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HomeMy WebLinkAbout04-22-13 Council Packet EXPANDED AGENDA CITY COUNCIL AGENDA Monday , April 22 , 201 3 *********** City Council Meeting 6:30 p.m. (Scheduled to be broadcast on Channel 16 ) City Council: Mayor Reinert , C ouncil Members O’Donnell , Roeser, Rafferty & Stoesz City Administrator: Jeff Karlson COU NCIL WORK SESSION, 5:30 P.M. Community Room (not televised) 1. Review Regular Agenda BOARD OF REVIEW, 6:00 P.M. Local Board of Appeal and Equalization Council Chambers Appeals heard as follows: - Gary Uhde, Century Farm North 4 th Addition, Outlot A Classif ication changed back to agricultural for one year - Pete Hitchcock, 355 Ash Street Valuation appeal continued to next Board meeting; staff will have more information - Paul Johnson, Pine Oaks (undeveloped land) To be considered at next Board meeting; staff w ill work with Mr. Johnson on possible land vacation Continuation of Board of Appeal to be scheduled (prior to Anoka County Board of Appeals in June) CITY COUNCIL MEETING, 6:30 P.M.  Call to Order – 6:30 p.m.  Roll Call - Council Members Stoesz, O’Donnell, Roeser & Rafferty, and Mayor Reinert were present  Pledge of Allegiance  Open Mike / Public Comment none  Setting the Agenda: Addition or deletion of agenda items The agenda was accepted as presented. Council Agenda -2- April 22, 2013 EXPANDED AGENDA 1. CONSENT AGENDA A) Consideration of Expenditures: i) April 22, 2013 (Check No. 95466 through 95545 ) in the amount of $633,106.44; ii) Centennial Fire District (Check No. 5749 through 5770) in the amount of $107,231.34 ); B) Consider approval of April 1 , 2013 Work Session Minutes C) Consider approval of April 8, 2013 Council Meeting Minutes Mayor Reinert absent D) Consider Resolution No. 13 -43 , Approving a Peddler’s License for Big Bell Ice Cream, Inc., Lisa Hogstad -Osterhues E) Consider Resolution No. 13-46 , Terminating Lease Agreement wit h Veritas Academy, Mary Divine F) Consider Resolution No. 13-47, Appointing Rick DeGardner to Twin Cities Gateway Board of Directors, Mary Divine Action Taken: Motion by Rafferty, seconded by Stoesz , to approve Co nsent Agenda Items 1A , 1B, 1E and 1F as presented, was adopted Action Taken: Motion by O’Donnell, seconded by Roeser, to approve Consent Agenda Item 1C as presented, was adopted (Mayor Reinert abstained from voting) 2. FINANCE DEPARTMENT No report 3. ADMINISTRATION DEPARTMENT No report 4. P UBLIC SAFETY DEPARTMENT No report 5. PUBLIC SERVICES DEPARTMENT No report 6. COMMUNITY DEVELOPMENT DEPARTMENT A) Public Hearing. Consider 1 st Reading of Ordinance No. 03-13, Vacating a Drainage and Utility Easement, The Village No. 4 , Katie Larse n Action Taken: Motion by O’Donnell, seconded by Roeser to approve the first reading of Ordinance No. 03-13 as presented, was adopted Council Agenda -3- April 22, 2013 EXPANDED AGENDA B) Consider Resolution No. 13-45 , Accepting Grant from Twin Cities Gateway for Blue Heron Days, Mary Divine Action Ta ken: Motion by Roeser, seconded by Stoesz to approve Resolution No. 13-45 as presented, was adopted C) Consider Resolution No. 13-44, Approving Amendments to Designated Municipal State Aid Street Routes , Jason Wedel Action Taken: Motion by Roeser, seco nded by Rafferty to approve Resolution No. 13-44 as presented, was adopted D) Consider Resolution No. 13-48, Approving Joint Powers Agreement with Cen terville, Mound Trail Water & Sanitary Sewer Service, Michael Grochala Action Taken: Motion by O’Donnel l, seconded by Roeser to approve Resolution No. 13-48 as presented, was adopted E) Consider Resolution No. 13-49, Approving Stormwater Maintenance Agreement with Rice Creek Watershed District for Otter Lake Road Extension Project, Jason Wedel Actio n Taken: Motion by Roeser, seconded by Rafferty to approve Resolution No. 13-49 as presented, was adopted 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Motion by Rafferty, seconded by Stoesz, to adjourn at 6:55 p.m. Following adjournm ent of the regular meeting, the council will reconvene to a closed session to discuss assessment mediation Community Calendar – A Look Ahead April 22 , 2013 through May 13, 2013 Wednesday, April 24 6:30 pm, Council Chambers Environmental Board Thursday, May 2 8:00 am, Community Room EDAC Monday, May 6 5:30 pm, Community Room Council Work Session Monday, May 6 6:30 pm, Council Chambers Park Board Wednesday, May 8 6:30 pm, Council Chambers Planning & Zoning Monday, May 13 6:30 pm, Council Chambers Cit y Council Meeting Anoka County City of Lino Lakes 1 2013 Local Board of Appeal and Equalization Agenda April 22 , 201 3 1. Call the Board of Review to Order 2. Roll Call 3. Read Official Notice of the Board of Review 4. Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for e ach local board but should include: Purpose of the meeting; Remind property owners that only appeals for the current year valuation or classification may be made. The 201 3 board is to review the assessment as of January 2, 201 3 , which will be used to comp ute the property taxes payable in 201 4 . Prior years’ assessments or taxes (including taxes payable in 201 3 ) are not within the jurisdiction of the board; The order of the appellants - by appointment first, followed by walk -ins on a first -come basis. The board will also receive written appeals from property owners. The secretary will record the required information (name, mailing address, telephone number, and address of property, etc.) The expectations of the appellant when presenting their appeal (i.e. the appeal must be substantiated by facts; where the appellant should stand or sit; the appellant should be prepared to answer questions posed by the board, etc.); Time limits imposed (if any); The procedure the board will follow for making decisions (Will the board hear all appeals before making any decisions? Will the board send a letter to appellants to inform them of the decision? Etc.) The Board may correct any erroneous valuation and add any omission of properties or increase of value after due proc ess. The total decrease of valuations may not exceed one percent of the total valuation of the taxing district; 5. The Board Chair should give the assessor the opportunity to present a brief overview of the property tax process and a recap of the current ass essment. 6. Appellants should then present their appeals to the board. If the assessor has had a chance to review the property prior to the meeting, the assessor can present facts and information either supporting the valuation and or classification, or reco mmend that the board make a change. If the assessor has not had a chance to review the property prior to the meeting, the board may ask the assessor to review the property and present his/her findings to the board at a reconvene meeting. 7. Recess or Close t he Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as specified in the notice of the clerk , u nless a longer period is approved by the Commissioner of Revenue . No action taken subsequent to such date shall be valid.) Anoka County City of Lino Lakes 2 Lino Lakes Assessment Staff Peggy Nordrum Residential Appraiser Dan Eischens Commercial Industrial Appraiser Jim Rouleau Apart ment Appraiser Mike Sutherland County Assessor 20 1 3 Assessment Calendar Jan 2 2013 Market Values for Property Established Feb 1 Final Day to Deliver Assessment Records to County by Local Assessors Feb 1 Final Day to File for an Exemption from Taxation Mar 1 Final Day to File for 1B with County Assessor Mar 22 2013 Valuation Notices Mailed Apr - May Local Boards of Appeal and Equalization and Open Book Meetings Apr 30 Final Day to File a Tax Court Petition for 2012 (payable 2013) Assessment May 1 Final Day to File an Application for Green Acres May 15 First Half of Payable 2013 Real Estate Tax is Due May 29 Final Day to Apply for Manufactured Home Homestead Jun 14 State Board of Equalization Jun 17 County Board of Appeal and Equalization Jun 28 2013 Assessment Finalized (After CBAE Adjourns) Jul 1 Ownership Deadline for Tax Exempt Status Aug 15 Final Day to File for 2013 Property Tax Refund Aug 31 First Half of Payable 2013 Manufactured Home Tax is Due Sep 1 2013 Abstract Due to Department of Revenue Oct 15 2nd Half of Payable 2013 Tax is Due* Nov 15 2nd Half of Payable 2013 Tax is Due on Ag and Manufactured Home Parcels* Dec 15 Final Day to Apply for Real Estate Homestead *2nd Half Tax due on October 15th for all property types except for Agrucultural and Manufactured Home, those are due on November 15th. Anoka County City of Lino Lakes 3 Understanding Assessment and Tax Calculation Assessment Process Timeline In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of the assessment date of January 2 nd . Each year's assessment is based on arms -length transactions (sales that meet the criteria of an open market transaction, see market value definition below ) that occurred the previous October thru September . When the assessment is complete the local taxing jurisdictions begin their budgeting process for the following year . They us e the total assessment to determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of th e assessment, including but not limi ted to the assessment date, sales period for each assessment and property tax classification are dictated by state statute and under the oversight of the Minnesota Department of Revenue. Market Value Defined As in pri vate appraisal, Market Value is defined as: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: buyer and seller are typically motivated: both parties are well informed or well advised, and acting in what they consider their own best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable th ereto; the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale (a foreclosure sale or a short sale [a sale to avoid foreclosure] is not considered an arms - length transaction). Mass Appraisal Defined Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass appraisal is the practice of determining individual values based on statistical analysis of a g roup of sales for a large area. The values are determined as of a specific date and are based on arms -length transactions that occurred during a specified sales period. Anoka County City of Lino Lakes 4 As part of this mass appraisal process, all properties are re -valued annually based on the information on record. Properties are physically inspected and property records reviewed once every 5 years (as statutorily required). This is an ongoing process whereby 20% of a city is inspected each year so that in a cycle of 5 years all proper ties have been inspected at least once. In addition to this quintile review, properties are also inspected when there is a building permit issued or at the request of the property owner. The sale of a property does not initiate a reassessment. As stated earlier, Minnesota state law governs the assessment date, which is January 2nd of each year, as well as the sales periods associated with each assessment date. The 20 1 2 assessment which was used for tax calculations this year (20 1 3 ) was based on transact ions that closed between October 1, 20 10 and September 30, 20 1 1 . Property owners were notified of their 20 1 2 value on their Notice of Valuation and Classification (also referred to as a valuation notice ). The notices were mailed out in March of 20 1 2 in t he same envelope as the 20 1 2 tax statement. The appeals process took place at the municipal level during the month of April of 201 2 and at the county level in June of 201 2 . At this point, if a property owner wishes to appeal their 20 1 2 assessment (for ta xes payable 20 1 3 ) their only option is to file a tax court petition. This must be done no later than April 30, 20 1 3 . The 20 1 3 assessment has just been completed and the valuation notices w ere mailed the week of March 22nd . This is the assessment that will be used for tax calculations next year for taxes payable in 201 4 . The sales period associated with this assessment is October 1, 20 1 1 thru September 30, 20 1 2 . As with past assessments, the local appeals process will begin in April and finish up in J une. The options and requirements to appeal this assessment are listed on the back of the valuation notice . If a property owner has an issue with their 20 1 3 assessment , the first thing they should do is contact their local assessor. The phone numbers ar e listed on their notice of valuation . In conclusion, a ll arms -length sales that closed between October 1, 20 1 1 and September 30, 20 1 2 have b e e n used to determine valuatio ns for the 20 1 3 assessment, for tax es payable in 201 4 . And by the time you are payi ng your 1 st half real estate tax on May 15 of , 201 4 , the sales that were used to determine the estimated market value on which your taxes are based occurred somewhere be tween 19 to 31 months earlier. The following chart may be helpful in following the tim eline of your assessment. SALES PERIOD ASSESSMENT DATE TAX YEAR October 1, 2010 to January 2, 2012 2013 September 30, 2011 October 1, 2011 to January 2, 2013 2014 September 30, 2012 October 1, 2012 to January 2, 2014 2015 September 30, 2013 Anoka County City of Lino Lakes 5 We are aware that due to the time frames we are required to work within it sometimes appears as though the assessor’s estimated market value does not represent the market. It seems lower than i t should be during times of infl ation and higher than it should be in times of deflation. The following chart illustrates the relationship between assessed values and actual sale prices ; and how the assessor’s market values have been following the changes as they occur in the open marke t. Note: The Median Assessor’s Estimated Market Value represents the homes that are in the sales study. As you can see, there is a point in time where the relationship between the assessor’s values and the sales prices intersect. It is at that point in time that the market took a large downward turn . T he following year, in response to that market condition, the assessor’s values were reduced to reflect that trend. And we have responded by adjusting assessed values each year based on the prior year t rends . It’s interesting to note the upward shift for the 2012 assessment . It is somewhat deceiving in that the trend in sales prices was actually down, but due to the segment of the market with the most arm’s -length transactions , the median sale price di d go up for that year. One last important point to make note of is that the assessment process is complete d before the budgeting process begins. Assessors do not adjust values in order to increase revenue. There is little correlation between changes in assessments due to market changes and how the resu lting real estate tax changes. When we adjust assessments due to market conditions , all properties are adjusted. The only time that an adjustment in an assessor’s estimated market value will have an impac t on the increase or decrease in tax is if the change in value is due to value added for new construction or value removed due to demolition/destruction of an improvement. $165,000 $170,000 $175,000 $180,000 $185,000 $190,000 $195,000 $200,000 $205,000 $210,000 $215,000 $220,000 $225,000 $230,000 $235,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 T ax Payable Year  Median Assessed Value as it Relates to Median Sale Price Median Sale Price Median Assessor's Estimated Market Value Anoka County City of Lino Lakes 6 How your tax amount changes from year to year is influenced more by statutory cha nges to the tax structure , and revenues needed by your local taxing authorities (including school districts). If we were to reduce all values by 50%, the resulting tax amounts would not be decrease d by 50%; the tax rates would be increased to generate the same amount of tax revenue. The following example illustrates that basic concept. Adhering to the same timeframes and working within the parameters of the law ensure s that everyone is being treated fairly. If assessors were to choose t o work outside of those timeframes , the end result would be inequity between taxing jurisdictions. Here is an example of the impact at the local level: The assessment sales period for Anoka County is October 1, 20 1 1 through September 30, 20 1 2 , except for Lino Lakes , where the assessor decided to use January 1, 20 1 2 to December 31, 20 1 2 . G iven the upward trend in market that began late in 2012, the 201 3 Lino Lakes assessments c ould conceivably be measurably higher than the rest of the county assessment s . That in turn would not change the amount of county revenue generated by real estate tax . However, it would result in a shift in the tax burden, with Lino Lakes property owner s paying more than their fair share than the rest of the County. So in conclusion , while it may seem arbitrary to have a set period to measure an assessment, it does create an environment whereby the assessments are uniform , fair , and equitable . Property EMV Property EMV Overall Change In EMV A $375,000 A $187,500 -$187,500 B $120,000 B $60,000 -$60,000 C $150,000 C $75,000 -$75,000 D $400,000 D $200,000 -$200,000 E $250,000 E $125,000 -$125,000 Total Tax Base $1,295,000 Total Tax Base $647,500 -$647,500 Revenue Needed $10,000 Revenue Needed $10,000 Divided by Total Tax Base $1,295,000 Divided by Total Tax Base $647,500 Equals Tax Rate 0.0077 Equals Tax Rate 0.0154 Property Tax Amount Property Tax Amount Overall Change In Tax Amount A $2,896 A $2,896 $0 B $927 B $927 $0 C $1,158 C $1,158 $0 D $3,089 D $3,089 $0 E $1,931 E $1,931 $0 Total Tax Generated $10,000 Total Tax Generated $10,000 $0 Resulting 2013 Tax Calculations Resulting 2014 Tax Calculations 2012 Assessment 2013Assessment Tax Payable 2011 Tax Payable 2012 2013 Tax Rate Calculation 2014 Tax Rate Calculation INDIVIDUAL TAX AMOUNTS REMAIN UNCHANGED A REDUCED TOTAL TAX BASE REQUIRES A HIGHER TAX RATE TO GENERATE THE SAME REVENUE DECLINING VALUES REDUCE THE TOTAL TAX BASE Anoka County City of Lino Lakes 7 Understanding Recent Changes to Homestead Benefits The following explanation of the recen t changes to homestead benefits is taken from the Minnesota Department of Revenue website: http://www.revenue.state.mn.us/propertytax/Documents/hmve -taxpayers.pdf Anoka County City of Lino Lakes 8 U nderstanding Recent Changes to Homestead Benefits continued. Anoka County City of Lino Lakes 9 20 1 3 Assessment Statistics With development slowing down, the complexion of the city h as remained constant in recent years. As of January 2, 201 3 there were 7,867 parcels in the City. This total includes: 6,685 R esid ential P arcels 633 Tax Exempt Parcels 203 Agricultural P arcels 197 Commercial Industrial Parcels 95 Manufactured Home Parcel 37 Tax Forfeit P arcels 7 Personal Property Parcels 6 Utility Parcels 4 Apartment Parcels Residential 84.97% Tax Exempt & Tax Forfeit 8.52% Commercial Industrial 2.50% Agricultural 2.60% Manufactured Home 1.20% Apartment 0.05% Utility & Personal Property 0.16% Distribution of Parcel Count by Property Type Anoka County City of Lino Lakes 10 Reassessment State Statute reads: "All real property subject to taxation shall be listed and reassessed every year with reference to its value on January 2nd preceding the assessment ." This has been done, and the owners of property in Lino Lakes h ave been notified of any value change. Minnesota Statute 273.11 reads: "All property shall be valued at its market value ." It further states that "In estimating and determining such value, the Assessor shall not adopt a lower or different standard of va lue because the same is to serve as a basis for taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at auction or at a forced sale, or in the aggregate with all the property in the town or district; b ut the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money." The Statute says all property shall be valued at market value, not may be valued at mar ket value. This means that no factors other than market factors should affect the Assessor's value and the subsequent action by the Board of Appeal and Equalization. Anoka County City of Lino Lakes 11 In accordance with c urrent state law we physically review all properties at least once every five years. Each year w e also inspect all properties with new construction , and at the property owners’ request . During 20 1 2 there were 1 ,482 properties reviewed. Included in that number are 3 new homes. This map illustrates the 20 1 2 (201 3 assess ment) residential review area and the projected residential review area for 20 1 3 (201 4 assessment ). Anoka County City of Lino Lakes 12 Authority of the Local Board of Appeal and Equalization Assessments of property are made to provide the means for the measuring of the relative share of ea ch taxpayer in meeting the costs of local government. It is the duty of the Assessor to assess all real and personal property except that which is exempt or taxable under some special method of taxation. If the burden of local government is to be fairly and justly shared among the owners of all property of value, it is necessary that all taxable property be listed on the tax rolls and that all assessments be made accurately. Whenever any property that should be assessed is omitted from the tax rolls, an unfair burden falls upon the owners of all property that has been assessed. If any property is undervalued in relation to the other property on the assessment record, the owners of the other property are called upon automatically to assume part of the tax burden that should be borne by the undervalued property. Fairness and justice in property taxation demands both completeness and equality in assessment. Minnesota Statutes Section 274.01 provides that the council of each city shall be or appoint a Board of Appeal and Equalization . The charter of certain cities provides for the establishment of a Board of Equalization. The provisions of Section 274.01 and this regulation apply to all Boards of Appeal or Boards of Equalization. The 2003 Legislature enac ted State Statute 274.014 which requires that there be at least one member at each meeting of a Local Board of Appeal and Equalization who has attended an appeals and equalization course developed or approved by the Commissioner of Revenue within the last four years. Section 274.01 states the county assessor shall fix a date for each Board of Appeal and Equalization to meet for the purpose of reviewing the assessment of property in its respective town or city. The county assessor is required to serve writ ten notice to the clerk of each of such bodies on or before February 15th of each year. These meetings are required to be held between April 1st and May 31st; and the clerk of the Board of Appeal and Equalization is required to give published and posted n otice at least ten days before the date set for the first meeting. The Board of Appeal and Equalization of any city, unless a longer period is approved by the Commissioner of Revenue , must complete its work and adjourn within twenty days from the time of convening specified in the notice of the clerk. No action taken subsequent to such date shall be valid . A request for additional time in order to complete the work of the Board of Appeal and Equalization must be addressed to the Commissioner of Revenue i n writing. The Commissioner's approval is necessary to legalize any procedure subsequent to the expiration of the twenty -day period. The Commissioner of Revenue will not, however, extend the time for local Boards of Appeal and Equalization to meet beyond the time when the County Board of Equalization meets, which is the Final two weeks of June. The authority of the local Board extends over the individual assessments of real and personal property. The Board does not have the power to increase or decrease by percentage all of the assessments in the district of a given class of property. Changes in aggregate assessments by classes are made by the County Board of Equalization. Anoka County City of Lino Lakes 13 Although the Local Board of Appeal and Equalization has the authority to increas e or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment made by the Assessor by more than one percent of said aggregate assessment. If the total of such adjustments does lower the aggregate assessment mad e by the Assessor by more than one percent, none of the adjustments will be allowed. This limitation does not apply, however, to the correction of clerical errors or to the removal of duplicate assessments. The Local Board of Appeal and Equalization does not have the authority in any year to reopen former assessments on which taxes are due and payable. The Board considers only the assessments that are in process in the current year. Adjustment can be made only by the process of abatement or by legal act ion. In reviewing the individual assessments, the Board may find instances of undervaluation . Before the Board can raise the market value of property it must notify the owner. The law does not prescribe any particular form of notice except that the pers on whose property is to be increased in value must be notified of the intent of the Board to make the increase. The Local Board of Appeal and Equalization meetings assure a property owner an opportunity to contest any other matter relating to the taxabili ty of their property. The Board is required to review the matter and make any corrections that it deems just. When a Local Board of Appeal and Equalization convenes, it is necessary that a majority of the members be in attendance in order that any valid action may be taken. The local assessor is required by law to be present with her/his assessment books and papers. She/he is required also to take part in the proceedings but has no vote. In addition to the local assessor, the county assessor or one of her/his assistants is required to attend. The Board should proceed immediately to review the assessments of property. The Board should ask the local assessor and county assessor to present any tables that have been prepared, making comparisons of the cur rent assessments in the district. The county assessor is required to have maps and tables relating particularly to land values for the guidance of Boards of Appeal and Equalization. Comparisons should be presented of assessments of types of property with previous years and with other assessment districts in the same county. It is the primary duty of each Board of Appeal and Equalization to examine the assessment record to see that all taxable property in the assessment district has been properly placed u pon the list and valued by the assessor. In case any property, either real or personal, has been omitted; the Board has the duty of making the assessment. The complaints and objections of persons who feel aggrieved with any assessments for the current ye ar should be considered very carefully by the Board. Such assessments must be reviewed in detail and the Board has the authority to make corrections it deems to be just. The Board may recess from day to day until all cases have been heard. If complaints are received after the adjournment of the Board of Appeal and Equalization they must be handled at the staff level; as a property owner cannot appear before a higher board unless he or she has first appeared at the lower board levels . Pursuant to Minneso ta Statute 274.01: The Board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the p roperty and the interior of any buildings or structures. Anoka County City of Lino Lakes 14 A non -resident may file written objections to his/her assessment with the county assessor prior to the meeting of the Board of Appeal and Equalization. Such objections must be presented to the Boar d for consideration while it is in session. Before adjourning, the Board of Appeal and Equalization should cause the record of the official proceedings to be prepared. The law requires that the proceedings be listed on a separate form which is appended t o the assessment book. The assessments of omitted property must be listed in detail and all assessments that have been increased or decreased should be shown as prescribed in the form. After the proceedings have been completed, the record should be signe d and dated by the members of the Board of Appeal and Equalization. It is the duty of the county assessor to enter changes by Boards of Appeal and Equalization in the assessment book of each district. The Local Board of Appeal and Equalization has the op portunity of making a great contribution to the equality of all assessments of property in a district. No other agency in the assessment process has the knowledge of the property within a district that is possessed jointly by the individual members of a B oard of Appeal and Equalization. The County or State Board of Equalization cannot give the detailed attention to individual assessments that is possible in the session of the Local Board. The faithful performance of duty by the Local Board of Appeal and Equalization will make a direct contribution to the attainment of equality in meeting the costs of providing the essential services of local government. Market Value Statistic s After thorough studies of the sales in the market place are conducted, we esta blish the assessed value of all real property. During the 20 1 2 study period for the 201 3 assessment , we recorded 6,218 sales countywide of all property types . O f these sales , only 2,266 were considered "arms - length" transactions . The remaining 3,952 sal es not considered arms -length would include foreclosure sales, bank sales, sales involving government entities and sales between related parties. During the 2011 Sales Perio d the total number of transactions rose by 1,043 , or 20%. The number of non -arms -length transactions (mostly foreclosure sales) rose only 298 , or 8%. We believe that this is reflective of the recovery that we’ve been hearing about in the media. Later in the report you will see s ales analysis information for this city and for the ent ire county. This information will relate to improved residential properties only and will not include vacant land sales or sales for commercial, industrial or apartment properties. In accordance with the results of these sales studies, certain areas of th e city and certain styles and grades of homes m ay have adjusted values either lower or higher than the previous year's value. Th e new values reflect market trends during the period of October 20 1 1 thru September 20 1 2 . Anoka County City of Lino Lakes 15 The 20 1 3 assessment that is up for your review has a total unaudited assessed value of $1,607,814,700 , excluding exempt, forfeit, utility, manufactured homes and personal property. It reflects an overall value de crease of 0.7 % below the 20 1 2 assessment. The pattern of growth and decline (i ncluding new construction) in the City's total value over the past 10 years can be seen in the following list and chart : Growth and Decline in Property Values 2004 to 20 1 3 (Total does not include manufactured homes, personal property, utilities, exempt or tax forfeit property values.) Residential includes all property classified Residentia l, Agricultural and Apartment. Commercial Industrial includes all property classified Commercial, Industrial and Manufactured Home Park. Residential Commercial Industrial Total Percent Year Property Property Estimated of Value Value Market Value Change 2013 $1,478,809,900 $129,004,800 $1,607,814,700 -0.7% 2012 $1,480,988,700 $137,442,300 $1,618,431,000 -6.9% 2011 $1,583,277,300 $155,488,900 $1,738,766,200 -5.0% 2010 $1,651,198,900 $179,463,200 $1,830,662,100 -8.9% 2009 $1,816,215,700 $193,442,000 $2,009,657,700 -5.9% 2008 $1,929,960,400 $204,597,800 $2,134,558,200 3.7% 2007 $1,873,327,500 $185,403,200 $2,058,730,700 4.6% 2006 $1,800,319,200 $167,297,500 $1,967,616,700 5.5% 2005 $1,715,519,200 $149,418,900 $1,864,938,100 13.9% 2004 $1,513,665,700 $123,115,600 $1,636,781,300 NA $0 $250,000,000 $500,000,000 $750,000,000 $1,000,000,000 $1,250,000,000 $1,500,000,000 $1,750,000,000 $2,000,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Citywide Residential Assessed Value Citywide Commercial Industrial Assessed Value Anoka County City of Lino Lakes 16 Market Value Effect of New Improvements The next example is a more detailed breakdown of changes for the 20 1 3 assessm ent as compared to the 20 1 2 assessment . The chart first shows the change in value and percentage of change when not including value added for new improvements ; it then shows the change in value including new improvement values. As you can see, the overall decrease in value before adjusting for new construction is 1 .3 %. W hen new construction was accounted for , the over all decrease changed to 0 .7 %. Residential in cludes all property classified Residential, Agricultural and Apartment. Commercial Industrial includes all property classified Commercial, Industrial and Manufactured Home Park. 2013 Percent of 2013 Percent of 2012 Estimated Change Estimated Change Total Market Value 2012 to 2013 2013 Market Value 2012 to 2013 Estimated Not Including Not Including New Including Including Property Market New Improvement New Improvement Improvement New Improvement New Improvement Type Value Value Value Value Value Value Residential $1,480,988,700 $1,469,203,500 -0.8%$9,606,400 $1,478,809,900 -0.1% Commercial Industrial $137,442,300 $128,477,700 -6.5%$527,100 $129,004,800 -6.1% Total $1,618,431,000 $1,597,681,200 -1.3%$10,133,500 $1,607,814,700 -0.7% Anoka County City of Lino Lakes 17 Market Value Distribution by Property Type The chart s below illustrat e the relative distribution of estimated market value between residential (8 0 .6 2 %), commercial and Industrial (7 .3 4 %), agricultural /apartment /m a n u f a c t u r e d h o m e (3 .6 3 %), and e x e m p t /p e r s o n a l p r o p e r t y /t a x f o r f e i t /u t i l i t y (8 .4 1 %). The value distribution between property types within the city ha s remained relati vely the same for a few years now. Estimated Percent of Property Type Market Total Estimated Value Market Value Residential $1,417,040,600 80.62% Commercial Industrial $129,004,800 7.34% Agricultural, Apartment, Manufactured Home $63,759,500 3.63% Exempt, Personal Property, Tax Forfeit, Utility $147,888,500 8.41% Total Estimated Market Value $1,757,693,400 100.00% Residential 80.62% Commercial Industrial 7.34% Agricultural, Apartment, Manufactured Home 3.63% Exempt, Personal Property, Tax Forfeit, Utility 8.41% Estimated Market Value Distribution by Property Type Anoka County City of Lino Lakes 18 Residential Appraisal System Per State Statute, each property must be physically inspected and individually appraised once every five years. For this individual appraisal, or in the event of an assessed value appe al, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 1. First, an appraiser inspects each property to verify data. If we are unable to view the interior of a home on the first visit, a tag is left requesting a return telephone call from the owner to schedule this inspection. Interior inspections are necessary to confirm our data on the plans and specifications of new homes and to determine depreciation factors in older homes. 2. To calcu late the estimated market value from the property data we use a Computer Assisted Mass Appraisal (CAMA) system based on a reconstruction less depreciation method of appraisal. The cost variables and land schedules are developed through an analysis of stra tified sales within the city. This method uses the "Principle of Substitution" and calculates what a buyer would have to pay to replace each home today less age dependent depreciation. 3. A comparative market analysis is used to verify these estimates. Th e properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market an alysis is to make sure that you are comparing "apples with apples". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify asse ssed value or to adjust it if necessary. The following pages contain an example of the appraisal information for one property. They include data calculations, plan sketch, photo, comparative analysis, and photos and a map of comparable properties. Anoka County City of Lino Lakes 19 Sal es Studies According to State Law, it is the assessor's job to appraise all real property at market value for property tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. A sales ratio is obtained by comparing the assessor's market value to the adjusted sales price of each property sold in an arms -length transaction within a fixed period. An "arms - length" transaction is one that is generated after a property has had sufficient time on the open market, between both an informed buyer and seller with no undue pre ssure on either party. The median or mid -point ratios are calculated and stratified by property classification. The only perfect assessment would have a 100% ratio for every sale. This is of course, impossible. Because we are not able to predict major events that may cause significant shifts in the market, the state allows a 15% margin of error. The Department of Revenue adjusts the median ratio by the percentage of growth from the previous year's abstract value of the same class of property w ithin the same jurisdiction. This adjusted median ratio must fall between 90% and 105%. Any deviation will warrant a state mandated jurisdiction -w ide adjustment of at least 5%. In Anoka County, we have the ability to stratify the ratios by style, age, q uality of construction, size, land zone and value. This assists us in appraising all of our properties closer to our goal ratio. Sales Statistics Defined We have the ability by using statistical analysis to test the accuracy of the assessment. We use th ese statistics to ensure equity between properties at the neighborhood, municipal and county levels. The Minnesota Department of Revenue also uses these same techniques to test for equity between counties. The primary statistics used are: Median Ratio: This is a measure of central tendency that is the midpoint of a group of sales ratios when arrayed from low to high. The median is a useful statistic as it is not affected by extreme ratios. Aggregate Ratio : This is the total market value of all sale pr operties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 100% Anoka County City of Lino Lakes 20 95% to give us a margin to account for a fluctuating mark et and still maintain ratios within state mandated guidelines. Also referred to as the Weighted Mean . Mean Ratio : The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median rat io. The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD): This statistic measures the equality betwee n the assessment of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite . A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Current Sales Study Statistics The following statistics are based upon ratios calculated using 20 1 3 pay 20 1 4 market values and October 20 1 1 thru Septemb er 20 1 2 sales. These are the ratios that our office uses for c ountywide equalization , checking assessment accuracy, and predicting trends in the market. 20 1 3 Anoka County Residential Sales Ratio Statistics Median Ratio 94.5 Aggregate Ratio 94.2 Mean Ratio 96.0 Coefficient of Dispersion on Median 7.7 Price Related Differential 10 2 Anoka County City of Lino Lakes 21 Anoka County Ratio Study – 20 1 3 Assessment Assessment Year 2013 2012 2011 2010 2009 Municipality #Median Coeff #Median Coeff #Median Coeff #Median Coeff #Median Coeff Andover 224 94.3 5.8 156 94.6 7.0 220 94.5 5.6 145 95.9 5.7 191 93.0 6.4 Anoka 87 94.9 8.8 65 94.8 8.4 83 94.5 7.6 61 95.5 8.1 75 94.5 7.0 Bethel 1 94.5 0.0 1 94.6 0.0 3 98.8 5.6 3 97.9 2.0 3 95.5 3.9 Blaine 456 94.3 7.7 313 94.4 7.3 400 95.4 7.1 344 95.6 8.7 325 94.8 5.7 Centerville 32 94.4 5.6 16 94.8 5.1 23 91.8 10.2 31 94.5 5.8 34 95.8 6.1 Circle Pines 45 94.3 7.5 31 94.4 7.8 27 95.3 7.4 33 93.8 7.0 32 94.1 7.1 Columbia Heights 125 94.6 11.2 98 94.1 8.5 106 96.2 9.4 128 96.5 10.2 134 94.6 8.3 Columbus 18 95.4 7.1 8 94.5 3.5 16 95.9 9.6 18 94.0 6.9 26 94.7 7.2 Coon Rapids 314 94.8 6.6 203 94.5 6.2 247 94.5 5.6 275 94.8 8.3 369 94.4 5.8 East Bethel 81 95.1 8.2 50 94.9 7.9 52 96.1 6.4 35 93.7 7.4 51 92.4 8.0 Fridley 107 94.3 6.6 90 94.6 8.2 117 95.0 7.4 126 94.4 9.9 160 94.4 8.0 Ham Lake 102 94.5 9.5 61 94.5 8.6 72 94.4 8.8 53 95.7 7.5 77 94.4 8.0 Hilltop 0 - - - - - -0 - - - - - -1 102.3 0.0 0 - - -- - -0 - - -- - - Lexington 7 94.6 13.9 4 94.3 6.1 5 96.1 8.1 7 96.2 3.8 5 94.5 6.0 Lino Lakes 133 94.5 7.7 94 94.0 8.0 108 95.2 6.7 78 95.1 7.9 107 93.8 6.6 Linwood 25 95.5 11.0 15 94.5 6.8 23 97.2 9.3 15 96.6 6.4 20 93.8 8.1 Nowthen 28 94.5 10.9 6 94.6 4.0 19 94.4 10.5 15 95.3 16.0 7 92.4 6.7 Oak Grove 37 94.5 10.3 28 94.0 7.5 33 94.5 9.2 22 95.0 8.9 36 94.7 9.1 Ramsey 128 94.7 6.9 92 94.0 8.2 109 94.1 7.4 105 96.1 6.7 139 93.9 7.2 Spring Lake Park 27 95.5 7.7 14 94.1 5.7 36 95.1 9.4 30 92.1 7.5 42 94.8 6.7 St. Francis 27 94.5 12.2 25 94.5 6.9 34 95.2 6.3 24 97.2 6.6 32 94.0 4.5 County Total 2004 94.5 7.7 1370 94.5 7.4 1734 94.9 6.7 1548 95.3 8.2 1865 94.3 6.9 Price Related Differential 102 101 101 102 101 Assessment Year 2008 2007 2006 2005 2004 Municipality #Median Coeff #Median Coeff #Median Coeff #Median Coeff #Median Coeff Andover 248 94.4 4.4 370 93.3 4.9 550 94.5 4.2 591 95.4 23.6 479 94.4 3.6 Anoka 132 94.2 5.4 223 94.4 6.7 257 94.9 7.1 330 94.4 6.8 213 94.5 5.4 Bethel 8 94.2 7.3 10 91.1 4.8 8 94.5 7.4 23 99.9 27.7 7 94.4 2.4 Blaine 590 94.0 6.2 868 93.6 5.5 1007 94.4 5.5 1428 95.7 17.6 900 94.4 5.4 Centerville 45 95.3 4.5 75 93.6 7.5 84 94.7 6.3 106 93.7 9.1 74 94.3 5.5 Circle Pines 54 94.7 4.6 70 96.7 5.5 91 94.6 4.8 174 94.6 7.5 52 94.4 4.1 Columbia Heights 194 94.6 9.1 294 94.0 7.3 380 94.6 8.3 383 91.9 11.5 255 94.3 7.0 Columbus 20 97.7 7.0 29 96.4 11.2 29 99.8 18.2 40 93.3 9.3 27 94.2 6.7 Coon Rapids 613 93.7 4.9 1000 93.7 5.2 1268 94.5 5.8 1488 94.3 36.6 793 94.4 5.4 East Bethel 83 94.2 9.1 137 97.2 5.9 176 95.7 17.7 202 92.0 13.8 169 94.7 7.4 Fridley 253 94.7 6.8 317 93.4 6.1 429 94.7 8.4 441 98.0 7.7 290 94.5 6.5 Ham Lake 97 93.6 6.3 182 93.8 7.6 191 94.5 6.4 312 97.0 43.4 232 94.3 5.4 Hilltop 1 96.6 - - -1 86.0 - - -3 93.0 1.4 3 93.0 18.1 0 - - -- - - Lexington 13 93.2 8.9 25 92.9 9.3 30 94.3 7.2 23 95.2 7.9 14 94.6 4.1 Lino Lakes 178 94.6 6.5 235 94.4 8.8 276 94.6 6.5 284 92.5 17.6 264 94.4 7.1 Linwood 51 95.7 9.4 85 91.0 16.2 68 94.4 9.3 75 94.3 23.5 66 94.4 7.4 Nowthen (fka Burns)31 96.7 7.6 35 90.5 9.0 44 94.2 5.2 91 95.2 51.8 77 94.5 9.2 Oak Grove 64 93.8 8.1 94 93.2 11.3 116 94.9 8.4 129 97.0 11.8 109 94.6 6.4 Ramsey 220 94.7 5.8 315 93.7 6.9 379 94.6 6.7 561 95.7 13.7 351 94.4 6.6 Spring Lake Park 59 93.6 4.8 69 96.1 4.8 87 94.5 8.8 112 94.9 6.4 71 94.4 4.3 St. Francis 87 94.7 5.0 129 93.7 4.3 158 94.7 4.3 203 96.9 31.7 250 94.4 5.0 County Total 3041 94.3 6.1 4,563 93.8 6.3 5,632 94.5 6.3 7,000 95.2 21.7 4,693 94.4 5.7 Price Related Differential 101 99 101 111 101 Residential Single Family Sales Ratio History 2004 - 2013 Anoka County City of Lino Lakes 22 201 3 Lino Lakes Residential Ratio by Zone Number Median Coefficient of Sales of Sales Ratio Dispersion LL00 2.5 & 5 Acre Tracts 2 94.8 8.8 LL01 2000 & Newer Executive 30 94.7 8.5 LL01-5 Lakeshore 5 94.1 11.9 LL02 1950's & 1960's 4 94.5 5.4 LL03 1990's & 2000's 28 96.3 8.1 LL04 1970's & 1980's 12 94.7 7.7 LL07 Detatched Townhomes 3 96.8 1.5 LL08 Midrange 29 94.6 8.3 LL09 Townhomes 10 94.4 4.1 LL10 Nature Conservation Plats 2 90.7 1.5 LL11 Condos 8 94.1 4.9 133 94.5 7.7 Neighborhood Code Neighborhood Description Citywide Residential Sales Ratio Anoka County City of Lino Lakes 23 Residential Tax Changes Examined Although the Assessor’s Office is considered by many to be the primary reason for any property tax changes there are actually several elements that can contribute to this change, including, but not limited to: Changes in the approved levies of individual taxing jurisdictions . Bond referendum approv als. Tax rate changes approved by the State Legislature. Changes to the homestead credit, educational credits and agricultural aid. Changes in assessed market value. Changes in the classification of the property. A combination of any of these factors can bring about a change in the annual property tax bill. If you have questions, please call 763 -323 -5400. Anoka County City of Lino Lakes 24 ADDENDA Anoka County City of Lino Lakes 25 Statutes Minnesota State Statute 270.12 State Board of Equalization section 8 of subd. 2 outlines sales study period Minnesota State Sta tute 273.11 Valuation of Property Minnesota State Statute 273.121 Valuation of Real Property Notice Minnesota State Statute 273.13 Classification of Property Minnesota State Statute 273.20 Assessor May Enter Dwellings, Buildings, or Structures authori zes assessors to make assumptions if unable to gain access to structures Minnesota State Statute 274.01 Board of Appeal and Equalization subd. 1b states that the board has no authority to make any change that would benefit the property owner if th e assessor has been denied entry Minnesota State Statute 274.014 Local Boards; Appeals and Equalization Course and Meeting Requirements Anoka County City of Lino Lakes 26 270.12 STATE BOARD OF EQUALIZATION; DUTIES. Subdivision 1.Commissioner of revenue constitutes board. The com missioner of revenue shall constitute the State Board of Equalization. The board may adjourn from day to day and employ necessary clerical assistance. Subd. 2.Meeting dates; duties. The board shall meet annually between April 15 and June 30 at the offi ce of the commissioner of revenue and examine and compare the returns of the assessment of the property in the several counties, and equalize the same so that all the taxable property in the state shall be assessed at its market value, subject to the follo wing rules: (1) The board shall add to the aggregate valuation of the real property of every county, which the board believes to be valued below its market value in money, such percent as will bring the same to its market value in money; (2) The board shal l deduct from the aggregate valuation of the real property of every county, which the board believes to be valued above its market value in money, such percent as will reduce the same to its market value in money; (3) If the board believes the valuation fo r a part of a class determined by a range of market value under clause (8) or otherwise, a class, or classes of the real property of any town or district in any county, or the valuation for a part of a class, a class, or classes of the real property of any county not in towns or cities, should be raised or reduced, without raising or reducing the other real property of such county, or without raising or reducing it in the same ratio, the board may add to, or take from, the valuation of a part of a class, a class, or classes in any one or more of such towns or cities, or of the property not in towns or cities, such percent as the board believes will raise or reduce the same to its market value in money; (4) The board shall add to the aggregate valuation of an y part of a class, a class, or classes of personal property of any county, town, or city, which the board believes to be valued below the market value thereof, such percent as will raise the same to its market value in money; (5) The board shall take from the aggregate valuation of any part of a class, a class, or classes of personal property in any county, town or city, which the board believes to be valued above the market value thereof, such percent as will reduce the same to its market value in money; (6) The board shall not reduce the aggregate valuation of all the property of the state, as returned by the several county auditors, more than one percent on the whole valuation thereof; (7) When it would be of assistance in equalizing values the board may require any county auditor to furnish statements showing assessments of real and personal property of any individuals, firms, or corporations within the county. The board shall consider and equalize such assessments and may increase the assessment of indiv iduals, firms, or corporations above the amount returned by the county board of equalization when it shall appear to be undervalued, first giving notice to such persons of the intention of the board so to do, which notice shall fix a time and place of hear ing. The board shall not decrease any such assessment below the valuation placed by the county board of equalization; (8) In equalizing values pursuant to this section, the board shall utilize a 12 -month assessment/sales ratio study conducted by the Depar tment of Revenue containing only sales that are filed in the county auditor's office under section 272.115 , by November 1 of the previous year and that occurred between October 1 of the year immediately preceding the previous year and September 30 of the previous year . The assessment/sales ratio study may separate the values of residential property into market value categories. The board may adjust the market value cate gories and the number of categories as necessary to create an adequate sample size for each market value category. The board may determine the adequate sample size. To the extent practicable, the methodology used in preparing the assessment/sales ratio stu dy must be consistent with the most recent Standard on Assessment Sales Ratio Studies published by the Assessment Standards Committee of the International Association of Assessing Officers. The board may determine the geographic area used in preparing the study to accurately equalize values. A sales ratio study separating residential property into market value categories may not be used as the basis for a petition under chapter 278. The sales prices used in the study must be discounted for terms of financin g. The board shall use the median ratio as the statistical measure of the level of assessment for any particular category of property; and (9) The board shall receive from each county the estimated market values on the assessment date falling within the st udy period for all parcels by magnetic tape or other medium as prescribed by the commissioner of revenue. Subd. 3.Jurisdictions in two or more counties. Anoka County City of Lino Lakes 27 When a taxing jurisdiction lies in two or more counties, if the sales ratio studies prepared by the Department of Revenue show that the average levels of assessment in the several portions of the taxing jurisdictions in the different counties differ by more than five percent, the board may order the apportionment of the levy. When the sales ratio studie s prepared by the Department of Revenue show that the average levels of assessment in the several portions of the taxing jurisdictions in the different counties differ by more than ten percent, the board shall order the apportionment of the levy unless (a) the proportion of total adjusted gross tax capacity in one of the counties is less than ten percent of the total adjusted gross tax capacity in the taxing jurisdiction and the average level of assessment in that portion of the taxing jurisdiction is the l evel which differs by more than five percent from the assessment level in any one of the other portions of the taxing jurisdiction; (b) significant changes have been made in the level of assessment in the taxing jurisdiction which have not been reflected i n the sales ratio study, and those changes alter the assessment levels in the portions of the taxing jurisdiction so that the assessment level now differs by five percent or less; or (c) commercial, industrial, mineral, or public utility property predomina tes in one county within the taxing jurisdiction and another class of property predominates in another county within that same taxing jurisdiction. If one or more of these factors are present, the board may order the apportionment of the levy. Notwithstand ing any other provision, the levy for the Metropolitan Mosquito Control District, Metropolitan Council, metropolitan transit district, and metropolitan transit area must be apportioned without regard to the percentage difference. If, pursuant to this subdi vision, the board apportions the levy, then that levy apportionment among the portions in the different counties shall be made in the same proportion as the adjusted gross tax capacity as determined by the commissioner in each portion is to the total adjus ted gross tax capacity of the taxing jurisdiction. For the purposes of this section, the average level of assessment in a taxing jurisdiction or portion thereof shall be the aggregate assessment sales ratio. Gross tax capacities as determined by the commis sioner shall be the gross tax capacities as determined for the year preceding the year in which the levy to be apportioned is levied. Actions pursuant to this subdivision shall be commenced subsequent to the annual meeting on April 15 of the State Board of Equalization, but notice of the action shall be given to the affected jurisdiction and the appropriate county auditors by the following June 30. Apportionment of a levy pursuant to this subdivision shall be considered as a remedy to be taken after equaliz ation pursuant to subdivision 2, and when equalization within the jurisdiction would disturb equalization within other jurisdictions of which the several portions of the jurisdiction in question are a part. Subd. 4.Public utility property. For purposes of equalization only, public utility personal property shall be treated as a separate class of property notwithstanding the fact that its class rate is the same as commercial -industrial property. Subd. 5.Equalization orders. The Board of Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders to ensure that the results of local and county boards of equalization are consistent with the objective of state equalization. The board may issue, at its discretion, a supplem ental order to amend, supersede, or correct a prior order of the board or an order of a local or county board. The supplemental order must be issued within 60 days of the order to be changed. The board may issue to a local or county board of equalization, within ten business days of the receipt of minutes of a local or county board of equalization, an order explaining the action that the state board believes will be necessary to effect the objective of state equalization. History: (2366 ) RL s 863 ; 1971 c 564 s 3 ; 1973 c 123 art 5 s 7 ; 1973 c 582 s 3 ; 1975 c 295 s 1 ; 1975 c 339 s 8 ; 1978 c 766 s 1 ; 1980 c 616 s 10 ; 1983 c 222 s 3 ; 1985 c 300 s 3 ; 1Sp1986 c 1 art 4 s 10 ; 1987 c 268 art 7 s 20 ,21; 198 8 c 719 art 5 s 84 ; 1989 c 277 art 2 s 12 ; 1989 c 329 art 15 s 20 ; 1Sp1989 c 1 art 2 s 11 ; art 3 s 1; art 9 s 9,10; 1991 c 291 art 1 s 7 ; art 12 s 3; 1994 c 416 art 1 s 7 Anoka County City of Lino Lakes 28 273.11 VALUATION OF PROPERTY. Subdivision 1. Generally. Except as provided in this section or section 273.17, subdi vision 1 , all property shall be valued at its market value. The market value as determined pursuant to this section shall be stated such that any amount under $100 is rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. I n estimating and determining such value, the assessor shall not adopt a lower or different standard of value because the same is to serve as a basis of taxation, nor shall the assessor adopt as a criterion of value the price for which such property would s ell at a forced sale, or in the aggregate with all the property in the town or district; but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money. The assessor shall take into account the effect on the market value of property of environmental factors in the vicinity of the property. In assessing any tract or lot of real property, the value of the land, exclusive of structures and improvements, shal l be determined, and also the value of all structures and improvements thereon, and the aggregate value of the property, including all structures and improvements, excluding the value of crops growing upon cultivated land. In valuing real property upon whi ch there is a mine or quarry, it shall be valued at such price as such property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, if the material being mined or quarried is not subject to taxation under section 298.015 and the mine or quarry is not exempt from the general property tax under section 298.25 . In valuing real prop erty which is vacant, platted property shall be assessed as provided in subdivision 14. All property, or the use thereof, which is taxable under section 272.01, subdivis ion 2 , or 273.19 , shall be valued at the market value of such property and not at the value of a leasehold estate in such property, or at some lesser value than its market value. Subd. 1a. Limited market value. In the case of all property classified as agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, or noncommercial seasonal residential recreational, the assessor shall compare the value wi th the taxable portion of the value determined in the preceding assessment.For assessment years 2004, 2005, and 2006, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 percent of t he difference between the current assessment and the preceding assessment. For assessment year 2007, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference bet ween the current assessment and the preceding assessment. For assessment year 2008, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference between the current assessment and the preceding assessment. This limitation shall not apply to increases in value due to improvements. For purposes of this subdivision, the term "assessment" means the value prior to any exclusion under subdivision 16.The provisions of this s ubdivision shall be in effect through assessment year 2008 as provided in this subdivision. For purposes of the assessment/sales ratio study conducted under section 127A.48 , and th e computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and 477A, market values and net tax capacities determined under this subdivision and subdivision 16, shall be used. Subd. 2.[Repealed, 1979 c 303 art 2 s 38] Subd. 3.[Repealed, 1975 c 437 art 8 s 10] Subd. 4.[Repealed, 1976 c 345 s 3] Subd. 5. Boards of review and equalization. Notwithstanding any other provision of law to the contrary, the limitation contained in subdivisions 1 and 1a shall also apply to the authority of the local board of review as provided in section 274.01 , the county board of equalization as provided in section 274.13 , the State Board of Equalization and the commissioner of revenue as provided in sections 270.11, subdivision 1 , 270.12 , 270C.92 , and 270C.94 . Subd. 6. Solar, w ind, methane gas systems. For purposes of property taxation, the market value of real and personal property installed prior to January 1, 1984, which is a solar, wind, or agriculturally derived methane gas system used as a heating, cooling, or electric pow er source of a building or structure shall be excluded from the market value of that building or structure if the property is not used to provide energy for sale. Anoka County City of Lino Lakes 29 Subd. 6a. Fire -safety sprinkler systems. For purposes of property taxation, the market va lue of automatic fire -safety sprinkler systems installed in existing buildings after January 1, 1992, meeting the standards of the Minnesota Fire Code shall be excluded from the market value of (1) existing multifamily residential real estate containing fo ur or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence and (2) existing real estate containing four or more contiguous residential units for use by customers of the owner, such as hotels, motels, and lodging houses and (3) existing office buildings or mixed use commercial -residential buildings, in which at least one story capable of occupancy is at least 75 feet above the ground. The market value exclusion under this section shall expire if the proper ty is sold. Subd. 7.[Repealed, 1984 c 502 art 3 s 36] Subd. 8. Limited equity cooperative apartments. For the purposes of this subdivision, the terms defined in this subdivision have the meanings given them.A "limited equity cooperative" is a corpo ration organized under chapter 308A or 308B, which has as its primary purpose the provision of housing and related services to its members which meets one of the following criteria with respect to the income of its members: (1) a minimum of 75 percent of m embers must have incomes at or less than 90 percent of area median income, (2) a minimum of 40 percent of members must have incomes at or less than 60 percent of area median income, or (3) a minimum of 20 percent of members must have incomes at or less tha n 50 percent of area median income. For purposes of this clause, "member income" shall mean the income of a member existing at the time the member acquires cooperative membership, and median income shall mean the St. Paul -Minneapolis metropolitan area medi an income as determined by the United States Department of Housing and Urban Development. It must also meet the following requirements:(a) The articles of incorporation set the sale price of occupancy entitling cooperative shares or memberships at no more than a transfer value determined as provided in the articles. That value may not exceed the sum of the following:(1) the consideration paid for the membership or shares by the first occupant of the unit, as shown in the records of the corporation;(2) the f air market value, as shown in the records of the corporation, of any improvements to the real property that were installed at the sole expense of the member with the prior approval of the board of directors;(3) accumulated interest, or an inflation allowan ce not to exceed the greater of a ten percent annual noncompounded increase on the consideration paid for the membership or share by the first occupant of the unit, or the amount that would have been paid on that consideration if interest had been paid on it at the rate of the percentage increase in the revised Consumer Price Index for All Urban Consumers for the Minneapolis -St. Paul metropolitan area prepared by the United States Department of Labor, provided that the amount determined pursuant to this cla use may not exceed $500 for each year or fraction of a year the membership or share was owned; plus(4) real property capital contributions shown in the records of the corporation to have been paid by the transferor member and previous holders of the same m embership, or of separate memberships that had entitled occupancy to the unit of the member involved. These contributions include contributions to a corporate reserve account the use of which is restricted to real property improvements or acquisitions, con tributions to the corporation which are used for real property improvements or acquisitions, and the amount of principal amortized by the corporation on its indebtedness due to the financing of real property acquisition or improvement or the averaging of p rincipal paid by the corporation over the term of its real property -related indebtedness.(b) The articles of incorporation require that the board of directors limit the purchase price of stock or membership interests for new member -occupants or resident sh areholders to an amount which does not exceed the transfer value for the membership or stock as defined in clause (a).(c) The articles of incorporation require that the total distribution out of capital to a member shall not exceed that transfer value.(d) The articles of incorporation require that upon liquidation of the corporation any assets remaining after retirement of corporate debts and distribution to members will be conveyed to a charitable organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, or a public agency.A "limited equity cooperative apartment" is a dwelling unit owned by a limited equity cooperative."Occupancy entitling cooperative share or membership" is the ownership interes t in a cooperative organization which entitles the holder to an exclusive right to occupy a dwelling unit Anoka County City of Lino Lakes 30 owned or leased by the cooperative. For purposes of taxation, the assessor shall value a unit owned by a limited equity cooperative at the lesser of i ts market value or the value determined by capitalizing the net operating income of a comparable apartment operated on a rental basis at the capitalization rate used in valuing comparable buildings that are not limited equity cooperatives. If a cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the property shall be subject to additional property taxes in the amount of the difference between the taxes determined in accordance with this subdivision for the last ten years th at the property had been assessed pursuant to this subdivision and the amount that would have been paid if the provisions of this subdivision had not applied to it. The additional taxes, plus interest at the rate specified in section 549.09 , shall be extended against the property on the tax list for the current year. Subd. 9. Condominium property. Notwithstanding any other provision of law to the contrary, for purposes of propert y taxation, condominium property shall be valued in accordance with this subdivision.(a) A structure or building that is initially constructed as condominiums shall be identified as separate units after the filing of a declaration. The market value of the residential units in that structure or building and included in the declaration shall be valued as condominiums.(b) When 60 percent or more of the residential units in a structure or building being converted to condominiums have been sold as condominiums i ncluding those units that the converters retain for their own investment, the market value of the remaining residential units in that structure or building which are included in the declaration shall be valued as condominiums. If not all of the residential units in the structure or building are included in the declaration, the 60 percent factor shall apply to those in the declaration. A separate description shall be recognized when a declaration is filed. For purposes of this clause, "retain" shall mean uni ts that are rented and completed units that are not available for sale.(c) For purposes of this subdivision, a "sale" is defined as the date when the first written document for the purchase or conveyance of the property is signed, unless that document is r evoked. Subd. 10.[Repealed, 1999 c 243 art 5 s 54] Subd. 11. Valuation of restored or preserved wetland. Wetlands restored by the federal, state, or local government, or by a nonprofit organization, or preserved under the terms of a temporary or pe rpetual easement by the federal or state government, must be valued by assessors at their wetland value. "Wetland value" in this subdivision means the market value of wetlands in any potential use in which the wetland character is not permanently altered. Wetland value shall not reflect potential uses of the wetland that would violate the terms of any existing conservation easement, or any one -time payment received by the wetland owner under the terms of a state or federal conservation easement. Wetland val ue shall reflect any potential income consistent with a property's wetland character, including but not limited to lease payments for hunting or other recreational uses. The commissioner of revenue shall issue a bulletin advising assessors of the provision s of this section by October 1, 1991.For purposes of this subdivision, "wetlands" means lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this definition, wetlands must have the following three attributes:(1) have a predominance of hydric soils;(2) are inundated or saturated by surface or ground water at a frequency and duration sufficient to support a prevalence of hydrophytic vegetatio n typically adapted for life in saturated soil conditions; and(3) under normal circumstances support a prevalence of such vegetation. Subd. 12. Neighborhood land trusts. (a) A neighborhood land trust, as defined under chapter 462A, is (i) a community -b ased nonprofit corporation organized under chapter 317A, which qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02, subdivis ion 6 , which has received funding from the Minnesota housing finance agency for purposes of the neighborhood land trust program. The Minnesota Housing Finance Agency shall set the criteria for neighborhood land trusts. (b) All occupants of a neighborhood land trust building must have a family income of less than 80 percent of the greater of (1) the state median income, or (2) the area or county median income, as most recently determined by the Department of Housing and Urban Development. Before the neighbo rhood land trust can rent or sell a unit to an applicant, the neighborhood land trust shall verify to the satisfaction of the administering agency or the city that the family income of each Anoka County City of Lino Lakes 31 person or family applying for a unit in the neighborhood land trus t building is within the income criteria provided in this paragraph. The administering agency or the city shall verify to the satisfaction of the county assessor that the occupant meets the income criteria under this paragraph. The property tax benefits un der paragraph (c) shall be granted only to property owned or rented by persons or families within the qualifying income limits. The family income criteria and verification is only necessary at the time of initial occupancy in the property.(c) A unit which is owned by the occupant and used as a homestead by the occupant qualifies for homestead treatment as class 1a under section 273.13, subdivision 22 . A unit which is re nted by the occupant and used as a homestead by the occupant shall be class 4a or 4b property, under section 273.13, subdivision 25 , whichever is applicable. Any remai ning portion of the property not used for residential purposes shall be classified by the assessor in the appropriate class based upon the use of that portion of the property owned by the neighborhood land trust. The land upon which the building is located shall be assessed at the same class rate as the units within the building, provided that if the building contains some units assessed as class 1a and some units assessed as class 4a or 4b, the market value of the land will be assessed in the same proporti ons as the value of the building. Subd. 13. Valuation of income -producing property. Beginning with the 1995 assessment, only accredited assessors or senior accredited assessors or other licensed assessors who have successfully completed at least two i ncome -producing property appraisal courses may value income - producing property for ad valorem tax purposes. "Income -producing property" as used in this subdivision means the taxable property in class 3a and 3b in section 273.13, subdivision 24 ; class 4a and 4c, except for seasonal recreational property not used for commercial purposes; and class 5 in section 273.13, subdivision 31 . "Income -producing property" includes any property in class 4e in section 273.13, subdivision 25 , that would be incom e -producing property under the definition in this subdivision if it were not substandard. "Income -producing property appraisal course" as used in this subdivision means a course of study of approximately 30 instructional hours, with a final comprehensive t est. An assessor must successfully complete the final examination for each of the two required courses. The course must be approved by the board of assessors. Subd. 14. Vacant land platted before August 1, 2001. (a) All land platted before August 1, 20 01, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities.(b) The market value determined in paragraph (a) shall be i ncreased as follows for each of the three assessment years immediately following the final approval of the plat: one -third of the difference between the property's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted property shall be added in each of the three subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's mark et value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. Subd. 14a. Vacant land platted on or after August 1, 2001; located in metropolitan counties. (a) All land pla tted on or after August 1, 2001, located in a metropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest a nd best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilit ies.(b) The market value determined in paragraph (a) shall be increased as follows for each of the three assessment years immediately following the final approval of the plat: one -third of the difference between the property's unplatted market value as det ermined under paragraph (a) and the market value based upon the highest and best use of the land as platted Anoka County City of Lino Lakes 32 property shall be added in each of the three subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land.(d) For purposes of this section, "metropolitan cou nty" means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Subd. 14b. Vacant land platted on or after August 1, 2001; located in nonmetropolitan counties. (a) All land platted on or after August 1, 2001, located in a non metropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities.(b) The market value determined in paragra ph (a) shall be increased as follows for each of the seven assessment years immediately following the final approval of the plat: one -seventh of the difference between the property's unplatted market value as determined under paragraph (a) and the market v alue based upon the highest and best use of the land as platted property shall be added in each of the seven subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the seven years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market val ue of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. Subd. 15. Vacant hospitals. In valuing a hospital, as defined in section 144.50, subdivisi on 2 , that is located outside of a metropolitan county, as defined in section 473.121, subdivision 4 , and that on the date of sale is vacant and not used for hospital purposes or for any other purpose, the assessor's estimated market value for taxes levied in the year of the sale shall be no greater than the sales price of the property, including both the land and the buildings, as adjusted for terms of financing. If t he sale is made later than December 15, the market value as determined under this subdivision shall be used for taxes levied in the following year. This subdivision applies only if the sales price of the property was determined under an arm's -length transa ction. Subd. 16. Valuation exclusion for certain improvements. Improvements to homestead property made before January 2, 2003, shall be fully or partially excluded from the value of the property for assessment purposes provided that (1) the house is a t least 45 years old at the time of the improvement and (2) the assessor's estimated market value of the house on January 2 of the current year is equal to or less than $400,000.For purposes of determining this eligibility, "house" means land and buildings . The age of a residence is the number of years since the original year of its construction. In the case of a residence that is relocated, the relocation must be from a location within the state and the only improvements eligible for exclusion under this s ubdivision are (1) those for which building permits were issued to the homeowner after the residence was relocated to its present site, and (2) those undertaken during or after the year the residence is initially occupied by the homeowner, excluding any ma rket value increase relating to basic improvements that are necessary to install the residence on its foundation and connect it to utilities at its present site. In the case of an owner - occupied duplex or triplex, the improvement is eligible regardless of which portion of the property was improved. If the property lies in a jurisdiction which is subject to a building permit process, a building permit must have been issued prior to commencement of the improvement. The improvements for a single project or in any one year must add at least $5,000 to the value of the property to be eligible for exclusion under this subdivision. Only improvements to the structure which is the residence of the qualifying homesteader or construction of or improvements to no more th an one two -car garage per residence qualify for the provisions of this subdivision. If an improvement was begun between January Anoka County City of Lino Lakes 33 2, 1992, and January 2, 1993, any value added from that improvement for the January 1994 and subsequent assessments shall qualif y for exclusion under this subdivision provided that a building permit was obtained for the improvement between January 2, 1992, and January 2, 1993. Whenever a building permit is issued for property currently classified as homestead, the issuing jurisdict ion shall notify the property owner of the possibility of valuation exclusion under this subdivision. The assessor shall require an application, including documentation of the age of the house from the owner, if unknown by the assessor. The application may be filed subsequent to the date of the building permit provided that the application must be filed within three years of the date the building permit was issued for the improvement. If the property lies in a jurisdiction which is not subject to a building permit process, the application must be filed within three years of the date the improvement was made. The assessor may require proof from the taxpayer of the date the improvement was made. Applications must be received prior to July 1 of any year in orde r to be effective for taxes payable in the following year. No exclusion for an improvement may be granted by a local board of review or county board of equalization, and no abatement of the taxes for qualifying improvements may be granted by the county boa rd unless (1) a building permit was issued prior to the commencement of the improvement if the jurisdiction requires a building permit, and (2) an application was completed. The assessor shall note the qualifying value of each improvement on the property's record, and the sum of those amounts shall be subtracted from the value of the property in each year for ten years after the improvement has been made. After ten years the amount of the qualifying value shall be added back as follows:(1) 50 percent in the two subsequent assessment years if the qualifying value is equal to or less than $10,000 market value; or(2) 20 percent in the five subsequent assessment years if the qualifying value is greater than $10,000 market value. If an application is filed after the first assessment date at which an improvement could have been subject to the valuation exclusion under this subdivision, the ten - year period during which the value is subject to exclusion is reduced by the number of years that have elapsed since the pr operty would have qualified initially. The valuation exclusion shall terminate whenever (1) the property is sold, or (2) the property is reclassified to a class which does not qualify for treatment under this subdivision. Improvements made by an occupant w ho is the purchaser of the property under a conditional purchase contract do not qualify under this subdivision unless the seller of the property is a governmental entity. The qualifying value of the property shall be computed based upon the increase from that structure's market value as of January 2 preceding the acquisition of the property by the governmental entity. The total qualifying value for a homestead may not exceed $50,000. The total qualifying value for a homestead with a house that is less than 70 years old may not exceed $25,000. The term "qualifying value" means the increase in estimated market value resulting from the improvement if the improvement occurs when the house is at least 70 years old, or one -half of the increase in estimated market value resulting from the improvement otherwise. The $25,000 and $50,000 maximum qualifying value under this subdivision may result from multiple improvements to the homestead. If 50 percent or more of the square footage of a structure is voluntarily razed or removed, the valuation increase attributable to any subsequent improvements to the remaining structure does not qualify for the exclusion under this subdivision. If a structure is unintentionally or accidentally destroyed by a natural disaster, the pro perty is eligible for an exclusion under this subdivision provided that the structure was not completely destroyed. The qualifying value on property destroyed by a natural disaster shall be computed based upon the increase from that structure's market valu e as determined on January 2 of the year in which the disaster occurred. A property receiving benefits under the homestead disaster provisions under section 273.123 is not disquali fied from receiving an exclusion under this subdivision. If any combination of improvements made to a structure after January 1, 1993, increases the size of the structure by 100 percent or more, the valuation increase attributable to the portion of the imp rovement that causes the structure's size to exceed 100 percent does not qualify for exclusion under this subdivision. Subd. 17. Valuation of contaminated properties. (a) In determining the market value of property containing contaminants, the assesso r shall reduce the market value of the property by the contamination value of the property. The contamination value is the amount of the market value reduction that results from the presence of the contaminants, but it may not exceed the cost of a Anoka County City of Lino Lakes 34 reasonab le response action plan or asbestos abatement plan or management program for the property.(b) For purposes of this subdivision, "asbestos abatement plan," "contaminants," and "response action plan" have the meanings as used in sections 270.91 and 270.92 . Subd. 18. Disclosure of valuation exclusion. No seller of real property shall sell or offer for sale p roperty that, for purposes of property taxation, has an exclusion from market value for home improvements under subdivision 16, without disclosing to the buyer the existence of the excluded valuation and informing the buyer that the exclusion will end upon the sale of the property and that the property's estimated market value for property tax purposes will increase accordingly. Subd. 19. Valuation exclusion for improvements to certain business property. Property classified under Minnesota Statutes, sec tion 273.13, subdivision 24 , which is eligible for the preferred class rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment purposes, provided all of the following conditions are met: (1) the building must be at least 50 years old at the time of the improvement or damaged by the 1997 floods;(2) the building must be located in a city or town with a population of 10,000 or less t hat is located outside the seven -county metropolitan area, as defined in section 473.121, subdivision 2 ; (3) the total estimated market value of the land and buildings must be $100,000 or less prior to the improvement and prior to the damage caused by the 1997 floods;(4) the current year's estimated market value of the property must be equal to or less than the property's estimated market value in each of the two previo us years' assessments;(5) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;(6) the property, including its improvements, has received no public assistance, grants or financing except, that in the case of property damaged by the 1997 floods, the property is eligible to the extent that the fl ood losses are not reimbursed by insurance or any public assistance, grants, or financing;(7) the property is not receiving a property tax abatement under section 469.1813 ; and (8 ) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to January 1, 1999.The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the prior year's assessment, the assessor shall note the amount of the increase on the property's rec ord, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made, at which time an amount equal to 20 percent of the excluded value shall be added back in each of the five subsequent as sessment years. For any property, there can be no more than two improvements qualifying for exclusion under this subdivision. The maximum amount of value that can be excluded from any property under this subdivision is $50,000.The assessor shall require an application, including documentation of the age of the building from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year. For purposes of this su bdivision, "population" has the same meaning given in Minnesota Statutes, section 477A.011, subdivision 3 . Subd. 20. Valuation exclusion for improvements to cert ain business property. Property classified under section 273.13, subdivision 24 , qualifies for a valuation exclusion for assessment purposes, provided all of the follo wing conditions are met: (1) the building must have been damaged by the 2002 floods;(2) the building must be located in a city or town with a population of 10,000 or less that is located in a county in the area included in DR -1419;(3) the total estimated m arket value of the land and buildings must be $150,000 or less for assessment year 2002;(4) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;(5) the property is not receiving a property tax abatement under section 4 69.1813 ; and (6) the improvements are made before January 1, 2004.The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified t he assessor that an improvement was to be made. If the estimated market value of the building has increased over the Anoka County City of Lino Lakes 35 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, a nd that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made. In each of the next five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth year f or that improvement shall be added back. The maximum amount of value that can be excluded for all improvements to any property under this subdivision is $50,000.The assessor shall require an application. Applications must be received by December 31, 2002, or December 31, 2003, in order to be effective for taxes payable in the following year. For purposes of this subdivision, "population" has the meaning given in section 477A.011, subdivision 3 . Subd. 21. Valuation reduction for homestead property dama ged by mold. (a) The owner of homestead property may apply in writing to the assessor for a reduction in the market value of the property that has been damaged by mold. The notification must include the estimated cost to cure the mold condition provided by a licensed contractor. The estimated cost must be at least $20,000. Upon completion of the work, the owner must file an application on a form prescribed by the commissioner of revenue, accompanied by a copy of the contractor's estimate.(b) If the conditio ns in paragraph (a) are met, the county board must grant a reduction in the market value of the homestead dwelling equal to the estimated cost to cure the mold condition. If a property owner applies for a reduction under this subdivision between January 1 and June 30 of any year, the reduction applies for taxes payable in the following year. If a property owner applies for a reduction under this subdivision between July 1 and December 31 of any year, the reduction applies for taxes payable in the second fol lowing year.(c) A denial of a reduction under this section by the county board may be appealed to the tax court. If the county board takes no action on the application within 90 days after its receipt, it is considered an approval.(d) For purposes of subdi vision 1a, in the assessment year following the assessment year when a valuation reduction has occurred under this section, any market value added by the assessor to the property resulting from curing the mold condition must be considered an increase in va lue due to new construction. Subd. 22. Lead hazard market value reduction. Owners of property classified as class 1a, 1b, 1c, 2a, 4b, 4bb, or 4d under section 273.13 may apply fo r a lead hazard valuation reduction, provided that the property is located in a city which has authorized valuation reductions under this subdivision. A city that authorizes reductions under this subdivision must establish guidelines for qualifying lead ha zard reduction projects and must designate an agency within the city to issue certificates of c ompletion of qualifying projects. For purposes of this subdivision, "lead hazard reduction" has the same meaning as in section 144.9501, subdivision 17 .The property owner must obtain a certificate from the agency stating (1) that the project has been completed and (2) the total cost incurred by the owner, which must be at le ast $3,000. Only projects originating after July 1, 2005, and completed before July 1, 2010, qualify for a reduction under this subdivision. The property owner shall apply for the valuation reduction to the assessor on a form prescribed by the assessor acc ompanied by a copy of the certificate of completion from the agency. A qualifying property is eligible for a one -year valuation reduction equal to the actual cost incurred, to a maximum of $20,000. If a property owner applies to the assessor for the valuat ion reduction under this subdivision between January 1 and June 30 of any year, the reduction applies for taxes payable in the following year. If a property owner applies to the assessor for the valuation reduction under this subdivision between July 1 and December 31, the reduction applies for taxes payable in the second following year. For purposes of subdivision 1a, any additional market value resulting from the lead hazard removal must be considered an increase in value due to new construction. Subd . 23. First tier valuation limit; agricultural homestead property. (a) Beginning with assessment year 2006, the commissioner of revenue shall annually certify the first tier limit for agricultural homestead property as the product of (i) $600,000, and (ii) the ratio of the statewide average taxable market value of agricultural property per acre of deeded farm land in the preceding assessment year to the statewide average taxable market value of agricultural property per acre of deeded farm land for assessme nt year 2004. The limit shall be rounded to the nearest $10,000.(b) For the purposes of this subdivision, "agricultural property" means all class 2 property under section 273.13, subdivision 23, except for (1) timberland, (2) a landing area or public access area of a Anoka County City of Lino Lakes 36 privately owned public use airport, and (3) property consisting of the house, garage, and immediately surrounding one acre of land of an agricultural homes tead.(c) The commissioner shall certify the limit by January 2 of each assessment year, except that for assessment year 2006 the commissioner shall certify the limit by June 1, 2006. History: (1992) RL s 810; Ex1967 c 32 art 7 s 3; 1969 c 574 s 1; 1969 c 9 90 s 1; 1971 c 427 s 1; 1971 c 489 s 1; 1971 c 831 s 1; 1973 c 582 s 3; 1973 c 650 art 23 s 1 -4; 1974 c 556 s 14; 1975 c 437 art 8 s 4 -6; 1976 c 2 s 93; 1976 c 345 s 1; 1977 c 423 art 4 s 4; 1978 c 786 s 10,11; 1979 c 303 art 2 s 7; 1Sp1981 c 1 art 2 s 3,4 ; 1Sp1981 c 4 art 2 s 50; 1982 c 424 s 61,62; 1982 c 523 art 19 s 2; art 21 s 1; 1983 c 222 s 7; 1983 c 342 art 2 s 5 -7; 1984 c 502 art 3 s 6; 1Sp1985 c 14 art 4 s 35; 1986 c 444; 1Sp1986 c 1 art 4 s 12; 1987 c 268 art 5 s 1; art 7 s 32; 1987 c 384 art 3 s 10; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1989 c 356 s 13; 1990 c 480 art 7 s 5; 1990 c 604 art 3 s 9; 1991 c 291 art 1 s 12; 1991 c 354 art 10 s 7,8; 1992 c 511 art 2 s 11,12; 1992 c 556 s 2,3; 1992 c 597 s 14; 1993 c 375 art 5 s 8 -13; art 8 s 1 4; art 11 s 3; art 12 s 9; 1994 c 416 art 1 s 13; 1994 c 587 art 5 s 3 -5; 1995 c 1 s 2; 1995 c 264 art 16 s 9; 1996 c 471 art 3 s 5; 1997 c 231 art 2 s 10,11,52; art 8 s 2; 1997 c 251 s 16; 1998 c 397 art 11 s 3; 1999 c 243 art 5 s 6,7; 1Sp2001 c 5 art 3 s 23 -26; 1Sp2002 c 1 s 14; 2003 c 127 art 5 s 15; 1Sp2003 c 21 art 4 s 3; 2005 c 151 art 2 s 6; art 5 s 16; 1Sp2005 c 3 art 1 s 8 -10; 2006 c 259 art 4 s 11 Anoka County City of Lino Lakes 37 273.121 VALUATION OF REAL PROPERTY, NOTICE. Any county assessor or city assessor having the power s of a county assessor, valuing or classifying taxable real property shall in each year notify those persons whose property is to be included on the assessment roll that year if the person's address is known to the assessor, otherwise the occupant of the p roperty. The notice shall be in writing and shall be sent by ordinary mail at least ten days before the meeting of the local board of appeal and equalization under section 274.01 or the review process established under section 274.13, subdivision 1c . It shall contain: (1) the market value for the current and prior assessment, (2) the limited mark et value under section 273.11, subdivision 1a , for the current and prior assessment, (3) the qualifying amount of any improvements under section 273.11, subdivision 16 , for the current assessment, (4) the market value subject to taxation after subtracting the amount of any qualifying improvements for the current assessment, (5) the classification of the property for the current and prior assessment, (6) a note that if the property is homestead and at least 45 years old, improvements made to the property may be eligible for a valuation exclusion under section 273.11, subdivision 16 , (7) the assessor's office address, and (8) the dates, places, and times set for the meetings of the local board of appeal and equalization, the review process establish ed under section 274.13, subdivision 1c , and the county board of appeal and equalization. The commissioner of revenue shall specify the form of the notice. The assesso r shall attach to the assessment roll a statement that the notices required by this section have been mailed. Any assessor who is not provided sufficient funds from the assessor's governing body to provide such notices, may make application to the commissi oner of revenue to finance such notices. The commissioner of revenue shall conduct an investigation and, if satisfied that the assessor does not have the necessary funds, issue a certification t o the commissioner of finance of the amount necessary to provi de such notices. The commissioner of finance shall issue a warrant for such amount and shall deduct such amount from any state payment to such county or municipality. The necessary funds to make such payments are hereby appropriated. Failure to receive the notice shall in no way affect the validity of the assessment, the resulting tax, the procedures of any board of review or equalization, or the enforcement of delinquent taxes by statutory means. History: Ex1971 c 31 art 23 s 2; 1973 c 492 s 14; 1974 c 36 3 s 1; 1975 c 437 art 8 s 7; 1980 c 437 s 3; 1982 c 523 art 23 s 1; 1Sp1985 c 14 art 4 s 41; 1986 c 444; 1988 c 719 art 6 s 8; 1993 c 375 art 5 s 16; 1995 c 1 s 3; 1997 c 231 art 2 s 17; 1Sp2001 c 5 art 7 s 20; 2002 c 377 art 10 s 5 Anoka County City of Lino Lakes 38 273.13 CLASSIFICATI ON OF PROPERTY. Subdivision 1.How classified. All real and personal property subject to a general property tax and not subject to any gross earnings or other in -lieu tax is hereby classified for purposes of taxation as provided by this section. Subd. 2.[Re pealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 2a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 3.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 4.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Su bd. 5.[Repealed, Ex1971 c 31 art 22 s 5 ] Subd. 5a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 6.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 6a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 7.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 7a.[Repealed, 1988 c 719 art 5 s 81 ] Subd. 7b.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 7c.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 7d.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 8.[Repealed, Ex196 7 c 32 art 4 s 3 ] Subd. 8a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 9.[Repealed, 1 988 c 719 art 5 s 81 ] Subd. 10.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 11.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 12.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 13.[Repealed, 1974 c 313 s 1 ] Subd. 14.[Repealed, 1984 c 593 s 46 ] Subd. 14a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 15.[Repealed, Ex1971 c 31 art 36 s 2 ] Subd. 15a.[Repealed, 1988 c 719 art 5 s 81 ] Subd. 15b.[Repealed, 1983 c 342 art 2 s 30 ] Subd. 16.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 17.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 17a.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 17b.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 17c.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 17d.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 18.[Repealed, 1983 c 222 s 45 ] Subd. 19.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 20.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 21.[Repealed, 1Sp1985 c 14 art 4 s 98 ] Subd. 21a.Class rate . In this section, wherever the "class rate" of a class of property is specified without qualification as to whether it is the property's "net class rate" or its "gross class rate," the "net class rate" and "gross class rate" of that property are the same as its "class rate." Subd. 21b.Tax capacity . (a) Gross tax capacity means the product of the appropriate gross class rates in this section and market values. (b) Net tax capacity means the product of the appropriate net class rates in this section and market values. Subd. 22. Class 1 . (a) Except as provided in subdivision 23 and in paragraphs (b) and (c), real estate which is residential and used for homestead purposes is class 1a. In the case of a duplex or triplex in which one of the units is used for homestead purposes, the entire property is deem ed to Anoka County City of Lino Lakes 39 be used for homestead purposes. The market value of class 1a property must be determined based upon the value of the house, garage, and land. The first $500,000 of market value of class 1a property has a net class rate of one percent of its market v alue; and the market value of class 1a property that exceeds $500,000 has a class rate of 1.25 percent of its market value. (b) Class 1b property includes homestead real estate or homestead manufactured homes used for the purposes of a homestead by: (1) any person who is blind as defined in section 256D.35 , or the blind person and the blind person's spouse; (2) any person who is permanently and totally disabled or by the disab led person and the disabled person's spouse; or (3) the surviving spouse of a permanently and totally disabled veteran homesteading a property classified under this paragraph for taxes payable in 2008. Property is classified and assessed under clause (2) only if the government agency or income -providing source certifies, upon the request of the homestead occupant, that the homestead occupant satisfies the disability requirements of this paragraph, and that the property is not eligible for the valuation ex clusion under subdivision 34. Property is classified and assessed under paragraph (b) only if the commissioner of revenue or the county assessor certifies that the homestead occupant satisfies the requirements of this paragraph. Permanently and totally d isabled for the purpose of this subdivision means a condition which is permanent in nature and totally incapacitates the person from working at an occupation which brings the person an income. The first $50,000 market value of class 1b property has a net c lass rate of .45 percent of its market value. The remaining market value of class 1b property has a class rate using the rates for class 1a or class 2a property, whichever is appropriate, of similar market value. (c) Class 1c property is commercial use re al and personal property that abuts public water as defined in section 103G.005, subdivision 15 , and is devoted to temporary and seasonal residential occupancy for recreati onal purposes but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment, and that includes a portion used as a homestead by the owner, which includes a dwelling occupied as a homestead by a shareholder of a corporation that owns the resort, a partner in a partnership that owns the resort, or a member of a limited liability company that owns the resort even if the title to the homestead is held by the corporation, partnership, or limited liability company. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property, excluding the portion used exclusively as a homestead, is used for residential occupancy and a fee is charged for residential occupancy. Class 1c property must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. Class 1c property mus t provide recreational activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill or cross -country ski equipment; provide marina services, launch services, or guide services; or sell bait and fishing tackle. Any unit in wh ich the right to use the property is transferred to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may remain available for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. The portion of the property used as a homestead is class 1a property under paragraph (a). Th e remainder of the property is classified as follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is tier II, and any remaining market value is tier III. The class rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes in which all or a portion of the property was devoted to commercial purposes for not more than 25 0 days in the year preceding the year of assessment desiring classification as class 1c, must submit a declaration to the Anoka County City of Lino Lakes 40 assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of t he assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated as class 1c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are loc ated must be designated as class 3a commercial. The owner of property desiring designation as class 1c property must provide guest registers or other records demonstrating that the units for which class 1c designation is sought were not occupied for more t han 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis n ot directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 1c. (d) Class 1d property includes structures that meet all of the following criteria: (1) the structure is located on property that is classified as agricultural property under section 273.13, subdivision 23 ; (2) the structure is occupied exclusively by seasonal farm workers during the time when they work on that farm, and the occupants are not charged rent for the privilege of occupying the property, provided that use of the structure for storage of farm equipment and produce does not disqualify the property from classification under this paragraph; (3) the structure meets all applicable health and safety requirements for the appropriate season; and (4) the structure is not salable as residential property because it does not comply with local ordinances relating to location in relation to streets or roads. The market value of class 1d property has the same class rates as class 1a property under paragraph (a). Subd. 23.Class 2 . (a) An agricultural homestead consists of class 2a agricultural land that is homesteaded, along with any class 2b rural vacant lan d that is contiguous to the class 2a land under the same ownership. The market value of the house and garage and immediately surrounding one acre of land has the same class rates as class 1a or 1b property under subdivision 22. The value of the remaining l and including improvements up to the first tier valuation limit of agricultural homestead property has a net class rate of 0.5 percent of market value. The remaining property over the first tier has a class rate of one percent of market value. For purposes of this subdivision, the "first tier valuation limit of agricultural homestead property" and "first tier" means the limit certified under section 273.11 , subdivision 23. (b) Clas s 2a agricultural land consists of parcels of property, or portions thereof, that are agricultural land and buildings. Class 2a property has a net class rate of one percent of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a property must also include any property that would otherwise be classified as 2b, but is interspersed with class 2a property, including but not limited to sloughs, wooded wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, and other similar land that is impractical for the assessor to value separately from the rest of the property or that is unlikely to be able to be sold separately from the rest of the property. An assessor may classify the part o f a parcel described in this subdivision that is used for agricultural purposes as class 2a and the remainder in the class appropriate to its use. (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that are unplatted real estate, rural in character and not used for agricultural purposes, including land used for growing trees for timber, lumber, and wood and wood products, that is not improved with a structure. The presence of a minor, ancillary nonresidential structure as d efined by the commissioner of revenue does not disqualify the property from classification under this paragraph. Any parcel of 20 acres or more improved with a structure that is not a minor, ancillary nonresidential structure must be split -classified, and ten acres must be assigned to the split parcel containing the structure. Class 2b property has a net class rate of one percent of market value unless it is Anoka County City of Lino Lakes 41 part of an agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d). (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 acres statewide per taxpayer that is being managed under a forest management plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable fores t resource management incentive program. It has a class rate of .65 percent, provided that the owner of the property must apply to the assessor in order for the property to initially qualify for the reduced rate and provide the information required by the assessor to verify that the property qualifies for the reduced rate. If the assessor receives the application and information before May 1 in an assessment year, the property qualifies beginning with that assessment year. If the assessor receives the appli cation and information after April 30 in an assessment year, the property may not qualify until the next assessment year. The commissioner of natural resources must concur that the land is qualified. The commissioner of natural resources shall annually pro vide county assessors verification information on a timely basis. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph. (e) Agricultu ral land as used in this section means contiguous acreage of ten acres or more, used during the preceding year for agricultural purposes. "Agricultural purposes" as used in this section means the raising, cultivation, drying, or storage of agricultural pro ducts for sale, or the storage of machinery or equipment used in support of agricultural production by the same farm entity. For a property to be classified as agricultural based only on the drying or storage of agricultural products, the products being dr ied or stored must have been produced by the same farm entity as the entity operating the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public Law 99 -198 or a similar state or federal co nservation program if the property was classified as agricultural (i) under this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. Agricultural classification shall not be based upon the market value of any residential s tructures on the parcel or contiguous parcels under the same ownership. (f) Real estate of less than ten acres, which is exclusively or intensively used for raising or cultivating agricultural products, shall be considered as agricultural land. To qualify under this paragraph, property that includes a residential structure must be used intensively for one of the following purposes: (i) for drying or storage of grain or storage of machinery or equipment used to support agricultural activities on other parce ls of property operated by the same farming entity; (ii) as a nursery, provided that only those acres used to produce nursery stock are considered agricultural land; (iii) for livestock or poultry confinement, provided that land that is used only for pastu ring and grazing does not qualify; or (iv) for market farming; for purposes of this paragraph, "market farming" means the cultivation of one or more fruits or vegetables or production of animal or other agricultural products for sale to local markets by th e farmer or an organization with which the farmer is affiliated. (g) Land shall be classified as agricultural even if all or a portion of the agricultural use of that property is the leasing to, or use by another person for agricultural purposes. Classific ation under this subdivision is not determinative for qualifying under section 273.111 . (h) The property classification under this section supersedes, for property tax purposes only, any locally administered agricultural policies or land use restrictions that define minimum or maximum farm acreage. (i) The term "agricultural products" as used in this subdivision includes production for sale of: (1) livestock, dairy animals, dair y products, poultry and poultry products, fur -bearing animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, and apiary products by the owner; (2) fish bred for sale and consumption if the fish breeding occurs on la nd zoned for agricultural use; (3) the commercial boarding of horses if the boarding is done in conjunction with raising or cultivating agricultural products as defined in clause (1); (4) property which is owned and Anoka County City of Lino Lakes 42 operated by nonprofit organizations used for equestrian activities, excluding racing; (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed under section 97A.115 ; (6) insects primarily bred to be used as food for animals; (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold for timber, lumber, wood, or wood products; and (8) maple syrup taken from trees grown by a person licensed by the Minnesota Depart ment of Agriculture under chapter 28A as a food processor. (j) If a parcel used for agricultural purposes is also used for commercial or industrial purposes, including but not limited to: (1) wholesale and retail sales; (2) processing of raw agricultural p roducts or other goods; (3) warehousing or storage of processed goods; and (4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3), the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building whe re horticultural or nursery products are grown that is also used for the conduct of retail sales must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose. (k) The assessor shall determine and list separately o n the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination. (l) Class 2d airport landing area consists of a landing area or public access area of a privately owned public use airport. It has a class rate of one percent of market value. To qualify for classification under this paragraph, a privately owned public use airport must be licensed as a public airport under section 360.018 . For purposes of this paragraph, "landing area" means that part of a privately owned public u se airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying bot h the primary surface and the approach surfaces that comply with all of the following: (i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land tha t contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; (ii) the land is part of the airport property; and (iii) the land is not used for commercial or residential purposes. The land contained in a landing area under this paragraph must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of this paragraph. For purposes of this paragraph, "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport. (m) Class 2e consists of land with a commercial aggregate deposit that is n ot actively being mined and is not otherwise classified as class 2a or 2b, provided that the land is not located in a county that has elected to opt -out of the aggregate preservation program as provided in section 273.1115, subdivision 6 . It has a class rate of one percent of market value. To qualify for classification under this paragraph, the property must be at least ten contiguous acres in size and the owner of the proper ty must record with the county recorder of the county in which the property is located an affidavit containing: (1) a legal description of the property; (2) a disclosure that the property contains a commercial aggregate deposit that is not actively being mined but is present on the entire parcel enrolled; (3) documentation that the conditional use under the county or local zoning ordinance of this property is for mining; and (4) documentation that a permit has been issued by the local Anoka County City of Lino Lakes 43 unit of government or the mining activity is allowed under local ordinance. The disclosure must include a statement from a registered professional geologist, engineer, or soil scientist delineating the deposit and certifying that it is a commercial aggregate deposit. For purpo ses of this section and section 273.1115 , "commercial aggregate deposit" means a deposit that will yield crushed stone or sand and gravel that is suitable for use as a constru ction aggregate; and "actively mined" means the removal of top soil and overburden in preparation for excavation or excavation of a commercial deposit. (n) When any portion of the property under this subdivision or subdivision 22 begins to be actively min ed, the owner must file a supplemental affidavit within 60 days from the day any aggregate is removed stating the number of acres of the property that is actively being mined. The acres actively being mined must be (1) valued and classified under subdivisi on 24 in the next subsequent assessment year, and (2) removed from the aggregate resource preservation property tax program under section 273.1115 , if the land was enrolled in that program. Copies of the original affidavit and all supplemental affidavits must be filed with the county assessor, the local zoning administrator, and the Department of Natural Resources, Division of Land and Minerals. A supplemental affidavit must be filed each time a subsequent portion of the property is actively mined, provided that the minimum acreage change is five acres, even if the actual mining activity constitutes less than five acres. (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do not apply. Subd . 24.Class 3 . (a) Commercial and industrial property and utility real and personal property is class 3a. (1) Except as otherwise provided, each parcel of commercial, industrial, or utility real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent of the remaining market value. In the case of contiguous parcels of property owned by the same person or entity, only the value equal to the first -tier value of the contiguous parcels qualifies for the reduced class rate, exce pt that contiguous parcels owned by the same person or entity shall be eligible for the first -tier value class rate on each separate business operated by the owner of the property, provided the business is housed in a separate structure. For the purposes o f this subdivision, the first tier means the first $150,000 of market value. Real property owned in fee by a utility for transmission line right -of -way shall be classified at the class rate for the higher tier. For purposes of this subdivision, parcels are considered to be contiguous even if they are separated from each other by a road, street, waterway, or other similar intervening type of property. Connections between parcels that consist of power lines or pipelines do not cause the parcels to be contiguo us. Property owners who have contiguous parcels of property that constitute separate businesses that may qualify for the first -tier class rate shall notify the assessor by July 1, for treatment beginning in the following taxes payable year. (2) All persona l property that is: (i) part of an electric generation, transmission, or distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; and (iii) not described in clause (3), and all railro ad operating property has a class rate as provided under clause (1) for the first tier of market value and the remaining market value. In the case of multiple parcels in one county that are owned by one person or entity, only one first tier amount is eligi ble for the reduced rate. (3) The entire market value of personal property that is: (i) tools, implements, and machinery of an electric generation, transmission, or distribution system; (ii) tools, implements, and machinery of a pipeline system transportin g or distributing water, gas, crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings, has a class rate as provided under clause (1) for the remaining market value in excess of the first tier. (b) Employment property defined in section 469.166 , during the period provided in section 469.170 , shall constitute class Anoka County City of Lino Lakes 44 3b. The class rates for class 3b property are determined under paragraph (a). Subd. 24a. [Repealed, 1Sp2001 c 5 a rt 3 s 96 ] Subd. 25.Class 4 . (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qu alifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56 , othe r than hospitals exempt under section 272.02 , and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25 percent. (b) Class 4b includes: (1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational property; (2) manufactured ho mes not classified under any other provision; (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units; and (4) unimproved property that is classified r esidential as determined under subdivision 33. The market value of class 4b property has a class rate of 1.25 percent. (c) Class 4bb includes: (1) nonhomestead residential real estate containing one unit, other than seasonal residential recreational proper ty; and (2) a single family dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b). Class 4bb property has the same class rates as class 1a property under subdivision 22. Property that h as been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb. (d) Class 4c property includes: (1) except as provided in subdiv ision 22, paragraph (c), real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes, including real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes and no t devoted to commercial purposes for more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupanc y, and a fee is charged for residential occupancy. Class 4c property under this clause must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. Class 4c property under this clause must provide recreational activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or cross -country ski equipment; provide marina services, lau nch services, or guide services; or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c under this clause regardless of the term of the rental agreement, as lon g as the use of the camping pad does not exceed 250 days. In order for a property to be classified as class 4c, seasonal residential recreational for commercial purposes under this clause, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (ii) at least 20 percent of the an nual gross receipts must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or cross - country ski equipment, or charges for marina services, launch services, and guide services, or the sale of bait and fishing tackle. For pur poses of this determination, a paid booking of five or more nights shall be counted as two bookings. Class 4c property classified under this clause also includes commercial use real property used exclusively for recreational purposes in conjunction with ot her class 4c property classified under this clause and devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial Anoka County City of Lino Lakes 45 recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. Owners of real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes and all or a portion of which was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 4c, must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated class 4c under this clause as otherwise provided. The remai nder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 4c property under this clause must provide guest registers or other records demo nstrating that the units for which class 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 4c; (2) qualified property used as a golf c ourse if: (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and (ii) it meets the requirements of section 273.112, subdivision 3 , paragraph (d). A structure used as a clubhouse, restaurant, or place of r efreshment in conjunction with the golf course is classified as class 3a property; (3) real property up to a maximum of three acres of land owned and used by a nonprofit community service oriented organization and not used for residential purposes on eithe r a temporary or permanent basis, provided that: (i) the property is not used for a revenue -producing activity for more than six days in the calendar year preceding the year of assessment; or (ii) the organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes and the property is allowed to be used for public and community meetings or events for no charge, as appropriate to the size of the facility. For purposes of this clause, (A) "charit able contributions and donations" has the same meaning as lawful gambling purposes under section 349.12, subdivision 25 , excluding those purposes relating to the payment of tax es, assessments, fees, auditing costs, and utility payments; (B) "property taxes" excludes the state general tax; (C) a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized a nd operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal Revenue Code; and (D) "revenue -producing activi ties" shall include but not be limited to property or that portion of the property that is used as an on -sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for -profit enterprise on the premises. Any portion of the property not qualifying under eith er item (i) or (ii) is class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be consi dered a revenue -producing activity. The organization shall maintain records of its charitable contributions and donations and of public meetings and events held on the property and make them available upon request any time to the assessor to ensure eligibi lity. An organization meeting the requirement under item (ii) must file an application Anoka County City of Lino Lakes 46 by May 1 with the assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform application form and instructions; (4) postsecon dary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on -campus housing or housing located within two miles of the border of a college campus; (5) manufactured home parks as defined in section 327.14, subdivision 3 ; (6) real property that is actively and exclusively devoted to indoo r fitness, health, social, recreational, and related uses, is owned and operated by a not -for -profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2 ; (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2 , and the land on which it is l ocated, provided that: (i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, pr ohibits commercial activity performed at the hangar. If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sal e; (8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2 , and the land on which it is located, provided that: (i) the land a buts a public airport; and (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and (9) residential real estate, a p ortion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met: (i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days; (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate; (iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessmen t; and (iv) the owner is the operator of the property. The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess of five, must be valued and assessed as class 3a. The por tion of the property used for purposes of a homestead by the owner must be classified as class 1a property under subdivision 22; (10) real property up to a maximum of three acres and operated as a restaurant as defined under section 157.15, subdivision 12 , provided it: (A) is located on a lake as defined under section 103G.005, subdivision 15 , pa ragraph (a), clause (3); and (B) is either devoted to commercial purposes for not more than 250 consecutive days, or receives at least 60 percent of its annual gross receipts from business conducted during four consecutive months. Gross receipts from the s ale of alcoholic beverages must be included in determining the property's qualification under subitem (B). The property's primary business must be as a restaurant and not as a bar. Gross receipts from gift shop sales located on the premises must be exclude d. Owners of real property desiring 4c classification under this clause must submit an annual declaration to the assessor by February 1 of the current assessment year, based on the property's relevant information for the preceding assessment year; and (11 ) lakeshore and riparian property and adjacent land, not to exceed six acres, used as a marina, as defined in section 86A.20, subdivision 5 , which is made accessible to the publ ic and devoted to recreational use for marina services. The marina owner must annually provide evidence to the assessor that it provides services, including lake or river access to the public. No more than 800 feet of lakeshore may be included in this clas sification. Buildings used in conjunction with a marina for marina services, including but not limited to buildings used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified as class 3a property. Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of seasonal residential recreational property not Anoka County City of Lino Lakes 47 used for commercial purposes has the same class rates as class 4bb property, (ii) manufactured home parks asse ssed under clause (5) have the same class rate as class 4b property, (iii) commercial -use seasonal residential recreational property and marina recreational land as described in clause (11), has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, an d (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent. (e) Class 4d property is qualifying low -income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3 . If only a portion of the units in the building qualify as low -income rental housing units as certified under section 273.128, subdivision 3 , only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the asse ssor based upon its use. Class 4d also includes the same proportion of land as the qualifying low -income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor mus t be based on the normal approach to value using normal unrestricted rents. Class 4d property has a class rate of 0.75 percent. Subd. 25a.Elderly assisted living facility property . "Elderly assisted living facility property" means residential real estate containing more than one unit held for use by the tenants or lessees as a residence for periods of 30 days or more, along with community rooms, lounges, activity rooms, and related facilities, designed to meet the housing, health, and financial security n eeds of the elderly. The real estate may be owned by an individual, partnership, limited partnership, for -profit corporation or nonprofit corporation exempt from federal income taxation under United States Code, title 26, section 501(c)(3) or related secti ons. An admission or initiation fee may be required of tenants. Monthly charges may include charges for the residential unit, meals, housekeeping, utilities, social programs, a health care alert system, or any combination of them. On -site health care may b e provided by in -house staff or an outside health care provider. The assessor shall classify elderly assisted living facility property, depending upon the property's ownership, occupancy, and use. The applicable class rates shall apply based on its classif ication, if taxable. Subd. 26. [Repealed, 1987 c 268 art 6 s 53 ] Subd. 27. [Repealed, 1987 c 268 art 6 s 53 ] Subd. 28. [Repealed, 1987 c 268 art 6 s 53 ] Subd. 29. [Repealed, 1987 c 268 art 6 s 53 ] Subd. 30. [Repealed, 1988 c 719 art 5 s 81 ] Subd. 31.Class 5. Class 5 property includes: (1) unmined iron ore and low -grade iron -bearing formations as defined in section 273.14 ; and (2) all other property not otherwise classified. Class 5 property has a class rate of 2.0 percent of market value. Subd. 32. [Repeal ed, 1998 c 389 art 2 s 21 ] Subd. 33.Classification of unimproved property . (a) All real property that is not improved with a structure must be classified according to it s current use. (b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is not improved with a structure and for which there is no identifiable current use must be classified according to its highest and best use permitted under t he local zoning ordinance. If the ordinance permits more than one use, the land must be classified according to the highest and best use permitted under the ordinance. If no such ordinance exists, the assessor shall consider the most likely potential use o f the unimproved land based upon the use made of surrounding land or land in proximity to the unimproved land. Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value of Anoka County City of Lino Lakes 48 property owned by a veteran or by the veteran and the vetera n's spouse qualifying for homestead classification under subdivision 22 or 23 is excluded in determining the property's taxable market value if it serves as the homestead of a military veteran, as defined in section 197.447 , who has a service -connected disability of 70 percent or more. To qualify for exclusion under this subdivision, the veteran must have been honorably discharged from the United States armed forces, as indicated by United States Government Form DD214 or other official military discharge papers, and must be certified by the United States Veterans Administration as having a service -connected disability. (b)(1) For a disability rating of 70 percent or more, $150,00 0 of market value is excluded, except as provided in clause (2); and (2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded. (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause (2 ), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds the legal or beneficial title to the homestead and permanently resides there, the exclusion shall carry over to the benefit of the veteran's spouse for one additiona l assessment year or until such time as the spouse sells, transfers, or otherwise disposes of the property, whichever comes first. (d) In the case of an agricultural homestead, only the portion of the property consisting of the house and garage and immedia tely surrounding one acre of land qualifies for the valuation exclusion under this subdivision. (e) A property qualifying for a valuation exclusion under this subdivision is not eligible for the credit under section 273.1384, subdivision 1 , or classification under subdivision 22, paragraph (b). (f) To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by July 1 of each assess ment year, except that an annual reapplication is not required once a property has been accepted for a valuation exclusion under paragraph (b), clause (2), and the property continues to qualify until there is a change in ownership. History: (1993 ) 1913 c 483 s 1 ; 1923 c 140 ; 1933 c 132 ; 1933 c 359 ; 1937 c 365 s 1 ; Ex1937 c 86 s 1 ; 1939 c 48 ; 1941 c 436 ; 1941 c 437 ; 1941 c 438 ; 1943 c 172 s 1 ; 1943 c 648 s 1 ; 1945 c 274 s 1 ; 1945 c 527 s 1 ; 1947 c 537 s 1 ; 1949 c 723 s 1 ; 1951 c 510 s 1 ; 1951 c 585 s 1 ; 1953 c 358 s 1 ,2; 1953 c 400 s 1 ; 1953 c 747 s 1 ,2; 1955 c 751 s 1 ,2; 1957 c 866 s 1 ; 1957 c 959 s 1 ; 1959 c 40 s 1 ; 1959 c 338 s 1 ; 1959 c 541 s 1 ; 1959 c 562 s 3 ; Ex1959 c 70 art 1 s 2 ; 1961 c 243 s 1 ; 1961 c 322 s 1 ; 1961 c 340 s 3 ; 1961 c 475 s 1 ; 1961 c 710 s 1 ; 1963 c 426 s 1 ; 1965 c 259 s 1 ; 1967 c 606 s 1 ; Ex1967 c 32 art 1 s 2 -4; art 4 s 1; art 9 s 1,2; 1969 c 251 s 1 ; 1969 c 399 s 49 ; 1969 c 407 s 1 ; 1969 c 417 s 1 ; 1969 c 422 s 1 ,2; 1969 c 709 s 4 ,5; 1969 c 760 s 1 ; 1969 c 763 s 1 ; 1969 c 965 s 2 ; 1969 c 1126 s 2; 1969 c 1128 s 1,2; 1969 c 1132 s 1; 1969 c 1137 s 1; 1971 c 226 s 1 ; 1971 c 427 s 3 -12,16,17; 1971 c 747 s 1 ; 1971 c 7 91 s 1 ; 1971 c 797 s 3 ,4; Ex1971 c 31 art 9 s 1 ; art 22 s 1,2,4,6,7,8; Ex1971 c 31 art 36 s 1 ; 1973 c 355 s 1 ,2; 1973 c 456 s 1 ; 1973 c 492 s 14 ; 1973 c 582 s 3 ; 1973 c 590 s 1 ; 1973 c 650 art 14 s 1 ,2; art 20 s 3; art 24 s 3; 1973 c 774 s 1 ; 1974 c 545 s 3 ; 1974 c 556 s 16 ; 1975 c 46 s 3 ; 1975 c 339 s 9 ; 1975 c 359 s 23 ; 1975 c 376 s 1 ; 1975 c 395 s 1 ; 1975 c 437 art 1 s 25 ,27,28; 1976 c 2 s 96 ,159 -161,170; 1976 c 181 s 2 ; 1976 c 245 s 1 ; 1977 c 319 s 1 ,2; 1977 c 347 s 43 ,44; 1977 c 423 art 3 s 5 -8; 1978 c 767 s 7 -11; 1979 c 303 art 2 s 11 -17; art 10 s 5; 1979 c 334 art 1 s 25 ; 1980 c 437 s 5 ; 1980 c 562 s 1 ; 1980 c 607 art 2 s 7 -15; art 4 s 4; 1981 c 188 s 1 ; 1981 c 356 s 248 ; 1981 c 365 s 9 ; 1Sp1981 c 1 art 2 s 7 -11; art 5 s 2; 1Sp1981 c 3 s 1 ; 1Sp1981 c 4 art 2 s 27 ; 2Sp1981 c 1 s 6 ; 3Sp1981 c 1 art 1 s 2 ; 1982 c 523 art 6 s 1 ; art 14 s 1; art 23 s 2; 1982 c 642 s 9 ; 1983 c 216 art 1 s 43 ,44; 1983 c 222 s 11 -13; 1983 c 342 art 2 s 9 -18; art 8 s 1; 1984 c 502 art 3 s 9 -14; art 7 s 1,2; 1984 c 522 s 2 ; 1984 c 593 s 22 -28; 1984 c 654 art 5 s 58 ; 1985 c 248 s 70 ; 1985 c 300 s 6 ; 1Sp1985 c 14 art 3 s 5 -12; art 4 s 45 -56; 1986 c 444 ; 1Sp1986 c 1 art 4 s 18 -21; 1987 c 268 art 5 s 4 ; art 6 s 18,20 -23; 1987 c 291 s 208 -209; 1987 c 384 art 1 s 25 ; 1988 c 719 art 5 s 13 -19; 1989 c 277 art 2 s 28 ,29; 1989 c 304 s 137 ; 1Sp1989 c 1 ar t 2 s 1 - 8,11; 1990 c 480 art 7 s 7 ; 1990 c 604 art 3 s 16 -19; 1991 c 249 s 31 ; 1991 c 291 art 1 s 20 -25; 1992 c 363 art 1 s 12 ; 1992 c 511 art 2 s 17 ,18; art 4 s 4,5; 1993 c 224 art 1 s 27 ; 1993 c 375 art 3 s 16 ; art 5 s 23 -26; 1994 c 416 art 1 s 18 ,19; 1994 c 483 s 1 ; 1994 c 587 art 5 s 10 ,11; 1995 c 264 art 3 s 9 ,10; 1996 c 471 art 3 s 10 -12; 1997 c 231 art 1 s 6 -10; art 2 s 20,21; 3Sp1997 c 3 s 28 ; 1998 c 254 ar t 1 s 74 ; 1998 c 389 art 2 s 8 -12; 1999 c 243 art 5 s 15 -20; 1999 c 248 s 18 ; 1999 c 249 s 22 ; 2000 c 490 art 5 s 12 ,13; 1Sp2001 c 5 art 3 s 32 -36; 2002 c 377 art 4 s 1 6 ,17; art 10 s 6; 2003 c 127 art 2 s 13 ,14; art 5 s 17; 2003 c 128 art 3 s 45 ; 1Sp2003 c 21 art 4 s 4 ; 2005 c 151 art 3 s 12 ; 1Sp2005 c 3 art 1 s 15 ,16; 2006 c 259 art 4 s 13 ; art 5 s 1,2; 2008 c 154 art 2 s 11 -14; 2008 c 366 art 6 s 26 -28; art 11 s 13; art 15 s 14,15; 2009 c 12 art 2 s 6 ; 2009 c 88 art 2 s 18 ; art 10 s 6 -8 NOTE: The amendment to subdivision 22 by Laws 2008, chapter 154, article 2, section 11, is effect ive for taxes payable in 2010 and thereafter, except the amendments to paragraph (b) and to the portions of paragraph (c) decreasing the class rate and increasing the market value of the first tier of class 1c Anoka County City of Lino Lakes 49 homestead resorts are effective for taxes paya ble in 2009 and thereafter. Laws 2008, chapter 154, article 2, section 11, the effective date, and Laws 2008, chapter 366, article 6, section 44. NOTE: The amendment to subdivision 23 by Laws 2008, chapter 366, article 6, section 26, is effective for taxe s payable in 2010 and thereafter, except the portions of subdivision 23 reducing the agricultural class rate, expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural products" in paragraph (h), and relating to managed forest land in paragraph (d), are effective for taxes payable in 2009 and thereafter. Laws 2008, chapter 366, article 6, section 26, the effective date. NOTE: The amendment to subdivision 25 by Laws 2008, chapter 154, article 2, section 13, relating to class 4c resorts in paragraph (d), clause (1), is effective for assessment year 2009 and thereafter, for taxes payable in 2010 and thereafter. Laws 2008, chapter 154, article 2, section 13, the effective date. NOTE: The amendment to subdivision 33 by Laws 2008, ch apter 366, article 6, section 28, is effective for taxes payable in 2010 and thereafter. Laws 2008, chapter 366, article 6, section 28, the effective date. NOTE: The amendment to subdivision 23 by Laws 2009, chapter 12, article 2, section 6, is effective for assessments in 2010 for taxes payable in 2011, and thereafter. Laws 2009, chapter 12, article 2, section 6, the effective date. Anoka County City of Lino Lakes 50 273.20 ASSESSOR MAY ENTER DWELLINGS, BUILDINGS, OR STRUCTURES. Any officer authorized by law to assess property for ta xation may, when necessary to the proper performance of duties, enter any dwelling -house, building, or structure, and view the same and the property therein. Any officer authorized by law to assess property for ad valorem tax purposes shall have reasonabl e access to land and structures as necessary for the proper performance of their duties. A property owner may refuse to allow an assessor to inspect their property. This refusal by the property owner must be either verbal or expressly stated in a letter to the county assessor. If the assessor is denied access to view a property, the assessor is authorized to estimate the property's estimated market value by making assumptions believed appropriate concerning the property's finish and condition. History : (1997 ) RL s 814 ; 1986 c 444 ; 1999 c 243 art 5 s 24 Anoka County City of Lino Lakes 51 274.01 BOARD OF APPEAL AND EQUALIZATION. Subdivision 1. Ordin ary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other governing body of a city, is the board of appeal and equalization except (1) in cities whose charters provide for a board of equalization or (2) in any city o r town that has transferred its local board of review power and duties to the county board as provided in subdivision 3. The county assessor shall fix a day and time when the board or the board of equalization shall meet in the assessment districts of the county. Notwithstanding any law or city charter to the contrary, a city board of equalization shall be referred to as a board of appeal and equalization. On or before February 15 of each year the assessor shall give written notice of the time to the city o r town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must be held between April 1 and May 31 each year. The clerk shall give published and posted notice of the meeting at least ten days before the date of the meeting. T he board shall meet at the office of the clerk to review the assessment and classification of property in the town or city. No changes in valuation or classification which are intended to correct errors in judgment by the county assessor may be made by the county assessor after the board has adjourned in those cities or towns that hold a local board of review; however, corrections of errors that are merely clerical in nature or changes that extend homestead treatment to property are permitted after adjournm ent until the tax extension date for that assessment year. The changes must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during this period in those cities or towns t hat hold a local board of review must be sent to the county board no later than December 31 of the assessment year.(b) The board shall determine whether the taxable property in the town or city has been properly placed on the list and properly valued by th e assessor. If real or personal property has been omitted, the board shall place it on the list with its market value, and correct the assessment so that each tract or lot of real property, and each article, parcel, or class of personal property, is entere d on the assessment list at its market value. No assessment of the property of any person may be raised unless the person has been duly notified of the intent of the board to do so. On application of any person feeling aggrieved, the board shall review the assessment or classification, or both, and correct it as appears just. The board may not make an individual market value adjustment or classification change that would benefit the property if the owner or other person having control over the property has refused the assessor access to inspect the property and the interior of any buildings or structures as provided in section 273.20 .(c) A local board may reduce assessments upon petit ion of the taxpayer but the total reductions must not reduce the aggregate assessment made by the county assessor by more than one percent. If the total reductions would lower the aggregate assessments made by the county assessor by more than one percent, none of the adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation.(d) A local board does not have authority to grant an exemption or to order prope rty removed from the tax rolls.(e) A majority of the members may act at the meeting, and adjourn from day to day until they finish hearing the cases presented. The assessor shall attend, with the assessment books and papers, and take part in the proceeding s, but must not vote. The county assessor, or an assistant delegated by the county assessor shall attend the meetings. The board shall list separately, on a form appended to the assessment book, all omitted property added to the list by the board and all i tems of property increased or decreased, with the market value of each item of property, added or changed by the board, placed opposite the item. The county assessor shall enter all changes made by the board in the assessment book.(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, or by written communication before the board after being duly notified of the board's intent to raise the assessment of the property, or if a person feeling aggrieved by an assessment or cl assification fails to apply for a review of the assessment or classification, the person may not appear before the county board of appeal and equalization for a review of the assessment or classification. This paragraph does not apply if an assessment was made after the local board meeting, as provided in section 273.01 , or if the person can establish not having received notice of market value at least five days before the local boar d meeting.(g) The local board must complete its work and adjourn within 20 days from the time of convening stated in the notice of the clerk, unless a longer period is approved by the commissioner of revenue. No action taken after that date is valid. All c omplaints about an assessment or classification made after the meeting of the board must be heard and determined by the county board of equalization. A nonresident may, at any time, before the meeting of the board file written objections to an assessment o r classification with the county assessor. The objections must be presented to the board at its meeting by the county assessor for its consideration. Subd. 2. Special board; duties delegated. The governing body of a city, including a city whose charter provides for a board of equalization, may appoint a special board of review. The city may delegate to the special board of review all of the powers and duties in subdivision 1. The special board of review shall serve at the direction and discretion of the appointing body, subject to the restrictions imposed by law. The appointing body shall determine the number of members of the board, the compensation and expenses to be paid, and the term Anoka County City of Lino Lakes 52 of office of each member. At least one member of the special board of review must be an appraiser, realtor, or other person familiar with property valuations in the assessment district. Subd. 3. Local board duties transferred to county. The town board of any town or the governing body of any home rule charter or statu tory city may transfer its powers and duties under subdivision 1 to the county board, and no longer perform the function of a local board. Before the town board or the governing body of a city transfers the powers and duties to the county board, the town b oard or city's governing body shall give public notice of the meeting at which the proposal for transfer is to be considered. The public notice shall follow the procedure contained in section 13D.04, subdivision 2 . A transfer of duties as permitted under this subdivision must be communicated to the county assessor, in writing, before December 1 of any year to be effective for the following year's assessment. This transfe r of duties to the county may either be permanent or for a specified number of years, provided that the transfer cannot be for less than three years. Its length must be stated in writing. A town or city may renew its option to transfer. The option to trans fer duties under this subdivision is only available to a town or city whose assessment is done by the county. History: (2034) RL s 847; 1941 c 402 s 1; 1945 c 402 s 1; 1949 c 543 s 1; Ex1967 c 32 art 8 s 3; 1971 c 434 s 3; 1971 c 564 s 6; 1973 c 123 art 5 s 7; 1973 c 150 s 1; 1973 c 582 s 3; 1975 c 339 s 5; 1977 c 434 s 11; 1986 c 444; 1987 c 229 art 4 s 1; 1987 c 268 art 7 s 37; 1988 c 719 art 7 s 8; 1990 c 480 art 7 s 14; 1995 c 264 art 3 s 13; 1997 c 231 art 2 s 23; 1998 c 254 art 1 s 77; 1999 c 243 art 5 s 25; 1Sp2001 c 5 art 7 s 21; 2003 c 127 art 5 s 22; 1Sp2005 c 3 art 1 s 18 Anoka County City of Lino Lakes 53 274.014 LOCAL BOARDS; APPEALS AND EQUALIZATION COURSE AND MEETING REQUIREMENTS. Subdivision 1. Handbook for local boards. By no later than January 1, 2005, the commissio ner of revenue must develop a handbook detailing procedures, responsibilities, and requirements for local boards of appeal and equalization. The handbook must include, but need not be limited to, the role of the local board in the assessment process, the l egal and policy reasons for fair and impartial appeal and equalization hearings, local board meeting procedures that foster fair and impartial assessment reviews and other best practices recommendations, quorum requirements for local boards, and explanatio ns of alternate methods of appeal. Subd. 2. Appeals and equalization course. Beginning in 2006, and each year thereafter, there must be at least one member at each meeting of a local board of appeal and equalization who has attended an appeals and equal ization course developed or approved by the commissioner within the last four years, as certified by the commissioner. The course may be offered in conjunction with a meeting of the Minnesota League of Cities or the Minnesota Association of Townships. The course content must include, but need not be limited to, a review of the handbook developed by the commissioner under subdivision 1. Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts local boards of appeal and equaliz ation meetings must provide proof to the county assessor by December 1, 2006, and each year thereafter, that it is in compliance with the requirements of subdivision 2. Beginning in 2006, this notice must also verify that there was a quorum of voting membe rs at each meeting of the board of appeal and equalization in the current year. A city or town that does not comply with these requirements is deemed to have transferred its board of appeal and equalization powers to the county beginning with the following year's assessment and continuing unless the powers are reinstated under paragraph (c).(b) The county shall notify the taxpayers when the board of appeal and equalization for a city or town has been transferred to the county under this subdivision and, pri or to the meeting time of the county board of equalization, the county shall make available to those taxpayers a procedure for a review of the assessments, including, but not limited to, open book meetings. This alternate review process shall take place in April and May.(c) A local board whose powers are transferred to the county under this subdivision may be reinstated by resolution of the governing body of the city or town and upon proof of compliance with the requirements of subdivision 2. The resolution and proofs must be provided to the county assessor by December 1 in order to be effective for the following year's assessment. History: 2003 c 127 art 2 s 16; 2005 c 151 art 5 s 25,26 Anoka County City of Lino Lakes 54 Appraisal Terminology CLASSIFICATION The class that a type of proper ty is assigned. A property's classification is based upon the existing use of the property. If the land is vacant and there is no identifiable use, the proper classification would be the most probable use of the land, which would most likely be determine d by the zoning classification. CLASSIFICATION RATES The class rate assigned to a particular classification of property. Classification rates are established by the state legislature. Class rates are the same upon the same class of property throughout Minnesota. COEFFICIENT OF DISPERSION Average deviation of a group of numbers from the median, expressed as a percentage of the median. COEFFICIENT OF VARIATION Standard deviation expressed as a percentage of the mean. COMPARABLES (COMPARABLE SALES) R ecently sold properties that are similar in important respects to a property being appraised to assist in estimating the value of a specific property. COST APPROACH That approach in appraisal analysis which is based on the proposition that the informed p urchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market. DEPRECIATION A loss of utility and, hence, value from any cause. An effect caused by de terioration and/or obsolescence. Deterioration or physical depreciation is evidenced by wear and tear, decay, dry rot, cracks, encrustational or structural defects. Obsolescence is divisible into two parts, functional and economic. Functional obsolescen ce may be due to poor floor plan, mechanical inadequacy or over adequacy, functional inadequacy or over adequacy due to size, style, age, etc. It is evidenced by conditions within the property. Economic obsolescence is caused by changes external to the p roperty, such as neighborhood infiltrations of inharmonious groups or property uses, legislation, etc. It is also the actual decline in market value of the improvement to land from time of purchase to the time of resale.  CURABLE DEPRECIATION Those items of physical deterioration and functional obsolescence which are economically feasible to cure and hence are customarily repaired or replaced by a prudent property owner. The estimate of this depreciation is usually computed as a dollar amount of the cost -to -cure.  INCURABLE DEPRECIATION Elements of physical deterioration or functional obsolescence which either cannot be corrected; or, if possible to correct, cannot be corrected except at a cost in excess of their contribution to the value of the property . PHYSICAL DEPRECIATION A reduction in utility resulting from an impairment of physical condition. For purposes of appraisal analysis, it is most common and convenient to divide physical deterioration into curable and incurable components.  PHYSICAL CUR ABLE DEPRECIATION Physical deterioration which the prudent buyer would anticipate correction upon purchase of the property. The cost of effecting Anoka County City of Lino Lakes 55 the correction or cure would be no more than the anticipated addition to utility, and hence ultimately to va lue, associated with the cure.  PHYSICAL INCURABLE DEPRECIATION Physical deterioration which in terms of market conditions as of the date of the appraisal is not feasible or economically justified to correct. The cost of correcting the condition or effec ting a cure is estimated to be greater than the anticipated increase in utility, and hence ultimately in value of the property that will result from correcting or curing the condition. FUNCTIONAL DEPRECIATION Impairment of functional capacity or efficien cy. Functional obsolescence reflects the loss in value brought about by such factors as overcapacity, inadequacy and changes in the art, that affect the property item itself or its relation with other items comprising a larger property. The inability of a structure to perform adequately the function for which it is currently employed.  FUNCTIONAL CURABLE DEPRECIATION Functional obsolescence which may be corrected or cured when the cost of replacing the outmoded or unaccep -table component is at least offse t by the anticipated increase in utility, and hence ultimately in value, resulting from the replacement.  FUNCTIONAL INCURABLE DEPRECIATION Functional obsolescence that results from structural deficiencies or superadequacies that the prudent purchaser or owner would not be justified in replacing, adding or removing, because the cost of effecting a cure would be greater than the anticipated increase in utility resulting from the replacement, addition or removal. ECONOMIC OBSOLESCENCE Impairment of desirab ility or useful life arising from factors external to the property, such as economic forces of environmental changes which affect supply -demand relationships in the market. Loss in the use and value of a property arising from the factors of economic obsol escence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent to the property. Also referred to as Locational or Environmental Obsolescence. EASEMENT A right held by one person to u se the land of another for a specific purpose such as access to other property. EQUALIZATION The adjustment of estimated market valuation of real property in a particular area to establish a more equitable division of the total tax burden within the area . ESTIMATED MARKET VALUE Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well informed buyer would pay a well informed seller for a property without either party being u nduly forced to buy or sell. In other words, what the property would likely sell for if it were to be sold in an arm's length transaction. Although the sale price of a property often reflects the market value; market value and sale price are not always synonymous. GRADING OF PROPERTY The process used by an appraiser to identify the quality of construction in the physical structure. HIGHEST AND BEST USE That reasonable and probable use that will support the highest present value, as defined, as of the effective date of an appraisal. Anoka County City of Lino Lakes 56 HOMESTEAD For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their home as their primary place of residence. Hom estead is a fact question which may require the assessor to utilize a number of indicators to determine if it is being appropriately claimed. Although factors such as mailing address and drivers license may sometimes be useful indicators to determine wher e a person lives, in the final analysis, the question comes down to, "Is the residence occupied as the applicant's primary place of residence ?" In other words, do they actually live there? If the answer is no, no amount of supporting documentation such as voter registrations or mailing addresses can alter the fact. IMPROVED LAND Land having either on -site improvements, off -site improvements or both. I MPROVEMENT A structure or building permanently attached to the land. INCOME APPROACH That procedur e in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied in appraising income -producing properties. Anticipated futu re income and/or revisions are discounted to a present worth figure through the capitalization process. INDEX OF REGRESSION Mean assessment ratio divided by the sales weighted -aggregate ratio. LEGAL DESCRIPTION A statement containing a designation by wh ich land is identified according to a system set up by law or approved by law. LIMITED MARKET VALUE A limitation which is imposed on how much the taxable value of certain classes of property (agricultural homestead or nonhomestead, residential homestead or nonhomestead, noncommercial seasonal recreational residential) can increase over the preceding year's value. This limit does not apply to an increase in your value due to improvement made to the property. MARKET APPROACH Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value i n a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reli ability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of comparability or extent of adjustment necessary for time differences; and (d) the absence of non -typical co nditions affecting the sale price. MASS APPRAISING A method used in revaluation of a community for tax purposes. As the term implies, it is a method of appraising a large number of properties at one time by adopting standard techniques, and giving due c onsideration to the appraisal process so that uniformity or equality of values may be achieved between all properties. MEAN ASSESSMENT RATIO Total of ratios divided by number of properties. MEDIAN ASSESSMENT RATIO Middle assessment ratio or the average o f the two middle terms when the ratios are lined up from low to high. Anoka County City of Lino Lakes 57 METES AND BOUNDS A description of a parcel of land by reference to the courses (bearings, that is, the angles East or West of due North and due South) and distances (usually feet or ch ains) of each straight line which forms its boundary, with one of the corners tied to an established point; that is, the bearing and distance from an established point, such as a section corner or to the intersection of the center lines of two roads, etc. If one part of the boundary is on a curve, this part is described by showing the number of degrees of the central angle subtended by the curve (arc), the length of the radius and the length along the curve. MODE Assessment -ratio that appears most frequen tly. NET TAX CAPACITY New for payable 1990. Is used to extend taxes in accordance to multiplying the market value by the appropriate class rate. OBSOLESCENCE One of the causes of depreciation. It is the impairment of desirability and usefulness bro ught about by new inventions, current changes in design and improved processes for production, or from external influencing factors, which make a property less desirable and valuable for a continued use. Obsolescence may be either economic or functional. PARCEL A piece of land, regardless of size in one ownership. PROPERTY CLASS The class that has been assigned to the property based upon the use of the property. PROPERTY IDENTIFICATION NUMBER A geographically related parcel numbering system. The num ber contains twelve digits made up of section, township, range, quarter -quarter and parcel. The first six digits, based on the public land survey, geographically locate the section in which the property is located. The next two digits will designate in w hich quarter -quarter the property is located. The ninth through twelfth digits indicate the parcel within the quarter -quarter. The parcels will be numbered consecutively beginning with 0001. When a division is made, the next consecutive available number (s) will be assigned, and the old number(s) will be retained for historical data. RANGE Difference between the high sales ratio and the low sales ratio. REVALUATION The mass appraisal of all property within an assessment jurisdiction to obtain equalizat ion of estimated market values. Reappraisal of a former assessment. SALES ASSESSMENT RATIO The ratio derived by dividing the estimated market value by the selling price. AGGREGATE RATIO The ratio determined by dividing the total estimated market value of all sales by the total selling prices. AVERAGE MEAN The total of all the ratios in a given set divided by the number of items in the set. MEDIAN RATIO The value of the middle item where an odd number of items are arranged (arrayed) according to siz e, or the arithmetic average of the two central items if there is an even number of items. It is a positional average and is not affected by the size of extreme values. Anoka County City of Lino Lakes 58 SALES WEIGHTED AGGREGATE RATIO Total of assessment values divided by total of selling price. SAMPLE SUFFICIENCY GAUGE Square root of half the range divided by the number of properties. SPECIAL ASSESSMENT A charge made by government against real estate to defray the cost of making a public improvement adjacent to the property which, whil e of general community benefit, is of special benefit to the property so assessed. STANDARD DEVIATION Square root of total of squared deviations from mean divided by number of properties. TAX CAPACITY RATE (Local Tax Rate): Determined by dividing a tax ing district's property tax levy by the taxing district's total net tax capacity. The tax capacity rate is expressed as a percentage of net tax capacity. TOPOGRAPHY The contour of land surface, i.e., flat, rolling, mountainous, etc. TRUTH IN TAXATION Provides taxpayers with a pr eliminary property tax notifica tion if any taxing district proposes to increase taxes through proposed budget increases. Included on the notification is the market value, classification, a proposed tax by taxing district, and time and place of taxing district budget hearings. UNIMPROVED LAND Land without buildings, in its natural state. VACANT LAND Land without buildings. May or may not have improvements such as grading, sewer, etc. VALUE EXEMPTION FOR CERTAIN IMPROVEMENT S (THIS OLD HOUSE) Qualifying homes, 35 years or older, were previously eligible to receive a temporary exemption on all or a portion of the assessor's estimated value for certain newly constructed improvements with an assessed value of $1,000 or more if a building permit was issued by June 30, 1999. Legislative action in 1999 amended this law effective July 1, 1999 that to qualify for exemption of improvements from the property tax, the property must be 45 years of age or older at the time the improveme nts commence and the property must be receiving the homestead classification. The minimum assessed value must be $5,000 for eligible improvement. This includes properties classified as residential homestead (including duplexes and triplexes), blind/parap legic veteran/disabled homestead and agricultural homestead. In addition, the owner must have taken out a building permit and file an application for the exemption with the assessor. This law has since expired and only improvements made prior to January 2, 2003 have been grandfathered in and are still enrolled in the program . Appeals Procedure Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with a notice of the new assessment. Three factors that affect the tax bill are: Anoka County City of Lino Lakes 59 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community; 2. The estimated market value of your property; 3. The classification of your property (how it is used). The assessor determines the fin al two factors. You may appeal the value or classification of your property as described below. Informal Appeal • Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classifica tion of the property, or the assessment process. • Almost all questions can be answered during this informal appeal process. • When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. • If the data on the property is correct, the appraiser is able to show the property owner other sales in the market that support the estimated market value. • If errors are found during the inspection, or other factors indicate a val ue reduction is warranted, the appraiser can easily make the changes at this time. Local Board of Appeal and Equalization • The Local Board of Appeal and Equalization is typically made up of city council members or township board members. • The Board meets during late April and early May. • Taxpayers can make their appeal in person or by letter. • The assessor is present to answer any questions and present evidence supporting their value. County Board of Appeal and Equalization In order to appeal to the Coun ty Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization. • The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. • The ir role is to ensure equalization among individual assessment districts and classes of property. • The board meets during the Final ten working days in June. Anoka County City of Lino Lakes 60 • A taxpayer must first appeal to the local board before appealing to the county board. Decisions of the County Board of Appeal and Equalization can be appealed to tax court. Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hear ing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. The Small Claims Division of the Tax Court only hears appeals involv ing one of the following situations: The assessor’s estimated market value of the property is <$300,000 The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. The entire property is classified as an agricultural homestead. Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no o fficial record of the proceedings . Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. The Regular Division of the Tax Court will hear all appeals, including those with the j urisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse, with trials scheduled to begin on Thursdays. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. On th e following two pages is a sample Valuation Notice. Anoka County City of Lino Lakes 61 Sample Valuation Notice Front Anoka County City of Lino Lakes 62 Sample Valuation Notice Back Anoka County City of Lino Lakes 63 More housing statistics may be found on the websites of local area realtor associations. The following links will take you to two hel pful web sites. St. Paul Area A ssociation of Realtors http://www.spaar.com/ SPAAR 2012 Annual Report http://www.spaar.com/_uls/resources/SPAAR_ANN_2012 .pdf Minneapolis Area Association of Realtors http://mplsrealtor.com/market.aspx MAAR 2012 Annual Report http://mplsrealtor.com/downl oads/market/RREAR/RREAR.pdf CENTENNIAL FIRE DISTRICTCheck Register - FIRE GLPage: 1 Check Issue Dates: 3/16/2013 - 4/2/2013Apr 02, 2013 04:18PM Report Criteria: Report type: Summary GLCheckCheckVendorDescriptionCheck PeriodIssue DateNumberNumberPayeeAmount 04/1304/02/20132013002210300US BAN KVISA-BLDG MTC19.73 Grand Totals:19.73 M = Manual Check, V = Void Check CENTENNIAL FIRE DISTRI CTInvoice Register - Edit ReportPage: 1 Input Dates: 3/16/2013 - 3/31/2013Apr 02, 2013 04:19PM NameVendor NumberInvoiceSeqTypeDescriptionInvoice DatePayment Due DateTotal CostGL AccountGL Period 03/29/2013 210300 US BANK US BANK2103000329131 Invoi VISA-FRAUD CHARGE CREDIT03/29/201303/29/2013916.94-801-1150003/13 US BANK2103000329132 InvoiVISA-PRINTER INK/JUMP DRIV 03/29/201303/29/2013111.37801-42-2210-20103/13 US BANK2103000329133 Invoi VISA-MEDICAL SUPPLIES03/29/201303/29/2013199.57801-42-2210-21603/13 US BANK2103000329134 Invoi VISA-OFFICE SUPPLIES03/29/201303/29/201341.88801-42-2210-20103/13 US BANK2103000329135 Invoi VISA-SMALL TOOLS FAN03/29/201303/29/2013328.30801-42-2210-20403/13 US BANK2103000329136 Invoi VISA-SCBA PARTS03/29/201303/29/20137.39801-42-2210-40503/13 US BANK2103000329137 Invoi VISA-TRAINING03/29/201303/29/2013100.00 801-42-2210-33103/13 US BANK2103000329138 Invoi VISA-WEB HOSTING03/29/2013 03/29/2013119.40801-42-2210-32103/13 US BANK2103000329139 Invoi VISA-BLDG MTC03/29/201303/29/201328.76801-42-2210-40103/13 Total 210300 US BANK:19.73 Total 03/29/2013:19.73 3/29/2013 GL Period Summary GL PeriodAmount 03/1319.73 Grand Totals:19.73 Grand Totals:19.73 Report GL Period Summary GL PeriodAmount 03/1319.73 Grand Totals:19.73 Vendor number hash:210300 Vendor number hash - split:1892700 Total number of invoices:1 Total number of transactions:9 Terms DescriptionInvoice Amount Discount AmountNet Invoice Amount Open Terms19.73.0019.73 Grand Totals:19.73.0019.73 CENTENNIAL FIRE DISTRICTCheck Register - FIRE GLPage: 1 Check Issue Dates: 4/3/2013 - 4/5/2013Apr 08, 2013 10:57AM Report Criteria: Report type: Summary Vendor.Vendor number = {IS NOT NULL} GLCheckCheckVendorDescriptionCheck PeriodIssue DateNumberNumberPayeeAmount 04/1304/05/2013574910305ALLIED GENERATORSSTATION 2 GENERATOR MTC387.50 04/1304/05/2013575020370BOUND TREE MEDICAL LLCMEDICAL TR AINING SUPPLIES345.43 04/1304/05/2013575130040CDW GOVERNMEN T, INCOFFICE SUPPLIES35.69 04/1304/05/2013575230490CENTERPOINT ENERGYSTATION 2 GAS475.20 04/1304/05/2013575330500CENTURY LI NKCENTERVILLE PHONE56.54 04/1304/05/2013575430575CITY OF CIRCLE PINES1ST QTR ACCOUNTING SERVIC1,575.00 04/1304/05/2013575530650CLAREY'S SAFETY EQUI PMENT EXTRICATION TOOLS63,275.35 04/1304/05/2013575631008COMCASTINTERNE T CENTERVILLE STATI203.00 04/1304/05/2013575760050FISDAPEMT TESTING140.00 04/1304/05/2013575860115FAIRVIEW PHARMACY SERVICMEDICAL SUPPLIES1,050.00 04/1304/05/2013575960650FRATTALLONE'S HARDWARE SREPAIR FAN190.36 04/1304/05/2013576160655FRIDLEY FIRE DEPAR TMENTFEMA GRANT-PHYSICALS3,950.00 04/1304/05/2013576280400HEWLETT-PACKARD COMPANTWO COMPUTERS1,675.28 04/1304/05/20135763120450CITY OF LINO LAKESFEB REIMB-FUEL29,203.25 04/1304/05/20135764130320MASTER TECHNOLOGY GROUINSTALL DATA RUNS STATION 687.00 04/1304/05/20135765131500MY ALARM CENTER , LLCSTATION 1 MONITORING108.48 04/1304/05/20135766160150PEARSON EDUCATION , INCEMR CLASS WORKBOOKS889.84 04/1304/05/20135767180600CITY OF RO SEVILLEAPRIL PHONE SERV1,279.33 04/1304/05/20135768190050SBM FIRE DEPARTM ENTFEMA GRANT-PHYSICALS1,500.00 04/1304/05/20135769200390TWIN CITY GARAGE DOOR CO, STATION 3 DOOR MTC126.03 04/1304/05/20135770220200VERIZON WI RELESSCOMMUNICATIONS78.06 Grand Totals:107,231.34 M = Manual Check, V = Void Check CENTENNIAL FIRE DISTRI CTInvoice Register - Edit ReportPage: 1 Input Dates: 4/5/2013 - 4/5/2013Apr 08, 2013 11:01AM NameVendor NumberInvoiceSeqTypeDescriptionInvoice DatePayment Due DateTotal CostGL AccountGL Period 04/05/2013 10305 ALLIED GENERATORS ALLIED GE 1030540001 Invoi STATION 2 GENERATOR MTC04/05/201304/05/2013387.50 801-42-2210-40104/13 Total 10305 ALLIED GENERATORS:387.50 20370 BOUND TREE MEDICAL LLC BOUND TR 20370810372901 Invoi MEDICAL SUPPLIES04/05/2013 04/05/201336.59801-42-2210-21604/13 BOUND TR 20370810372911 Invoi MEDICAL TRAINING SUPPLIES04/05/201304/05/2013308.84 801-42-2210-33204/13 Total 20370 BOUND TREE MEDICAL LLC:345.43 30040 CDW GOVERNMENT, INC CDW GOV 30040BF108091 Invoi OFFICE SUPPLIES04/05/2013 04/05/201335.69801-42-2210-20104/13 Total 30040 CDW GOVERNMENT, INC:35.69 30490 CENTERPOINT ENERGY CENTERP 304900405131 Invoi STATION 2 GAS04/05/201304/05/2013475.20801-42-2210-38004/13 Total 30490 CENTERPOINT ENERGY:475.20 30500 CENTURY LINK CENTURY 305000405131 Invoi CENTERVILLE PHONE04/05/2013 04/05/201356.54801-42-2210-32104/13 Total 30500 CENTURY LINK:56.54 30575 CITY OF CIRCLE PINES CITY OF CI 305750405131 Invoi1ST QTR ACCOUNTING SERVIC 04/05/201304/05/20131,575.00801-42-2210-30104/13 Total 30575 CITY OF CIRCLE PINES:1,575.00 30650 CLAREY'S SAFETY EQUIPMENT INC CLAREY'S 306501488821 Invoi EXTRICATION TOOLS04/05/2013 04/05/201363,275.35 801-42-2210-57004/13 Total 30650 CLAREY'S SAFETY EQUIPMENT INC:63,275.35 31008 COMCAST COMCAST310080405131 Invoi INTERNET STATION 104/05/2013 04/05/2013101.50801-42-2210-32104/13 COMCAST310080405132 InvoiINTERNET CENTERVILLE STATI 04/05/201304/05/2013101.50801-42-2210-32104/13 Total 31008 COMCAST:203.00 60050 FISDAP FISDAP60050 1205C101 1 Invoi EMT TESTING04/05/201304/05/201380.00801-42-2210-33104/13 FISDAP60050 1205C101 2 Invoi EMT TESTING04/05/201304/05/201360.00801-42-2210-33204/13 Total 60050 FISDAP:140.00 60115 FAIRVIEW PHARMACY SERVICES FAIRVIEW 60115 1336-0724 1 Invoi MEDICAL SUPPLIES04/05/201304/05/20131,050.00801-42-2210-21604/13 Total 60115 FAIRVIEW PHARMACY SERVICES:1,050.00 60650 FRATTALLONE'S HARDWARE STORE FRATTALL 606500405131 Invoi MISC SUPPLIES04/05/201304/05/201341.88801-42-2210-21904/13 FRATTALL 606500405132 InvoiBLDG MTC/CLEANING SUPPLIE 04/05/201304/05/201342.71801-42-2210-20204/13 FRATTALL 606500405133 Invoi REPAIR FAN04/05/201304/05/2013105.77801-42-2210-40504/13 CENTENNIAL FIRE DISTRI CTInvoice Register - Edit ReportPage: 2 Input Dates: 4/5/2013 - 4/5/2013Apr 08, 2013 11:01AM NameVendor NumberInvoiceSeqTypeDescriptionInvoice DatePayment Due DateTotal CostGL AccountGL Period Total 60650 FRATTALLONE'S HARDWARE STORE:190.36 60655 FRIDLEY FIRE DEPARTMENT FRIDLEY FI 606550405131 Invoi FEMA GRANT-UNIFORMS04/05/2013 04/05/20133,200.00 801-42-2350-21804/13 FRIDLEY FI 606550405132 Invoi FEMA GRANT-PHYSICALS04/05/201304/05/2013750.00801-42-2350-30804/13 Total 60655 FRIDLEY FIRE DEPARTMENT:3,950.00 80400 HEWLETT-PACKARD COMPANY HEWLETT-80400525237011 Invoi 2 COMPUTER MONITORS04/05/201304/05/2013362.08801-42-2210-57004/13 HEWLETT-80400525258481 Invoi TWO COMPUTERS04/05/201304/05/20131,313.20801-42-2210-57004/13 Total 80400 HEWLETT-PACKARD COMPANY:1,675.28 120450 CITY OF LINO LAKES CITY OF LI 1204500405131 Invoi FEB REIMB-SALARIES04/05/2013 04/05/201318,378.72 801-42-2210-10104/13 CITY OF LI 1204500405132 Invoi FEB REIMB-PAYROLL TAXES04/05/201304/05/20132,882.61 801-42-2210-12004/13 CITY OF LI 1204500405133 Invoi FEB REIMB-INS04/05/201304/05/20132,229.09801-42-2210-13004/13 CITY OF LI 1204500405134 Invoi FEB REIMB-FEMA SALARY04/05/201304/05/20133,200.00 801-42-2350-10104/13 CITY OF LI 1204500405135 InvoiFEB REIMB-FEMA PAYROLL TA 04/05/201304/05/2013471.92801-42-2350-12004/13 CITY OF LI 1204500405136 Invoi FEB REIMB-FEMA INS04/05/201304/05/2013923.97801-42-2350-13004/13 CITY OF LI 1204500405137 Invoi FEB REIMB-FUEL04/05/201304/05/20131,116.94801-42-2210-21204/13 Total 120450 CITY OF LINO LAKES:29,203.25 130320 MASTER TECHNOLOGY GROUP MASTER T 1303204775421 InvoiINSTALL DATA RUNS STATION 04/05/201304/05/2013687.00801-42-2210-40104/13 Total 130320 MASTER TECHNOLOGY GROUP:687.00 131500 MY ALARM CENTER, LLC MY ALARM 131500019843201 Invoi STATION 1 MONITORING04/05/201304/05/2013108.48801-42-2210-40104/13 Total 131500 MY ALARM CENTER, LLC:108.48 160150 PEARSON EDUCATION, INC PEARSON 160150692265241 Invoi EMR CLASS WORKBOOKS04/05/2013 04/05/2013889.84801-42-2210-33204/13 Total 160150 PEARSON EDUCATION, INC:889.84 180600 CITY OF ROSEVILLE CITY OF R 18060002173281 Invoi JT POWERS MIS04/05/201304/05/20131,138.33801-42-2210-32004/13 CITY OF R 18060002173571 Invoi APRIL PHONE SERV04/05/2013 04/05/2013141.00801-42-2210-32104/13 Total 180600 CITY OF ROSEVILLE:1,279.33 190050 SBM FIRE DEPARTMENT SBM FIRE 1900500405131 Invoi FEMA GRANT-PHYSICALS04/05/201304/05/20131,500.00 801-42-2350-30804/13 Total 190050 SBM FIRE DEPARTMENT:1,500.00 200390 TWIN CITY GARAGE DOOR CO, INC TWIN CITY 2003903884641 Invoi STATION 3 DOOR MTC04/05/201304/05/2013126.03801-42-2210-40104/13 Total 200390 TWIN CITY GARAGE DOOR CO, INC:126.03 CENTENNIAL FIRE DISTRI CTInvoice Register - Edit ReportPage: 3 Input Dates: 4/5/2013 - 4/5/2013Apr 08, 2013 11:01AM NameVendor NumberInvoiceSeqTypeDescriptionInvoice DatePayment Due DateTotal CostGL AccountGL Period 220200 VERIZON WIRELESS VERIZON 220200 97016171 1 Invoi COMMUNICATIONS 04/05/201304/05/201378.06801-42-2210-32104/13 Total 220200 VERIZON WIRELESS:78.06 Total 04/05/2013:107,231.34 4/5/2013 GL Period Summary GL PeriodAmount 04/13107,231.34 Grand Totals:107,231.34 Grand Totals:107,231.34 Report GL Period Summary GL PeriodAmount 04/13107,231.34 Grand Totals:107,231.34 Vendor number hash:2150838 Vendor number hash - split:3146551 Total number of invoices:24 Total number of transactions:35 Terms DescriptionInvoice Amount Discount AmountNet Invoice Amount Open Terms107,231.34.00107,231.34 Grand Totals:107,231.34.00107,231.34 CITY COUNCIL WORK SESSION April 1, 2013 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : April 1, 2013 4 TIME STARTED : 5:30 p.m. 5 TIME ENDED : 6:30 p.m. 6 MEMBERS PRESENT : Council M ember Stoesz , O’Donnell, 7 Rafferty , Roeser and Mayor Reinert 8 MEMBERS ABSENT : No ne 9 10 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11 Swenson; Finance Director Al Rolek; Environmental Coordinator Marty Asleson; Public 12 Ser vices Director Rick DeGardner; Economic Development Coordinator Mary Alice 13 Divine; City Clerk Julie Bartell 14 15 1. Anoka County Assessor – Board of Appeals process – Peggy Nordrum and Randy 16 DeJong, Anoka County appraisers, reviewed the process for the upcom i ng Board of 17 Appeals. Longtime County Assessor Linda Wiener, who handled the Lino Lakes area, 18 has retired so other staff will be handling the process. The council will act as the Board 19 of Review and follow a review process that gives property owners the o pportunity to 20 appeal their current valuation or classification. This year’s board reviews assessments 21 payable in 2014. The board may correct erroneous valuations if they so determine. The 22 county assessor’s staff will provide a review of the assessment pr ocess, definition of 23 market value and how mass appraisals are conducted. Ms. Nordrum answered questions 24 about housing market trends in the area. The mayor suggested that it appears that values 25 are bottoming out. 26 27 3. 401 Birch Street Property – Admini strator Karlson updated the council on this 28 property; neighbors had appeared at the last work session to express their concern that the 29 property is blighted. There is a purchase agreement on the property so that pretty much 30 ends the discussion about city or neighborhood purchase. Mayor Reinert indicated that he 31 spoke with the neighbor who attended the last work session (Mr. Stimson) and there is an 32 understanding that it’s a wait and see situation now. He recommends that the city keep an 33 eye on the proper ty. 34 35 4. Off -Sale Liquor Licensing – City Clerk Bartell noted previous council discussions 36 about the possibility of instituting regulations on off -sale licenses within the city. The 37 council has received information on what other cities are doing in that a rea – generally 38 restrictions are related to either proximity of licenses or by population. The council 39 recently directed staff to prepare an ordinance reflecting a regulation limiting licenses t o 40 within one -half mile radius . Mayor Reinert recalled that t he coun c il’s most recent 41 discussion seems to have landed on the half -mile restriction but he recalls that there was 42 still conce rn about certain areas losing developmen t due to restrictions . 43 44 CITY COUNCIL WORK SESSION April 1, 2013 DRAFT 2 Council Member Roeser confirmed his concern about limiting futu re business 45 development. To him, competition is good and helps the residents also. This seems to be 46 a subject that comes up whenever a new license is proposed. He does see that there is a 47 district in the city where there are several licenses but trying to fix that by adding 48 limitations could backfire . Council Member Rafferty concurred tha t limitations could 49 close important avenues. 50 51 Mayor Reinert had spoken with a n off -sale l icense holder who suggests this ordinance 52 could be in place and if new busine sses are interested, they could buy out current 53 licensees. The mayor said he sees the a rea of I35E as particularly ripe for development 54 and perhaps that area could be exempted from the new regulations. He added t hat the 55 liquor industry is d ifferent to hi m because it is highly regulated by the state. 56 57 Council Member Roeser asked about the possibility of a moratorium on licenses until the 58 council sees the need for additional licenses. Council Member Rafferty i s concerned that 59 a moratorium is too much of a moving target ; he hears the argument for regulations but 60 doesn’t want to close the door on development . Council Member Stoesz recognizes th at 61 a restriction would make current licenses more valuable. 62 63 Sergei Nazaranka of Eagle Liquors explained that a store with other options, such as G -64 Will, just wants the traffic attracted by the liquor store for their other g oods. T hey can 65 price the alcohol products way down because they have other items. He believes that 66 h aving regulations is not out of the ordi nary; neighboring cities have enacted them. Also 67 he doesn’t believe that a large development would be stopped by regulations; they can 68 work their way around them. 69 70 Adam LaMere, Lakes Liquor, told the council that there is obviously a problem and that 71 do ing something is better than doing nothing. He doesn’t feel it is fair for the council to 72 do nothing when there are business owners who have invested in this city. 73 74 Mayor Reinert said he’d like staff to carve out a discussion for the council about where an 75 exemption area would make sense. 76 77 Barbara Bor, resident and Environmental Board Member, noted that the eastside of the 78 city includes an AUAR district that is supposed to be reviewed regularly. She’d like that 79 to be part of the discussion if the coun cil is discussing development of the I35E area. 80 81 5. Update on Peltier Lake Heron Rookery – Environmental Coordinator Asleson 82 introduced community volunteers on the rookery project – Wayne LeBlanc, Barbara Bor, 83 Terry Averbeck. Other volunteers were not present but were noted. Historically, it was 84 discovered in 1999 that the heron rookery was failing; a task force was established. There 85 were several hypotheses on why the rookery was failing and actions were taken to 86 mitigate many of those things. Sinc e 2006 when there was essenti ally no nesting and 87 with flashings added to nesting trees, the nesting has been increasing. At this point , the 88 efforts seem to be working well. Mr. LeBlanc added that winter nesting counting is done 89 CITY COUNCIL WORK SESSION April 1, 2013 DRAFT 3 regularly (data on numbers distributed) and t he nests seem to be doubling each year. He 90 also believes that the no wake zone on the lake helps as does the signs that have been 91 posted. 92 93 Council Member Stoesz added that he is interested in seeing some solar powered cameras 94 install ed so that many people can enjoy the heron environment without intrusion. The 95 feed could even be added to the city cable channel and maybe the web site. 96 97 2. Utility Rate Discussion – Public Services Director DeGardner re shared information 98 comparing city water rates with other cities (from the Springsted prepared rate study). 99 This item remains on the agenda pending a council decision on rates. The council 100 discussed average water usage in the summer and winter as well as tiered rate structures. 101 Council Member Roeser urged staff to keep an eye on the funds in -house so things don’t 102 get too far off course between official rate studies. Also Council Member Roeser would 103 like see incentives to use less water rather than just penalties for high use. Mr. 104 DeGa rdner said education has always been an impo rtant strategy along with other ways to 105 achieve savings. 106 107 Council Member Stoesz pointed out that people like consistency in their bills and that 108 makes him believe that planning for future needs through rates is a good idea. 109 110 Council Member Rafferty asked staff what they consider best practice in the area. Mr. 111 DeGardner replied that he believes education is the key element and he is also a strong 112 believer in the tiered billing structure (tied to water use). 113 114 Council Member Roeser urged creative thinking because the best result will come from 115 more than one approach to the situation . He also asked about a long term approach such 116 as utilizing a deeper aquifer so that fewer chemicals are needed for water treat ment. Mr. 117 DeGardner explained that the aquifer question goes to the Department of Natural 118 Resources and they have in the past told him that such a change would be next to 119 impossible. 120 121 The mayor asked that council members work individually on the matter o f utility rates 122 and at the next work session there will be light discussion followed hopefully by a 123 decision. It was clarified that the council will also need to review sewer rates but that 124 will be a separate upcoming discussion. 125 126 Administrator Karlson added that utility service is an area being considered for multi -city 127 collaboration. It appears that the Metropolitan Council will be providing grant funds for a 128 collaboration study. 129 130 6. Five -Year Financial Forecast - Finance Director Rolek reviewed t he budget gap 131 analysis information that he provided to the council. It attempts to outline decisions 132 made in previous years that impact future year consid erations. The council and staff 133 discussed the analysis and the possibility of priority setting sess ion in the future. It will 134 CITY COUNCIL WORK SESSION April 1, 2013 DRAFT 4 be important to understand priorities before reductions are considered. The mayor said 135 that he’d like to keep drilling down on all areas of the budget. A session to discuss 136 priorities will be scheduled. 137 138 7. City Communicati ons Plan – Police Chief Swenson introduced the proposed 139 Communi c ation Plan and Social Media Policy that will ensure consistency and help to 140 establish and maintain appropriate s ocial media use. The Plan is clear in establishing 141 types of communications and how they will be handled as well as instituting a “stop light” 142 method that establishes the urgency of communications. 143 144 Council Member Stoesz asked if city council notices could be posted on Facebook and 145 Chief Swenson remarked that consideration of your audience is an important element of 146 any post. Mayor Reinert suggested that the council could have a role in this, perhaps in 147 getting the word out to encourage citizens to tell the city how they best receive 148 communications. 149 150 8. Community Survey – Admini strator Karlson noted that the idea of a community 151 survey was raised by the council recently. He has asked a company that specializes in 152 surveys , Decision Resources, for an informational estimate. He recalled t hat the city of 153 Coon Rapids did a 16 questi on survey at a cost of about $16,000. If the city were to 154 contract for a survey, it would most likely be funded through the general fund 155 contingency. 156 157 The mayor wondered how surveys are done now since many people don’t have home 158 phones. Mr. Ka rlson sug gested that cell phone contact would be included as well as land 159 lines. 160 161 The council discussed timing. Council Member O’Donnell remarked that it is still early 162 in this year so there is uncertainty about what else could be vying for the contingency 163 fundi ng; it may be best to discuss this type of service later in the year. Mayor Reinert 164 concurred and asked staff to return with this matter in a few months; also the next 165 discussion should include information on how a survey could reach people without land 166 lines. 167 168 9. Bald Eagle/Elmcrest Corridro – Council Member Roeser indicated that he requested 169 this discussion and he has included some information in the packet showing Bald Eagle 170 Boulevard. There are p ictures of the roadway that is in really bad condition . He wants to 171 start a discussion about how the city could be involved in fixing the road. Perhaps 172 something like funding a paving project through the watershed district or shared costs 173 with another city, or even state Legacy funds. The council has hear d abo ut a WSB 174 service that helps look for grant funds; maybe that’s an avenue. The city administrator 175 could contact the City of Hugo and see if there’s interest and have WSB put together a 176 ball park figure for improvements that don’t include sewer and wat er. 177 178 Review Regular Agenda of April 8, 2013 – The council reviewed the meeting packet. 179 CITY COUNCIL WORK SESSION April 1, 2013 DRAFT 5 180 Item 3A – Administrator Karlson reviewed the staff report. He is requesting approval of 181 a compensation increase of 1.5% for non represented employees. After confirm ing that 182 the process has included a performance element, t he council concurred to raise the 183 increase to 2 percent (still less than the total of 2.5% most union employees received in 184 2012 and 2013). 185 186 Item 4A – Chief Swenson explained that the Police Depar tment has updated the city’s 187 emergency management plan. The updates are not significant but do realign the policy to 188 the current situation. If the plan is approved by the council, it is his intent to develop a 189 training plan to reacquaint people. Mayor Reinert requested a “redlined” copy of the 190 Plan that indicates what is being changed. The plan was pulled from the council agenda 191 to allow additional time for council member review. 192 193 The meeting was adjourned at 9:22 p.m. 194 195 These minutes were considered, corrected and approved at the regular Council meeting held on 196 April 22, 2013. 197 198 199 200 201 Julianne Bartell, City Clerk Jeff Reinert , Mayor 202 203 COUNCIL MINUTES April 8, 2013 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 4 DATE : April 8 , 2013 5 TIME STARTED : 6:30 p.m. 6 TIME ENDED : 6:43 p.m. 7 MEMBERS PRESENT : Council M ember Stoesz , O’Donnell, Rafferty , 8 and Roeser 9 MEMBERS ABSENT : Mayor Reinert 10 11 Staff memb ers present: City Administrator Jeff Karlson ; Chief of Police John Swenson; and City 12 Clerk Julie Bartell 13 14 In the absence of Mayor Reinert, Acting Mayor O’Donnell was in the Chair. 15 16 PUBLIC COMMENT 17 18 No one wa s present to address the council regarding a matt er not on the agenda. 19 20 SETTING THE AGENDA 21 22 The a genda was amended to remove Item 6A. 23 24 CONSENT AGENDA 25 26 Council Member Rafferty moved to approv e the Consent Agenda, Items 1A through 1E . Council 27 Member Stoesz seconded the moti on. Motion carried on a unanimo us voice vote. 28 29 ITEM ACTION 30 31 Consideration of Expenditures: 32 33 April 8, 2013 (Check No. 95379 –95465), 34 $125,237.07 ) Approved 35 36 March 25, 2013 Council Work Session Minutes Approved 37 38 March 25, 2013 City Council Meeting Minutes Approved 39 40 Resoluti on No. 13 -41, Peddler License for Elite Home 41 Services of MN, Inc., Lisa Hogstad -Osterhues Approved 42 43 Expansion of Premises, Tavern on Main, Lisa 44 Hogstad -Osterhues Approved 45 COUNCIL MINUTES April 8, 2013 DRAFT 2 FINANCE DEPARTMENT REPORT 46 47 There was no report from the Finance Department. 48 49 A DMINISTRATION DEPARTMENT REPORT 50 51 3A) Resolution No. 13 -41, Establishing the 2013 Compensation Plan for Non -Union Employees 52 – Administrator Karlson explained that the resolution establishes the 2013 compensation plan for 53 non -represented employees (City Adm inistrator, department directors, police captains and city clerk). 54 These positions have not had a salary increase since 2009 and this increase would be retroactive to 55 January 1, 2013. All the impacted employees have received a satisfactory performance a ppraisal. 56 57 Council Member Roeser moved to approve Resolution No. 13 -41 as presented. Council Member 58 Rafferty seconded the motion. Motion carried on a voice vote. 59 60 3B) Resolution No. 13 -42, Supporting Street Improvement Legislation – Administrator Karlso n 61 explained that this item came up just last week. The League of Minnesota Cities is coordinating an 62 effort to support legislation at the state level to create street improvement districts. It would allow 63 the collection of fees for certain items within a district. The bill is included in the packet for review. 64 This would be a tool that city’s could use to fund street improvements. It would enable cities to 65 utilize the tool only if they choose. 66 67 Council Member Roeser moved to approve Resolution No . 13 -42 as presented. Council Member 68 Rafferty seconded the motion. Motion carried on a voice vote. 69 70 PUBLIC SAFETY DEPARTMENT REPORT 71 72 There was no report from the Public Safety Department. 73 74 PUBLIC SERVICES DEPARTMENT REPORT 75 76 There was no report from the P ublic Services Department. 77 78 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 79 80 6A) Consideration of Resolution No. 13 -38, Approving an Amended Civic Complex Lease 81 Agreement, Mary Alice Divine. 82 This item was pulled from the agenda at staff’s request. 83 84 UNFINISHED BUS INESS 85 86 There was no Unfinished Business. 87 88 NEW BUSINESS 89 There was no New Business. 90 COUNCIL MINUTES April 8, 2013 DRAFT 3 91 COMMUNITY CALENDAR 92 93 Community Calendar – A Look Ahead 94 April 8 , 201 3 through April 22, 201 3 95 Wednesday, April 10 6:30 pm, Council Chambers Planning & Zoning 96 Thursday, Apri l 11 6:30 pm , Community Room Charter Commission 97 Monday, April 22 5:30 pm, Community Room Council Work Session 98 Monday, April 22 6:00 pm, Council Chambers Board of Appeal 99 Monday, April 22 6:30 pm, Council Chambers City Council Meeting 100 101 COMMUNITY EVENTS 102 103 WESTERN KIDS’ HOEDOWN will be held at Rice Lake Elementary cafeteria on April 12, 2013 104 from 6:30 p.m. to 8:00 p.m. Ages are 9 and under. Call the Lino Lakes Parks and Recreation 105 Department to sign up. 106 107 PRINCE OR PRINCESS FOR A DAY 3 -8 year olds are invit ed for a special morning full of royal 108 fun! Refreshments are provided. Prince or Princess attire is welcome! Saturday, April 20, 2013 from 109 10 a.m. – noon at the Lino Lakes Senior Center. Cost is $12 per child, adults are free. Call the Lino 110 Lakes Park s and Recreation Department to sign up. 111 112 MONTHLY RECYCLE DAY will be held at Lino Park (7850 Lake Drive) on Saturday, April 20, 113 2013 from 10:00 a.m. to 2:00 p.m. See city website for a list of accepted items. 114 115 EARTH DAY will be celebrated in Lino Lakes th e morning of Saturday, April 20, 2013. We are 116 looking for volunteers to help to help pick up trash from City parks and trails. If you interested in a 117 project, call Marty Asleson at 651 -982 -2435. 118 119 WARGO NATURE CENTER FAMILY EARTH DAY CELEBRATION The aft ernoon of April 20, 120 2013 there will be festivities such as face painting, free popcorn, bounce house, climbing wall, rain 121 barrel demo, arts and crafts, performance by Tricia and the Toonies as well as a local business fair. 122 This event takes places from 12 :30 p.m. to 3:00 p.m. 123 124 ADJOURN 125 126 There being no further business, Council Member Rafferty moved to adjourn at 6:43 p.m. Council 127 Member Roeser seconded the mot ion. Motion carried on a voice vote . 128 129 These minutes were considered and approved at the regular Council Meeting, April 22, 2013 . 130 131 132 133 134 Julianne Bartell, City Clerk Jeff Reinert , Mayor 135 136 CITY COUNCIL AGENDA ITEM 1 -E STAFF ORIG INATOR: Mary Alice Divine MEETING DATE: April 22 , 2013 TOPIC: Consideration of Resolution No. 13 -46 Approving a Lease Termination Agreement with Veritas Academy VOTE REQUIR ED: 3/5 INTRODUCTION The City of Lino Lakes is marketing for lease the former ECFE facility in the Lino Lakes Civic Complex. BACKGROUND On March 11, 2013 the City Council approved a lease with Veritas Academy for lease of the former ECFE in th e Lino Lakes Civic Complex. The president of the Academy signed the lease on March 12, 2013. The Academy’s advisors then advised the president to cancel the lease due to their concern that enough students would not be recruited by September of 2013 to cove r the rent. Staff worked with Veritas to revise the lease with conditions, and Council amended it on April 8, 2013. Since that time Veritas did not meet conditions of the amended lease and staff has concluded it should terminate the lease and continue mark eting the facility. RECOMMENDATION Approve Resolution 13 -46 approving the Lease Termination Agreement ATTACHMENTS 1. Resolution No. 13 -46 2. Lease Termination Agreement CITY OF LINO LAKES RESOLUTION NO. 13 -46 RESOLUTION APPROVING LEASE TERMINATION AGREEMENT WHEREAS , the City Council of the City of Lino Lakes determined to lease the portion of the Lino Lakes Civic Complex formerly occupied by the Centennial Ea rly Child hood Education program (the “Facility ”), and ; WHEREAS, The City Council approved a Lease Agreement with Veritas Academy on March 11, 2013, and; WHEREAS, Veritas Academy signed the approved Lease Agreement on March 12, 2013, and; WHEREAS, Veritas reques ted a revised Lease Agreement with new terms and conditions ; and WHEREAS, The City Council approved a revised Lease Agreement with new terms and conditions on April 8, 2013; and WHEREAS, Veritas Academy did not meet the terms and conditions. NOW, THEREF ORE BE IT RESOLVED by the City Council of the City of Lino Lakes approves the Lease Termination Agreement. NOW, THEREFORE, BE IT FURTHER RESOLVED by The City Council of The City o f Lino Lakes that City staff and consultants are authorized and directed to take all other actions required to carry out the intent of this Resolution. Adopted by the Council o f the City of Lino Lakes this 22 nd day of April , 2013 . The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert , Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 1 -F STAFF ORIG INATOR: Mary Alice Divine MEETING DATE: April 22, 2013 TOPIC: Consi d eration of Resolution No. 13 -47 Approving Public Services/Parks & Recreation Director to Twin Cities Gateway Board of Directors VOTE REQUIR ED: 3/5 INTRODUCTION The City of Lino Lakes has been a member of Twin Cities Gateway (TCG), the Convention and Tourism Bureau se rving the northeast metro area, since 2009 . BACKGROUND Mary Alice Divine has served on the TCG Board of Directors since its inception. She is retiring in April 2013. Public Services/Parks & Recreation Director Rick DeGardner has agreed to accept the position on the board. RECOMMENDATION Approve Resolution No. 13 -47 Approving Rick DeGardner to the TCG Board of Directors . AT TACHMENTS 1. Resolution No. 13 -47 CITY OF LINO LAKES RESOLUTION NO. 13 -47 RESOLUTION APPOINTING RICK DEGARDNER TO TWIN CITIES GATEWAY BOARD OF DIRECTORS WHEREAS, The City of Lino Lakes is a participating member of Twin Cities Gateway (TCG); and WHEREAS , The City collects a 3% lodgin g tax Pursuant to M.S.A. § 469.190 fo r the purpose of supporting TCG ; and WHEREAS , The TCG by -laws require one elected official or appointed municipal representative on the Board of Directors. NOW, THEREFORE, BE IT RESOLVED by The City Council of The Cit y o f Lino Lakes, Minnesota: the City Council does hereby appoint Public Services/Parks & Recreation Director Rick DeGardner to the TCG Board of Directors. Adopted by the Council o f the City of Lino Lakes this 22nd day of April, 2013 . The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert , Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6A STAFF ORIG INATOR: Katie Larsen, City Planner MEETING DATE: May 13, 2013 TOPIC: First Reading: Ordinance 03 -13 Vacating a Drainage and Utility Easement -The Village No. 4 VOTE REQUIRED: 4 /5 INTRODUCTION The applicant has submitted a land use a pplication for a 36 unit, single level addition to the existing Lino Lakes Assisted Living, LLC facility located at 725 Town Center Parkway. The project includes a lot comb i nation/final plat, draina ge & utility easement vacation, site plan review and variance. BACKGROUND The Village No. 5 final plat is a combination of Lot 4, Block 1 and Outlot A, The Village No. 4. The drainage and utility easement that exists between the parcels needs to be vacated. The existing watermain under this easement will be relocated to the southeast due to the location of the new addition and a new easement shall be dedicated. Ideally, this new easement would be dedicated on the final plat but a separate document may be recorded. The second reading is scheduled for May 13, 2013 in conjunction with Council consideration of the final plat, site plan review and variance. RECOMMENDATION Staff is recommending approval of Ordinance 03 -13 Vacating the Drainage and Utility Easements between Lot 4, Block 1 and Outlot A of the recorded plat of The Village No. 4. ATTACHMENTS Ordinance No. 03 -13 1 st Reading: Publication: 2 nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. 03 -13 ORDINANCE VACATING DRAINAGE AND UTILITY EASEMENT (LOT 4, BLOCK 1 and Outlot A, The Village No. 4) “The City Council of Lino Lakes ordains". Section 1 Findings 1. The City Council of Lino Lakes has determined to vacate in its entirety the drainage and utility easement as shown in Exhibit A and described as: That portion of a drainage and utility easement over, under and across that part of Lot 4, Block 1, and Outlot A, THE VILLAGE NO. 4, according to the recorded plat thereof, Anoka County, Minnesota, described as follows: Commencing at the most easterly corner of said Outlot A; thence South 64 degrees 55 minutes 36 seconds West, assumed bearing, a long the southeasterly line of said Outlot A, 297.03 feet to the point of beginning; thence North 25 degrees 08 minutes 27 seconds West, 154.34 feet; thence South 64 degrees 00 minutes 48 seconds West, 30.74 feet; thence South 40 degrees 48 minutes 19 seco nds East, 39.78 feet; thence South 25 degrees 08 minutes 27 seconds East, 115.56 feet, to the southeasterly line of said Lot 4; thence North 64 degrees 55 minutes 36 seconds East, along said southeasterly line of Lot 4 and said southeasterly line of Outlo t A, 20.00 feet, to the point of beginning. 2. A public hearing was held on April 22, 2013 before the City Council in the City Hall Council Chambers after due published and posted notice had been given and a reasonable attempt was made to give personal no tice to all affected property owners, and all persons interested were given an opportunity to be heard; and 3. It appears to be in the best interest of the City to vacate such drainage and utility easement; and 4. Four -fifths of all members of the City Council concur in this ordinance. Section 2 Easement Vacated The drainage and utility easement described herein is hereby vacated. Section 3 This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter. Adopted by the Lino Lakes City Co uncil this ____ day of __________________, 2013 . The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6 -B STAFF ORIG INATOR: Mary Alice Divine MEETING DATE: April 22, 2013 TOPIC: Consi deration of Resolution No. 13 -45 Accepting a Donation from TC Gateway for Blue Heron Days Festival VOTE REQUIRED: 3/5 INTRODUCTION Twin Cities Gateway (TCG), the convention and tourism bureau serving nine northeast metro cities including Lino Lakes, provides an annual donation to member cities, based on a percentage of the contribution each city brings in from hotel taxes . The grant is to be used for expansion and promotion of events held within the city. BACKGROUND The TCG Board of Directors voted to provide a 2013 grant amount of $6,381.00 to Lino Lakes for advertising and promotion of Lino Lakes Blue Heron Days. This year Lino Lakes P arks & Recreation will be taking the lead on the event in cooperation with a committee of volunteers and local organizations that participate annually. This year will be the 10 th anniversary of Blue Heron Days and will be held the weekend of August 16 -18. It will include many of the same events that took place last year in Lino Park and some new attractions as well. Applications for the parade, the Quad Area Chamber of Commerce Business Expo and sponsorship information are available at blueherondays.org. R ECOMMENDATION Adopt Resolution No. 13 -45 . ATTACHMENTS 1. Resolution No. 13 -45 2. Lino Lakes 2013 Member City Marketing Grant Agreement CITY OF LINO LAKES RESOLUTION NO. 13 -45 RESOLUTION ACCEPTING A DONATION FROM TWIN CITIES GATEWAY FOR LINO LAKES BLUE HERON DAYS FESTIVAL WHEREAS, The City of Lino Lakes is a participating member of Twin Cities Gateway (TCG); and WHEREAS , The City co llects a 3% lodging tax Pursuant to M.S.A. § 469.190 fo r the purpose of supporting TCG ; and WHEREAS , The Board of Directors of TCG voted to provide $6,381 .00 in 2013 for promotion of the City’s festival upon request by the City. NOW, THEREFORE, BE IT RES OLVED by The City Council of The City o f Lino Lakes, Minnesota: the City Council does hereby accept the donation of $6,381 .00 for the purposes of providing funds for advertising , marketing and promotion of Blue Heron Days to increase participation and/or t o add new activities to enhance existing events. Adopted by the Council o f the City of Lino Lakes this 22nd da y of April, 2013 . The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded b y Council Member _____ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert , Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR : Jason C. Wedel, City Engineer MEETING DATE : April 22, 20 13 TOPIC : Consider Resolution No. 13 -44 Municipal State Aid Street Revocations and Designations VOTE REQUIRED : 3/5 INTRODUCTION The Munici pal State Aid Street (MSAS) system allows cities with a population over 5,000 to be eligible to receive additional funding for road improvements and maintenance from the State Highway Users Fund. Each year, the City receives an allocation based 50% upon its population and 50% upon the construction “Needs” of its roadways. To receive funding, the City can designate up to 20% of its local streets to receive MSAS funding. BACKGROUND Over the past two years, State Aid has worked on creating a new methodol ogy as to how it calculates the construction Needs. Instead of calculating the Needs based upon a comparison of existing to proposed roadway characteristics as was done previously, the new system will be based namely upon existing traffic volume of the ro adway. This means that the higher the ADT, the more money that segment will generate. In preparation to get the most funding for our system based upon this new calculation system, we have reviewed the City’s entire street system to identify streets with higher traffic volumes to maximize the amount of mileage designated as well as the allocation that could be received. Per State Aid Rules, a City is allowed to add mileage annually if a letter request is submitted by March 1 st . If the proposed route is accepted by the State Aid office, a formal council resolution adding it the system is required by June 1 st . Prior to making any revisions, the City has 0.0 8 miles available to designate based on the December 31, 2012 Certification of Mileage. With the proposed revisions, the City will have 0.00 miles available for designation. State Aid approved the requested revisions on March 26 th . The City Council must now pass a formal resolution to finalize the proposed routes. DISCUSSION The City has requested to revoke Rondeau Lake Road/84 th Street, Birch Street/21 st Avenue, Robinson Avenue and parts of West Shadow Lake Drive and Holly Drive. These segments are non-existing routes or low volume existing segments that are tied to non -existing routes. The non-existing segments will generate the least amount of dol lars for the City under the new Needs calculation system if they remain on the system. These routes were included previously for system continuity per the State Aid rules and also because they maximiz ed the dollars for the generated for the City due to the fact that they claimed unused mileage . The designation of Baldwin Lake Road, Woodridge Lane, Hawthorn Road/Painted Turtle Road, Langer Lane, Stella Lane, Timberwolf Road, Sherman Lake Road, Lakeview Drive, Elmcrest Avenue, Century Trail, Lois Lane, Kelly Street, and the extension of Tart Lake Road will fulfill the State Aid requirements of system continuity and designates the mileage to existing segments with higher traffic volumes . The designation of Elmcrest Avenue is a joint designation with the City of Hugo due to the common boundary at the City limits. Hugo performed a traffic count on this route and determined that this is a highly traveled route. The traffic is namely due to destinations wit hin Hugo but the City of Lino Lakes will still benefit from a dollar generation standpoint to share in this designation with Hugo. These revisions will result in the City maximizing its available designation mileage which will in turn maximize the State Aid Needs dollars that are allocated to the City. RECOMMENDATION Approve Resolution 13 -44, Municipa l State Aid Street Revocations and Designations. ATTACHMENTS 2013 Proposed System Revisions Map CITY OF LINO LAKES RESOLUTION NO. 13 -44 A RESOLUTION APPROVING AMENDMENTS TO THE DE S IG NATED MUNICIPAL STATE AID ROUTES FOR THE CITY OF LINO LAKES, MINNESOTA WHEREAS, as a requisite to qualify for State Aid funding for streets, it is necessary that the City Council designate certain streets within the City of Lino Lakes to comprise a Municipal State Aid Street system; and WHEREAS , the City Council has reviewed the recommendations of the City Engineer and has approved certain streets within the City to become a part of said system. NOW, THEREFORE , BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: 1. That part of West Shadow Lake Road from Ash Street (CSAH 1) to 62 nd Street shall be revoked from the City of Lino Lakes MSAS system. 2. That part of Holly Drive from 12 th Avenue South to Centerville Road (CSAH 21) shall be revoked from the City of Lino Lakes MSAS system. 3. That Rondeau Lake Road/84 th Street from Main Street (CSAH 14) to Lake Drive (CSAH 23) shall be revoked from the City of Lino Lakes MSAS system. 4. That Birch Street/21 st Avenue from 20 th Avenue (CSAH 54) to 80 th Street (CR 140) shall be revoked from the City of Lino Lakes MSAS system. 5. That Robinson Avenue from Main Street (CSAH 14) to Robinson Drive shall be revoked from the City of Lino Lakes MSAS system. 6. That an extension of Tart Lake Road from Clearwater Creek Drive to Stella Lane shall be added to the City of Lino Lakes MSAS system. 7. That Baldwin Lake Road from Ash Street (CSAH 1) to Woodridge Lane shall be added to the City of Lino Lakes MSAS system. 8. That Woodridge Lane from Baldwin Lake Road to Ash Street (CSAH 1) shall be added to the City of Lino Lakes MSAS system. 9. That Hawthorn Road/Painted Turtle Road from Ware Road to West Shadow Lake Drive shall be added to the City of Lino Lakes MSAS system. 10. That Langer Lane from Tart Lake Road to Stella Lane shall be added to the City of Lino Lakes MSAS system. 11. That Stella Lane from Langer Lane to Tart Lake Road shall be added to the City of Lino Lakes MSAS system. 12. That Timberwolf Road from Birch Street (CSAH 34) to Sh erman Lake Road shall be added to the City of Lino Lakes MSAS system. 13. That Sherman Lake Road from Timberwolf Road to Birch Street (CSAH 34) shall be added to the City of Lino Lakes MSAS system. 14. That Lakeview Drive from North Road (CR 49) to Elm Street shall be added to the City of Lino Lakes MSAS system. 15. That Elmcrest Avenue from Main Street (CSAH 14) to Heritage Parkway North shall be added to the City of Lino Lakes MSAS system. 16. That Century Trail from Sunset Avenue (CR 53) to Robinson Drive shall be added to the City of Lino Lakes MSAS system. 17. That Lois Lane from Lake Drive (CSAH 23) to Kelly Street shall be added to the City of Lino Lakes MSAS system. 18. That Kelly Street from Lois Lane to Lake Drive (CSAH 23) shall be added to the City of Lino Lakes M SAS system. 19. That the City Clerk provide a certified copy of this resolution by June 1 st , 2013 for transmittal to the Commissioner of the Department of Transportation. Adopted by the Council of the City of Lino Lakes this ____ day of _____, 20__. The m otion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6D STAFF ORIG INATOR: Michael Grochala MEETING DATE: April 22, 2013 TOPIC: Consider Resolution No. 13 -48, Approving Joint Powers Agreement with the City of Centerville, Mound Trail Water and Sanitary Sewer Ser vice VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council approval of a Joint Powers Agreement allowing the City of Centerville to provide utility service to properties in Lino Lakes along Mound Trail. BACKGROUND Mound Trail i s a ½ mile l ong cul de sac located along the northwestern shoreline of Centerville Lake. The street services approximately 33 residential properties 2 of which, located at the southern terminus, are within the City of Lino Lakes. Due to the proximity of the lake and surrounding Rice Creek Chain of Lakes Regional Park , the street is isolated from other developed areas of Lino Lakes. The City of Centerville currently provides sanitary sewer service to the two Lino Lakes properties located at 7185 and 7193 Mound Trai l . Centerville is proposing to extend the water main to service a home currently experiencing well problems. The property owner at 7185 Mound Trail has requested that Centerville extend the water main to service his property. The proposed JPA provide s for the Lino Lakes properties to connect to the Centerville system if desired. Lino Lake's properties would be charged a hook -up fee at the time of connection. The fee would be based on the same rate charged for properties within the City of Centervill e. Both properties are currently connected to the Centerville sanitary sewer system. The City’s 2030 Comprehensive Plan plans for this area to be served by the City of Centerville. RECOMMENDATION Staff recommends approval of Resolution No. 13 -48 AT TACHMENTS 1. Resolution No. 13 -38 2. Joint Powers Agreement 3. General Location Map CITY OF LINO LAKES RESOLUTION NO. 13 -48 APPROVING JOINT POWERS AGREEMENT WITH CITY OF CENTERVILLE MOUND TRAIL WATER AND SANITARY SEWER SERVICE WHEREAS , t wo Lino Lakes residential properties are located at the southern terminus of Mound Trail ; and WHER EAS, the City of Lino Lakes does no t have sanitary sewer or water available to service the properties in Lino Lakes nor is it feasible for Lino Lakes to extend utilities to service them; and WHEREAS, the City of Centerville does have sanitary sewer and water utilities available to service the properties; and WHEREAS, the City of Lino Lakes desire to cooperate with the City of Centerville on the extension of Centerville sewer and water lines to serve property located in Lino Lakes; and WHEREAS, Minneso ta Statutes, Section 471.59 authorizes political subdivisions of the state to enter into joint powers agreements for the joint exercise of powers common to each; NOW, THEREFORE BE IT RESOLVED by The City Council of T he City of Lino Lakes hereby approves the Joint Powers Agreement with the City of Centerville for the provision of sanitary sewer and water service to Mound Trail residential properties located within the City of Lino Lakes. Adopted by the Council o f the City of Lino Lakes this 22 nd day of April , 2013 . The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The fo llowing voted against same: _______________________________ Jeff Reinert , Mayor ATTEST: ________________________ Julianne Bartell, City Clerk JOINT POWERS AGREEMENT BETWEEN THE CITY OF LINO LAKES AND THE CITY OF CENTERVILLE THIS AGREEMENT, is made to be effective _____________, 201 3 , between the CITY OF LINO LAKES, a municipal corporation under the laws of the State of Minnesota (LINO LAKES ), and the CITY OF CENTERVILLE , a municipal corporation under the laws of the State of Minnesota (CENTERVILLE). RECITALS: A. Two Lino Lakes residential properties (7185 and 7193 Mound Trail) are located at the end of Mound Trail . B. Lino Lakes does not have s anitary sewer or water available to serve the two Lino Lakes residential properties nor is if feasible for LINO LAKES to extend sanitary sewer or water to serve the m . C. It is feasible for CENTERVILLE to serve the two Lino Lakes residential properties with w ater service and/or sanitary sewer service, and LINO LAKES desires to have CENTERVILLE do so. D. Both properties have previously connected to CENTERVILLE sanitary sewer service . E. The resident at 7185 Mound Trail has requested that CENTERVILLE provide them wi th the option of securing water service in the near future and is prepared to pay the Centerville lateral connection fee to reserve service when it is needed . F. LINO LAKES desires to cooperate with CENTERVILLE on the extension of CENTERVILLE sewer and wate r lines to serve property located in LINO LAKES . PURPOSE: Minnesota Statutes, Section 471.59, provides that two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any pow er common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they are exercised. AGREEMENT: Now, therefore, in consideration of the foregoing recitals and mutual undertakin gs, set for th herein, LINO LAKES and CENTERVILLE , agree as follows: SECTION 1 – WATER AND SANITARY SEWER SERVICES A. SANITARY SEWER CONNECTION . Lino Lakes residents at 7185 and 7193 Mound Trail may connect to Centerville sanitary sewer . B. WATER CONNECTION Lino Lakes residents at 7185 and 7193 Mound Trail may connect to Centerville water mains . C. HOLD HARMLESS. Subject to exceptions and limitations provided by law, including but not limited to those contained in Minnesota Statutes, Chapter 466, CENTERVIL LE shall hold harmless and defend the City of LINO LAKES from any and all claims made by anyone for any defects or damages of any kind caused by the installation and/or construction of the Sanitary Sewer Service or water s ervice to serve the Lino Lakes res idents of Mound Trail . D. EASEMENT. Easements needed (if any) to construct and maintain the sewer or water services shall be acquired by CENTERVILLE . E. OWNERS OF SEWER SERVICE AND WATER S ERVICE . The sanitary sewer and/or water mains shall be constructed a nd owned by CENTERVILLE . All maintenance of the mains shall be the responsibility of CENTERVILLE . Locating of the sanitary and/or water mains and/or service lines shall be the responsibility of CENTERVILLE . F. HOOK -UP FEE. Lino Lakes residents will pay wi th their permit application any sanitary sewer and/or water connection fee per unit as shall be in effect for CENTERVILLE and Metropolitan Council Environmental Services (MCES ) based upon the number of fixture units assigned by the MCES formula. The conne ction fees may be adjusted from time to time by CENTERVILLE , and such fees shall be based upon the same rate charged for similar services furnished by CENTERVILLE for property lying within the city . G. METERS AND BILLING . Appropriate meters with an outside remote reader shall be installed by Lino Lakes residents at their expense to measure the water used and the sanitary sewer discharged in gallons, into CENTERVILLE sewers, which shall be the means of allocating a user charge to the Lino Lakes residents . The rate per gallon shall be equivalent to the rate charged for similar properties located in CENTERVILLE . Such meter s and outside remote reader s shall also be inspected by, or under the supervision of CENTERVILLE . Such water and sanitary sewer rates may be adjusted annually by CENTERVILLE . 2 H. PREVIOUS CONNECTION. The parties acknowledge that the two residential properties have previously connected to CENTERVILLE sanitary sewer without the benefit of a joint powers agreement . The parties intend that the te rms of this agreement shall extend to cover those connection s , except that no additional permits and no additional connection fees shall be required. SECTION 2 – MISCEL L ANEOUS A. TERM. This Agreement may be terminated by LINO LAKES if it determines i t will supply the two residential properties with water and/or the Sanitary Sewer Service and/or by CENTERVILLE if it determines it is unable to supply water or the Sanitary Sewer Service to two residential properties . In case of termination, not less t han one year in advance of such termination, notice shall be give to the following: To the CITY OF CENTERVILLE : City Clerk City of Centerville 1880 Main Street Centerville, MN 55038 To the CITY OF LINO LAKES: City Clerk City o f Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 B . The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause, or phrase of this Agreement is for any reason held to be contrary to law, or c ontrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of this Agreement. IN WITNESS WHEREOF, the City of LINO LAKES , and the City of CENTERVILLE have caused this Agreement to be execut ed on their behalf by their proper Council and Officers. (signatures on following pages) 3 CITY OF CENTERVILLE By: ___________________________________ Tom Wilharber, Its Mayor By: ___________________________________ Teresa Bender, Its City C lerk STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ________ day of _____________, 2013 by Tom Wilharber , Mayor of the City of Centerville , and by Teresa Bender , City Clerk of the City of Center ville , Minnesota, a municipal corporation, on behalf of the corporation. _______________________________ Notary Public 4 CITY OF LINO LAKES By: ___________________________________ Jeff Reinert , Mayor By: ___________________________________ Julie Bartell, City Clerk Dat ed:_______________________, 2013 . STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ________ day of _____________, 2013 , by Jeff Reinert , Mayor of the City of L ino Lakes, and by Julie Bartell, City Clerk of the City of Lino Lakes, Minnesota, a municipal corporation, on behalf of the corporation. __________________________________ Notary Public 5 G e n e r a l L o c a t i o n M a p 0 0 .0 7 0 .1 4 0 .2 1 0 .2 8 0 .0 3 5 M i l e s C i t y o f C e n t e r v i l l e C i t y o f L i n o L a k e s M o u n d T r a i l C e n t e r v i l l e L a k e R i c e C r e e k C h a i n o f L a k e s R e g i o n a l P a r k R i c e C r e e k C h a i n o f L a k e s R e g i o n a l P a r k L i n o L a k e s M o u n d T r a i l P r o p e r t i e s O CITY COUNCIL AGENDA ITEM 6 E STAFF ORIGINATOR: Jason Wedel MEETING DATE : April 22, 2013 TOPIC: Consideration of Resolution No. 13 -49 , Approving Stormwater Maintenance Agreement w ith RCWD, Otter Lake Road Extension Project VOTE REQUIRED: 3/5 INTRODUC T I ON Staff is requesting council action to approve a stormwater maintenance agreement with the Rice Creek Watershed District (RCWD) covering stormwater facilities constructed as part of the Otter Lake Road Extension project . BACKGROUND The improvement project includes the construction of stormwater facilities, i.e., catch b asins, pipe, and ponds to convey street surface water and provide water treatment prior to entering public waters. The City is subject to the permit req uirements of the Rice Creek Watershed District (RCWD). The RCWD board issued a co nditional approval for permit 13 -002 on March 4, 2013 . Condition 4 of the permit requires the City to enter into a maintenance agreement for all onsite stormwater features. The agreement requires the City to perform inspections and mainten ance on the stormwater facilities. This includ es annual inspections of lines and st ructures . Ponds are required to be inspected once annually in the first two years following constructi on and every five years thereafter. These requirements are generally consistent with the parameters the city already operates under with the exception of the line and structure inspections which we perform on a five year basis. RECOMMENDATION Staff i s recommending approval of Resolution No. 13 -49 . ATTACHMENTS 1. Resolution No. 13 -49 2. RCWD Stormwater Maintenance Agreement CITY OF LINO LAKES RESOLUTION NO. 13 -49 RESOLUTION AUTHORIZING EXECUTIO N OF STORMWATER FACILITIE S MAINTENANCE AGREEMEN T WITH RICE CR EEK WATERSHED DISTRI CT WHEREAS , the City is proposing to extend Otter Lake Road north of Main Street ; and WHEREAS, such improvements include the construction of stormwater facilities subject to the requirements of the Rice Creek Watershed District; and WH EREAS, the Rice Creek Watershed District Board of Managers cond itionally approved permit no. 13 -002 for the project subject to the execution a maintenance agreement between the City and the Watershed District . NOW, THEREFORE, BE IT RESOLVED BY THE CITY C OUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. T hat the Council a uthorizes staff to execute the necessary agreements on behalf of the City. Adopted by the Lino Lakes City Council this 22 nd day of April, 2013 . The motion for the adoption of the foregoing res olution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said resolution was declared duly passed and adopted. Jeff Reinert , Mayor Julianne Bartell, City Clerk