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Home My WebLink About04-09-96 • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING BOARD OF REVIEW APRIL 9, 1996 The meeting was called to order by Mayor Zaun at 7:00.p.m. Roll call was taken.. Present: Councilmembers Johnson, Sindt, Holberg and Mayor Zaun. Absent: Councilmember Mulvihill. Also .present: B. Erickson, City Administrator; D. Feller, Finance .Director; C. Friedges, City Clerk. Mr. Feller provided an overview of the property tax structure and the method by which. property taxes are calcufiated. He explained that the major factors that determine property #axes are: • Market Value • Tax capacity class rate and resulting tax capacity value • Tax capacity rate and resulting property taxes He went on to explain that the property tax dollar is distributed to the. various tax jurisdictions as follows: • • School Districts (56.6%) • Dakota County (23.2°~) • City of Lakeville (:18.5°~) • Miscellaneous, i.e. Metropolitan Council Mosquito Control (1.7°~) The tax capacity class rate is established by the State Legislature and will vary by type of property classification. Market value is multiplied by this percentage to determine the tax capacity value. For taxes payable in 1996, for example, houses less than $72,000 have a tax capacity rate of one percent. However, for any values in excess of $72,000, the rate increases to two percent. Commercial/industrial property is calculated at 3% for the first $100,000 and 4.6% of the amount over $1.00,000. The tax capacity value is multiplied by the tax capacity rate to determine the. final property tax. Mr. Feller indicated that the City of Lakeville has had the lowest tax capacity rate of any city over 5,000 population. in Dakota County for the last four years. Mr. Feller explained that the State of Minnesota offers a property tax refund to property owners if their taxes have increased by more than 12°~ and $100.. Mr. Marvin Pulju, Dakota County Assessor, explained that the assessor's office • is responsible for determining 1996 property valuations, based on current market conditions, for taxes payable in 1997. Property sales from. the period of ' ?4 CITY OF LAKEVtLLE SPECIAL COUNCIL MEETING APRIL 9, 1996 PAGE 2 • October 1, 1994, to September 30, 1995, were analyzed and considered in determining the 1996 assessments. He explained that the County uses a Computer Aided Mass Appraisal (CAMA) system to calculate the market value based on the property's physical characteristics and other factors, such as market (sales) trends.. The estimated market value should be very close to the amount the. property would selfi far if placed on the open market. He explained that the .State. Board of Equalization requires the median value of assessment to be between 90% and 105% of market value. Lakeville's median values are at 95°k of market value. Mr. Pulju pointed out that the average increase in market value for residential property in the City of Lakeville is approximately 3.9%. Mr. Pulju stated 166 Lakeville property owners attended the .Open Book meetings held in March. A majority of the appraisal inspections scheduled at the Open Book meetings have been completed by the County's appraisal staff. He explained that if residents in attendancehave questions about their valuations, they are .invited to -meet individually with the appraisers this evening. He explained that if, after the Board of Review hears appeals, property owners. still feel that their valuations are unjus#ified, they may appeal to the County Board of Equalization and the State Tax Court. Mr. Bil! Peterson, Manager of Residential Properties with the Qakota County Assessor's Office, explained that certain areas in the City oflakeville were physically re-evaluated during the past year, including Lake Villa Golf Estates, Brackett's subdivisions and the area west of Cedar Avenue and east of Ipava Avenue. Mayor Zaun opened the meeting to general .questions and comments. There were none. At this time, the County Assessor's staff began mee#ing individually with property owners in attendance. Mayor Zaun recessed the Board of Review .meeting at 7:25 p.m. The meeting was reconvened at 8:1.0 p.m. Mr. t'ulju reported that his staff met individual y with 25 property owners to review their property valuations. He stated that the Assessor's staff will conduct on-site inspections with nine property owners who were in attendance and will. contact 10 property owners who had provided written appeals. The results will be presented to the Board of Review when it reconvenes. The City Council agreed to reconvene the Board of Review m®eting on • Monday, April 15, 1996, at .7:00 p. m. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 9, 1996 PAGE 3 96.59 Motion was made by Johnson, seconded by Nalberg to receive letters from the following property owners and refer them to the Dakota County Assessor's office: • .Mrs. Michael Nielsen • Shelley Snedeker • Gene G. Gopon • David Field, Field Financial Corp. • Colleen Clausen and Marc 0uimet • Bruce E. Wambolt • Mr. and Mrs. Monte Joe Sherman • Robert D, & Diane R. Stewart • Warren R. Walters • William J. Scripps Roll.. call was taken on the motion. Ayes, .Johnson, Zaun,. Sindt, Holberg. Mr. Robert Whitestone, 20785 Junco Court,. stated he feels his property is over-valued in comparison to his neighbor's property. Mayor Zaun requested • the County Assessor's office do a field inspection of Mr. Whitestone's property and report back to the Board of Review on April 15th. Mayor Zaun recessed the meeting until Monday, April 15, 1996. 8:25 p.m. Respectfully submitted, s Charlene Friedges, C' Clerk U~ Du a Zaun, Mayor