Two residents voiced concerns to the Board of Equalization at Monday's public hearing about 2012 property valuations before the corrected values were unanimously approved. Residents of the nearly 60 properties impacted by the increase or decrease in values will receive a notification if they are in excess of 25 percent or if received a notification previously and didn't fall into the 10 percent or greater category.
The board will convene at 3:30 p.m. May 21 at City Hall, where residents may contest the changes.
"I hope people who contest will call and visit with me first though, so we can go over the values," said Joe Hirschfield, city assessor.
Birdi Privratsky, who built a home in Dickinson last year with her husband, has spoken with Hirschfield and addressed the board Monday with concerns about the assessment process.
"When received our new 2012 assessment the letter stated I could go on the website and I could look, but it only showed for 2011, so I couldn't really compare how ours were going up compared to everyone else's, the neighborhood or the entire city for that matter," she said. "In talking to the assessor, I was informed that they were going up due to the sales within the city. I understand that, but I couldn't really find out how they arrived at the figure and I was questioning the lots.
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"I feel that developers are purchasing lots and that's what you're basing your prices on -- lots that are being purchased. In researching, I felt that these lots were not being valued higher, but yet the landowners, the people adjacent to the lots, are getting an increase, but the value of the lots were not immediately getting an increase until the home was put on the lot. At that time, then it went up, but sometimes the neighbors would get increased but the vacant lot owners would set there with hardly a very fair assessment."
After speaking to Hirschfield, Privratsky said changes might be needed to the assessment process.
"I still think there needs some work done on that because if I own a lot that is .75 acres and my neighbor's owns a lot that is one-point-some acres, and I'm not really sure how they arrive at how we should be assessed," she said. "We are neighbors and in the same neighborhood. Our land values should be fairly assessed."
Hirschfield said valuing properties starts with land costs.
"We look at the vacant lot sales that have happened throughout the city of Dickinson," he said. "We break it down into several strata- location, size, including utilities. Generally, these larger lots, there's a little more to those than to a typical neighborhood, 7,000- to 10,000-square-foot lot. They sell for what they do. These larger lots are a little bit different.
"We look at what the markets tell us. We some of the larger lots, the 5-acre lots like Mrs. Privratsky was talking about, being subdivide or split into smaller parcels. Generally, most of those are being sold off at an acre or slightly less or more, but that acre just about catches most of those."
Larger lots, like the Privratsky's, are valued differently, Hirschfield explained.
"We value that first acre at the same rate to around $37,000," he said. "From there, you look at the excess land. Not everybody wants to have to mow five acres. Lots in excess of one acre, generally bring a little bit less money back so we've discounted those lots to around $12,500 for additional acreage, including vacant lots.
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"Vacant lots also oftentimes are discounted again to half value due to the fact that they are not stubbed in with water or sewer, and they just don't have the value that your fully developed lot does. It's not an apple to apple comparison."
Another resident had concerns about the property locations.
"Our property is located near the Heart River, we actually live in the flood plain," he said. "Our home kind of falls under that 100 year old home that is experiencing growth in the value because people are saying they don't they just need a place to live. We fall into that category. In addition to zoning, are you factoring in the area it's in?"
Hirschfield said "properties in similar location, in similar influences" are taken into consideration.
