09-28-1992 Council Packet - Laserfiche WebLink

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I (Taxes continued from page I) PokcHiosky: Apparently all the homes sold, hut one, were worth over $500,000. I understand tluU about hidf the homes on Deephaven lakeshore are worth less than $500,000. It appears to me that hundreds of homeowners suffered a property valuation increase, in a depressed real estate marketplace, based on a pitifully smtdl sampling of Deephaven lakeshore home sides. Furthermore, it appears that no home worth less than $545,000 was considered in the sampling process. Why? The sampling is totally dependent on pio{)crfies which have sold. I agree that the sample size may not give an adequate picture of the real estate market. However, the sales do retlect that the values for assessment were low. As the assessor, my responsibility is to have all properties assessed close to their market value, whether these properties ate of the SI.000,000 category or $300,000 price range. Deephaven it a difficult assessment area. It is so varied and diverse, with a wide range of residential values. PoknnosKy: This practice should concern every ij..\r Minnetonka lakeshore owner W'hiu do vou see in your crystal ball for Lake Minnettmka property owners in the next two years 5 PisfaJ: This practice has been in effect for many years My prediction is that u will be more intense. The State legislature is putting pressure on the Department of Revenue to further break down segments of an overall assessment The direction clearly aims at higher value properties, hut is intended to measure the quality of an assessment and try to assure equalization of all in-operties. I see a grratei use of statistical analysis (sales v$. assessor's value) as a mnsure for the distribution of the ua burden and a greater role by the stale in the adjustment pt-ocess if standards ate not met. Many aspects of my job as the assessor will be statistically mandated. The City of Deephaven. and other like cities subject to a small sample size, should be very concerned. The l.MLOA should follow this legislation directive and keep informed on this aspect as well as other property ta.s legislation as it develops. Pokoiiosky: Do you see the Hennepin County Assessor's office continuing to take an active roll in arbitrarily increasing property values in your area of Jurisdiction? Distal: The county will continue to lake an active toll in the overall equalization of property values insuring that minimum standards are met in all jurisdictions. Hennepin County only steps in if 40 .isscssment has not met the minimum standards. Pokoiiosky: Finidly, how do you see this apparently arbitrary and capricious increase this year impacting on your decisions when evaluating lakeshore property udues in the future? Distal: 1 have already staled that the sample size may not be adequate. .Sales alone do not fully measure all aspects of the real estate market but laws, rules and standards arc to be met. In the future. I do no* intend to lest these standards or measures. It is rwii my place. I will continue to base valuations on market activity using common sense, counseling with others in the real estate business, analyzing sales, finding out why the pnee was paid, finding out why th.it property hasn't sold, etc. But the properties that do sell arc the measure of mv evaluation. If properties in a ;»nicular neighborhood are selling higher than the assessor's value, that neighborhood can expect their evaluation to go up! ANNUAL IVIINNESOTA LAKES CONFERENCE All Are Welcome.* fAnenJam r in 1991 wu.\ ostr 4001 October 2 3. Aif|«ert HSion l«kf MtocietiQn* and lake manaqament WViaf you can #o tor yOur lake OkfR plant manaoarrMtnt proprpffi • Woto* duality prodtam* WmirylVqps Cfotw JUtem $90 • la«« i««tpiat*ort Baaic la«a bMlopy • Eatft>Ct • I sac momtomtn * Taa taauai * Maifo m • I k* laiaj