Hardwick city property values increase; rural land values remain the same

The city of Hardwick conducted its annual Board of Appeals and Equalization meeting Wednesday night, May 2.
No members of the public attended the meeting to discuss the 2018 valuation of properties.
County Land Records Director Tom Houselog said the small cities in Rock County increased at the same 5 to 5.5 percent level based on a five-year assessment history.
Acreage values also increased 5 to 6 percent.
“When sales have taken place, our market values have been on the low side and sometimes dangerously low,” Houselog said. 
“We are in danger of falling out of favor with the Department of Revenue when they look at the five-year history of the property.” 
Agricultural values of cropland and pastureland kept the same values as in 2017.
Residential property values in the city of Luverne increased from 5 to 25 percent. Hills increased from 5 to 15 percent. 
The increases were based on sales from October 2016 to September 2017.
“There has been phenomenal market activity there,” he said. 
“Our market values in relationship to those sales were dangerously low. We had to make some drastic changes.”
State statute requires market values of similar properties stay between the percentages of 90 to 105 percent. 
Analysis of qualifying sales above and below that percentage determines if a particular market’s value is increased or decreased.
Houselog also presented city officials with a list of taxpayers within the city limits and payment amounts.
 
Council discusses rural service district idea
Seven out of Hardwick’s 10 top taxpayers are owners of agricultural land. Hardwick’s city limits encompass more than 1,000 acres of cropland, the largest in the county.
These taxpayers have talked with council members in the past but did not attend the May 2 meeting to appeal the agricultural properties’ higher assessed value because it’s located within the city limits of Hardwick.
The city could designate areas within its limits as rural service districts.
As a rural service district, each affected parcel could be individually assessed based on if they receive city-maintained water, garbage or sewer disposal services.
 “You would have different rates for the farmers;  they would pay lower rates for the fact they are not getting all the city services,” Houselog said.
Only those parcels currently classified as agricultural land and within the corporate city limits could be eligible for possible distinction as a rural service district.
Houselog said the city of Steen has had similar property tax discussions but no one has stepped forward to petition out of the city limits.
“I think we should come up with a plan so we are ready,” he said.
Only one rural service district has been established in the area. That area was designated by the city of Woodstock in Pipestone County.