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Home My WebLink About04-09-92 CITY OF i AKRVILLE SPECIAL COUNCIL MEETING BOARD OF REVIEW APRIL 9,1992 The meeting was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken.. Present: Councilmembers Ruhmann, Sindt, Mulvihill, Harvey and Mayor Zaun. . 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 process for those present. He explained that the major factors which determine property taxes are: 1. Market value 2. Classification % and resulting tax capacity value 3. Tax capacity rate and resulting property taxes The entities involved in determining the City of Lakeville's tax capacity rate are: 1. Schools (57%) 2. County (23%) 3. City (18%%) Other regional jurisdictions such as the Mosquito Control Commission, Metropolitan Council and the Metropolitan Transit Commission levy a total of less than 2 percent. He ..explained that there are a number of elements which affect a jurisdiction's tax levy. .The City, for example, has been required to comply with very punitive state mandated restrictions which limit the City's ability to levy based on increased population. This has resulted in lower City taxes for residents. The amount of property tax relief aids distributed by the State also has a significant effect on property taxes. The state aids to Lakeville decreased by $222,000 from 1991 to 1992. Mr. Feller went on to explain 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. He explained 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 refund if their taxes have increased by more than 10 percent. Mayor Zaun then introduced Mr. Marvin. Pulju, Dakota County Assessor. Mr. Pulju explained that their job at the assessor's office is to review 1992 property valuations, based on the current market conditions, for taxes payable in 1993. He explained that the assessor's office sent property CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 9,1992 . PAGE 2 valuation notices in February, and held Open Book meetings in March to discuss those valuations with the property owners. He stated property owners who are still .not satisfied with their valuations after meeting with the assessor's staff can appeal to the City Council serving as the local Board of Review. The next step, if a matter is not resolved at the local level, is for property owners to appeal their valuation to the County .Board of Equalization. Anyone who is still not satisfied would have the option of filing a petition with the State tax court or filing for an abatement. He explained that property sales from the period of October 1, 1990 to September 30, 1991, were analyzed and considered in making the 1992 assessment. He pointed out that the 1992 estimated market value for the City of Lakeville increased 9.5% over 1991. Mr. Bill Peterson, Assessing Services Manager, explained that their staff did a physical re-evaluation of property in the City last year for the 1992 assessment. He then opened the meeting to .general questions and comments from the audience. A resident asked about the market on residential property in the City of Lakeville, and Mr. Peterson. stated the market showed very little change from the previous year and appears to be relatively stable. He explained that they are required to place a market value on property, and they base that • value on what is happening in the market through the analysis of sales. A resident asked if the assessors took Lakeville's growth moratorium into consideration. Mr. Peterson stated they have not seen an impact on market values, at this point in time, due to the moratorium. A resident asked at what percent of the true market the assessor determines the valuation. Mr. Peterson explained that the law requires them to be at 100% of the market value. However, the Department of Revenue' conducts its own sales ratio studies, and they require the assessors to maintain a level of assessment between 90 and 105% of market value. The median .level of assessment for residential property in the City of Lakeville is at about 92.5 percent of the market. Mr. Erickson stated residents commonly ask why their property taxes increase, .while valuations remain the same. Mr. Peterson. explained that the legislature eliminated the three-year plat law last year, which was designed to protect the developers. The legislature also eliminated the classification percentage on vacant land. Councihnember Harvey further explained .that two of the major taxing jurisdictions, (County and School Districts), also had an effect on property taxes. _i CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 9,1992 PAGE 3 Ms. Diane Gossard asked about residential property being re-appraised at the commercial rate. Mr. Peterson explained that they evaluate the property based on the highest and best use of the property. Mr. Erickson stated the City Council will table official action at this meeting to allow all property owners to meet with the assessor's staff. The Board of Review will reconvene on a future date after the County completes its review and recommendation for each property in question. Any .property owners who are not satisfied with their valuation after meeting with the assessor's staff will be heard by the City Board.. of Review at the reconvened meeting. Mayor Zaun recessed the meeting at 7:35 ~.m. to allow the property owners present to meet individually with the assessor s staff. Mayor Zaun reconvened the meeting at 8:30 p.m. Mr. Pulju stated his staff met with 33 property owners and will conduct further reviews on .eight of those properties. Mr. Pulju stated he would provide a printout of all property appeals for the Council .prior to their continued Board of Review meeting. . ITEM 6 92.79 Motion was made by Sindt, seconded by Harvey to receive letters from property owners appealing their 1992 market values, and refer them to the County Assessor's Office. {Letters from 12 property owners are on file in the .City Clerk's office.) Roll call was taken on the motion. Ayes, Ruhmann, Zaun, Sindt, Mulvihill, Harvey. 92.80 Motion was made by Harvey, seconded by Mulvihill continue the Board of Review meeting on Wednesday, April 29th, at 7:00 p.m. Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Ruhmann, Zaun, Sindt. ITEM 7 92.81 Motion was made by Harvey, seconded by Sindt to approve Resolution No. 92-55 approving a raffle and pull-tab license for the Burnsville Chamber of Commerce for an event at Brackett's Crossing on June 29,1992. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey, Ruhmann. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRII. 9,1992 PAGE 4 ITEM 8 92.82 Motion was made by Mulvihill, seconded by Sindt to approve Resolution No. 92-56 approving a raffle license for the Lakeville Men's Softball Association for an event at Aronson Park on June 12,.1992. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann, Zaun. There being no unfinished or new business, Mayor Zaun adjourned the meeting at 8:45 p.m. Respectfully submitted, Charlene Fried es, Ci Cl~ g tY • Du ne Zaun, Ma o LAKEVILLE BOARD OF REVIEW LETTERS OF APPEAL APRIL 9,1992 Cheney/Worledge Partnership (Southfork), I.D. #22-71200-011-01 Loren Hoppe, 17886 Kenwood Trail, Lakeville, MN 55044 Shiely Masonry Products, 11963 West 205th Street, 7 parcels Dr. James H. Conner, 7446 Upper 164th Street W., LD. #22-21170-060-04 Gerald R. Opp, 16997 Glenwood Avenue, Lakeville, MN 55044 John DeBates, 6 parcels RCD Real Estate Partnership, LD. #22-03400-010-51 and #22-03400-020-51 Two Thirteen Fifty Cedar Avenue South Partnership, LD. #22-77001-011-01 James W. Berhow, 17073 Franchise Way, Farmington, MN 55024 The Toro Company, LD. #22-77001-011-01 and #22-77001-012-01 Dennis and Michelle Chick, 11160 W. 164th Street, Lakeville, NIN 55044 Lakeville Land ,Ltd.. % CRI, Inc. (William O. Cooley), 12 parcels