08-14-2013 Council Workshop Minutes

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MINUTES CITY COUNCIL AUGUST 14, 2013 McMENEMY IMPROVE- MENT PROJECT (SO. OF 36) It was noted that given the timing of receipt of City revenues (property tax collections and State aids), revenues do not track proportionately over the year. Blesener suggested the addition of some comments to the quarterly financial reports that highlight any issues such as the lag in revenue collections. Council agreed and felt the reports submitted were a good start. The Administrator welcomed any additional comments and suggestions as the financial reporting process continues. The City Administrator reviewed the City Engineer's report dated August 9, 2013 relative to the City of Maplewood's reconstruction project in the Arkwright - Sunrise area and the fact that Little Canada's portion of McMenemy Street is included in this project. The Administrator indicated the issue is that based on the City of Maplewood's assessment policy, Maplewood property assessments would range from $4,125 to $4,500 per lot, while using the Little Canada assessment policy, Little Canada property assessments would range from $4,893.75 to $8,156.25 per lot. The Administrator noted that the Little Canada lots are much larger than the Maplewood lots. The Administrator also indicated that Maplewood did an appraisal which indicates that the assessment of the Maplewood properties is supportable up to 7.5% of land value. The Administrator indicated that using information for the Little Canada property values, assessments are higher are in the range of this 7.5% figure. The Administrator pointed out that the City's assessment policy has been held up in court. As such, the City has not always obtained appraisals to support its assessment levels. The Administrator recommended that given this project, the difference in lot sizes, and the difference in assessment policies between the two cities, he was recommending appraisals be done. The Administrator was not sure of the cost, and indicated that he would do some research and come back with a recommendation. It was also noted that Little Canada has not held an Improvement Hearing for the project. The Administrator also noted that Little Canada does not have to participate in the Maplewood project, but was not sure of the impact to the project should that happen. It was the consensus of the Council that the City Administrator should obtain quotes for appraisals. Keis also indicated that the City should stay close to assessing at the levels provided for in its assessment policy. The Administrator agreed, and noted that if the appraisals indicate that the assessment under the City's policy is not supportable, then the City would have a basis for lowering the assessment. 4