HomeMy WebLinkAbout06/24/1991 Council Minutes220
COUNCIL WORK SESSION JUNE 24 1991
(5:36 P.M.)
Mayor Bisel called a work session of the Lino Lakes City Council
to order at 5:36 P.M., Monday, June 24, 1991. Council Members
present: Neal, Reinert, Bohjanen. Council Members absent:
Kuether. City Assessor, Todd Smith; Administrative Assistant,
Dan Tesch and Clerk - Treasurer Marilyn Anderson were also present.
City Planner, John Miller arrived later.
The purpose of the meeting was to discuss how properties are
valued and how valuation affects taxes.
Mr. Smith was introduced. He gave the Council a handout which
outlined changes that were enacted by the 1991 legislature.
Changes will effect the 1992 payable taxes. Mr. Smith explained
the information in the handout.
Mr. Smith said he felt the major effect of the 1991 legislation
was the additional losses in local government aid. He noted that
the 1/2 cent sales tax will lessen the effect of the loss of aid.
Mayor Bisel noted that it appeared that sales in a particular
area seem to have a great affect on the valuation of adjoining
property. He asked if a particular lot sold for $75,000.00 did
this mean that all nearby lots would be valued at $75,000.00.
Mr. Smith said no. Mayor Bisel asked what is a fair or equitable
increase in property taxes. Mr. Smith said the there is no "cap"
of how much the value of a property could increase in a year.
Mr. Smith explained that the City had contracted with Anoka
County to re- assess the entire City in a two (2) year time span.
The County did accomplish this. This meant that properties that
were greatly undervalued were increased dramatically in one (1)
year. Mr. Smith also noted that the State mandates that all
property be valued at 100% of market value. He explained that
the previous Assessor did increase values over a short period of
time. Anoka County tries to maintain a 93% to 95% valuation.
Mayor Bisel expressed concern that values could be greatly
increased on property owned by retirees on a fixed income. He
felt this might be forcing some people to sell their homes.
Mr. Smith said the lake shore properties have increased
dramatically in value. He will be looking at these properties
more closely, analyzing sales and breaking the valuation down per
front foot.
Council Member Reinert expressed concern that land values could
become higher than structure values. Mr. Smith said that is the
current trend. He gave examples on Coon Lake in East Bethel.
Mayor Bisel noted that White Bear Lake is the highest taxed city
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COUNCIL WORK SESSION JUNE 24 1991
(5:36 P.M.)
in Ramsey County. This was not the case in 1975, however, the
area became the place to live. This drove up land values.
Council Member Reinert asked what can be done with school
districts to bring better balance. Mr. Smith explained what
happened in the Centennial School District this year. The shift
in fiscal disparities caught the District by surprise. Better
communications are needed as well a new legislation dealing with
fiscal disparities.
Mayor Bisel explained that when a house is sold, the property is
valued at the selling price. He felt that the value should be
the selling price less the realtors fees. Mr. Smith said there
was no provision in the law for this. Mayor Bisel noted that
there have been some complaints that the assessor has used the
wrong square footage in placing the value on the home. Mr. Smith
said that usually the assessor goes to the site and measures the
house rather than depend on blueprints for the information. He
also showed the Council the form that is used when determining
the value of a structure. Mr. Smith explained that patios will
no longer be added to the value of the property. However, decks
will still be considered since they add tangible value to the
property.
Council Member Reinert asked Mr. Smith if he had noted that the
property values are greater in the southern portion of the City
as compared to the northern portion of the City. Mr. Smith said
this
is true. He noted that he is now starting the second re-
evaluation of the City. He will be looking at one fourth of the
City this year starting in the northern areas. Mr. Smith did not
see any large changes in valuations.
Council Member Reinert asked if there was a great difference
between assessing in Anoka County as compared to Ramsey County.
Mr. Smith said there is a big difference due to the shortage of
staff at Ramsey County. Ramsey County does a lot of appraisals
by the "drive -by" method. Anoka County is much more
comprehensive. The bottom line is that the state does not
question Anoka County regarding its methods like they may
question other counties.
Mr. Smith explained that although the state has mandated certain
appraisal practices and mandated that the counties be appraised
at 100% of market value, this is not happening in every county.
However, Mr. Smith felt the state is taking measures to make
counties comply with state law and value properties fairly. He
noted that Anoka County is almost the only county who complies
with all state mandates. Council Member Bohjanen said it
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JUNE 24 1991
appeared that the legislature was not enforcing its mandates in
the rural areas. Mr. Smith said that if the officials in the
rural areas understood proper assessing processes, they would
realize that they are loosing money.
Mayor Bisel thanked Mr. Smith for coming this evening.
Darla Lowell Property
Mayor Bisel reminded the Council that at the June 10th Council
meeting the City Administrator was asked to put together some
options that could be implemented on the Darla Lowell property.
Mr. Miller, Darla Lowell and her father, Joe Tamillo were present
to discuss this matter. Mr. Miller gave a brief background on
the matter and explained why the feasibility was not considered
by the Council. He also noted that the Lowell's are still
interested in dividing the property since there are two (2)
separate property owners.
One (1) suggestion made by the Council was that the Lowell's
visit with their neighbor to the south and purchase enough
footage to add to their lot so that it could be legally divided
into two (2) parcels. The neighbor was not willing to sell the
Lowell's any frontage.
Mr. Miller explained that the Council could grant a variance to
the Lowell's. The proposal would be to divide the Lowell parcel
into two (2) parcels. The southern parcel would have the
required frontage on 24th Avenue. The second parcel would
require the variance because it would be short 28 feet of
frontage. However, at the time 66th Street is constructed, the
variance would no longer be an issue. This parcel would have
more than 1,300 feet of frontage on 66th Street. In effect, this
is a temporary variance until 66th Street is constructed. Mr.
Miller noted a "ghost" plat would also be required on the entire
parcel. This would show how the entire 10 acres can eventually
be subdivided when sanitary sewer is available.
Mrs. Lowell explained that several "ghost" plats have been drawn
by Mr. Boxrud and are on file. She also noted that if the
variance is granted, the newly created lot (southern lot) will be
sold. This lot will meet all legal requirements of the City.
The northern lot will require the variance and the Lowell's are
currently constructing their new home on this lot. They intend
to retain the lot and may subdivide it when 66th Street is
constructed.
Council Member Bohjanen suggested that the variance be granted
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with the stipulation that the Lowell's provide a written
statement to the City indicating that they will not object to the
construction of 66th Street and will accept the assessment for
the street. Mrs. Lowell said that she would agree to this
stipulation since it has been her intention from the beginning to
get this road constructed. Mrs. Lowell also indicated that she
would like a written statement from the City saying that the lot
subdivision already granted by the City will be honored at the
time 66th Street is constructed and she is faced with assessments
although lot requirements in the area may have changed to ten
(10) acres.
Mr. Miller was asked to draft an agreement between the City and
the Lowell's. This agreement should list the conditions of the
variance and the concerns of the Lowell's. The draft agreement
should be presented at the next Council meeting so that the
Council can take action on a variance request.
Council Member Reinert moved to adjourn at 6:33 P.M. Council
Member Bohjanen seconded the motion. Aye.
These minutes were considered, corrected and approved at the
regular Council meeting held on July 8, 1991.
Marilyn" G. Anderson,
Clerk - Treasurer
(? Lt41-44SI._„1()
Harold L. Bisel,
Mayor
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