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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 PAGE 1 1 1 1 1 1 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 PAGE 2 221 222 COUNCIL WORK SESSION (5:36 P.M.) 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 PAGE 3 1 1 1 COUNCIL WORK SESSION JUNE 24 1991 (5:36 P.M.) 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 PAGE 4 22