HomeMy WebLinkAbout4. Estimated Market Value Increases for 2023 Memo
City of Lakeville
Finance Department
Memorandum
To: Economic Development Commission
Justin Miller, City Administrator
David Olson, Community & Economic Development Director
From: Jerilyn Erickson, Finance Director
Date: May 24, 2022
Subject: Lakeville Growth
The City of Lakeville has experienced significant growth in the past twenty years. Data is
being presented from multiple sources as well as points in time when the information was
available.
The following table shows a few statistics:
Statistic 2000 2010 2020 Prelim
2023
Population 43,128 55,954 69,490
Street Miles 210 261 310
Parks 52 59 61
Parks (Acres) 1,306 1,663 1,677
Water mains (Miles) 205 311 367
Fire hydrants 2,286 3,386 4,080
Sewer mains (miles) 186 259 278
Taxable Market Value N/A $5.7 Billion $8.1 Billion $11.6 Billion
Sources: U.S. Federal Census, Lakeville Annual Comprehensive Financial Reports & Dakota County
Exhibit A-1 shows a summary of the changes in taxable market value from 2010 through
preliminary 2023. It is important to note that the payable year values are based on
assessment values as of January 2 of the prior year which are determined during the sales
study period.
Sales Study Period October 2020 – September 2021
Assessment Valuation Date January 2, 2022
Tax Payable Year 2023
The full value of building permits issued in 2022 probably won’t be included in the market
value totals until 2024 or 2025.
Exhibits A-2 and A-3 show the market value growth from valuation and new construction.
The following charts show that even though the total value has increased $5.9 billion from
2010 through 2023, the distribution of values by asset classification hasn’t changed
significantly.
Preliminary
Taxable Market Value 2010 2023
TMV-Residential 4,809,249,700 9,942,596,638
TMV-Commercial 557,172,700 593,516,900
TMV-Industrial 154,246,800 488,333,900
TMV-Apartments 92,296,000 443,493,400
TMV-Other 123,637,000 131,262,220
5,736,602,200 11,599,203,058
Last year, I presented a stratification of property values (taxable market values) for
residential, apartments, commercial and industrial asset classifications using payable 2021
data. The data has not been updated for 2023.
For reference though from last year’s report:
Residential - About 44% of properties had a taxable market value at $300,000 or less.
Commercial - About 49% of properties had a taxable market value at $750,000 or less.
Industrial - About 48% of properties had a taxable market value at $1,250,000 or less.
Estimated Market Value
The Payable 2023 median “estimated market value” for residential properties is $428,600.
The following chart shows the changes in both the mean (average) and the median estimated
market values for residential properties in Lakeville.
The median valued home increased by 19.62%. The change in market value of a property is
one factor that impacts the amount of change in the property taxes.
Factors Impacting Property Taxes
An increase in the value of a property doesn’t automatically mean an increase in the property
taxes. There are multiple factors that impact the taxes paid by a property owner:
1) Changes to the tax levy;
2) Changes to market value of your property;
3) Changes to market value for the City;
4) Legislative changes to the property classification rates, state aid formulas, etc.
Tax Capacity Rate
Due to the City’s significant growth and conservative tax levy increases, Lakeville’s tax
capacity rate has declined since 2013 and is the lowest since 2010. The following chart
shows the tax capacity rates from 2010 through 2022:
Per Dakota County - City of Lakeville - Updated Estimated Market Values
PRELIM
Payable 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mean/Average 236,457$ 244,232$ $268,131 277,540$ 284,519$ 299,608$ 319,760$ 341,855$ 350,931$ 374,223$ 446,964$
Median 216,650$ 226,450$ $247,650 258,200$ 266,700$ 282,100$ 304,600$ 326,300$ 336,600$ 358,300$ 428,600$
Change from PY
Average 3.29% 9.79% 3.51% 2.51% 5.30% 6.73% 6.91% 2.65% 6.64% 19.44%
Median 4.52% 9.36% 4.26% 3.29% 5.77% 7.98% 7.12% 3.16% 6.45% 19.62%
Change from 2013
Average 89.03%
Median 97.83%
Attachments:
1) Exhibit A-1 – Lakeville Taxable Market Valuation Summary
2) Exhibit A-2 – Taxable Market Value Growth (Percentage)
3) Exhibit A-3 – Taxable Market Value Growth (Amount)
CITY OF LAKEVILLE
Summary
2010 2011 2012 2013 2014 2015 2016 2017 2018
Taxable Market Value (ALL)5,736,602,200 5,356,855,900 5,030,003,164 4,767,475,321 4,995,818,217 5,553,395,148 5,825,279,418 6,201,221,856 6,702,242,762
TMV-Residential 4,809,249,700 4,462,812,900 4,150,860,458 3,877,744,947 4,082,756,380 4,613,707,745 4,880,265,929 5,212,594,355 5,661,668,586
TMV-Commercial 557,172,700 525,218,800 517,526,200 512,271,700 516,584,400 513,891,100 515,779,100 546,249,700 574,406,000
TMV-Industrial 154,246,800 147,547,000 142,391,700 142,251,200 139,556,100 139,886,600 144,410,000 148,593,400 154,617,100
TMV-Apartments 92,296,000 103,663,200 103,163,200 106,844,100 119,436,200 132,386,400 134,843,400 141,186,500 157,707,200
TMV-Other 123,637,000 117,614,000 116,061,606 128,363,374 137,485,137 153,523,303 149,980,989 152,597,901 153,843,876
Taxable Market Value %
TMV-Residential 83.8%83.3%82.5%81.3%81.7%83.1%83.8%84.1%84.5%
TMV-Commercial 9.7%9.8%10.3%10.7%10.3%9.3%8.9%8.8%8.6%
TMV-Industrial 2.7%2.8%2.8%3.0%2.8%2.5%2.5%2.4%2.3%
TMV-Apartments 1.6%1.9%2.1%2.2%2.4%2.4%2.3%2.3%2.4%
TMV-Other 2.2%2.2%2.3%2.7%2.8%2.8%2.6%2.5%2.3%
Tax Capacity %
TC-Residential 74.4%73.7%72.6%71.1%71.8%73.8%74.7%75.0%75.6%
TC-Commercial 16.6%16.8%17.5%18.2%17.6%15.9%15.3%15.2%14.9%
TC-Industrial 4.7%4.8%4.9%5.1%4.8%4.4%4.3%4.2%4.0%
TC-Apartments 1.7%2.1%2.2%2.4%2.6%2.6%2.5%2.5%2.6%
TC-Other 2.5%2.7%2.9%3.3%3.3%3.3%3.1%3.1%2.9%
MV-New Construction (ALL)79,973,300 68,290,800 46,855,000 53,156,700 99,465,900 137,618,500 135,108,400 145,432,600 177,136,800
MV-Residential 64,708,400 47,557,400 45,323,600 47,420,000 73,697,300 121,276,000 129,319,700 126,294,400 153,604,600
MV-Commercial 11,120,100 3,520,600 1,531,400 3,799,900 12,110,600 4,994,300 1,492,800 16,575,400 14,659,700
MV-Industrial - 57,300 - 139,300 2,023,500 606,000 4,028,400 2,351,300 8,365,000
MV-Apartments - 17,147,900 - 1,530,000 11,367,000 10,392,600 - 211,500 507,500
MV-Other 4,144,800 7,600 - 267,500 267,500 349,600 267,500 - -
Growth:
Valuation (368,036,600) (448,037,100) (373,707,736) (315,684,543) 128,876,996 419,958,431 136,775,870 230,509,838 323,884,106
New Construction 79,973,300 68,290,800 46,855,000 53,156,700 99,465,900 137,618,500 135,108,400 145,432,600 177,136,800
(288,063,300) (379,746,300) (326,852,736) (262,527,843) 228,342,896 557,576,931 271,884,270 375,942,438 501,020,906
Growth:
Valuation -6.1%-7.8%-7.0%-6.3%2.7%8.4%2.5%4.0%5.2%
New Construction 1.3%1.2%0.9%1.1%2.1%2.8%2.4%2.5%2.9%
-4.8%-6.6%-6.1%-5.2%4.8%11.2%4.9%6.5%8.1%
G:\Budget\Market Valuation Information\Historical Market Valuation Information-Prelim 2023 : Summary 5/16/2022
EXHIBIT A-1
CITY OF LAKEVILLE
Summary
Taxable Market Value (ALL)
TMV-Residential
TMV-Commercial
TMV-Industrial
TMV-Apartments
TMV-Other
Taxable Market Value %
TMV-Residential
TMV-Commercial
TMV-Industrial
TMV-Apartments
TMV-Other
Tax Capacity %
TC-Residential
TC-Commercial
TC-Industrial
TC-Apartments
TC-Other
MV-New Construction (ALL)
MV-Residential
MV-Commercial
MV-Industrial
MV-Apartments
MV-Other
Growth:
Valuation
New Construction
Growth:
Valuation
New Construction
3/14/2022
Preliminary Change
2019 2020 2021 2022 2023 22 to 23
7,374,033,988 8,106,672,140 8,636,691,303 9,503,255,659 11,599,203,058 22.1%4,896,960,296 73.1%6,831,727,737 143.3%
6,255,324,242 6,894,948,126 7,303,921,157 8,087,533,315 9,942,596,638 22.9%4,280,928,052 75.6%6,064,851,691 156.4%
502,288,200 525,456,800 569,920,900 572,487,300 593,516,900 3.7%19,110,900 3.3%81,245,200 15.9%
277,314,100 297,020,100 341,209,100 382,959,000 488,333,900 27.5%333,716,800 215.8%346,082,700 243.3%
185,127,200 228,141,100 261,099,600 317,838,900 443,493,400 39.5%285,786,200 181.2%336,649,300 315.1%
153,980,246 161,106,014 160,540,546 142,437,144 131,262,220 -7.8%(22,581,656) -14.7%2,898,846 2.3%
84.8%85.1%84.6%85.1%85.7%
6.8%6.5%6.6%6.0%5.1%
3.8%3.7%4.0%4.0%4.2%
2.5%2.8%3.0%3.3%3.8%
2.1%2.0%1.9%1.5%1.1%
76.2%76.7%75.9%76.9%78.1%
11.8%11.3%11.5%10.5%8.9%
6.6%6.4%6.9%7.1%7.4%
2.7%3.0%3.2%3.6%4.1%
2.7%2.5%2.4%1.8%1.4%
206,914,200 221,759,800 221,257,100 291,357,400 392,824,400 34.8%1,334,112,900 100%2,028,875,100 100%
164,738,200 186,333,100 184,379,700 240,364,400 286,629,300 19.2%1,062,444,700 79.64%1,666,636,700 82.15%
11,161,600 5,776,800 17,820,600 1,615,400 7,581,000 369.3%43,955,400 3.29%93,788,200 4.62%
15,657,000 4,029,500 9,055,700 10,590,400 56,003,800 428.8%95,336,400 7.15%112,710,600 5.56%
15,357,400 25,620,400 9,998,800 38,725,900 42,217,800 9.0%131,920,300 9.89%154,398,900 7.61%
- - 2,300 61,300 392,500 540.3%456,100 0.03%1,340,700 0.07%
464,877,026 510,878,352 308,762,063 575,206,956 1,703,122,999 3,562,847,396 72.8%4,802,852,637 70.3%
206,914,200 221,759,800 221,257,100 291,357,400 392,824,400 1,334,112,900 27.2%2,028,875,100 29.7%
671,791,226 732,638,152 530,019,163 866,564,356 2,095,947,399 4,896,960,296 100.0%6,831,727,737 100.0%
6.9%6.9%3.8%6.7%17.9%New Construction: Last Five of Last Ten 66%
3.1%3.0%2.7%3.4%4.2%
10.0%9.9%6.5%10.0%22.1%
Totals 2019-2023
Change from
2018 to 2023
Totals 2019-2023 Totals 2014-2023
TEN YEARSFIVE YEARS
Totals 2014-2023
Change from
2013 to 2023
G:\Budget\Market Valuation Information\Historical Market Valuation Information-Prelim 2023 : Summary 5/16/2022
G:\Budget\Market Valuation Information\Historical Market Valuation Information-Prelim 2023 : Summary 5/16/2022
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market Value Growth 2010-2023
Valuation New Construction
EXHIBIT A-2
G:\Budget\Market Valuation Information\Historical Market Valuation Information-Prelim 2023 : Summary 5/16/2022
(1,000,000,000)
(500,000,000)
-
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Market Value Growth 2010-2023
Valuation New Construction
EXHIBIT A-3