Steele County Board of Appeal and Equalization

BILL EFFERTZ, SAMA STEELE COUNTY ASSESSOR,

TYLER DIERSEN LEAD APPRAISER,

STEVE HALVERSON: APPRAISER,

GREG NELSON: APPRAISER,

PAM CARTY: APPRAISER,

LACY STANDKE; ASSESSMENT TECHNICIAN,

DEB TAPPE OFFICE SPECIALIST

2014 ASSESSMENT REPORT

STEELE COUNTY ASSESSOR

Administrative Center630 Florence Ave.

P.O. Box 890Owatonna, MN 55060

Phone: 507-444-7435Fax: 507-444-7470

Blooming Prairie 583-2283 Ellendale 684-2211

Bill Effertz, S.A.M.A., County AssessorSteve Halverson, C.M.A. Pam CartyGreg Nelson, C.M.A. Lacy SchusterTyler Diersen, C.M.A. Deb Tappe

www.co.steele.mn.us

June 17, 2014To: Steele County Board of CommissionersFrom: Bill Effertz, Steele County AssessorRe: Steele County 2014 Assessment Report

The purpose of this meeting is to provide taxpayers with the opportunity to appeal the market value and/or classification of their property as of the assessment date of January 2, 2014. The 2014 assessment will be the basis for property taxes payable in 2015. The purpose of the meeting is to provide further appeal for those property owners that are not satisfied with the assessor’s review and decision of the Local Board of Appeal and Equalization. This is also an avenue of appeal for those property owners in cities and towns that have transferred their local board powers to the county in the open book meeting format.

If anyone should appear this evening, we ask that we be permitted to review those properties and report back to the County Board our findings at the reconvene meeting, Tuesday, June 24, 2014 at 7:00.

Each time the County Board of Equalization convenes statute requires to document that a trained board member is present and that a quorum has been established. Each board member present will need to sign the document entitled Minnesota Revenue Certification Form 2014.

Listing of Local Board of Appeal and Equalization Attendees:This is the official listing of all property owners who are on record of having attended the Local Board of Appeal and Equalization. A property owner must first appeal to the Local Board in order to make an appeal to the County Board of Appeal and Equalization.

Somerset, Meriden and now Merton Townships had open book meetings in 2013 and properties in those townships may appeal to the County Board. Merton Township has gone to an open book meeting format, at a minimum, for the 2013 and 2014 assessments. Berlin Township is considering this format for the 2014 assessment.

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“The mission of the Steele County Assessor’s Office is to serve the taxpayers ofSteele County by uniformly valuing and classifying real property in an accurate and equitable

manner as prescribed by the statutes of the State of Minnesota.”

In order to comply with statute and fulfill our mission as stated above, the Assessor’s Office provides value and service to Steele County, cities and townships within the county, and all taxpayers regardless of where they live by:

Administering laws governing assessment practices and policy as passed by the legislature and interpreted by the Department of Revenue.

Conducting on site field reviews of all properties within a five year schedule. Listening to taxpayers concerns in conjunction with an appeal process that is fair

and accessible. Analyzing market forces including a detailed verification and statistical

evaluation of all real estate sales using interviews, inspections, and stratification. Maintaining and informing taxpayers of beneficial property tax programs such as

homestead, green acres, rural preserve, veteran’s exclusion, open space and plat law.

Reporting values and classifications, which provide the basis and starting point for the property tax system.

The most current measurement was done over a one year time period from October 1,2012 to September 30, 2013, whereby all qualifying sales transactions occurring within this period are compared to the reference point of the assessment date and corresponding value onJanuary 2, 2014. The differences between the sale price and the assessed value expressed as a ratio (assessed value/sale price=ratio) provide the data and impetus the assessor requires to closely emulate the sales and modify similar properties on a mass appraisal scale, in this case, to establish values for the 2014 assessment. While the state dictates that these modifications produce new aggregate ratios by property type (examples: residential, apartment, commercial/industrial, agricultural) in the range of 90-105%. The Assessor’s office continues to refine the ratios beyond the jurisdictional level down to the neighborhood level with a specific ratio target. We feel this policy, employed across Steele County, ensures an equitable distribution of the property tax burden for all taxpayers.

One of the main objectives in property tax administration is an equalized assessment (sales ratio’s between 90-105%). It is important that maximum equalization be attained both among local property owners and between taxing districts because the assessment serves as a basis for:

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1. Tax levies by overlapping governmental units (i.e. counties, school districts, and special taxing districts).

2. Determination of net bonded indebtedness restricted by statute to a percentage of either the local assessed value or market value.

3. Determination of authorized levies restricted by statutory tax rate limits. 4. Apportionment of state aid to governmental units via the school aid formula and

the local government aid formula.

An equitable distribution of the tax burden is achieved only if it is built upon a uniform assessment. The result of a non-uniform assessment is a shift in the tax burden to other property owners.

The Economic Market Value Study is a sales ratio-adjusted measure of a community’s property wealth, using estimated market values as a starting point. Bonding companies use the adjusted estimated market value of cities and towns to measure fiscal capacities for bond rating calculations.

The market value of a property is a combination of a myriad of factors. Economic conditions, demographics, zoning, physical characteristics, government and policy, infrastructure, supply and demand all interact in a complex, intricate way to produce a market value that is always changing.

The County Assessor’s office has completed the third year of converting our valuation software from Microsolve to Vanguard Appraisal software. This will improve the assessment uniformity and reporting capabilities once all of the data is completely converted and operational. We will be continuing the conversion process in 2014 for the 2015 assessment.

We have created a new link to the parcel data for all properties in Steele County. The added enhancements will allow tax-payers to multiple ways to search the data base for property characteristics. The goal is to provide stakeholders with easy access to the parcel data and will improve transparency and accountability to the customers. Designing these added enhancements is consistent with the Mission, Vision and Values of Steele County.

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It is the annual goal of the Steele County Assessor’s Office to improve assessment accuracy and uniformity. As we gather market data and analyze the information, we apply the market information uniformly to all similar property types. When we find assessment inconsistencies we make the necessary corrections to bring these properties into uniform compliance.

eCRV: All Certificates of Real Estate Value will be required to be filed electronically starting October 1, 2014. The Auditor and Treasurer’s offices will have a public terminal to accommodate walk-in filings. This new web-based application will allow assessors to download and upload required information and allow interested parties to access the sales information.

MARKET ACTIVITY

For the 2014 assessment, the total estimated market value for Steele County grew to $3.9 billion; this represents an 8.76% increase from the 2013 assessment. Value added for new construction was up over 111% for 2013 with $31.2 million added to the assessment. Once again the market increase was primarily fueled by the agricultural property values that increased 15.2% overall (tillable and non-tillable).

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Commercial/Industrial properties has shown signs of recovery as $16.8 million of new commercial, industrial value was added for the 2014 assessment due to new construction. Overall, the commercial/industrial tax base expanded almost 7% over 2013. Economic indications are improving state-wide. Around the State, unemployment is lower than the national average, 4.7% Minnesota and 6.3% national, the State of Minnesota shows Steele County is less than 3%. Manufacturing production is increasing. Retail sales are recovering as it would appear that consumer confidence is improving.

The commercial properties in the central business district and all township commercial will be revalued for the 2015 assessment.

Apartments: The apartment market remains strong with rents increasing and vacancy decreasing. As evidence of this, there is talk of a new apartment complex coming on line in 2015 in the City of Owatonna. Apartments were increased by 10% for the 2013 assessment but values remained constant for 2014. Apartments will be revalued for the 2015 assessment.

Residential: For the second straight year, single family-residential properties saw an increase for 2014 the market increased by 3.2%. This can be attributed to the reduction in the number of foreclosure in 2013 to 83 from 128 on 2012. The peak of Steele County Foreclosures was in 2010 with 175 foreclosures. Fannie Mae Interest Rate are still below 2007 (6.25%) at 4.25% in Dec 2013.

It is also important to note that, statewide, the number of “Rejected Sales” is less than the number of “Good Sales”, 62,000 to 48,000. Since 2008, the number of “rejected sales” had outpaced the number of “good sales”. This imbalance is directly attributed to the large number of “Bank Sales” or foreclosures from 2008 to 2012.

Steele County “Good Sales” vs. ”Rejected Sales”

2009 699 Good 315Reject 384 2010 647 Good 287Reject 360 2011 640 Good 263Reject 377

2012 790 Good 352Reject 438 2013 741 Good 379Rejected 362

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After adjusting values based the sales, the Steele County 2014 median sales ratio for residential properties is 96.3%.

The amount of value that is added to the assessment due to new construction is a key economic indicator. New construction value expands the tax base and helps to decrease each property owner’s share of the tax burden. Value added due to new construction for the 2014 assessment was approximately $31.2 million, which is about 111% ahead of last year.

Agricultural:The preliminary 2014 Steele County agricultural median ratio was 80.1% based pm 24 sales. Time trend analysis of the sale properties are indicating that the market is continuing to grow. The Department of Revenue uses the sales from each county in the region to determine a market (time) adjustment. The time adjustment that was applied to all regional counties slowed at a rate of 7.14% as opposed to 10.5% last year. The Ag sales indicated a median sale price of $7,425 per tillable acre. This resulted in a 15.50% adjustment to the tillable land valuations. The adjusted agricultural ratio for 2014 improved to 92.6%. Ag land valuations are formula driven and to accomplish this change, the CER (Crop Equivalency Rating) multiplier has been adjusted from $64 in 2012 to $84 in 2013 to $99.00 for 2014. Representing the third year of double digit increases. (100 CER soil is valued at $9,900 per acre).

2014: 75 (Steele Co Average) CER X $99 (Multiplier) = $7,425 per acre2013: 75 X $84 = $6,300/acre2012: 75 X $64 = $4,800/acre2011:” 75 x $53 = $3,975/acre

Subsequent sales to the 2014 time (Oct 2013 to present) period indicate that the market has begun to stabilize. There are 9 sales that have occurred since the 2014 time period, these preliminary 2015 sales show that, when compared with the 2014 Ag values, the ratio remains stable at 92%.

These increasing agricultural values are not unique to Steele County. Ag land throughout Minnesota and the Midwestern states have also experienced these types of increases. However, as the of price corn and beans decline and with interest rates on the rise, it would appear that the rapid expansion of the market for Ag land may be stabilizing. The best tillable acreage with a high percentage of tillable land that is uniform in shape remains in high demand.

Merton Township had 848 acres put in to a permanent easement representing a significant shift in the valuation, $3.3 million, for the township

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New Legislation for 2014 for Agricultural Homestead Market Value Credit:New legislation increases the rate of agricultural homestead market value credit so that it reaches a maximum of $490 at a market value of $270,000 and over for pay 2015. Current law has a maximum credit of $230 at $345,000.For pay 2014, there is a supplemental Ag credit that will be the lesser of $205 or the net property taxes payable for Ag homesteads.

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ASSESSMENT PAYABLE VALUATIONYEAR YEAR LIMIT

2006 2007 690,000$ 2007 2008 790,000$ 2008 2009 890,000$ 2009 2010 1,010,000$ 2010 2011 1,140,000$ 2011 2012 1,240,000$ 2012 2013 1,290,000$ 2013 2014 1,500,000$ 2014 2015 1,900,000$

.5% is exclusive of the House, garage and one acre of land @1%

Agricultural Homesteads First Tier Valuation Limit

Each year, the Department of Revenue certifies the first-tier limit for agricultural homestead property, rounded to the nearest $10,000. Beginning in assessment year 2011, the Abstract of Assessment is used to calculate the new limit, which is the product of:the first-tier limit for the preceding assessment year, and

the ratio of the statewide average taxable market value of agricultural property per acre in the preceding assessment year to that of the second preceding assessment year.

AG HOMESTEADCERTIFIED FIRST TIER VALUATION LIMIT AMOUNT

Beginning with assessment year 2011, the limit is the product of (i) the first tier limit for the preceding assessment year, and (ii) the ratio of the statewide average taxable market value of agricultural property per acre of deeded farm land in the preceding assessment year to the statewide average taxable market value of agricultural property per acre of deeded farm land for the second preceding assessment year. The limit shall be rounded to the nearest $10,000.

Class Rate is .5%

When determining the net tax capacity of an agricultural homestead, the remaining land beyond the “house, garage and first acre” (HGA) is broken into two tiers. The first tier includes all value up to the first-tier valuation limit and has a lower class rate than the remaining value above that limit.

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TOWNSHIP BORDER VALUES

SITE 33 1,216,400$ 36,861$ SITE 30 1,316,700$ 43,890$ H & G 33 4,234,700$ 128,324$ H & G 30 4,539,400$ 151,313$

2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRETILLABLE 7,228 52,916,000$ 7,321$ TILLABLE 7,073 51,157,400$ 7,233$ Ave CER/Acre 73.9 Ave CER/Acre 73.1 PASTURE 169 515,800$ 3,052$ PASTURE 279 813,900$ 2,917$ WOODS 233 566,300$ 2,430$ WOODS 170 413,000$ 2,429$ WASTE 133 154,400$ 1,161$ WASTE 94 109,100$ 1,161$ WETLANDS 2 1,900$ 950$ WETLANDS 26 25,200$ 969$ PERM EASMT 12 14,400$ 1,200$ PERM EASMT 8 10,800$ 1,350$ EXC SITE 131 813,300$ 6,208$ EXC SITE 123 752,700$ 6,120$ DITCH 7 DITCH 21 ROAD 219 ROAD 232

2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACREGRASSLAND 79 208,600$ 2,641$ GRASSLAND 54 136,300$ 2,524$ WOODS 628 1,584,800$ 2,524$ WOODS 383 965,600$ 2,521$ WASTE 441 556,500$ 1,262$ WASTE 207 260,900$ 1,260$ WETLANDS 47 46,100$ 981$ WETLANDS 77 75,000$ 974$ PERM EASMT 0 -$ -$ PERM EASMT 0 -$ DITCH 0 DITCH 4ROADS 23 ROADS 12

MEDFORD TOWNSHIP (N 1/2) CLINTON FALLS TOWNSHIP (S 1/2)

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SITE 66 2,361,200$ 35,776$ SITE 44 1,380,100$ 31,366$ H & G 66 9,884,900$ 149,771$ H & G 44 5,985,300$ 136,030$

2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRETILLABLE 19,028 140,193,500$ 7,368$ TILLABLE 19,766 154,316,000$ 7,807$ Ave CER/Acre 74.4 Ave CER/Acre 78.9 PASTURE 523 1,617,700$ 3,093$ PASTURE 324 1,083,500$ 3,344$ WOODS 161 391,600$ 2,432$ WOODS 168 406,600$ 2,420$ WASTE 537 625,000$ 1,164$ WASTE 89 103,700$ 1,165$ WETLANDS 21 20,000$ 952$ WETLANDS 12 11,200$ 933$ PERM EASMT - -$ -$ PERM EASMT 6 8,300$ 1,383$ EXC SITE 307 2,065,500$ 6,728$ EXC SITE 266 1,754,900$ 6,597$ DITCH 84 DITCH 79 ROAD 537 ROAD 482

2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACREGRASSLAND 107 354,100$ 3,309$ GRASSLAND 34 89,100$ 2,621$ WOODS 364 918,500$ 2,523$ WOODS 133 335,600$ 2,523$ WASTE 232 292,200$ 1,259$ WASTE 70 88,900$ 1,270$ WETLANDS 30 29,000$ 967$ WETLANDS 33 32,000$ 970$ PERM EASMT 134 173,500$ 1,295$ PERM EASMT 839 1,140,100$ 1,359$ DITCH 4 DITCH 0ROADS 10 ROADS 7

SITE 52 1,900,000$ 36,538$ SITE 50 2,805,300$ 56,106$ SITE 63 2,509,600$ 39,835$ H & G 52 7,061,100$ 135,790$ H & G 50 8,824,600$ 176,492$ H & G 63 9,041,500$ 143,516$

2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRETILLABLE 19,968 161,368,400$ 8,081$ TILLABLE 10,604 81,907,800$ 7,724$ TILLABLE 16,554 128,710,900$ 7,775$ Ave CER/Acre 81.6 Ave CER/Acre 78.0 Ave CER/Acre 78.5 PASTURE 567 1,636,783$ 2,887$ PASTURE 724 2,600,900$ 3,592$ PASTURE 1,268 4,253,600$ 3,355$ WOODS 112 271,200$ 2,421$ WOODS 186 452,400$ 2,432$ WOODS 223 541,500$ 2,428$ WASTE 29 34,100$ 1,176$ WASTE 160 186,800$ 1,168$ WASTE 381 444,100$ 1,166$ WETLANDS 2 1,900$ 950$ WETLANDS 17 16,900$ 994$ WETLANDS 14 13,100$ 936$ PERM EASMT - -$ -$ PERM EASMT - -$ -$ PERM EASMT 24 32,800$ 1,367$ EXC SITE 225 1,477,200$ 6,565$ EXC SITE 234 1,575,800$ 6,734$ EXC SITE 296 1,999,200$ 6,754$ DITCH 96 DITCH 41 DITCH 64 ROAD 505 ROAD 320 ROAD 488

2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACREGRASSLAND 29 105,600$ 3,641$ GRASSLAND 42 140,900$ 3,355$ GRASSLAND 262 881,400$ 3,364$ WOODS 148 373,000$ 2,520$ WOODS 521 1,314,600$ 2,523$ WOODS 614 1,549,800$ 2,524$ WASTE 10 12,600$ 1,260$ WASTE 158 199,600$ 1,263$ WASTE 903 1,139,700$ 1,262$ WETLANDS 0 -$ WETLANDS 70 67,600$ 966$ WETLANDS 21 2,070$ 99$ PERM EASMT 23 30,900$ 1,343$ PERM EASMT 0 -$ PERM EASMT 0 -$ DITCH 0 DITCH 7 DITCH 15ROADS 5 ROADS 5 ROADS 11

R I C E

CLINTON FALLS TOWNSHIP (S1/2)

DEERFIELD TOWNSHIP MEDFORD TOWNSHIP (N 1/2) MERTON TOWNSHIP

MERIDEN TOWNSHIP OWATONNA TOWNSHIP HAVANA TOWNSHIP

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SITE 75 2,636,000$ 35,147$ SITE 72 2,701,600$ 37,522$ SITE 66 2,202,400$ 33,370$ H & G 75 9,794,200$ 130,589$ H & G 72 8,935,100$ 124,099$ H & G 66 8,010,600$ 121,373$

2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRETILLABLE 18,160 128,595,800$ 7,081$ TILLABLE 17,508 132,398,300$ 7,562$ TILLABLE 16,382 118,093,000$ 7,209$ Ave CER/Acre 71.5 Ave CER/Acre 76.4 Ave CER/Acre 72.8 PASTURE 1,060 3,334,300$ 3,146$ PASTURE 1,002 3,525,500$ 3,518$ PASTURE 1,822 6,101,200$ 3,349$ WOODS 243 589,100$ 2,424$ WOODS 337 817,700$ 2,426$ WOODS 362 878,300$ 2,426$ WASTE 399 464,500$ 1,164$ WASTE 315 367,300$ 1,166$ WASTE 764 889,900$ 1,165$ WETLANDS 18 17,000$ 944$ WETLANDS 11 10,900$ 991$ WETLANDS 54 52,100$ 965$ PERM EASMT 32 44,100$ 1,378$ PERM EASMT - -$ -$ PERM EASMT - -$ -$ EXC SITE 310 2,082,200$ 6,717$ EXC SITE 249 1,625,500$ 6,528$ EXC SITE 350 2,199,100$ 6,283$ DITCH 112 DITCH 71 DITCH 114 ROAD 566 ROAD 532 ROAD 532

2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACREGRASSLAND 87 238,400$ 2,740$ GRASSLAND 167 453,600$ 2,716$ GRASSLAND 77 227,200$ 2,951$ WOODS 361 910,500$ 2,522$ WOODS 548 1,381,900$ 2,522$ WOODS 257 647,600$ 2,520$ WASTE 653 824,500$ 1,263$ WASTE 381 480,600$ 1,261$ WASTE 362 456,600$ 1,261$ WETLANDS 55 53,300$ 969$ WETLANDS 87 84,500$ 971$ WETLANDS 14 13,600$ 971$ PERM EASMT 59 76,500$ 1,297$ PERM EASMT 49 60,900$ 1,243$ PERM EASMT 460 580,500$ 1,262$ DITCH 5 DITCH 14 DITCH 10ROADS 18 ROADS 20 ROADS 11

SITE 51 1,771,200$ 34,729$ SITE 68 2,304,100$ 33,884$ SITE 59 1,980,300$ 33,564$ H & G 51 6,537,900$ 128,194$ H & G 68 8,211,900$ 120,763$ H & G 59 7,196,600$ 121,976$

2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRE 2A ACRES EMV AVE/ACRETILLABLE 17,783 132,395,200$ 7,445$ TILLABLE 17,132 123,874,000$ 7,231$ TILLABLE 17,069 120,699,100$ 7,071$ Ave CER/Acre 75.2 Ave CER/Acre 73.0 Ave CER/Acre 71.4 PASTURE 855 2,987,800$ 3,495$ PASTURE 754 2,162,300$ 2,868$ PASTURE 989 2,606,400$ 2,635$ WOODS 187 452,600$ 2,420$ WOODS 159 385,400$ 2,424$ WOODS 111 270,000$ 2,432$ WASTE 162 188,300$ 1,162$ WASTE 496 577,800$ 1,165$ WASTE 537 626,000$ 1,166$ WETLANDS 17 16,400$ 965$ WETLANDS 2 2,300$ 1,150$ WETLANDS 121 117,000$ 967$ PERM EASMT 20 25,500$ 1,275$ PERM EASMT 42 50,600$ 1,205$ PERM EASMT - -$ -$ EXC SITE 216 1,439,100$ 6,663$ EXC SITE 335 2,258,800$ 6,743$ EXC SITE 316 1,992,100$ 6,304$ DITCH 105 DITCH 207 DITCH 180 ROAD 487 ROAD 546 ROAD 620

2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACRE 2B ACRES EMV AVE/ACREGRASSLAND 219 596,300$ 2,723$ GRASSLAND 176 492,000$ 2,795$ GRASSLAND 140 424,900$ 3,035$ WOODS 314 791,300$ 2,520$ WOODS 110 278,600$ 2,533$ WOODS 67 167,800$ 2,504$ WASTE 762 961,500$ 1,262$ WASTE 515 649,500$ 1,261$ WASTE 526 663,300$ 1,261$ WETLANDS 4 3,900$ 975$ WETLANDS 2 1,700$ 850$ WETLANDS 24 22,900$ 954$ PERM EASMT 225 284,900$ 1,266$ PERM EASMT 1475 1,790,800$ 1,214$ PERM EASMT 247 299,900$ 1,214$ DITCH 25 DITCH 8 DITCH 4ROADS 5 ROADS 32 ROADS 11

LEMOND TOWNSHIP SOMERSET TOWNSHIP AURORA TOWNSHIP

BERLIN TOWNSHIP SUMMIT TOWNSHIP BLOOMING PRAIRIE TOWNSHIP

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SITE 729 27,084,900$ 37,153$ H & G 729 98,257,800$ 134,784$ H, G & 1 a 730 125,342,700$ 171,938$

2A 2B TOTAL 2B AS %2A ACRES EMV AVE/ACRE TOWNSHIP CER AVE ACRES ACRES ACRES OF TOTAL

TILLABLE 204,255 1,526,625,400$ 7,474$ 01-Bl PRA 71.4 19,943 1019 20,962 4.9%Ave CER/Acre 75.5 02-SUM 73.0 19,673 2318 21,991 10.5%PASTURE 10,336 33,239,683$ 3,216$ 03-BERLIN 75.2 19,832 1554 21,386 7.3%WOODS 2,652 6,435,700$ 2,427$ 04-AUR 72.8 20,380 1191 21,571 5.5%WASTE 4,096 4,771,000$ 1,165$ 05-SOMERS 76.4 20,025 1266 21,291 5.9%WETLANDS 317 305,900$ 965$ 06-LEMOND 71.5 20,900 1238 22,138 5.6%PERM EASMT 144 186,500$ 1,295$ 07-HAVANA 78.5 19,312 1826 21,138 8.6%EXCESS SITE 3,358 22,035,400$ 6,562$ 08-OWAT 78.0 12,286 803 13,089 6.1%DITCH 1,181 -$ 09-MERID 81.6 21,504 215 21,719 1.0%ROAD 6,066 -$ 10-MERTON 78.9 21,192 1116 22,308 5.0%

11- MEDF 73.9 8,134 1218 9,352 13.0%2B ACRES EMV AVE/ACRE 12-C FALLS 73.1 8,026 737 8,763 8.4%

GRASSLAND 1,473 4,348,400$ 2,952$ 13-DEERF 74.4 21,198 881 22,079 4.0%WOODS 4,448 11,219,600$ 2,522$ WASTE 5,220 6,586,400$ 1,262$ TOTAL 75.5 232,405 15382 247,787 6.2%WETLANDS 464 431,670$ 930$ PERM EASMT 3,511 4,438,000$ 1,264$ DITCH 96 -$ ROADS 170 -$

STEELE COUNTY TOTALS

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City of OwatonnaAlthough we are not there yet, but there are many signs that values are returning to the pre-recession levels of 2010. Due to prevailing economic conditions, assessed values declined from 2010 to 2012. Most notably commercial industrial values declined 10% during this time period, shifting tax burden to residential properties. For 2014 the market has improved as the assessed values increased by 1.5% for the 2014 assessment for the City of Owatonna.

Residential:For the first time in four years, single family residential market values increased in aggregate in the City of Owatonna. For the 2014 assessment, single family residential properties showed signs of market recovery, showing a slight increase of 1.7%. Not all properties will change in the same manner. Each neighborhood and each property type had their own story to tell with regard to market fluctuations. Some neighborhoods saw values drop while others saw their values increase. The number of foreclosures decreased by 16% in Steele County from 2013. Foreclosure sales peaked at 175 in 2010.

The sales period for the 2014 assessment is October 1, 2012 to September 30, 2013. During this time period there were 249 arm’s length transactions that were analyzed as compared to 183 for the 2013 assessment. When analyzing the residential market by comparing residential home sale prices to the assessor’s estimated market value from the 2013 assessment this indicated a median ratio of 93.7%. Our efforts for 2014 focused on equalization between properties and between neighborhoods.

Our physical inspections (Quintile) where completed of 1,633 parcels which represents about 20% of the residential properties in the City. The area that was inspected was the neighborhoods located in the southwest and western portions of the City.

In addition, we physically inspected 52 historic homes. We segmented this market because of their unique style and specialized market. The results of our reassessment varied greatly depending on the condition of the structures.

After making market adjustments to the assessment, our final ratio improved to 96.5%. The uniformity was also improved as the coefficient of dispersion decreased from 10.0 to 8.9 (This is the measure of central tendency around the median ratio).

We revalued all vacant residential lots for the 2014 assessment. This market has been problematic as the market has been out of balance with an oversupply of lots as compared to

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demand. Each subdivision was adjusted individually based on sales information. The land valuation market is segmented into three categories; each are a distinct market:

1. Improved land with structures2. Vacant land platted and improved with utilities3. Vacant land that is platted and unimproved (raw land)

There are over 600 parcels of vacant land in the city limits. We had 14 sales leading up to the assessment; we had only 4 sales in 2013. 10 of the 14 land sales have been improved with a structure. After making our adjustments vacant land increased 4.9%. Because the market is extremely volatile the median ratio is at 88.6%.

Large tracts of raw land used for agricultural purposes continue to grow in value as these parcels increased on average 19%, this is consistent with all agricultural values in Steele County.

New Construction:The good news for real estate is that new improvements are at the highest level of the last five years as $21.7 million as compared to $8.2 on 2013 and $9.3 in 2012. Most of the new construction is from commercial/industrial properties at $15.8 million of value added. Many of these new starts are still considered partial construction as the completed values will be added in 2015.

Commercial/Industrial: The commercial and industrial properties have also been reappraised this past year. The goal of the reassessment is to improve accuracy as well as uniformity. Assessment changes varied greatly between property and property types, i.e. industrial: manufacturing and warehouse, retail, and office. The reassessment led to an average increase of 2.6%, before adding for new construction. The downtown central business district will be physically reviewed in the summer of 2014.

Apartments/Multi-family:The market has been improving for multi-family housing projects. Vacancies have been relatively low and rents have been increasing. The values were increased for the 2013 assessment by 10%. For the 2014 assessment values remained relatively stable. Apartment will be physically inspected in 2014 for the 2015 assessment. We will continue to closely monitor this market.

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City of Blooming PrairieThe 2014 assessment for the City of Blooming Prairie has been adjusted for changing market conditions with total market value increasing from $80.7 to $89.4 million (10.7%). Much of the increase is driven by new construction: $1,538,500 ($268,900 for 2013); agricultural: 16.1%; residential: 10.1% and commercial/industrial 1.5%.

Residential:

The real estate market began to show improvement with the 2013 assessment as residential properties grew 2.5%. This growth was a very positive sign after the City had experienced significant reductions in 2011 and 2012 due to economic conditions. The primary driver in the real estate recession has been the large number of foreclosures and the constraints on mortgage lending.

In 2014, the market continues to improve. There were 17 sales included in the study period (Oct 1, 2012 to Sep 30, 2013). There were 14 foreclosure or “bank” sales in the same period. County wide the number of foreclosures as decreased 16% over the past year.

Comparing the 2013 assessed values the sale properties in the study period for 2014, the indicated sales ratio calculated by the Department of Revenue was 83.9%. This is the main indicator for adjusting our market values each year.

It would appear that the market values are returning to levels prior to the market recession. The 2013 ratio was outside of the statutory requirements of 90-105%, therefore residential values were increased on average 10%. The resulting ratio for 2014 is now at statutory required levels at 95.7%.

(Time trend used by the Department of Revenue for residential Steele County was .32% per month and 3.92% per year.)

Commercial:For the second year in a row commercial/industrial sales have exceeded estimated market values. The number of sales over the last three years have indicated that values are low compared to the sale prices.There will be a complete reassessment of the City for the 2015 assessment.

Agricultural:There are 223 acres of Ag land in the City boundaries. County-wide the average increase in Ag land is 16%. Ag land values are based on the soil types attributed to each Ag parcel.

City of MedfordThe 2014 assessment for the City of Medford has been adjusted for changing market conditions with total market value increasing from $76.3 to $80.7 million (5.7%). The increase is driven by

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new construction: $1,003,600 ($575,900 for 2013); Residential: 6.4% and Commercial/Industrial remained stable from 2013.

Residential:The real estate market began to show improvement with the 2013 assessment as residential properties grew 5.6% without considering new construction. This growth was a very positive sign after the City had experienced reductions in 2011 and 2012 due to economic conditions. The primary driver in the real estate recession has been the large number of foreclosure sales and the constraints on mortgage lending. County wide the number of foreclosures as decreased 16% over the past year.

This year our department performed a complete re-evaluation of the residential properties and examined the land and buildings. Every residential property was re-appraised and the land and buildings recalculated. The goal of the city wide reappraisal is to improve market accuracy as well as assessment uniformity (equalization from one property to another).

There were 13 sales included in the study period (Oct 1, 2012 to Sep 30, 2013). There were 12 foreclosure or bank sales in the same period. Comparing our 2013 assessed values to these 2014 sales indicated a median ratio of 92%.

After making equalization adjustments from the revaluation efforts the assessment grew 5.6%. The amount of change in valuations will fluctuate from neighborhood to neighborhood. The resulting median sales ratio for residential properties is 92.7% for the 2014 assessment.

We continue to monitor sales of properties that are located in the flood plain to determine how the market responds to the new designations.

New sales so far for this year’s study (AY2015): 5 sales for our study and 1 bank sale. When applying the 2014 assessed values to these subsequent sales our ratio improves to 94.1%.

EllendaleThere were 11 sales included in the study period (Oct 1, 2012 to Sep 30, 2013)There were 9 foreclosure or “Bank” sales in the same period.Sales Ratio Median calculated by the Department of Revenue was 94.8%No value adjustments were made for the improved lots or residential buildings.

New sales so far for this year’s study (AY2015): 2 sales for our study and no foreclosure of bank sales.In 2013, there were no market adjustments for the City of Ellendale.

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Rural ResidentialResidential properties in the townships are stratified separately from the cities. With 27 sales our median sales ratio was 90.6%. Township residential was adjusted by 5% with Clinton Falls receiving a 7% adjustment as they had 6 valid sales and a ratio of 86%. After adjustments were made, the township residential is 92.1% and Clinton Falls is 95.1%.

The Steele County appraisers will be revaluing all rural residential sites in 2014 for the 2015 assessment.

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State of Minnesota Trends20

Agricultural Values for Minnesota

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2014 Steele County Assessment Comparison2013-2014 Comparison

STEELE COUNTY

County Totals 2014 2013% INC/DEC

10 Land 2,158,658,000 1,880,734,500 14.78%20 Building 1,786,519,200 1,746,709,700 2.28%30 ** Total EMV $ 3,945,177,200 $ 3,627,444,200 8.76%

Agricultural and Rural Vacant Land35 2a-House & Garage 86,993,250 87,278,650 -0.33%40 2a-1st Acre 27,126,150 26,867,450 0.96%45 2a-Hse/Gar & 1AC 114,119,400 114,146,100 -0.02%50 2a-Bldgs(Excl H/G 39,225,800 33,792,400 16.08%55 2a-Site(Excl 1AC) 22,710,200 19,759,400 14.93%60 2a-Tillable Land 1,538,446,300 1,309,332,300 17.50%65 2a-Past/Mead Land 32,105,800 35,470,500 -9.49%70 2a-Cons Program L 186,600 323,000 -42.23%73 2a-Other Prod Lan 10,116,800 8,311,300 21.72%75 2a-Total 2a Ag $ 1,756,910,900 $ 1,521,135,000 15.50%

76 # Acr 2a HGA-1AC 731 776 -5.80%78 # Acr 2a Site 3,397 3,114 9.09%80 # Acr 2a Till Lan 205,189 206,014 -0.40%82 # Acr 2a Past/Mea 9,831 10,111 -2.77%84 # Acr 2a Cons Pro 147 286 -48.60%85 # Acr 2a Oth Prod 13,125 13,150 -0.19%86 Total # 2a Acres 232,420 233,451 -0.44%

88 2b-Minor Ancil Bl 5,600 -100.00%95 2b-Woods/Timber L 10,962,400 9,631,900 13.81%

100 2b-Waste Land 6,944,400 5,925,700 17.19%105 2b-Non-Prod Other 8,214,700 6,841,100 20.08%110 2b-Total 2b Rural $ 26,121,500 $ 22,404,300 16.59%

114 # Acr 2b Woods/Ti 4,176 4,201 -0.60%116 # Acr 2b Waste La 5,595 5,638 -0.76%118 # Acr 2b Non-Prod 5,129 4,048 26.70%120 Total # 2b Acres 14,900 13,887 7.29%

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130 2c-Managed Forest $ 65,700 54,200 21.22%152 # Acres 2c Man Fo 30 30 0.00%

160 ***Total Ag/Rural $ 1,783,098,100 $ 1,543,593,500 15.52%

Total Acres 247,350 247,368

Residential170 Resid Hstd 1,502,543,162 1,465,646,012 2.52%220 Non Comm Seas Rec 10,547,900 9,183,100 14.86%180 Resid N-Hstd 167,432,238 154,421,888 8.43%400 Residential Land 372,214,350 342,666,850 8.62%410 Residential Bldg 1,297,761,050 1,277,401,050 1.59%

190 ***Total Residential $ 1,680,523,300 $ 1,629,251,000 3.15%

Apartments

230 Apartment Totals $ 98,342,400 $ 97,152,500 1.22%

Commercial and Industrial235 Man Home Pk 3,244,500 3,368,600 -3.68%240 Commercial 263,021,300 257,378,700 2.19%250 Industrial 115,401,400 96,069,700 20.12%

Total Commercial/Industrial 381,667,200 356,817,000 6.96%

NEW IMPROVEMENTS470 2a Ag 4,463,200 2,820,600 58.24%500 Resid Hstd 6,916,220 5,516,800 25.37%510 Resid N-Hstd 1,723,400 1,375,700 25.27%520 Apartments 1,292,000 1,594,800 -18.99%550 Commercial 9,319,400 1,358,000 586.26%560 Industrial 7,495,500 2,046,400 266.28%

TOTAL COMMERCIAL/INDUSTRIAL 16,814,900 3,404,400 393.92%

460 Total New Improvment 31,209,720 14,748,600 111.61%

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2014 2013 % INC/DEC10 Land 355,001,600 321,492,600 10.4%20 Building 1,260,770,400 1,248,742,700 1.0%

30 ** Total EMV 1,615,772,000 1,570,235,300 2.9%

75 2a-Total 2a Ag 13,749,900 11,494,800 19.6%120 Total # 2b Acres 30 35 -14.3%

Total Agricultural 13,893,400 11,674,500 19.0%

170 Resid Hstd 1,069,165,800 1,058,284,750 1.0%180 Resid N-Hstd 113,775,600 105,390,050 8.0%400 Residential Land 241,211,700 220,704,100 9.3%410 Residential Bldg 941,729,700 942,970,700 -0.1%

Total Residential 1,182,941,400 1,163,674,800 1.7%

Total Apartments 92,298,500 91,818,500 0.5%

235 Man Home Pk 2,703,500 2,827,600 -4.4%240 Commercial 221,426,300 213,405,800 3.8%250 Industrial 102,345,500 86,736,900 18.0%

Total Commercial and Industrial 323,771,800 300,142,700 7.9%

21,721,700 8,180,600 165.5%

500 Resid Hstd 4,039,800 2,723,100 48.4%510 Resid N-Hstd 1,161,600 1,109,300 4.7%520 Apartments 715,800 1,372,800 -47.9%550 Commercial 8,319,000 929,000 795.5%560 Industrial 7,485,500 2,046,400 265.8%

15,804,500 2,975,400 431.2%

CITY OF OWATONNA

Total New Improvements

TOTAL COMMERCIAL AND INDUSTRIAL

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Spring 2014 Fall 2013 % INC/DEC10 Land 17,387,500 15,618,300 11.3220 Building 71,974,000 65,085,800 8.21

30 ** Total EMV 89,361,500 80,704,100 10.7%

86 Total # 2a Acres 223 225 -0.88

160 ***Total AGRICULTURAL 4,423,900 3,809,300 16.1%

170 Resid Hstd 63,387,650 56,769,050 11.7%180 Resid N-Hstd 7,922,950 7,391,450 7.2%

190 ***Total RESIDENTIAL 71,310,600 64,160,500 11.1%

230 APARTMENTS 2,155,100 2,155,100 0.0%

240 Commercial 9,101,700 8,454,900 7.7%250 Industrial 2,370,200 2,127,200 11.4%

11,471,900 10,582,100 8.4%

460 TOTAL NEW IMPROVEMENTS 1,538,500 268,900 472.1%

500 Resid Hstd 728,600 117,600 519.55510 Resid N-Hstd 4,400 19,300 -77.2550 Commercial/Industrial 805,500 132,000 510.22

CITY OF BLOOMING PRAIRIE

TOTAL COMMERCIAL & INDUSTRIAL

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Spring 2014 Fall 2013 % INC/DEC10 Land 19,798,100 17,662,100 12.0920 Building 60,864,500 58,648,600 2.06

30 ** Total EMV 80,662,600 76,310,700 5.7%

86 Total # 2a Acres 93 86 8.13120 Total # 2b Acres 61 61

160 ***Total Agricultural 792,100 825,600 -4.05

170 Resid Hstd 54,637,600 51,513,600 5.67180 Resid N-Hstd 4,436,500 4,023,800 4.64400 Residential Land 11,198,800 9,286,300 20.6%410 Residential Bldg 47,875,300 46,251,100 3.5%

190 ***Total Residential 59,074,100 55,537,400 6.4%

230 Apartments 1,858,100 1,046,200 77.6%

240 Commercial 18,720,400 18,767,600 -0.3%250 Industrial 217,900 134,100 62.5%

TOTAL COMMERCIAL & INDUSTRIAL 18,938,300 18,901,700 0.2%

460 Total New Improvements 1,003,600 575,900 74.3%

500 Resid Hstd 201,600 358,000 -43.7%510 Resid N-Hstd 225,800 25,900 771.8%520 Apartments 576,200550 Commercial 192,000560 Industrial

CITY OF MEDFORD

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Spring 2014 Fall 2013 % INC/DEC10 Land 6,630,700 6,004,800 10.4220 Building 25,418,000 25,560,100 -0.96

30 ** Total EMV 32,048,700 31,564,900 1.53

160 ***Total Ag/Rural 1,603,100 944,400 69.74

170 Resid Hstd 22,561,462 22,983,462 -1.93180 Resid N-Hstd 3,495,938 3,076,638 10.97

190 ***Total Resid 26,057,400 26,060,100 -0.41

230 Apartments 1,724,200 1,826,200 -5.58

240 Commercial 1,504,000 1,574,900 -4.5250 Industrial 1,160,000 1,161,400 -0.12

460 Total New Improve 104,600 372,800 -71.94500 Resid Hstd 23,100 150,800 -84.68510 Resid N-Hstd 81,500520 Apartments 222,000

CITY OF ELLENDALE

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STEELE COUNTY 2014 TOWNSHIP ASSESSMENT

AURORA TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 138,020,000 119,432,800 15.5620 Building 24,828,400 23,770,300 3.130 ** Total EMV 162,848,400 143,203,100 13.7135 2a-House & Garage 7,061,700 7,168,900 -2.640 2a-1st Acre 2,169,700 2,005,100 8.245 2a-Hse/Gar & 1AC 9,231,400 9,174,000 -0.2350 2a-Bldgs(Excl H/G 1,814,400 1,694,600 1.3255 2a-Site(Excl 1AC) 2,199,100 2,030,200 8.3160 2a-Tillable Land 117,479,900 99,644,700 17.8965 2a-Past/Mead Land 5,890,600 6,276,100 -6.1473 2a-Other Prod Lan 1,208,700 991,500 21.975 2a-Total 2a Ag 137,824,100 119,811,100 14.8876 # Acr 2a HGA-1AC 66 68 -2.9478 # Acr 2a Site 350 339 3.2480 # Acr 2a Till Lan 16,291 16,296 -0.0382 # Acr 2a Past/Mea 1,738 1,754 -0.9185 # Acr 2a Oth Prod 1,298 1,295 0.2386 Total # 2a Acres 19,743 19,752 -0.0495 2b-Woods/Timber L 647,500 562,500 15.11

100 2b-Waste Land 489,200 420,200 16.42105 2b-Non-Prod Other 853,100 871,900 -2.15110 2b-Total 2b Rural 1,989,800 1,854,600 7.28114 # Acr 2b Woods/Ti 257 257116 # Acr 2b Waste La 391 391118 # Acr 2b Non-Prod 569 569120 Total # 2b Acres 1,217 1,217160 ***Total Ag/Rural 139,813,900 121,665,700 14.77170 Resid Hstd 19,544,700 18,158,100 6.84180 Resid N-Hstd 2,619,500 2,508,100 4.44190 ***Total Resid 22,164,200 20,666,200 6.55240 Commercial 870,300 870,300460 Total New Improve 321,000 510,300 -37.09470 2a Ag 176,800 327,400 -45.99500 Resid Hstd 144,200 182,900 -21.15

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BERLIN TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 155,462,500 133,888,400 16.1120 Building 32,075,800 30,314,200 4.9730 ** Total EMV 187,538,300 164,202,600 14.2135 2a-House & Garage 6,485,500 6,372,500 1.2740 2a-1st Acre 1,771,200 1,768,700 0.1445 2a-Hse/Gar & 1AC 8,256,700 8,141,200 1.0350 2a-Bldgs(Excl H/G 2,351,300 1,908,100 11.8755 2a-Site(Excl 1AC) 1,459,400 1,295,100 12.6860 2a-Tillable Land 132,289,300 112,318,700 17.7865 2a-Past/Mead Land 2,987,700 3,225,000 -7.3570 2a-Cons Program L 25,500 22,800 11.8473 2a-Other Prod Lan 605,800 493,900 22.6575 2a-Total 2a Ag 147,975,700 127,404,800 15.9576 # Acr 2a HGA-1AC 51 52 -1.9278 # Acr 2a Site 219 209 4.7880 # Acr 2a Till Lan 17,771 17,788 -0.0982 # Acr 2a Past/Mea 855 863 -0.9284 # Acr 2a Cons Pro 21 2185 # Acr 2a Oth Prod 928 92886 Total # 2a Acres 19,845 19,861 -0.0895 2b-Woods/Timber L 811,700 707,100 14.79

100 2b-Waste Land 977,100 846,900 15.37105 2b-Non-Prod Other 881,000 929,800 -5.24110 2b-Total 2b Rural 2,669,800 2,483,800 7.48114 # Acr 2b Woods/Ti 322 322116 # Acr 2b Waste La 777 779 -0.25118 # Acr 2b Non-Prod 473 470 0.63120 Total # 2b Acres 1,572 1,571 0.06160 ***Total Ag/Rural 150,645,500 129,888,600 15.78170 Resid Hstd 23,393,500 22,427,400 4.3180 Resid N-Hstd 2,682,200 2,414,500 10.88190 ***Total Resid 26,075,700 24,841,900 4.94220 Non Comm Seas Rec 10,288,400 8,945,300 15.01240 Commercial 528,700 528,700460 Total New Improve 253,100 518,300 -51.16470 2a Ag 248,100 171,300 44.83500 Resid Hstd 310,700510 Resid N-Hstd 5,000515 Non-Comm SRR 36,300

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Spring 2014 Fall 2013 % INC/DEC10 Land 134,462,600 115,509,900 16.420 Building 19,354,400 18,144,700 3.9630 ** Total EMV 153,817,000 133,654,600 15.0835 2a-House & Garage 6,066,100 5,890,100 2.9840 2a-1st Acre 1,980,300 2,024,700 -2.1945 2a-Hse/Gar & 1AC 8,046,400 7,914,800 1.6650 2a-Bldgs(Excl H/G 2,456,200 1,852,500 11.755 2a-Site(Excl 1AC) 2,078,500 1,601,200 29.860 2a-Tillable Land 119,872,800 101,658,700 17.9165 2a-Past/Mead Land 2,388,000 2,615,200 -8.6870 2a-Cons Program L 155,30073 2a-Other Prod Lan 863,400 685,500 25.9575 2a-Total 2a Ag 135,705,300 116,483,200 16.1676 # Acr 2a HGA-1AC 59 85 -30.5878 # Acr 2a Site 325 267 21.7280 # Acr 2a Till Lan 16,944 16,949 -0.0282 # Acr 2a Past/Mea 896 914 -1.9684 # Acr 2a Cons Pro 13985 # Acr 2a Oth Prod 1,442 1,443 -0.0686 Total # 2a Acres 19,666 19,797 -0.6688 2b-Minor Ancil Bl95 2b-Woods/Timber L 167,900 146,400 14.68

100 2b-Waste Land 688,000 589,000 16.8105 2b-Non-Prod Other 715,800 545,700 31.17110 2b-Total 2b Rural 1,571,700 1,281,100 22.68114 # Acr 2b Woods/Ti 67 67116 # Acr 2b Waste La 551 552 -0.18118 # Acr 2b Non-Prod 404 263 53.61120 Total # 2b Acres 1,022 882 15.87160 ***Total Ag/Rural 137,277,000 117,764,300 16.24170 Resid Hstd 12,341,100 11,992,900 2.04180 Resid N-Hstd 3,560,100 3,230,400 10.2190 ***Total Resid 15,901,200 15,223,300 3.77240 Commercial 610,200 638,300 -4.4250 Industrial 28,600 28,600460 Total New Improve 489,700 365,000 34.16470 2a Ag 386,800 114,000 239.29500 Resid Hstd 102,900 251,000 -59

BLOOMING PRAIRIE TOWNSHIP

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CLINTO N FALLS TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 66,345,100 57,545,900 15.2920 Building 26,414,900 25,325,500 4.1530 ** Total EMV 92,760,000 82,871,400 11.9335 2a-House & Garage 4,026,650 4,026,65040 2a-1st Acre 1,294,600 1,284,200 0.845 2a-Hse/Gar & 1AC 5,321,250 5,310,850 0.1950 2a-Bldgs(Excl H/G 642,300 630,00055 2a-Site(Excl 1AC) 755,300 813,700 -7.1760 2a-Tillable Land 50,908,700 43,205,100 17.8365 2a-Past/Mead Land 813,500 914,600 -11.0570 2a-Cons Program L 10,800 10,000 873 2a-Other Prod Lan 560,100 453,300 23.5675 2a-Total 2a Ag 59,011,950 51,337,550 14.9276 # Acr 2a HGA-1AC 30 3078 # Acr 2a Site 123 130 -5.3880 # Acr 2a Till Lan 7,027 7,02782 # Acr 2a Past/Mea 279 288 -3.1284 # Acr 2a Cons Pro 8 885 # Acr 2a Oth Prod 541 555 -2.5286 Total # 2a Acres 8,008 8,038 -0.3795 2b-Woods/Timber L 941,800 833,000 13.06

100 2b-Waste Land 350,800 243,300 44.18105 2b-Non-Prod Other 136,500 159,800 -14.58110 2b-Total 2b Rural 1,429,100 1,236,100 15.61114 # Acr 2b Woods/Ti 373 382 -2.35116 # Acr 2b Waste La 304 274 10.94118 # Acr 2b Non-Prod 72 70 2.85120 Total # 2b Acres 749 726 3.16160 ***Total Ag/Rural 60,441,050 52,573,650 14.94170 Resid Hstd 25,132,600 22,912,200 9.61180 Resid N-Hstd 2,747,450 3,151,550 -13.05190 ***Total Resid 27,880,050 26,063,750 6.87240 Commercial 2,282,400 4,234,600 -46.1250 Industrial 2,141,500460 Total New Improve 37,600 157,500 -76.12470 2a Ag 12,300 17,700 -30.5500 Resid Hstd 18,100 34,800 -47.98510 Resid N-Hstd 7,200550 Commercial 105,000

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DEERFI ELD TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 157,019,600 134,842,600 16.4420 Building 33,575,800 32,474,600 1.9830 ** Total EMV 190,595,400 167,317,200 13.9135 2a-House & Garage 9,379,200 9,557,400 -1.9240 2a-1st Acre 2,426,600 2,347,900 3.3545 2a-Hse/Gar & 1AC 11,805,800 11,905,300 -0.8850 2a-Bldgs(Excl H/G 4,283,000 4,274,900 -355 2a-Site(Excl 1AC) 2,124,300 1,692,700 25.4960 2a-Tillable Land 140,058,500 118,752,000 17.9465 2a-Past/Mead Land 1,580,700 1,894,000 -16.5473 2a-Other Prod Lan 717,500 593,000 20.9975 2a-Total 2a Ag 160,569,800 139,111,900 15.3276 # Acr 2a HGA-1AC 67 66 1.5178 # Acr 2a Site 317 275 15.2780 # Acr 2a Till Lan 19,009 19,004 0.0282 # Acr 2a Past/Mea 508 551 -7.885 # Acr 2a Oth Prod 1,097 1,09786 Total # 2a Acres 20,998 20,993 0.0295 2b-Woods/Timber L 918,400 792,500 15.88

100 2b-Waste Land 276,400 235,800 17.21105 2b-Non-Prod Other 375,200 365,900 2.54110 2b-Total 2b Rural 1,570,000 1,394,200 12.6114 # Acr 2b Woods/Ti 364 359 1.39116 # Acr 2b Waste La 225 225118 # Acr 2b Non-Prod 216 208 3.84120 Total # 2b Acres 805 792 1.64160 ***Total Ag/Rural 162,139,800 140,506,100 15.29170 Resid Hstd 25,312,900 24,485,600 2.11180 Resid N-Hstd 2,973,400 2,156,400 37.74190 ***Total Resid 28,286,300 26,642,000 4.99240 Commercial 169,300 169,300460 Total New Improve 455,400 909,100 -49.9470 2a Ag 142,500 468,700 -69.59500 Resid Hstd 309,900 284,500 8.92510 Resid N-Hstd 3,000 155,900 -98.07

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HAVANA TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 150,098,400 129,705,900 15.7220 Building 31,601,800 30,477,800 3.0630 ** Total EMV 181,700,200 160,183,700 13.4335 2a-House & Garage 8,394,200 8,440,800 -1.0440 2a-1st Acre 2,509,600 2,472,000 1.5245 2a-Hse/Gar & 1AC 10,903,800 10,912,800 -0.4650 2a-Bldgs(Excl H/G 3,019,900 2,915,700 1.2855 2a-Site(Excl 1AC) 1,999,200 1,614,700 23.8160 2a-Tillable Land 128,570,200 109,100,900 17.8465 2a-Past/Mead Land 4,095,100 4,501,000 -9.0170 2a-Cons Program L 32,800 30,200 8.673 2a-Other Prod Lan 957,400 796,800 20.1575 2a-Total 2a Ag 149,578,400 129,872,100 15.0976 # Acr 2a HGA-1AC 63 64 -1.5678 # Acr 2a Site 295 263 12.1680 # Acr 2a Till Lan 16,537 16,539 -0.0182 # Acr 2a Past/Mea 1,219 1,250 -2.4884 # Acr 2a Cons Pro 24 2485 # Acr 2a Oth Prod 1,144 1,141 0.2686 Total # 2a Acres 19,282 19,28195 2b-Woods/Timber L 993,500 866,200 14.69

100 2b-Waste Land 1,087,100 940,400 15.59105 2b-Non-Prod Other 262,800 289,900 -9.34110 2b-Total 2b Rural 2,343,400 2,096,500 11.77114 # Acr 2b Woods/Ti 394 394116 # Acr 2b Waste La 863 865 -0.23118 # Acr 2b Non-Prod 107 105 1.9120 Total # 2b Acres 1,364 1,364160 ***Total Ag/Rural 151,921,800 131,968,600 15.03170 Resid Hstd 26,122,200 24,597,600 5.86180 Resid N-Hstd 3,301,700 3,274,900 0.81190 ***Total Resid 29,423,900 27,872,500 5.27220 Non Comm Seas Rec 44,800 33,400 34.13230 Apartments 55,300 55,300240 Commercial 254,400 254,400460 Total New Improve 188,900 104,300 81.11470 2a Ag 108,000 60,300 79.1500 Resid Hstd 80,900 44,000 83.86

35

LEMOND TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 146,880,900 126,449,900 16.1520 Building 25,644,200 24,361,900 330 ** Total EMV 172,525,100 150,811,800 14.3935 2a-House & Garage 8,755,500 8,618,300 1.5140 2a-1st Acre 2,619,650 2,505,750 4.5445 2a-Hse/Gar & 1AC 11,375,150 11,124,050 2.1950 2a-Bldgs(Excl H/G 2,005,200 1,963,400 1.4655 2a-Site(Excl 1AC) 2,082,200 1,707,400 21.9560 2a-Tillable Land 128,635,800 109,211,600 17.7865 2a-Past/Mead Land 3,334,900 3,693,200 -9.770 2a-Cons Program L 44,200 40,600 8.8673 2a-Other Prod Lan 1,005,300 839,900 19.6975 2a-Total 2a Ag 148,482,750 128,580,150 15.4676 # Acr 2a HGA-1AC 75 7578 # Acr 2a Site 310 274 13.1380 # Acr 2a Till Lan 18,171 18,178 -0.0382 # Acr 2a Past/Mea 1,060 1,092 -2.9384 # Acr 2a Cons Pro 33 3385 # Acr 2a Oth Prod 1,307 1,312 -0.3886 Total # 2a Acres 20,956 20,964 -0.0388 2b-Minor Ancil Bl95 2b-Woods/Timber L 932,500 815,000 14.41

100 2b-Waste Land 878,000 734,100 19.6105 2b-Non-Prod Other 314,800 343,600 -8.38110 2b-Total 2b Rural 2,125,300 1,892,700 12.28114 # Acr 2b Woods/Ti 371 371116 # Acr 2b Waste La 708 704 0.56118 # Acr 2b Non-Prod 169 169120 Total # 2b Acres 1,248 1,244 0.32130 2c-Managed Forest 65,700 54,200 21.21152 # Acres 2c Man Fo 30 30160 ***Total Ag/Rural 150,673,750 130,527,050 15.41170 Resid Hstd 18,993,100 17,623,000 5.37180 Resid N-Hstd 2,318,650 2,279,750 1.55190 ***Total Resid 21,311,750 19,902,750 4.93240 Commercial 482,600 382,500 -1.17460 Total New Improve 551,300 174,100 216.65470 2a Ag 20,000 123,800 -83.84500 Resid Hstd 423,200 44,600 848.87510 Resid N-Hstd 3,500 5,700 -38.59550 Commercial 104,600

36

MEDFOR D TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 67,887,600 58,851,400 15.3520 Building 23,596,300 22,732,600 3.6330 ** Total EMV 91,483,900 81,584,000 12.1335 2a-House & Garage 3,646,200 3,608,200 1.0540 2a-1st Acre 1,183,700 1,190,800 -0.5945 2a-Hse/Gar & 1AC 4,829,900 4,799,000 0.6450 2a-Bldgs(Excl H/G 883,700 743,300 13.9555 2a-Site(Excl 1AC) 813,300 720,500 12.8760 2a-Tillable Land 53,453,600 45,328,200 17.9265 2a-Past/Mead Land 532,300 587,100 -9.3370 2a-Cons Program L 14,400 12,400 16.1273 2a-Other Prod Lan 775,800 646,500 2075 2a-Total 2a Ag 61,303,000 52,837,000 15.9576 # Acr 2a HGA-1AC 33 39 -15.3878 # Acr 2a Site 131 121 8.2680 # Acr 2a Till Lan 7,304 7,30482 # Acr 2a Past/Mea 174 177 -1.6984 # Acr 2a Cons Pro 12 1285 # Acr 2a Oth Prod 620 62086 Total # 2a Acres 8,274 8,273 0.0195 2b-Woods/Timber L 1,677,500 1,427,700 17.49

100 2b-Waste Land 689,600 589,700 16.94105 2b-Non-Prod Other 251,700 267,200 -5.8110 2b-Total 2b Rural 2,618,800 2,284,600 14.62114 # Acr 2b Woods/Ti 629 630 -0.15116 # Acr 2b Waste La 536 536118 # Acr 2b Non-Prod 112 111 0.9120 Total # 2b Acres 1,277 1,277160 ***Total Ag/Rural 63,921,800 55,121,600 15.89170 Resid Hstd 20,880,000 19,855,900 5.15180 Resid N-Hstd 1,911,100 1,892,800 0.96190 ***Total Resid 22,791,100 21,748,700 4.79220 Non Comm Seas Rec 214,700 204,400 5.03230 Apartments 147,700 147,700235 Man Home Pk 541,000 541,000240 Commercial 1,203,200 1,203,200250 Industrial 2,664,400 2,617,100 1.8460 Total New Improve 36,700 30,000 22.33470 2a Ag 36,700500 Resid Hstd 30,000

37

MERIDE N TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 175,890,000 150,798,400 16.6320 Building 29,633,700 27,781,600 3.4630 ** Total EMV 205,523,700 178,580,000 15.0835 2a-House & Garage 6,148,800 6,079,80040 2a-1st Acre 1,921,100 1,865,400 2.9845 2a-Hse/Gar & 1AC 8,069,900 7,945,200 0.750 2a-Bldgs(Excl H/G 2,325,100 2,137,900 6.4655 2a-Site(Excl 1AC) 1,477,200 1,219,300 21.1560 2a-Tillable Land 161,427,500 136,984,300 17.8465 2a-Past/Mead Land 1,637,000 1,822,900 -10.1970 2a-Cons Program L73 2a-Other Prod Lan 307,200 253,400 21.2375 2a-Total 2a Ag 175,243,900 150,363,000 16.4676 # Acr 2a HGA-1AC 52 51 1.9678 # Acr 2a Site 225 201 11.9480 # Acr 2a Till Lan 19,975 19,980 -0.0282 # Acr 2a Past/Mea 567 585 -3.0784 # Acr 2a Cons Pro85 # Acr 2a Oth Prod 745 74586 Total # 2a Acres 21,564 21,56288 2b-Minor Ancil Bl95 2b-Woods/Timber L 358,400 291,200 23.07

100 2b-Waste Land105 2b-Non-Prod Other 124,700 160,000 -22.06110 2b-Total 2b Rural 483,100 451,200 7.07114 # Acr 2b Woods/Ti 142 132 7.57116 # Acr 2b Waste La118 # Acr 2b Non-Prod 52 57 -8.77120 Total # 2b Acres 194 189 2.64160 ***Total Ag/Rural 175,727,000 150,814,200 16.44170 Resid Hstd 25,484,000 23,821,400 3.84180 Resid N-Hstd 3,085,300 2,735,400 12.38190 ***Total Resid 28,569,300 26,556,800 4.72240 Commercial 1,227,300 1,210,800 0.2460 Total New Improve 889,400 146,400 507.51470 2a Ag 118,000 75,500 56.29500 Resid Hstd 746,400 65,600 1037.8510 Resid N-Hstd 11,000 5,300 107.54550 Commercial 14,000

38

MERTON TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 166,217,900 145,377,300 14.3320 Building 18,693,200 18,093,100 1.9830 ** Total EMV 184,911,100 163,470,400 13.1135 2a-House & Garage 4,641,900 5,025,500 -7.6340 2a-1st Acre 1,434,000 1,486,600 -3.5345 2a-Hse/Gar & 1AC 6,075,900 6,512,100 -6.6950 2a-Bldgs(Excl H/G 2,644,100 2,836,100 -9.1455 2a-Site(Excl 1AC) 1,754,900 1,343,700 30.660 2a-Tillable Land 154,336,700 135,384,700 13.9965 2a-Past/Mead Land 1,075,000 1,344,100 -20.0270 2a-Cons Program L 8,300 7,700 7.7973 2a-Other Prod Lan 522,400 428,100 22.0275 2a-Total 2a Ag 166,417,300 147,856,500 12.576 # Acr 2a HGA-1AC 44 46 -4.3478 # Acr 2a Site 266 223 19.2880 # Acr 2a Till Lan 19,772 20,596 -482 # Acr 2a Past/Mea 322 368 -12.584 # Acr 2a Cons Pro 6 685 # Acr 2a Oth Prod 823 854 -3.6286 Total # 2a Acres 21,233 22,093 -3.8995 2b-Woods/Timber L 320,000 273,800 16.87

100 2b-Waste Land 120,800 105,800 14.17105 2b-Non-Prod Other 1,244,700 87,500 1322.51110 2b-Total 2b Rural 1,685,500 467,100 260.84114 # Acr 2b Woods/Ti 125 125116 # Acr 2b Waste La 103 118 -12.71118 # Acr 2b Non-Prod 893 29 2979.31120 Total # 2b Acres 1,121 272 312.13160 ***Total Ag/Rural 168,102,800 148,323,600 13.28170 Resid Hstd 14,174,900 13,010,000 8.93180 Resid N-Hstd 2,633,400 2,136,600 15.23190 ***Total Resid 16,808,300 15,146,600 9.82460 Total New Improve 240,700 271,400 -11.31470 2a Ag 67,300 118,200 -43.06500 Resid Hstd 2,200 153,200 -98.56510 Resid N-Hstd 171,200

39

OWATON NA TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 107,055,400 93,650,700 14.3120 Building 41,220,500 39,467,800 3.8430 ** Total EMV 148,275,900 133,118,500 11.3835 2a-House & Garage 7,248,000 7,309,800 -1.2140 2a-1st Acre 2,756,200 2,896,300 -4.8345 2a-Hse/Gar & 1AC 10,004,200 10,206,100 -2.2350 2a-Bldgs(Excl H/G 2,521,600 2,375,900 2.8955 2a-Site(Excl 1AC) 1,577,000 1,471,500 7.1660 2a-Tillable Land 82,991,200 71,063,200 16.7865 2a-Past/Mead Land 2,538,200 2,744,200 -7.573 2a-Other Prod Lan 564,900 466,700 21.0475 2a-Total 2a Ag 100,197,100 88,327,600 13.3276 # Acr 2a HGA-1AC 50 52 -3.8478 # Acr 2a Site 234 229 2.1880 # Acr 2a Till Lan 10,745 10,749 -0.0382 # Acr 2a Past/Mea 697 706 -1.2785 # Acr 2a Oth Prod 655 65586 Total # 2a Acres 12,381 12,391 -0.0888 2b-Minor Ancil Bl 5,60095 2b-Woods/Timber L 1,043,900 966,600 7.99

100 2b-Waste Land 166,900 112,700 48.09105 2b-Non-Prod Other 190,900 109,500 74.33110 2b-Total 2b Rural 1,401,700 1,194,400 17.35114 # Acr 2b Woods/Ti 394 424 -7.07116 # Acr 2b Waste La 148 149 -0.67118 # Acr 2b Non-Prod 73 43 69.76120 Total # 2b Acres 615 616 -0.16160 ***Total Ag/Rural 101,598,800 89,522,000 13.37170 Resid Hstd 33,888,600 32,453,150 4.29180 Resid N-Hstd 5,195,200 4,332,750 18.76190 ***Total Resid 39,083,800 36,785,900 5.99240 Commercial 2,823,300 3,692,100 -24.31250 Industrial 3,820,400 2,653,800 43.58260 Comm Seas Rec 547,700 438,600 24.87460 Total New Improve 233,600 585,500 -60.1470 2a Ag 103,700 267,000 -61.16475 2b Minor Ancillar500 Resid Hstd 41,700 299,900 -86.09510 Resid N-Hstd 49,200 18,600 164.51550 Commercial 29,000560 Industrial 10,000

40

SOMERS ET TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 156,366,800 135,335,400 15.5420 Building 39,509,000 35,425,500 3.5130 ** Total EMV 195,875,800 170,760,900 14.735 2a-House & Garage 7,804,600 7,651,700 -0.2940 2a-1st Acre 2,701,600 2,658,200 1.6345 2a-Hse/Gar & 1AC 10,506,200 10,309,900 0.250 2a-Bldgs(Excl H/G 4,528,500 1,887,300 3.6955 2a-Site(Excl 1AC) 1,625,500 1,543,800 5.2960 2a-Tillable Land 132,448,200 112,454,800 17.7765 2a-Past/Mead Land 3,478,400 3,686,900 -5.6573 2a-Other Prod Lan 1,192,800 989,500 20.5475 2a-Total 2a Ag 153,779,600 130,872,200 15.476 # Acr 2a HGA-1AC 72 75 -478 # Acr 2a Site 249 242 2.8980 # Acr 2a Till Lan 17,521 17,529 -0.0482 # Acr 2a Past/Mea 991 990 0.185 # Acr 2a Oth Prod 1,265 1,266 -0.0786 Total # 2a Acres 20,098 20,102 -0.0195 2b-Woods/Timber L 1,371,800 1,195,900 14.7

100 2b-Waste Land 556,600 442,400 25.81105 2b-Non-Prod Other 533,500 592,300 -9.92110 2b-Total 2b Rural 2,461,900 2,230,600 10.36114 # Acr 2b Woods/Ti 544 544116 # Acr 2b Waste La 461 461118 # Acr 2b Non-Prod 261 261120 Total # 2b Acres 1,266 1,266160 ***Total Ag/Rural 156,241,500 133,102,800 15.32170 Resid Hstd 34,707,100 33,015,400 4.99180 Resid N-Hstd 2,926,100 2,734,800 6.99190 ***Total Resid 37,633,200 35,750,200 5.14240 Commercial 1,272,900 1,220,700 0.4250 Industrial 652,900 610,600 6.92260 Comm Seas Rec 75,300 75,300460 Total New Improve 2,836,600 524,700 440.61470 2a Ag 2,746,900 182,200 1407.62500 Resid Hstd 42,400 306,800 -86.17510 Resid N-Hstd 35,700550 Commercial 47,300

41

SUMMIT TOWNSHIP Spring 2014 Fall 2013 % INC/DEC10 Land 138,133,300 118,568,100 16.520 Building 21,344,300 20,302,900 3.6130 ** Total EMV 159,477,600 138,871,000 14.8335 2a-House & Garage 7,204,600 7,485,700 -4.440 2a-1st Acre 2,304,100 2,329,000 -1.0645 2a-Hse/Gar & 1AC 9,508,700 9,814,700 -3.6150 2a-Bldgs(Excl H/G 3,676,700 3,226,400 6.2955 2a-Site(Excl 1AC) 2,258,800 1,875,700 20.4260 2a-Tillable Land 122,837,100 104,167,300 17.9265 2a-Past/Mead Land 1,578,400 1,893,100 -16.6270 2a-Cons Program L 50,600 44,000 1573 2a-Other Prod Lan 755,400 615,100 22.875 2a-Total 2a Ag 140,665,700 121,636,300 15.476 # Acr 2a HGA-1AC 68 72 -5.5578 # Acr 2a Site 336 305 10.1680 # Acr 2a Till Lan 16,979 16,975 0.0282 # Acr 2a Past/Mea 488 526 -7.2284 # Acr 2a Cons Pro 43 4385 # Acr 2a Oth Prod 1,194 1,179 1.2786 Total # 2a Acres 19,108 19,100 0.0488 2b-Minor Ancil Bl95 2b-Woods/Timber L 278,600 236,900 17.6

100 2b-Waste Land 653,400 614,900 6.26105 2b-Non-Prod Other 2,283,200 2,073,400 10.11110 2b-Total 2b Rural 3,215,200 2,925,200 9.91114 # Acr 2b Woods/Ti 111 111116 # Acr 2b Waste La 520 571 -8.93118 # Acr 2b Non-Prod 1,691 1,656 2.11120 Total # 2b Acres 2,322 2,338 -0.68160 ***Total Ag/Rural 143,880,900 124,561,500 15.27170 Resid Hstd 12,815,950 11,742,500 9.04180 Resid N-Hstd 1,847,150 1,692,000 9.16190 ***Total Resid 14,663,100 13,434,500 9.06230 Apartments 103,500 103,500240 Commercial 544,300 770,600 -29.36260 Comm Seas Rec 285,800460 Total New Improve 307,300 1,053,800 -70.83470 2a Ag 296,100 894,500 -66.89500 Resid Hstd 11,200 159,300 -92.96

42

Agricultural1783098100

45%Residential

168052330043%

Apartments98342400

2%

Commercial/Industrial381667200

10%

2014 Assessment Estimated Market Values

Agricultural

Residential

Apartments

Commercial/Industrial

43

44

The State Board of Equalization uses sales ratio studies to determine the assessment level for equalization purposes. The study may indicate inequities in the assessment. It may also help to guide assessors by providing information on which to base adjustments to the assessment with respect to neighboring counties. The studies are useful to legislators to develop tax policy or to change tax rates. Property owners may use the studies if they have concerns about unfair or inequitable treatment by assessors.

When the Commissioner of Revenue determines that there has been an unfair or inequitable assessment, the commissioner is authorized under M.S. 270C.94 to order a reassessment of any taxing district in order to make a correction. The commissioner constitutes the State Board of Equalization and in that capacity is empowered to reduce wide disparities in assessment levels between counties and among the classes of real estate within counties.

Minnesota Department of Revenue

State Board of Equalization For 2014

Steele County

I. Organization and Staffing

Steele County utilizes computer programs from Computer Professionals Unlimited to manage its tax system and Vanguard Appraisals, Inc. for its computer-assisted mass appraisal (CAMA) system. The county initiated the CAMA conversion process from Microsolve in 2012 and this process continues for 2014. The goal is to be fully implemented and functional by the 2015 assessment. The assessment in Steele County is done by a combination of efforts of the County Assessor, three appraisers, one appraiser trainee, one assessment technician, and one office support assistant. The appraisal staff consists of one Senior Accredited Minnesota Assessors (SAMA) and three Certified Minnesota Assessors (CMA), three of whom are income-qualified. A third appraiser will be promoted to Assistant County Assessor and is working toward attaining an Accredited Minnesota Assessor’s license (AMA). The assessment technician was recently promoted to fill the appraiser trainee position and is on track to be CMA within the year. The Office Specialist was promoted to assessment technician. The county assessor, Bill Effertz, is a SAMA. These individuals are responsible for the annual valuation and classification of approximately 20,500 parcels of property with a total market value of over $3.9 billion.

II. Market Trend Summary

Residential

According to the Minneapolis Association of Realtors, the median sale price of residential property increased from $144,900 to $146,900, essentially remaining flat. Average marketing time has also remained steady at between 124 and 126 days for this two year period. Overall, residential properties grew on average 6.55%.

Commercial

45

There were 6 sales county wide with 5 in the City of Owatonna and 1 in Blooming Prairie. The Blooming Prairie sale is an extreme ratio. The City of Blooming Prairie will be part of the county wide quintile reassessment for Steele County in 2014. The countywide C/I ratio is compliant. All of the C/I property in the city of Owatonna has been converted to a new CAMA system (Vanguard), with the small city and township commercial scheduled to be converted in 2014.

Apartment

In 2013, apartments were raised 10.1% but remained stable in 2014 as apartments are in the 2015 quintile for Steele County.

Minnesota Department of Revenue

Agricultural

Increases in prices paid for tillable land continue for the 3rd year, with many counties in the Region experiencing double-digit growth in estimated market value. Steele County farm land values increased approximately 16%, resulting in a sales ratio near 93% for farmland, when compared to the time adjusted sale price of qualified sales.

III. Review of Follow-Up Issues from 2013

Ag border value differences continue to exist with Rice County to the north, with tillable land values differing by greater than 10 percent.

There was only one qualified apartment sale in the County in 2013. Values were left unchanged for the 2014 assessment, with this class of property scheduled for a quintile re-inspection during 2015.

There was only one qualified commercial sale in Blooming Prairie during 2013, making the sales ratio an invalid indicator of the assessment level. Blooming Prairie is in the 2014 quintile re-inspection cycle.

IV. State Board of Equalization Orders for 2014No change

V. Follow-Up Issues for 2015

Aggregate PT Code 90 (PT’s 37, 39, 40, and 50) agricultural land less than 34.5 acres in size has a high ratio 113.1 on seven sales.

46

Minnesota Department of Revenue

Recommendations for State Board of Equalization Changes of Real Property Values for the 2014 Assessment and Recommendations for State Board of

Equalization Follow-up Issues for the 2015 Assessment

To the Assessor of Steele County:

This form contains recommendations for State Board of Equalization changes of real property values for 2014. If the county assessor wishes to appeal any of the recommended State Board of Equalization changes, he/she must provide a written appeal and any supporting documentation to the Property Tax Division at least seven days prior to the scheduled State Board of Equalization meeting. This form also contains any recommendations for State Board of Equalization follow-up issues for the 2015 assessment.

Official Recognition

By signing this document, we acknowledge that Tom Reineke has reviewed the Recommendations for State Board of Equalization Changes of Real Property Values for 2014, if any, listed on the following pages and have explained the process for appealing these recommendations. By signing this document, we also agree to address the issues, if any, in the Recommendations for State Board of Equalization Follow-up Issues for 2015 listed on the following pages.

Thank you for your interest in working with the Department of Revenue to ensure the quality and equity of your assessments in Steele County.

_________________________________________ _________________

John Hagen, Director, Property Tax Division DateMinnesota Department of Revenue

_________________________________________ _________________

Bill Effertz, County Assessor Date

_________________________________________ _________________

Tom Reineke, Regional Representative DateMinnesota Department of Revenue

47

STATE BOARD CHANGES OF REAL AND PERSONAL PROPERTY VALUES FOR 2014

To the Auditor of: Steele County

The Commissioner of Revenue does hereby certify that this form and the following schedules consisting of 3pages) are a true and official copy of all changes (including any values on Form PT 54C) in the assessment of real and personal property pursuant to Minnesota Statutes Section 270C.91. The county assessor is hereby directed to enter upon the assessment rolls of his/her county for 2014 these changes (including any values on Form PT 54C) pursuant to Minnesota Statutes Section 273.061, Subdivision 9(f). This is an order of the State Board of Equalization and cannot be appealed to the Minnesota Tax Court.

Assessment District Classification and Kind (Land, Structures) of PropertyPercentIncrease

PercentDecrease

NO CHANGES.

48

49

50

51

52

53

54