12-01-08 Council-TNT Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 1, 2008 Ramsey County only 182 or 7% of homes in Little Canada will see a total property tax increase of $300 and over. The Director noted that commercial/indushial properties with a 3% valuation increase will see an increase of approximately 8% in their total property taxes. With regard to the future, the Director expected that there may be impacts from a State Budget deficit, Local Government Aid reforms, the economy and resulting foreclosures, and increasing energy prices. The Director concluded the Truth In Taxation presentation, and indicated that the proposed 2009 Budget will be adopted at a budget hearing scheduled for Monday, December 22, 2008, at 7:30 p.m. at the Little Canada City Center. Katherine Henry appeared before the Council and reported that she owns a one-bedroom condominium less than 800 square feet in size. Henry reported that her valuation has increased from $98,700 in 2008 to $1 11,100 for 2009 which will result in a 28.5% tax increase in 2009. Hemy indicated that similar condos in her area are selling for less than $111,100. The City Administrator indicated that the increase in valuation that Henry is seeing on her property is likely due to the phasing out of the Limited Market Value (LMV). The Administrator noted that Ramsey County sets property values, and indicated that the County is required to have valuations within 90% of sales ratio. The LMV will be totally phased out in 2009, and the $111,100 valuation on the Henry property is likely the full value without LMV. The Administrator noted falling property values in recent years and indicated that the County Assessor will be adjusting values downward to reflect the market. The Administrator suggested that Henry may see a decline in her property value for 2010 and beyond. He suggested that she contact the Ramsey County Assessor's office relative to her valuation and her options for appealing the increase. The Administrator informed the Council that he received an email today from a property owner concerned about the increase in valuation on a vacant lot that he owns. The Administrator indicated that the increasing property value for this lot is a result of the phasing out of the LMV. He noted that the estimated market value is remaining the same as the past two years. However, the taxable value due to limited market value has been phasing out causing the number to increase.