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HomeMy WebLinkAbout04-08-91 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 8, 1991 The meeting was called to order at 7:00 p.m. by Acting Mayor Sindt. Roll call was taken. Present: Councilmembers Ruhmann, Sindt, Mulvihill and Harvey. Absent: Mayor Zaun. Also present: B. Erickson, City Administrator; D. Feller, Finance Director. ITEM 2 Mr. Erickson .provided a property tax overview, explaining that the purpose of the Board of Review meeting is to deal with the market values of property. The residents in attendance would have an opportunity to .meet with the appraisal staff from the Dakota County Assessor's Office to discuss the market value placed on their property for taxes payable 1992. He explained that the responsibility of the Board of Review is to determine whether the taxable property in the City has been properly valued by the assessor.. He further explained that some residents. may be eligible for a property tax refund from the State of Minnesota i.f their taxes have increased by more than ten percent. Some property owners may also be eligible for a refund if their .annual income is less than $35,000. per year, the amount of that refund being based on annual income. Mr. Fe]1er provided an explanation/interpretation of the .property tax statement that each property owner receives from the County. He then provided a pie chart showing how .property taxes in the City of Lakeville are allocated to the various .taxing jurisdictions. The 2991 property tax chart showed .57.4% going to School District 194, 21.4 % to Dakota County and 18.8% to the City of Lakeville. Marvin Pulju, Dakota County Assessor, and Bill Peterson, Assessing Services Manager for the Assessor's Office, provided an overview of the valuation procedures and process. They explained that all land values were re-evaluated for 1991, as well as commercial/industrial structures and apartments. Townhomes were valued using. the CAMA (computerized mass appraisal) system, and all new construction as of January 2, .1991, that is either complete. or partially complete has been evaluated. Mr. Pulju explained that Open Book. Meetings were held. in March to give property owners an opportunity to review their 1991 evaluations with the appraisers. Two .hundred forty-four residents from Lakeville. attended these .meetings. If, after meeting individually with an appraiser, a resident feels his/her issues have .not been resolved, he/she has the CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 8, 1991 PAGE. 2 • opportunity to appeal the assessment to the local Board of Review. Property owners have the: opportunity to further appeal their assessment to the County Board of .Equalization, and .then, if still not satisfied, may file a petition .with the State Tax Court. Mr. Peterson explained that State law requires sales taking .place between October 1, 1989. and September 30, 1990 be considered and used as the basis for the 1991 assessment. He .further stated that the assessed value arrived at by the County Assessor must, by law, be somewhere between 90% and 100 of market value. The County's ultimate goal is to achieve market value (what the property could be sold for on the open market). The Assessors are also responsible for proper classification of the property. ITEM 4 General questions from property. owners: A resident asked about the State's requirement to maintain 100 of market value. Mr. Peterson explained that prior to 1987, the assessor was only required to maintain a median • level of assessment of 85% of market value. A resident asked why some residents received a revised valuation notice. Mr. Peterson explained that large tracts of land took longer to complete the valuation process, and revised notices were sent after final completion. A resident asked what information the County uses to base its evaluations on. Mr. Peterson explained that all property sold in the City between October of 1989 and September of 1990 is .considered when determining the 1991 assessment. Any characteristic of the property that would have an impact on the market .value. is considered. The fluctuation of values from .year to year depends on the real estate market.. Mr. Peterson explained that the County is in the process of physically inspecting all residential property to confirm the accuracy of the County Assessor's records. This data is entered into the CAMA system. A resident voiced concerns and frustrations regarding the valuation and classification of her property. Mr. Erickson explained that before the City Council adjourns as the Board of Review, all appeals wiJ1 be considered. He .urged .residents. to see the. process through and contact City officials if they don't agree with the final results of their • appraisal. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 8, 1991 PAGE 3 • r ain ble A resident asked if valuations are going to em sta , and Mr. Peterson explained that it will depend on what happens in the real estate market. A resident asked who, other than the assessor, knows .the assessment formula. Mr. Peterson explained that the County follows standard appraisal procedures set by the State and is required to deal with properties on a mass appraisal basis. A resident asked if values are still expected to change if all factors remain stable. Mr. Peterson explained that values should remain relatively close to where they are now, with the exception of a slight fluctuation with the re-calculation of market values. A resident asked if the market value of agricultural land is based on total acreage alone. Mr. Peterson explained that in addition to total acreage, physical characteristics of the property are also. considered when determining market value. A resident stated she approves. of the valuation process, but does not approve of the taxes against her property as a result of the market value. Mr. Peterson explained .that the Assessor cannot control spending by the jurisdictions which determine property taxes, i.e. City, County and School District. Councilmember Mulvihill explained that some of the characteristics of a ..home that are put into the computer system, which generates market value, include type of home, year built, number of bedrooms and baths, type of heat, air conditioning and several other characteristics. Councilmember Harvey pointed out that the bulk of the tax payers' dollars is going to School District 194 (57~) to pay for new school buildings, which the residents of that school .district approved in a recent bond referendum. The Council recessed the Board of Review meeting to allow residents to discuss individual appeals with the Dakota County Assessor°s personnel. Time: 8:00 p.m. Mayor Zaun arrived at the meeting. Time: 9:15 p.m. Mayor Zaun reconvened the Board of Review meeting at 10:10 p.m. 91.62. Motion was made by Sindt, seconded by Harvey to continue the Board of Review meeting to Wednesday, April 24th, at 7:00 • p.m. • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING APRIL 8, 1991 PAGE 4 Councilmember Harvey asked the Assessor's Office to make every effort to complete reviews with individual residents prior to April 24th so residents can appeal to the Board of Review at that time if they so choose. Mr. Pulju explained that a resident's attendance at tona.ght's meeting (assuming they signed the County's registration form) serves the same purpose as a written .letter of appeal and preserves their right. to further appeal. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey, Ruhmann. 91.63 Motion was made by Harvey, seconded by Mulvihill to receive letters of appeal from residents, the list of attendees from the Open Book .Meetings and the attendance log from. tonight's Board of Review .Meeting, (letters and lists on file in the City Clerk's office). Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann, Zaun. There being no other business, Mayor Zaun adjourned the meeting at 10:15 p.m. Respectfully submitted, Dennis Feller, Finance Director Du ne Zaun, or •