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1 • 1 'N1 s Cy <br /> -4- <br /> When the Assessor was asked whether the Assessors office would immediately raise <br /> . the valuation of the home where there had been such a disparity between the assessed <br /> and market value, Mr. Hanscom indicated "We have never, and never would, raise the <br /> assessed valuation based on one sale, but would make a comparison between this sale <br /> the the sales of similar type homes to ascertain whether the higher price was <br /> indeed the correct valuation". Councilmember Ranallo asked why, if that was the <br /> case, were realtors required to report all sales to the state. The Assessor said <br /> the state requires a Certificate of Real Estate Value to be filed on every piece <br /> of property with the information used for many different purposes, including its <br /> availability.to state, county, and local assessors and the State Department of Revenue. <br /> These figures are also used as a base for statistical analysis, determination of <br /> school aids, etc. <br /> Mr. Childs indicated the City gets a printout of all sales in the City and the "co- <br /> efficient dispersion" between the assessed and market valuations are almost always <br /> within a few thousand dollars. In the case of a few exceptions, the Manager said, <br /> he had been told the difference is often because of a sale to a relative or due to <br /> special financing arrangements. <br /> Mr. Hanscom told Councilmember Enrooth that in the appraisal process a 30 year old <br /> home would depreciate about 18% more than a new one and Mr. Brede's home would have <br /> depreciated a few thousand dollars from the value of an identical home built today, <br /> but that depreciation would probably have been lost in the appreciation which <br /> resulted from a comparison of the sale of homes similar to his own. Councilmember <br /> Ranallo agreed that the example cited by Mr. Brede might have been an exception. <br /> Councilmember Marks indicated he had been bidding on some property which finally <br /> . sold for 25% more than he perceived the land was worth. He said the desire of a <br /> purchaser to possess a piece of property could also affect the price. <br /> When Mayor Sundland indicated to Mr. Brede that he was certainly free to go to the <br /> Board of Equalization to state his philosophical differences with the evaluation <br /> process, Mr. Hanscom said he would not suggest that action unless the property owner <br /> fully understood that historically, if the county reappraises a property higher, <br /> the Board concurs with that evaluation. <br /> Mr. Brede indicated he wasn't arguing that the $126,000 valuation on his home wasn't <br /> correct, he was just basing his complaint on the fact that 90% of the homeowners <br /> he had talked to had told him they would never sell their homes as low as they are <br /> assessed and he perceived he -would be lucky to get the assessed figure for his home. <br /> Mayor Sundland indicated he perceived Hennepin County had been more thorough in <br /> their approach to assessing than Ramsey or Washington Counties where the differential <br /> between the assessed values and the market values is being rapidly eliminated to the <br /> consternation of the property owners, some of whom are facing a 55% increase in value. <br /> Because the Board of Review had to be reconvened within 20 days of that evening, <br /> before the next scheduled Council meeting, May 13, the following was necessary: <br /> Motion by Councilmember Marks and seconded by Councilmember Ranallo to recess the <br /> April 22, 1986 Board of Review until 7:00 P.M. , Monday, May 12, 1986. <br /> Motion carried unanimously. <br /> esp tfully bmitt , <br /> H Cro e,, cre f•y <br /> ATTEST: 2 <br /> City C er ayo <br />