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HomeMy WebLinkAbout04-06-93 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING BOARD OF REVIEW • APRIL 6,1993 The meeting was called to order by Acting Mayor Sindt at 7:00 p.m. Roll call was taken. Present: Councilmembers Ruhmann, Sindt, Mulvihill and Harvey. Absent: Mayor Zaun. Also present: R. Erickson, City Administrator; D. Feller, Finance Director; C. Friedges, City Clerk. Mr. Feller provided an overview of the property tax structure and process for those present. He explained that the major factors that determine property taxes are: 1. Market value 2. Tax capacity class rate and resulting tax capacity value 3. Tax capacity rate and resulting property taxes He went on to explain that the entities involved in determining the City of Lakeville's tax capacity rate are: 1. Schools (58.9%) 2. Dakota County (22.7%) 3. City of Lakeville (17%) . Other regional jurisdictions such as the Mosquito Control Commission, Metropolitan Council and the Metropolitan Transit Commission levy a total of less than 2%. Mr. Feller explained that Truth in Taxation laws require the City, school districts and Dakota County to comply with stringent and complex property tax laws. Each jurisdiction is required by law to hold public hearings in November and December prior to establishing the forthcoming year's tax levy and budgets. Mr. Feller went on to explain that the State of Minnesota offers a property tax refund to renters who have household incomes of less than $35,000 and homeowners who have household incomes of less than $60,000. Property owners are also entitled to a property tax refund if their taxes have increased by more than 12%. Mr. Feller introduced Mr. Marvin Fulju, Dakota County Assessor, who explained that. the assessor's office is responsible for determining 1993 property valuations, based on current market conditions, for taxes payable m 1994. Property. sales from the period of .October 1, 1991, to September 30, 1992, were analyzed and considered in making the 1993 assessment. He outlined the assessment process, stating 113 residents from Lakeville attended the County's open book meetings held in March. Mr. Fulju explained the new homestead law, stating property owners will only have to re-apply for homestead status once every four years unless the . property has been sold. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 6, 1993 Page 2 Mr. Bill Peterson, Assessing Services Manager, opened the meeting to general questions and comments from the audience. A resident asked about the State Tax Court's authority to lower taxes. Mr. Peterson explained that .the Department of Revenue conducts its own sales ratio studies, and they require the assessors to maintain a level of assessment between 90 and 100% of market value. The median level of assessment for residential property in the City of Lakeville is at about 92 percent of market value. The State Tax Court can make adjustments, for equalization purposes, when the valuation is under 90% of market value. Mr. Gene Hokanson asked if property values in the Valley Park area are going to be adjusted because of the proposed Apple Valley gravel mine, Mr. Peterson explained that property owners would have to provide data showing that the value of their property has been lowered. He explained that assessments are determined as of January 2nd of each year.. If an adverse market condition did not exist in January, it would not be considered for valuation purposes until the following year. A resident asked why certain parcels had been re-classified of property from agricultural to homestead residential. Mr. Peterson explained that the highest and best use of the property is considered when determining the • market value of the property. When asked for the definition of "market value", Mr. Peterson stated "market value" is the most probable price that a well informed buyer would pay a well informed seller for a property without either party being unduly forced to buy or sell. Mr. Peterson explained that the. County uses a Computer Aided Mass Appraisal (CAMA) system. The CAMA system contains the land and building characteristics of all parcels within the County. The system assigns values to each of those characteristics which results in total value of the property. He explained that the appraisers are not able to physically inspect all property m Dakota County. If residents have questions about their valuations, they are invited to meet individually with the assessor's staff this evening. The assessor will, often times, schedule a physical inspection of the property upon the owner's request. Minnesota Statutes require the Board of Review to take action within 20 days of the original hearing. The Councilmembers and County Assessor concurred that Apri126th would be the best date to reconvene the Board ofReview. Acting Mayor Sindt recessed the meeting at 7:35 ~.m. to allow the property owners present to meet individually with the assessor staff. • CITY OFT .AKFVILLE SPECIAL COUNCIL MEETING APRIL 6, 1993 . Page 3 Acting Mayor Sindt reconvened the meeting at 8:25 p.m. 93.101 Motion was made by Harvey, seconded by Mulvihill to receive letters from the following property owners: The Hollingsworth Group, Inc.; William O. Cooley for Lakeville Land, Ltd.; Ray Cowdery; Ray and Barb Forliti; Robert W. Drewry; and Steve Buchannan. Roll .call was taken on the motion. Ayes, Ruhmann, Sindt, Mulvihill, Harvey. Mr, Wendel Christiansen, 17713 Junelle Path, stated he objected to the County Assessor valuing his entire parcel based on commercial values. The westerly portion of the lot (Lot 32) is adjacent to Highway 50 and contains the garage used for his landscape business. However, the easterly portion (Lot 31) contains his residence and wetlands. When Mr. Christiansen purchased the property over 20 years ago, he combined the two. lots into one parcel Mr. Christensen indicated that he felt the portion of the parcel used for his residence should have a residential value. Mr. Steve Nelson, Senior Appraiser, explained that the assessed value of the entire parcel was based on its .highest and best use. Since the property is zoned B-4, the value of the land was based on $.94 per square foot. Even though the market value is based on commercial land values, the property taxes are based on a homesteaded residential property classification rate (1% • of the first $72,000 and 2% of the balance in excess of $72,000). The Council directed staff to work with Mr. Christensen and Mr. Nelson to review this matter and return to the Board of Review with a recommendation when it reconvenes on Apri126th. Mr. Jeff Krapu, representing Jeff Belzers Todd Chevrolet, stated he was in opposition to the value placed on a vacant parcel located to the south of the automobile dealership. Mr. Nelson .stated that both parcels are considered to be one complete use .and are valued as one commercial entity. He stated that his office has asked Mr. Belzer to .document all costs associated with the remodeling/expansion of :his facility, and that information has not yet been received. He also requested Mr. Belzer provide specific cost information for the improvements on this parcel. Mr. Krapu was asked to submit a letter from the blacktop contractor which specifies the dollar amount of the improvements to the vacant parcel only, and the Board of Review will act on this matter when it reconvenes on April 26th. 93.102 Motion was made by Harvey,. seconded by Ruhmann to receive the open book meeting appeals and refer them to the County Assessor's office. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann. 93.103 Motion was made by Harvey, seconded by Mulvihill to reconvene the Board of Review meeting on Apri126, 1993, at 7:00 p.m. CITY OF i .AKRVILLE SPECIAL COUNCIL MEETING APRIL 6,1993 • Page 4 Acting Mayor Sindt adjourned the meeting at $:55 p.m. Respectfully submitted, ~ Charlene Friedges, Ci ler etty ,Acting Mayor • •