04-22-13 Council Packet - Laserfiche WebLink

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Anoka County City of Lino Lakes 5 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 i t should be during times of infl ation 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 marke t. Note: The Median Assessor’s Estimated Market Value represents the homes that are in the sales study. As you can see, there is a point in time where the relationship between the assessor’s values and the sales prices intersect. It is at that point in time that the market took a large downward turn . T he following year, in response to that market condition, the assessor’s values were reduced to reflect that trend. And we have responded by adjusting assessed values each year based on the prior year t rends . It’s interesting to note the upward shift for the 2012 assessment . It is somewhat deceiving in that the trend in sales prices was actually down, but due to the segment of the market with the most arm’s -length transactions , the median sale price di d go up for that year. One last important point to make note of is that the assessment process is complete d 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 resu lting 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 impac t 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. $165,000 $170,000 $175,000 $180,000 $185,000 $190,000 $195,000 $200,000 $205,000 $210,000 $215,000 $220,000 $225,000 $230,000 $235,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 T ax Payable Year  Median Assessed Value as it Relates to Median Sale Price Median Sale Price Median Assessor's Estimated Market Value