[PAGE 1] 1. Call To Order 2. Roll Call 3. Agenda Documents: 3 AGENDA.PDF 4. Minutes - April 20. 2021 Documents: 4 MINUTES - LBAE MEETING - APRIL 21, 2021.PDF 5. Member Certification 6. Report From William Effertz, Steele County Assessor Documents: 6 REPORT - WILLIAM EFFERTZ-STEELE CO ASSESSOR.PDF 7. Public Comments 8. 2022 Property Owner Appeal List Documents: 8 2022 PROPERTY OWNERS APPEAL.PDF 9. Adjourn [PAGE 2] 3 Administrative Services Department Board of Appeal & Equalization Meeting Tuesday, April 19, 2022 6:00 o'clock P.M. Council Chambers at City Hall A G E N D A 1. Call to Order 2. Roll Call – Council Members Boeke, Dotson, Burbank, Raney, Svenby, Voss and Schultz Mayor Kuntz 3. Approve Agenda 4. Minutes – 2021 LBAE Meeting (Information only, Council approved 2021 LBAE Minutes during the May 4, 2021 City Council Meeting) 5. Member Certifications 6. Report from William Effertz, Steele County Assessor 7. Public Comment 8. 2022 Property Owner Appeal List 9. Adjournment 540 WEST HILLS CIRCLE | OWATONNA, MN 55060-4701 | OWATONNA.GOV | 507.774-7341 [PAGE 3] 4 2021 MINUTES LOCAL BOARD OF APPEAL & EQUALIZATION CITY OF OWATONNA Council President Schultz called the meeting for the Local Board of Appeal and Equalization (LBAE) to order at 6:00 p.m. on Tuesday, April 20, 2021 in Council Chambers at City Hall. Present were: Council Members Okerberg, Dotson, Burbank, Raney, Svenby, Voss and Schultz; Mayor Kuntz; Steele County Assessor William Effertz; Steele County Assistant Assessor Brock Nelson; City Administrator Busse and Administrative Specialist Clawson. Council Member Raney made a motion to approve the agenda, Council Member Svenby seconded the motion, all members voted aye in approval. City Administrator Busse explained State Statute requires at least one voting member of the Council be certified with the Department of Revenue for completing an LBAE training course within the last four years. Current certifications are held by Council Members Okerberg, Svenby and Voss. County Assessor Effertz Council presented the 2021 City of Owatonna Assessment Report prepared by the Steele County Assessor’s Department. Their office analyzes real estate sales during a 12-month period to modify the mass appraisal system to the current market as well as to improve equalization amount properties. Sales from October 1, 2019 – September 30, 2020 were used to complete the 2021 Report and analyzed for market trends and assessment to sale ratio. Effertz explained the purpose of the LBAE is to provide a fair and objective forum for property owners to appeal their valuation and/or classification. The goal of the LBAE is to address property owner’s issues fairly and objectively. The objective of the assessor is to be both accurate and uniform. There are three reasons that valuations change each year: 1. Market adjustments due to the ever-changing market conditions of the real estate market. Different types of real estate changes at different rates. 2. Even in a stable market, property values will change due to equalization. If a property value based on analysis of sales, is thought to be under or over assessed, either in relation to other properties or to a range of acceptable guidelines, the valuation may increase or decrease. 3. New improvements. The Commissioner of Revenue requires all property types be assessed between 90-105% of selling price. Any assessment by aggregate property type that is outside of this range will be adjusted accordingly by the State Board of Appeal and Equalization. Percentage of Property Types within the City for 2021 Estimated Market Values are: Residential 71.69% Commercial & Industrial 20.54% Apartments 5.94% Agriculture Land 1.64% Manufactured Home Park (land) .19% In comparison to 2020 Assessment Statistics, there was a slight shift due to market changes as the tax shows declining reliance on Ag/Rural and increasing reliance on Residential assessments. [PAGE 4] Minutes - City of Owatonna Board of Appeal & Equalization Tuesday, April 20, 2021 Page 2 of 3 Net Tax Capacity, the effective measurement of the tax base, increased $1.6 million. This reflects the changes in the market valuations plus the addition of new construction which leads to the expanding tax base. Owatonna’s Net Tax Capacity has been on a steady incline over the last five years creating a ripple benefit for everyone. The total Estimated Market Values without New Construction expanded 4.6% to $2.259 billion. Valuations of all property types increased during 2021 (this does not include new construction values): Total Agriculture / Rural 2.57% Total Residental 5.1% Apartments 5.05% Commercial/Industrial 1.3% Industrial 4.32% Estimated Market Value of New Construction was $52,658,200. Miscellaneous 2021 Data: Residential Home Sales: 569 transactions Median Sale Price $187,000; $7,000 increase over previous year Residential Vacant Lot Sales: 30 sales Median Sale Price $ 33,000; $1,100 increase over previous year Residential Estimated Market Value Median Value $182,200; $10,200 increase over previous year Median Value per square foot $144; $10 increase over previous year Number of new homes built 33; 1 more than previous year Assessor Effertz explained property owners have opportunity to appeal their proposed property valuations. Owners’ requests must be presented to the Local Board of Appeal for opportunity to appeal to the Steele County Board of Appeal and Equalization which will be held on June 15, 2021. Prior to tonight’s LBAE meeting, the Steele County Assessor’s Office received valuation protests for 11 parcels within the City and have made these recommendations: PROPERTY ADJUSTED PARCEL ID DEEDHOLDER ADDRESS TYPE VALUE VALUE CHANGE REASON 17-002-4101 David Kranda 2330 Kenyon Rd Residential - $ 50,600 $ 50,600 $0 No Single Dwell Change 17-016-1243 Steven Scholl & Kari 1050 Redwood Pl Residential - $ 162,100 $ 154,900 -$7,200 Value Single Dwell Neumann-Scholl High - Building 17-101-1110 Wayne & Connie 1031 Elm Ave S Residential - $ 172,500 $ 154,100 -18,400 Corrected Whipps and Mark & Single Dwell Condition Cori Whipps 17-297-0103 B A R Partnership 910 Hoffman Dr Com Land/Bld $ 149,400 $ 143,700 -5,700 Value – 1st $150,000 N High - Building 17-305-0108 Robert & Kim Dub 180 Cedar Pl Residential - $ 305,100 $ 305,100 $0 No Single Dwell Change 17-338-0208 ANS Hospitality 150 St John Dr Com Land/Bld $1,230,100 $759,800 -$470,300 Value LLC – 1st $150,000 NW High - Building [PAGE 5] Minutes - City of Owatonna Board of Appeal & Equalization Tuesday, April 20,2021 Page 3 of 3 PARCEL ID DEEDHOLDER ADDRESS PROPERTY VALUE ADJUSTED CHANGE REASON TYPE VALUE 17-536-0107 Brian & Kari Bunkers 1946 Woodcrest Residential - $736,200 $694,800 -$41,400 Value Single Dwell Dr NE High - Building 17-540-0127 Traditions of 195 24th Pl NW Res – 4 or $3,387,800 $ 3,124,700 -$263,100 Value More Units Minnesota, LLC High - Building 17-582-0319 Jeffrey Otto 2490 Fox Hollow Residential - $ 272,900 $272,900 $0 No Change Single Dwell Lane 17-602-0103 Traditions of 150 24th St NE Res – 4 or $ 2,989,000 $2,745,100 -$243,900 Value Minnesota II, LLC More Units High - Building Residential- 17-016-4301 Colin & Charlotte 1003 Lemond Rd Homestead $182,600 $182,600 No Change Not Roetman allowed physical inspection Council Member Okerberg made a motion to accept the 2021 Property Owner Appeal List as presented by the Steele County Assessor’s office, Council Member Svenby seconded the motion, all members voted aye for approval. At 6:19 p.m., a motion was made by Council Member Raney, seconded by Council Member Svenby to adjourn. Dated April 26, 2021 Respectfully submitted, Jeanette Clawson, Administrative Specialist [PAGE 6] 6 2022 C O ITY OF WATONNA A R SSESSMENT EPORT Steele County Assessor’s Department Local Board of Appeal and Equalization April 19, 2022 6:00 p.m. William G. Effertz, SAMA Steele County Assessor Brock Nelson, AMA, Assistant County Assessor [PAGE 7] 2022 Local Board of Appeal and Equalization City of Owatonna 2022 Assessment Report Assessor’s Department Overview The purpose of the Board of Appeal and Equalization is to provide a fair and objective forum for property owners to appeal their valuation and/or classification. During, property owners’ appeals will be dealt with fairly and objectively. When new information is provided, the Assessor will review and will have the option to report any new findings at the reconvene meeting. The Assessor’s office is guided by state law and bound by Statute. For instance, each property is required to be inspected once every 5 years. This is commonly referred to as, “Quintile” or “Quintile Inspections”. Due to Owatonna’s size it is broken down into sections. Each section is inspected once every five years. The breakdown of neighborhoods by year of inspection can be reviewed on the last page of this document. State law requires the assessor to value all property at market value every year. “All real property subject to taxation shall be listed and assessed every year with reference to its value on January 2.” Property owners receive a Notice of Valuation every year in mid to late March. Minnesota Statute 273.121 states, “All real property shall be valued at its market value. In estimating and determining such value, the assessor shall not adopt a lower or different standard of value because the same is to serve as a basis for taxation, nor shall adopt as criterion of value the price for which property would sell at auction or forced sale, or in the aggregate with all the property in the town or district but shall value each article or description of property to be fairly worth in money”. Real property is valued at Market Value. Market value is defined as, “The most probable price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus or duress.” The real estate tax is ad valorem (by value) and based on the value of property and not the owner’s ability to pay. The assessment is updated in a uniform objective manner each year. The assessor analyzes the previous twelve months real estate sales to modify the mass appraisal system to the current market as well as to improve equalization among properties. For the January 2, 2022 assessment, sales from October 1, 2020 to September 30, 2021 were analyzed both for market trends as well as the assessment to sale ratio (assessor’s value divided by the sale price). 2022 City of Owatonna Assessment Report 1 [PAGE 8] There are three reasons that valuations change each year. Market adjustments due to the ever-changing conditions of the real estate market. Different types of real estate changes at different rates. Even in a stable market, property values will change due to equalization. If a property value based on analysis of sales, is thought to be under or over assessed, either in relation to other properties or to a range of acceptable guidelines, the valuation may increase or decrease. The third reason for change is new improvements. The objective of the assessor is to be both accurate and uniform. The Commissioner of Revenue requires that all property types to be assessed between 90 to 105% of the selling price. Any assessment by aggregate property type that is outside of this range will be adjusted accordingly by the State Board of Appeal and Equalization. After tonight’s meeting, if the property owner is still not satisfied with the 2022 assessment, the next step in the appeals process is to make an appointment to attend the: Steele County Board of Appeals and Equalization convenes on June 14, 2022 at 7:00 p.m. at the Administrative Center in Owatonna. Adjustment for Market (Time) Trends Minnesota Department of Revenue, Property Tax Data & Analysis Unit determines if there are any market condition trends occuring in each county. A simple linear regression of sales ratios is run over a 21-month study period to calculate market condition trends. If a trend has significance, the sale prices are adjusted for market conditions (time). For the 2022 assessment this study resulted in the following annual market trends for residential property in Steele County: 2022 City of Owatonna Assessment Report 2 [PAGE 9] 2022 City of Owatonna Assessment Report 3 [PAGE 10] Adjusted Sales Ratio By Jurisdiction Minnesota Statute 273.121 states all property must be valued at its market value. To facilitate this the Department of Revenue mandates the median ratio in each jurisdiction, with an adiquate amount of sales be between 90% & 105%. This ratio is determined by taking the assessed value by the sale price. The chart below displayes each jurisdictions ratios before and after values were adjusted for the 2022 Assessment year. MINNESOTA DEPARTMENT OF REVENUE SALES RATIO STUDY 2020 2021 2022 RESIDENTIAL STATE STUDY BEG SALES FINAL BEG SALES FINAL BEG SALES FINAL 01-BLOOMING PRAIRIE TWP 73.62% 1 93.23% 97.90% 2 1.0295% 89.35% 1 98.56% 02-SUMMIT 92.54% 2 94.92% 92.64% 2 95.68% 0 03-BERLIN 83.44% 10 94.97% 84.85% 5 94.44% 79.98% 5 93.40% 04-AURORA 83.31% 3 93.30% 84.76% 3 93.69% 72.60% 6 91.53% 05-SOMERSET 91.39% 3 94.00% 81.34% 4 86.27% 77.66% 2 97.17% 06-LEMOND 87.04% 3 93.69% 75.67% 3 86.89% 81.60% 4 92.79% 07-HAVANA 92.62% 3 94.36% 81.56% 4 88.45% 81.15% 4 91.15% 08-OWATONNA TWP 99.75% 6 95.79% 89.34% 7 93.75% 74.18% 3 88.92% 09-MERIDEN 92.69% 4 97.54% 0 83.32% 3 93.98% 10-MERTON 86.19% 2 92.87% 84.05% 2 86.78% 86.79% 2 99.57% 11-MEDFORD TWP 81.17% 3 93.43% 69.92% 3 85.67% 77.18% 2 92.27% 12-CLINTON FALLS 89.18% 2 94.47% 74.20% 3 86.32% 75.96% 4 91.49% 13-DEERFIELD 98.00% 3 97.69% 82.47% 2 89.00% 76.56% 5 90.46% 14-BLOOMING PRAIRIE 94.51% 29 95.06% 86.20% 32 92.62% 73.81% 26 92.60% 15-ELLENDALE 90.70% 6 93.21% 89.54% 13 92.91% 73.57% 16 91.75% 16-MEDFORD 87.53% 25 93.17% 86.62% 13 92.68% 78.50% 27 92.93% 17-OWATONNA CITY 87.88% 361 93.74% 87.47% 384 93.58% 74.55% 421 91.07% CITY TOTALS 89.29% 421 93.48% 87.05% 442 92.80% 74.18% 490 92.18% TOWNSHIP TOTALS 89.18% 45 94.36% 83.26% 40 87.67% 78.82% 41 92.53% # OF GOOD RESIDENTIAL SALES 88.13 466 93.79 87.22 482 93.17% 74.64% 531 91.24% % CHANGE -2.31% 3.43% 10.17% TOTAL RES TRANSFERS 712 735 767 % CHANGE -9.30% 3.23% 4.35% 2022 City of Owatonna Assessment Report 4 [PAGE 11] Owatonna 2022 Assessment Statistics While assessor’s do not determine the amount of tax property owners pay, we do determine how the tax liability is distributed amongst properties based upon the market value. The market dynamics of each property class causes shifting of the tax liability between these classes. Because of the classification rates, commercial, industrial and utility properties take the brunt of the annual tax liability when looking only at market value. These pie charts illustrate the shifting due to market changes, al beit the change seems small, the changes can be significant. Note the tax bases declining reliance every classification and increasing reliance on Residential. This is due to the growth in the Residential market outpacing that of the other classifications of property. 2022 City of Owatonna Assessment Report 5 [PAGE 12] The Net Tax Capacity (NTC) is the effective measurement of the tax base. The NTC is the product of applying the statutory class rates to the Estimated Market Values of each property. The NTC reflects the changes in the market valuations plus the addition of new construction which leads to the expanding or contracting tax base. The NTC has been on a steady incline over the last five-years. 2022 City of Owatonna Assessment Report 6 A S Y S M R 2 2 2 2 2 2 0 0 0 0 0 0 T 2 2 2 1 1 1 O 2 1 0 9 8 7 W A T O N 2 2 2 2 1 1 , , , , , , N E 7 3 1 0 9 8 A M 1 1 8 3 2 2 3 7 3 2 4 4 F V , , , , , , 9 0 9 5 5 6 I V 7 9 9 0 4 5 E 5 5 4 9 2 1 Y , 0 , 8 , 2 , 1 , 5 , 6 0 0 0 0 0 0 E 0 0 0 0 0 0 A R % A S C 1 S H 7 6 7 5 5 E G . 1 . 1 . 5 . 6 . 5 S % % % % % S M E N 3 2 2 2 2 2 0 6 4 2 1 0 T N , , , , , , H T 9 5 3 0 6 3 7 4 5 3 2 6 I S C 1 4 0 1 3 7 , , , , , , T 0 0 3 3 6 2 O 3 6 1 7 9 9 2 8 3 8 7 5 R Y % C 1 H 7 6 8 5 6 . . . . . G 7 8 3 6 2 % % % % % [PAGE 13] OWATONNA TOTAL - ESTIMATE MARKET VALUE SUMMARY 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 2,713,975,000 $ 2,308,777,700 $ 2 ,161,134,700 NC $ 41,842,400 $ - $ - EMV (WITHOUT NC) $ 2,672,132,600 $ 2,308,777,700 15.7% $ 2 ,161,134,700 RESIDENTIAL ESTIMATED MARKET VALUE SUMMARY ASSESSMENT YEAR = 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 2,005,941,100 1,657,124,800 NC $ 13,787,900 EMV (WITHOUT NC) $ 1,992,153,200 $ 1,657,124,800 20.2% $ 1 ,563,791,400 NUMBER OF PARCELS (IMPROVED) 8,340 8,290 MEDIAN VALUE $ 2 21,650 $ 1 82,200 $ 1 72,000 MEDIAN VALUE PER SQ FT $ 1 72 $ 1 44 $ 1 34 MEDIAN YEAR BUILT 1974 1974 1974 MEDIAN SQ FT (TLA - TOTAL LIVING AREA ABOVE GRADE) 1 ,320 1 ,321 1 ,319 NEW HOMES 35 33 32 SINGLE FAMILY 12 21 13 TOWNHOMES 2 0 6 PATIO HOMES 12 12 13 COMMERCIAL - ESTIMATED MARKET VALUE SUMMARY 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 272,980,400 $ 263,702,100 $ 2 55,791,800 NC $ 2,302,000 $ - $ - EMV (WITHOUT NC) $ 270,678,400 $ 263,702,100 2.6% $ 2 55,791,800 INDUSTRIAL - ESTIMATED MARKET VALUE SUMMARY 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 238,491,600 $ 209,080,300 $ 1 77,108,900 NC $ 17,952,500 $ - EMV (WITHOUT NC) $ 220,539,100 $ 209,080,300 5.48% $ 1 77,108,900 APARTMENTS - ESTIMATED MARKET VALUE SUMMARY 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 152,297,200 $ 136,628,500 $ 1 27,280,600 NC $ 7,800,000 $ - $ - EMV (WITHOUT NC) $ 144,497,200 $ 136,628,500 5.76% $ 1 27,280,600 AG/RURAL - ESTIMATED MARKET VALUE SUMMARY 2022 2021 PERCENTAGE CHANGE 2020 EMV $ 39,405,100 $ 37,949,200 $ 3 3,074,500 NC $ - $ - $ - EMV (WITHOUT NC) $ 39,405,100 $ 37,949,200 3.84% $ 3 3,074,500 2022 City of Owatonna Assessment Report 7 [PAGE 14] 2022 City of Owatonna Assessment Report 8 [PAGE 15] Residential New Starts by Jurisdiction 2022 City of Owatonna Assessment Report 9 A SMY 2 2 2 2 2 2 2 SEE 0 0 0 0 0 0 0 ENA 1 1 1 2 2 2 2 STR 7 8 9 0 1 2 3 S GS o o a le 3 7 5 4 2 7 3 7 9 3 6 1 3 8 4 4 2 1 1 1 6 ds # S 5 6 5 5 5 6 1 a 8 2 6 2 6 3 6 le 7 2 2 5 9 0 1 s O W % O F T O T A L 6 3 .9 % 6 8 .6 % 6 7 .4 % 6 8 .8 % 6 7 .5 % 6 6 .8 % 7 2 .0 % A S S E S S M E N T Y E A R 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 T O T A L P L S A L E S A M A T O N N M E D IA N R A T IO 8 6 .8 4 % 8 7 .4 6 % 8 5 .9 1 % 8 7 .8 8 % 8 7 .4 7 % 7 4 .5 % 9 8 .2 % R E S ID E N T # O F G O O D S A L E S 2 1 1 9 1 8 2 1 2 6 9 A T T E D P A P L E S IZ E A R E S I D E N T I A L S A A N N U A L T IM E L O C A L A D J E F F O R T 7 .5 4 % 5 .7 % 5 .7 8 % 4 .9 % 6 .6 6 % 6 .4 % 4 .8 4 % 5 .1 % 6 .3 1 % 5 .1 % 1 5 .8 6 % 1 6 .0 % IA L V A C A N T L O T S A L E T O T A L # O F M E D IA N S A L E S R A T IO 3 0 9 9 . 2 8 % 3 6 7 8 . 5 9 % 2 4 9 7 . 3 3 % 3 0 9 0 . 4 0 % 3 9 8 4 . 9 0 % 9 1 0 4 . 8 4 % R C E L S S L E S A D J M E D IA N R A T IO 9 1 .9 0 % 9 2 .3 9 % 9 1 .9 9 % 9 3 .0 0 % 9 3 .5 8 % 9 1 .0 3 % M E D IA N S A L E P R IC E $ 3 0 , 0 0 0 $ 3 7 , 0 0 0 $ 3 1 , 9 0 0 $ 3 3 , 0 0 0 $ 3 5 , 6 0 0 $ 3 0 , 0 0 0 3 4 3 1 1 . 4 % C 6 6 6 4 5 6 O .4 .0 .1 .9 .0 .3 D 3 2 6 4 3 7 $ $ $ $ $ $ M E D IA S A L E P R IC E 1 5 2 ,5 1 6 0 ,0 1 7 0 ,0 1 8 0 ,0 1 8 7 ,0 2 1 5 ,0 N 0 0 0 0 0 0 0 0 0 0 0 0 $ $ $ $ $ $ $ /S Q F 1 2 1 2 1 3 1 4 1 4 1 6 T 2 7 5 2 9 7 YEAR AURA BERL BP CITYBP TWP CF TWPDRFD TWP ELEN CITY HVNA TWPLEMD TWPMDFD CITY MDFD TWP MERD TWP MERT TWP OWTN OWTN TWP SOMM TWPSUMM TWP Total 2010 2 4 3 1 3 1 1 1 18 1 35 2011 2 1 1 2 13 1 20 2012 2 1 1 2 1 1 1 11 1 3 1 25 2013 3 1 1 1 1 24 31 2014 3 2 6 2 1 1 1 1 3 1 2 1 23 1 1 49 2015 4 1 1 1 1 3 1 15 3 2 2 34 2016 2 2 1 1 1 1 1 3 3 35 3 1 54 2017 6 2 1 1 1 1 1 1 1 37 2 1 55 2018 1 4 1 1 1 1 1 1 45 1 1 58 2019 4 1 2 1 2 3 2 35 1 51 2020 1 1 1 1 1 3 2 1 36 2 1 50 2021 2 1 3 1 1 2 2 2 35 1 50 Total 11 28 20 10 6 11 12 5 12 21 3 11 5 327 8 12 10 512 [PAGE 16] 2022 City of Owatonna Assessment Report 10 L B T T T A R A M C T A R A C T o a n d u ild in g o t a l E M V o t a l # 2 a A c r e s o t a l # 2 b A c r e s g r ic u lt u r a l/ R u r a e s id e n t ia l p a r t m e n t s a n u f a c t u r e d H o o m m S e a s R e c C o m m e r c ia l/ I n d o t a l N e w I m p r o g r ic u lt u r a l e s id e n t ia l p a r t m e n t s o m b in e d C o m m t a ls l m e u s t v e m e r c P r ia e ia k l n l/ S t s I n T d E u E s L t E C r ia l O U G $ $ $ $ $ $ $ $ $ $ $ $ $ N R T Y A N S p 2 , 3 , 5 , 1 , 2 , 2 0 2 2 A S D T O T A L S r in g 2 0 2 2 4 0 5 , 0 8 8 , 6 0 0 8 9 , 9 6 7 , 3 0 4 9 5 , 0 5 5 , 9 0 2 3 2 , 6 1 2 , 7 8 4 3 , 0 5 3 , 7 5 8 6 7 , 7 9 8 , 3 5 1 6 5 , 0 3 1 , 8 0 6 , 1 9 1 , 8 0 1 , 6 8 4 , 4 6 1 2 , 8 3 3 , 2 0 5 2 , 1 8 5 , 1 0 1 , 5 4 5 , 5 0 2 0 , 5 0 4 , 3 0 8 , 6 4 0 , 0 0 2 1 , 4 8 3 , 3 0 S 0 0 0 5 9 0 0 0 0 0 0 0 0 0 0 0 E 7 8 0 S S $ $ $ $ $ $ $ $ $ $ $ $ $ M E 2 2 4 1 2 N T T F a ll 2 , 1 6 3 , , 5 9 1 , , 7 5 4 , , 6 4 1 , , 3 9 3 , 1 4 7 , 5 , 1 5 6 7 , 5 8 , 4 , 1 8 , 4 , 3 1 , O 0 3 5 9 4 0 5 4 , 4 9 5 5 1 7 T A 2 1 6 5 , 4 3 , 0 8 , 2 3 2 1 2 3 8 , 6 6 , 9 3 , 1 8 , 6 4 1 1 5 , 6 1 , 2 6 , 8 6 , 2 5 , 1 5 , L 0 1 1 , , 5 9 2 0 , 8 5 2 9 1 8 S 0 0 0 7 7 0 0 0 0 7 0 0 0 0 0 0 0 0 0 2 7 0 0 0 0 0 0 0 0 0 0 0 2 5 0 3 % / 2 I 1 N - 1 - / C 1 1 1 0 0 2 1 1 1 2 0 2 2 / D E C 1 . 2 % 9 . 2 % 5 . 6 % . 0 3 % . 1 8 % . 2 8 % 2 0 % 1 . 8 % 4 . 3 % 2 . 6 8 . 0 % 1 . 5 % W / 1 1 1 O 4 2 9 6 4 N . 5 . 2 . 0 . 0 . 2 C % % % % % [PAGE 17] City Comparison in Steele County CITY OF MEDFORD Spring 2022 Fall 2021 % CHG w/o Imp Land $ 24,346,300 $ 22,748,500 7.0% Building $ 1 05,538,900 $ 89,945,900 17.3% *** Total EMV $ 1 29,885,200 $ 1 12,694,400 15.3% 14.1% **Ag/Rural $ 1,095,700 $ 881,200 24.3% 24.3% **Residential $ 1 05,069,500 $ 89,990,600 16.8% 16.2% **Apartments $ 5,142,900 $ 3,990,900 28.9% 7.8% Commercial $ 17,247,700 $ 16,504,000 4.5% Industrial $ 1,329,400 $ 1,327,700 0.1% **Commercial Industrial $ 1 8,577,100 $ 1 7,831,700 4.2% 4.2% **New Improvements $ 1,317,000 $ 1,210,500 8.8% Resid Hstd $ 452,000 $ 415,300 Resid N-Hstd $ 25,000 $ 169,200 Apartments $ 840,000 $ 566,000 Commercial $ - $ - Industrial $ - $ 60,000 2022 City of Owatonna Assessment Report 11 C IT Y O F B L O O M IN L a n d B u ild in g * * * T o t a l E M V * * A g / R u r a l * * R e s id e n t ia l * * A p a r t m e n t s C o m m e r c ia l In d u s t r ia l * * C o m m e r c ia l In d * * N e w Im p r o v e m R e s id H s t d R e s id N - H s t d C o m m e r c ia l In d u s t r ia l G u e P R A s t r ia n t s IR l IE $ $ $ $ $ $ $ $ $ $ $ $ $ $ S p r in g 2 0 3 0 ,5 9 6 ,1 0 1 2 9 ,0 0 6 ,4 0 1 5 9 ,6 0 2 ,5 0 5 ,2 6 5 ,4 0 1 3 0 ,2 4 3 ,2 0 3 ,8 9 5 ,2 0 1 1 ,8 6 7 ,9 0 8 ,3 3 0 ,8 0 2 0 ,1 9 8 ,7 0 1 ,9 7 6 ,8 0 6 8 8 ,7 0 6 0 0 ,8 0 6 8 7 ,3 0 - 2 0 0 0 0 0 0 0 0 0 0 0 0 0 2 $ $ $ $ $ $ $ $ $ $ $ $ $ $ F a ll 2 0 2 7 ,7 2 7 ,4 0 1 0 5 ,0 0 0 ,7 0 1 3 2 ,7 2 8 ,1 0 5 ,0 9 1 ,0 0 1 0 5 ,9 3 8 ,9 0 3 ,5 3 1 ,7 0 1 0 ,5 3 8 ,0 0 7 ,6 2 8 ,5 0 1 8 ,1 6 6 ,5 0 5 9 9 ,3 0 3 8 7 ,0 0 1 4 4 ,4 0 6 7 ,9 0 - 2 0 0 0 0 0 0 0 0 0 0 0 0 0 1 % 1 2 2 2 1 1 1 2 2 C 0 2 0 3 2 0 2 9 1 9 H .3 .9 .2 .4 .9 .3 .6 .2 .2 .9 G % % % % % % % % % % w / o 1 2 1 Im 8 .8 3 .4 1 .7 0 .3 7 .4 p % % % % % [PAGE 18] 2022 City of Owatonna Assessment Report 12 C IT Y O F E L L E N D A L a n d B u ild in g * * * T o t a l E M V * * A g / R u r a l * * R e s id e n t ia l * * A p a r t m e n t s C o m m e r c ia l In d u s t r ia l * * C o m m e r c ia l In * * N e w Im p r o v e R e s id H s t d R e s id N - H s t d C o m m e r c ia l L d m E u e s n t r ia t s l $ $ $ $ $ $ $ $ $ $ $ $ $ S p r in 1 0 ,1 3 4 4 ,7 8 5 4 ,9 2 1 ,6 3 4 5 ,9 8 2 ,8 3 2 ,8 7 1 ,5 9 4 ,4 7 1 ,1 1 7 5 3 5 1 g 8 2 0 0 8 0 2 8 0 6 6 0 0 2 ,1 ,1 ,2 ,8 ,1 ,4 ,8 ,1 ,9 ,7 ,3 ,4 ,0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 2 $ $ $ $ $ $ $ $ $ $ $ $ $ F a ll 2 0 9 ,3 3 4 ,1 0 3 5 ,9 7 7 ,0 0 4 5 ,3 1 1 ,1 0 1 ,4 2 3 ,8 0 3 7 ,0 5 0 ,7 0 2 ,6 4 8 ,2 0 2 ,7 2 5 ,4 0 1 ,4 6 3 ,0 0 4 ,1 8 8 ,4 0 3 4 7 ,3 0 4 7 4 ,3 0 1 0 ,0 0 - 2 0 0 0 0 0 0 0 0 0 0 0 0 1 2 % 2 1 2 2 C 8 3 1 4 4 6 5 9 6 1 H .6 .7 .2 .5 .1 .9 .4 .2 .7 .5 G % % % % % % % % % % w / o 1 2 Im 8 .7 2 .8 1 .1 6 .9 4 .8 p % % % % % [PAGE 19] General Assessment Information Homestead Market Value Exclusion The Homestead Market Value Exclusion is the last item in the hierarchy of market value components before taxable market value. (Minnesota Statutes, section 273.13, subdivision 35) Residential property and the portion of agricultural property classified as the house, garage and surrounding one acre of land, shall be eligible for a market value exclusion. The following examples will illustrate these calculations for different types of property. Simply stated, the exclusion decreases as the market value increases (also works conversly). Calculation of the homestead market value exclusion involves several steps. For a homestead valued at $76,000 or less, the exclusion is 40 percent of market value, yielding a maximum exclusion of $30,400 at $76,000 of market value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or more, there is no homestead valuation exclusion. ------------------------------------------------------------------------ Statutory Class Rates: 2022 Tax Capacity and Class Rates Taxable Market Value X Class Rate = Tax Capacity 57 classifications condensed Class EMV Class Rate Sub to State Tax Residential $500,000 1.00% No Over $500,000 1.25% No Apartments No tier 1.25% No Commercial/ Industrial First $100,000 1.50% No $100,001 - $150,000 1.50% Yes Over $150,000 2.00% Yes Agricultural: House, Garage, One Acre: Ag Homestead First $500,000 1.00% No Over $500,000 1.25% No Remainder of Ag Land: First $1,890,000 0.50% No Over $1,890,000 1.00% No Non- Homestead: All Value 1.00% No 2022 City of Owatonna Assessment Report 13 [PAGE 20] Quinitle Plans 2022 City of Owatonna Assessment Report 14 [PAGE 21] 8 City of Owatonna Local Board April 19, 2022 Original Classification/ Original Valuation/ Parcel Deedholder Address Adjusted Classification Adjusted Valuation $Change 17-003-2305 BAIN/JAMES A 509 HAZEL LANE Residential -Single Unit Dwell $ 92,100 Rec#: 1 Residential -Single Unit Dwell $ 92,100 $ 0 Reason for Change: No Change - No Inspection 17-139-0302 AHLRICHS/SHERRY LYNN 1039 GROVE AVE S Residential -Single Unit Dwell $ 164,000 Rec#: 1 Residential -Single Unit Dwell $ 164,000 $ 0 Reason for Change: No Change 17-187-0134 GEHAN/JOHN & LEE 2110 LINN DR Residential -Single Unit Dwell $ 309,800 Rec#: 1 Residential -Single Unit Dwell $ 301,600 -$ 8,200 Reason for Change: Value High - Land 17-210-0106 GRIFFIN/THOMAS R & CONNIE J 346 13TH ST NE Residential -Single Unit Dwell $ 184,600 Rec#: 1 Residential -Single Unit Dwell $ 184,600 $ 0 Reason for Change: No Change 17-275-0108 KAUTZ/CRAIG L & JANICE B 150 18TH ST NE Residential -Single Unit Dwell $ 282,600 Rec#: 1 Residential -Single Unit Dwell $ 282,600 $ 0 Reason for Change: No Change 17-284-0207 SKOV/KYLE A 763 17TH ST SE Residential -Single Unit Dwell $ 281,400 Rec#: 1 Residential -Single Unit Dwell $ 281,400 $ 0 Reason for Change: No Change 17-305-0111 DRAKE/JERRY A & FRANCIE K 155 CEDAR PL Residential -Single Unit Dwell $ 250,700 Rec#: 1 Residential -Single Unit Dwell $ 250,700 $ 0 Reason for Change: No Change [PAGE 22] Original Classification/ Original Valuation/ Parcel Deedholder Address Adjusted Classification Adjusted Valuation $Change 17-374-0101 SHAW/MICHAEL H/& 547 SCHOOL ST E Residential -Single Unit Dwell $ 298,500 Rec#: 1 DEANNE M SHAW Residential -Single Unit Dwell $ 298,500 $ 0 Reason for Change: No Change 17-383-0105 SKALA/NATHAN J & DIANE A 520 HAZELTINE PL NE Residential -Single Unit Dwell $ 418,100 Rec#: 1 Residential -Single Unit Dwell $ 418,100 $ 0 Reason for Change: No Change 17-538-0108 STROM/RICHARD W & SUSAN M 1925 WHITETAIL RUN PL NE Residential -Single Unit Dwell $ 469,300 Rec#: 1 Residential -Single Unit Dwell $ 469,300 $ 0 Reason for Change: No Change - No Inspection 17-555-0403 HOLMES/DOUGLAS A & JILL E 1135 JADDEN LANE SE Residential -Single Unit Dwell $ 494,000 Rec#: 1 Residential -Single Unit Dwell $ 494,000 $ 0 Reason for Change: No Change 17-572-0106 SANDE/BRIAN H & RACHEL P 2175 MAPLE LEAF LN NE Residential -Single Unit Dwell $ 430,700 Rec#: 1 Residential -Single Unit Dwell $ 430,700 $ 0 Reason for Change: No Change 17-593-0124 ADAMS/GARY J & TAMMY L 2168 HARBOUR OAK DR SE Residential -Single Unit Dwell $ 466,200 Rec#: 1 AS TRUSTEES Residential -Single Unit Dwell $ 449,000 -$ 17,200 Reason for Change: Value High - Bldg 17-598-0112 HEMANN/RYAN T & ANNE M 2720 TIMBER RIDGE PL NE Residential -Single Unit Dwell $ 506,000 Rec#: 1 Residential -Single Unit Dwell $ 483,000 -$ 23,000 Reason for Change: Value High - Bldg 17-599-0001 BISHMAN/COLE Residential Vacant Land $ 7,100 Rec#: 1 Residential Vacant Land $ 6,300 -$ 800 Reason for Change: Value High - Land [PAGE 23] Original Classification/ Original Valuation/ Parcel Deedholder Address Adjusted Classification Adjusted Valuation $Change 17-599-0215 BISHMAN/COLE B & LINDSEY J 1507 EAGLE RIDGE ST NE Residential -Single Unit Dwell $ 308,800 Rec#: 1 Residential -Single Unit Dwell $ 304,500 -$ 4,300 Reason for Change: Value High - Land 17-605-0101 ADAMS/GARY J & TAMMY L 1514 SMITH AVE SE Residential -Single Unit Dwell $ 174,500 Rec#: 1 AS TRUSTEES Residential -Single Unit Dwell $ 174,500 $ 0 Reason for Change: No Change