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Foreclosures 5 • Typical, traditional sales and listings now dominate our markets • Foreclosures continue to decline, they were down 30% in 2013 from 2012. • Foreclosures for first five months are down again, down 40% from same period in 2013. • Peak year was 2008 when we had 3,023 foreclosures. • 2014 we are on -track to have approximately 754 foreclosures, down from 1,159 in 2013. • Lender Mediated and Short sales continue to decline as a percentage of the market. o Twin Cities in June 2011 foreclosed property was 54% of the market. Metro had 1,287 pending traditional sales, and 1,481 lender and short sales pending. (MAAR) o Twin Cities in June 2013 foreclosed property was down to 29% of the market. Twin Cities in June 2013 had 1,970 pending traditional sales and 801 lender, short sales pending. (MAAR) o Most markets now under 10% lender mediated transactions Appeals and Tax Petitions • The number of Open Book appeals was up this year, but the total value appealed was down. • The County Special Board of Appeal and Equalization was completed in two days and volume was low. • More tax court appeals, on more parcels, were resolved in 2013, but the amount of property taxes cancelled in 2013 fell 23% from 2012. • 2012 was the peak year for cancelled taxes in this real estate appeal cycle. • We resolved tax court appeals on 1,360 parcels in the past year; this was an increase of 8% over 2012. • We presently have 1,090 open tax court petitions, including 632 new appeals filed in 2014. • The number of new appeals has declined 26% in two years. • The amount of "new" value appealed has declined 23% in the past two years. • The number of "new" parcels petitioned has also declined, by 35%. • The most notable parcels resolved have been at local department stores. • The appeals for five years, (2005-2009) on the Ford Motor property went to trial in the Minnesota Tax Court in December 2013 and a decision is expected later this summer. An appeal of the lower court's decision is almost certain, so final disposition is still at least a year away. The remaining years are not yet scheduled in the court. • All cancelled taxes have been within budgeted amounts, and this is anticipated to continue into future budget years. • Ramsey County property tax collections should continue to exceed budgeted amounts. Actual cancelled tax fell 23% in 2013. • These tax refunds should not exceed more than 1.5% of annual tax collections. • As for the impact on tax base, our tax base continues to grow in spite of the impact of appeals; appeals are just part of our normal business cycle. Excellence • Respect • Diversity