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Home My WebLink About1997 04-21 CCP Board of 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 Twenty -First day of April at Seven o'clock P • M., has been fixed as the date for the meeting of the Board of Review — (strike 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 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 Fifth dayof February ' 19 97 CA County Assessor Hennepin County; Minnesota * Applies only to Cities whose charter provides for a Board of Equalization instead of a Board of Review. Filed in my office this day of , 19 Clerk. Poucher, Mpls. PRIOR YEAR'S BOARD ACTIONS 1996 Board Activity The 1996 Board of Equalization was held Monday, April 15, 1996. The Board heard appeals from seven property owners. There was also one written appeal entered. One property owner appealed two parcels: an industrial building and a vacant commercial land parcel. The remainder were all residential properties. Two of the residential properties appealed were located on the Mississippi River. The Board sustained the assessment in all cases. 1995 Board Activity The 1995 Board of Equalization was held on Monday, April 17, 1995. There were six appeals to the Board: three single family detached residential, one condominium, one apartment, and one commercial. The Board's actions were to affirm the assessment on five of the properties and to reduce the assessment of one of the residential properties by $4,600. 1994 Board Activity The 1994 Board of Equalization was held on Monday, April 18, 1994. There were two apartment properties and two commercial properties reviewed by the Board. The apartment owners appeared in person; the commercial were by letter. The Board reduced one apartment and both commercial properties by the amount recommended by staff. The other apartment value was affirmed by the Board. There were no residential appeals. The Board approved the balance of the assessment. 1993 Board Activity The 1993 Board of Equalization was held on Monday, April 19, 1993. There were nine appeals to the Board: three residential, two double bungalows, three apartments, and one commercial property. The commercial appeal was by letter. The Board's actions were as follows: (1) Reduced value on two residential and affirmed value on one residential; (2) Reduced value on both double bungalows; (3) Reduced value on one apartment and affirmed value on the other two apartments. Three of the five reductions in value were with the recommendation of staff. The Board approved the 1993 assessment, with the exception of one double bungalow which was deferred until April 26, 1993. 1996 vs 1997 VALUATION CHANGES FOR BROOKLYN CENTER RESIDENTIAL PROPERTIES Payable 1997 TO 1998 PERCENTAGE OF PERCENTAGE OF CHANGE NUMBER OF PARCELS RESIDENTIAL PARCELS - 70 % TO -20 % 8 0.11 19 % TO -10 % 41 0.56% - % TO - 5% 84 1.16% -4 % TO -1 % 276 3.80% NO CHANGE 433 5.96% 0 +1 TO +5 /0 6 85.14% +6% TO +10% 226 3.11 +11 TO +20% 9 0.12% +20% TO +28% 2 0.03% TOTAL 7,262 100.00% Parcels where change is 5% or less - 6 94.90% Parcels with declining values - 409 5.63% Parcels with increasing values - 6 88.41 F: WSSESSZPREDSHT %.STEVEB�CHANGE.XLS]96 to 97 RES EMV CHANGE 4/21/97 • CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER BOARD OF EQUALIZATION April 21, 1997 7 p.m. 1. Call to Order 2. Roll Call 3. Statement of Board of Equalization 4. Review of Minnesota Property Tax System 5. City Assessor's Report 6. Appearances by Taxpayers with Appointments 7. Appearances by Taxpayers without Appointments 4 8. Consideration of Written Appeals 9. Motion to Affirm the Balance of the Assessment 10. Adjournment City of Brooklyn Center A great place to start. A great place to stay. MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Sharon Knutson, City Clerk DATE: April 18, 1997 SUBJECT: Board of Equalization After speaking with City Assessor Baker, there have been no reservations made by persons to appear at the Board of Equalization meeting on Monday, April 21, 1997. • • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer MEMO To: Brooklyn Center Board of Review From: Stephen L. Baker, City Assessor Subject: 1997 Local Board of Review Date: April 18, 1997 CC: Michael McCauley, City Manager RE: 1997 Local Board of Review - April 21,1997 - 7:00 p.m. Minnesota Statutes, Section 274.01 provides that the governing body of each city or a duly 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 1997 assessment, it effects taxes payable in 1998. The review by the board should focus only on either the market value or the classification of each property. The board should not consider the property taxes. 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, by class, or property type. Changes in the aggregate assessment may be made by the county 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 I%. Should this occur than 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 1996 assessment for the taxes payable in 1997. 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 board must complete its work within 20 days or receive a written extension from the Commissioner of Revenue. Any actions taken after 20 days will be invalid. 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 11, 1997. I would propose that the meeting follow an agenda as follows: 1. Meeting called to order, roll call. 2. The statement of Purpose of Board of Review. 3. Assessor's Report and Review of Minnesota Property Tax System. 4. Appearances by taxpayers with appointments. 5. Appearances by taxpayers without appointment. 6. Consideration of written appeals. 7. Motion to affirm the balance of the assessment. 8. Adjourn Previous Board of Review The 1996 board of review heard appeals from seven property owners. There was also one written appeal entered. One property owner appealed two parcels, an industrial building and a vacant commercial land parcel. The remainder were all residential properties. Two of the residential properties appealed were located on the Mississippi River. The Board sustained the assessment in all cases. Review of 1997 Assessment and the 1996 Real Estate Market Residential - Detached Overall growth in assessed values from the previous year was measured at approximately 2.6 % city wide. The southwest neighborhood experienced average growth in assessed property values of 3.6 %. The Regional Multiple Listing Service of the local Boards of Realtors reported an increase in the median or midpoint Brooklyn Center sale price from 1995 to 1996 of +3.1 %. It also reported that the average or mean sale rice increased 3.8% in the same period. The 1996 P p mean sale price was $85,153. The median 1996 sale price was $85,000. The median 1997 assessed value is $77,700. The MLS statistical data is based on 288 sales in 1995 and 310 sales in 1996. The number of sales analyzed by the assessor for the 1996 residential assessment was 283. Condominium The Beach Condominiums continued to evidence improving marketability and increasing property values in 1996. This resulted in an increase in the average assessed value for 1997 of approximately 5.3 %. Riverfront Properties There was little market activity of riverfront homes in Brooklyn Center in 1996 and the average 1997 assessment for these properties increased by approximately 2.9 %. Commercial The commercial market in general continued to show areas of strength, however, again declines in some of the cities larger retail properties offset most of these increases and resulted in an overall increase in commercial valuation of only 0.3%. Industrial The strongest non - residential market segments. While again there were no sales of this type of property in Brooklyn Center in 1996, the market evidenced improvement through stable occupancy with generally increasing rents. Also, sales in other Twin Cities suburbs evidenced increasing values and marketability. This group of properties increased approximately 3.3% in value for the 1997 assessment. Apartments The apartment market continued to show signs of improvement. Occupancy is generally strong, rents are increasing and apartments are much more in demand today as an investment then they were two to four years ago. The average increase in assessed value of Brooklyn Center apartments for the 1997 assessment was 3.5 %. Commercial Industrial Vacant Land After a number of years of relative inactivity the market for vacant commercial and industrial land improved substantially in 1996, and continued to show signs of strength into 1997. The typical increase in value for vacant commercial land for the 1997 assessment was approximately 40 %. Assessment Valuation Procedures Residential Sales occurring in the prescribed study period, October thru September, are analyzed by comparing them to the previous assessment and the preliminary assessment in process. Adjustments are then made either to the land values or to the computerized rate tables employed by the CAMA system in calculating the building values. This computer assisted mass appraisal system allows the assessor's office to value properties according to their individual characteristics. Examples of these characteristics include age, condition, size, style, amenities, functionality, and location. The preliminary final assessment is then analyzed statistically to ensure accuracy and uniformity. This process is greatly assisted by the relatively large sample of residential sales each year, giving the statistical analyses a high degree of reliability. The Brooklyn Center residential assessment falls well within all accepted measurement guidelines for mass appraisal accuracy and uniformity. Apartment The apartment assessment is based on a combination of market sale activity and analysis of the rental market. Even in years without adequate sale information changes in rental rates and occupancy levels are valid, accurate measures of changes in market value. Apartments are sold primarily for their potential to generate future income for the buyer. Therefore, the analysis of the likely (economic) income is a proven and widely accepted approach to valuation. Commercial / Industrial The valuation of these properties is primarily accomplished through an analysis of the rental market, potential income, and the sale market. What are typical investor expectations? What are typical investor yield requirements for different market segments? These are two key questions where market activity can provide some guidance. The potential market (economic) income to a property is best estimated by analyzing recent leases, rental listings and published data like the Real Estate Tracking Service of the Minnesota Real Estate Journal or the Towle Report. All of these sources and more have been employed by the assessors office to ensure that the current assessed values follow the market as closely as possible. Review Procedures Informal 1. Review with the owner by phone or in the assessor's office. 2. Provide the owner with nearby assessed values and/or sales of homes similar to theirs'. I Suggest the owner have a market evaluation provided by a local Realtor. 4. Review by physically inspecting the property and recalculating the value based on characteristics gathered in the new inspection. 5. Discuss with the owner the valuation recommendation based on the review performed. Formal I. Local Board of Review 2. County Board of Equalization 3. Minnesota Tax Court 4. Abatement Summary The 1997 board of review may again be somewhat more active than in some recent years due to the increased valuations required the last two years to maintain pace with the local real estate market. 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 years 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 maybe 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. • At the County Board level the county assessor's office will perform an independent appraisal of each property. Should a reduction to the assessment be indicated it is offered to the owner. The county will also notify the owner if their review indicates either no change or an increase. At this point the owner can either accept the reduction, withdraw the appeal or continue on to be heard by the County Board of Equalization. e : City Wide (Includes all property types) 29 % City 'Wide (Single. Family. Detached Only) 2,6% O 0 Commercial 0.3 i /o ndustriali 33% C/I Land 42.6% partinents 3!5 %o Apartment Land 37.1% Condominiums.,:::, ondominiums 53% Co -ops 0.0% . ownhanses 39°M0 Double Bungalows 3.3% ........................ . esideritial Nezhborhoods #50 River 2.6% 951 North West 2.9% #52 North East 2.7% #53 West Central 2.9 % 954 South East 2.1% 955 South West 3.6% verfront Z.9% 97CHNGE.XLS 4/18/97 CITY OF BROOKLYN CENTER 1997 SALES RATIO STUDY - ENIV - I year - ACTUAL VALUES Aggregate Ratio - 93.9% Coeffcient of Dispersion - 4.2 Median Ratio - 93.4 Average Sale Price - $35,067 Average Estimated Market Value - S79,920 233 Sales/ 7400- 3.3% (Sales - October, 1995 through September, 1996) SINGLE FAMILY DETACHED ONLY NEIGHBORHOODS RIVER AREA NW SW C NE SE # 3 39 35 98 45 63 SP $98,733 $84,635 $38,389 $36,475 $83,663 $77,803 AV $93,933 579,944 584,034 $31,049 $82,969 $73,019 R 94.2 93.8 93.0 92.9 94.4 93.4 COD 1.2 3.5 4.8 4.4 4.2 4.1 STYLE RAIMBLER EXP 1 1/4 EXP 1 1/2 EXP 13/4 SE -SF SPL LVL 2 -STRY # 215 32 1 1 15 19 0 SP 534,377 $78,119 $70,000 534,000 596,360 $90,855 SO AV $79,329 572.597 564,300 577,600 $39,940 $86,316 $0 R 93.6 93.0 91.9 92.4 92.3 94.6 0.0 cod 4.5 3.0 0.0 0.0 3.2 3.2 0.0 LOCATION LAKE- RIVER RAU -ROAD T/TRAFFIC HWl'IFWY COML APT AIRPORT PARK # 0 0 1 23 17 5 6 2 11 SP SO $0 574,900 581.607 584,982 $36.550 583,217 $88,250 S37,218 AV SO SO $69,500 $77,968 $73,813 S80,320 $79,917 $83,350 $84,009 R 0.0 0.0 92.3 94A 91.4 92.3 92.9 94.6 96.7 cod 0.0 0.0 0.0 4.9 4.2 5.3 6.0 4.3 4.3 AGE 0 -10 YRS I1 -20 YRS 21 -25 YRS 26 -30 YRS 31 -35 YRS 36-40 YRS 41-45 YRS 46 -50 YRS 51+ YRS 9 1 13 4 19 24 121 80 10 11 SP 5107,730 593,323 $94,625 587,495 589,372 $86,304 $82,454 $73,900 $71,745 AV 590,400 $87,435 589,125 532,353 533,942 $31,344 577,193 $70,430 $66,464 R 33.9 93.1 94.3 95.0 94.0 93.6 92.9 95.6 93.0 cod 0.0 3.4 1.2 4.0 3.9 4.2 4.5 3.6 3.7 BY SALE PRICE TOS70K S70K -S90K S90K -S105K S105K. -S120K S120K+ # 14 196 68 5 0 SP 565,361 582,415 594,753 5111,030 SO AV 564,093 577,318 587,683 5100,980 $0 R 96.0 93.9 91.8 922 0.0 cod 4.6 42 3.8 2.6 0.0 BY E.M.V. TO S 70 K S 70 K- S 90 K $90K -S I05K 5105 K- 5 120 K S 120 K+ # 17 240 25 1 0 SP 563,700 584,649 598,320 $119,900 $0 AV $64,141 579,396 594,496 5109,600 SO R 93.0 93.4 942 91.4 0.0 cod 45 4.1 4.5 0.0 0.0 DOUBLE BUNGALOWS TOWNHOUSES CONDOMINIUMS ALL 0 -10 YRS 11 -20 YRS 21 + YRS # 3 50 2 41 7 6 SP 5115,033 570,718 $136,243 563,045 567,657 $49,558 AV 5107,400 566,460 5123,500 $63,707 564,857 $48,567 R 94.2 942 94.3 94.0 95.3 95.5 cod 1.1 3.8 0.1 4.3 1.3 6.1 CITY OF BROOKLYN CENTER 3/11/97 CITY OF BROOKL EY CEzVTER • 1997 TAX CA PA CITY RATES Area Wide Ratio: 32.7084 ANOKA OSSEO ROBBINS- BROOKLYN Area Wide Rate: 139.376 ISD #11 ISD #279 DALE CENTER ISD #281 ISD 9286 SCHOOL 55.588 62.666 63.757 56.260 COUNTY 35.515 35.515 35.515 35.515 CITY (INCLUDES HRA) 32.875 32.875 32.875 32.875 MISCELLANEOUS 6.659 6.659 6.659 6.659 M.V. Rates School .03013 .09386 0 .08436 (market value) Solid Waste .01902 .01902 .01902 .01902 TOTAL M.V. RATE .04915 .11288 .01902 .10338 TOTAL TAX CAP. RATE 130.637 137.715 138.806 131.309 LAST YEAR (PAY 96) 138.901 141.669 139.276 133.196 COMMERCIAL- INDUSTRIAL Effective rate is applied to market value. EFFECTIVE TAX RATE %- 1997 6.2102 6.5001 6.4411 6.2859 EFFECTIVE TAX RATE %- 1996 6.4867 6.6686 6.4558 6.3814 APARTMENTS Effective rate is applied to market value. EFFECTIVE TAX RATE %- 1997 4.4908 4.7952 4.7384 4.5679 EFFECTIVE TAX RATE %- 1996 4.7842 4.9718 4.7540 4.6673 HOMESTEAD TAX -1997 ANOKA OSSEO ROBBINS- BROOKLYN ISD #11 ISD #279 DALE CENTER ISD #281 ISD #286 @ $60,000 value $ 813 $ 894 $ 844 $ 850 @ $75,000 value $1,056 $1,159 $1,097 $1,102 @ $90,000 value $1,455 $1,589 $1,516 $1,511 @ $120,000 value $2,254 $2,449 $2,355 $2,330 @ $200,000 value $4,383 NIA $4,591 N/A BROOKLYN CENTER TAX ON A $77,700 RESIDENTIAL HOMESTEAD IN 1997 OSSEO SCHOOL DISTRICT MISC. $55.54 - 4.5% c ' COUNTY CITY $310.98- 25.1% `" ' $ 274.18 - 22.2% b VI Y a" SD 279 $595.56 - 48.2% i TOTAL TAX ON A $77,700 PROPERTY IN BROOKLYN CENTER OSSEO SCHOOL DISTRICT $6,000 $5,182 $5,051 $5,000 $4,000 $3,863. $3,726 0 $3,000 $2,652 $2,549 a� z $2,000 I $1,162 $1,236 $1,000 ME i $0 Comm /Ind. Apartment Res. NHS Res. HS Pro perty Ty _ r W 199 ■ 1 997 I SPRING 1997 RESIDENTIAL' RATIO STUDY 3/97 MUNICIPALITY # SALES MEDIAN MEAN COD MUNICIPALITY # SALES MEDIAN MEAN COD ISOMINGTON 749 94.1% 95.1% 6.1 MEDINA 32 94.6% 93.1% 6.0 BROOKLYN CENTER 274 93.4% 94.1% 4.4 MINNEAPOLIS BROOKLYN PARK 645 93.2% 93.7% 5.7 MINNETONKA 502 94.7% 94.8% 7.3 CHAMPLIN 238 93.1% 93.4% 5.6 MINNETONKA BEACH 5 95.2% 94.8% 4.2 CORCORAN 44 93.4% 93.1% 7.0 MINNETRISTA 35 94.1% 95.3% 9.0 CRYSTAL 300 94.0% 94.6% 6.0 MOUND 143 94.9% 94.5% 6.9 DAYTON 45 93.3% 92.9% 6.1 NEW HOPE 197 93.9% 93.8% 4.9 DEEPHAVEN 47 94.0% 94.4% 5.8 ORONO 122 93.8% 92.6% 11.3 EDEN PRAIRIE 689 94.2% 94.2% 4.9 OSSEO 16 93.1% 93.1% 4.3 EDINA 576 93.1% 93.4% 7.6 PLYMOUTH 689 93.5% 93.5% 5.8 EXCELSIOR 25 94.6% 95.8% 6.2 RICHFIELD 383 93.6% 94.1% 5.6 GOLDEN VALLEY 237 93.4% 94.2% 5.3 ROBBINSDALE 241 93.5% 93.6% 4.2 GREENFIELD 14 94.2% 93.9% 6.7 ROCKFORD 4 93.7% 94.9% 2.6 GREENWOOD 12 94.0% 92.1% 5.0 ROGERS 12 93.8% 91.5% 4.6 HANOVER 0 ST ANTHONY 50 94.4% 95.5% 5.4 SSAN 17 95.6% 96.3% 4.3 ST SONIFACIUS 12 93.5% 95.7% 3.9 KINS 92 93.5% 93.5% 7.9 ST LOUIS PARK 557 94.5% 94.8% 5.0 INDEPENDENCE 22 94.8% 95.7% 5.2 SHOREWOOD 84 93.3% 92.7% 6.6 LONG LAKE 30 94.1% 93.5% 3.6 SPRING PARK 7 94.0% 93.0% 4.7 LORETTO 5 95.2% 95.2% 5.3 TONKA BAY 25 96.5% 94.3% 6.3 MAPLE GROVE 559 93.8% 94.1% 5.0 WAYZATA 35 95.7% 94.3% 6.5 MAPLE PLAIN 27 94.1% 92.6% 5.4 WOODLAND 5 93.4% 92.2% 5.6 MEDICINE LAKE 4 93.9% 93.0% 3.3 SUBURBAN HENNEPIN** 7,807 93.8% 94.1% 5.9 'PROPERTY TYPES: B,BJ,D,DJ,P,R,RL - - - 1'77'1997EMV / 10 -95 THRU 9 -96 SALES ""TOTAL FIGURES (EXCEPT SALES) ARE WEIGHTED MUNIC AVERAGES