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04/04/2011 Council Packet
REVISED WORK SESSION AGENDA CITY OF LINO LAKES Monday, April 4, 2011 CITY COUNCIL WORK SESSION Community Room (not televised) 5:30 P.M. 1. Anoka County Assessor Linda Weiner, Board of Appeals process 2. Anoka County Connect Fiber Project 3. GASB 43/45 4. Five -Year Financial Plan to follow 4.1 Financial Accounting Software Upgrade 5. Oppidan, 49/J development proposal 6. Sign Ordinance to follow 7. Animal Control Ordinance 8. Weekly Progress Report 9. Regular Council Agenda Adjourn 21Sfriloal-ed &WIC Cecsluvt (4« Anoka County City of Lino Lakes April 25 2011 ANOKA COUNTY County Assessor's Report to the City of Lino Lakes LBAE (Local Board of Appeal and Equaliza on) Anoka County City of Lino Lakes Table of Contents Agenda 1 Assessment Calendar 2 Understanding Assessment and Tax Calculation 3 2010 Assessment Statistics 7 Reassessment Map 8 Authority of the Local Board of Appeal and Equalization (LBAE) 9 Market Value Statistics 12 Residential Appraisal System 16 Sales Studies and Statistics 17 Anoka County 10 Year Sales Ratio History 19 2010 Lino Lakes Residential Sales Ratios by Neighborhood 20 Residential Tax Changes Examined 21 ADDENDA 22 MN § 270.12 State Board of Equalization 24 MN § 273.11 Valuation of Property 26 MN § 273.121 Valuation of Real Property, Notice 35 MN § 273.13 Classification of Property 36 MN § 273.20 Assessor May Enter Dwellings, Buildings or Structures 48 MN § 274.01 Board of Appeal and Equalization 49 MN § 274.014 Local Boards (Training Requirements) 51 Appraisal Terminology 52 Avenues of Appeal 56 Sample Notice of Valuation and Classification 59 Web Links for Metro Realtor Associations Housing Statistics 61 Anoka County City of Lino Lakes 2011 Local Board of Appeal and Equalization Agenda April 25, 2011 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 each 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 2011 board is to review the assessment as of January 2, 2011, which will be used to compute the property taxes payable in 2012. Prior years' assessments or taxes (including taxes payable in 2011) 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 process. 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 assessment. 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 recommend 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 the 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, unless a longer period is approved by the Commissioner of Revenue. No action taken subsequent to such date shall be valid.) Page 1 Anoka County City of Lino Lakes Lino Lakes Assessment Staff Linda Wiener Residential Appraiser Peggy Nordrum Residential Appraiser Jim Rouleau Apartment Appraiser John Leone Commercial Industrial Appraiser Mike Ducklow Principal Appraiser Mike Sutherland County Assessor 2011 Assessment Calendar SW e* A 2011 Market Values for Property Established Final Day to Deliver Assessment Records to County by Local Assessors Final Day to File for an Exemption from Taxation Final Day to File for 1B with County Assessor 2011 Valuation Notices Mailed Local Boards of Appeal and Equalization and Open Book Meetings Final Day to File a Tax Court Petition for 2010 (payable 2011) Assessment Final Day to File an Application for Green Acres First Half of Payable 2011 Real Estate Tax is Due Final Day to Apply for Manufactured Home Homestead County Board of Appeal and Equalization State Board of Equalization 2011 Assessment Finalized (After CBAE Adjourns) Ownership Deadline for Tax Exempt Status Final Day to File for 2011 Property Tax Refund ; First Half of Payable 2011 Manufactured Home Tax is Due 2011 Abstract Due to Department of Revenue Second Half of Payable 2011 Tax is Due = Final Day to Apply for Real Estate Homestead gf,'S 4141' <SO Page 2 Anoka County City of Lino Lakes 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 2nd. 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 use the total assessment to determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of the assessment, including but not limited 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 private 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 is the consummation of a sale as of a specked 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 thereto; • 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 group 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. Page 3 Anoka County City of Lino Lakes 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 properties 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 2010 assessment, which was used for tax calculations this year (2011), was based on transactions that closed between October 1, 2008 and September 30, 2009. Property owners were notified of their 2010 value on their Notice of Valuation and Classification. The notices were mailed out in March of 2010 in the same envelope as the 2010 tax statement. The appeals process took place at the municipal level during the months of April and May, and at the county level in June. At this point, if a property owner wishes to appeal their 2010 assessment (for taxes payable 2011) their only option is to file a tax court petition. This must be done no later than April 30, 2011. The 2011 assessment has just been completed and Notices of Valuation and Classification have been mailed. This is the assessment that will be used for tax calculations next year, for taxes payable in 2012. The sales period associated with this assessment is October 1, 2009 thru September 30, 2010. As with past assessments, the local appeals process will begin in April and finish up in June. The options and requirements to appeal this assessment are listed on the back of the Notice of Valuation and Classification. If a property owner has an issue with their 2011 assessment the first thing they should do is contact their local assessor. The phone numbers for each area's assessors are listed on the notices. The following chart may be helpful in following the timeline of your assessment. SALES PERIOD ASSESSMENT DATE TAX YEAR 1, 2008 to September 30. 200 Jan ary 2, 2 October 1, 2009 to September 30,;2010 Janus Ootc oer1,2010 201 September So in review, by the time you are paying your 1st half real estate tax on May 15th, the sales that were used to determine the estimated market value on which those taxes are based occurred somewhere between 19 to 31 months earlier. Page 4 Anoka County City of Lino Lakes We are aware that due to the time frames we are required to work within, it sometimes seems as though the assessor's estimated market value does not represent the market. It is lower than is should be during times of inflation 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 in the open market. Note: The Median Assessors Estimated Market Value represents the homes that are in the sales study. Price /Assesao 000 $230.000 $222ra,0 0 $210!,000 $200 010 $190.000 :._... $180,000 $170,000 __.. Median Assessed Value as it Relates to Median Sale Price (an'e:zrrren: year bass col closed ,ales frem the pray' Oct Lbw Sep, ror tax Gar'at'le the fo lo,,np •,ear) 76 $160,000. ... ..._ __ CO 2003 TAX j 6 20 0l a TA 2pr, TA �i 0 r:,`C Ob 7?� �10i Ts 2 08 7u2� 2009 TAX a.. 2071 TA 2 PAYABLE PAYABLE PAYABLE PAYABLE PAYABLE PAY ,u£LE PAYABLE ELE PAYABLE PAYABLE 20(4 2005 22006 2007 20,:t8 1009 2010 2011 2012 Median Sale Price -40-Median Assessor's Estimated Market Value 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. The following year, in response to that market condition, the assessor's values were reduced to reflect that trend. And we have responded with lower assessed values each year since as the market continues to decline. One last important point to make note of is that the assessment process is completed prior to the start of the budget process. The assessor does not adjust values in order to increase tax revenue. There is little correlation between changes in assessments due to market changes and how the resulting real estate tax changes. When we adjust assessments due to market increases or decreases, all properties are adjusted upwards or downwards. The only time that an adjustment in an assessor's estimated market value will have an impact on the increase or decrease in the resulting 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. Page 5 Anoka County City of Lino Lakes How your tax amount changes from year to year is influenced more by legislative changes to the tax laws and revenues needed by your local taxing authorities (including school districts). With all other factors remaining the same, if we were to reduce all values by 50 %, this would not reduce the taxes by 50 %. Instead, the tax rates would be increased to generate the same tax revenue. The following example illustrates that basic concept. 249 Assessment fax Payable 24810 Property A B c D E RVN $375,000 $120,000 $150,000 $400,000 $250,000 Total Tax Base $1,295,000 2010 Tax Rat Revenue Needed Divided by Total Tax Equals Tax Rate 20141 Assess Tax Payable Property A B c D E Total Tax Base n EMV $187,500 $60,000 $75,000 $200,000 $125,000 $647,500 ion 2011 Tax Rate Calculation $10,000 $1,295,000 0.0077 Resulting 2010 Tax Calcu n Property A B c D E 2010 Tax Amount $2,896 $927 $1,158 $3,089 $1,931 Revenue Needed ..,- LJlvided by Total Tax Equals Tax Rate $10,000 $647,500 0.0154 sulting:2011 Tax Caicuiat Property A B C D E 2011 Tax Amount $2,896 $927 $1,158 $3,089 $1,931 Total Tax Generated $10,000 Total Tax Generated $10,000 Overall Change In EMV - $187,500, - $60,000 - $75,000 - $200,000 - - $125,000 - $647,500 Overall Change In Tax Amount $0 $0 $0 $0 $0 $0 The values are reduced which decreases the overall tax base. When the Tax Base decreases, the Tax Rate is adjusted upward to produce the same amount of revenue The Tax Amounts Remain the Same Adhering to the same timeframes and working within the parameters of the law will ensure that everyone is being treated fairly. If assessors were to choose to 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, 2009 through September 30, 2010, except for Blaine, where the assessor decided to use January 1, 2010 to December 31, 2010. Given the volatility in today's market, the Blaine 2011 assessments could be measurably lower than the rest of the county assessment. That lower tax base would not reduce the amount of county or school district revenues generated by real estate taxes; it would result in a shift in the tax burden from Blaine properties to all of the other properties in the county and any common school districts. While Blaine property owners would enjoy a lower tax bill, the rest of the county property owners would be unfairly paying a disproportionately higher tax amount to make up the difference. 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. Page 6 Anoka County City of Lino Lakes 2011 Assessment Statistics As of January 2, 2011 there were 7,860* parcels in the City. This total includes: Residential' Agricultural 87.68% 6,892 Residential and Agricultural Parcels 627 Exempt Parcels 195 Commercial and Industrial Parcels 93 Manufactured Homes 38 Tax Forfeit 7 Utility 4 Apartment Parcels 4 Personal Property Distribution of Parcel Count by Property Type Td x Exempt 7.98% Commercial Industrial 2.48°1 Other** 1.86% * Un- audited numbers - spring mini - abstract is not yet available. "Other includes Manufactured Homes, Tax Forfeit, Utility, Apartment and Person Property accounts. Page 7 Anoka County City of Lino Lakes 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 have 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 value 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; 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 Statute says all property shall be valued at market value, not may be valued at market 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. Page 8 Anoka County City of Lino Lakes In accordance with current state law we physically review all properties at least once every five years. Each year we also inspect all properties with new construction and at the request of the property owner. During 2010 there were over 1,300 properties reviewed, including 27 new homes and 9 new townhomes (up from a total of 24 new homes and townhomes the previous year). Cities Sections Legend - Evaluation ed Re- Evaluation This map illustrates the 2010 (2011 assessment for pay 2012) residential review area and the projected residential review area for 2011 (2012 assessment for pay 2013). Additionally, commercial and industrial properties valued at or below $350,000 are in the projected review for the coming year. Page 9 Anoka County City of Lino Lakes 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 each 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 enacted 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 written 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 notice 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 in 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. Page 10 Anoka County City of Lino Lakes Although the Local Board of Appeal and Equalization has the authority to increase 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 made 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 action. 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 person 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 taxability 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 current 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 upon 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 year 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 Minnesota 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 property and the interior of any buildings or structures. Page 11 Anoka County City of Lino Lakes 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 Board 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 to 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 signed 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 opportunity 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 Board 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 Statistics After thoroughly analyzing the sales that occur during the sales period, we establish the assessed value of all real property. During the 2010 study period for the 2011 assessment, we recorded 5,378 sales of all property types countywide. Of these sales only 34 %, or 1,855 were considered arms - length transactions. This is a slight improvement over the previous year when there were 5,223 recorded sales, with only 30% of them considered arms - length. In accordance with the results of these sales studies, certain areas of the city and certain styles and grades of homes may have adjusted values either lower or higher than the previous year's value. The new values reflect market trends during the period of October 2009 thru September 2010. Page 12 Anoka County City of Lino Lakes The 2011 assessment that is up for your review has a total unaudited assessed value of $1,738,766,200, excluding exempt, forfeit, utility, manufactured homes and personal property. It reflects an overall value decrease of 5.0% below the 2010 assessment. In comparison, the drop from 2009 to 2010 was 8.9 %, so the deflation appears to be slowing. The pattern of growth and decline (including new construction) in the City's total value can be seen in the following list and chart: Year Growth and Decline in Property Values 2004 to 2011 (Total does not include manufactured homes, personal property, utilities, exempt or tax forfeit property values.) Residen al Commercial Industrial Total Percent Property Property Es mated of Value Value Market Value Change 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 $2,000,000,000 $1,750,000,000 $1,500,000,000 $1,250,000,000 $1,000,000,000 $750,000,000 $500,000,000 $250,000,000 SO 2004 2005 2006 2007 2008 2009 2010 2011 Citywide Residential Assessed Value "" Citywide Commercial lridustriai Assessed Value Resider includes al property dassified Residential, Agrialtural and Apartment Commercial Industrial indudes all property dassified Col erdal, Industrial and Manuractred Home Park Page 13 Anoka County City of Lino Lakes Market Value Effect of New Improvements The next example is a more detailed breakdown of changes for the 2011 assessment when compared to the 2010 assessment. The chart shows the percentage of change in value not including value added for new improvements. And then it shows the change after including new improvement values. As you can see, the overall decrease in value is 5.5% when you don't include the value of new improvements and 5.0% when that value has been included. 2011 Percentof 2011 Percentof 2010 Es mated Change Es mated Change Market Value 2010:to2011 2011 Market Value 2010 to 2011 Es mated 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 Residen al Commercial Industrial Total 51,651,198,900 51,574,736,500 -4.6% 58,540,800 51,583,277,300 -4.1% 5179,463,200 5155,488,900 -13.4% $0 5155,488,900 -13.4% 51,830,662,100 51,730,225,400 -5.5% 58,540,800 51,738,766,200 -5.0% Residential indudes all property dassified Residential, Agrialtural and Apartment Commercial Industrial indudes all property classified Commercial, Industrial and Manufachred Home Park Page 14 Anoka County City of Lino Lakes Market Value Distribution by Property Type The charts below illustrate the relative distribution of estimated market value between residential properties (79.4 %), commercial & industrial properties (8.2 %), agricultural, apartment & manufactured home properties (3.8 %), and exempt, personal property, tax forfeit & utility properties (8.7%). The changing complexion of the city has been reflected in how the distribution of parcel counts and values have changed over the years. Residential and commercial properties had seen steady growth until the recent downturn in the real estate market, whereas the number of agricultural properties has steadily decreased as development has occurred. Es mated Percent of Property Type Market Total Es mated Value Market Value Residen al $1,513,812,800 79.4% Commercial Industrial $155,488,900 8.2% Agricultural, Apartment, Manufactured Home $71,694,800 3.8% Exempt, Personal Property, Tax Forfeit, U lity $166,525,700 8.7% Total Es mated Market Value $1,907,522,200 100.0% Es mated Market Value Distribu on by Property Type Residen al 79% Page 15 Commercial Industrial 8% Agricultural Apartment Manufactured Home 4% Exempt Personal Property Tax Forfeit U lity 9% Anoka County City of Lino Lakes 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 appeal, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 2. To calculate 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 stratified 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. 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. 3. A comparative market analysis is used to verify these estimates. The 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 analysis 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 assessed 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. Page 16 Anoka County City of Lino Lakes Sales 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 pressure 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 within the same jurisdiction. This adjusted median ratio must fall between 90% and 105 %. Any deviation will warrant a state mandated jurisdiction -wide adjustment of at least 5 %. In Anoka County, we have the ability to stratify the ratios by style, age, quality 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 these 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 properties 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 Page 17 Anoka County City of Lino Lakes 95% to give us a margin to account for a fluctuating market 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 ratio. 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 between the assessments 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 2011 pay 2012 market values and October 2009 thru September 2010 sales. These are the ratios that our office uses for countywide equalization, checking assessment accuracy, and predicting trends in the market. 2011 Anoka County Residential Sales Ratio Statistics Median Ratio 94.9 Aggregate Ratio 94.6 Mean Ratio 95.5 Coefficient of Dispersion on Median 7.0 Price Related Differential 101 Page 18 Assessment Year 2011 2010 2009 2008 2007 Municipality # Median Coeff 1 # Median Coeff 4 Median Coeff # Median . Coeff 4 Median Coeff . Andover 220 94.5 5.6 145 95 9 5.7 191 93.0 6.4 248 94.4 4.4 370 93.3 4.9 . Anoka 83 94.5 7. 61 95.5 8.1 75 94.5 7.0. 132 94.2 5.4 223 94.4 6.7 'Bethel 3 98.8 5.6: 3 97.9 2.0! 3 95.5 3.91 8 94.2 7.3 10 91.1 4 8 Blaine 400 95.4 7.1 344 95.6 8.7_ 325 94.8 5.71 590 , 94.0 6.2 868 93.6 5.5 Centerville 23 91.8 10.2 31 94.5 5.8, 34 95.8: 6.1 45 95.3 4.5i 75 93.6 7.5 Circle Pines 27 95.3 7.4 33 93.8 7.01 32 94.1 7.1' 54 94.7 4.6' 70 96.7 5.5 Columbia Heights 106 96.2 9.4 128 96.5 10.2: 134 94.6 8.3 194 94.6 9.1. 294 94.0 7.3 Columbus . us 16 95.9 9.6 18 94 0 6.9 26 94.7 7.2 20 97.7 7.0 29 96.4 11.2 e.. - - 5 6 275 94 8 8.3 Coon R ids 247 94.5 369 94.4 5.8 613 93.7 4.9! 1000: 93.7 5.21 East Bethel 52 96,1 13.4i 35 93.7 7.4 51 92.4 8.0 • 83 94.2 9.1' 137 97.2 5.9 'Fridley 117 95.0 7.41 126 94.4 9.9 160 94.4 8.0' 253 94.7 6.8' 317 93.4 6.1 Ham Lake 72 94.4 8.81 53 95.7 • 7.5 77 . 94.4 8.0- 97 93.6 6.3- 182 93.8 7.6' Hilltop 1 102.3 0 0 0 - - - 0 - - - 1 96.6 - - - 1 86.0 BLexington 5 96.1 8.1 7 96.2 3.8 5 94 9 13 93.2 8.9 25 92.9 9.3 Lino Lakes 108 95.2 6.7. 78 95.1 7.9' 1.07 93.0 :78 94.6 6.5 235 94.4 8.8 Linwood 23 . 97.2 9.31 15 96.6 6.4 20 93.8 8.1 51 95.7 9.4 85 91.0 16.2 .Nowthen (fka Bums) • 19 94.4 10.5' 15 95.3 16.0 7 92.4 6.7: 31 96.7 7.6 35 90 5 9.0 Oak Grove 33 94.5 9.2' 22 95.0 8.9 36 94.7 9.1 64 93,8 8.1 94 93.2 11.3 Ramsey 109 94.1 7.41.- 105 96.1 6.7 139 93.9 7 21 220 94.7 5.8 315 93.7 6.9 Spnng Lake Park '36 95 1..._ 9 4 30 92 1 7 5 42 94.8 6 7 59 93.6 4.8 69 96.1 4.8 St. Francis 34 95.2: 6.3, 24 97.2 6 6 32 94.0 4.5. 87 94.7 5.0: 129 93 7 4 3 County Total 1734 94.9 6 7; 1548 95.3 8.2 1865 94.3 6 9, 3041 94.3 6.1 4,563 93.8 6.3 Differential 101 10^ 101 101 99 r.nr.) :a County City of Lino Lakes Anoka County Ratio Study - 2010 Assessment Assessment Year 2006 2005 2004 2003 Municipality # Median Coeff 4 Median Coeff # Median Coeff : # Median Coeff • Andover 550 94.5 4 2 591 95 4 23.6 479 94 4 3.6 531 94.6 3 2 Anoka 257 94.9 7.1" 330 94,4 6.8 213 94.5 5 4 233 94.5 5 6 - Bethel 8 94.5 7A 23 99.9 27.7 7....... 94.4. 2.4 6 94 3 5 4 Blaine 1007 94.4 5.5 1428 95.7 17.6 900 94.4 ' 5.4; 845 94.5 4.9 'Centerville 1 84 94.7 6.3 106 93.7 9.1 74 94.3 5.51 77 94.5 6 4 Circle Pines 91 94.6 4.8. 174 94.6 7.5 52 94.4 4.1' 58 94.5 7 'Columbia Heights 380 94.6 8 3 383 91.9 11.5 255 94.3 7.0: 263 94.4 7.0 Columbus 29 99 8 18.2= 40 93.3 9.3 27 94.2 6.7: 32 94.6 7 4 =Coon Rapids 1268 94 5 5 8 1435 9-4.3 36.6 793 94.4: 5.4, 801 94.4 East Bethel ( 176 95.7. 17.71 202 92.0 . 13.8 169 94,7_ 7.4 139 94.6 7.3 ,Fridley 429- 94.7 8.4 441 98.0 7.7 290 94.5 6.5' 260 94.5 6.1 Ham Lake 191 94.5 6.41 312 97.0 43.4 232 94.3 5.4' 208 94.4 7 -0 -.Hilltop, 3 93.0 14_ 3 18.1 0 - -- 0 !Lexington 30 .. 94.3 _._._._.. 7 2 23 95.2 7.9 14 94.6 ._.,.,_.._ 4 1 _ 21 94.5 4 9 Lino Lakes 276 94.6 6.5' 284 92.5 17.6 264 94.4 7.1i 329 94.4 Linwood 66 94.4 9.31 75 94.3 Nowthen (fka Bums 44 94.2 5.2 91 95.2 Oak Orme 116 ' 94.9 8.4 129 97.0 ,Ramsey 379 94.6 6.7 561 95.7 Spring Lake Park 87 .94.5 8.8 112 94.9 6.4 71 94.4 43- 77 94-5 St. Francis 158 94.7 4.3 203 96.9 31.7: 250 94.4 5.0! 155 94.5: County Total 5,632 94.5 6.3: 7,000 95.2 21.7 4,693 94.4 5.71 4,597 94.5 5.9 4,971 Differential 101 111 101 ' 101 f 74 23.5 66 94.4 7.41 86 94.5 7 1 51.8 77 94.5 9.2` 50 94.4 8 4 45 11.8 109 94.6 6.41 116 94.4 8.5: 100 13.7 351 94.4 6.61 308 94.4 6 0' 339 44 91 5.9 2002 # Median Coeff 683 94.6 7.6 206 94.5 6.2 8 94.5 2.0 906 94 5 6.7 52 94.5 5.8 54 94.5 6.5 255 94.4 7 3 44 94.2 7 5 811 94.5 5.4 186 94.5 8.1 259 94.4 7.2 267 94.5 7.8 0 -„ 12 93.8 4.9 402 94 4 8.8 64 94 4 7.2 94 4 8.7: 94 4 9.2 94 4 6.3 945 5.9 157 94 4 7.2 94 -4 6.8 101 Page 19 Anoka County City of Lino Lakes 2011 Lino Lakes Residential Ratio by Zone 1 NUMBER MEDIAN COEFFICIENT NEIGHBORHOOD NEIGHBORHOOD OF SALES OF CODE DESCRIPTION SALES RATIO DISPERSION LLOO LL01 LL01 -5 LL02 LL03 LL04 LL08 LL09 DE RE SIDENTL 21/2 to 5 Acre Tracts 2000 & Newer Execu ve Homes Lakeshore 1950's & 1960's Homes 1990's & 2000's Homes 1970's & 1980's Homes Midrange Homes Lino Lakes Townhomes Nature Conserva on Area Plats 4 89.5 4.5 22 96.2 6 96.4 1.3 97.8 5 2 4 24 3 25 21 3 93.8 4.5 95.3 4.4 93.1 7.8 98.9 6.1 91.8 7.4 95.2 6.7 Page 20 Anoka County City of Lino Lakes 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 approvals. • 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. Page 21 Anoka County City of Lino Lakes ADDENDA Page 22 Anoka County City of Lino Lakes Statutes Minnesota State Statute 270.12 Minnesota State Statute 273.11 Minnesota State Statute 273.121 Minnesota State Statute 273.13 Minnesota State Statute 273.20 Minnesota State Statute 274.01 State Board of Equalization section 8 of subd. 2 outlines sales study period Valuation of Property Valuation of Real Property Notice Classification of Property Assessor May Enter Dwellings, Buildings, or Structures authorizes assessors to make assumptions if unable to gain access to structures Board of Appeal and Equalization subd. 1 b states that the board has no authority to make any change that would benefit the property owner if the assessor has been denied entry Minnesota State Statute 274.014 Local Boards; Appeals and Equalization Course and Meeting Requirements Page 23 Anoka County City of Lino Lakes 270.12 STATE BOARD OF EQUALIZATION; DUTIES. Subdivision 1.Commissioner of revenue constitutes board. The commissioner 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 office 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 following 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 shall 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 for 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 any 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 individuals, 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 hearing. 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 Department 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 categories 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 study 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 financing. 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 study 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. Page 24 Anoka County City of Lino Lakes 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 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 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 level 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 in 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 predominates 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. Notwithstanding 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 subdivision, 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 adjusted 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 commissioner 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 equalization 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 supplemental 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; 1 Sp 1986 c 1 art 4 s 10; 1987 c 268 art 7 s 20 21; 1988 c 719 art 5 s 84; 1989 c 277 art 2 s 12; 1989 c 329 aft 15 s 20, 1Sp1989 c 1 art 2 s 11; aft 3 s 1; art 9s9,10; 1991c291 art 1s7; aft 12s3; 1994c416art1s7 Page 25 Anoka County City of Lino Lakes 273.11 VALUATION OF PROPERTY. Subdivision 1. Generally. Except as provided in this section or section 273.17, subdivision 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. In 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 sell 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, shall 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 which 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 property 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, subdivision 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 with 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 the 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 between 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 subdivision 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 the 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, 2700.92, and 2700.94. Subd. 6. Solar, wind, 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 power 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. Page 26 Anoka County City of Lino Lakes Subd. 6a. Fire - safety sprinkler systems. For purposes of property taxation, the market value 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 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 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 property 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 corporation 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 members must have incomes at or Tess 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 than 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 median 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 fair 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 allowance 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 clause 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 membership, 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, contributions 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 principal 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 shareholders 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 interest in a cooperative organization which entitles the holder to an exclusive right to occupy a dwelling unit Page 27 Anoka County City of Lino Lakes 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 its 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 that 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 property 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 including 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 units 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 revoked. 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 perpetual 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 value 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 provisions 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 vegetation 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 -based 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, subdivision 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 neighborhood 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 Page 28 Anoka County City of Lino Lakes person or family applying for a unit in the neighborhood land trust 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 under 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 rented 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 remaining 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 proportions 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 income - 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 income - 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 test. 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, 2001, 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 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 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 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. Subd. 14a. Vacant land platted on or after August 1, 2001; located in metropolitan counties. (a) All land platted 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 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 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 determined under paragraph (a) and the market value based upon the highest and best use of the land as platted Page 29 Anoka County City of Lino Lakes 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 Iand.(d) For purposes of this section, "metropolitan county" 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 nonmetropolitan 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 paragraph (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 value 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 plats 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 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. 15. Vacant hospitals. In valuing a hospital, as defined in section 144.50, subdivision 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 the 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 transaction. 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 at 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 subdivision 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 market 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 than one two -car garage per residence qualify for the provisions of this subdivision. If an improvement was begun between January Page 30 Anoka County City of Lino Lakes 2, 1992, and January 2, 1993, any value added from that improvement for the January 1994 and subsequent assessments shall qualify 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 jurisdiction 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 order 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 board 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 property 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 who 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 property 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 value 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 disqualified 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 improvement 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 assessor 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 Page 31 Anoka County City of Lino Lakes reasonable 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 property 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, section 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 that 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 previous 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 flood 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 record, 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 assessment 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 subdivision, "population" has the same meaning given in Minnesota Statutes, section 477A.011, subdivision 3. Subd. 20. Valuation exclusion for improvements to certain business property. Property classified under section 273.13, subdivision 24, qualifies for a valuation exclusion for assessment purposes, provided all of the following 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 market 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 469.1813; 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 the assessor that an improvement was to be made. If the estimated market value of the building has increased over the Page 32 Anoka County City of Lino Lakes 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, and 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 for 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 damaged 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 conditions 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 following 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 subdivision la, 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 value due to new construction. Subd. 22. Lead hazard market value reduction. Owners of property classified as class la, 1 b, 1 c, 2a, 4b, 4bb, or 4d under section 273.13 may apply for 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 hazard reduction projects and must designate an agency within the city to issue certificates of completion 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 least $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 accompanied 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 valuation 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 la, 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 assessment 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 Page 33 Anoka County City of Lino Lakes privately owned public use airport, and (3) property consisting of the house, garage, and immediately surrounding one acre of land of an agricultural homestead.(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 990 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 8s4 -6; 1976c2s93; 1976c345s 1; 1977c423art 4s4; 1978c786s 10,11; 1979c303art2s 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; 1983c222s7 ;;1983c342art2s5 -7; 1984c502art 3s6; 1Sp1985c14 art 4s351986c444; 1 Sp 1986 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; 1989c356s13; 1990c480 art 7s51990c604 art 3s9; 1991c291 art 1s 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 14; art 11 s 3; art 12 s 9; 1994 c 416 art 1 s 13; 1994 c 587 art 5 s 3-5; 1995c1s 2; 1995c264art 16s9; 1996c471 art 3s5 1997c231 art 2s 10,11,52; art 8s2; 1997c251 s 16; 1998 c 397 art 11 s 3; 1999 c 243 art 5 s 6,7; 1 Sp2001 c 5 art 3 s 23 -26; 1Sp2002 c 1 s 14; 2003 c 127 art 5 s 15; 1 Sp2003 c 21 art 4 s 3; 2005 c 151 art 2 s 6; art 5 s 16; 1 Sp2005 c 3 art 1 s 8 -10; 2006 c 259 art 4 s 11 Page 34 Anoka County City of Lino Lakes 273.121 VALUATION OF REAL PROPERTY, NOTICE. Any county assessor or city assessor having the powers 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 property. 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 market value under section 273.11, subdivision 1 a, 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 established under section 274.13, subdivision lc, and the county board of appeal and equalization. The commissioner of revenue shall specify the form of the notice. The assessor 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 commissioner 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 to the commissioner of finance of the amount necessary to provide 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 363 s 1; 1975 c 437 art 8 s 7; 1980 c 437 s 3; 1982 c 523 art 23 s1; 1Sp1985 c 14 art 4 s 41; 1986c444; 1988 c 719 art 6 s 8; 1993 c 375 art 5 s 16; 1995c1s3; 1997c231 art 2s17, 1 Sp2001 c 5 art 7 s 20; 2002 c 377 art 10 s 5 Page 35 Anoka County City of Lino Lakes 273.13 CLASSIFICATION 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.[Repealed, 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 981 Subd. 5.[Repealed, Ex1971 c 31 art 22 s 51 Subd. 5a.[Repealed, 1Sp1985 c 14 art 4 s 981 Subd. 6.[Repealed, 1Sp1985 c 14 art 4 s 981 Subd. 6a.[Repealed, 1Sp1985 c 14 art 4 s 981 Subd. 7.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 7a.[Repealed, 1988 c 719 art 5 s 811 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 981 Subd. 8.[Repealed, Ex1967 c 32 art 4 s 3] Subd. 8a.[Repealed, 1 Sp1985 c 14 art 4 s 981 Subd. 9.[Repealed, 1988 c 719 art 5 s 81] Subd. 10.[Repealed, 1Sp1985 c 14 art 4 s 981 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 11 Subd. 14.[Repealed, 1984 c 593 s 46] Subd. 14a.[Repealed, 1Sp1985 c 14 art 4 s 981 Subd. 15.[Repealed, Ex1971 c 31 art 36 s 2] Subd. 15a.[Repealed, 1988 c 719 art 5 s 811 Subd. 15b.[Repealed, 1983 c 342 art 2 s 30] Subd. 16.[Repealed, 1 Sp1985 c 14 art 4 s 981 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 981 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 451 Subd. 19.[Repealed, 1Sp1985 c 14 art 4 s 981 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 la. In the case of a duplex or triplex in which one of the units is used for homestead purposes, the entire property is deemed to Page 36 Anoka County City of Lino Lakes be used for homestead purposes. The market value of class 1 a property must be determined based upon the value of the house, garage, and land. The first $500,000 of market value of class 1 a property has a net class rate of one percent of its market value; 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 1 b 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 disabled 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 exclusion 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 disabled 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 1 b property has a net class rate of .45 percent of its market value. The remaining market value of class 1 b property has a class rate using the rates for class 1 a or class 2a property, whichever is appropriate, of similar market value. (c) Class 1 c property is commercial use real 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 recreational 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 lc 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 lc property must 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 which 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 1 c is also class lc, 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 1 a property under paragraph (a). The remainder of the property is classified as follows: the first $600,000 of market value is tier 1, the next $1,700,000 of market value is tier II, and any remaining market value is tier III. The class rates for class 1 c are: tier 1, 0.50 percent; tier 11, 1.0 percent; and tier 111, 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 250 days in the year preceding the year of assessment desiring classification as class 1 c, must submit a declaration to the Page 37 Anoka County City of Lino Lakes assessor designating the cabins or units occupied for 250 days or Tess 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 as class 1 c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located 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 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 1 c. (d) Class 1 d 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 1 d property has the same class rates as class 1 a 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 land 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 1 a or 1 b property under subdivision 22. The value of the remaining land 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) Class 2a agricultural and 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 and 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 of 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 defined 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 Page 38 Anoka County City of Lino Lakes 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 Tess 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 forest 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 application 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 and is qualified. The commissioner of natural resources shall annually provide 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) Agricultural 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 products 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 dried 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 conservation 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 structures 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 parcels 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 pasturing 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 the 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. Classification 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, dairy 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 land 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 Page 39 Anoka County City of Lino Lakes 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 Department 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 products 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 1 b, 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 where 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 on 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. (I) 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 use 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 both 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 that 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 not 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 property 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 Page 40 Anoka County City of Lino Lakes 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 purposes 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 construction 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 mined, 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 subdivision 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, except 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 of 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 contiguous. 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 personal 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 railroad 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 eligible 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 transporting 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 Page 41 Anoka County City of Lino Lakes 3b. The class rates for class 3b property are determined under paragraph (a). Subd. 24a. [Repealed, 1 Sp2001 c 5 art 3 s 961 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 qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 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 Tess than four units that does not qualify as class 4bb, other than seasonal residential recreational property; (2) manufactured homes 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 residential 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 property; 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 1 a property under subdivision 22. Property that has 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 subdivision 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 not 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 occupancy, 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, launch 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 long 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 annual 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 purposes 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 other 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 Page 42 Anoka County City of Lino Lakes 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 Tess 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 remainder 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 demonstrating 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 course 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 refreshment 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 either 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) "charitable 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 taxes, 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 and 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 activities" 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 either 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 considered 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 eligibility. An organization meeting the requirement under item (ii) must file an application Page 43 Anoka County City of Lino Lakes 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) postsecondary 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 indoor 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 located, 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, prohibits 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 sale; (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 abuts 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 portion 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 assessment; 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 portion of the property used for purposes of a homestead by the owner must be classified as class 1 a 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, paragraph (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 sale 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 excluded. 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 public 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 classification. 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 Page 44 Anoka County City of Lino Lakes used for commercial purposes has the same class rates as class 4bb property, (ii) manufactured home parks assessed 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, and (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 assessor 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 must 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 needs 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 sections. 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 be 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 classification, if taxable. Subd. 26. [Repealed, 1987 c 268 art 6 s 531 Subd. 27. [Repealed, 1987 c 268 art 6 s 531 Subd. 28. [Repealed, 1987 c 268 art 6 s 53] Subd. 29. [Repealed, 1987 c 268 art 6 s 531 Subd. 30. [Repealed, 1988 c 719 art 5 s 811 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. [Repealed, 1998 c 389 art 2 s 211 Subd. 33.Classification of unimproved property. (a) All real property that is not improved with a structure must be classified according to its 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 the 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 of 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 Page 45 Anoka County City of Lino Lakes property owned by a veteran or by the veteran and the veteran'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, $150,000 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 additional 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 immediately 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 assessment 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 s3 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 791 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; 1973c590s1; 1973 c 650 art 14 s 1 2. art 20 s 3; art 24 s 3; 1973c774s1; 1974c545s3; 1974c556s 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; 1Sp1981c3s1; 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 7s1,2; 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. 1 Sp 1989 c 1 art 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 art 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; 1 Sp2001 c 5 art 3 s 32 -36; 2002 c 377 art 4 s 16,17; 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 effective 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 lc Page 46 Anoka County City of Lino Lakes homestead resorts are effective for taxes payable 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 taxes 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, chapter 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. Page 47 Anoka County City of Lino Lakes 273.20 ASSESSOR MAY ENTER DWELLINGS, BUILDINGS, OR STRUCTURES. Any officer authorized by law to assess property for taxation 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 reasonable 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 Page 48 Anoka County City of Lino Lakes 274.01 BOARD OF APPEAL AND EQUALIZATION. Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other goveming 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 or 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 or 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. The 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 adjoumed 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 adjoumment 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 that 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 the 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 entered 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 petition 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 property removed from the tax rolls.(e) A majority of the members may act at the meeting, and adjoum 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 proceedings, 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 items 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 classification 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 board 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 complaints 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 or 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 Page 49 Anoka County City of Lino Lakes 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 goveming body of any home rule charter or statutory 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 goveming body of a city transfers the powers and duties to the county board, the town board 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 transfer 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 transfer 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; 1971c564s6; 1973c123 art 5s71973c150s1; 1973c582s3; 1975c339s5; 1977c434s11; 1986c 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; 1 Sp2001 c 5 art 7 s 21; 2003 c 127 art 5 s 22; 1Sp2005 c 3 art 1 s 18 Page 50 Anoka County City of Lino Lakes 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 commissioner 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 legal 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 explanations 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 equalization 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 equalization 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 members 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, prior 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 altemate 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 Page 51 Anoka County City of Lino Lakes Appraisal Terminology CLASSIFICATION The class that a type of property 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 determined 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) Recently 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 purchaser 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 Toss of utility and, hence, value from any cause. An effect caused by deterioration 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 obsolescence 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 property, 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 CURABLE DEPRECIATION Physical deterioration which the prudent buyer would anticipate correction upon purchase of the property. The cost of effecting Page 52 Anoka County City of Lino Lakes the correction or cure would be no more than the anticipated addition to utility, and hence ultimately to value, 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 effecting 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 efficiency. 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 offset 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 desirability 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 obsolescence 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 use 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 unduly 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. Page 53 Anoka County City of Lino Lakes 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. Homestead 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 where 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. IMPROVEMENT A structure or building permanently attached to the land. INCOME APPROACH That procedure 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 future 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 which 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 in 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 reliability 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 conditions 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 consideration 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 of the two middle terms when the ratios are lined up from low to high. Page 54 Anoka County City of Lino Lakes 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 chains) 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 frequently. 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 brought 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 number 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 which 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 equalization 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 size, 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. Page 55 Anoka County City of Lino Lakes 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, while 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 taxing 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 preliminary 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 IMPROVEMENTS (THIS OLD HOUSE) Qualifying homes, 35 years or older, were previously eligible to receive a temporary exemption on all or a portion of the assessors 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 improvements 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 /paraplegic 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: Page 56 Anoka County City of Lino Lakes 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 final 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, classification 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 value 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 County 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. Their role is to ensure equalization among individual assessment districts and classes of property. The board meets during the second half of the month of June. Page 57 Anoka County City of Lino Lakes • 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 hearing 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 involving 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 official 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 jurisdiction 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 the following two pages is a sample Valuation Notice. Page 58 Anoka County City of Lino Lakes DH=R NAME cVwNER AC ORES t:t7f STATE Zi? Valuation Notice Front Notice o and Class' 'on — County of Anoka — This is not a bill ihs tvrrn bi b notify you dine mike ire and das94rsum d yov prod riy t> assessrret year 20011. The popery as rum pay i 3)12 w3 be biased on tilts stimaion and dass osto r Er pa mem; Odom contact your to +scar airy question* or par issues car *reserved ate . war quesions or arts are rtid we fsTP appeal glare are read the took of +is trite for rcraA drior to boor appeat per. Property rrernaoon is amiable we vie+in; Woozy - Eriaay, Goo a.m. - 43o p.m at be Malta Carty Govemment Center Roam 1E5 c Mk Researcr+Area, 210 VA*. Volta or Mite at wow= vil:ani us I Yr Taxaa Payable in 11) (For Taxer Payable in Ti E:00 PM Fi>N Partway' Jere 13.2i't1 E, EX) PM Anoka Pont) GOVITATIerd Cents Ancta Cant) Boartirtb - Rear 705 2100 3" Ave 55303 To Page 59 7 TO Anoka County City of Lino Lakes Valuation Notice Back Appealing the value or classification of your property Informal appeal options — Contact your assessor ff pork have ttoesiares or disagcewath the dasaica1ai cr estimated market rake ice yxr properly for 2011, please contact your assessors office test to discuss yep 0710Brnt. O tm your Issues ern be =dyed et fns level, Contact inforriatiat for you assessrx's Ace is on the other side of this Wee. Sane Prealootions choose b had open bottle meetings to anew property owners to demise they concetrrs path Pe assessor friths is an option await* to you; the meeting irne{s} and bcaborts} will be indrat d en the other tide d ties rile. Formal appeal options If your questions or concerns are mom a assessor, you have two Iwma appeal . Option 1— The of Appeal ono' Equalization You may appear bee the Boards a and Egtaafiabon m person, lira* a ice, fit trcup a representative auntor¢ed by you The ntcet ng tares and hxafians are tit the deter ride et fhFs make You must have presented your case to the Local Beard of Appeal and Equalization BEFORE appealing to the County Board of Appeal and Eglaflzakit Step 1 —Local Boatel of Anneal and Eauafnahon If you beiche your rake at dassdelion is edareri yw may hag re t11ee to the Local Board et Appeal ad Ecticezadln. Please nomad ytu assessors ate her rue rift:m atte ff yv, ay a boost* re kxlgtx has a Local Board cf Appeal and Eat izahan (as exicated en the aka side et trots nonce) you may appeal dearly to the Courty Board of Appeal and Espatzabort Step 2 — County Board of Appeal and Ettwaatiom If the Uscal Bead of Appeal and Etli iiation old nu reselvee your concerns, }raft may Ping your core to the Corn Bold tiAppeal and E ped:atbrt. You must cal m advance to get on the agenda Please cola/ *amity as sloes offee to get on the agorae rr for rrtrxe rfa mater Option 2 — Minnesota Tax G the type of appear you may take par case to ether the ladder or the Reigate Division of Tax Coot You have unit year in which taxes are payable to fie an appeal waif the 1 lrision u the Regtiar Drvb ken of Tax Cart for you 2011 dam -A:ale n. For more irnbmtaEiorn, =tact t the Itbnneeaa Tax Phone: 651 - 2962806 or 1.8E0-S27 -3529 websile: wwvr.taxcvfrist telrn.us Page 60 Definitions Dis. Vete Homers ead Market Value Quat1y'+g disabled veterans may be eligible valuations eoiclusion on thug homestead property. Estimated Market Value — This value is what the assessor estimates your property world likely set for on the open market Green Acme — Ippbes to cuss 2a agricultural property that is taring increasing values due to development per. s9ures rot related to the agrioItural value of ase it This value is de^:errnened by looking at Out comparable apinttnrai land is setting for n areas where there is rap ehveioprnent pressure. The taxes on the higher value are deferred keel the property is sold, t*arl:steed, into:been, re no longer piddled for eve program. oaz - Quualitymg businesses Wein a Job Opportirity Business Zone may be eligible der a patia` property tax exclusion, Plat Determent — For Lind tat has been recently Planed (divided into individual lots) but not yet improved with a structure, fine increased market value due to plattn) is phased in over time. ff construction begins, or if Ire tai is sod' belcre expiration cl phase-in period, the bt wit be assessed at fill market sabre in the next assessment Rural Preserve — NEWfor the 2411 Assessment - Apples b doss 2a agriesli+rai and bass 2b Meal vacant lard that s pan of a farm homestead or that had p eviaasfy been enrolled in Green Acres_ This value is de:ennired by looking 1 what comparable farmlands selling for it areas with no development pressure. The axes on he higher value are deferred so kng as the property is under a covenant ag•eemenrt and abelrg by the terns of a coreervakon a<sessmerm pan, Taxable Market Value — This is the Value hat your property taxes are wisely based on, after all reductions, exclusions; exerrgeboris, and deferrals. Your 2011 value, along wit+ the class rale and the budgets of your local government, writ determine how much you w[T pay in taxes in 2412. This Old House Esd s cn— This program expired with the 20€33 assessment i krwe+er, property may sM be re wing the value exclusion under this program. Qualifying properties wits improvements that increased he esimated market van by b5,c00 or mane were eigbie to have some o1 he value deferred b a madman d 10 yeas. After this me, the deferred value is phased n. Vaka of New tmprc vernrsb —This is the assessor's estimate 0f to value 0f new fir prenc+c*1y akassessed improverrxls s you have mark to your property, web. kv. : °.Sena mate net sc Anoka County City of Lino Lakes More housing statistics may be found on the websites of local area realtor associations. The following links will take you to two helpful websites. North Metro Realtors Association Housing Statistics http://www.northmetro.com/ communications /housinq- statistics- detail.php ?intResourcelD =4716 Minneapolis Area Association of Realtors Real Estate Market Info http: //m plsrealtor.com/market.aspx Page 61 WS — Item 2 WORK SESSION STAFF REPORT Work Session Item Date: April 4, 2011 To: City Council From: Jeff Karlson, City Administrator Re: Connect Anoka County Fiber Project Background During the March 28 work session, representatives from Anoka Co. were present to explain the Connect Anoka County Project for the construction of a broadband fiber network throughout Anoka County. The project will link 145 anchor institutions with three core rings, creating a 286 -mile backbone. The backbone will connect police, fire, public works, libraries, K -12 schools, colleges, city halls, and county buildings. Anoka County has held several meetings with representatives from the various public entities to go over the project details and to answer questions about the fiber optic backbone. The County was hoping to have all the community anchor institutions adopt a Connectivity Services Agreement by April 1, 2011. However, several concerns have been raised about the potential deficiencies in the Agreement. Since several questions came up about the project, the North Metro Cable Commission (of which Lino Lakes is a member) asked its telecommunications attorney, Steve Guzzetta, to review the Connectivity Services Agreement. Mr. Guzzetta pointed out several concerns he had with the agreement and drafted a revised agreement that addresses his concerns. His revised version of the agreement was sent to the County Attorney's Office for review. During the March 28 work session, Assistant County Attorney Kathryn Timm indicated that the County is not interested in making further revisions to the Agreement at this time. Ms. Timm and David Minke, Anoka County Deputy Administrator, will be available on Monday night to answer any questions the Council has about the Agreement. Staff will continue to gather more information about the project before Monday night's meeting. Attachments Connectivity Services Agreement w /Attachments March 21, 2011 Letter from Steve Guzzetta Connectivity Services Agreement With Community Anchor Institution(s) For Broadband Services At Co- location Service Site(s) This Agreement, entered into by and between: 1. COUNTY of Anoka (Anoka County), 2100 Third Avenue North, Anoka, Minnesota 55303; and 2. , (Entity), , Minnesota, 55 . WHEREAS, ZAYO Bandwidth LLC (ZAYO) was recently awarded a grant from the National Telecommunications and Information Administration (NTIA) which is to be combined with matching funds from ZAYO and Anoka County to build a fiber optic network in Anoka County to provide high -speed broadband services to Community Anchor Institutions; and WHEREAS, Anoka County has recently entered into a Master Fiber Indefeasible Right of Use (IRU) Agreement and a Wholesale Master Service Agreement with ZAYO in order to facilitate the purposes of the grant obtained by ZAYO; and WHEREAS, Anoka County and ZAYO have identified multiple Community Anchor Institutions to be connected by the Core Backbone and Distribution Network which will comprise the fiber optic network; and WHEREAS, Anoka County desires to arrange for co- location service sites at various Community Anchor Institutions which have been identified for the purposes of building the fiber -optic network; and WHEREAS, Connectivity Services will become available to each of the Community Anchor Institutions at the co- location service sites as a result of the fiber - optic network built by Anoka County and ZAYO; and WHEREAS, the Community Anchor Institutions will have the option of accepting Connectivity Services initially, or allowing the equipment to be installed and reserving the acceptance of Connectivity Services until a later time; and WHEREAS, Entity is a community anchor institution which owns, leases, controls, rents or administers a designated co- location service site; and WHEREAS, it is in the interest of Entity to work together with Anoka County to facilitate ZAYO in building the fiber optic network. March 28, 2011 Final NOW, THEREFORE, the parties hereto agree as follows: I. DEFINITIONS That the parties agree the following definitions for terms used in this Agreement: a) Community Anchor Institutions: quasi - government, government, educational and public safety institutions. b) Co- location service sites: designated physical sites located in various Community Anchor Institutions located in and around Anoka County. (See Attachment A.) c) ZAYO System: an integrated multi - cable, multi -ring fiber optic communication system comprised of cables and ducts, lateral connections, and the manholes and handholds locates therein, and related equipment required to provide Connectivity Services as provided through the NTIA grant. d) Connectivity Services: As described in Article V. e) Underlying Rights: all deeds, IRUs, (exclusive or non - exclusive) easements, rights -of -way agreements, licenses, grants, contracts and other rights, titles and interests to use real property of any third person, which are reasonably necessary for the construction, placement, location, installation, operation, use, IRU, rental, maintenance, repair or replacement by ZAYO or Anoka County, as the case may be, of the ZAYO System, Ducts, County Equipment, Cable or County Dark Fibers. f) IRU: Indefeasible Right of Use. g) Equipment: electronics, optronics, and other devices as necessary to deliver the Connectivity Services. h) Permitted use: Connectivity services shall only be used by Community Anchor Institutions for quasi - governmental, governmental, educational or public safety purposes and shall not be used to directly or indirectly compete with ZAYO. i) ZAYO Staff: Employees, consultants, and other sub - contractors working under the direction of ZAYO to install and support the ZAYO System. 2 I March 28, 2011 Final II. SCOPE OF SERVICES A. Anoka County will provide, through its contract with ZAYO, Connectivity Services to Entity through the fiber optic network built by ZAYO. Once the fiber optic network is built and the system is installed in the various co- location service sites, Anoka County, through its agreement with ZAYO, its successors and /or assigns, will provide ongoing support for the provision of Connectivity Services to Entity. Only site locations identified with fee amounts on Attachment A will receive Connectivity Services. Any mutually agreed changes to Connectivity Services will require a modification to Attachment A pursuant to section XII. B. Entity shall provide space for a co- location service site where ZAYO, on behalf of Anoka County, can install equipment to be connected to the ZAYO system in order to build the Fiber Optic network. Entity shall provide Underlying Rights to the co- location site to Anoka County for the purpose of building the Fiber Optic network to the point of demarcation. C. Nothing in this agreement affects or limits Entity's cable franchising authority or other authority to manage and regulate ZAYO's use of public rights of way. III. COSTS AND COMPENSATION A. A. To the extent that Connectivity Services are used by Entity, Entity will pay Anoka County a monthly fee as detailed in Attachment A. Fees reflect the actual costs to provide the Connectivity Services. For entities receiving connectivity services, the initial fee is established at $75.00 per month per site for 100 mbps and $400.00 per month per site for 1 gbps. Fees will be periodically reviewed to reflect current costs, but will not be modified without the agreement of both parties. Initially the fees will primarily be used to pay the proportionate share of the county's match to the project. Once the proportionate share of this match is recovered, it is expected the fee amount will decrease if other factors remain constant. Fees will be invoiced starting the 3 I March 28, 2011 Final month following when Connectivity Services begin. Entity will provide payment within 30 days of receipt of an invoice. Nonpayment shall be grounds for default. B. Entity shall not charge Anoka County, or ZAYO through Anoka County, for the Underlying Rights in the co- location site used by Anoka County and ZAYO to build the Fiber Optic Network. Additionally, Entity shall not charge rent, access fees, lease payments, or any other fee to Anoka County or ZAYO for the co- location space provided for the installation and housing of Equipment provided for connectivity service for Entity. IV. PHYSICAL ACCESS TO CO- LOCATION SITE A. Entity shall provide co- location space at co- location service sites indicated on Attachment A where ZAYO, on behalf of Anoka County, can install Equipment to provide services. Security shall be maintained at the site as indicated in Attachment B. Entity shall provide adequate power and temperature control as may be further detailed on the service order Attachment B. Entity shall provide all Underlying Rights and rights of access necessary for ZAYO to enter the premises and to construct and maintain fiber connections across the co- location service site whether the site is owned, leased, rented or administered by Entity. B. ZAYO, on behalf of Anoka County, shall provide, install, maintain, repair, operate and control its Equipment, as necessary. Unless specifically provided in Attachment A, there shall be no cost to Entity for the purchase and/ or installation of the ZAYO Equipment. Any ZAYO Equipment shall be maintained and replaced at no expense to Entity until the earlier of August 17, 2017, or this contract is otherwise terminated. Thereafter, if the ZAYO Equipment deteriorates, or no longer supports the provisioning of services, Entity agrees that it shall pay the prorata costs incurred in the replacement of such ZAYO Equipment. 4 i March 28, 2011 Final C. ZAYO, through Anoka County, may request permission to place additional ZAYO Equipment at the co- location service site indentified in Attachment A to solely service commercial customers. If Entity elects to allow such installation for commercial service at the co- location service site, ZAYO shall pay to Entity $250 per month for the first device, and $100 per month for each additional device. No co- location fees will apply if ZAYO Equipment used to provide services to Entity and to Anoka County if such ZAYO Equipment is also used to serve a commercial customer. D. The ZAYO Equipment shall remain the sole and exclusive property of ZAYO, and nothing contained herein shall give or convey to Entity any right, title or interest whatsoever in the ZAYO Equipment. The ZAYO Equipment shall remain personal property, notwithstanding that it may be or become attached to, or embedded in, realty. The ZAYO Equipment shall not be considered a fixture of that real property. Neither Anoka County nor Entity shall tamper with, remove or conceal any identifying plates, tags, or labels identifying ZAYO's ownership interest in the ZAYO Equipment. E. Equipment and service beyond the point of demarcation and /or interconnection between ZAYO's facilities and Entity terminal Equipment and the wiring at the point of demarcation shall be the responsibility of the Entity. F. Entity shall provide access to ZAYO on behalf of Anoka County to provide services for purposes of installation, maintenance and repair of ZAYO Equipment. ZAYO, on behalf of Anoka County, shall restrict access to the co- location site space to authorized ZAYO staff. ZAYO staff shall abide by any physical security requirements provided to ZAYO in writing. ZAYO shall make reasonable attempts to provide at least two days notice prior to entering the co- location site to install, maintain, or repair any of the ZAYO Equipment. If it is not reasonably possible to provide such notice, or in an emergency, ZAYO shall provide notice as soon as practicable, but in all events prior to entering the co- location site. See Attachments B and D. 5 March 28, 2011 Final G. If Entity provides its own Equipment, Anoka County, or ZAYO on Anoka County's behalf, shall have no obligation to install maintain or repair the Equipment. If, on responding to an Entity initiated service call, Anoka County, ZAYO and Entity jointly determine that the cause of the service delinquency was a failure, malfunction or the inadequacy of Entity's Equipment, Entity shall compensate Anoka County /ZAYO for ZAYO's actual time and materials expended during the service call. H. Neither party shall adjust, align, attempt to repair, relocate or remove the other party's Equipment, or ZAYO's Equipment, except as expressly authorized in writing by the other party or ZAYO. Prior to any installation of the SYSTEM, ZAYO will submit to Entity entrance and construction plans specifying the location, construction and method of installation related to the System. Entity shall respond to the plans with any objections as soon as reasonably possible, but in any event no later than 60 days. Entity shall immediately provide notice to ZAYO of known asbestos or other hazardous substances, pollutants or contaminants as defined by the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), Title 42, U.S. Code, or similar state or federal law. J. Entity shall provide to Anoka County 24 -hour contact information for the purpose of gaining co- location service site access. This information shall be used for both business hour and non - business hour services access. Entity will review and update the information provided as needed, but at least on an annual basis. See Attachment D. K. Entity shall not arbitrarily or capriciously require ZAYO to relocate ZAYO Equipment. However, upon ninety (90) days written notice, or, in the event of any emergency, Entity may require ZAYO to relocate co- located ZAYO Equipment; provided, however, the site of relocations shall afford comparable environmental 6 I March 28, 2011 Final conditions for the ZAYO Equipment and a comparable accessibility to the ZAYO Equipment. V. CONNECTIVITY SERVICE LEVEL REQUIREMENTS A. Anoka County, through its agreement with ZAYO, shall provide Connectivity Services to Entity at the capacity level indicated in Attachment A. Any upgrades to service will be dependent on costs of Equipment, fees to ZAYO, capacity limitations of the network, and other relevant factors. Entity recognizes that the network has a total bandwidth of 10GB on the core ring and 1GB on distribution rings and distribution laterals. This total capacity is shared among other Community Anchor Institutions which are part of this project. Entity agrees to work with Anoka County to manage bandwidth and equitably resolve capacity issues on the network. B. Dark fibers will be installed at each co- location service site as indicated in Attachment A. These dark fibers will be terminated at the site and are reserved for future use. This agreement neither contemplates nor conveys to Entity present or future rights to the use of the dark fiber. Any future use will be by a separate agreement and at an additional cost. C. Entity may use the network only to provide service to itself, and agencies and departments of the Entity in keeping with the Permitted Uses of this Agreement. D. Transport Availability: The transport services being provided will meet or exceed 99.999% network availability for protected optical service, 99.99% for protected TDM based services such as DS3s and DS1s and 99.9% for unprotected services as measured on a monthly basis. If Network Availability is below the percentage above in two out of the three preceding calendar months not due to an Excused Outage, the same shall constitute an event of default hereunder. 7 March 28, 2011 Final E. Ethernet Availability: The Ethernet Services being provided will meet or exceed 99.9% network availability for unprotected service and 99.95% for protected service as measured on a monthly basis. If Network Availability is below 99.9% for unprotected circuits and 99.95% for protected circuits in two out of the three preceding calendar months not due to an Excused Outage, the same shall constitute an event of default hereunder. F. Mean Time To Repair (MTTR): ZAYO's MTTR will be four hours for protected services and eight hours for unprotected services as measured on a monthly basis for outages of the services provided or any part of the services provided; for example an individual DS3 or group of DS3s. If ZAYO's MTTR for all protected services is greater than four hours in two out of the three preceding months not due to a Force Majeure Event such occurrence shall constitute an Event of Default on the part of ZAYO, on behalf of Anoka County, for the affected circuit. VI. TERM This Agreement will be for a period commencing on the date of signing by both parties, and continuing until August 16, 2015 (Initial Term), with up to a total of three (3) renewal periods of additional five (5) years terms (Renewal Terms) upon written amendment. Both parties shall provide written notice of intent to renew this agreement not less than one hundred eighty days (180) before the end of the Initial Term or Renewal Term. For purposes of this agreement, written notices shall be sent to the addresses of each of the Parties as indicated above. Upon the termination or expiration of this Agreement, Anoka County shall have no further obligation to provide Services and no further liability to Entity. Upon termination or expiration of this agreement, ZAYO shall be provided a reasonable opportunity to retrieve its equipment from the co- location service site(s). Any underlying rights granted by the Entity under this Agreement shall terminate or expire with the Agreement without need for further action or notice by any party. 8 I March 28, 2011 Final VII. INDEMNIFICATION To the extent permitted by law, each party shall indemnify, defend and hold harmless the other party, it's commissioners, council members, school board members, superintendents, directors, officers, employees and agents, successors and assigns, from all damages, costs, expenses and liabilities, including reasonable attorney's fees and disbursements, sustained in any action commenced by any third party in connection with the indemnifying party's performance of its obligations and duties under this Agreement except those damages, costs, expenses, and liabilities arising from the negligence or willful misconduct of the other party. The indemnified party shall promptly notify the other party in writing of any such law suit or claim. Under no circumstances shall a party be required to pay on behalf of itself and other parties, any amounts in excess of the limits on liability established in Minnesota Statutes, Chapter 466, or any similar statutory limits on tort liability. VIII. INSURANCE During the Initial Term, and during each renewal term, each party shall obtain and maintain not less than the insurance set forth in Attachment C. IX. LIABILITY AND LIMITATIONS OF LIABILITY A. Entity shall be liable for any Toss of or damage to the ZAYO Equipment at the co- location site caused by Entity's negligence, intentional acts, willful misconduct or unauthorized maintenance subject to statutory limits. Entity shall reimburse Anoka County on behalf of ZAYO for the reasonable cost of repair of the ZAYO Equipment, or the replacement thereof, within thirty (30) days after receipt by Entity of a written request for reimbursement. 9 I March 28, 2011 Final B. Anoka County shall be liable for any loss of or damage to Entity's equipment caused by Anoka County or ZAYO's negligence, intentional act, willful misconduct or unauthorized maintenance. Anoka County shall reimburse Entity for the reasonable cost of repair of the equipment, or the replacement thereof, within thirty (30) days after a written request for reimbursement and ZAYO has reimbursed Anoka County for the Toss or damage pursuant to Anoka County's Agreement with ZAYO. Anoka will make reasonable effort to pursue reimbursement on the Entity's behalf. C. Anoka County shall not be liable for delays in installation, commencement or restoration of the service; for any temporary or permanent cessation of service; for errors, malfunctions, delays or defects in transmission of the service; for loss or damage occasioned by a Force Majeure Event. Anoka County's liability for any and all causes and claims whether based in contract, warranty, negligence or otherwise shall in no event exceed: 1) an amount equivalent to the proportionate charge by Anoka County to Entity for the period of service affected, or 2) if applicable, the replacement value of any Entity equipment which is lost or damaged as a result of Anoka County's gross negligence or willful misconduct. D. ANOKA COUNTY NEITHER ASSUMES NOR MAKES ANY WARRANTY, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE AS TO THE DESCRIPTION, QUALITY, MERCHANTIBILITY, COMPLETENESS OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE OF THE SERVICE, LOCAL ACCESS OR ANY OTHER MATTER, EXCEPT AS SET FORTH IN THIS AGREEMENT. SUCH WARRANTIES ARE HEREBY EXCLUDED AND DISCLAIMED. X. FORCE MAJEURE Neither party individually and Anoka County on behalf of ZAYO shall be liable for any failure of performance hereunder due to causes beyond its reasonable control including, but not limited to acts of God, fire, explosion, vandalism, cable cut, flood, storm, or other similar catastrophe, any law, order, regulation, direction, action or 10 I March 28, 2011 Final request of the government, or any department, agency, commission, court, or bureau of a government, or any civil or military authority, national emergency, insurrection, riot, war, strike, lockout, or work stoppage (each a "Force Majeure event "). The party claiming relief under this section shall notify the other party of the occurrence or existence of the Force Majeure event and of the termination of such event. In the event Anoka County through ZAYO is unable to deliver services as a result of a Force Majeure event which precludes ZAYO from performing, the other party shall not be obligated to pay for the services so affected for as long as ZAYO is unable to deliver the Services. XI. COMPLIANCE WITH LAWS In providing all services pursuant to this Agreement, the parties shall abide by all statutes, ordinances, rules and regulations pertaining to or regulating the provision of such services, including those now in effect and hereafter adopted. Any violation of said statutes, ordinances, rules, or regulations shall constitute a material breach of this Agreement and shall entitle the Parties to terminate this Agreement immediately upon delivery of written notice of termination. XII. MODIFICATIONS Any material alterations, modifications, amendments, or variations of the terms of this Agreement shall be valid and enforceable only when they have been reduced to writing as an amendment and signed by the parties. XIII. DATA PRIVACY In collecting, storing, using and disseminating data on individuals in the course of providing services hereunder, the parties agree to abide by all pertinent state and federal statutes, rules and regulations covering data privacy, including, but not limited 11 I March 28, 2011 Final to, the Minnesota Government Data Practices Act and all rules promulgated pursuant thereto by the Commissioner of the Department of Administration. All data created, collected, received, stored, used, maintained, or disseminated by the parties in performing this Agreement is also subject to the provisions of Minn. Stat. § 13 et. seq. (the Minnesota Government Data Practices Act) and, pursuant to that statute, the parties must comply with the requirements of that statute. All remedies set forth in Minn. Stat. § 13.08 shall also apply to the parties. XIV. EARLY TERMINATION This Agreement may be terminated by either party at any time, with or without cause, upon One Hundred Eighty (180) days written notice delivered by mail or in person. If notices are delivered by mail, they shall be effective two days after mailing. XV. DEFAULT AND REMEDY A. Default by Entity: Entity is in default of the agreement if Entity: 1) is more than 15 days past due in paying for services as agreed in this Agreement, or any invoice pursuant to its terms, excluding those amounts which Entity has notified Anoka County as reasonably being in dispute; or 2) materially fails to observe or perform any non - monetary obligation or covenant hereunder; or 3) files or initiates proceedings or has proceedings filed or initiated against it, seeking liquidation, reorganization or other relief(such as the appointment of a trustee, receiver, liquidator, custodian or such other official) under any bankruptcy, insolvency or similar law; or 4) violates the permitted uses. In the event of default by Entity, notification of Default shall be sent to the address provided below in Section XVI. Entity shall have five days to cure a monetary breach, or thirty days to cure a non - monetary breach. If the Default remains uncured, 12 March 28, 2011 Final Anoka County may suspend services until Entity remedies the Default, terminate or suspend services under this agreement and /or the applicable services being provided under the service order. If Anoka County terminates this Agreement pursuant to this article of the Agreement, Anoka County shall have the right to seek full payment for amounts due for services rendered prior to the date of termination. B. Anoka County shall be in default under this Agreement if it: 1) fails to arrange for ZAYO to provide the services in accordance with the Service Order (see Exhibit E) or otherwise fails to cure any breach of the Agreement after receiving written notice of default from Entity; or 2) defaults on its agreement with ZAYO and does not cure said default within five days for a monetary breach or thirty days of a non - monetary breach of that agreement: or 3) fails to notify Entity of default by ZAYO within five days of said Default, or fails to notify Entity that ZAYO has alleged that Anoka County is in Default, within five days of receipt of notification from ZAYO. Notification of Default by Anoka County shall be sent to the address provided below in Section XVI. Anoka County shall have five days to cure a monetary breach and thirty days to cure an non - monetary breach of the agreement. If Anoka County is caused to be in default of this agreement by the breach of ZAYO, Anoka County shall notify ZAYO in writing and allow ZAYO thirty days to cure, or such longer period of time as may be reasonably necessary to cure as long as the cure is initiated and diligently pursued within such thirty days or provide notice of a dispute about the existence such default. However, Entity and Anoka County may terminate this agreement upon written notice if ZAYO causes Anoka County to default by not meeting the terms of Article V. CONNECTIVITY SERVICE LEVEL REQUIREMENTS as noted above. XVI. NOTICES Notices shall be sent to the parties at the following: 13 March 28, 2011 Final Anoka County: Entity: Information Technology Director Anoka County Government Center Information Technology Department 2100 Third Avenue North Ste. 300 Anoka, Minnesota 55303 , Minnesota 55 XVII. AFFIRMATIVE ACTION In accordance with Anoka County's Affirmative Action Policy and the County Commissioners' policies against discrimination, no person shall illegally be excluded from full -time employment rights in, be denied the benefits of, or be otherwise subjected to discrimination in the program which is the subject of this Agreement on the basis of race, creed, color, sex, sexual orientation, marital status, public assistance status, age, disability, or national origin. XVIII. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations, warranties, covenants, and agreements of the parties under this Agreement, and the remedies of either party for the breach of such representations, warranties, covenants, and agreement by the other party shall survive the execution and term of this Agreement. XIX. WAIVER. 14 I March 28, 2011 Final The waiver of any of the rights and /or remedies arising under the terms of the Agreement on any one occasion by any party hereto shall not constitute a waiver of any rights or remedies in respect to any subsequent breach or default of the terms of the Agreement. The rights and remedies provided or referred to under the terms of the Agreement are cumulative and not mutually exclusive. XX. GOVERNING LAW. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota, excluding the State of Minnesota's choice of law provisions. Jurisdiction and venue shall reside in the County of Anoka, Minnesota. XXI. SEVERABILITY. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement. XXII. NO RIGHTS OF THIRD PARTIES. Except for specific provisions as related to ZAYO acting through the auspices of Anoka County, nothing in this Agreement is intended to confer any rights or remedies on other than the parties to the Agreement XXIII. ATTACHMENTS AND EXHIBITS. The following Exhibits are attached to this agreement and are incorporated into this agreement by reference: Attachment A: Capacity and costs for each co- location service site Attachment B: Co- location service site requirements Attachment C: Insurance Requirements Attachment D: Building Access Contact Information Attachment E: Service Order Form Attachment F: Frequently Asked Questions (FAQ) 15 I March 28, 2011 Final The following Attachments are included for reference in this agreement and are informational exhibits, but do not confer any rights onto the Entity unless also specifically included in this agreement: Attachment G: Wholesale Master Service Agreement, Anoka County Contract #2010 -0239 Attachment H: Master Fiber IRU by and between ZAYO BANDWIDTH, LLC and Anoka County, Minnesota dated August 17, 2010 (this exhibit does not include 20 pages of photographic exhibits which are included in the original, and are available to Entities on request.) XXIV. AUDIT, DISCLOSURE AND RETENTION OF RECORDS Both parties agree to make available to duly authorized representatives of the other and of the State of Minnesota, for the purpose of audit examination pursuant to Minn. Stat. § 16C.05, any books, documents, papers, and records of the party that are pertinent to the provision of services hereunder. Both parties further agree to maintain all such required records for six (6) years after receipt of final payment and the closing of all other related matters. XXV. INDEPENDENT CONTRACTOR A. Anoka County has entered into a separate contract with ZAYO for the construction of the ZAYO system /fiber optic network. See informational Exhibits G and H. ZAYO remains an independent contractor, however, and neither that agreement nor this one creates a partnership, joint venture or agency relationship between Zayo or the County. Anoka County has no authority to bind ZAYO beyond the obligations and responsibilities of those contracts. B. It is agreed by the parties that at all times and for all purposes hereunder, the relationship of the County to the Entity is that of an independent contractor and not an employee or agent of the Entity. C. It is agreed by the parties that at all times and for all purposes hereunder, the relationship of the Entity to the County is that of an independent contractor and not an employee or agent of the County 16 March 28, 2011 Final XXVI. ENTIRE AGREEMENT It is understood and agreed by the parties that the entire agreements of the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the Anoka County and Entity relating to the subject matter hereof. The parties hereto revoke any prior oral or written agreement between themselves and hereby agree that this Agreement is the only and complete agreement regarding the subject hereof. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above, notwithstanding the date of the signatures of the parties.. ANOKA COUNTY By: By: Rhonda Sivarajah, Chair County Board of Commissioners MINNESOTA Dated: Dated: ATTEST ATTEST By: By: Terry L. Johnson County Administrator Dated: Dated: APPROVED AS TO FORM APPROVED AS TO FORM 17 March 28, 2011 Final By: By: Kathryn M. Timm Assistant County Attorney Dated: Dated: 18 March 28, 2011 Final Attachments Attachment A: Capacity and costs for each co- location service site Attachment B: Co- location service site requirements Attachment C: Insurance Requirements Attachment D: Building Access Contact Information Attachment E: Service Order Form Attachment F: Frequently Asked Questions (FAQ) Attachment G: Wholesale Master Service Agreement, Anoka County Contract #2010 -02391 Attachment H: Master Fiber IRU by and between ZAYO BANDWIDTH, LLC and Anoka County, Minnesota dated August 17, 2010 (this exhibit does not include 20 pages of photographic exhibits which are included in the original, and are available to Entities on request.) ' Note Bene, the MSA has two attachments which W4t1 be amended, but have not been so at the time of this writing. The list of 145 co- location sites has been altered since the MSA was signed on August 17, 2010. Once the final sites are approved by the NTIA, this attachment will be amended. Additionally, there is an attachment which details minimum power requirements at the co- locations site of 48 volts DC. The County and Zayo verbally agreed that these requirements will be changed to standard 110 AC. This verbal agreement has not been reduced to writing as of the date of this writing, but is expected shortly. 19 March 28, 2011 Final ATTACHMENT A Capacity and Costs for Co- location Sites 1. Entity Name: MINNESOTA 2. Entity Contact Information: Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Principal Contact: Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Secondary Contact: Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Billing Contact: 3. Following are the site locations included for equipment co- location: Site # Location Address City Service Monthly l Capacity Costs 20 I March 28, 2011 Final Attachment B Co- Location Service Site requirements A. Security Requirements. Entity shall provide best practices physical security to the co- location service site in the form of traditional lock service, key card, numeric access code, or electronic security system equal to that which Entity provides for its own assets. Keys, key cards, numeric access codes and the electronic security systems shall be maintained according to industry standards. Entity shall take all reasonable precautions to ensure the integrity of the security of the co- location service site. Anoka County shall make reasonable efforts to ensure that its employees and agents, including ZAYO, follow all written instructions at the co- location site as provided by the Entity. B. Temperature and Environmental Control Requirements. Space provided to ZAYO for the housing of the ZAYO system and equipment in the co- location service site shall meet industry standards for temperature controls, humidity, lighting, and protection from power surges and outages. Entity shall ensure that the co- location service site temperature remains in a constant range between 68 °F and 83 °F, and humidity remains in a constant range of 40 % - -60 %. Entity shall use best efforts to implement a protection plan ensuring that the ZAYO System remains functional in the event of a power outage or similar emergency. C. Environmental Space Requirements. Entity shall provide sufficient cubic space for the installation of the ZAYO system and equipment in a secure area. ZAYO shall provide the space specifications for each co- location service site directly to Entity. Entity shall ensure that the space provided to ZAYO for the installation of the ZAYO System and equipment will also include sufficient space for ZAYO to access the equipment for repairs, maintenance and upgrades. The space will be convenient to the demarcation point, and will include any necessary space to install cable, conduit, fiber, and or circuitry from the demarcation point to the equipment. 21 I March 28, 2011 Final Attachment C Insurance Requirements Insurance Limits. During the Term, each party shall obtain and maintain not less than the insurance set forth below: Worker's Compensation: Statutory limits. Automobile Liability Insurance: Such policy coverage will include coverage for all vehicles owned, hired, non - hired, non - owned and borrowed by the party in the performance of the obligations covered under this agreement: Combined single limit: $1,000,000.00 Commercial General Liability and /or Umbrella Liability: All liability insurance must meet the requirements of Minn. Stat § 466.04 subdivision 1 (a) (3) or $500,000.00, minimum liability for claims of death by wrongful act or omission and $500,000.00 to any claimant in any other case, whichever is greater. All liability insurance must meet the requirements of Minn. Stat. § 466.04 Subdivision 1 (a) (7) or $1, 500,000.00 minimum liability for any number of claims arising out of a single occurrence, whichever is greater. All umbrella insurance must meet the requirements of Minn. Stat. §466.04 Subd. 1(a) (8). Umbrella insurance coverage must be on a "follow- form" basis. The above minimum requirements as to insurance coverage shall not limit the liability of either party under this agreement. The above limits may be satisfied using a combination of primary and excess coverage, self insurance as provided by Minn. Stat. § 471.981. Each Party shall obtain and maintain the insurance policies required above with insurance and /or reinsurance companies authorized to insure risks in Minnesota. With the exception of Worker's Compensation, each party, its Affiliates, and their officers, directors and employees and any other person entitled to indemnification hereunder, shall be named as additional insured to the extent of such indemnification. Each Party shall provide the other party with a certificate of insurance showing that the party has complied with the insurance requirements of this Attachment. Each insurance policy shall contain a provision providing such other party with thirty days advanced notice of 22 I March 28, 2011 Final any cancellation or material change in coverage at which time such party will notify the other party immediately of such cancellation or material change in coverage. Deductible/ Self Insured Retentions: All proof of insurance shall clearly set forth deductible or self insured retentions. Each Party shall be responsible for its deductible and /or self insured retentions. 23 I March 28, 2011 Final ATTACHMENT D Building Access Contact Information Entity shall provide 24 hour, seven day a week access to ZAYO for the ZAYO System equipment housed in the Co- location service site for the purposes of maintenance, service, upgrade and repairs of the equipment and system. Such access will include the name and contact information of co- location site key - holder for business and non - business hour access. All access shall comply with written instructions provided to ZAYO and County (see section IV.F). Please provide contacts below. Business Hour Contact(s) — List contacts in the order you would like them to be called. Provide a minimum of 2 contacts (you may provide as many as you would like). Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Contact #1 Name: Position: Office Phone: ( ) Cell Phone: ( ) Home Phone: ( ) Pager: ( ) Email: Name: Position: Office Phone: ( ) Cell Phone: ( ) Home Phone: ( ) Pager: ( ) Email: March 28, 2011 Final Contact #2 Contact #3 24 Non - Business Hour Contact(s) — List contacts in the order you would like them to be called. These contacts should have keys for building access to the co- location equipment area and be available after hours. Select people you would like called in case of such emergencies as equipment failures, fiber hits, storm damage, emergency locates, etc. Provide a minimum of 2 contacts (you may provide as many as you would like). Name: Position: Office Phone: Cell Phone: Home Phone: Pager: Email: Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Name: Position: Office Phone: CeII Phone: Home Phone: Pager: Email: Contact #1 Contact #2 Contact #3 Updates may be submitted to Anoka County IS at address provided in the Notices Section. 25 I March 28, 2011 Final EXHIBIT E EXAMPLE SERVICE ORDER FORM Service Order Form Page 1of2 Order Inf emetic n Account Nate Customer- Name Phone Number Em ail Address Test Account We Kinney (303) 381-3237 witiorneyezaricern New SstcvBce Or Contact Details arm 1ae Cutter I0} CuterT)pe Setv#ceTermf MSA CrrPO 36 test Prochict Debts Product Fatty Private Life Product Cagy Pant to Pr l &IN: a is Clra ()peons 4363 0.114t UndissirkSzed Budsda St, tstPPAM Neff York, NY 10013 Debits & Mr9 status On-Net CFAProttled Et), Zara CFAlata orf Zara Ort-t Praiactieet Welts* star Losai At Pak Mersey Lon! Nebessrt Yes. PrntecNne Probacton Debts* C efiletwor1[ Mee Pak Mersey Ome-Netwat Ptbtectinn Muse Snit sepaonnn Z- Location 401 N &cad St State 990 Ra, PA 19123 Prolacttorf Debar Hamar D3-3 (C) Smtie Welk Bang Statue On-Nst CFA. Resided By Zaya Yes Yes. ND Entrame Location Zar QOE4 et local FlberPatif Olvensity becat Network Protest Pdvale Ike Prta Lire &ocel tItem Deed Instaaillm Fee M3rdtef Fteruring OtsagesTatat ter Remising Charges Totat Expiration Date Riling 1 57:50.10 1`. 57 Si;500Dni EXHIBIT E EXAMPLE SERVICE ORDER FORM Page 2 af 2 e +rdoaa st+r arm+ .d i es. a n+� deem t a es . . seelesesse mit gad yodel, ebels s d r.risr.l bless des dur2oa new Kos. 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S'.sr i- ...p.+or es Ea vd of Fes isms -"Srm steel read €a fw cvre.trlae•• -yr is e...5,.�: Omens sod fill is. trw Kepitsabk W A, sod servci.r have e * - .Aitr, Itr your wt.*, 9n rcW rrntww:+rite) sr .i fBntF§d, in C. rxa roxemsic Loci tM.oAt SY:frdan ilacears sd!ueiot at xsi b. wiersi wriim r.d byte, . ap esi eye it er..rimed`aWeis tom Si�sseVe.nstsefao isd[dv wises .se ai'tes masks, d bar rt"�ri =r'/7seseistesd 3n Sw wort du &tau Issisi a.besseer derail ea Cn nesergssetseesesin Sonia Owe network it darned c rrlf.af•: .3'red' t e'a adr+r.p!Lid .a,:iyu ms adr eehr ■mnag9 =la comed rr+r+ra.s,7.rdQ *asoassi rM1n ucurie eiE C"s bra and an cmeacr d .wise dca.cnex» A sumesc.i Ls.S etoe.. .arrn:.t wwJ hn+rrdy n.r t rum* LEC Ftii¢Nferj rd t t ri3rrsid Attachment F Connect Anoka County Frequently Asked Questions 1. What is Connect Anoka County? Connect Anoka County is the county -led effort to increase the amount of fiber optic cable in the county. The Connect Anoka County project has resulted in a partnership between Zayo Bandwidth, LLC and Anoka County. Through the partnership, Zayo Bandwidth applied for and received a National Telecommunications Information Administration (NTIA) grant paying 70 percent of the fiber construction cost and initial equipment. The grant project will construct an approximately 286 mile fiber network throughout Anoka County linking 145 governmental institutions. 2. Who owns the fiber optic cable? The fiber optic cable that is installed as part of the grant will be owned by Zayo Bandwith. Zayo will provide the capacity services for the governmental network and separately offer connectivity services to the private sector. The grant will also provide dark fiber strands for Anoka County use. The right to use these dark strands is conveyed to the county through a fiber Indefeasible Right to Use (IRU), which is similar to a long -term lease. Should the county decide to use the dark fiber, equipment will need to be purchased and a monthly maintenance fee paid to Zayo. 3. What are the project costs and how are they paid? The total grant- funded project budget is $19.1 million. Seventy percent of the costs ($13.4 million) will be paid by the NTIA grant. The balance of the project ($5.7 million) will be paid equally by Zayo Bandwidth and Anoka County ($2.8 million each). The county intends to recoup a portion of the $2.8 million match by charging the anchor institutions a proportional share based on a per connection charge. 4. What services are offered? The project is only providing connectivity, meaning that any governmental institution will still need to have an Internet Service Provider (ISP). The county purchases its ISP service from the State of Minnesota, Office of Enterprise Technology (OET) and is in discussions with OET to expand ISP services to include cities that are a part of the project. If this option becomes available, Cities will be notified. 5. How were the 145 anchor institutions decided upon? The agreements between Anoka County and Zayo Bandwidth specify 145 governmental and quasi - governmental anchor institutions as a part of the grant project. The list was made by asking each jurisdiction to submit a list of facilities to include in the project. As the project developed, some sites were added and others dropped at the request of the entities. NTIA will need to approve all changes. 6. Can sites be added in the future? The agreements between Anoka County and Zayo Bandwidth limit the number of sites to 145. Any additional sites on the network will require a service request to Zayo Bandwidth. As additional governmental sites require fiber, each entity will need to conduct an analysis as to the most cost - effective way to serve the location. In some cases it may be possible to connect through one of the original 145 sites. In other cases it may be cost effective to have Zayo Bandwidth or another private company serve the facility. March 7, 2011 1 7. What is the project schedule? The project is currently underway. The environmental assessment is scheduled to be completed by spring 2011. Some connectivity service may be provided in 2011, but project completion will not be until 2012. Zayo Bandwidth is also working with road authorities to acquire the appropriate permits. 8. What are the decisions needed by my entity and when? Thus far, entities have only been asked for good -faith non binding commitments. However, Anoka County will need to have written agreements in place with any entity that wishes to participate by April 1, 2011. Specifically, each jurisdiction will need to confirm the sites and the connection speed. 9. What are the costs to my entity? Anoka County will charge each entity that connects a monthly fee. Any fee charged will be included in the agreement. The proposed agreement establishes a fee of $75 /month for 100 mbps service, and $400 /month for lgbps service. Cities that do not need service immediately can elect through the agreement to have equipment placed at their facility as part of the project and then establish service during the term of the agreement. The monthly fee will not be charged until service is established. To establish service at that time or make some other change for sites that have equipment, the entity and Anoka County will need to modify Attachment A of the agreement. 10. What do I do if a business in my community asks me about service? Zayo Group provides a full range of business products to the private sector. If you are interested in learning more, or getting information for business expos, chamber of commerce meetings, or specific businesses, the contact is Steve Kopp, Senior Account Manager, Zayo Enterprise Networks, at 952- 230 -4861 or steve .kopp(a�zayoenterprise.com, Web site www.zavo.com. 11. Who is Zayo and how were they selected for this project? Anoka County developed a Request for Proposal (RFP) seeking a partner for the Connect Anoka County project and to submit for an NTIA grant. The county received five proposals and, after review, selected Zayo Bandwidth. Zayo Bandwidth is a part of the Zayo Group which provides telecom and bandwidth infrastructure solutions that span over 153 markets and 30 states plus the District of Columbia including over 21,000 miles of fiber optic infrastructure. 12. Will each Entity be required to provide easements without cost to Anoka County and/or Zayo? Yes, it is contemplated that the easement will be provided without charge to get from the right of way to your facility across the private property of your facility. Entities retain authority to charge for building permits, franchises, etc. in the right of way. 13. Will physical access be required by Zayo? The agreement contemplates that there may be specific requirements that vary from location to location. Zayo must abide by your written security requirements. For example, if you want equipment installed in a location that you do not want to give unaccompanied access to, simply state that requirement in writing. Also, you do not need to give keys, access codes, or access cards to Zayo, so presuming that you keep your facilities locked, they would not be able to enter them without someone to let them in. The access that Zayo needs to maintain your equipment is similar to other providers such as Qwest, Comcast, US Cable, etc. March7,2011 2 14. What assurances are in place for Zayo performance? Zayo has obligations under the agreement with the County to perform as well as NTIA grant requirements that Zayo must follow. In addition, Zayo will have an incentive to complete the fiber network so they can sell connectivity services to their commercial customers. 15. Does the County agreement with Zayo include a Performance Bond requirement? No, there is no performance bond requirement. However, Zayo has notified the County that performance bonds will be required from Contractors that Zayo employs in the construction process. 16. What happens if Zayo goes bankrupt? Prior to entering into an agreement with Zayo, an analysis was completed that determined that Zayo was in a healthy financial situation. If, in the future, Zayo files for bankruptcy, the outcome would be determined by the bankruptcy court. Additionally, Anoka County has an IRU in the dark fiber, there is added protection for the integrity of the network even if Zayo is no longer available to provide maintenance and support. 17. Concern was expressed with the warranty language in Section IX.D. This type of warranty language is very typical of fiber agreements such as this. This warranty language is a pass through to the Entities of the warranties negotiated between Zayo and the County. Anoka County cannot bind Zayo to any other warranties than what is provided in the Master Service Agreement and the IRU which are attached to the agreement in Exhibits G and H. 18. How will equipment replacement be made after the expiration of the warranty on August 17, 2017? If the equipment needs to be replaced after that time, the entity will need to pay the prorata costs for such replacement. In addition, consideration will need to be made for future maintenance of this new equipment. If the entity is not getting connectivity service, or no longer wants service, no replacement equipment at entity cost is required. 19. Will there be a forum for the entities to provide input in the future? It is the County's intent to continue meetings with the entities. In addition, if there is interest, we could consider creating advisory committees (i.e. technical, administrative) to provide a forum for interested entities to meet more frequently. 20. Does the agreement only address the installation of equipment at the co- location site, or does it also include the construction of dark fiber to the site? The entity needs to approve the agreement to allow the placement of equipment at the site as well as construction of the network including dark fiber to the co- location site. However, the entity may initially elect not to receive the connectivity service at a site. 21. I note the service site requirements in Attachment B (security, temperature and environmental, and space requirements). What is the size of the equipment; how much space is required, and; are there any special location requirements? The County and Zayo staff will be conducting a review of each site location over the next couple of months. It should also be noted that the Zayo equipment will be owned and managed by Zayo. The equipment will be switches that will fit into standard racks commonly found in data closets. See #27. March 7, 2011 3 22. Should additional language be included for waiver of subrogation? No, the mutual indemnification language included in the agreement eliminates the need for any waiver of subrogation. 23. What is the point of demarcation contemplated in the Agreement? It is clear in the Agreement that the Entity is responsible for interconnection and wiring beyond the point of demarcation. Does this mean that the Entity will be required to wire to individual sites within the co- location service site? Yes, the Entity is responsible for wiring within each co- location site. This wiring is likely the entity's existing network. See Exhibit H for definition of demarcation point. 24. What exactly will the Entity be paying for? Does the agreement contemplate the use of dark fiber, or any additional cost to add capacity in the future? The entity is paying for connectivity which includes transport and ethernet service. The Entity will only pay if the connectivity service is used. The dark fiber will be installed with the network, but additional equipment will be required to utilize it. No specific use of the dark fiber is included in the agreement. 25. The Agreement states that the Entity will work with the County to manage bandwidth, but what does that mean? If there are capacity issues, all the entities will need to work together to resolve them to the mutual benefit of the parties. We will also be working to monitor bandwidth utilization to identify potential problems before they impact the service. 26. Have the insurance issues been resolved so that the requirements coincide with what is currently provided through the League of Minnesota Cities? We have made edits to the insurance language with input from the cities. Kurt Glaser, Lexington City Attorney, requested an opinion from the League of Minnesota Cities, which was received on March 2, 2011. Additional edits were made to the insurance requirements in order to comply with this opinion. 27. What are the space and environmental requirements for the Zayo Equipment? Ideally there would be rack space (19'X72" standard steel or aluminum telecom relay rack) available for the switch of 8u or about 12 inches, with sufficient space to access the equipment for repairs, maintenance and upgrades. The space should also be convenient to the entity's demarcation point. To maintain maximum uptime, it would be best to meet the specified requirements for space and environmental conditions. However, if all specifications cannot be met, the County and Zayo will work with the entity to determine an acceptable equipment location. See #21. 28. Why isn't Zayo a party to the Connectivity Services agreement? Some attorneys have suggested that ZAYO should be a party to this agreement. The County's agreement with ZAYO provides that the County must secure the various co- location sites, whether the properties are County owned or owned by another governmental or quasi - governmental agency. ZAYO has expressed disinterest in directly contracting with the various entities. 29. Who is responsible if Zayo damages equipment or systems belonging to a third party that are at the co- location site during installation? March 7, 2011 4 This agreement does not confer any third party benefits to anyone. The agreement is between the County and the Entity, with Zayo subordinate to the County. If the entity is concerned that Zayo will not use due care regarding a third party's equipment located at the co- location site, then the Entity should limit ZAYO's access to third party property. 30. We are not clear on the meaning of certain terms, such as Demarcation Point, Fiber Optic Network, Ducts, Network Availability, Transport Services, Ethernet Services, etc. Are these terms defined anywhere? Many of these terms are defined in the Master Service Agreement and Indefeasible Right of Use Agreement executed between the County and Zayo on August 17, 2010. A copy of these two agreements will be attached to the Connectivity Services Agreement for reference as informational exhibits. Additionally, some of these terms are "terms of art" in the broadband and Information Technology industry, and are used here in standard industry usage. 31. Why doesn't the Entity gain ownership rights in the equipment if the city is required to pay a pro -rata share for repairs and /or replacement after the warranty period expires on August 16, 2017? The initial equipment is paid for by the grant, at no cost to the Entity. Contrast this with more typical agreements, where the Entity pays a much larger monthly fee to a provider for both the service and the equipment. If, after 2017, equipment is replaced completely the situation may change. Options for total replacement at that time, if necessary, may include replacement with Zayo Equipment, Entity Equipment or County Equipment, 32. May the entity, in particular a city, charge building permit fees, franchises, etc. to Zayo outside of the co- location site? Pursuant to Paragraphs II.C. and III.B., Entities retain franchising authority, and may issue building permits, franchise fees as allowed by Minnesota statutes. The entity may not charge these fees for the co- location site itself (for example, the entity may not charge fees for underlying rights needed to place equipment in City Hall, or a fire station which are the designated co- location sites described in Exhibit A.) 33. Will Zayo or Anoka County be providing cable services in competition with Comcast or other private cable carriers through this agreement? No. Anoka County will not be a cable provider. Providing cable TV services is not consistent with Anoka County's mission statement. The County's fibers may only be used for governmental and quasi - governmental purposes. Zayo is not a cable provider, nor does it offer triple- play services (telephone /voice, data /internet, and cable /video). While no one can predict the future, a more likely scenario is that private carriers will contract with Zayo to use Zayo's fibers to provide services to private customers throughout the county. 34. Where can I get more information on the project? By phone: 763- 422 -7537 (Carrie Johnson) By e-mail: ConnectAnokaCounty (cr�co.anoka.mn.us By mail: Connect Anoka County, Attn: Information Technology 2100 3rd Avenue, Suite 300 Anoka, MN 55303 March7,2011 5 What is this project? This project is a private /public partnership between Anoka County and Zayo Bandwidth. Zayo bandwidth was awarded $13.4 million in federal grant funds to construct a fiber network in Anoka county. Zayo and Anoka County have an agreement whereby Zayo will provide capacity services at 145 public facilities. Anoka county, in turn desires to enter into agreements with public agencies such as cities to allow them to participate. What is the cost of the project and how will it be paid for? The total project cost is $19 million. 70 percent of the project is funded by grant money and 30 percent is being split between Zayo and Anoka County (approximately $2.8 million each). Anoka County plans to repay a portion of the match by charging the entities for service. The proposed cost for service is $75 /month for a 100MB connection and $400 /month for a 1GB connection. Can my city opt in later? As part of the initial project, equipment is contemplated at all 145 public sites. Once the equipment is installed, the city may chose to initiate service later. What does the agreement require of my city? The agreement requires that the entity provide the underlying rights to access the space so that the fiber can be installed across the property and run into the building. The agreement also requires the entity to provide space for the equipment. The equipment consists of a switch that fits into a computer rack. Additionally, the agreement requires that the city provide access to the equipment and that the city assume responsibility for its negligent acts that result in damage to the equipment. Who pays for the equipment? The initial equipment is paid for by the project. Zayo provides a warranty through 2017. After the expiration of the warranty, the city is responsible for the cost of the equipment at its sites on a pro -rata basis. Does this project give Zayo an unfair advantage? Zayo was selected after an RFP process as the firm best able to meet the county's requirements. Zayo is a middle mile fiber provider and does not provide to the home service. The grant requires that Zayo make the system available so any carrier is able to purchase service from Zayo. The system will also allow service to to areas that are currently un- served or underserved. What advantages does this project create for the business community? This project will construct an open access fiber network throughout Anoka County. The open access nature of the network will allow incumbent providers to purchase service, as well as allow new entrants into the area providing for additional competition and choices for local businesses and residents. Will any new jobs be created for design and construction? Zayo currently employs 22 people in Minnesota. They will contract for engineering and construction services. The engineering vendor estimates that they will hire 4 -5 local staff to complete the project. The construction vendor will be selected later this year. What guarantees are there that Zayo will complete the project? Zayo's network spans 30 states, 153 markets, and over 22,000 unique route miles of fiber. Zayo has the business capacity to construct and operate the fiber for this project. Zayo is contractually bound to Anoka County and is also bound by the NTIA grant rules which require it to construct and operate the network. }$3g Woos 0000uua e Drive uite Attorneys at Law Michael R. Bradleyj'A Stephen J. Guzzetta* Telecommunications Consultant Laura E. Bergus www.bradleyguzzetta.com tAlso admitted in Wisconsin •Also admitted in Massachusetts and the District of Columbia ^Qualified Neutral under Rule 114 of the Minnesota General Rules of Practice March 21, 2011 TO: North Metro Telecommunications Commission Member Cities FROM: Stephen J. Guzzetta Counsel to the North Metro Telecommunications Commission SUBJECT: Connectivity Services Agreement Template At the request of a number of its member cities, the North Metro Telecommunications Commission (the "NMTC ") has prepared a connectivity service agreement template that can be used in discussions with Anoka County about the co- location of equipment in municipal institutions, the construction of a "broadband network" and the provision of certain "connectivity services." The purposes of the template are to address a number of deficiencies in the Anoka County versions of the connectivity service agreement, to cover issues not necessarily contemplated by Anoka County, to protect the member cities' interests, to avoid near -term and long -term conflicts with Anoka County and Zayo Bandwidth, LLC ( "Zayo "), so far as possible, and to facilitate the viability and success of the overall Connect Anoka County project. It is not the NMTC's intent to undermine or delay the Connect Anoka County project or the deployment of broadband facilities in member cities and Anoka County in general. Some of the major issues posed by the Anoka County connectivity service agreement drafts that are covered by the template include (but are not limited to): • Zayo is not a party to the agreement, even though it is responsible for almost all obligations under the agreement. Anoka County sees itself as an intermediary between municipalities and Zayo, which in many cases may only serve to add an additional layer of bureaucracy that could delay Zayo's performance. Moreover, if Zayo is not a party to the agreement, it is likely that enforcement issues will arise over time (e.g., can and should a municipality be enforcing the agreement against Anoka County for a deficiency in service, when it is actually Zayo who is providing the service ?) • Anoka County's versions of the agreement, as a whole, do not adequately protect cities' cable franchises and right -of -way management authority. In addition, Anoka County's drafts do not make sufficiently clear what rights Zayo will have to utilize public rights -of -way to reach community anchor institutions. • The concept of "connectivity services" is not clearly defined in the Anoka County versions of the connectivity service agreement. Accordingly, it is not evident what participants would be buying, and what expectations they could have concerning connectivity services. • Zayo and Anoka County are not guaranteeing service speeds. Consequently, municipalities could be paying for services they are not actually getting, or receiving services that do not consistently meet their needs, particularly for mission critical applications. • The Anoka County draft agreement likely contains hidden costs (e.g., for possibly re- wiring co- location sites, adding necessary outlets, providing back -up power, improving heating and air conditioning systems, and re- configuring space to accommodate Zayo equipment and to satisfy Zayo /Anoka County specifications). • Many important terms are not defined in the Anoka County versions of the connectivity service agreement. This will inevitably lead to contract interpretation and enforcement issues down the road. Anoka County has suggested that certain terms in the connectivity service agreement should have the meaning ascribed to them in other agreements. However, those definitions and contracts are not incorporated into the connectivity service agreement, and would therefore have little or no force or utility as to the connectivity service agreement. • Anoka County's and Zayo's proposed service level standards would allow portions of the Zayo system and certain connectivity services to be down for approximately 500 minutes a year, which could lead to serious problems for mission critical applications and potential liability for municipalities (e.g., if police or fire communications were not functional when needed). • The Anoka County version of the connectivity service agreement may also pose logistical, financial and legal issues for municipalities. For example, if the Zayo system is unavailable in a city hall at 3 a.m. on a Saturday morning, who is going provide Zayo with access and who is going to pay for any costs associated with such access? If the equipment in City Hall is used to serve commercial customers, will a municipality be liable to Zayo or the customers for damages, costs, etc. associated with any delay in providing access? As you will see, a variety of additional issues are also addressed in the template. In the process of preparing the template, the NMTC reached out to Anoka County to ask for basic information about the Zayo system so as to ensure it had an accurate understanding of what Anoka County and Zayo are actually proposing (as opposed to what may actually be reflected in the Anoka County draft connectivity service agreement). Anoka County, however, was unwilling to provide the NMTC with requested information in a timeframe that would make it possible to complete the template and meet Anoka County's self - imposed deadlines for entering into connectivity service agreements. Accordingly, in the interest of time, the NMTC was forced to prepare the connectivity services agreement without the benefit of certain information from Anoka County. In doing so, the NMTC relied on best available information. As a result, it is possible that the connectivity service agreement template may need to be updated if requested data is ultimately made available to the NMTC. In addition to drafting the connectivity service agreement template, the NMTC also revised Attachments A -D, crafted a new Attachment E and incorporated a new Attachment F (which is a revised version of an Anoka County document referred to as Exhibit E). The remaining 2 attachments are unmodified versions of documents previously provided by Anoka County (i.e., the FAQ, Service Order, Wholesale Master Service Agreement and Master Fiber IRU Agreement). * ** As always, please feel free to contact me with any questions or concerns you may have. 3 WS -3 WORK SESSION MEMORANDUM To: City Council From: Al Rolek Date: April 4, 2011 Re: GASB 43/45 Government Accounting Standards Board (GASB) Statement No. 45 requires governmental entities to account for and report in their financial statements any obligations for Other Postemployment employee Benefits (OPEB), other than pensions. The City of Lino Lakes implemented GASB 45 effective January 1, 2008 and hired an actuary to determine the City's liability for its postemployment healthcare benefits. The City does not contribute to healthcare costs after an employee retires from the city. However, MN Statutes allow a city employee that retires after age 50 with 20 years of service to continue coverage under the City's healthcare program until age 65. Although the City does not pay directly for the benefits of the retiree, the group may experience increased premium rates over a period of years due to the inclusion of retirees in the group. This is known as an Implicit Rate Subsidy. In addition, MN Statutes require the city to carry and contribute to the healthcare benefits of public safety employees who are retired due to disabilities, or families of public safety employees killed in the line of duty, the same as they would an active employee. The State reimburses the City for a portion of these costs. The actuary's report does not take into consideration these reimbursements. The actuarial study uses a number of assumptions to determine the annual OPEB costs, the contributions made toward these costs, and the accrual of OPEB obligations over an extended period of time. In reality, the City pays for these liabilities annually on a pay - as- you -go basis. However, the actuary takes into account future liabilities of the city and these liabilities must be reported in the city's financial statements. The City annually reports its OPEB liability in the Notes to the Financial Statements found in the Comprehensive Annual Financial Report. The net OPEB obligation at the end of 2009 was $44,734, and the estimate for 2010 is $64,035. Again, this figure represents the city's future OPEB costs given the set of actuarial assumptions. Page 2 I am attaching copies of the 2009 Note for your review, as well as a copy of the actuarial report performed in 2008. The actuarial report is good for three years and must be reevaluated at that time. The City will engage an actuary to review its OPEB liability in 2011. Staff will be available to discuss GASB 45 at the work session. The Council may also wish to discuss the topic with the City's auditors during the annual audit report in June. Page 2 HANF ACTUARIAL AND RICHARD JOHNSON, FSA City of Lino Lakes Minnesota Retiree Health Benefit Plan Actuarial Valuation Report Retiree Medical Benefit Plan Liabilities as of January 1, 2008 to Develop the Cost for Fiscal Year Ending December 31, 2008 November 2008 11 Contents Title Page Introduction. 1 Actuarial Certification, Reliances and Distribution 2 Best Estimate Results for Postretirement Medical Cost 3 Estimated Annual Required Contribution 4 Sensitivity Analysis 5 Alternative Funding Method 6 25 Year Cash Flow 7 Actuarial Assumptions and Methods 8 Participant Data. 11 Plan Provisions 12 Glossary 13 Documentation of Assumptions and Methods 16 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 1 Introduction City of Lino Lakes Minnesota retained Hanf Actuarial and Richard Johnson, FSA to perform a valuation of its postretirement Medical benefit plans for the purpose of determining its annual cost in accordance with GASB Statement No. 45 - Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). The City will be required to report information on its financial statements under GASB 45 beginning with the 2008 fiscal year, so the purpose of this report is to provide to the City the items GASB 45 requires on the City's financial statements for 2008. Actuarial valuation results are shown in this report on two bases: (1) assuming the plan is funded with assets that are not specifically dedicated to postretirement medical benefits, and (2) assuming that the plan is funded with assets that are specifically dedicated to postretirement medical benefits. The difference between these two valuation bases is the discount rate to be used to calculate the present value of future cash flows. When the plan is funded with assets that are not dedicated to postretirement medical benefits (identified herein as "Unfunded Plan "), GASB 45 prescribes that the actuary use a discount rate that reflects the rate of return on the City's general funds. We have been instructed by the City that the rate to be used for this purpose is 4.00%. It is our interpretation of GASB 45 that the plan would be considered unfunded under the City's present funding practice because assets in the City's self insured medical plan fund can be used to pay for medical benefits for both active and retired employees. When the plan is funded with assets that are available only for postretirement medical benefits (identified herein as "Funded Plan "), GASB 45 directs the actuary to use a discount rate that reflects the rate of return on the funds that are dedicated to the benefits. We were instructed by the City to use a discount rate of 6.0% for this purpose. This report shows the City's Actuarial Accrued Liability (AAL) for benefits payable under the plan and it shows the City's Annual Required Contribution (ARC) associated with those benefits, both those in pay status and those accruing to future retirees. The report also describes the actuarial assumptions and methods selected by the City for use in the calculation of these figures, and it also contains a glossary of terms used by GASB 45. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 2 Actuarial Certification, Reliances and Distribution This valuation has been conducted in accordance with generally accepted actuarial principles and practices. The consulting actuaries are members of the Society of Actuaries and other professional actuarial organizations and meet their "General Qualification Standard for Public Statements of Actuarial Opinion" relating to postretirement Medical plans. In preparing the results presented in this report, we have relied upon information provided to us regarding plan provisions, plan participants, and plan assets. We have reviewed this information for overall reasonableness and consistency but have neither audited nor independently verified this information. The accuracy of the results presented in this report is dependent upon the accuracy and completeness of the underlying information. The results shown in this report have been developed on the basis of actuarial assumptions, selected by City of Lino Lakes Minnesota, which are considered to be reasonable and within the "best- estimate range" as described by the Actuarial Standards of Practice. Other actuarial assumptions could also be considered to be reasonable and within the best - estimate range. Thus, reasonable results differing from those presented in this report could have been developed by selecting different points within the best - estimate ranges for various assumptions. The information contained in this report was prepared for the internal use of City of Lino Lakes Minnesota and its auditors in connection with the actuarial valuation of the postretirement Medical plan. It is neither intended nor necessarily suitable for other purposes. City of Lino Lakes Minnesota may distribute this actuarial valuation report to parties who have a legal right to require the City to provide them with this report, in which case the City will provide this report in its entirety including all assumptions, caveats and limitations. Duane Hanf, F.S.A., M.A.A.A. Hanf Actuarial November 2008 Richard Johnson, F.S.A., M.A.A.A. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 3 Best Estimated Results for Postretirement Medical Cost The table below shows the actuarial valuation results under two funding scenarios: (1) that the assets used to pay plan benefits are not specifically dedicated to postretirement medical benefits ( "Unfunded Plan "), and (2) that the assets used to pay plan benefits are specifically dedicated to postretirement medical benefits ( "Funded Plan "). It is our interpretation of GASB 45 that the plan would be considered Unfunded under the City's present financial arrangement since funds can be used for either employees' or retirees' medical benefit costs. Normal cost for 2008 (BOY) Actuarial Accrued Liability (AAL) ➢ Retirees ➢ Actives > Total Valuation Payroll for 2008 Calculated Value of 2008 Benefit Costs (pay -as- you -go cost) Results as of January 1, 2008 Unfunded Plan Funded Plan $22,040 $15,477 139,110 $190,081 $329,191 N/A $16,887 $126,885 $145,561 $272,446 $16,887 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 4 Estimated Annual Required Contribution The table below shows the calculation of the Annual Required Contribution toward postretirement medical benefits under GASB 45. Note that the ARC shown below includes the pay -as- you -go cost for current retirees, so the net effect of GASB 45 on the City is the excess of the ARC over the pay -as- you -go cost. Normal Cost for 2008 Beginning of Year Adjusted to Mid -Year Percent of Payroll Funded Status at January 1, 2008 Actuarial Accrued liability (AAL) Value of Plan Assets Unfunded Actuarial Accrued Liab.(UAAL) UAAL Amortization for 2008 Amortization Method Amortization Period Amortization of UAAL, Mid -Year Percent of Payroll Annual Required Contribution (ARC) Normal Cost Amortization of UAAL Total ARC Percent of Payroll Actuarial Cost Method Actuarial Assumptions Investment Rate of Return Projected Salary increases Results for Fiscal Unfunded Plan for 2008 $22,040 $22,481 N/A $329,191 $0 $329,191 Level Dollar 30 Years $18,671 N/A $22,481 $18,671 $41,152 N/A Projected Unit Credit 4.00 3.00 Year 2008 Funded Plan $15,477 $15,941 N/A $272,446 $0 $272,446 Level Dollar 30 Years $19,233 N/A $15,941 $19,233 $35,174 N/A Projected Unit Credit 6.0% 3.06 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 5 Sensitivity Analysis Under the City's current postretirement medical benefit program, future increases in health plan costs will be shared between the City and retirees. The actuarial valuation results are therefore very sensitive to the assumed rate of increase in health plan costs ( "trend "). Because trend can vary significantly from year to year, the table below shows the effect on the City's Actuarial Accrued Liability and Annual Required Contribution if trend is one percentage point higher or lower in each future year than the assumption chosen by the City. Actuarial Valuation Results using Assumptions as Chosen by the City Actuarial Accrued Liab.(AAL) 1/1/08 Normal Cost for 2008 Annual Required Contrib.(ARC), 2008 Unfunded Plan $329,191 $22,481 $41,152 Results if Health Care Cost Trend is 1% Higher in Each Future Year Actuarial Accrued Liab.(AAL) 1/1/08 $362,770 ➢ Percent Higher 100 Normal Cost for 2008 $26,949 ➢ Percent Higher 20% Annual Required Contrib.(ARC), 2008 $47,525 ➢ Percent Higher 15% Results if Health Care Cost Trend is 1% Lower in Each Future Year Actuarial Accrued Liab.(AAL) 1/1/08 $300,200 ➢ Percent Lower 9% Normal Cost for 2008 $18,861 ➢ Percent Lower 150 Annual Required Contrib.(ARC), 2008 $35,889 ➢ Percent Lower 13% City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 6 Effect of Alternative Funding Method The table below shows the calculation of the Annual Required Contribution toward postretirement medical benefits under GASB 45 using the entry age normal funding method. Note that the ARC shown below includes the pay -as- you -go cost for current retirees, so the net effect of GASB 45 on the City is the excess of the ARC over the pay -as- you -go cost. Actuarial Cost Method Results for Calendar Year 2008 Projected Unit Entry Age Credit Normal Normal Cost for 2008 Beginning of Year $22,040 $26,667 Adjusted to Mid -Year $22,481 $27,200 Percent of Payroll N/A N/A Funded Status at January 1, 2008 Actuarial Accrued liability (AAL) $329,191 $361,716 Value of Plan Assets $0 $0 Unfunded Actuarial Accrued Liab.(UAAL) $329,191 $361,716 UAAL Amortization for 2008 Amortization Method Level Dollar Level Dollar Amortization Period 30 Years 30 Years Amortization of UAAL, Mid -Year $18,671 $20,515 Percent of Payroll N/A N/A Annual Required Contribution (ARC) for 2008 Normal Cost $22,481 $27,200 Amortization of UAAL $18,671 $20,515 Total ARC $41,152 $47,716 Percent of Payroll N/A N/A Actuarial Assumptions Investment Rate of Return Projected Salary increases 4.0% 4.0% 3.0% 3.0% City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 7 Twenty Five (25) Year Pay -As- You -Go Cost Forecast The table below provides a 25 year pay -as- you -go cost forecast on a closed group basis (i.e. current group only, no new entrants). Year Retiree Claims Retiree Net Employer Contributions Cost 2008 $36,447 $19,560 $16,887 2009 $41,055 $22,156 $18,899 2010 $45,633 $23,781 $21,851 2011 $58,325 $32,870 $25,455 2012 $53,084 $29,081 $24,003 2013 $72,217 $42,126 $30,093 2014 $69,192 $41,634 $27,559 2015 $80,436 $47,042 $33,394 2016 $79,592 $47,648 $31,944 2017 $96,886 $58,500 $38,386 2018 $64,431 $50,186 $14,246 2019 $85,533 $66,011 $19,522 2020 $84,119 $64,574 $19,545 2021 $97,570 $71,629 $25,941 2022 $107,039 $80,551 $26,488 2023 $120,072 $87,787 $32,286 2024 $134,261 $95,403 $38,857 2025 $127,868 $89,937 $37,931 2026 $135,142 $92,984 $42,158 2027 $151,352 $108,113 $43,239 2028 $136,303 $97,925 $38,378 2029 $141,838 $100,814 $41,024 2030 $142,296 $101,283 $41,013 2031 $133,014 $95,493 $37,521 2032 $146,378 $104,765 $41,612 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 Actuarial Assumptions and Methods Economic Assumptions Discount rate Salary increase rate Unfunded Funded 4.0% 6.0% 3.0% 3.0% 8 Retiree Medical Benefit Cost Assumptions Base year (2008) expected The following pre 65 expected claims cost was monthly per capita plan developed by Richard Johnson, FSA. costs for single retiree Plan Age 62 medical coverage plus Weighted Avg. $607 administration. Adjusted to other ages using a 3.5% aging Spouse cost is assumed to assumption. equal member cost for comparable age. Medical cost and retiree Year Trend contribution trend rates 2008 9% 2009 8% 2010 7% 2011 6% 2012+ 5% Medical plan participation For current retirees: actual elections, as reported. Current retirees assumed to continue coverage until age 65. Police /Fire: 90% of future retirees are assumed to continue single medical coverage until age 65. 25% are assumed to elect spousal coverage. Other Employees: 90% of future retirees assumed to elect single medical coverage until age 65. No spousal coverage is assumed. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 9 Demographic and Other Assumptions Mortality, healthy lives Probabilities of death are assumed to vary based on the 1994 Group Annuity Mortality Rates for Male and Female. Sample rates are as follows: Age Male Female 25 .0007 .0003 45 .0016 .0010 65 .0145 .0086 85 .0972 .0677 105 .4072 .3836 Termination rates Probabilities of termination vary by age and service. Sample rates are as follows: Years of Service Age 1 2 3 4+ 25 15% 13% 10% 6.5% 30 15 11 7 6 35 10 9 7 5 40 10 8 5 4 45 10 8 5 3 50 10 8 5 2.5 55+ 0 0 0 0 Retirement Age 67% of police /fire employees are assumed to retire at age 51, the balance at age 65. 67% of other City employees are assumed to retire at age 60, the balance at age 65. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 Methods Measurement date Normal cost and AAL Amortization of UAAL Asset valuation Benefits Not Valued 10 January 1, 2008. Projected Unit Credit and the Entry Age Normal actuarial cost methods, allocated as a level dollar amount, from the valuation date on or after date of hire to full eligibility date are both illustrated in this report. Level dollar Not currently applicable Hanf Actuarial and Richard Johnson, FSA reviewed postretirement benefits with City of Lino Lakes Minnesota, and based on that review are not aware of any other significant benefits which were required to be valued but were not. It should be noted that any future reimbursement from the State of Minnesota to the City of Lino Lakes for medical subsidies provided to disabled police officers was not reflected in this study. Data Sources City of Lino Lakes Minnesota furnished participant data, plan design and cost information as of January 1, 2008. Data were reviewed for reasonableness and consistency, but no audit was performed. Assumptions or estimates were made by Hanf Actuarial and Richard Johnson, FSA based on input from the City when data were not available. Salary data was not supplied. This omission doesn't affect the total present value of benefits but affects somewhat the split between Normal Cost and Accrued Liability. We are not aware of any other errors or omissions in the data that would have a significant effect on the results of our calculations. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 11 Participant Data Summary of Participant Data Active Full Time Members* ➢ City ➢ Police /Fire ➢ Total Number Average Average of Age Service Members 32 48.0 10.2 31 36.5 6.9 63 42.3 8.6 Retirees /disabilities ** ➢ Retirees /disabilities 4 59.5 ➢ Spouses * ** 1 55.3 ➢ Total 5 58.7 * 18 active employees who have waived medical coverage were excluded from the calculations. ** A young widow with family coverage was excluded because the premium paid should cover expected medical claims. * ** Assumed same age as retiree spouse. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 12 Plan Provisions The following summary of plan provisions represents our understanding of the substantive plan. Medical Benefits Eligibility The plan provides benefits to individuals who terminate service with the City through service retirement or disability retirement. Service or A City employee who has left employment or is disabled Disability and is receiving or eligible to receive a pension Retirement under the Minnesota Public Employees Retirement Eligibility System. Other Employees who terminate employment before attaining terminations service retirement eligibility are only eligible for COBRA coverage. Dependent Spouses and children (while dependent) of eligible eligibility retiree are eligible for the plan while the eligible employee is under age 65. Survivor eligibility Upon the death of a covered retiree, coverage can continue for a spouse until age 65. Member Retirees or single eligible spouses are required to contributions contribute for their coverage 100% of the "total premium ". "Total monthly premiums" in effect for 2008 are as follows: Other Postretirement Welfare Benefits Weighted Average None Single Family $355 $995 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 13 Glossary Actuarial assumptions. Assumptions as to the occurrence of future events affecting retirement costs, such as: mortality, withdrawal, disablement and retirement, changes in compensation and investment earnings. Actuarial accrued liability. That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of benefits and expenses, which is not provided for by future Normal Costs. Actuarial cost method or funding method. A procedure for determining the Actuarial Present Value of benefits and expenses and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a Normal Cost and an Actuarial Accrued Liability. Actuarial gain (loss) or experience gain (loss). A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two Actuarial Valuation dates, as determined in accordance with a particular Actuarial Cost Method. Actuarial present value of total projected benefits. Total projected benefits include all benefits estimated to be payable to plan members (retirees and beneficiaries, terminated employees entitled to benefits but not yet receiving them, and current active members) as a result of their service through the valuation date and their expected future service. The actuarial present value of total projected benefits as of the valuation date is the present value of the cost to finance benefits payable in the future, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment. Actuarial valuation. The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a benefit plan. Actuarial value of assets or valuation assets. The value of cash, investments and other property belonging to a benefit plan, as used by the actuary for the purpose of an Actuarial Valuation. Amortization payment. That portion of the benefit plan contribution which is designed to amortize the Unfunded Actuarial Accrued Liability. Annual required contributions of the employer (ARC). The employer's periodic required contributions to a defined benefit OPEB plan, calculated in accordance with the parameters. Defined benefit OPEB plan. An OPEB plan having terms that specify the benefits to be provided at or after separation from employment. The benefits may be specified in dollars (for example, a flat dollar payment or an amount based on one or more factors such as age, years of service, City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 14 and compensation), or as a type or level of coverage (for example, prescription drugs or a percentage of health care insurance premiums). Employer's contributions. Contributions made in relation to the annual required contributions of the employer (ARC). An employer has made a contribution in relation to the ARC if the employer has (a) made payments of benefits directly to or on behalf of a retiree or beneficiary, (b) made premium payments to an insured or (c) irrevocably transferred assets to a trust, or equivalent arrangement, in which plan assets are dedicated to providing benefits to retirees and the beneficiaries in accordance with the terms of the plan and are legally protected from creditors of the employer(s) or plan administrator. Entry age actuarial cost method. A method under which the Actuarial Present Value of the Projected Benefits of each individual included in an Actuarial Valuation is allocated on a level basis over the earnings or service of the individual between entry age and assumed exit age(s). The portion of this Actuarial Present Value allocated to a valuation year is called the Normal Cost. The portion of this Actuarial Present Value not provided for at a valuation date by the Actuarial Present Value of future Normal Costs is called the Actuarial Accrued Liability. Funded ratio. The actuarial value of assets expressed as a percentage of the Actuarial Accrued Liability. Healthcare cost trend rate. The rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of health care services, plan design, and technological developments. Investment return assumption (discount rate). The rate used to adjust a series of future payments to reflect the time value of money. Medicare Modernization Act (MMA). The federal law which created Medicare Part D. Net OPEB obligation. The cumulative difference since the effective date of this statement between annual OPEB cost and the employer's contributions to the plan including the OPEB liability (asset) at transition, if any, and excluding (a) short -term differences and (b) unpaid contributions that have been converted to OPEB- related debt. Normal cost. That portion of the Actuarial Present Value of benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method. Other postemployment benefits (OPEB). Postemployment benefits other than retirement benefits. Other postemployment benefits include postemployment healthcare benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a retirement plan, excluding benefits defined as termination offers and benefits. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 15 Pay -as- you -go. A method of financing a benefit plan under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments and expenses become due. Plan assets. Resources, usually in the form of stocks, bonds, and other classes of investments, that have been segregated and restricted in a trust or equivalent arrangement, in which (a) employer contributions to the plan are irrevocable, (b) assets are dedicated to providing benefits to retirees and their beneficiaries, and (c) assets are legally protected from creditors of the employer or plan administrator, for the payment of benefits in accordance with the terms of the plan. Plan members. The individuals covered by the terms of a benefit plan. Plan membership generally includes employees in active service, terminated employees who have accumulated benefits but are not yet receiving them and retired employees and beneficiaries currently receiving benefits. Substantive plan. The terms of an OPEB plan as understood by the employer and plan members. Unfunded actuarial accrued liability. The excess of the Actuarial Accrued Liability over the Actuarial Value of Assets. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 16 Documentation of Assumptions and Methods Hanf Actuarial and Richard Johnson, FSA considered historical information that was developed by City of Lino Lakes in establishing the actuarial assumptions used in this report. We also solicited input from the City on the reasonableness of each assumption. Since this is the first valuation completed for the City's postretirement medical plan, we expect that it will be appropriate to revisit the actuarial assumptions in future years as experience develops, both within the City and at other agencies required to conduct actuarial valuations under GASB 45. Economic Assumptions If there is not an irrevocable trust established to pay benefits, GASB 45 requires that the employer's expected return on its own invested assets be used to determine the discount rate. If there is an irrevocable trust into which the Annual Required Contribution (ARC) is deposited, then the expected return based on the mix of investments within that trust should be considered. If over time, less than the ARC is contributed, then a pro -rata investment return based on both employer assets and trust assets would be used. A final decision regarding pre- funding of postretirement medical benefits in an irrevocable trust has not yet been made by the City. We have therefore performed valuations assuming an unfunded plan i.e., using a 4.0% discount rate as selected by the City based on rates of return on general City assets currently being recognized by the City Director of Finance - and a funded plan - i.e., using a 6.0% discount rate, the anticipated return on a fully funded plan. A N/A salary increase rate was selected by the City based on recent experience. This assumption is used to spread plan costs as a percent of payroll. Medical Benefit Assumptions Total City Health Plan costs were based on calculations made for the City for 2008 by Hanf Actuarial and Richard Johnson, FSA. The calculations were based on the latest claim and enrollment information available. Costs were then age- adjusted based on Hanf Actuarial and Richard Johnson, FSA's national health care utilization factors. Medical plan cost trend rates for the City medical plans which start at 9% and decline to an ultimate rate of 5% are consistent with Hanf Actuarial and Richard Johnson, FSA's assumptions for other postretirement medical valuations and represent both current plan experience and a realistic expectation of long -term trend. Medical plan participation rates and plan election preferences are based on historical City experience. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 17 Demographic and Other Assumptions Mortality tables used in the actuarial valuation are table developed by the Society of actuaries and deemed appropriate for the group. Termination rates used in the actuarial valuation are based upon national termination studies performed by the Society of Actuaries. They were adjusted to reflect the recent lower termination rates experienced by City of Lino Lakes. Retirement rates used in the actuarial valuation were developed based upon recent City of Lino Lakes experience. The assumed prevalence of spouse or domestic partner coverage was based on recent experience among City retirees. Methods The Projected Unit Credit actuarial and the Entry Age Normal cost methods were both illustrated in this report. Both are common methods used in the actuarial valuations of retiree medical liabilities. The UAAL is amortized as a level dollar amount, consistent with GASB requirements. The maximum amortization period allowed under GASB 45 is 30 years. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 HANF ACTUARIAL AND RICHARD JOHNSON, FSA City of Lino Lakes Minnesota Retiree Health Benefit Plan Actuarial Valuation Report Retiree Medical Benefit Plan Liabilities as of January 1, 2008 to Develop the Cost for Fiscal Year Ending December 31, 2008 November 2008 Contents Title 11 Page Introduction. 1 Actuarial Certification, Reliances and Distribution 2 Best Estimate Results for Postretirement Medical Cost 3 Estimated Annual Required Contribution 4 Sensitivity Analysis 5 Alternative Funding Method 6 25 Year Cash Flow 7 Actuarial Assumptions and Methods 8 Participant Data. 11 Plan Provisions 12 Glossary 13 Documentation of Assumptions and Methods 16 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 1 Introduction City of Lino Lakes Minnesota retained Hanf Actuarial and Richard Johnson, FSA to perform a valuation of its postretirement Medical benefit plans for the purpose of determining its annual cost in accordance with GASB Statement No. 45 - Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). The City will be required to report information on its financial statements under GASB 45 beginning with the 2008 fiscal year, so the purpose of this report is to provide to the City the items GASB 45 requires on the City's financial statements for 2008. Actuarial valuation results are shown in this report on two bases: (1) assuming the plan is funded with assets that are not specifically dedicated to postretirement medical benefits, and (2) assuming that the plan is funded with assets that are specifically dedicated to postretirement medical benefits. The difference between these two valuation bases is the discount rate to be used to calculate the present value of future cash flows. When the plan is funded with assets that are not dedicated to postretirement medical benefits (identified herein as "Unfunded Plan "), GASB 45 prescribes that the actuary use a discount rate that reflects the rate of return on the City's general funds. We have been instructed by the City that the rate to be used for this purpose is 4.00 %. It is our interpretation of GASB 45 that the plan would be considered unfunded under the City's present funding practice because assets in the City's self insured medical plan fund can be used to pay for medical benefits for both active and retired employees. When the plan is funded with assets that are available only for postretirement medical benefits (identified herein as "Funded Plan "), GASB 45 directs the actuary to use a discount rate that reflects the rate of return on the funds that are dedicated to the benefits. We were instructed by the City to use a discount rate of 6.0% for this purpose. This report shows the City's Actuarial Accrued Liability (AAL) for benefits payable under the plan and it shows the City's Annual Required Contribution (ARC) associated with those benefits, both those in pay status and those accruing to future retirees. The report also describes the actuarial assumptions and methods selected by the City for use in the calculation of these figures, and it also contains a glossary of terms used by GASB 45. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 2 Actuarial Certification, Reliances and Distribution This valuation has been conducted in accordance with generally accepted actuarial principles and practices. The consulting actuaries are members of the Society of Actuaries and other professional actuarial organizations and meet their "General Qualification Standard for Public Statements of Actuarial Opinion" relating to postretirement Medical plans. In preparing the results presented in this report, we have relied upon information provided to us regarding plan provisions, plan participants, and plan assets. We have reviewed this information for overall reasonableness and consistency but have neither audited nor independently verified this information. The accuracy of the results presented in this report is dependent upon the accuracy and completeness of the underlying information. The results shown in this report have been developed on the basis of actuarial assumptions, selected by City of Lino Lakes Minnesota, which are considered to be reasonable and within the "best- estimate range" as described by the Actuarial Standards of Practice. Other actuarial assumptions could also be considered to be reasonable and within the best - estimate range. Thus, reasonable results differing from those presented in this report could have been developed by selecting different points within the best - estimate ranges for various assumptions. The information contained in this report was prepared for the internal use of City of Lino Lakes Minnesota and its auditors in connection with the actuarial valuation of the postretirement Medical plan. It is neither intended nor necessarily suitable for other purposes. City of Lino Lakes Minnesota may distribute this actuarial valuation report to parties who have a legal right to require the City to provide them with this report, in which case the City will provide this report in its entirety including all assumptions, caveats and limitations. Duane Hanf, F.S.A., M.A.A.A. Richard Johnson, F.S.A., M.A.A.A. Hanf Actuarial November 2008 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 3 Best Estimated Results for Postretirement Medical Cost The table below shows the actuarial valuation results under two funding scenarios: (1) that the assets used to pay plan benefits are not specifically dedicated to postretirement medical benefits ( "Unfunded Plan "), and (2) that the assets used to pay plan benefits are specifically dedicated to postretirement medical benefits ( "Funded Plan "). It is our interpretation of GASB 45 that the plan would be considered Unfunded under the City's present financial arrangement since funds can be used for either employees' or retirees' medical benefit costs. Normal cost for 2008 (BOY) Actuarial Accrued Liability (AAL) ➢ Retirees ➢ Actives ➢ Total Valuation Payroll for 2008 Calculated Value of 2008 Benefit Costs (pay -as- you -go cost) Results as of January 1, 2008 Unfunded Plan Funded Plan $22,040 $15,477 139,110 $190,081 $329,191 N/A $16,887 $126,885 $145,561 $272,446 $16,887 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 4 Estimated Annual Required Contribution The table below shows the calculation of the Annual Required Contribution toward postretirement medical benefits under GASB 45. Note that the ARC shown below includes the pay -as- you -go cost for current retirees, so the net effect of GASB 45 on the City is the excess of the ARC over the pay -as- you -go cost. Results for Fiscal Year 2008 Unfunded Plan Funded Plan Normal Cost for 2008 Beginning of Year $22,040 $15,477 Adjusted to Mid -Year $22,481 $15,941 Percent of Payroll N/A N/A Funded Status at January 1, 2008 Actuarial Accrued liability (AAL) $329,191 $272,446 Value of Plan Assets $0 $0 Unfunded Actuarial Accrued Liab.(UAAL) $329,191 $272,446 UAAL Amortization for 2008 Amortization Method Level Dollar Level Dollar Amortization Period 30 Years 30 Years Amortization of UAAL, Mid -Year $18,671 $19,233 Percent of Payroll N/A N/A Annual Required Contribution (ARC) for 2008 Normal Cost $22,481 $15,941 Amortization of UAAL $18,671 $19,233 Total ARC $41,152 $35,174 Percent of Payroll N/A N/A Actuarial Cost Method Projected Unit Projected Unit Credit Credit Actuarial Assumptions Investment Rate of Return Projected Salary increases 4.0% 6.00 3.0% 3.0% City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 5 Sensitivity Analysis Under the City's current postretirement medical benefit program, future increases in health plan costs will be shared between the City and retirees. The actuarial valuation results are therefore very sensitive to the assumed rate of increase in health plan costs ( "trend "). Because trend can vary significantly from year to year, the table below shows the effect on the City's Actuarial Accrued Liability and Annual Required Contribution if trend is one percentage point higher or lower in each future year than the assumption chosen by the City. Actuarial Valuation Results using Assumptions as Chosen by the City Actuarial Accrued Liab.(AAL) 1/1/08 Normal Cost for 2008 Annual Required Contrib.(ARC), 2008 Unfunded Plan $329,191 $22,481 $41,152 Results if Health Care Cost Trend is 1% Higher in Each Future Year Actuarial Accrued Liab.(AAL) 1/1/08 $362,770 ➢ Percent Higher 10% Normal Cost for 2008 $26,949 ➢ Percent Higher 20% Annual Required Contrib.(ARC), 2008 $47,525 ➢ Percent Higher 15% Results if Health Care Cost Trend is 1% Lower in Each Future Year Actuarial Accrued Liab.(AAL) 1/1/08 $300,200 ➢ Percent Lower 9% Normal Cost for 2008 $18,861 ➢ Percent Lower 15% Annual Required Contrib.(ARC), 2008 $35,889 ➢ Percent Lower 13% City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 6 Effect of Alternative Funding Method The table below shows the calculation of the Annual Required Contribution toward postretirement medical benefits under GASB 45 using the entry age normal funding method. Note that the ARC shown below includes the pay -as- you -go cost for current retirees, so the net effect of GASB 45 on the City is the excess of the ARC over the pay -as- you -go cost. Actuarial Cost Method Results for Calendar Year 2008 Projected Unit Entry Age Credit Normal Normal Cost for 2008 Beginning of Year $22,040 $26,667 Adjusted to Mid -Year $22,481 $27,200 Percent of Payroll N/A N/A Funded Status at January 1, 2008 Actuarial Accrued liability (AAL) $329,191 $361,716 Value of Plan Assets $0 $0 Unfunded Actuarial Accrued Liab.(UAAL) $329,191 $361,716 UAAL Amortization for 2008 Amortization Method Level Dollar Level Dollar Amortization Period 30 Years 30 Years Amortization of UAAL, Mid -Year $18,671 $20,515 Percent of Payroll N/A N/A Annual Required Contribution (ARC) for 2008 Normal Cost $22,481 $27,200 Amortization of UAAL $18,671 $20,515 Total ARC $41,152 $47,716 Percent of Payroll N/A N/A Actuarial Assumptions Investment Rate of Return Projected Salary increases 4.0% 4.0% 3.0% 3.0% City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 7 Twenty Five (25) Year Pay -As- You -Go Cost Forecast The table below provides a 25 year pay -as- you -go cost forecast on a closed group basis (i.e. current group only, no new entrants). Retiree Net Employer Year Retiree Claims Contributions Cost 2008 $36,447 $19,560 $16,887 2009 $41,055 $22,156 $18,899 2010 $45,633 $23,781 $21,851 2011 $58,325 $32,870 $25,455 2012 $53,084 $29,081 $24,003 2013 $72,217 $42,126 $30,093 2014 $69,192 $41,634 $27,559 2015 $80,436 $47,042 $33,394 2016 $79,592 $47,648 $31,944 2017 $96,886 $58,500 $38,386 2018 $64,431 $50,186 $14,246 2019 $85,533 $66,011 $19,522 2020 $84,119 $64,574 $19,545 2021 $97,570 $71,629 $25,941 2022 $107,039 $80,551 $26,488 2023 $120,072 $87,787 $32,286 2024 $134,261 $95,403 $38,857 2025 $127,868 $89,937 $37,931 2026 $135,142 $92,984 $42,158 2027 $151,352 $108,113 $43,239 2028 $136,303 $97,925 $38,378 2029 $141,838 $100,814 $41,024 2030 $142,296 $101,283 $41,013 2031 $133,014 $95,493 $37,521 2032 $146,378 $104,765 $41,612 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 Actuarial Assumptions and Methods Economic Assumptions Discount rate Salary increase rate Unfunded Funded 4.0% 6.0% 3.0% 3.0% 8 Retiree Medical Benefit Cost Assumptions Base year (2008) expected The following pre 65 expected claims cost was monthly per capita plan developed by Richard Johnson, FSA. costs for single retiree Plan Age 62 medical coverage plus Weighted Avg. $607 administration. Adjusted to other ages using a 3.5% aging Spouse cost is assumed to assumption. equal member cost for comparable age. Medical cost and retiree Year Trend contribution trend rates 2008 9% 2009 8% 2010 7% 2011 6% 2012+ 5% Medical plan participation For current retirees: actual elections, as reported. Current retirees assumed to continue coverage until age 65. Police /Fire: 90% of future retirees are assumed to continue single medical coverage until age 65. 25% are assumed to elect spousal coverage. Other Employees: 90% of future retirees assumed to elect single medical coverage until age 65. No spousal coverage is assumed. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 9 Demographic and Other Assumptions Mortality, healthy lives Probabilities of death are assumed to vary based on the 1994 Group Annuity Mortality Rates for Male and Female. Sample rates are as follows: Age Male Female 25 .0007 .0003 45 .0016 .0010 65 .0145 .0086 85 .0972 .0677 105 .4072 .3836 Termination rates Probabilities of termination vary by age and service. Sample rates are as follows: Years of Service Age 1 2 3 4+ 25 15% 13% 10% 6.5% 30 15 11 7 6 35 10 9 7 5 40 10 8 5 4 45 10 8 5 3 50 10 8 5 2.5 55+ 0 0 0 0 Retirement Age 67% of police /fire employees are assumed to retire at age 51, the balance at age 65. 67% of other City employees are assumed to retire at age 60, the balance at age 65. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 Methods Measurement date Normal cost and AAL Amortization of UAAL Asset valuation Benefits Not Valued 10 January 1, 2008. Projected Unit Credit and the Entry Age Normal actuarial cost methods, allocated as a level dollar amount, from the valuation date on or after date of hire to full eligibility date are both illustrated in this report. Level dollar Not currently applicable Hanf Actuarial and Richard Johnson, FSA reviewed postretirement benefits with City of Lino Lakes Minnesota, and based on that review are not aware of any other significant benefits which were required to be valued but were not. It should be noted that any future reimbursement from the State of Minnesota to the City of Lino Lakes for medical subsidies provided to disabled police officers was not reflected in this study. Data Sources City of Lino Lakes Minnesota furnished participant data, plan design and cost information as of January 1, 2008. Data were reviewed for reasonableness and consistency, but no audit was performed. Assumptions or estimates were made by Hanf Actuarial and Richard Johnson, FSA based on input from the City when data were not available. Salary data was not supplied. This omission doesn't affect the total present value of benefits but affects somewhat the split between Normal Cost and Accrued Liability. We are not aware of any other errors or omissions in the data that would have a significant effect on the results of our calculations. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 11 Participant Data Summary of Participant Data Active Full Time Members* ➢ City ➢ Police /Fire ➢ Total Number Average Average of Age Service Members 32 48.0 10.2 31 36.5 6.9 63 42.3 8.6 Retirees /disabilities ** ➢ Retirees /disabilities 4 59.5 ➢ Spouses * ** 1 55.3 ➢ Total 5 58.7 * 18 active employees who have waived medical coverage were excluded from the calculations. ** A young widow with family coverage was excluded because the premium paid should cover expected medical claims. * ** Assumed same age as retiree spouse. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 12 Plan Provisions The following summary of plan provisions represents our understanding of the substantive plan. Medical Benefits Eligibility The plan provides benefits to individuals who terminate service with the City through service retirement or disability retirement. Service or A City employee who has left employment or is disabled Disability and is receiving or eligible to receive a pension Retirement under the Minnesota Public Employees Retirement Eligibility System. Other Employees who terminate employment before attaining terminations service retirement eligibility are only eligible for COBRA coverage. Dependent Spouses and children (while dependent) of eligible eligibility retiree are eligible for the plan while the eligible employee is under age 65. Upon the death of a covered retiree, coverage can continue for a spouse until age 65. Survivor eligibility Member Retirees or single eligible spouses are required to contributions contribute for their coverage 100% of the "total premium ". "Total monthly premiums" in effect for 2008 are as follows: Other Postretirement Welfare Benefits Weighted Average None Single Family $355 $995 City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 13 Glossary Actuarial assumptions. Assumptions as to the occurrence of future events affecting retirement costs, such as: mortality, withdrawal, disablement and retirement, changes in compensation and investment earnings. Actuarial accrued liability. That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of benefits and expenses, which is not provided for by future Normal Costs. Actuarial cost method or funding method. A procedure for determining the Actuarial Present Value of benefits and expenses and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a Normal Cost and an Actuarial Accrued Liability. Actuarial gain (loss) or experience gain (loss). A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two Actuarial Valuation dates, as determined in accordance with a particular Actuarial Cost Method. Actuarial present value of total projected benefits. Total projected benefits include all benefits estimated to be payable to plan members (retirees and beneficiaries, terminated employees entitled to benefits but not yet receiving them, and current active members) as a result of their service through the valuation date and their expected future service. The actuarial present value of total projected benefits as of the valuation date is the present value of the cost to finance benefits payable in the future, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment. Actuarial valuation. The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a benefit plan. Actuarial value of assets or valuation assets. The value of cash, investments and other property belonging to a benefit plan, as used by the actuary for the purpose of an Actuarial Valuation. Amortization payment. That portion of the benefit plan contribution which is designed to amortize the Unfunded Actuarial Accrued Liability. Annual required contributions of the employer (ARC). The employer's periodic required contributions to a defined benefit OPEB plan, calculated in accordance with the parameters. Defined benefit OPEB plan. An OPEB plan having terms that specify the benefits to be provided at or after separation from employment. The benefits may be specified in dollars (for example, a flat dollar payment or an amount based on one or more factors such as age, years of service, City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 14 and compensation), or as a type or level of coverage (for example, prescription drugs or a percentage of health care insurance premiums). Employer's contributions. Contributions made in relation to the annual required contributions of the employer (ARC). An employer has made a contribution in relation to the ARC if the employer has (a) made payments of benefits directly to or on behalf of a retiree or beneficiary, (b) made premium payments to an insured or (c) irrevocably transferred assets to a trust, or equivalent arrangement, in which plan assets are dedicated to providing benefits to retirees and the beneficiaries in accordance with the terms of the plan and are legally protected from creditors of the employer(s) or plan administrator. Entry age actuarial cost method. A method under which the Actuarial Present Value of the Projected Benefits of each individual included in an Actuarial Valuation is allocated on a level basis over the earnings or service of the individual between entry age and assumed exit age(s). The portion of this Actuarial Present Value allocated to a valuation year is called the Normal Cost. The portion of this Actuarial Present Value not provided for at a valuation date by the Actuarial Present Value of future Normal Costs is called the Actuarial Accrued Liability. Funded ratio. The actuarial value of assets expressed as a percentage of the Actuarial Accrued Liability. Healthcare cost trend rate. The rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of health care services, plan design, and technological developments. Investment return assumption (discount rate). The rate used to adjust a series of future payments to reflect the time value of money. Medicare Modernization Act (MMA). The federal law which created Medicare Part D. Net OPEB obligation. The cumulative difference since the effective date of this statement between annual OPEB cost and the employer's contributions to the plan including the OPEB liability (asset) at transition, if any, and excluding (a) short -term differences and (b) unpaid contributions that have been converted to OPEB - related debt. Normal cost. That portion of the Actuarial Present Value of benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method. Other postemployment benefits (OPEB). Postemployment benefits other than retirement benefits. Other postemployment benefits include postemployment healthcare benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a retirement plan, excluding benefits defined as termination offers and benefits. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 15 Pay -as- you -go. A method of financing a benefit plan under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments and expenses become due. Plan assets. Resources, usually in the form of stocks, bonds, and other classes of investments, that have been segregated and restricted in a trust or equivalent arrangement, in which (a) employer contributions to the plan are irrevocable, (b) assets are dedicated to providing benefits to retirees and their beneficiaries, and (c) assets are legally protected from creditors of the employer or plan administrator, for the payment of benefits in accordance with the terms of the plan. Plan members. The individuals covered by the terms of a benefit plan. Plan membership generally includes employees in active service, terminated employees who have accumulated benefits but are not yet receiving them and retired employees and beneficiaries currently receiving benefits. Substantive plan. The terms of an OPEB plan as understood by the employer and plan members. Unfunded actuarial accrued liability. The excess of the Actuarial Accrued Liability over the Actuarial Value of Assets. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 16 Documentation of Assumptions and Methods Hanf Actuarial and Richard Johnson, FSA considered historical information that was developed by City of Lino Lakes in establishing the actuarial assumptions used in this report. We also solicited input from the City on the reasonableness of each assumption. Since this is the first valuation completed for the City's postretirement medical plan, we expect that it will be appropriate to revisit the actuarial assumptions in future years as experience develops, both within the City and at other agencies required to conduct actuarial valuations under GASB 45. Economic Assumptions If there is not an irrevocable trust established to pay benefits, GASB 45 requires that the employer's expected return on its own invested assets be used to determine the discount rate. If there is an irrevocable trust into which the Annual Required Contribution (ARC) is deposited, then the expected return based on the mix of investments within that trust should be considered. If over time, less than the ARC is contributed, then a pro -rata investment return based on both employer assets and trust assets would be used. A final decision regarding pre- funding of postretirement medical benefits in an irrevocable trust has not yet been made by the City. We have therefore performed valuations assuming an unfunded plan i.e., using a 4.0% discount rate as selected by the City based on rates of return on general City assets currently being recognized by the City Director of Finance - and a funded plan - i.e., using a 6.0% discount rate, the anticipated return on a fully funded plan. A N/A salary increase rate was selected by the City based on recent experience. This assumption is used to spread plan costs as a percent of payroll. Medical Benefit Assumptions Total City Health Plan costs were based on calculations made for the City for 2008 by Hanf Actuarial and Richard Johnson, FSA. The calculations were based on the latest claim and enrollment information available. Costs were then age- adjusted based on Hanf Actuarial and Richard Johnson, FSA's national health care utilization factors. Medical plan cost trend rates for the City medical plans which start at 9% and decline to an ultimate rate of 5% are consistent with Hanf Actuarial and Richard Johnson, FSA's assumptions for other postretirement medical valuations and represent both current plan experience and a realistic expectation of long -term trend. Medical plan participation rates and plan election preferences are based on historical City experience. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 17 Demographic and Other Assumptions Mortality tables used in the actuarial valuation are table developed by the Society of actuaries and deemed appropriate for the group. Termination rates used in the actuarial valuation are based upon national termination studies performed by the Society of Actuaries. They were adjusted to reflect the recent lower termination rates experienced by City of Lino Lakes. Retirement rates used in the actuarial valuation were developed based upon recent City of Lino Lakes experience. The assumed prevalence of spouse or domestic partner coverage was based on recent experience among City retirees. Methods The Projected Unit Credit actuarial and the Entry Age Normal cost methods were both illustrated in this report. Both are common methods used in the actuarial valuations of retiree medical liabilities. The UAAL is amortized as a level dollar amount, consistent with GASB requirements. The maximum amortization period allowed under GASB 45 is 30 years. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2008. A. Plan Description The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2009 there were approximately 63 active participants and 5 retired participants receiving benefits from the City's health plans. B. Funding Policy The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2009, the City contributed $18,889 to the plan. C. Annual OPEB Cost and Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un- funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 41,152 Annual OPEB Cost (Expense) 41,152 Contributions Made (18,899) Increase in Net OPEB Obligation 22,253 Net OPEB Obligation- Beginning of Year 22,481 Net OPEB Obligation- End of Year $ 44,734 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Constributed Obligation 12/31/2008 $ 41,152 45.4% $ 22,481 12/31/2009 41,152 45.9% 44,734 D. Funded Status and Funding Progress As of January 1, 2008, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $329,191. The annual payroll for active employees covered by the plan in the actuarial valuation was $4,859,980 for a ratio of UAAL to covered payroll of 6.8 %. 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 19 OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED) D. Funded Status and Funding Progress (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the January 1, 2008 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4% investment rate of return (net of administrative expenses), which is a blended rate of the expected long -term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 9 %, reduced by decrements to an ultimate rate of 5% after nine years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2009 was 28 years. Note 20 SUBSEQUENT EVENTS Subsequent to year -end, the City issued $170,000 Certificates of Indebtedness for the purpose of financing the purchase of capital equipment. Subsequent to year -end, the City issued $1,015,000 General Obligation Improvement and Utility Revenue Refunding Bonds, Series 2010A. 57 S -{'t Lk. WI( � SS i Uti 1 WS -4 WORK SESSION MEMORANDUM To: Mayor and Council Members From: Al Rolek Date: April 4, 2011 Re: 2011 -2015 5 -year Financial Plan — 1st Draft CC: Attached is the 1st draft of the 2011 -2015 5 -year Financial Plan for discussion at the work session meeting on April 4. The plan was developed following the process approved by the City Council, with the underlying values of meeting our obligations to the citizens of Lino Lakes and maintaining service levels. The draft plan is a compilation of projected needs over the coming five -year period submitted by the department directors for their respective areas of responsibility. It anticipates an overall increase in expenditures of 19.71% for the five -year period. In light of the weakness in the real estate market, anticipated change in the tax base was revised downward from the previous plan, ranging from a 5.0% decrease in 2012 to a 2.0% increase in 2015, reflecting an anticipated market stabilization. The forecast includes both market adjustments and new construction. The net result is a tax base contraction of 1.2% over the five -year period. Given this rate of contraction in the tax base, the city tax rate in the plan is projected to go from 42.003% in 2011 to 53.027% in 2015. The primary reason for the increasing tax rate is the reduction in the tax base forecast. Following the year 2011, a factor of 0 - 2 % per year was used throughout the plan for most expenditure projections. A number of areas, such as energy, fuels, health insurance, etc., were increased at a greater rate in accordance with anticipated market adjustments. Staffing levels were assumed to remain constant over the plan term. The primary drivers q for increases within the draft plan are personnel costs, pavement management, capital equipment replacement planning, and energy costs. Planning for long -term capital outlay is continued throughout the term of the plan. Greater efforts in funding future street reconstruction and park development (not currently included in this draft) through the annual levy will result in additional tax increases in the financial plan. It must be recognized and reiterated that this is a financial plan, not a budget, and it does not constitute authorization for future spending. The city budget will continue to be prepared annually, and current appropriations will continue to be presented to and approved by the City Council on an annual basis. While it is the Council's and staff's intention to be fiscally responsible, it is possible that future budgetary needs may differ from what is outlined in the draft five -year plan, resulting in a tax rate higher or lower than anticipated in the plan. Likewise, the five -year plan will be updated each year and city needs reassessed at the time of renewal. In reviewing this draft plan on Monday night, staff is seeking direction from the City Council in its vision for the future of the city and how it will be managed financially. A review of service policies and priorities will be necessary to obtain direction for preparing the final draft of this plan. It is anticipated that this discussion will take place during the strategic /organizational /budgetary planning session planned within the next few weeks. Following that session staff will prepare another draft of the plan which will incorporate the policy direction resulted from the session. CITY OF LINO LAKES FIVE -YEAR GENERAL FUND PLAN SUMMARY 2011 - 2015 Adopted Estimate Estimate Estimate Estimate Estimate 2010 2011 2012 2013 2014 2015 General Fund Plan Total Estimated Expenditures Total Estimated Revenue 9,461,755 9,439,622 10,017,431 10,464,273 10,903,684 11,326,397 9,461,755 9,439,622 10,017,431 10,464,273 10,903,684 11,326,397 Estimated Surplus /(Deficit) Annual Change % (0.23 %) 6.12% 4.46% 4.20% 3.88% Total Change % from 2010 (0.23 %) 5.87% 10.60% 15.24% 19.71% Tax Levies General Fund Levy Debt Levies Total Tax Levy Annual Change % Total Change % from 2010 Tax Rates 7,816,232 7,719,240 8,621,081 8,997,209 9,423,892 9,835,862 879,182 940,760 974,441 920,635 867,128 681,723 8,695,414 8,660,000 9,595,522 9,917,844 10,291,020 10,517,585 (0.41%) 10.80% 3.36% 3.76% 2.20% (0.41%) 10.35% 14.06% 18.35% 20.96% Tax Capacity Rate 37.903% Annual Change in Tax Rate Total Change in Tax Rate from 2010 42.003% 4.10% 4.10% 50.018% 8.01% 12.12% 51.906% 1.89% 14.00% 52.910% 1.00% 15.01% 53.027% 0.12% 15.12% CITY OF LINO LAKES FIVE -YEAR GENERAL FUND REVENUE PLAN SUMMARY 2011 - 2015 Adopted Adopted Estimate Estimate Estimate Estimate 2010 2011 2012 2013 2014 2015 Total Property Taxes 7,680,232 7,605,240 8,507,081 8,883,209 9,309,892 9,721,862 Total Intergovernmental Revenue 570,323 567,282 420,000 420,000 420,000 420,000 Business Licenses and Permits 43,600 79,200 75,850 76,564 77,292 78,035 Non - Business Licenses and Permits 352,650 333,000 375,250 424,500 426,500 426,500 Charges for Services 10,950 10,900 12,250 15,000 15,000 15,000 Public Safety 268,000 307,000 193,000 193,000 193,000 193,000 Municipal Fines 130,000 135,000 125,000 125,000 125,000 125,000 Investments 93,000 60,000 50,000 60,000 70,000 80,000 Administrative Charges 60,000 56,000 58,000 60,000 60,000 60,000 Miscellaneous 253,000 286,000 201,000 207,000 207,000 207,000 Total Revenues 9,461,755 9,439,622 10,017,431 10,464,273 10,903,684 11,326,397 ANNUAL INCREASE % TOTAL INCREASE % FROM 2010 (0.23 %) 6.12% 4.46% 4.20% 3.88% (0.23 %) 5.87% 10.60% 15.24% 19.71% CITY OF LINO LAKES 2011 - 2015 FIVE YEAR FINANCIAL PLAN GENERAL FUND EXPENDITURES Adopted Adopted Estimated Estimated Estimated Estimated DEPT# DESCRIPTION 2010 2011 2012 2013 2014 2015 ADMINISTRATION 401 MAYOR AND COUNCIL 86,311 88,809 90,209 91,646 93,119 94,631 402 ADMINISTRATION 466,458 451,724 473,543 495,694 519,338 538,679 403 ELECTIONS 23,605 14,060 38,359 43,937 26,622 15,943 404 CABLE TV 2,580 2,713 2,740 2,740 2,740 2,740 405 CHARTER COMMISSION 1,500 1,500 1,500 1,500 1,500 1,500 406 SENIORS 34,954 0 0 0 0 0 407 FINANCE 487,632 507,389 522,661 538,796 556,129 574,812 414 LEGAL CONSULTANTS 160,000 175,000 178,500 182,070 185,711 189,426 TOTAL ADMINISTRATION 1,263,040 1,241,194 1,307,513 1,356,383 1,385,160 1,417,731 COMMUNITY DEVELOPMENT 415 ECONOMIC DEVELOPMENT 99,401 140,278 143,482 146,904 150,524 154,368 416 PLANNING AND ZONING 231,289 212,089 216,999 222,273 227,912 233,963 417 ENGINEERING 216,500 176,600 174,000 172,500 174,000 172,500 418 COMMUNITY DEVELOPMENT 225,530 232,807 240,295 247,074 254,313 262,069 461 ENVIRONMENTAL 97,135 63,033 47,318 48,287 49,322 50,429 462 SOLID WASTE ABATEMENT 36,475 35,569 36,041 36,869 37,754 38,701 463 FORESTRY 65,065 45,957 46,301 47,304 48,373 49,518 TOTAL COMMUNITY DEVELOPMENT 971,395 906,333 904,434 921,211 942,199 961,548 PUBLIC SAFETY 420 POLICE PROTECTION 3,224,357 3,135,130 3,268,115 3,395,397 3,498,290 3,623,623 421 FIRE PROTECTION 516,045 525,844 536,361 547,088 558,030 569,190 422 BUILDING INSPECTIONS 207,560 213,259 222,505 230,991 239,127 248,001 TOTAL PUBLIC SAFETY 3,947,962 3,874,233 4,026,981 4,173,476 4,295,447 4,440,814 PUBLIC SERVICES 430 STREETS 899,249 940,923 1,005,995 1,037,699 1,056,982 1,108,603 431 FLEET MANAGEMENT 423,378 375,531 410,734 444,770 483,273 526,893 432 GOVERNMENT BUILDINGS 499,146 464,291 487,584 514,567 538,197 563,623 450 PARKS DEPARTMENT 541,913 579,944 620,471 660,424 711,337 779,073 451 RECREATION 283,321 295,607 306,218 315,744 326,088 337,362 TOTAL PUBLIC SERVICES 2,647,007 2,656,296 2,831,003 2,973,203 3,115,878 3,315,554 OTHERS 499 CONTINGENCY /OTHERS/TRANSFERS 631,851 761,569 947,500 1,040,000 1,165,000 1,190,750 TOTAL OTHERS 631,851 761,569 947,500 1,040,000 1,165,000 1,190,750 TOTAL GENERAL FUND EXPENDITURES 9,461,255 9,439,626 10,017,431 10,464,273 10,903,684 11,326,397 ANNUAL CHANGE % (0.23 %) TOTAL CHANGE % FROM 2010 (0.23 %) 6.12% 4.46% 4.20% 3.88% 5.88% 10.60% 15.25% 19.71% CITY OF LINO LAKES 2011 - 2015 Estimated Tax Levy Pay Pay Pay Pay Pay Pay 2010 2011 2012 2013 2014 2015 General Fund Levy 7,816,232 7,719,240 8,621,081 8,997,209 9,423,892 9,835,862 Debt Levy Taxable G.O. Imp Bond 2003B 23,524 21,917 20,248 23,781 - G.O. Imp Refunding Bond 2005B 124,176 124,172 134,863 134,528 155,782 G.O. Tax Abatement Bond 2006C (YMCA) 140,091 196,581 235,011 245,511 255,381 264,458 G.O. CIP Bond 2006E ** 322,470 325,410 348,720 339,060 323,940 329,820 Certificate of Indebtedness 2007 60,349 - - - Certificate of Indebtedness 2008 81,732 80,808 Certificate of Indebtedness 2009 126,840 127,008 127,617 - - Certificate of Indebtedness 2010 64,864 64,617 64,890 - Certificate of Indebtedness 2011 - 43,365 42,851 43,481 - Certificate of Indebtedness 2012 - 70,014 39,627 39,239 Certificate of Indebtedness 2013 48,917 48,206 Total Debt Levy 879,182 940,760 974,441 920,635 867,128 681,723 Total Levy 8,695,414 8,660,000 9,595,522 9,917,844 10,291,020 10,517,585 Net Levy 8,695,414 8,660,000 9,595,522 9,917,844 10,291,020 10,517,585 ■ ■ Referendum Levies G.O. Improvement Bond 2012A Total 172,935 165,231 161,818 172,935 165,231 161,818 ** Is decreased by School District lease - through 2011 Taxable Market Value Annual °A, Change Total Net Tax Capacity Value Less FD Contribution in Value Less Captured Value for Tax Increment Total Net Tax Capacity Value Annual °A, Change Total % Change from 2010 Total Levy Less FD Distribution Total Net Levy for Tax Rate Annual % Change Total % Change from 2010 Projected City-76i Caiiibity Rite Adjustment to Maintain 2010 Tax Rate Referendum Levy Market Value Tax Rate $150,000 H General Levy Str Referendum Levy Total Levy $200,000 H General Levy Str Referendum Levy Total Levy $250,000 H General Levy Str Referendum Levy Total Levy $300,000 H General Levy Str Referendum Levy Total Levy $350,000 H General Levy Str Referendum Levy Total Levy $400,000 H General Levy Str Referendum Levy Total Levy CITY OF LINO LAKES 2011 -2015 Financial Plan Net Tax Capacity Calculation Actual 2010 Actual 2011 Estimate 2012 Estimate 2013 Estimate 2014 Estimate 2015 2,001,889,600 (6.22 %) 22,070,825 1,697,800 327,659 1,811,830,300 (9.49 %) 19,801,201 1,576,360 253,376 1,721,238,785 (5.00 %) 18,811,141 1,497,542 240,707 1,721,238,785 0.00% 18,811,141 1,497,542 240,707 1,755,663,561 1,790,776,832 2.00% 2.00% 19,187, 364 1,527,493 245,521 19,571,111 1,558,043 250,432 20,045,366 (4.87 %) 0.00% 17,971,465 (10.35 %) (10.35 %) 17,072,892 17,072,892 (5.00 %) (14.83 %) Net Tax Capacity Rate Calculation 2010 2011 8,695,414 8,660,000 1,097,539 1,111,501 0.00% (14.83 %) 2012 2013 9,595,522 9,917,844 1,055,926 1,055,926 17,414,350 2.00% (13.13 %) 2014 10,291,020 1,077,044 17,762,637 2.00% (11.39 %) 2015 10,517,585 1,098,585 7,597,875 7,548,499 (6.90 %) (0.65 %) (0.65 %) 8,539,596 13.13% 12.39% 8,861,918 3.77% 16.64% 7 903% ', " ._42.00 % 501018%''' " 51.906°1 (736,703) (2,068,390) (2,390,712) 0.000% 569 569 758 758 948 948 1,137 1,137 1,327 1,327 1,516 1,516 0.000% 630 630 840 840 1,050 1,050 1,260 1,260 1,470 1,470 1,680 0.000% 750 750 1,000 1,000 1,250 1,250 1,501 1,501 1,751 1,751 2,001 �gq 2,001 172,935 0.010% 779 15 794 1,038 20 1,058 1,298 25 1,323 1,557 30 1,587 1,817 35 1,852 2,076 40 2,116 9,213,976 3.97% 21.27% 9,419,000 2.23% 23.97% 2.910% ' 53.027 %'' (2,613,345) (2,686,357) 165,231 0.009% 794 14 808 1,058 19 1,077 1,323 24 1,346 1,587 28 1,616 1,852 33 1,885 2,116 38 2,154 161,818 0.009% 795 14 809 1,061 18 1,079 1,326 23 1,348 1,591 27 1,618 1,856 32 1,888 2,121 36 2,157 CITY OF LINO LAKES PERSONNEL - TOTAL 2010 2011 2012 2013 2014 2015 ADMINISTRATION 4.000 4.000 4.000 4.000 4.000 4.000 SENIORS 0.625 - FINANCE 3.000 3.000 3.000 3.000 3.000 3.000 ECONOMIC DEVELOPMENT 1.000 1.000 1.000 1.000 1.000 1.000 PLANNING & ZONING 2.000 2.000 2.000 2.000 2.000 2.000 COMMUNITY DEVELOPMENT 2.500 2.500 2.500 2.500 2.500 2.500 ENVIRONMENTAL 1.100 0.350 0.350 0.350 0.350 0.350 SOLID WASTE 0.300 0.300 0.300 0.300 0.300 0.300 FORESTRY 0.600 0.350 0.350 0.350 0.350 0.350 POLICE 31.250 29.375 29.375 29.375 29.375 29.375 BUILDING INSPECTIONS 2.500 2.500 2.500 2.500 2.500 2.500 STREETS 6.850 7.000 7.000 7.000 7.000 7.000 FLEET 1.150 1.000 1.000 1.000 1.000 1.000 GOVERNMENT BUILDINGS 1.000 1.000 1.000 1.000 1.000 1.000 PARKS 5.500 5.500 5.500 5.500 5.500 5.500 RECREATION 3.200 3.200 3.200 3.200 3.200 3.200 TOTAL GENERAL 66.575 63.075 63.075 63.075 63.075 63.075 WATER 2.150 2.150 2.150 2.150 2.150 2.150 SEWER 2.150 2.150 2.150 2.150 2.150 2.150 GRAND TOTAL 70.875 67.375 67.375 67.375 67.375 67.375 Personnel are shown as Full Time Equivalents (FTE) — n PROJECT COSTS TOTAL 125,000 445,000 90,000 70,000 60,000 0 §§§§§§§§E 0 0 Onfp O W NONtDf m 4 N Q t0 N O m K) i Q M (O m m N 9,tlbH,VVU 180,000 490,000 40,000 67,500 400,000 340,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D O O O o O N � Od ODm J] m h 0 N n N ,-- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O. O O O o N O�Or0 Nf0dO n m N I r 0 Q rT o ` c 6,751,000 1 15,669,000 Easem. /ROW „ O O O , r O "„ r S do- NN O O O O 0 „ r 0 0 O O M Sanitary 70,000 60,000 0 r ", o' 00 0 n u 0 o r„ 0 „ r 0 f0o 67,500 70,000 o r r r o, °r n 75,000 407,500 O in N 0 o O N o m rP r 1,076,500 400,000 340,000 740,000 116,500 S r 8888 N 0000 T R A O 4,405,000 6,338,000 Storm 125,000 90,000 88 ' 00 r 00 rn N m m 00 00 0 r,' rn o 0 N 9 Q N 0 0 r r „ 0 o r N M � N,- NE O T.:0 0 0) O m N 480,000 1,524,212 Street 445,000 0 0 0 0 0 §1§§§§" N ,. n O 0 rn ZfDV vfoN Q Q N O W 0, 0 r 0 0 0 O v m M Q f+i 0 r p 0 ' 0 O N O O 000 m N rn Q N r0 0,2 p N r 0 N 0 0 0 I� 0 I 1,470,750 6,839,038 0 O C 0 Surface Water Management Project' Seal Coat and Overlay Project Local Surface Water Management Plan Update Upgrade Lift Station No. 7 Sanitary Sewer Rehab` rotal Surface Water Management Project Seal Coal and Overlay Project Cedar Street 2014 Reconstruction Feasibility Study' Main /Lake Intersection Improvements Ware /Birch Intersection Improvements Well No. 6 & Pumphouse Sanitary Sewer Rehab Woodridge Estates Trunk Watermain Ext rotal 'Surface Water Management Project Seal Coat and Overlay Project RMP Implementation w /RCWD Sanitary Sewer Rehab Water Tower No. 1 Painting Trunk Watermain Park Ct to Marshan Lane rotal Surface Water Management Project Seal Coat and Overlay Project 2014 Street Reconstruction' 2016 Street Reconstruction Feasibility Study' Sanitary Sewer Rehab Woodridge Estates Trunk Watermain Ext rota! ,Surface Water Management Project Seal Coat and Overlay Project Holly Or (Holly Ct to Cnty J (MSA) Sanitary Sewer Rehab Booster Station Well No. 7 2.5 M gal Ground Storage Trunk Water Main BDD to Aqua (Fees. Stdy) 2015 Sub -Total 2011 TO 2015 TOTALS m } O N O PROJECT COSTS J Q i- 0 'SSSSSSr'0 ourrn0rno N N N N O O 0 0 O Nr - N 0 O r r N - r rn N O Z 2 m m w o m 180,000 j N TO o 0 0 0 (0 00 r O r0 t0 0 r(1 N r 0 r'n r0 N W N O in N n N N N .000 0040100 ) N rn n N 1,525,000 FUTURE PROJECTS Raw watermain to wells 1,3,5 and 6 Water Treatment Plant Redundant 16" Watermain Loop (Birch St) sls Y N n, ,,n,m1_7115 CIP Q N 0 H 0 0. 2 -J U W 5J ? Z 10 J Q O LL W "2 O C 0 V) N D Z Previously Assessed (Fund 423) Other: Sewer Utility Fund Other: Subj to referendum Other: Sewer Utility Fund Other: Sewer Utility Fund TOTAL 125,000 445,000 90,000 70,000 60,000 0 O O P 0 O1.. m §§§§§§§ c C C ¢ co O co' 0000 V m P�mmm N R 180,000 490,000 40,000 67,500 400,000 340,000 1 017 500 180,000 515,000 691,000 50,000 70,000 236,500 ' o O o O ° O O O 0 O O C c J O O u%V%000 r mINr ?lm ` ILb,000 445,000 0 D �Omm 1) 1- o° o 0 0 0 o m 0 °c O o o 0 0 0 0 mrn 1- d' o o 0 0 0 0 0 Ls 1°n N o o 0 0 0 o O o emv r N 1' 1 00 v ui m N m m 4 2,203,000 Assess FUTURE PROJECTS 12th Ave (Birch to Holly Dr) (MSA) CSAH 23 Reconstruction (77th to Main) City Share Raw watermain to wells 1.3,5 and 6 Water Treatment Plant Redundant 16" Water rain Loop (Birch St) 8 c N i . . 0 F. � O ry 70,000 60,000 130,000 10 ° ..3- N 312,500 67,500 400,000 467,500 70,000 O , 0 °r n 75,000 1,055,000 O O lh m O Q' m MSAS 0 N M 1,320,000 1,320,000 ° rn r 000'06 N 78,500 40,000 O , O m 160,000 368,500 0 0- 0. E Oi N 0 N 340,000 238.500 8$ o N N N 6 O N W St m O V 4,405,000 6,178,000 r'KVJCI. I Surface Water Management Project' Seal Coat and Overlay Project Local Surface Water Management Plan Update Upgrade Lift Station No. 7 Sanitary Sewer Rehab` Total Surface Water Management Project Seal Coat and Overlay Project Cedar Street 2014 Reconstruction Feasibility Study Main /Lake Intersection Improvements Ware /Birch Intersection Improvements Well No. 6 & Pumphouse Sanitary Sewer Rehab Ext Woodridge Estates Trunk Watermain total Surface Water Management Project Seal Coat and Overlay Project RMP Implementation w /RCWD Sanitary Sewer Rehab Water Tower No. 1 Painting Surface Water Management Project Seal Coat and Overlay Project 2014 Street Reconstruction' 2016 Street Reconstruction Feasibility Study° Sanitary Sewer Rehab E t T k Watermain FM Woodridge sla es run Total Surface Water Management Project Seal Coat and Overlay Project Holly Dr (Holly Ct to Cnty J (MSA) Sanitary Sewer Rehab Booster Station Well No 7 2.5 M gal Ground Storage r_._,. ,n...,... r.e.,... an!, n,., ,n lFme CMv1 d O rn m 0 E w° C G.0 O m 0 0 U m U 0 C O C 0 a Other 1 FUTURE PROJECTS 12th Ave (Birch to Holly Dr) (MSA) CSAH 23 Reconstruction (77th to Main) City Share Raw watermain to wells 1.3,5 and 6 Water Treatment Plant Redundant 16" Water rain Loop (Birch St) 10- � O ry CITY OF LINO LAKES 2011 -2015 FINANCIAL PLAN STREET AND UTILITY CAPITAL IMPROVEMENT PROGRAM Funding Source Summary - Street Maintenance Protect Funds Funding Source Summary - Street & Utility Project Funds 2011 2012 2013 2014 2015 Beginning Undesignated Cash Balance 1/1 - - - - - Area & Unit Charges /Assessments' 500,000 500,000 500,000 500,000 500,000 Property Tax Support 445,000 467,500 490,000 515,000 540,750 Surface Water Management Transfers In - 78,500 - _ 160,000 Street Maintenance Projects (445,000) (467,500) (490,000) (515,000) (540,750) Interest Income @ 1% - 834,000 - - - Other Financing Sources - 2,006,500 - 444,000 Ending Cash Balance 12/31 - - ( 340,000) - - Funding Source Summary - Street & Utility Project Funds Funding Source Summary - Area & Unit Fund 2011 2012 2013 2014 2015 Beginning Undesignated Cash Balance 1/1 - - - - - Area & Unit Charges /Assessments' 500,000 500,000 500,000 500,000 500,000 Area & Unit Transfers In - - - - - Surface Water Management Transfers In - 78,500 - _ 160,000 MSA Participation - 100,000 100,000 100,000 1,320,000 Anoka County Participation - 834,000 - - - Other Financing Sources - 2,006,500 - 444,000 Tax Increment Financing - - ( 340,000) - - Special Assessments _ - - 247,000 70,000 Property Tax Support - 40,000 - 50,000 - Interest Income © 1% 30,260 21,186 22,261 25,191 (13,059) Capital Outlay Projects - (2,959,000) - (741,000) (1,550,000) Interest Income @ 1% - 2,139,744 2,248,368 2,544,337 (1,318,940) Fnrlino Cash Balance 12/31 - - - - - Funding Source Summary - Area & Unit Fund * Based on currently assessed amounts **` Need for transfers evaluated annually It 2011 2012 2013 2014 2015 Beginning Undesignated Cash & Investment Balance 1/1 2,787,909 3,056,306 2,139,744 2,248,368 2,544,337 Area & Unit Charges /Assessments' 500,000 500,000 500,000 500,000 500,000 Area & Unit Charges - Legacy/Woods Edge - - - - Flat Water Charges /Penalties 240,000 240,000 240,000 240,000 240,000 Repayment of Recreation Complex Loan 100,000 100,000 100,000 100,000 100,000 Temporary Interfund Loan - - - - - Capital Outlay Projects -Tfrs to Project Funds (1,196,500) ( 340,000) (236,500) (4,405,000) to Project Funds (60,000) Debt Service Payments/Transfers "* 601,863 (601,863) 581,249 ( ) 353,,, ( 637 ) (332,722) (285,218) Interest Income © 1% 30,260 21,186 22,261 25,191 (13,059) Fnriina Cash Balance 12/31 3,056,306 2,139,744 2,248,368 2,544,337 (1,318,940) * Based on currently assessed amounts **` Need for transfers evaluated annually It CITY OF LINO LAKES 2011 -2015 FINANCIAL PLAN STREET AND UTILITY CAPITAL IMPROVEMENT PROGRAM Funding Source Summary - Surface Water Management Fund 2011 2012 2013 2014 2015 Beginning Undesignated Cash Balance 1/1 277,451 249,926 233,740 256,277 319,440 Surface Water Mgmt Charges /Assessments 60,000 60,000 60,000 60,000 60,000 Capital Outlay Projects (90,000) (78,500) (40,000) - (160,000) Tfrs to Project Funds Interest Income @ 1% 2,475 2,314 2,537 3,163 2,194 Ending Cash Balance 12/31 249,926 233,740 256,277 319,440 221,634 CITY OF LINO LAKES 2011 -2015 Financial Plan Capital Equipment Replacement Financing Schedule Police, Fire, Public Works & Parks 2011 2012 2013 2014 2015 2008 Certificate 80,808 2009 Certificate 127,008 127,617 2010 Certificate 64,864 64,617 64,890 2011 Certificate 43,365 42,851 43,481 2012 Certificate 40,014 39,627 39,239 2013 Certificate 48,917 48,206 Debt Levy 272,680 235,599 147,754 132,024 87,444 Equip Levy Total Levy Annual Change in Levy 200,000 300,000 400,000 450,000 500,000 472,680 535,599 547,754 582,024 587,444 62,919 12,155 34,270 5,420 New Certificates Issued 120,000 110,000 135,000 Equipment Replacement Fund 2011 2012 2013 2014 2015 Balance 1/1 174,552 100,027 3,279 5,463 95,698 Certificates /Levy 320,000 410,000 535,000 450,000 500,000 Unused 5% Overlevy 12,985 11,219 5,131 6,287 4,164 Scheduled Purchases Public Services ($257,000) ($345,000) ($365,000) ($214,000) ($238,000) Police (76,500) (102,000) (102,000) (78,000) (78,000) Fire (87,000) (87,000) (87,000) (87,000) (87,000) Other Equipment (Engineering, Inspect) - - - Sale of Used Vehicles (Salvage) 12,000 16,000 16,000 12,000 12,000 Interest Income @ 1% 990 32 54 948 2,089 Balance 12/31 100,027 3,279 5,463 95,698 210,950 City of Lino Lakes Capital Equipment Replacement Future Levy Impact: 2008 Certificates Total w /5% Principal Interest Total Overlevv Balance 2008 Certificates Issued 209,000 2009 63,000 16,023 79,023 82,975 146,000 3,951 2010 72,000 5,840 77,840 81,732 74,000 3,892 2011 74,000 2,960 76,960 80,808 0 3,848 Totals 209,000 24,823 233,823 245,515 Future Levy Impact: 2009 Certificates Total w15% Principal Interest Total Overlevy Balance 2009 Certificates Issued 336,000 2010 104,000 16,800 120,800 126,840 232,000 6,040 2011 114,000 6,960 120,960 127,008 118,000 6,048 2012 118,000 3,540 121,540 127,617 0 6,077 Totals 336,000 27,300 363,300 381,465 Future Levy Impact: 2010 Certificates Total w /5% Principal Interest Total Overlevv Balance 2010 Certificates Issued 170,000 2011 52,000 9,775 61,775 64,864 118,000 3,089 2012 58,000 3,540 61,540 64,617 60,000 3,077 2013 60,000 1,800 61,800 64,890 0 3,090 Totals 170,000 15,115 185,115 194,371 Future Levy Impact: 2011 Certificates Total w /5% Principal Interest Total Overlevv Balance 2011 Certificates Issued 120,000 2012 39,000 2,300 41,300 43,365 81,000 2,065 2013 40,000 810 40,810 42,851 41,000 2,041 2014 41,000 410 41,410 43,481 0 2,071 Totals 120,000 3,520 123,520 129,696 Future Levy Impact: 2012 Certificates Total w /5% Principal Interest Total Overlevv Balance 2012 Certificates Issued 110,000 2013 36,000 2,108 38,108 40,014 74,000 1,905 2014 37,000 740 37,740 39,627 37,000 1,887 2015 37,000 370 37,370 39,239 0 1,869 Totals 110,000 3,218 113,218 118,879 Future Levy Impact: 2013 Certificates Total w /5% Principal Interest Total Overlevv Balance 2013 Certificates Issued 135,000 2014 44,000 2,588 46,588 48,917 91,000 2,329 2015 45,000 910 45,910 48,206 46,000 2,296 2016 46,000 460 46,460 48,783 0 2,323 Totals 135,000 3,958 138,958 145,905 Total Overlevies 2011 12,985 2012 11,219 2013 5,131 2014 6,287 2015 4,164 N W 0 Replace #242, 1995 Backhoe Replace #204, 2002 Chevy 1/2 Ton Replace #134, 2001 Vac Trailer Replace #400, 2000 GMC 1 Ton Replace #230, 2000 Elgin Sweeper Replace #205, 2003 1 Ton with Plow Replace #702, 20031/2 Ton Pickup Replace #132, 1999 Case Skid Steer Replace #128, 1995 Mower Replace #246, 1999 Ford Dump Truck Replace #202, 1999 Roller Replace #140, 2007 Tractor and Broom Replace #220, 2004 Ford 1/2 Ton w /plow Replace #240, 1991 Chevy 1/2 Ton Replace #525, 2004 Ford Truck Replace #206, 2005 Chevy 1 Ton Replace #233, 2004 Ford 1/2 Ton Replace #119, 2001 Tractor Replace 1998 Green Tandem Trailer Replace #117, 2002 Tractor Replace #208, 2006 Chevy 1 Ton Replace #207, 2006 Ford 1/2 Ton Replace #209, 2006 Ford 1/2 Ton Replace #401, 2006 Chevy 1/2 Ton Replace 2000 Roller Trailer O 0 O O 0 O 0 O O O O O N Ef N O V O O VY O 0) O O m O o O wi 0 0 O 0 00 O 0 O O N YR ACQUIRED 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO 0 0 0 0 0 0 0 0 0 0 0 O N U USEABLE LIFE 0) rn rn rn 0) 0) rn rn 0) m rn O rn m rn rn VEHICLES 1 EQUIPMENT Tractor Backhoe F -350 Sign Truck with Attachments o 1 Ton Pickup Dump Box and Plow Elgin Street Sweeper 1 Ton Pickup w/ Plow 0 Case Skid Steer 0 2 0 0 Ditch Mower (Flail Attachment) Single Axle Dump Truck w/ Plow Tractor and Broom Attachment 4 Ton Pickup w/ Plow a 0 1 Ton Pickup wl Utility Box & Hoist 1 Ton Pickup w/ Plow L-2 0 0 E O 0 d 0 2 Toolcat with Attachments 1 Ton Pickup wl Plow n 0 0 d 0 U) 0 0) -J 0 H O V 0 CO c 0 0 O N Q N 0 0, 0) CO O 0 0 0) 0 -Cr }�F rcn▪ .% C UJ CD ▪ •V - C O CZ Cr Z •= W in O N U ‘i■ tee ca v 0 a) O 0 COMMENTS Replaces 2006 Ford Crown Vic Replaces 2006 Ford Crown Vic Replaces 2007 Ford Crown Vic Replaces 2007 Ford Crown Vic Replaces 2007 Tahoe Replaces 2007 Ford Crown Vic Replaces 2008 Ford Crown Vic Replaces 2008 Ford Crown Vic Replaces 2006 Ford F -250 Replaces 2008 Ford Crown Vic Replaces 2008 Ford Crown Vic Replaces 2009 Ford Crown Vic Replaces 2010 Ford Crown Vic Replaces 2011 Ford Crown Vic Replaces 2011 Ford Crown Vic Replaces 2011 Ford Crown Vic Replaces 2012 Ford Crown Vic 'Replaces 2012 Ford Crown Vic 2015 00 0 N 00 0 N 26,000 0 0 0 CO ti 2014 26,000 O O O O N 26,000 78,000 2013 0 In 1. N I 25,500 25,500 25,500 0 0 0 (V 0 2012 25,500 25,500 25,500 25,500 102,000 T 0 N 25,500 25,500 25,500 76,500 VEHICLES / EQUIPMENT 12010 Ford Crown Victoria 12011 Ford Crown Victoria 12011 Ford Crown Victoria 12011 Ford Crown Victoria 12012 Squad (unknown type) 12012 Sauad (unknown type) 12012 Sauad (unknown type) 12012 Squad (unknown type) 12012 Ford F -250 12013 Sauad (unknown type) . p. • _T C 3 O C Y C C as C _ II ('7 O N 12013 Sauad (unknown type) N . fl • T c 0 O C Y c - 7 D CO 7 _ C O 12014 Squad (unknown type) 12014 Squad (unknown type) 12015 Sauad (unknown type) 12015 Squad (unknown type) 12015 Squad (unknown type) TOTAL 0 0. Z z w 0) w 0 a U V) W H J U LL 0 V7 w Z CD W Z J 003 m J J Le LL a N 00 ~ O o U 5 E E U PROJECT FUNDING SOURCES 1 TOTAL 75,000 70,000 25,000 O ' o O 7 I _ 300,000 O O O O o O O O O) 7 0 O O O W 2014 GF Tax Levy 207,818 0_ 0 CO 0 0) " 7,386 W V r- 0) C O C O co 0 (OD (0D eh N to d N V Q 0 W 0 O CA N � Other I 20 (3( O co Facilities Fund 75,000 70,000 25,000 O O O 300,000 300,000 90,000 O O 6 $ 560,000 N '7 O C` 0 O N CO 0 cri In 0) 75,000 70,000 25,000 170,000 O 0 0 0 c) 300,000 90,000 O O 0 6 0) �$ 560,000 W (O PROJECT CO 0 N ' O 0 0 6 O) 90,000 I 0 0 0 O 0) M 75,000 70,000 25,000 O O O 300,000 300,000 1,404, $ 470,000 C J o zz (535 15 m 1Beginning Undesignated Cash Balance 1/1 1Cellular Antenna Leases General Fund Contributions i- 0 0) 0 0 a Feasibility Study - Pub Works Facility Reroof Fire Station # 2 Fire Station # 2 Window /Door Repairs /Replacements 31 31 SalUSand Storage Building 31 Civic Center Parking Lot Expansion al al TAL R Y N Public Works Facility estimated cost of $6,000,000 /7 LL cn m 7 Source Summa 2015 745,968 213,847 i - 0 ' 0 0 CO CO r (D CO 977,493 2014 W N O 207,818 0_ 0 CO 0 0) " 7,386 W V r- 0 (OD (0D eh 0 W 0 O CA N N 69 20 (3( O CO O O ? MI N '7 O C` 0 O N CO 0 D 0) CO 3° 1i 0) O W (O 0 0 N O O V o0) CV 1,404, 8 103, o zz (535 15 m 1Beginning Undesignated Cash Balance 1/1 1Cellular Antenna Leases General Fund Contributions Lease Revenue Grants /Rebates Capital Outlay Projects -Tfrs to Project Funds Interfund Loan - Debt Service 2005A Interest Income — 1% Ending Cash Balance 12/31 WS — Item 5 WORK SESSION STAFF REPORT Work Session Item Date: April 4, 2011 To: City Council From: Jeff Smyser Re: Oppidan and 49/J Development Background At the March 7 work session, the project team from Oppidan discussed their prospective project in the area of Hodgson Road and Ash Street (CSAH 49 and CSAH J). They have prepared some graphics that illustrate means of addressing some of the issues discussed at the meeting. Members of the team will attend the April 4 work session to present the information and further discuss the project with the City Council. Requested Council Direction Staff is seeking direction regarding the City Council's interest in pursuing a grocery store development in this location. Attachments Overall Concept Plan Section Plan Concept Plan Typical Building Design Images uoisinaH JagwnN laaUS S39VINI N9IS30 0 3H01S AH330119 0 re • --1 4 .4 4 .4 _ 4s, HODGSON ROAD 0 a. CD CD a 0 3901S AH3301:19 • • 0 0 w u-1 rn 2 rn 6-) rn z u, r- 5 1 V cc I — , - t / 41:7 Lt (.7 r ' C5 EZi• t rt. C:) 0 0 0 _73 w rn m 6-) - rn 0 z wts" —i 0 > -0 0 2 0 o rn 1 C> 4 iPROPERTY - LINE 1.5127:12 11 11 -11 m 0 m uo,SIAaa iagwnN laagS Ntlld NOI103S CD 19 3t3 0 3a01S AU390H9 oJ • • MEP , isi _.. ,.. i _.::,-,-,..„-,.....,,,,,.,,,,,,,„:„: ... r ,, v a .., " ,2.;--•'-'1, - .. Jj7 ' a*f x a C yt ::::-.1:4,11', T�F` p 0 CC 3� z t, _ , ,,,, , f\,) , ,_, C3 , art *�" ;y \\WATER hi (.- .i ' : ' '� POND �� ■ ,I ' \\ 6' TALL WO�P ' t ti H'RIVACY FENCE { °�; �, PROPOSED 8UftD ?1d , �� ; • ,V �'' r_ O ±49,500 S.F. ,' ( 1 ,,„ ,,g,*, \\..i\4 y x Mt n° �. foal , I 1 n ii43 ' , ''' \' ' \\.. 1 t i I 'u �LIQUO2 BOX CV.J Li \ '' BLOCK° -- '') LOT 1 1 ` • , , . 4. ..O ACRES 1 8..' i!,,,,,... ■ '� STORM WATER` <" - ill POND *' I • ff } � T ■ ■ HODGSON ROAD o 6' TALL WOOD PRIVACY FENCE AND TREES AT PROPERTY LINE D A X. 73 m C A S A 0 0 2 y ON • ° y * Zr,, - n o 0 v m m Io S.Xoo o o m° C p G C 2 2 2 2 23 G1 G1 G1 61 11 11 p 10 1 t• u+ to • v • �T �T coo 01 • CO 0 N 00 T O p N V1 O1 n O 00 co c R 11 11 0A 01 77 N V1 =a V W b O CO 00 P b a o ■ a non D D G D D 123 in ▪ VI ^ G G G m D uolslnaa JagwnN ways 31101S Ali330119 co co E z m 00 rrt , — --- I 1 I 1 I \', 1 \ , 1 \ , \ pROPERTY LINE 4 - a ' 1°- Q 2 4Z) 0 0 0 tri 1 PROPERTY LINE >UJ -40 rro z 0 Ct A < fri rn 000 0 cs 00 c r — t-4 Z oo rn m z 0 coa' cc. co = m r- co m 32. 0 0 3a01S A1300U0 0 WS — Item 6 WORK SESSION STAFF REPORT Work Session Item No. 6 Date: April 4, 2011 To: City Council From: Jeff Karison Julie Bartell Jean Viger Re: Sign Ordinance Background The City Council approved the first reading of Ordinance No. 08 -11 on March 14. The Council discussed the odd year municipal election calendar, including the absentee balloting period, and moved to amend the ordinance to allow for a 30 -day period for election signs prior to the City's municipal election. Staff has since been informed by the city attorney that MN Statute 203B.081 requires that the City's municipal election calendar include a 46 -day absentee balloting period prior to the November election. Because of this information, the second reading of the ordinance was pulled from the March 28 Council agenda. Staff contacted the Secretary of State's Office and received a written response on March 31 confirming that the absentee voting period is 46 days for "all regularly scheduled elections." The time period for signs does not necessarily have to match the absentee ballot period, but then you would have people voting absentee before election signs are allowed to be posted. Staff will add the second reading of the ordinance to the April 11 Council agenda. Requested Council Direction Staff is recommending that the Council adopt the second reading of the ordinance by allowing a 46 -day time period for election signs to be consistent with even year elections. Attachments Memo from City Attorney Joe Langel Email Correspondence from Secretary of State's Office Minn. Stat. Sections 203B.081 and 200.02 Ordinance No. 08 -11 MEMORANDUM TO: City Council FROM: Joe Langel, City Attorney DATE: March 25, 2011 RE: Sign Ordinance Modification At the City Council meeting on March 14th, the Council approved the first reading of Ordinance No. 08 -11, Amending Chapter 1010 of the City Code regarding Regulation of Signs in Election Years. Prior to approval, the portion of the amendment setting forth the time period before an election during which the size and number of non - commercial signs are not restricted was changed from 46 days to 30 days. The number of days was tied to the absentee ballot period. It was the understanding of the Council at that time that the absentee ballot period for City elections was 30 days, not the typical 46 days for state elections. Further review by staff following that meeting revealed that the absentee ballot period for the City's odd -year elections are in fact 46 days, not 30. State law provides that eligible voters may vote by absentee ballot during the 46 days before "a regularly scheduled election for... city... office." Minn. Stat. § 203B.081. Although the City's elections take place in odd years, they are still considered regularly scheduled general elections. See Minn. Stat. sr 200.02, subd. 2 (general elections are elections held at regular intervals on a day determined by law or charter). There is a 30 -day absentee voting period set forth in the statute, but it applies only to local, special elections (e.g., special election to fill a vacancy). In light of the fact that the absentee voting period is in fact 46 days, the Council may wish to reconsider the time period regulating sign restrictions. The time period does not have to match the absentee ballot period, but doing so would be consistent with regular, even year elections. Also, doing so allows candidates to use their signs to communicate to absentee voters during the entire absentee voting period. Jeff Karison —rom: Lokken, Andy (OSS) [andy.lokken @state.mn.us] ent: Thursday, March 31, 2011 8:59 AM To: Jeff Karison Subject: Absentee balloting period for municipal elections Hi Jeff: In our conversation earlier we discussed the absentee voting period for municipal elections. As we discussed, Lino Lakes' odd numbered year elections are still regularly scheduled, even though they are not in conjunction with the State Primary and State General held in even numbered years. The absentee voting period for the following elections is 45 days: 1. All regularly scheduled elections 2. Special elections for federal or county office 3. Any election held in conjunction with those listed in 1 or 2 For any other election the AB period is 30 clays. Here is a Zink to the statute: https: / /www.revisor.mn.Rov /statutes / ?id= 203B.081 'lease feel free to contact me with any questions. I am happy to help. Andy Andy Lokken Election Administrator Office of the Minnesota Secretary of State 180 State Office Building 100 Rev. Dr. Martin Luther King, Jr. Blvd. Saint Paul, Minnesota 55155 ph: 651/556 -0646 fax: 651/296 -9073 1 203B.081 LOCATIONS FOR ABSENTEE VOTING IN PERSON. An eligible voter may vote by absentee ballot in the office of the county auditor and at any other polling place designated by the county auditor during the 46 days before; * *(1) a regularly scheduled election for federal, state, county, city, or school board office * *o i * *(2) a special election for a federal * *or county office * *; and * *(3) an election held in conjunction with an election described in clauses (1) and (2), and during the 30 days before the any other election designated by the county auditor. The county auditor shall make such designations at least 90 day:, 14 weeks before the election. At least one voting booth in each polling place must be made available by the county auditor for this purpose. The county auditor must also make available at least one electronic ballot marker in each polling place that has implemented a voting system that is accessible for individuals with disabilities pursuant to section 206.57, subdivision 5. History: 1997 c 147 s 17; 1999 c 132 s 12; 2008 c 244 art 1 s 7; 2010 c 184 s 6; 2010 c 201 s 18 **Effective August 1, 2010 203B.085 COUNTY AUDITOR'S OFFICE AND TOWN CLERK'S OFFICE TO REMAIN OPEN DURING CERTAIN HOURS PRECEDING ELECTION. The county auditor's office in each county and the clerk's office in each city or town authorized under section 203B.05 to administer absentee balloting must be open for acceptance of absentee ballot applications and casting of absentee ballots from 10:00 a.m. to 3:00 p.m. on Saturday and until 5:00 p.m. on the day immediately preceding a primary, special, or general election unless that day falls on a Saturday or Sunday. Town clerks' offices must be open for absentee voting from 10:00 a.m. to 12:00 noon on the Saturday before a town general election held in March. The school district clerk, when performing the county auditor's election duties, need not comply with this section. History: 1983 c 303 s 4; 1991 c 265 art 9 s 61; 1999 c 132 s 13; 2000 c 467 s 8; 2004 c 293 art 2 s 13 203B.09 FORM AND CONTENT OF REQUIRED MATERIALS; RULES OF SECRETARY OF STATE. The secretary of state shall adopt rules establishing the form, content, and type size and style for the printing of blank applications for absentee ballots, absentee voter lists, return envelopes, certificates of eligibility to vote by absentee ballot, ballot envelopes and directions for casting an absentee ballot. Any official charged with the duty of printing any of these materials shall do so in accordance with these rules. History: 1981 c 29 art 3 s 9; 1990 c 585 s 20 NEW LANGUAGE 2010 - Effective date June 25, 2010 203B.10 DELIVERY OF ABSENTEE BALLOT APPLICATIONS TO ELECTION JUDCES. (a) On the day before an election: (1) the county auditor shall deliver to the municipal clerks within that county (2) the municipal clerks shall deliver the applicatio ! ! £: judges. Applications received on election • ! A an absentee ballot board. (b) Delivery of the applications to the municipal clerks and election judges in the 9 CHAPTER 200 GENERAL PROVISIONS; DEFINITIONS 200.01 MS 1957 Repealed, 1959 c 675 art 13 s 1 200.01 CITATION, MINNESOTA ELECTION LAW. This chapter and chapters 201, 202A, 203B, 204B, 204C, 204D, 205, 205A, 206, 208, 209, 211A, 211B, and 211C shall be known as the Minnesota election law. History: 1959 c 675 art 1 s 1; 1981 c 29 art 1 s 1; 1987 c 266 art 1 s 1; 1988 c 578 art 1 s 1; 1996 c 469 art 2 s 1 200.015 APPLICATION. The Minnesota election law applies to all elections held in this state unless otherwise specifically provided by law. History: 1981 c 29 art 1 s 2; 1987 c 266 art 1 s 2 NOTES AND DECISIONS 200.015 The statutory canons of construction applicable to general elections, as embodied in these statutes, are also given effect in school district elections. Ganske v. Independent School District No. 84, 271 Minn. 531, 136 N.W.2d 405 (1965). 200.02 MS 1957 Repealed, 1959 c 675 art 13 s 1 200.02 DEFINITIONS. Subdivision 1. Application. The terms defined in this section apply to the Minnesota Election Subd. 2. General election. "General election" means an election held at regular intervals on a day determined by law or charter at which the voters of the state or any of its subdivisions choose by ballot public officials or presidential electors. Subd. 3. Primary. "Primary" means an election at which the voters of the state or any of its subdivisions choose by ballot the nominees for the offices to be filled at a general election. Subd. 4. Special election. "Special election" means: (a) An election held at any time to fill vacancies in public offices; or (b) An election held by a subdivision of the state for a special purpose. Subd. 5. Special primary. "Special primary" means an election held to choose the nominees for vacant public offices to be filled at a special election. Subd. 6. Political party. "Political party" means an association of individuals under whose name a candidate files for partisan office. Subd. 7. Major political party. (a) "Major political party" means a political party that maintains a party organization in the state, political division or precinct in question and that has presented at least one candidate for election to the office of: (1) governor and lieutenant governor, secretary of state, state auditor, or attorney general at the last preceding state general election for those offices; or (2) presidential elector or U.S. senator at the last preceding state general election for presidential electors; and whose candidate received votes in each county in that election and received votes from not less than five percent of the total number of individuals who voted in that election. Law. 1 1st Reading: Publication: 2nd Reading: Effective: Council Member moved for adoption of the following ordinance: CITY OF LINO LAKES ORDINANCE NO. 08-11 AMENDING CHAPTER 1010 OF THE CITY CODE RELATING TO THE REGULATION OF SIGNS IN ELECTION YEARS The City Council of the City of Lino Lakes, Minnesota does ordain: Section 1 Findings 1. Chapter 1010 of the Lino Lakes City Code of Ordinances regulates signage. 2. MN Statute 211B.045 governs noncommercial signs in years with state elections, which are in even - numbered years. However, city elections occur in odd - numbered years, so that statute does not cover city election years. 3. Political campaign signs are a form of noncommercial speech and sign regulations must not regulate signage based on the content of the signs. Section 2 Chapter 1010 Amended Chapter 1010 of the City Code is hereby amended as indicated below. Text to be added is underlined, text to be deleted is in ctrikethrough. §1010.006 GENERAL REGULATIONS APPLICABLE TO ALL DISTRICTS (13) Signs in Election Years: In state general election years, the provisions of Minnesota Statute 211B.045, as amended, shall apply. Notwithstanding other provisions of this chapter regulating the allowed size or number of signs, in city election years all temporary noncommercial signs of any size may be posted in any number without a permit from 30 days before the city election until ten days following the city election. Other requirements of this chapter, including those regarding the location of signs, shall continue to apply. (13) Campaign Signs. (a) State General Election years: In a state general election year, the size Statute 211.B.045 as amended. These signs shall be confi - e provided that the property owner's permission has been obtained. • • property, provided that the property owner's perm agencies and individuals not employed by the City of Lino Lakes. Section 3 City Code Stands As Amended As hereby amended, the Section 1010 of the City Code shall stand as initially passed and previously amended. Section 4 In Effect According to City Charter This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter. Jeff Reinert, Mayor Attest: Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this day of , 2011. The motion for the adoption of the foregoing ordinance was duly seconded by Council Member and upon a vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said ordinance was declared duly passed and adopted. WS — Item 7 WORK SESSION STAFF REPORT Work Session Item No. 7 Date: April 4, 2011 To: City Council From: Kent Strege Re: Animal Ordinance — Dangerous Dogs Background The city attorney has reviewed the city's regulations regarding animal control, Section 503 of the City Code, and specifically the regulations pertaining to dangerous animals. He has recommended changes that would streamline, clarify and provide the ability to charge for related services. The updated ordinance reflects the following: Updated definitions of Dangerous and Potentially Dangerous Animal Definition of a proper enclosure, whether it is outdoors or inside Clarifies the definition of unprovoked Lists the steps for declaring an animal as potentially dangerous or as a dangerous animal and the actions that may be taken if the declaration is made, and if the animal owner wishes to dispute the designation The process for dispute of the designation is handled by a hearing officer rather than the city council. Associated costs incurred by the city can be charged against the owner The appeal of the ruling by a hearing officer is to be presented to the Court of Appeals These changes will remove unclear language and insert more specific terms that are consistent with legal standards. The process to designate and dispute the designation of a dangerous or potentially dangerous animal will lie with a hearing officer designated by the city council rather than with the city council itself. The appeal of the hearing officer's designation is then sent to the legal system, specifically the Court of Appeals which is consistent with current standards. The changes in the ordinance also allow the city to recoup some of the expenses incurred by the city in process these issues. Requested Council Direction Discussion and direction on the implementation of the proposed changes to the Animal Control Regulations as they apply to the dangerous and potentially dangerous issue. Attachments Chapter 503, Animal Control Regulations, with proposed changes (new language is underlined; language to be removed is indicated with a strikethrough) Lino Lakes, MN Code of Ordinances ICHAPTER 503: ANIMAL CONTROL REGULATIONS Section 503.01 Definitions 503.02 Enforcement 503.03 Right of entry 503.04 Impounding animals 503.05 Impounding strays 503.06 Impounding facility 503.07 Redeeming impounded animals 503.08 Disposition of impounded animals 503.09 License and vaccination requirements 503.10 Kennel licenses: private and commercial 503.11 Health and maintenance standards 503.12 Prohibitions 503.13 Confinement in motor vehicle 503.14 Rabies; animal bites 503.15 Dangerous and potentially dangerous animals 503.16 Dangerous animal requirements 503.17 Forfeiture of ownership rights 503.18 Farm animals 503.19 Wild animals 503.20 Penalty 503.21 Exemptions § 503.01 DEFINITIONS. Unless the context clearly indicates otherwise, the words and phrases below are defined for the purpose of this chapter as follows. ANIMAL. Any mammal, reptile, amphibian, fish, bird (including all fowl and poultry) or other member commonly accepted as a part of the animal kingdom. Animals shall be classified as follows: (a) DOMESTIC ANIMAL. Any animal commonly accepted as a domesticated household pet. Unless otherwise defined, these animals shall include dogs, cats, caged birds including pigeons, gerbils, hamsters, guinea pigs, domesticated rabbits, fish, non - poisonous, non- venomous and non - constricting reptiles or amphibians and other similar animals. (b) FARM ANIMAL. Any animal commonly associated with a farm or performing work in an agricultural setting. Unless otherwise defined, the animals shall include members of the equestrian family (horses, mules), bovine family (cows, bulls), sheep, poultry (chickens, turkeys), fowl (ducks, geese), swine (excluding Vietnamese pot - bellied pigs), goats, bees and other animals associated with a farm, ranch or stable. (c) WILD ANIMAL. Any animal commonly considered to be naturally wild and not naturally trained or domesticated, or which is commonly considered to be inherently dangerous to the health, safety or welfare of people. Unless otherwise defined, the animals shall include: 1. Any member of the large cat family (family felidae) including lions, tigers, cougars, bobcats, leopards and jaguars, but excluding commonly accepted domesticated house cats; 2. Any naturally wild member of the canine family (family canide) including wolves, foxes, coyotes, dingoes and jackals, but excluding commonly accepted domesticated dogs; 3. Any crossbreeds such as the crossbreed between a wolf and a dog, unless the crossbreed is commonly accepted as a domesticated house pet; 4. Any member or relative of the rodent family including any skunk (whether or not descented), raccoon or squirrel, but excluding those members otherwise defined or commonly accepted as domesticated pets; 5. Any poisonous, venomous, constricting or inherently dangerous member of the reptile or amphibian families including rattlesnakes, boa constrictors, pit vipers, crocodiles and alligators; and 6. Any other animal which is not explicitly listed above but which can be reasonably defined by the terms of this section, including but not limited to bears, deer, monkeys and game fish. AT LARGE. An animal not under the custody and control of the owner or other person, either: (a) Confined or restrained on the owner's property by leash, cord, chain, enclosure or fencing. Restraint by voice command or a remote electronic training device, on the owner's property, shall be allowed provided that the animal is under the immediate supervision of its owner or other responsible person; or (b) Confined within a private vehicle or restrained by a leash not exceeding six feet in length while off the premises of the owner. AUTHORIZED CITY PERSONNEL. The Chief of Police, law enforcement personnel and others designated by law enforcement personnel to assist in the enforcement of this chapter. A DANGEROUS ANIMAL is an animal that has: 1. Without provocation, caused bodily injury or disfigurement to anyperson on public or private property; 2. Without provocation, engaged in any attack on any person under circumstances which would indicate danger to personal safety; 3. Exhibited unusually aggressive behavior, such as an attack on another animal; 4. Bitten one or more persons on two or more occasions; or 5. Been found to be potentially dangerous and /or the owner has personal knowledge of the same, and the animal aggressively bites, attacks or endangers the safety of humans or domestic animals. NEARING OFFICER. The person designated by the City Council to hear appeals brought pursuant to this Chapter 503. KENNEL, COMMERCIAL. Any structure or premises on which dogs are kept for the business of boarding for a fee, for the business of breeding for sale or other profit- making purpose and not solely for private enjoyment. KENNEL, PRIVATE. Any structure or premises on which four dogs, over six months of age, are kept for private enjoyment and not for monetary gain. (Am. Ord. 17 -08, passed 1 -12 -2009) MALTREATED ANIMAL. An animal that has not been given adequate food, water or shelter as specified in § 503.11 or that has been subjected to the conduct prohibited by M.S. § 343.21, as it may be amended from time to time. OWNER. A person owning, keeping, harboring or acting as custodian of an animal. All adult occupants of the property where the animal resides or is kept are considered an owner or owners. PARCEL OF LAND. A contiguous tract or area of land established by plat, subdivision, or as otherwise permitted by law, that has one legal description and parcel identification number recorded with the Anoka County Property Records Department. Also referred to as a LOT or LOT OF RECORD. PERSON. An individual, firm, partnership or corporation. A POTENTIALLY DANGEROUS ANIMAL is an animal that has: 1. When unprovoked, bitten a human or a domestic animal on public or private property; 2. When unprovoked, chased or approached a person upon the streets, sidewalks, or any public property in an apparent attitude of attack; or 3. A known history or propensity, tendency or disposition to attack while unprovoked, causing injury or otherwise threatening the safety of humans or domestic animals. PREMISES. A building, structure, shelter or land where an animal is kept or confined. PROPER ENCLOSURE. Proper enclosure means securely confined indoors or in a securely locked pen or structure suitable to prevent the animal from escaping and to provide protection for the animal from the elements. A proper enclosure does not include a porch, patio or any part of a house, garage or other structure that would allow the animal to exit of its own volition, or any house or structure in which windows are open or in which door or window screens are the only barriers which prevent the animal from exiting. The enclosure shall not allow the egress of the animal in any manner without human assistance. A pen or kennel shall meet the following minimum specifications: 1. Have a minimum overall floor size of 32 square feet; 2. Sidewals shall have a minimum height of five feet and be constructed of 11 -gauge or heavier wire. Openings in the wire shall not exceed two inches, support posts shall be one and one-Quarter inch or larger steel pipe buried in the ground 18 inches or more. When a concrete floor is not provided, the sidewalls shall be buried a minimum of 18 inches in the ground; 3. A cover over the entire pen or kennel shall be provided. The cover shall be constructed of the same gauge wire or heavier as the sidewalls and shall have no openings in the wire greater than two inches., and 4. An entrance /exit gate shall be provided and be constructed of the same material as the sidewalls and shall also have no openings in the wire greater than two inches. The gate shall be equipped with a device capable of being locked and shall be locked at all times when the animal is in the pen or kennel. PUBLIC NUISANCE ANIMAL. An animal that: (a) Is maintained in a manner that violates § 503.11; (b) By virtue of number or types of animals maintained, is offensive or dangerous to the public health, safety or welfare; or (c) Has been the subject of a violation of this chapter more than two times in a 24 -month period. UNPROVOKED. Unprovoked shall mean the condition in which the animal is not purposely excited, stimulated, agitated or disturbed. It shall be a rebuttable presumption that any attack on a child 14 years of age or younger shall be considered to be unprovoked unless the child is engaged in an act that could reasonably be anticipated to cause an animal to attack or bite. VETERINARY HOSPITAL. A place for the treatment, hospitalization, surgery, care and boarding of animals and birds, under the direction of one or more licensed veterinarians. (Ord. 03 -08, passed 5 -27 -2008) § 503.02 ENFORCEMENT. The provisions of this chapter will be enforced by the Chief of Police, law enforcement personnel, law enforcement designees and the assistance of other personnel when appropriate. (Ord. 03 -08, passed 5 -27 -2008) § 503.03 RIGHT OF ENTRY. Authorized city personnel have the right to enter upon a premises at reasonable times for the purpose of discharging their duties imposed by this chapter when there is reasonable belief that a violation of this chapter has been committed. Authorized city personnel may enter the private dwelling of an individual for the purposes of seizing animals or otherwise enforcing the provisions of this chapter with consent, or by first obtaining a search warrant. (Ord. 03 -08, passed 5 -27 -2008) P§ 503.04 IMPOUNDING ANIMALS. (1) Authorized city personnel may seize and impound an animal found to be in violation of this chapter. These personnel may enter onto private property to seize and impound animals when: (a) They have a reasonable and immediate concern for the animal's health, safety or welfare; (b) They have a reasonable and immediate concern for the health, safety or welfare of human beings or other animals as a result of the animal's continued presence on the property; or (c) They have reasonable cause to believe that a violation of this chapter has occurred or is occurring and that seizure is necessary to prevent further violation, but only after a reasonable effort has been made to contact an occupant of the property. (2) A person must not interfere with authorized city personnel impounding an animal, nor refuse to surrender an animal to these personnel. (3) Written notice of the seizure shall be left in a conspicuous place if personal contact with the animal owner is not possible. (4) The animal owner is responsible for costs for the impounding and housing of an impounded animal. (Ord. 03 -08, passed 5 -27 -2008) § 503.05 IMPOUNDING STRAYS. (1) Authorized city personnel may seize and impound an animal found at large on public property or claimed to be a stray by the occupant of the premises upon which the animal is found. (2) An impounded stray animal displaying a need for medical care may be taken to a veterinarian for emergency treatment. The owner of the animal is responsible for payment of expenses incurred as a result of the veterinarian's treatment. (3) Authorized city personnel shall give notice of an impounded animal to the owner if known. (Ord. 03 -08, passed 5 -27 -2008) § 503.06 IMPOUNDING FACILITY. (1) The Council will designate a place as an animal impounding facility for keeping animals that are impounded by the city. (2) Each month the impounding facility will give to the city a written report showing the animals impounded, the duration of the impoundment and the method of disposal for each animal. (Ord. 03 -08, passed 5 -27 -2008) J§ 503.07 REDEEMING IMPOUNDED ANIMALS. The owner of an impounded animal may redeem the animal upon payment of all impounding and /or boarding fees. The animal owner is responsible for all assessed fees. No dog may be released unless properly inoculated for rabies and licensed by the city. (Ord. 03 -08, passed 5 -27 -2008) § 503.08 DISPOSITION OF IMPOUNDED ANIMALS. If an impounded animal is not redeemed within five business days after the required notice, as specified in §§ 503.04 and 503.05, authorized city personnel may give the animal away or direct the impounding facility to dispose of the animal in a humane manner. (Ord. 03 -08, passed 5 -27 -2008) 1 § 503.09 LICENSE AND VACCINATION REQUIREMENTS. (1) License and registration. All dogs within the City of Lino Lakes shall be licensed except the following: (a) Dogs less than six months of age; (b) Dogs which are brought into the city for appearances in an animal show or trial; and (c) Dogs being used by law enforcement officers. (2) Limitations. No more than three dogs over six months of age shall be kept on a property except as provided for in § 503.10. (Am. Ord. 17 -18, passed 1 -12 -2009) (3) Vaccination required. A person who owns, harbors or keeps a dog over six months old within the city must have the dog vaccinated by a licensed veterinarian with an anti - rabies vaccine that is currently effective. The owner shall be responsible for revaccination of the anti- rabies vaccine upon each expiration date and return to the city for re- licensing of their dog. (4) Tag required. A person who owns, harbors or keeps a dog over six months old within the city must securely attach the City of Lino Lakes identification tag to the dog's collar so that it can be readily seen. The identification tag must be worn by the dog at all times when it is off the owner's or keeper's property. (5) Licensing /vaccination procedures. (a) Application. Except as herein provided, within 30 days of acquiring possession of a dog which has not been licensed by the city, or within 30 days of moving to the city with a dog which has not previously been licensed by the city, the owner of the dog shall make application for a dog license. The application shall be on forms provided by the city. The applicant shall also provide proof of vaccination and spay or neuter status to the city prior to the issuance of a license or renewal of a license. (b) License fee. License application must be accompanied by a non - refundable fee as established by City Council ordinance. (c) Duration of license. All licenses are valid for the same length of time as the rabies vaccination and must be renewed within 30 days after the vaccination or a penalty will be applied in the amount set forth by City Council ordinance. (d) Receipt and tags. Upon completion of the application form, receipt of the license fee(s) and receipt of proof of vaccination and spay or neuter, if applicable, the city shall cause a license fee receipt to be issued to the applicant, along with a metallic tag. The applicant shall cause the tag to be affixed permanently by metal fastening device to the collar of the licensed dog in a manner that the tag is easily observed. If a tag is lost, a duplicate may be issued by the city upon presentation of a receipt showing payment of the initial license fee and upon payment of an additional fee for each duplicate tag in the amount set forth by City Council ordinance. (e) Change of address. An applicant who has obtained a dog license shall notify the city of applicant's address change within corporate limits of the city within 30 days of any address change. (f) Counterfeit certificate. A vaccination certificate is valid only for the dog and owner to which it was issued. A person must not use a rabies vaccination certificate for a different dog than the one for which it was issued. (g) Counterfeit tags. No person shall counterfeit, attempt to counterfeit or attach any counterfeit tag to any dog in the city. (h) Transfer of tags. No person shall transfer a dog tag from one dog to another. (i) Change of ownership. If there is a change in ownership of the dog during the duration of the license, the new owner may have a current license changed to their name upon payment of an ownership transfer fee or may secure a new license. The ownership transfer fee shall be $1. (Ord. 03 -08, passed 5 -27 -2008) § 503.10 KENNEL LICENSES: PRIVATE AND COMMERCIAL. (1) General. Any person who owns, keeps or allows the keeping of more than three dogs over six months of age on any parcel of land must first acquire a kennel license from the city. A person who owns or operates a commercial kennel or a private kennel must renew the license annually and comply with applicable requirements herein. (a) An application for a private or commercial kennel license must be submitted to the Police Department accompanied by the fee established by City Council ordinance. (b) A kennel license may be issued after an inspection reveals that adequate safeguards are present to protect the surrounding neighborhood from nuisances and to ensure compliance with this chapter as well as Chapter 1007. A license may not be issued if the location does not comply with the applicable health and maintenance standards set forth below. The license may include conditions that authorized city personnel deem reasonably necessary to protect public health and safety and to protect people in neighboring property from unsanitary conditions, unreasonable noise and odors and other unreasonable annoyances. The license or permit may be reasonably modified by authorized city personnel if necessary to respond to changed circumstances. The modification will be effective ten days after the mailing of written notice by certified mail to the holder. (c) Each dog over six months of age is required to have an individual dog license obtained by the city. (d) A kennel license will be issued for a maximum of one year and will expire on May 31 of each year. A license may be revoked because of a violation of this chapter, or another relevant law, ordinance or regulation. (2) Private kennel. A minimum of one acre of land is required to obtain a private kennel license in any zoning district. Every kennel shall be enclosed or fenced in a manner as to prevent the running at large or escape of animals confined therein. A private kennel license shall be limited to a maximum of four dogs. (3) Commercial kennel. Commercial kennels shall also be subject to the provisions of Chapter 1007. (Ord. 03 -08, passed 5 -27 -2008) § 503.11 HEALTH AND MAINTENANCE STANDARDS. (1) All animals - health standards. The owner of an animal kept in the city must comply with the following standards. (a) An animal kept outdoors or in an unheated enclosure must be provided with adequate shelter and bedding to protect it from the sun, rain, snow and temperatures below 50 °F. (b) The shelter must include a moisture proof and windproof structure of suitable size to allow the animal to stand in an upright position and to lie down stretched out so that no part of its body need touch the sides of the structure. The structure must be made of durable material sufficient to allow retention of body heat with a solid floor raised at least two inches from the ground and an entrance covered by a flexible windproof material or self - closing swinging door. The structure must be provided with sufficient quantity of suitable bedding material consisting of hay, straw, cedar shavings, blankets or the equivalent to provide insulation and protection against cold and dampness and to promote retention of body heat. The structure must be structurally sound and maintained in good repair. The structure shall meet the accessory building requirements as set forth in Chapter 1007. (c) In lieu of the requirements of divisions (1)(a) and (1)(b), an animal may be provided with access to a barn with a sufficient quantity of loose hay or bedding and protection against cold and dampness. (d) If an animal is confined by a chain, the chain must be so attached that it cannot become entangled with the chains of other animals or other objects. A chain must be of a size adequate to restrain the animal involved and must be attached to the animal by means of a well fitted collar. The collar must be large enough to allow free breathing but small enough to avoid being easily pulled over the animal's head. A chain must be at least three times the length of the animal as measured from the tip of his or her nose to the base of his or her tail. (e) A female dog in season must be confined indoors or in a secure enclosure so that she will not be in contact, except for intentional breeding purposes, with another dog or create a nuisance by attracting other animals who engage in continued barking, yelping or howling. (f) An animal must be provided with sufficient food and water daily to meet adequate nutritional requirements. (g) No person shall beat, torment, tease or otherwise abuse an animal, or permit an animal to fight. (h) The owner of any animal within city limits will provide veterinary care when needed to prevent suffering of any sick or injured animal. (2) All animals - maintenance standards. An owner of an animal kept in the city must comply with the standards below. Before commencing an action to enforce compliance with these standards, enforcement personnel must give an owner notice of a violation and a reasonable opportunity to comply. (a) An owner must maintain an animal and the area where it is kept so that no odor that offends the senses of a reasonable person is detected, for more than one day, off the property where the animal is kept. (b) An owner must maintain the property where the animal is kept so that there is no erosion and no drainage of water contaminated by the animal, onto adjacent properties or into wetlands. (c) The owner must manage the feces and other bodily wastes from the animal in a timely and sanitary manner that prevents health risks and prevents odors that are prohibited under division (2)(a) above. (3) Commercial kennels and veterinary hospitals. In addition to the standards established under divisions (1) and (2) above, commercial kennels and veterinary hospitals must comply with the following standards. (a) Housing facilities must be structurally sound and maintained in good repair. Indoor housing facilities must be adequately ventilated and have ample light, either natural or artificial. (b) An enclosure must be of sufficient size to allow each animal to turn around fully and to stand, sit and lie in a comfortable normal position. The floors of the enclosure must be constructed so as to prevent injury to the animal's legs and feet. (c) The temperature for indoor housing facilities must not be allowed to fall below 50 °F for dogs not accustomed to lower temperatures. (d) Disposal facilities must be provided to minimize vermin, infestation, odors and disease hazards. (e) Adequate storage and refrigeration must be provided to protect food supplies against contamination and deterioration. (f) The premises, cages, enclosures and housing facilities must be clean and disinfected as often as is necessary to maintain clean and sanitary conditions at all times. (g) Animals must be fed at least once a day with clean, wholesome food, sufficient to meet the normal nutritional requirements for the animal's age, size and condition. (h) Clean potable water must be made available to all animals at least twice daily for periods of not less than one hour. (i) Feeding and water receptacles must be kept clean and sanitary at all times. (j) Animals housed in the same primary enclosure must be maintained in compatible groups. Non -adult animals must not be housed in the same primary enclosure with adult animals other than their mothers. (k) An animal exhibiting a vicious disposition must be housed separately. (1) Females in season must not be confined in the same enclosure with males except for breeding purposes. Animals used for breeding must be of compatible size and only one male and one female may be mated at one time in a single enclosure. (m) Animals affected with clinical evidence of infections, contagious or communicable disease must be separated from other animals in a manner to minimize the chance of further infection. An effective program for the control of insects, ecto parasites and other pests must be established and maintained. (Ord. 03 -08, passed 5 -27 -2008) § 503.12 PROHIBITIONS. (1) An owner must not cause or permit his or her animal to run at large within the city limits. This restriction does not apply to: (a) Dogs that have been specially trained and certified to perform tasks to assist people, such as handicapped assistance, police canine duties or search and rescue; (b) Pigeons that have been released for limited periods necessary for exercise, training or competition provided it is not within 12 hours following a feeding; or (c) Dogs that are engaged in a lawful hunt while under the control of a licensed hunter through voice command. (2) An owner must not permit any animal to be on park property, city trails, public property or the property of another without having in the owner's immediate possession a device for the immediate removal of feces material deposited by the animal as well as a container for the transport of the material to an appropriate disposal receptacle. (3) A person must not abandon an animal within the city. (4) A person must not keep, own, harbor or otherwise possess a public nuisance animal, as defined in § 503.01. (5) A person must not allow an animal to create a habitual disturbance. Habitual disturbance shall be defined as howling, yelping, barking, crowing or other kinds of noise for repeated intervals of at least three minutes with less than one minute of interruption that is audible off of the owners' premises. (6) A person must not permit an animal under his or her care, custody or control to damage another person's lawn, garden or other property. (7) A person must not injure, harass or interfere with a police canine in the lawful performance of its duties, or attempt, permit or cause the same. (8) An owner of an animal must not fail to restrain the animal from inflicting or attempting to inflict bodily injury on a person at any place or on a domestic animal off the owner's property, except in the circumstances defined in § 503.15(3)(b), potentially dangerous animal. (9) A person, except police officers in the lawful performance of their duties using a police canine, must not cause or encourage an animal to engage in unprovoked attacks upon human beings or domestic animals. (10) A person must not own, possess, harbor or train an animal for the purpose of fighting with other animals. (11) It is unlawful for an owner to sell or cause to be sold any animal without first providing the purchaser with written certification as to the origin of the animal. (Ord. 03 -08, passed 5 -27 -2008) § 503.13 CONFINEMENT IN MOTOR VEHICLE. (1) A person must not cause or allow an animal to be placed or confined in a motor vehicle without adequate ventilation or when the atmospheric temperature, humidity and sun rays can be reasonably expected to cause suffering, disability or death. Evidence that the animal is suffering from heat stress is prima facie evidence of a violation of this section. (2) This section does not prohibit the transportation of horses, cattle, sheep, poultry or other agricultural livestock in trailers or other vehicles designed and constructed for that purpose. (3) Authorized city personnel who find an animal in a motor vehicle in violation of this section may break and enter into the vehicle if necessary to remove the animal. Neither the personnel nor the city will be liable for vehicle damage that results. An animal removed must be taken immediately to the animal impounding facility to be evaluated by a licensed veterinarian. The personnel must leave within the vehicle a written notice giving their name and position and the address where the animal may be redeemed. The owner of the animal is responsible for any applicable fees and all medical and housing expenses incurred. (Ord. 03 -08, passed 5 -27 -2008) § 503.14 RABIES; ANIMAL BITES. (1) A dog or animal displaying symptoms of being rabid may be seized at any place or time and will be confined in the city impounding facility at the expense of the owner, until found to be free from rabies. (2) If a dog or other animal appears to be diseased, vicious, dangerous, rabid or has been exposed to rabies, and the dog or other animal cannot be impounded without serious risk of personal injury, the dog or other animal may be killed, if reasonably necessary for the safety of a person or persons. (3) When a dog or other animal has bitten a person and the skin has been broken or the services of a doctor are required, the owner or custodian of the biting animal and the person bitten or his or her parent or guardian must report the incident to the Lino Lakes Police Department within 24 hours of the bite. The dog or other animal must be confined for a period of not less than ten days in a veterinary hospital or on the owner's premises, as determined by the authorized city personnel. These personnel may refuse to permit confinement on the owner's premises if the animal has previously been found repeatedly at large or if the animal does not have a currently effective rabies inoculation. If confinement on the owner's premises is permitted, the animal may not be allowed off the premises or in contact with people or other animals during the confinement period, except for medical purposes. If the owner fails to comply with these restrictions, authorized city personnel may enter onto the property, seize the animal and remove it to a veterinary hospital. The owner is responsible for all costs of confinement incurred under this section. As a condition of releasing a confined animal, authorized city personnel may require that the animal's owner take the animal for an examination by a veterinarian and may require the owner to follow any recommendations from the veterinarian regarding the animal's training or behavior. The authorized personnel must notify the owner of these requirements in writing. Failure to comply with a requirement is a violation of this code, punishable as a misdemeanor and /or as a civil violation. (Ord. 03 -08, passed 5 -27 -2008) r § 503.15 . y w. a .. ! 1 ! i.• BY AN ANIMAL. ATTACK (1) Attack by an animal. It shall be unlawful for any person's animal to inflict or attempt to inflict bodily injury to any person or other animal whether or not the owner is present. This section shall not apply to an attack by a dog under the control of an on -duty law enforcement officer or to an attack upon an uninvited intruder who has entered the owner's home with criminal intent. (2) Destruction of a dangerous animal. The animal control officer shall have the authority to order the destruction of dangerous animals in accordance with the terms established by this chapter. (3) Definitions. (a) A DANGEROUS ANIMAL is an animal which has: 1. Caused bodily injury or disfigurement to any person on public or private property; 2. Engaged in any attack on any person under circumstances which would indicate danger to personal safety; 3. Exhibited unusually aggressive behavior, such as an attack on another animal; 4. Bitten one or more persons on two or more occasions; or 5. Been found to be potentially dangerous and /or the owner has personal knowledge animals. (b) A POTENTIALLY DANGEROUS ANIMAL is an animal which has: 1. Bitten a human or a domestic animal on public or private property; 2 When unprovoked, chased or approached a person upon the streets, sidewalks, or apparent attitude of attack; or 3. Has engaged in unprovoked attacks causing injury or otherwise threatening the safety of humans or domestic animals. (c) PROPER ENCLOSURE. Proper enclosure means securely confined indoors or in a protection for the animal from the elements. A proper enclosure does not include a porch, patio volition. or any house or structure in which windows are open or in which door or window screens are the only barriers which prevent the animal from exiting. The enclosure shall not allow the egress of the animal in any manner without human assistance. A pen or kennel shall meet the following minimum specifications: 1. Have a minimum overall floor size of 32 square feet; 2. Sidewalls shall have a minimum height of five feet and be constructed of 11 gauge 3. A cover over the entire pen or kennel shall be provided. The cover shall be wire greater than two inches; and 1. An entrance /exit gate shall be provided and be co the sidewalls and shall also have no openings in the wire greater than two inches. The gate shall animal is in the pen or kennel. (d) UNPROVOKED. Unprovoked shall mean the condition in which the animal is not purposely excited, stimulated, agitated or disturbed. $ 503.16 POTENTIALLY DANGEROUS ANIMALS. (4)(1) Designation as potentially dangerous animal. The animal control officer shall designate any animal as a potentially dangerous animal upon receiving evidence that a potentially dangerous animal has, when unprovoked, then bitten, attacked or threatened the safety of a person or a domestic animal as stated in division (3)(b) above.an animal meets any of the criteria set forth in the definition of potentially dangerous animal in Section 503.01. After imposing the designation, at the discretion of the animal control officer, the animal owner may be required to comply with one or more of the following conditions: (a) The owner of a dog may be required to complete an approved dog obedience class. (b) The animal may be required to be restrained by chain or leash not to exceed six feet in length and /or muzzled. and under the control of a person 18 years of age or older at all times it is outdoors and not inside a proper enclosure. (c) The owner may be required to show proof of up -to -date rabies vaccination and, if required, licensing. (2) Procedure. When an animal is declared potentially dangerous, the animal control officer shall cause one owner of the potentially dangerous animal to be notified in writing that the animal is potentially dangerous. The notice shall state the date, time, place and circumstances of the incident, a description of the animal, the conditions to be complied with, if any, and shall advise the owner they have 14 days to appeal the determination or the imposition of conditions by requesting a hearing before the hearing officer. A fee of $50.00 shall be posted by the owners to cover the administrative costs of scheduling the hearing. (a) If an owner requests a hearing, a date shall be set not more than two weeks after receipt of the demand for a hearing. The hearing officer may consider all City records without the necessity for further foundation. After considering all of the evidence, the hearing officer shall issue a written order that rejects or upholds the determination. The order must be issued within ten days of the hearing and shall be delivered to the owner in person or by certified mail. If the hearing officer upholds the determination as potentially dangerous, the order may affirm or deny the conditions recommended by the animal control officer. If, as a result of testimony or other evidence at the hearing, there are grounds for declaring the animal to be dangerous pursuant to this Chapter, the hearing officer may change the designation and issue the appropriate orders. (b) If the declaration that the animal is potentially dangerous is upheld by the hearing officer, the actual expenses of the hearing, including attorney's fees, up to a maximum of $1,000, will be the responsibility of the animal's owner. (c) If an owner fails to comply with any conditions specified in an order and fails to request a hearing under subparagraph (a), the animal shall be seized. (3) Reclaiming animals. A potentially dangerous animal seized under this section may be reclaimed by the owner of the animal upon payment of impounding and boarding fees, and presenting proof to animal control that each of the requirements imposed under this section is fulfilled. An animal not reclaimed under this section within 14 days may be destroyed in a proper and humane manner or otherwise disposed of as directed by the animal control officer. (3) Subsequent offenses. If an owner of an animal that has been declared potentially dangerous and is subject to the conditions of this section has allegedly failed to comply with the conditions, the animal must be seized. Notice shall be provided to the owner of the basis for the seizure and the right to request a hearing before the hearing officer to determine whether conditions were violated. A request for hearing must be made within 14 days of the seizure, and a fee of $50 shall be posted by the owner to cover administrative costs. If the owner fails to request a hearing within 14 days, or is found to have violated the conditions, the hearing officer may be order the animal destroyed in a proper and humane manner and the owner shall pay the costs of confining the animal as well as the costs of the hearing, if any, including attorney's fees, up to a maximum of $1,000.. If the owner is found not to have violated the conditions, the owner may reclaim the animal as set forth in this section. FAI & 503.17 DANGEROUS ANIMALS. (-5)(1) Evidence justifying dDesignation as dangerous animal. The animal control officer shall have the authority to designate any animal as a dangerous animal upon receiving evidence of the f l owing:that the animal meets any of the criteria set forth in the definition of dangerous animal in Section 503.01. (a) The animal has, when unprovoked, bitten, attacked or threatened the safety of a person or domestic animal as stated in division (3)(a) above; or (b) The animal has been declared potentially dangerous and the animal has then bitten, attached or threatened the safety of a person or domestic animal as stated in division (3)(a) above, (-7)a) Procedure. The animal control officer, after having determined that an animal is dangerous, may shall proceed in the following manner_- (a) The animal control officer shall determine whether to 1. Order the animal destroyed, or 2. Impose the conditions set forth in Section 503.1 (ab) The animal control officer shall cause one owner of the animal to be notified in writing or in person that the animal is-has been determined to be dangerous and that the animal is to be seized and destroyed or that the owner must comply with the conditions set forth in Section 503.1 . may order the animal seized or make orders as deemed proper. This The owner shall be notified as to dates, times, places and parties bitten that form the basis for the determination and shall be given 14 days to appeal this order the determination by requesting a hearing before the City Council hearing officer for a review of this -the determination. 1. If no appeal is filed, the orders issued will stand 2. If an owner requests a hearing for determination as to the dangerous nature of the animal, the hearing shall be held before the City Councilhearing officer, which who shall set a date for hearing not more than three weeks after demand for the hearing. Pending the hearing, the animal may be seized and kept at an animal control facility unless the owner shows proof that the animal is licensed, if required, has met the requirement, if any, for rabies vaccinatins, and agrees that the animal, if it is a dog, will not be permitted to be outside without being in a proper enclosure or being restrained on a leash and wearing a muzzle. A fee of $50 shall be posted by the owner to cover the administrative costs of scheduling the hearing. 3. The records of the animal control or the City Clerk's office shall be admissible for ' — consideration by the animal-central-hearing officer without further foundation. 4. After considering all evidence . - • _ - - - •• - • , the City Council hearing officer shall make an order it deem° prepe :ejecting, upholding or amending the determination. The order must be issued within 10 days of the hearing and shall be delivered to the owner in person or by registered mail. If the declaration that the animal is dangerous is upheld by the hearing officer, the actual expense of the hearing, including attorney's fees, up to a maximum of $1,000 will be the responsibility of the animal's owner.—The City Council may order that the animal control officer tak - • - - destruction, if the animal is not currently in custody. If the animal is ordered into custody for destruction, the owner shall immediately make the animal available to the animal control officer. 3. No person shall harbor an animal after it has been found to be dangerous and ordered into custody for destruction. (6)(4) Authority to order destruction. The animal control officer, upon finding that an animal is dangerous hereunder, is authorized to order, as part of the disposition of the case, that the animal be destroyed based on a written order containing one or more of the following findings of fact: (a) The animal is dangerous as demonstrated by a vicious attack, an unprovoked attack, an attack without warning or multiple attacks; or (b) The owner of the animal has demonstrated an inability or unwillingness to control the animal in order to prevent injury to persons or other animals. If the animal control officer orders destruction, the officer shall order that the animal be taken into custody for destruction if the animal is not currently in custody. If the animal is ordered into custody for destruction, the owner shall immediately make the animal available and failure to do so shall be a misdemeanor. (85) Stopping an attack If any police officer or animal control officer is witness to an attack by an animal upon a person or another animal, the officer may take whatever means the officer deems appropriate to bring the attack to an end and prevent further injury to the victim. $ 503.18 APPEAL PROCESS. An order by a hearing officer may be appealed by writ of certiorari to the Court of Appeals. & 503.19 NOTIFICATION OF NEW ADDRESS. Forma Forma Custon width, (9) Notification of new address. The owner of an animal which has been identified as dangerous or potentially dangerous must notify the animal control officer in writing if the animal is to be relocated from its current address or given or sold to another person. The notification must be given in writing at least 14 days prior to the relocation or transfer of ownership. The notification must include the current owner's name and address, the relocation address and the name of the new owner, if any. (Ord. 03 -08, passed 5 -27 -2008) § 503.20 DANGEROUS ANIMAL REQUIREMENTS. (1) Requirements. If the City Councilhearing officer does not order the destruction of an animal that has been declared dangerous, the City Council hearing officer may, as an alternative, order any or all of the following: (a) The owner provide and maintain a proper enclosure for the dangerous animal as speei-fied- defined in § 503.15503.01(3Xc); (b) Post the front and the rear of the premises with clearly visible warning signs, including a warning symbol to inform children, that there is a dangerous animal on the property, as specified in M.S. § 347.51, as it may be amended from time to time; (c) Provide and show proof annually of public liability insurance in the minimum amount of $300,000. The owner shall have 15 business days from the date of the request to show proof of insurance, except that if the animal is impounded, proof of insurance must be demonstrated prior to the animal's release; (d) If the animal is a dog and is outside the proper enclosure, the dog must be muzzled and restrained by a substantial chain or leash (not to exceed six feet in length) and under the physical restraint of a person 16 years of age or older. The muzzle must be of the design as to prevent the dog from biting any person or animal, but will not cause injury to the dog or interfere with its vision or respiration; (e) If the animal is a dog, it must have an easily identifiable, standardized tag identifying the dog as dangerous affixed to its collar at all times as specified in M.S. § 347.51, as it may be amended from time to time; (f) All animals deemed dangerous by the animal control officer shall be registered with Anoka County within 14 days after the date the animal was so deemed and provide satisfactory proof thereof to the animal control officer; and (g) If the animal is a dog, the dog must be licensed and up to date on rabies vaccination. If the animal is a cat or ferret, it must be up to date with rabies vaccination. (2) Seizure. Animal control shall immediately seize any dangerous animal if the owner does not meet each of the above requirements within 14 days after the date notice is sent to the owner that the animal is dangerous. Seizure may be appealed to the district court by serving a (3) Reclaiming animals. A dangerous animal seized under division (2) above may be reclaimed by the owner of the animal upon payment of impounding and boarding fees, and presenting proof to animal control that each of the requirements under division (1) above is fulfilled. An animal not reclaimed under this section within 14 days may be disposed of as provided under § 503.15(6),destroyed in a proper and humane manner, or otherwise disposed of, as directed by the animal control officers and the owner is liable to animal control for costs incurred in confining, impounding and disposing of the animal. (4) Subsequent offenses. If an owner of an animal that has been declared dangerous and is subject to the conditions of this section has allegedly failed to comply with the conditions, the animal must be seized. Notice shall be provided to the owner of the basis for the seizure and the right to request a hearing before the hearing officer to determine whether conditions were violated. A request for hearing must be made within 14 days of the seizure, and a fee of $50 shall be posted by the owner to cover administrative costs. If the owner fails to request a hearing within 14 days, or is found to have violated the conditions, the hearing officer may be order the animal destroyed in a proper and humane manner and the owner shall pay the costs of confining the animal as well as the costs of the hearing, if any, including attorney's fees, up to a maximum of $1,000.. If the owner is found not to have violated the conditions, the owner may reclaim the animal as set forth in this section. 1 animal, the animal must be seized by animal control. The owner may request a hearing as defined in § 503.15(7). If the owner is found to have violated the provisions for which the animal have violated the provisions for which the animal was seized, the owner may reclaim the animal 1'I days after the date the owner is notified that the animal may be reclaimed, the animal may be (Ord. 03 -08, passed 5 -27 -2008) • § 503.17 FORFEITURE OF OWNERSHIP RIGHTS. (1) (a) The ownership rights of a person owning the following types of animals may be forfeited to the city pursuant to the procedure in this section: 1. A public nuisance animal; 2. A wild animal; and 3. A maltreated animal. (b) In addition, the ownership rights of other animals owned by the same owner may be forfeited if he or she has demonstrated an inability or unwillingness to properly care for or control the animal in order to prevent it from becoming a public nuisance animal or a maltreated animal. (2) Authorized city personnel must notify the owner or apparent owner of the animal sought to be forfeited that the city intends to forfeit his or her ownership rights. The notice must be served on the owner personally or by registered mail. The notice must be in writing and state the reasons why forfeiture is sought, including a summary of applicable incidents. (3) The owner shall be given 14 days from the date of the notice to appeal the forfeiture decision by requesting a hearing before City Council for a review of this determination. (a) If no appeal is filed, the forfeiture decision will stand. (b) If an owner requests a hearing for determination as to the forfeiture of his or her ownership rights, the hearing shall be held before the City Council, which shall set a date for hearing not more than three weeks after demand for the hearing. The records of the animal control or City Clerk's office shall be admissible for consideration by the animal control officer without further foundation. After considering all evidence, the City Council shall make an order as it deems proper. (4) If the animal is deemed forfeited, the owner must immediately give the animal to authorized city personnel, and a failure or refusal to do so is a misdemeanor. Authorized city personnel may use reasonable force and go onto private property to take the animal into custody. (5) Authorized city personnel will determine on a case by case basis whether forfeited animals may be destroyed or given to new owners who will adequately care for and control the animal. (Ord. 03 -08, passed 5 -27 -2008) § 503.18 FARM ANIMALS. (1) In addition to the provisions of this chapter, the keeping of farm animals or limited livestock raising may be permitted in rural zoning districts according to the regulations of Chapter 1007. (2) An exception shall be made to this section for those animals brought into the city as part of an operating zoo, veterinarian clinic, scientific research laboratory or a licensed show or exhibition. (3) The keeping of farm animals legally existing at the adoption of this chapter in residential zoning districts may continue to exist as to type and number of animals with the following provisions: (a) The current use shall not be expanded; (b) The current use shall cease if discontinued for more than a period of one year; and (c) A violation of any section of this chapter shall cease the current use. (Ord. 03 -08, passed 5 -27 -2008) § 503.19 WILD ANIMALS. It shall be illegal for any person to own, possess, harbor or offer for sale, any wild animal as defined in § 503.01 within the city limits. Any owner of such an animal at the time of adoption of this chapter shall have 30 days in which to remove the animal from the city after which time the city may impound the animal as provided for in this section. An exception shall be made to this prohibition for animals specifically trained for and actually providing assistance to the handicapped or disabled, and for those animals brought into the city as part of an operating zoo, veterinarian clinic, scientific research laboratory or a licensed show or exhibition. (Ord. 03 -08, passed 5 -27 -2008) J § 503.20 PENALTY. A violation of any section of Chapter 503 is a misdemeanor. Each day on which a violation continues shall constitute a separate violation. (Ord. 03 -08, passed 5 -27 -2008) § 503.21 EXEMPTIONS. (1) Exemptions. Animals used for law enforcement and fire rescue purposes in their official capacities are exempt from this chapter. (2) Effective date. This ordinance shall be in full force and effect from and after 30 days following its passage and publication, in accordance with § 3.09 of the City Charter. (Ord. 03 -08, passed 5 -27 -2008) Julie Bartell From: Jean Viger Sent: Monday, April 11, 2011 11:57 AM To: Rob_Rafferty Cc: Julie Bartell; Jeff Karlson Subject: RE: last Lino Lakes city election Rob, Here are some numbers for you 2009 67 absentee voters....4354 total voters 200772 absentee voters....2337 total voters 2005 129 absentee voters....5288 total voters 2003 130 absentee voters....4650 total voters If you want numbers before 2003, I will have to go to old city hall and retrieve the tapes. Let me know if you would like me to do so or if you need any other information. (3) From: Rob Rafferty fmailto :rrafferty©rrtlarchitects.coml Sent: Monday, April 11, 2011 11:17 AM To: Jean Viger Subject: last Lino Lakes city election Hi Jean Say I'm wondering if you had a number for absentee votes cast in the last election for City election? And if it's easy — do you maybe have a similar total number for the same in any of the previous elections? And last, in the last city election where there a total of about 4050 people that actually voted? Appreciate your input with the facts - we have a vote on a sign ordinance tonight relating to election sign and length they can be out. Rob Rafferty RAFFERTY RAFFERTY TOLLEFSON LINDEKE ARCHITECTS 278 E 7th Street St. Paul, Minnesota 55101 651 224 -4831 651 228 -0264 fax rrafferty@rrtlarchitects.com www.rrtlarchitects.com 1