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Home My WebLink About2000 05-01 CCP Board of Appeal & Equalization Form No. A. F. 4 - Notice to Clerk of Meeting of Board of Review - *Equalization OFFICE OF COUNTY ASSESSOR TO THE CLERK OF THE City OF Brooklyn Center Hennepin COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN, That the First day of May at Seven o'clock P • M., has been fixed as the date for the meeting of the Board of Review - (Stnke out One) `Equalization - in your City for said year. This meeting should be held in your office as provided by law. Pursuant to the provisions of the Minnesota Statutes Section 274.03, you are required to give notice of said meeting by publication and posting, not later than ten days prior to the date of said meeting. Given under my hand this Seventeenth day of / February , 2000 c! ' 1 � - j County Assessor /� Hennepin County, Minnesota *Applies only to Cities whose charter provides for a Board of Equalization instead of a Board of Review. • • • 4110 Memo To: Michael McCauley, City Manager /,' fi From: Stephen Baker, City Assessor RE: 2000 Board of Equalization Date: April 28, 2000 Each year the City Council is required by our Charter to sit as the Board of Equalization. The purpose of this Board is to review the work of the Office of the City Assessor and to hear valuation and classification appeals. The 2000 Board of Equalization is scheduled to begin at 7:00 p.m. on Monday, 1, 2000. In q g > P Y May addition to the valuation notices mailed to all individual ro ert owners, the City Clerk has P P Y � Y published and posted notices of this meeting as required by state statute. Meeting agenda: 1. Meeting called to order, roll call. (7:OOpm) 2. The statement of the purpose of Board of Review and a review of it's duties.. 3. Assessor's Report. 4. Appearances by taxpayers with appointments. 5. Appearances by taxpayers without appointment 6. Consideration of written appeals. 7. Adjourn. A motion to sustain the assessment or to adjust the assessment may be made upon completion of the discussion of each property or may be held until all appeals have been heard. Purpose of the Board of Review • Minnesota Statutes, Section 274.01, provides that the governing body of each city or a duly 1111 appointed board will serve as the local Board of Review. This review is held each spring. The board has the responsibility to review the assessed valuation and classification of property within the city. This year's review is limited to the 2000 assessment; it affects taxes payable in 2001. The review by the board should focus only on either the market value or the classification of each property. The board should not directly concern itself with issues of the actual property taxes of any particular property. Duties of the Local Board of Review 1. See that all taxable property is properly assessed, valued, and classified. 2. Add any omitted property to the assessment. Limits of Authority for the Local Board of Review 1. The authority of the board extends over individual parcels only. No changes may be made by percentage, class, or property type. Changes in the aggregate assessment may be made by the state board of equalization. 2. The total of all changes made by the local board of review must not reduce the aggregate assessment by more than 1 %. Should this occur, then none of the changes of the local board of review will be allowed. This limitation does not apply to clerical corrections. • 3. The local board of review does not have the authority to reopen previous assessments. An example of this is the 1999 assessment for the taxes payable in 2000. 4. Should the board wish to raise any assessment, the owner must be notified. 5. It is necessary for a majority of the board be present for any valid board action to be taken. 6. The board should carefully consider any cases where taxpayers feel aggrieved by the proposed assessment. All available evidence should be considered. The board then has authority to adjust the assessment as it deems just. 7. The initial 2000 meeting is scheduled May 1. The board must complete its work within 20 days or receive a written extension from the Commissioner of Revenue. Any actions taken after 20 days without an authorized extension will be invalid. The assessor's recommendation is to complete all board business at the first meeting, if possible. Should a second meeting be necessary, it must be held no later than Sunday, May 21, 2000. • The assessor's office will make every effort to resolve as many questions possible prior to the board. Those property owners still wishing to be heard at the board will be given an opportunity to express their individual concerns. The assessor's office will have an appraisal prepared for all • properties where the owner has notified the assessor's office of their intent to appear at this year's board of review. A copy of this report will be provided to each board member and the property owner. Please remember that the issue at hand is the market value or classification of the property at hand - not the taxes. Cases that the board feels may be too difficult or complex to decide may be affirmed. The property owner will then have the opportunity to continue on to the County Board of Review. 1999 Reinspection Program for the 2000 Assessment During 1999 our office conducted reinspections for the 2000 assessment of the residential properties south of the I694/I94 corridor, north of 57th Avenue and east of Hwy.. 100. We also reviewed all the townhomes in the city. This review area consisted of approximately 1,975 residential properties. All parcels were inspected from the exterior and the assessor's office also inspected the interior of 77% or 1,520 of these homes and townhomes • The reinspections began in May, and were essentially completed by the end of September. The reinspections were performed by Appraiser II, Nancy Wojcik; assessment data collector, Nate Maher; and appraiser- technician, Kelley Gillen. Following the review of the scheduled quartile, our focus switched to the residential properties with new improvements. We then reviewed the new improvements of an additional 700 residential properties, 235 of these properties were interior inspected. We estimate that the total number of residential properties inspected in 1999 was approximately 2, 700. The total number of interior inspected properties was approximately 1, 755. Frequently Asked Questions What is this notice I got in the mail? This notice is your 2000 assessed value for taxes payable in 2001. It is intended to inform you the of the taxable market value and tax classification of your property for taxes payable in 2001. Why did my market value change? The value of your property changes as the market indicates (through analysis of sales) or due to changes in the property (permit work, characteristic changes, etc.) The estimated market value is the most probable price that a well informed buyer would pay a well informed seller for a property without either party being unduly forced to buy or sell. If you have specific questions you may elect to speak with an appraiser on your specific property. You recently reviewed my property this last summer and told me there were no changes to my characteristics, why did my value increase? The value of your property is based on reported and recorded market sales data collected over the past year. Your 2000 assessed value is based on rates that are determined through analysis of this residential sale data. These rates change as indicated by recent market sales. Your 2000 value may have increased or decreased even though the characteristics of your home have not changed. This change in value may be based solely on the market data. Any changes in your property characteristics either positive or negative may also impact the final estimated value of your property. Is there a limit on how much you can change my value? There is no limit on the change in estimated market value. However, the limited market value or the taxable value for residential, agricultural or non - commercial seasonal recreational properties (homestead or non - homestead) is limited. The increase in the property's taxable value may not exceed; (1) 8.5% of the previous year's taxable value, or (2) 15% of the difference between the current year's market value • and the previous year's taxable value, whichever is greater, excluding improvements. Can I appeal this valuation of my property? You should first review sale information from your neighborhood. Review homes similar in style and size to yours. If you still feel that your value should be changed you may wish to speak with an appraiser and schedule an appointment for the assessor's office to review your home. If you plan to attend the Board of Equalization we must review your property prior to scheduling you on the agenda. In most cases we will determine a mutually acceptable value for your property and it will not be necessary for yo to appear before the board. However, if the assessor's office review does not result in a satisfactory explanation of the original valuation or a satisfactory adjustment to the value you may then wish to appear before the board. We suggest you be prepared to discuss specific issues regarding your property, neighborhood or recent comparable sales. Please remember this is not the forum to air grievances with property taxes in general; this meeting, by statute, relates only to valuation and classification. What can I do as a senior citizen with a limited income if I feel you are taxing me out of my home? • As a senior citizen it is important to remember to file for the property tax rebate and property tax refund These programs are designed to shield you from excessive increases in property tax and /or property taxes which are too high when compared to your income. In addition to these programs there is also a • senior citizen property tax deferment program available. You may also wish to contact your local legislator to voice your concerns regarding the impact of taxes on senior citizens. Can I have you also review my 1999 valuation for taxes payable this year? No. Your 2000 taxes are based on the 1999 valuation. The previous year's assessment has already been finalized. Questions regarding the 1999 value needed to be addressed when you received the valuation notice in April 1999, or at the Local Board of Equalization on May 3, 1999. What will my 2001 taxes be with this change? The tax rates have not been determined for the 2001 taxes. We will have a better idea of estimating taxes when the legislature adjourns in May. The Truth in Taxation notice in November 2000 will give you the first accurate estimate of the 2001 taxes. If you would like an estimate using this years tax rates we can give you an estimate, or you may call Hennepin County Tax Estimates at 348 -7835 for assistance. • • MEMO To: Stephen Baker From: Nancy Wojcik Subject: Review of 1999 Local Board Date: April 28, 2000 Valuation notices were mailed on April 1, 1999 to 8,643 parcels. Of the 8,643 parcels we received approximately 75 phone calls concerning the 1999 assessed market value. Of the 8,643 parcels, 3 property owners requested to be placed on the agenda for the Local Board of Review. The Local Board of Review was held on Monday, May 3, 1999 at 7:00 p.m. Four property owner's appeared before the board to appeal their 1999 assessed market value. Three property owner's had scheduled an appointment to appear before the Local Board and one property owner was a walk in appearance. Mr. Burton Petersen, 1112 Woodbine Lane, appealed the 1999 assessed market value of $97,900 on his residential property. Mr. Burton felt that residential property in Brooklyn Center was not appreciating. Mr. Burton had declined an interior inspection prior to the Local Board, his 1999 assessment was supported by comparable homes that had sold in the neighborhood area. The • recommendation was made that Mr. Burton's 1999 assessed value remain at $97,900. Dr. Robert Schell, River Road Dental Clinic, 512 66th Avenue N., appealed the 1999 assessed market value of $638,500 on his commercial property. An appraisal was submitted to estimate market value of the fee simple interest of the property. There was a brief discussion regarding the agreement between Dr. Schell and Holiday regarding the building of the new dental clinic and construction costs. The recommendation was made that Dr. Schell's 1999 assessed value remain at $638,500. Mr. Larry Cuskey, 7024 Humboldt Avenue N., appealed the 1999 assessed market value of $88,200 on his residential property. Mr. Cuskey felt that his property had been damaged by recent storms and showed deferred maintenance throughout the home, in addition to the high traffic of Humboldt Avenue. The board made a recommendation that an appraiser review Mr. Cuskey's property. Upon review of Mr. Cuskey's property condition on May, 6th, a recommendation was made to the board to reduce Mr. Cuskey's valuation from $88,200 to $86,200. Mr. Cuskey did not agree with the boards decision and made an appointment to appear before the County Board of Equalization. The County Board recommended that the property also be reviewed by a Hennepin County residential appraiser. The decision of the County Board of Equalization was to reduce Mr. Cuskey's value from $86,200 to $82,000. Mr. Keith Wendt, 6400 Willow Lane, appealed the 1999 assessed market value of $131,500 on • his residential river property. Mr. Wendt's concern was with the issue of unavailability of insuring his home due to its location within the Mississippi River flood plain. There was a brief discussion of current market prices of river properties in the twin cities area. The city was aware • Stephen Baker Page 2 April 28, 2000 of his situation due to recent high water along the river area. Mr. Wendt felt that his concern was that we were aware of the non - conforming issues, and that he would not be able to rebuild his home if destroyed. The recommendation was made that Mr. Wendt's 1999 assessed value remain at $131,500. The Local Board of Review made a total reduction of the city's 1999 estimated market value of $2,000. • • c: \depts \assess \memos \nancy \overview 1999 vs 2000 VALUATION CHANGES FOR • BROOKLYN CENTER RESIDENTIAL PROPERTIES Payable 2000 TO 2001 PERCENTAGE OF NUMBER OF PERCENTAGE OF CHANGE PARCELS RESIDENTIAL PARCELS -34 % TO -20 % 2 0.03% -19 % TO -10 % 2 0.03% -9 % TO -1% 8 0.1% NO CHANGE 63 0.9% +1% TO +5% 203 2.8% +6% TO +10% 716 9.9% +11% TO +20% 5,348 73.9% +21% TO +30% 831 11.5% +31% TO +40% 57 0.8% • +41% TO +50% 6 0.1% TOTAL 7,236 100.0% Parcels with increasing values - 7,161 99.0% Parcels with an increase of more than 10% - 6,242 86.3% Parcels with an increase of more than 20% - 894 12.4% • Parcels with declining values - 12 0.2% Note: Approximately 89% of all residential properties in Brooklyn Center will have a taxable market value that is Tess than the assessed market value for the 2000 payable 2001 assessment. G:\DEPTSI ASSESS\ BOARD\ 2000t[ SLBMISC.XLS]99- OOstratification 04/28/2000 • MLS SALE STATISTICS FOR BROOKLYN CENTER SINGLE FAMILY RESIDENTIAL PROPERTIES MINNEAPOLIS BOARD OF REALTOR'S 1998 SALE 1999 SALE PERCENTAGE INFORMATION FOR INFORMATION FOR CHANGE 1999 ASSESSMENT 2000 ASSESSMENT Number of Homes 344 323 - 6.10% sold % of Listings Sold 83.7 77.6 - 6.10% Average List Price $ 99,286 $ 115,297 + 16.1% Average Sale Price $ 98,679 $ 115,439 + 17.0% of List Price 99.39 100.12 + 0.7% Received Median Sale Price $97,900 $120,500 +23.1% Average Number of 28.92 16.02 - 44.60% Days on Market • Average List Price of $ 106,822 $ 127,898 + 19.7% Homes Not Sold Information listed is for MLS district 363 (Brooklyn Center) only. Source is the second half 1999 photo sold book and year end marketing analysis, published by the Regional Multiple Listing Service Inc. As of the morning of April 25, 2000 the Realtor's` RMLS system indicated that 38 residential properties in Brooklyn Center went "off market" after January 1, 2000 and were "closed sales" as of April 25, 2000. The average sale price for these 38 Brooklyn Center single family residential properties sold and closed in 2000 is $120,291 and the median sale price is $122,500. • VALUATION GROWTH 1982 THRU 1998 ASSESSMENTS City of Brooklyn Center 1 Suburban Hennepin County • Assessment Year* Apartments Commercial Industrial Residential Apartments Commercial Industrial Residential 1982 12.0% 10.9% 6.4% 5.9% 1983 10.2% 1.0% 9.8% 4.1% 1984 7.2% 3.3% -5.0% 0.7% 1985 1.5% 6.4% 1.2% -0.5% 1986 5.9% 8.5% 6.2% 1.2% 1 987 7.4% 6.5% 4.8% 3.6% 1988 9.9% 3.1% 2.7% 4.7% 1989 0.9% 6.8% 5.8% 2.0% 1990 0.9% 5.2% 6.3% 1.9% 0.0% 2.4% 2.7% 3.5% 1991 -4.1% 0.6% -0.9% -0.5% -4.7% -3.3% -0.1% 1.1% 1992 -8.1% 1.8% - 10.6% -0.9% -5.5% -7.1% -5.7% 0.9% 1993 -3.9% -3.5% -6.2% 0.5% -7.4% -6.7% -5.7% 2.7% 1994 2.1% -7.2% 2.0% 0.0% -0.7% -0.8% -5.0% 4.2% 1995 -0.9% -2.1% 2.8% 1.1% 2.7% 3.4% 2.0% 4.7% III 1996 -3.8% -4.6% 10.1% 4.5% 4.7% 8.0% 6.1% 3.6% 1997 3.9% 0.8% 3.3% 2.7% 5.8% 7.7% 5.8% 3.8% 1998 20.0% 5.9% 10.6% 5.1% 12.5% 9.1% 7.4% 3.9% 1999 9.0% 2.1% 7.2% 8.0% 9.4% 4.6% 8.5% 6.5% 2000 10.5% 3.7% 9.1% 13.3% 14.5% 7.5% 6.6% 10.6% City of Brooklyn Center Suburban Hennepin County Assessment Year* Apartments Commercial Industrial Residential Apartments Commercial Industrial Residential Total 5 Year Growth 39.6% 7.9% 40.3% 33.6% 46.9% 36.9% 34.4% 28.4% Total 10 Year Growth 24.7% -2.5% 27.4% 33.8% 31.3% 22.4% 19.9% 42.0% Total 15 Year Growth 49.7% 27.6% 53.2% 47.2% Growth listed occurred in the calendar year preceding the assessment year. The changes in value indicated by the growth shown in this chart impact the property taxes in the year following the stated year of assessment. 2000 Assessment is preliminary until completion of the local board of review in May and the county board of equalization • in June. G 10ERTS\ASSESSBOAR012000VSLBMISO XLS)groMh 1982 -1999 04/28/2000 CHANGES MADE TO 2000 ASSESSMENT CITY OF BROOKLYN CENTER OVERALL 41)Prepared by the Brooklyn Center Assessor's Office VALUE CHANGE City Wide - All (Includes all property types) 13.3% (Excluding new construction) 11.9% City Wide - Resid. (Single Family - Detached Only) 15.4% (Excluding new construction) 14.8% Commercial (excluding new construction) 4.4% Industrial 15.2% Apartments 10.5% Condominiums 9.1% Co -ops 8.7% Townhouses 12.6% (Excluding new construction) 12.2% Double Bungalows 15.3% Residential Neighborhoods #50 River 14.2% (excluding new construction) 14.2% #51 North West 14.9% (excluding new construction) 14.5% #52 North East 15.2% (excluding new construction) 15.0% #53 West Central 14.8% (excluding new construction) 14.6% #54 South East 16.8% (excluding new construction) 15.1 #55 South West 15.3% (excluding new construction) 14.5% • Riverfront 14.7% River Influence 22.5% Lakefront 17.0% ZEPTSNSSESSIBOARO\2000' SLBMISC XLSICO change 04/28/2000 • • COMPARISON OF THE BROOKLYN CENTR ASSESSED VALUE BY PROPERTY TYPE 1998 TO 2001 TAX YEARS r PERCENTAGE TOTAL PAY PERCENTAGE TOTAL PAY PERCENTAGE TOTAL PAY PERCENTAGE PROPERTY TOTAL PAY 1998 OF PAY 1998 1999 OF PAY 1999 2000 OF PAY 2000 2001 OF PAY 2001 TYPE VALUATIONS VALUE VALUATION VALUE VALUATION VALUE VALUATION VALUE APARTMENT $80,218,400 7.94% $96,130,700 8.86% $104,757,700 8.99% $115,338,600 8.75% COMMERCIAL $231,244,700 22.89% $250,191,900 23.05% $264,071,300 22.67% $281,665,500 21.37% INDUSTRIAL $55,653,800 5.51% $64,265,800 5.92% $68,639,200 5.89% $83,471,500 6.33% RESIDENTIAL $642,788,600 63.63% $674,752,700 62.15% $727,068,100 62.42% $837,135,000 63.52% FARM $264,500 0.03% $264,500 0.02% $265,000 0.02% $320,000 0.02% TOTALS $1,010,170,000 $1,085,605,600 $1,164,801,300 $1,317,930,600 NOTE: Payable 2001 valuation totals are based on values as of March 21, 2000. Adjustments for changes by the 2000 legislature are reflected in these totals. Residential taxable market value total for 1999 pay 2000 was $717,727,400. G.t DEPTSWSSESS \BOARD12000'{SLBMISC.XLS]market value history Prepared by Brooklyn Center Assessor's Office 04/28/2000