
new construction. It is important to note that these numbers are aggregate and
that in each category individual values may have increased or decreased.
Townhomes
Prior Lake Lakeshore
Prior Lake Access
Spring Lake Lakeshore
Spring Lake Access
All Remaining Residential
-6.45%
+8.91 %
+8.19%
-1.90%
+5.18%
-1.20%
Minnesota statute requires assessors to value property at 100% of its
market value. The Department of Revenue (DOR) measures compliance with
this law by conducting a sales ratio study which compares the assessed value of
properties to the sale price. This "sales ratio" study does not include any sales
of foreclosed properties, as the DOR does not consider them to be fair market
sales. The effect of these listings and sales is reflected in the fair market sales
as they are competing with these foreclosures. The DOR guidelines require the
median ratio of sales within a community shall be between 90% to 105%. All
jurisdictions in Scott County are currently at mandated levels.
Respectfully submitted,
Mike Thompson
Certified Minnesota Assessor
Scott County Assessors Office
SUMMARY OF THE 2008 ASSESSMENT,
Presented to
The Scott County Board of Commissioners at
THE COUNTY BOARD WORKSHOP
March 4, 2008
By Robert N. Schmitt, Scott County Assessor
1. Green Acres and Aaricultural Preserve Proarams,
a) Definition: The Minnesota Aaricultural Prooertv Tax Law.,
commonly known as the Green Acres Law, provides for the
deferment of assessments and taxes payable on farm lands
whose valuations have been increased by assessors to reflect
prices in excess of farm land values due to non-agricultural
factors such as potential residential or commercial development
or hunting land. The law is intended to protect agricultural land
from development pressures.
b) MetroDolitan Aaricultural Preserve Act was designed to
encourage agricultural use retention on land specifically located
in close proximity to the Minneapolis- St. Paul Metropolitan Area.
Lands entered into the Ag Preserve program are valued similarly
to those under the Green Acre program.
c) Scott County Green Acre I Aa Preserve values will increase
by approximately 20010 over the values which were applied for
the 2007 Assessment. The increased value is reflected in the
value of the tillable acreage only, with the nontillable land values
remaining unchanged, e.g. "A" Tillable $3000 to $3700, "B"
Tillable $2800 to $3500 and "C" Tillable $2600 to $3300.
d) Scott County currently has 1598 parcels with a total acreage of
73,635, enrolled in the Green Acres program. The fewest
parcels being located in cities of Jordan and New Prague with 1
parcel each and the most parcels located in Belle Plaine
Township with 304 parcels comprising over 15,200 acres. (See
map). Ag Preserve currently has 111 parcels in Scott County
comprising 7,359 acres.
2. County Aaricultural Prooerty was increased for the 2008
Assessment. Acreage sales were examined to determine
estimated values for properties located in various portions of
the County and in various zoning designations. Adjustments
for land located within and outside of the Metropolitan Urban
Sewer Area, (MUSA Line). Agricultural land value increased
by an overall amount of approximately 35010.
3. Residential Prooertv Values for the 2008 Assessment in
the County will remain flat or decline slightly. Of the eleven
townships in the County, seven will have average home
values less than they were for the 2007 Assessment. The
seven cities in the County show value changes from -10.7010
in New Prague to +8.7010 in Jordan, with the average being
+.80010. Sales ratios, (Assessor's value/sale price), are within
State mandates of 90010 to 1050/0, averaging 95.93010 for the
cities. (See map).
4. Commercial and Aoartment Prooerties. were reviewed in
the City of Prior Lake. For the first time in recent memory
sales in the City were high enough that warranted a review of
the C/I properties. Work in the City is consistent with the
direction to complete a two-year, 100010 reassessment of Prior
Lake. Values are not yet finalized. Staff is still discussing the
impact and estimated increase on various properties and any
future communication with property owners. Commercial and
Industrial properties in Savage and Shakopee will be
reappraised for the 2009 Assessment. All multifamily
properties in the County were reappraised for the 2008
Assessment
Green Acres
by Jurisdiction
5a~
~umbe1 of P~c~ls:..2f5
Acres:l1013 _
Louisville ifwp>
Number of Parcels: 48
Acres: 2703
Shakopee
Number of Parcels: 60
Acres: 2029_ Savage
~NtUmber of Parcels: 17
Acres: 312
, Prior Lake j
fmber of ~arcels: 29
.~ Acres. 950 :_
I
Joraan - f , - .
Numbey~f par<1;els''!412 Sand Creek Twp Credit River Twp'
~Acres: 91- ~u~ber of Parcels: 232 Spring Lake Twp Number of Parcels~ 63
St. Lawrence Tw~_ ,~.' Acres: 10826 Number of Parcels: 132 Acres: 2419 '
NClrriber of Parcels..:.J5:1 , ' ' Acres: 5612
Acres: 2756 C.....
Belle Plaine
1 ....
Num2De, r O,f ~ar~ls: 18
~, c_re _s ~...220h
~ -..." Lr
Belle Plaine Twp
Number of Parcels: 304
Acres: 15223
Blakeley Twp ,
Number of Parcels: 175
Acres: 9776
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60,000
~ Feet
S:\\IocalgiS'departments\assessirg\projects\2008Green~cres.mxd
Helena Twp
Number of Parcels: 227
Acres: 11883
-"....-
)Jpw P ratg ~e
NumberJof Parfels: 1
~~cre's:"1'8
7,500 15,000
30,000 45,000
I
Cedar Lake Twp
Number of Parcels: 186
Acres: 7451
.
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(SCott
2006-2007 Scott County Sales & Valuation Data
Sales
Avg. Sale $
Avg. EMV $
EMV / Sale
Sales
Avg. Sale $
Avg. EMV $
EMV / Sale
% +/-
-29.7%
Savage
2006
443
$293.788
$276,229
94.0%
2001 % +/-
349 -21.2%
$286,066 -2.6%
$273,434 -1.0%
95.6%
Based on assessor's 2006 and
2007 *qualified residential sales
data and compared to the 2007
and 2008 Estimated Market
Values. By State Law the
overall median ratio for each
jurisdiction must fall between
90-105 percent.
Sales
Avg. Sale $
Avg. EMV $
EMV / Sale
2007 % +/-
55 -32.1 %
$263,781 6.5%
$254,644 8.7%
---'Pri9r [ake--7----7
2006 2007 % +/-
425 291 -31.5%
$317,353 $320,105 0.9%
$292,391 $302,211 3.4%
92.1% 94.4%
"_~_.~._J~J__,. _ --'
Belle Plaine
2006 2001
119
$203,421
$195,356
96.0%
Sales
% +/-
-42.4 %
4.8%
1.8%
Sales
Avg. Sale $
Avg. EMV $
EMV / Sale
* Qualified Sales by State standards do not include foreclosures or partially constructed propet1y at the time of the assessment
BellePlain& New Prague.
2006 2007 % +/- 2006 2007 %+/-
Sales 119 85 -28.6% Sales 76 45 -40.8%
Avg. Sale $ $203,421 $205,829 1.2% Avg. Sale $ $221,773 $189,363 -14.6%
Avg. EMV $ $195,356 $198,958 1.8% Avg. EMV $ $206,009 $183,957 -10.7%
EMV / Sale 96.0% 96.7% EMV / Sale 92.9% 97.1%
$0 - $200,000 $0 - $200,000
Sales 50 38 -24.0% Sales 36 28 -22.2%
Avg. Sale $ $164,646 $177,364 7.7% Avg. Sale $ $163,414 $155,830 -4.6%
Avg. EMV $ $160,470 $173,305 8.0% Avg. EMV $ $154,100 $152,077 -1.3%
EMV / Sale 97.5% 97.7% EMV / Sale 94.3% 97.6%
$200,001 - $400,000 $200,001 - $400,000
Sales 69 47 -31.9% Sales 39 17 -56.4%
Avg. Sale $ $231,519 $228,843 -1.2% Avg. Sale $ $270,175 $244,593 -9.5%
Avg. EMV $ $220,636 $219,699 -0.4% Avg. EMV $ $250,535 $236,465 -5.6%
EMV / Sale 95.3% 96.0% EMV / Sale 92.7% 96.7%
$400,001 + $400,001 +
Sales 0 0 #DIV/O! Sales 1 0 -100.0%
Avg. Sale $ $0 $0 #DIV/O! Avg. Sale $ $435,000 $0 -100.0%
Avg. EMV $ $0 $0 #DIV/O! Avg. EMV $ $338,203 $0 -100.0%
EMV I Sale #DIV/O! #DIV/O! EMV I Sale 77.7% #DIV/O!
Elko-New Market
2006 2007 % +/-
Sales 66 38 -42.4%
Avg. Sale $ $280,049 $293,393 4.8%
Avg. EMV $ $282,009 $286,991 1.8%
EMV I Sale 100.7% 97.8%
$0 - $200,000
Sales 6 3 -50.0%
Avg. Sale $ $125,965 $176,730 40.3%
Avg. EMV $ $241,667 $169,603 -29.8%
EMV I Sale 191.9% 96.0%
$200,001 - $400,000
Sales 57 32 -43.9%
Avg. Sale $ $285,692 $290,112 1.5%
Avg. EMV $ $276,000 $287,285 4.1%
EMV / Sale 96.6% 99.0%
$400,001 +
Sales 3 3 0.0%
Avg. Sale $ $481,009 $445,053 -7.5%
Avg. EMV $ $476,870 $401,239 -15.9%
EMV I Sale 99.1% 90.2%
Shakopee Prior Lake
2006 2007 %+/- 2006 2007 % +/-
Sales 676 475 -29.7% Sales 291 -31.5%
Avg. Sale $ $250,345 $245,151 -2.1% Avg. Sale $ $317,353 $320,105 0.9%
Avg. EMV $ $227,507 $228,956 0.6% Avg. EMV $ $292,391 $302,211 3.4%
EMV / Sale 90.9% 93.4% EMV / Sale 92.1% 94.4%
$0 - $200,000 $0 - $200,000
Sales 271 188 -30.6% Sales 91 71 -22.0%
Avg. Sale $ $177,014 $172,731 -2.4% Avg. Sale $ $160,617 $151,590 -5.6%
Avg. EMV $ $162,197 $161,522 -0.4% Avg. EMV $ $150,814 $143,403 -4.9%
EMV / Sale 91.6% 93.5% EMV / Sale 93.9% 94.6%
$200,001 - $400,000 $200,001 - $400,000
Sales 351 261 -25.6% Sales 235 158 -32.8%
Avg. Sale $ $263,308 $273,350 3.8% Avg. Sale $ $273,239 $276,085 1.0%
Avg. EMV $ $240,207 $255,886 6.5% Avg. EMV $ $252,046 $262,252 4.0%
EMV / Sale 91.2% 93.6% EMV / Sale 92.2% 95.0%
$400,001 + $400,001 +
Sales 54 26 -51.9% Sales 82 62 -24.4%
Avg. Sale $ $534,101 $485,737 -9.1% Avg. Sale $ $617,714 $625,261 1.2%
Avg. EMV $ $472,713 $446,218 -5.6% Avg. EMV $ $565,132 $585,902 3.7%
EMV / Sale 88.5% 91.9% EMV / Sale 91.5% 93.7%
Savage Jordan
2006 2007 % +/- 2006 2007 % +/-
Sales 443 349 -21.2% Sales 81 55 -32.1 %
Avg. Sale $ $293,788 $286,066 -2.6% Avg. Sale $ $247,632 $263,781 6.5%
Avg. EMV $ $276,229 $273,434 -1.0% Avg. EMV $ $234,265 $254,644 8.7%
EMV / Sale 94.0% 95.6% EMV / Sale 94.6% 96.5%
$0 - $200,000 $0 - $200,000
Sales 68 63 -7.4% Sales 26 14 -46.2%
Avg. Sale $ $176,356 $174,032 -1.3% Avg. Sale $ $176,169 $175,372 -0.5%
Avg. EMV $ $170,583 $173,622 1.8% Avg. EMV $ $169,048 $172,103 1.8%
EMV / Sale 96.7% 99.8% EMV / Sale 96.0% 98.1%
$200,001 - $400,000 $200,001 - $400,000
Sales 318 233 -26.7% Sales 54 36 -33.3%
Avg. Sale $ $281,510 $270,708 -3.8% Avg. Sale $ $276,506 $275,267 -0.4%
Avg. EMV $ $265,164 $257,862 -2.8% Avg. EMV $ $265,273 $264,998 -0.1%
EMV / Sale 94.2% 95.3% EMV / Sale 95.9% 96.3%
$400,001 + $400,001 +
Sales 57 53 -7.0% Sales 1 0 -100.0%
Avg. Sale $ $502,381 $486,759 -3.1% Avg. Sale $ $546,400 $0 -100.0%
Avg. EMV $ $464,215 $459,962 -0.9% Avg. EMV $ $255,496 $0 -100.0%
EMV / Sale 92.4% 94.5% EMV / Sale 46.8% #DIV/O!
RECEIVED
APR 2 1 Z008
April 18, 2008
Mayor Haugen,
In 1981 I purchased a lot at 15615 Highland Avenue Northwest on Mud Bay for
$30,000. At the time Prime Lakeshore lots on Candy Cove, Frost Point, Martinson
Island etc. were selling in the $100,000+ range. Today a woman assisting Scott
County Assessor Mike Thompson returning my call informed me they are valuing
my lot at $376,000, she further stated this is a 20% reduction from Prime Lakeshore
value.
I don't know if they are valuing my lot to high? or Prime lakeshore to low? however
I am fairly certain my lot is not worth 80% Prime Lakeshore.
I am not appealing my valuation, rather voicing my concern about the assessor's
methodology, fearing in the future it will lead to an ever-widening unevenness in
market valuations.
I am bringing this to your attention simply as a matter of information. I am not
criticizing the assessor as I somewhat understand the difficulty of his job but...
Sincerely,
mike deluhery
/??,L f)-!'-6