Board of Commissioners

AGENDA ITEM REPORT

Subject: Preliminary Ratios

Meeting: Board of Commissioners - 21 Nov 2023
Department: Assessor
Staff Contact: Maria Shepherd, County Assessor

BACKGROUND INFORMATION:
2023 Sales study ended on September 30, 2023. We received our time trends, sale counts and
preliminary ratios. This is to give you a heads up on where we are starting from and what I think we
will need to do.

ATTACHED DOCUMENTS:
2023 Sales Study Summary
 2023 Sales Study Summary
October 1, 2022 thru September 30, 2023

In general, we are still in an appreciating market. Even after the large increases to property
values over the last several years we are still below what residential and seasonal properties
are selling for on the open market. We are not at a bad starting point with our improved
seasonal and residential properties. We will need to increase our land rates and values on all
acreage. Countywide Residential/Seasonal properties are starting at a ratio of 90%. Countywide
land parcels are starting at an average ratio of approximately 75%. These compare to the last
two years starting ratios of 84% for residential and seasonal properties and 83% for land in
2022 and 70% and 71% in 2021. As a reminder a township, city or neighborhood that has 6 or
more sales must have a median ratio that falls within 90% - 105%. For areas that have fewer
than 6 sales we will look back at the previous 3 years typically to determine what the pattern is
and make appropriate adjustments both up and down. The 32 taxing districts, cities and
townships have a preliminary ratio range of 42.06% to 141.08%, and an average ratio of
92.54%.
Neighborhoods in Hubbard County are largely organized around lakes, as the market demand
for certain lakes can vary from the general on the water values. There are five lakes that had 6
or more sales that will need to be adjusted for compliance. There are several other lakes with
fewer than 6 sales that will need to be addressed for consistency.
Countywide residential values will need to be adjusted by an average value of 10% which will be
a combination of land, improvement, shoreline and neighborhood adjustments. Individual
neighborhood adjustments will range from 15% to 20%.
Land values will need to be adjusted by 20% overall with higher adjustments needed on parcels
greater than 34.5 acres, primarily on agricultural parcels.
Lakes that will need value adjustments include Belletaine, Long, Big Stony, 8th Crow Wing,
Island, Spider and Potato. These adjustments are likely going to be applied to (neighborhoods
or shoreline) rates.
Commercial parcels are starting at a countywide ratio of 85% and will need an overall increase
of 15% for compliance.
Time trend rates for the 2023 sales study are at an average of 6% for improved properties,
which compares to the 2022 rate of 15% and the 2021 rate of 25%. Time trends are the change
in value from the start of the sales study to the end of the sales study for the property type
divided by 12 and applied to the sales price to provide the expected sales price if it were to have
happened on January 2nd.
We will be proposing value adjustments to end with ratios between 95-100% to account for
variations and to minimize future increases to be in line with actual market trends and not due to
carryover values.

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Countywide:
Property Property Name Water Prelim Ratio Sale
Type Status Count
6 Commercial - 84.92% 24
91 Residential / Seasonal Both 90.58% 326
91 Residential / Seasonal Off Water 90.81% 181
91 Residential / Seasonal On Water 90.81% 145
92 – 93 – 95 Land > 34.5 Acres - 70.74% 33
96 Land < 34.5 Acres Both 78.31% 101
96 Land < 34.5 Acres Off Water 76.18% 72
96 Land < 34.5 Acres On Water 89.42% 29

Lakes that had 6 or more sales

Lake Name Prelim Ratio # of Sales
Belletaine 81.21% 13
Big Stony 92.65% 7
Island (Arago Twp) 102.58% 6
Long 90.27% 8
Potato 90.20% 6

Time Trends
Off Water Properties 5.0875% - 7.2638%
On Water Properties 5.2423% - 6.2409%
Rural Vacant Land / Ag Properties 15.80%

A time trend on agricultural and large tracts of bare land is not something we have seen in
recent years. Almost every county in our surrounding area as well as in our region saw larger
time trends on bare land.

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 Residential and Seasonal Properties
As a reminder a township or city that has 6 or more sales must have a median ratio that falls
within 90% - 105%. For areas that have fewer than 6 sales we will look back at the previous 3
years typically to determine what the pattern is and make appropriate adjustments both up and
down.

Township / City (# of Sales) (# of Sales) Combined

Off Water On Water
Akeley Twp (3) 100.71% (1) 141.08% (4) 111.37%
Arago Twp (9) 98.88% (11) 101.59% (20) 100.23%
Badoura Twp -- (2) 125.01% (2) 125.01%
Clay Twp -- -- --
Clover Twp (1) 56.19 (4) 90.66% (5) 79.88%
Crow Wing Lake Twp (1) 42.06% (12) 87.31% (13) 84.10%
Farden Twp (7) 88.89% (4) 68.04% (11) 86.63%
Fern Twp (2) 122.00% -- (2) 122.00%
Guthrie Twp (2) 113.34% -- (2) 113.34%
Hart Lake Twp (5) 106.12% -- (5) 106.12%
Helga Twp (7) 92.33% (1) 110.50% (8) 94.70%
Hendrickson Twp (3) 97.96% -- (3) 97.96%
Henrietta Twp (11) 79.48% (6) 84.22% (17) 82.31%
Hubbard Twp (7) 108.35% (14) 87.40% (21) 90.24%
Lake Alice Twp (1) 97.08% (3) 71.08 (4) 84.08%
Lake Emma Twp (4) 102.74% (13) 103.14% (17) 103.14%
Lake George Twp (1) 65.95% (5) 91.56% (6) 85.59%
Lake Hattie Twp (1) 95.44% -- (1) 95.44%
Lakeport Twp (10) 85.69% (5) 81.12% (15) 83.75%
Mantrap Twp (4) 83.58% (12) 88.56% (16) 86.00%
Nevis Twp (5) 104.44% (21) 80.19% (26) 81.48%
Rockwood Twp (2) 89.39% (3) 94.72% (5) 94.72%
Schoolcraft Twp -- (2) 83.88% (2) 83.88%
Steamboat River Twp (1) 81.46% -- (1) 81.46%
Straight River Twp (5) 115.07% (4) 95.62% (9) 95.67%
Thorpe Twp -- (1) 94.98% (1) 94.98%
Todd Twp (10) 85.25% (7) 97.52% (17) 89.54%
White Oak Twp (3) 101.19% (5) 98.49% (8) 99.84%
Akeley City (6) 87.10% (1) 68.66% (7) 86.46%
Laporte City (1) 71.37% -- (1) 71.37%
Nevis City (7) 96.57% -- (7) 96.57%
Park Rapids City (61) 90.81% (7) 84.74% (68) 90.70%

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