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Home My WebLink About1996 04-15 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 Fifteenth day of April at 00 o'clock P • M., has been fixed as the date for the meeting of the Board of R MM— I sm� an 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 Twenty Second dayof January ,19 County Assessor Hennepin County, Minnesota * Applies only to Cities whose charter provides for a Board of Equalization insteaH of a Board of Review. Filed in my office this n day of �U "Z , 19 t (JW) WDI f Clerk. Poucher, Mpis. I CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER BOARD OF EQUALIZATION April 15, 1996 7 p.m. 1. Call to Order 2. Roll Call 3. Statement of Board of Equalization 4. Review of Minnesota Property Tag System 5. City Assessor's Report 6. Appearances by Taxpayers with Appointments 7. Appearances by Taxpayers without Appointments 8. Consideration of Written Appeals • 9. Motion to Affirm the Balance of the Assessment 10. Adjournment 0 MEMO To: Michael McCauley, City Manager From: Stephen L. Baker, City Assessor Subject: 1996 Local Board of Review Date: April 4, 1996 RE: 1996 Local Board of Review - April 15,1996 7:00 pm Minnesota Statutes, Section 274.01 provides that the governing body of each city shall be the local board of review. The board has the responsibility to review the assessed valuation and classification of property within the city. This review is limited to the assessment pending for the current year. The review by the board should focus on value, not 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 are 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 one percent. Should this occur. than none of the changes will be allowed. This limitation does not apply to clerieal corrections. 3. The local board of review does not have the authority to reopen previous assessments. Eg. The assessment for the taxes payable in the year the board meets. 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. • Michael McCauley, City Manager Page 2 April 4, 1996 I would propose that the meeting follow an agenda as follows: 1. Meeting called to order, roll call. 2. Statement of Purpose of Board of Review. 3. Review of Minnesota Property Tax System. 4. Assessors Report 5. Appearances by taxpayers with appointments. 6. Appearances by taxpayers without appointment. 7. Consideration of written appeals. 8. Motion to affirm the balance of the assessment. i 9. Adjourn Previous Board of Review The 1995 board of review heard appeals from six property owners. Four of these properties were residential, one was commercial and one was a n apartment. A reduction in one residential value was granted. Review of 1996 Assessment and Real Estate Market Residential - Detached As discussed in a previous memo the real estate market for homes in Brooklyn Center was relatively robust in 1995. Overall growth in sale prices from the previous year was measured at plus 4.6% range city wide. Some individual neighborhoods experienced growth in property values exceeding 6 %. The Regional Multiple Listing Service of the local Boards of Realtors reported median sale prices in Brooklyn Center increased 4.2% from 1994 to 1995. It also reported that average (mean) sale prices increased 4.7% in the same period. This MLS data is based on 291 sales in 1995 and 345 sales in 1994. The number of sales analyzed by the assessor • for the 1996 residential assessment was 333. • Michael McCauley, City Manager Page 3 April 4, 1996 Condominium The Beach Condominiums evidenced rapidly improving marketability and increasing property values in 1995. This resulted in an increase in the average assessed value for 1996 of approximately 15 %. Riverfront Properties This was another submarket evidencing strong resale values and also resulted in increases in assessed value which exceeded the city wide norms. Increases in the assessed value of the riverfront land values typically resulted in increases of the overall assessed value of these properties of approximately 10 %. Commercial The commercial market is beginning to show areas of strength, however, declines in some of the • cities larger retail properties offset these increases and resulted in an overall decline in commercial valuation of approximately 2.7 %. Industrial The strongest non - residential market segment. While there were no sales of these properties in Brooklyn Center in 1995 the market evidenced improvement through decreased vacancies and higher rents. Also, sales. in other Twin Cities suburbs evidenced increasing values and marketability. This group of properties increased in value approximately 7.4% in 1995. Apartments A number of Brooklyn Center apartment complexes transacted in 1994 -1995. These included Four Courts - Summerchase, Brookdale Ten - Twin Lake Manor, Timber Ridge - Melrose Gates, The Pines, Humboldt Square. Few of these sales were considered open market - arms length transactions and they were not included in the Department of Revenue Ratio Studies. These sales do evidence a commitment on the part of the private sector to multi - housing in Brooklyn Center and it is felt that new ownership of these properties will help bring a new stability to this market. The assessed values of apartment properties in Brooklyn Center increased by approximately 3% from 1995 to 1996. However, many apartment property values were reduced by 3% to 3.5 %, but • since some larger, newer or re- habbed properties experienced value increases this year the group as a whole showed an increase.. • Michael McCauley, City Manager Page 4 April 4, 1996 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 to either to the land values, or when required, additional adjustments are made to the computerized rate tables employed by the LAMA. system which calculates the building values. This computer assisted mass appraisal system allows the assessors office to value properties according to their individual characteristics. Examples 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 measures Y P for mass appraisal accuracy and uniformity. Apartment S The apartment assessment is based on a combination of market sale activity and also analysis of the rental market. Even in ears without adequate sale information changes in rental rates and Y q e occupancy levels are valid .accurate measures of changes in value. These properties p Y � are sold p g p 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. Typically the commercial real estate market is most useful for following market trends rather than providing direct sales comparables. What are typical investor expectations? What are typical investor yield requirements for different market segments? These are two k u provide some guidance. The o e questions where market activity can rov d u key Y p g 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 owner by phone or in the assessor's office. Michael McCauley, City Manager Page 5 April 4, 1996 Review Procedures (Informal, Continued.) 2. Provide owner with nearby assessed values and/or sales of homes similar to theirs'. 3. Suggest owner have a market evaluation provided by a local Realtor. 4. Review by physically inspecting the property and re- calculating the value based on characteristics gathered in the new inspection. Formal 1. Local Board of Review 2. County Board of Equalization 3. Minnesota Tax Court 4. Abatement Summary The 1996 board of review may be somewhat more active than in recent years due to the increased • valuations required this year to maintain pace with the market. The assessors office will make every effort to resolve all 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 assessors office will have an appraisal prepared which 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 too difficult to decide may be affirmed. The property owner may then continue on to the county board of review. The county assessors office will then perform an appraisal and a reduction will be offered if one is warranted. If not, the owner may withdraw or continue on to be heard by the county board of equalization. • X. TO ..:::.:::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::. >:.,.... E �GE ity Wide (Includes ail property types) 2,7°fe City Wide (SrngleFam�I Detached�Jnlyj Commercial -2.7% Industrial 47.4°/6 Apartments +3.0% ondominiuns fo i • 15.1 Co-ops 0.0% Townhouses..... 0.5°fo Double Bungalows -4.0% esident�al l�Te�ghborhoods #51 North West +5.0% #52 North East +4.0% #53 West Central +4.4% #54 South East +4.5% #55 South West +6.2% Riverfront +10 No • Changes in Residential are numerous and varied. They are as follows: Styles Rambler +4% under 1,200 sq. ft. no change over 1,200 sq. ft. SE /SF +2% at 800 sq. ft. and +5% at 1,250 sq. ft. and over. S/L + 6 % at 1,150 sq. ft., + 4% at 1,400 sq. ft. , and + 2 % at 2,000 sq. ft. 1 1/4 Exp. +11 % at 500 sq. ft., +6% at 700 sq. ft., and no change over 900 sq. ft. 1 1/2 Exp. +5% at 500 sq. ft., +2% at 800 sq. ft., and no change over 1,100 sq. ft. Locational Highway /Freeway -3% Apartments +2% Thru Traffic + 1 % Commercial /Industrial -1 % Railroad -1 % Park + 1 % Townhouses Evergreen Estates + .9% Rosemary Terrace + 1.8% Humboldt Square + .4% Riverwood -.3% Brookwood Estates + 3.3% Northbrook Estates -11.6% Madsen Floral + 7.8% Moorwood + 4% Hi -Crest + 4% Earle Brown Farm Estates -1.9% Earle Brown Farm Townhouses + 3.8% Creek Villas -2% Mallard Creek + .4% Condominiums The Beach Condo's were inspected this year and resulted in various changes depending on the unit size and what updates were made. The overall change was a + 15% • CITY OF BROOKLYN CENTER 1996 TAX CAPACITY RATES Area Wide Ratio: .3 05 3 52 ANOKA OSSEO ROBBINS- BROOKLYN Area Wide Rate: 141.441 ISD #11 ISD #279 DALE CENTER ISD #281 ISD #286 SCHOOL 64.387 67.155 64.762 56.682 COUNTY 37.270 37.270 37.270 37.270 CITY (INCLUDES HRA) 30.344 30.344 30.344 30.344 MISCELLANEOUS 6.900 6.900 6.900 6.900 M.V. RATES SCHOOL .04289 .13642 0 .11994 SOLID WASTE .01865 .01865 .01865 .01865 TOTAL M. V. RATE .06154 .15507 .01865 .13859 TOTAL TAX CAP. RATE 138.901 141.669 139.276 133.196 LAST YEAR (PAY 95) 136.304 145.044 142.099 151.763 COMMERCIAL - INDUSTRIAL Effective rate is applied to market value. EFFECTIVE TAX RATE % 1996 6.4867 6.6686 6.4558 6.3814 EFFECTIVE TAX RATE % 1995 6.2496 6.5334 6.4378 6.7515 APARTMENT Effective rate is applied to market value. EFFECTIVE TAX RATE 1996 4.7842 4.9718 4.7540 4.6673 EFFECTIVE TAX RATE 1995 4.6343 4.9315 4.8314 5.1599 HOMESTEAD TAX ANOKA OSSEO ROBBINS- BROOKLYN ISD #11 ISD #279 DALE CENTER ISD #281 ISD #286 @ $60,000 value $ 870 $ 943 $ 847 $ 882 @ $75,000 value $1,130 $1,221 $1,100 $1,143 t1 @ 90,000 value $1,556 $1,670 $1,521 $1,503 20,000 value $2,407 $2,566 $2,362 $2,404