HomeMy WebLinkAbout04-23-2018 Board of AppealsThe following is the agenda for the Board of Appeals & Equalization meeting to be held at 6:00 PM on
Monday, April 23, 2018 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights,
Minnesota.
1. CALL TO ORDER
2. ROLL CALL
3. STATEMENT OF PURPOSE OF THE BOARD OF REVIEW
To review property valuations as of January 1, 2018, for taxes payable 2019, and to hear appeals from
citizens who feel aggrieved or have questions regarding property valuations.
4. INTRODUCTION
The City Manager will introduce the Anoka County Appraisers
5. QUESTIONS AND ANSWERS REGARDING PROPERTY VALUES
Citizens in attendance will be given an opportunity to raise questions regarding their property valuations.
6. COUNCIL ACTIONS REGARDING SPECIFIC CASES OR CASES ON WHICH ADDITIONAL INFORMATION IS
REQUIRED.
The Council may at this time take action regarding any of the properties that were discussed or instruct
the County Assessor's Office to provide more information at a continued meeting.
Recommended Motion: Move to adopt the 2017 Assessment Rolls as presented
Alternate Motion: Move to continue the Board of Appeals and Equalization meeting to
for the purpose of hearing additional information regarding only those property
values appealed on April 24, 2017 and to consider adoption of the 2017 Property Assessment Rolls.
12. ADJOURNMENT
Auxiliary aids or other accommodations for disabled persons are available upon request when the request is made at
least 48 hours in advance. Please contact the City Clerk at 763 - 706 -3611 or kbruno@coiumbiaheightsmn.gov, to make
arrangements.
Mayor
F`',J COLUMBIA M B I A
0
Donna Schmitt
Councilmembers
44���
HEIGHTS
Robert A. Williams
John Murzyn, Jr.
City f Columbia Heights
y g
59040 Avenue NE, Columbia Heights, MN 55421 -3878 (763) 706 -3600 TDD (763) 706 -3692
Connie Buesgens
Nick Novitsky
City Manager
Visit our website at: www.columbiaheightsmn.gov
Walter R. Fehst
The following is the agenda for the Board of Appeals & Equalization meeting to be held at 6:00 PM on
Monday, April 23, 2018 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights,
Minnesota.
1. CALL TO ORDER
2. ROLL CALL
3. STATEMENT OF PURPOSE OF THE BOARD OF REVIEW
To review property valuations as of January 1, 2018, for taxes payable 2019, and to hear appeals from
citizens who feel aggrieved or have questions regarding property valuations.
4. INTRODUCTION
The City Manager will introduce the Anoka County Appraisers
5. QUESTIONS AND ANSWERS REGARDING PROPERTY VALUES
Citizens in attendance will be given an opportunity to raise questions regarding their property valuations.
6. COUNCIL ACTIONS REGARDING SPECIFIC CASES OR CASES ON WHICH ADDITIONAL INFORMATION IS
REQUIRED.
The Council may at this time take action regarding any of the properties that were discussed or instruct
the County Assessor's Office to provide more information at a continued meeting.
Recommended Motion: Move to adopt the 2017 Assessment Rolls as presented
Alternate Motion: Move to continue the Board of Appeals and Equalization meeting to
for the purpose of hearing additional information regarding only those property
values appealed on April 24, 2017 and to consider adoption of the 2017 Property Assessment Rolls.
12. ADJOURNMENT
Auxiliary aids or other accommodations for disabled persons are available upon request when the request is made at
least 48 hours in advance. Please contact the City Clerk at 763 - 706 -3611 or kbruno@coiumbiaheightsmn.gov, to make
arrangements.
ANOKA
COUNTY
201
ASSESSOI
REPO
BOARD OF APPEAL
BQUALIZA
Anoka County
Agenda
City of Columbia Hei
2018 Local Board of Appeal and Equalization
April 23rd, 2018
1. Call the Board of Review to Order
2. Roll Call
3. Read Official Notice of the Board of Review
4. Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for each
local board but should include:
• Purpose of the meeting,
• Remind property owners that only appeals for the current year valuation or
classification may be made. The 2018 board is to review the assessment as of
January 2, 2018, which will be used to compute the property taxes payable in 2019.
Prior years' assessments or taxes (including taxes payable in 2018) are not within
the jurisdiction of the board;
• The order of the appellants - by appointment first, followed by walk -ins on a first -
come basis. The board will also receive written appeals from property owners. The
secretary will record the required information (name, mailing address, telephone
number, and address of property, etc.)
• The expectations of the appellant when presenting their appeal (i.e. the appeal
must be substantiated by facts; where the appellant should stand or sit; the
appellant should be prepared to answer questions posed by the board, etc.);
• Time limits imposed (if any);
• The procedure the board will follow for making decisions (Will the board hear all
appeals before making any decisions? Will the board send a letter to appellants to
inform them of the decision? Etc.) The Board may correct any erroneous valuation
and add any omission of properties or increase of value after due process. The total
decrease of valuations may not exceed one percent of the total valuation of the
taxing district,
S. The Board Chair should give the assessor the opportunity to present a brief overview of the property
tax process and a recap of the current assessment.
6. Appellants should then present their appeals to the board. If the assessor has had a chance to review
the property prior to the meeting, the assessor can present facts and information either supporting
the valuation and or classification, or recommend that the board make a change. If the assessor has
not had a chance to review the property prior to the meeting, the board may ask the assessor to
review the property and present his /her findings to the board at a reconvene meeting.
Recess or Close the Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of
Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as
specified in the notice of the clerk, unless a longer period is approved by the Commissioner of Revenue. No action taken
subsequent to such date shall be valid.)
Anoka Coun
of Columbia Heights
Understanding Your Assessment and Appeal Options
Assessment Process Timeline
In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of the
assessment date of January 2nd. Each year's assessment is based on arms - length transactions (sales that
meet the criteria of an open market transaction, see market value definition below) that occurred the
previous October thru September. When the assessment is completed the local taxing jurisdictions begin
their budgeting process for the following year. They use the total assessment to determine their tax base
and develop their tax rates (formerly referred to as mill rates). All aspects of the assessment, including but
not limited to the assessment date, sales period for each assessment and property tax classification are
dictated by state statute and under the oversight of the Minnesota Department of Revenue.
Market Value Defined
As in private appraisal, Market Value is defined as:
The most probable price thata propertyshould bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this
definition are the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby.
• buyer and seller are typically motivated:
• both parties are well informed or well advised, and acting in what they
consider their own best interests;
• a reasonable time is allowed for exposure in the open market;
• payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto,
• the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale (a foreclosure sale or a short sale [a sale to
avoid foreclosure] is not considered an arms- length transaction).
Mass Appraisal Defined
Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass appraisal
is the practice of determining individual values based on statistical analysis of a group of sales for a large
area. The values are determined as of a specific date and are based on arms - length transactions that
occurred during a specified sales period.
Anoka County
of Columbia Heights
Sales Statistics Defined
We have the ability by using statistical analysis to test the accuracy of the assessment. We use these
statistics to ensure equity between properties at the neighborhood, municipal and county levels. The
Minnesota Department of Revenue also uses these same techniques to test for equity between counties.
The primary statistics used are:
Median Ratio: This is a measure of central tendency that is the midpoint of a group of sales
ratios when arrayed from low to high. The median is a useful statistic as it is not affected
by extreme ratios.
Aggregate Ratio: This is the total market value of all sale properties divided by the total sale
prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city,
we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin
to account for a fluctuating market and still maintain ratios within state mandated
guidelines. Also referred to as the Weighted Mean.
Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment
level, but also to analyze property values by development, type of dwelling and value range.
These studies enable us to track market trends in neighborhoods, popular housing types
and classes of property.
Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is
possible to have a median ratio of 93% with 300 sales, two ratios at 93 %,149 at 80% and
149 at 103 %. Although this is an excellent median ratio, there is obviously a great
inequality in the assessment. The COD indicates the spread of the ratios from the mean or
median ratio.
The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent
and anything over 20 will mean an assessment review by the Department of Revenue.
Price Related Differential (PRD): This statistic measures the equality between the
assessments of high and low valued property. A PRD over 100 indicates a regressive
assessment, or the lower valued properties are assessed at a greater degree than the higher.
A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD
of 100 means that both higher and lower valued properties are assessed exactly equal.
Appeals Procedure
Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with
the Notice of Valuation and Classification. Three factors that affect the tax bill are:
1. The amount your local governments (town, city, county, etc.) spend to provide services to your
community;
2. The estimated market value of your property;
3. The classification of your property (how it is used).
The assessor determines the final two factors. You may appeal the value or classification of your property
as described on the next page.
Anoka County City of Columbia Heights
Informal Appeal
• Property owners are encouraged to call the appraiser or assessor whenever they have questions
or concerns about their market value, classification of the property, or the assessment process.
• Almost all questions can be answered during this informal appeal process.
• When taxpayers call questioning their market value, every effort is made to make an appointment
to inspect properties that were not previously inspected.
• If the data on the property is correct, the appraiser can show the property owner other sales in the
market that support the estimated market value.
• If errors are found during the inspection, or other factors indicate a value reduction is warranted,
the appraiser can easily make the changes at this time.
Local Board of Appeal and Equalization
• The Local Board of Appeal and Equalization is typically made up of city council members or
township board members. In certain cases, a special board is appointed and is typically consists of
real estate professionals.
• The Board meets during late April and early May.
• Taxpayers can make their appeal in person or by letter.
• If an interior inspection is denied no adjustment can be made to value per MN Statute.
• The assessor is present to answer any questions and present evidence supporting their value.
County Board of Appeal and Equalization
• In order to appeal to the County Board of Appeal and Equalization, a property owner must first
appeal to the Local Board of Appeal and Equalization.
• The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization
in the assessment appeals process.
• Again, if an interior inspection is denied no adjustment can be made to value per MN Statute.
• Their role is to ensure equalization among individual assessment districts and classes of property.
• Decisions of the County Board of Appeal and Equalization can be appealed to the Minnesota Tax
Court.
Minnesota Tax Court
The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be
the sole, exclusive and final authority for the hearing and determination of all questions of law and fact
arising under the tax laws of the state. There are two divisions of tax court: the small claims division and
the regular division.
The Small Claims Division of the Tax Court only hears appeals involving one of the following situations:
• The assessor's estimated market value of the property is <$300,000
• The entire parcel is classified as a residential homestead and the parcel contains no more than one
dwelling unit
• The entire property is classified as an agricultural homestead.
• Appeals involving the denial of a current year application for homestead classification of the
property.
The proceedings of the small claims division are less formal and property owners often represent
themselves. There is no official record of the proceedings. Decisions made by the small claims division
are final and cannot be appealed further. Small claims decisions do not set precedent
Anoka
City of Columbia Heights
The Regular Division of the Tax Court will hear all appeals, including those with the jurisdiction of the
small claims division. Decisions made here can be appealed to a higher court
The principal office for the Tax Court is in St. Paul. However, the Tax Court is a circuit court and can hold
hearings at any other place within the state so that taxpayers may appear with as little inconvenience and
expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka
County Courthouse, with trials scheduled to begin on Thursdays. Three judges make up the Tax Court. Each
may hear and decide cases independently. However, a case may be tried before the entire court under
certain circumstances.
The petitioner must file in tax court on or before April 30 of the year in which the tax is payable.
Anoka County
City of Columbia Heights
Columbia Heights Assessment Overview
fnlumbia Heights Assessment Staff
Name
Position
License Level
ResponsibBity
Ben Hamill
Residential A raiser
CMA
Residential 1 -3 Units
ames Hughes
Residential A raiser
CMA
Residential 1 -3 Units
Theodore Anderson
Residential A raiser
CMA
Residential 1-3 Units
Shawn Halli pm
Senior A raiser
CMA - Income Qualified
Apartments
John Leone
Senior A raiser
AMA
Commercial Industrial Exem t
Alex Guggenberger
CountyAssessor
SAMA
Countywide Oversi t
Citv of Columbia Heights Proverty Breakdown
PropertyType
Number of Parcels
Vacant Residential
84
IIn roved Residential
6,847
ApVment accent & Improved)
127
Commercial Industrial 04cant & lm proved
240
Railroad
2
Total
7,300
2018 Assessment
As part of this mass appraisal process, all properties are re- valued annually based on the information on
record. Properties are physically inspected and property records reviewed once every 5 years (as
statutorily required). This is an ongoing process whereby 20% (referred to as quintile) of a city is inspected
each year so that in a cycle of 5 years all properties have been inspected at least once. In addition to this
quintile review, properties are also inspected when there is a building permit issued or at the request of the
property owner. The sale of a property does not initiate a reassessment. The map on the next page depicts
the residential quintile plan for the next 5 years.
Anoka County City of Columbia Heights
Columbia Heights
5 Year Quintile Map
L
Q ante Q aW
F= as'e Q am an
Anoka County City of Columbia Heights
As stated earlier, Minnesota state law governs the assessment date, which is January 2nd of each year, as
well as the sales periods associated with each assessment date.
The 2017 assessment which was used for tax calculations this year (2018) was based on transactions that
closed between October 1, 2015 and September 30, 2016. Property owners were notified of their 2017
value on their Notice of Valuation and Classification (also referred to as a valuation notice). The notices
were mailed out in March of 2017 in the same envelope as the tax statement. The appeals process took
place at the municipal level during the month of April of 2017 and at the county level in June of 2016. At
this point, if a property owner wishes to appeal their 2017 assessment (for taxes payable 2018) their only
option is to file a tax court petition. This must be done no later than April 30, 2018.
The 2018 assessment was completed in February and the valuation notices were mailed the week of March
12th. The 2018 assessed value will be used for tax calculation purposes next year. The sales period
associated with this assessment is October 1, 2016 thru September 30, 2017. As with past assessments, the
local appeals process will begin in April and finish up in June. The options and requirements to appeal this
assessment are listed on the back of the valuation notice. If a property owner has an issue with their 2018
assessment, the first thing they should do is contact their local assessor. The phone numbers are listed on
their valuation notice.
Please note that only arms - length sales that closed between October 1, 2016 and September 30, 2017 have
been used to determine valuations for the 2018 assessment, for taxes payable in 2019.
The following chart may be helpful in following the timeline of your assessment
October 1, 2014
to January 2, 2016 2017
September 30, 2015
October 1, 2015
to January 2, 2017 2018
September 30, 2016
October 1, 2016
to January 2, 2018 2019
September 30, 2017 - -
Anoka County City of Columbia Heights
We are aware that due to the time frames we are required to work within it sometimes appears as though
the assessor's estimated market value does not represent the market It seems lower than it should be
during times of inflation and higher than it should be in times of deflation. The following chart illustrates
the relationship between assessed values and actual sale prices; and how the assessor's market values have
been following the changes as they occur in the open market.
Note: The Median Assessor's Estimated Market Value represents the homes that are in the sales study.
One important thing to remember is the assessment process is completed before the budgeting process
begins. Assessors do not adjust values in order to increase revenue. There is little correlation between
changes in assessments due to market changes and how the resulting real estate tax changes. When we
adjust assessments due to market conditions, all properties are adjusted. The only time that an adjustment
in an assessor's estimated market value will have an impact on the increase or decrease in tax is if the change
in value is due to value added for new construction or value removed due to demolition /destruction of an
improvement.
2018 Sales Statistics - Residential
The table below uses various sales metrics to compare how the residential market in Columbia Heights
performed compared to the rest of the county. The sales study figures were gathered using Northstar MLS
data.
Metric
Columbia HejEftjs
Countywide
Average Sale Price & % Change ffOY)
$185,300 +9.19%
$250,700 +6.95%
Median Sale Price % Change 0
$186,000 +10.65%
$228,600 +6.33%
Median Days on Market (DOM)
19
26
# of Sales & % Change O
_350t-8.38%)
6,172 +4.03%
# of Arm's Length Sales & % Change O
334 -1.18%
5,855 +8.77%
# of Non -Arm's Length Sales & % Change 0
16(-63 640/,
317 - 42.36%
Anoka County
City of Columbia Heights
2018 Sales Ratio Statistics
The tables below display the final adjusted sales ratios for Residential, Apartments, Commercial, and
Industrial properties. All the numbers are within State of MN requirements and indicate a high - quality
assessment with good equalization.
Residential
Coun 'de A artments
city
Ratio
COD
PRD
City
# Sales
Ratio
COD
Andover
94.48%
5.91
1.00
Anoka
4
94.50%
-
Anoka
94.65%
6.74
1.01
Blaine
4
96.97%
-
Bethel
95.64%
5.46
1.00
Columbia Heights
5
92.36%
-
Blaine
94.38%
6.01
1.01
Coon Rapids
2
90.14%
-
Centerville
94.68%
8.58
1.03
Fridlev
7
98.14%
6.17
Circle Pines
94.22%
5.95
1.00
Spring Lake Park
6
93.31%
4.75
Columbia Heights
94.22%
8.78
1.01
1COUNTYWIDE
72R
94.19%
5.95
Columbus
94.82%
7.23
1.01
Coon Rapids
94.39%
5.41
1.00
Coun 'de Commercial
East Bethel
94.06%
11.99
1.04
Ci
# Sales
Ratio
COD
Fridley
94.36%
7.92
1.02
Blaine
8
95.36%
12.89
Ham Lake
94.36%
7.68
1.01
COUNTYWIDE
29
95.29%
12.92
Hilltop
86.45%
-
-
Lexington
93.52%
7.65
1.01
Coun 'de Industrial
Lino Lakes
94.33%
6.12
1.01
City
# Sales
Ratio
I COD
Linwood
94.67%
10.73
1.01
No Stand -Alone Cities
Nowthen
94.38%
7.79
1.01
COUNTYWIDE
26
94.58%
7i8j
Oak Grove
94.38%
7.61
1.01
Ramsey
94.66%
5.36
1.01
Spring Lake Park
94.06%
7.35
1.01
St. Francis
94.24%
9.21
1.02
COUNTYWIDE
94.44%
6.67
1.01
10
Anoka County City of Columbia Heights
Market Value History
The graphs below indicate how aggregate values have changed over the last 5 years for each of the four
largest property types.
Residential
$1,500,000,000
$1,000,000,000
$500,000,000
2014 2015 2016 2017 2018
Commercial
Apartment
$150,000,000 y
$100,000,000 y
I ,f
$50,000,000
$_ _.
u t
2014 2015 2016 2017 2018
Industrial
$90,000,000 $20,000,000
$85,000,000 $15,000,000
$80,000,000 �' $10,000,000 i
f II f -�� I • II , y 4
$75,000,000 1�i u� $5,000,000 +
$70,000,000 $
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Columbia Heights Total EMV
$2,000,000,000
$1,500,000,000
•ii
$1,000,000,000 II 4=a
$500,000,000
$_
2014 2015 2016 2017 2018
2018 Market Value Statistics & New Construction
The tables below indicate the percentage change (YOY) for each of the four largest property types as well as the total
market value. The increase due to New Construction (NC) is also included in the table below.
Property Type
2018 EMV
% Increase
o Increase Due to NC
Residential
$1,215,728,100
8.17%
.23%
Apartment
$141,598,500
35.72%
26.92%
Commercial
$86,005,800
3.16%
2.38%
Industrial
$14,551,700
20.98%
0%
Total EMV
$1,457,884,100
10.15%
2.47%
It