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HomeMy WebLinkAbout04/06/1992 Council Minutes216 BOARD OF REVIEW CITY OF LINO LAKES COUNCIL MINUTES APRIL 6, 1992 DATE : April 6, 1992 TIME STARTED 6:27 P.M TIME ENDED : 9 :10 P.!M. MEMBERS PRESENT: Reinert, Neal, Kuether, Elliott: MEMBERS ABSENT : None Staff Members present: City Attorney, Bill Hawkins; City Assessor, Todd Smith; City Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson. Mr. Smith explained that the purpose of this meeting is for residents to address the City Council regarding the 1992 assessment for property taxes payable for 1993 on each of their individual properties. He noted that overall, property values in the City of Lino Lakes has increased this past year. Brad Elshaug, 148 Connie Lane explained that his valuation had escalated from $66,700 to $104,000. Mr. Elshaug will call Mr. Smith in the morning and make an appointment to meet with him on this matter. Dawn and John Kenny, 6299 Red Maple Lane asked how the availability of sanitary sewer and municipal water affect the value of the property. Mr. Smith explained that currently he adds $2,000 to the value of a lot for septic and well. He noted that an additional value would be added for public improvements. He noted that he did not feel that public improvements would be available in the Red Maple area for some time since the lots are quite large. Mrs. Kenny said that it was opinion that taxes were escalating very fast because property values were going up very fast. She noted that she that she purchased her property in 1989 for $129,000. In July, 1990, the Assessor valued the property at $143,000. She explained that she called the Assessor and he came and re- evaluated the property and felt it was too high as well. The value was lowered but was set at $137,600 for 1992. Mrs. Kenny said she felt that the value was very inflated and this value was lowered to $121,000. PAGE 1 1 1 1 1 1 1 BOARD OF REVIEW APRIL 6, 1992 Mrs. Kenny expla`,ined that the problem continues because the value for 1993 is now set at $130,600. She felt the fast rising taxes are taxing her family out of Lino Lakes. Mrs. Kenny said she does not feel that she should have had all the problems she had and felt sorry for others in the same position. Mayor Reinert asked Mr. Smith to give a brief explanation of how market value on properties is calculated. Mr. Smith did explain. He also noted that taxes are usually high in developing communities because there is very little commercial /industrial base to help the homeowner. He also noted that no home carries enough taxes to provide the services needed for each home. Mr. Smith explained that a community with just homes and no commercial base has a regressive tax situation. He noted that he is well aware of the problem since he serves on the City Council in the City of Ramsey. Mayor Reinert gave the audience an explanation of the current City Council philosophy by explaining that a moratorium had been instituted in Lino Lakes. Although this is not a popular thing for a City Council to do, it does allow time to "take stock" of the situation. There is still a great amount of development in Lino Lakes at this time because the City Council could not stop what was already started. Mayor Reinert explained that developers cannot be stopped from bringing in their new plats. However, the City Council does have the right to stop "leap frog" development and to keep development to "in fill" development. At this time the City Council has the ability to review each new plat to determine the economic impact on the City. In addition, the City Council has looked at potential commercial development and this will be in an orderly fashion. Mayor Reinert noted some areas currently under consideration for commercial development. He also noted that the City will not accept all industries. Mr. Smith explained that it is his position to classify and value property only. He noted that the municipality and other taxing authorities set the rate of taxes. Mr. Smith noted that the State of Minnesota mandates that assessors value all property at market value. He explained that he uses sales as one (1) tool in determining market value. Mr. Smith also explained that the State requires that all values be at 100% of market value and last year Lino Lakes was at 94.8 %. He also explained that Anoka County was the only County that followed the State mandate. Mr. Smith was asked about the inconsistencies in valuations. He explained the basic reason for this is that the Assessor is required to re- evaluate only 25% of the homes each year. Therefore, some homes are not evaluated for up to three (3) PAGE 2 217 218 BOARD OF REVIEW APRIL 6, 1992 years. Mr. Smith also noted that the State has shifted the tax burden to local landowners. He also noted that mandates have been issued to local governments with no funds to enact the mandate. Mr. Smith also noted that municipalities have experienced a great loss in Local Government Aid (LGA). He explained the situation regarding increasing the sales tax by 1/2% and how municipalities are not going to realize the benefit they were promised. Mr. Smith noted the school district disparity and explained that this has somewhat been addressed. He noted that the Centennial School District is a tax poor district. New legislation will help reduce the difference between school districts. Mr. Smith's last comment involved Tax Increment Financing (TIF) and noted that the legislature is slowing reducing the benefit of this tool. It appears that financing local and state government is coming down to the landowner. Ron Conway, 6280 Red Maple Lane asked the Council if the State dictates, why don't you call the State and ask them to come and listen to you. Mayor Reinert explained that every representative and senator had been invited to attend these meetings. They all had excuses for not coming. Mayor Reinert also explained that the residents have to let their representatives know that the are "fed up ". Mr. Conway said that if the Council would arrange the meeting, they would be there. Mr. Smith explained that the taxes in Lino Lakes are outrageous especially in School District #12. A resident in the audience explained that the homes should be valued at what they are worth. Also the resident said that taxes should be looked at. Mr. Smith explained that 5% has been added to all homes in Lino Lakes. He added when calculating market value for each home consideration is give as to what zone the property is located in, the average sales in the area as well as other factors. Mr. Smith also noted that the State Legislature has mandated that all vacant land be included in the sales ratio study. This means that all vacant land will see an increase in value. A lady in the audience asked why her property is valued $6,000 more than what she paid for it. Mr. Smith explained that he would make an appoint with her to evaluate the value of her property. Mr. Smith noted other considerations in valuing property: consideration of the condition of the house; was the improvement to the house done by the homeowner or contracted; was the PAGE 3 1 1 1 1 1 1 BOARD OF REVIEW APRIL 6, 1992 property purchased from a relative or a governmental unit? Mr. Smith said he was not a hard person to deal with. He noted that there have been problems in the County computer system and he was willing to work with everyone. A gentleman in the audience explained that he has lived in Lino Lakes for 20 years and has watched the taxes climb 60%. He said he is now retired and cannot absorb more increases. He also said he has attended all meetings regarding property valuations at all governmental levels. He also explained that he voted for the school district bond and knew that it would increase his taxes because all good things must be paid for. He noted that the claims of the proponents of the school bond issue claimed that there would be little effect on the taxes. The gentleman told the audience that they must do more than attend this meeting and let all representatives know that they are not following the wishes of their constituents. He noted that he goes to meetings and the representatives listen but it doesn't have any affect. A gentleman from the audience asked the City Council how aggressive they were in getting industry into this City. He said he has heard rumors of a Kmart, a Mennards, etc. Mayor Reinert explained that the Council is in the process of constructing an industrial park. This is being done with private landowners but will take some time. Access streets and utilities need to be constructed and some residents are greatly affected. All is being done to reduce the affect of this development on those residents. Mayor Reinert noted that Mennards was very active but because of the economy, all is on hold. He also explained that Lino Lakes does not want "dirty" industry and will be selective in its development process. Mayor Reinert said that he hoped to have a market plan in place by the end of this year. A gentleman from the audience said he was not here to "go after" Mr. Smith. He asked why there is no industry in Lino Lakes? He also said that Lino Lakes will not attract industry when taxes are so high. He said he agreed with the moratorium and asked that the City Council keep the residents more informed regarding what is being done to attract commercial /industrial development. Mayor Reinert noted that there are five (5) members of the City Council and all do not agree on what direction should be taken regarding the situation in Lino Lakes. He told the audience to be sure and elect people who agree with their thinking. Mayor Reinert noted that Lino Lakes is not chasing away commercial /industrial development. He noted that if Lino Lakes is trying to entice a particular company, 10 to 15 other communities are doing the same and probably offering many more perks. PAGE 4 219 220 BOARD OF REVIEW APRIL 6, 1992 Council Member Neal noted that the Mennards plan is still alive. He noted that the manager has been selected and they will employ about 225 people. Mayor Reinert explained that if anybody is new to the community, he did understand their frustration. A person in the audience explained that they had moved to Lino Lakes from Shoreview. They had called the Lino Lakes Assessor prior to purchasing to determine the current tax schedule. This person noted a great shock when they received their first tax bill. Mayor Reinert noted that there was a major tax increase in this area but also noted that real estate agents have an obligation to tell all prospective buyers about the tax situation. The person from the audience said that they thought they were covering themselves by call the Assessor. Ron Conway said he has lived in Lino Lake for 13 years and asked what the Council was doing to hold down taxes. He noted that every year the valuation is steadily increasing. Every year he hears that taxes are not going up and yet every year when the tax bill comes, it is higher. Mayor Reinert explained some of the reductions implemented by the City Council for the 1992 Budget. Mr. Conway asked how much will the budget increase from 1992 to 1993? Mayor Reinert explained that the 1993 budget process will begin in June or July. Mr. Schumacher reminded the City Council that the purpose of this meeting is to discuss valuation and not the budget. He suggested that residents look at their current tax statement and compare to see where the raises in taxes are. Mayor Reinert said he felt the situation this evening was healthy and said he would be more than willing to sit with the residents to discuss these matters. A gentleman from the audience said he strongly endorsed this comment and asked that such a meeting be set. He said he would like to see the announcement in the paper within the next two (2) or three (3) weeks. Mayor Reinert said he was not interested in a "rabble rousing, fist pounding" meeting but would agree to a orderly meeting. Ruth Ball, 6291 Red Maple Lane said that she had invited Dough Swensen to this meeting and noted that the citizens are trying to get other representatives here. She noted that the Legislature is in session but Mr. Swensen said he would try to come. A gentleman from the audience said his problem started about a year ago. He did not agree with the property tax valuation and invited the Assessor to his home. Nothing was changed. This year his value has increased again. There have been no improvements. He said he has now completed some papers and another assessor will come and re- evaluate. PAGE 5 1 1 1 1 1 BOARD OF REVIEW APRIL 6, 1992 A person from the audience explained that Mr. Smith visited their home last year. They did not agree with his re- evaluation and had two (2) separate real estate appraisers give him an appraisal. Neither agreed with Mr. Smith. This person noted that the valuation is at 102% and next year it will be at 113% yet some homeowners are at 95%. This person said that everyone should be at 95% and not all over the board. This person asked that the City Council talk to Anoka County to be sure that every property is at 95%. Lino Lakes residents are being taxed out of their homes because of high market values. This person asked what the Council was going to do about this situation. Mayor Reinert explained that where a landowner gets his facts is very important. He noted that real estate agencies are not the most reliable. They do not give full appraisals. Council Member Kuether noted that the Assessor sees a house every four (4) years and asked how houses not seen are valued. Mr. Smith explained. Council Member Kuether noted that she had sold a house in Lino Lakes for $75,000 and the 1993 market value is now $93,300. She asked how this could happen. Mr. Smith said he would check on this matter. Mr. Schumacher explained that tomorrow the legislature is considering making all municipalities and counties taxable entities. If this happens the budget of both the City and Council will be increased considerably. He noted that it was not fair for the State of Minnesota to always come back to the municipalities for additional taxes. In this case, it would be taxes on taxes. Gregg Lehman explained that he owns a lot at the end of a cul -de- sac. He is unable to get a building permit because the street does not extend to his property. His lot is valued at $13,000 and asked what he could do with his lot. Mrs. Kenny noted that the Assessor bases the market value on the sale of houses in the area. It appears that the value only goes up. Mayor Reinert explained that the process is much more refined that what was just stated. Mrs. Ball said she felt that the valuation should be 95% across the board. She asked why she should pay 113% when someone else is paying 86%? Mayor Reinert noted that by law this meeting must be conducted at this time. If a resident is not satisfied with their valuation, they can then go to the County Board of Review. The Council asked that all residents who wished to address Mr. Smith regarding their property values do so at this time. Mr. Smith will provide the Clerk with a list of names of residents PAGE 6 221 222 BOARD OF REVIEW who have addressed him personally. CONSIDERATION OF RESOLUTION NO. 92 - 50 SETTING A PUBLIC HEARING FOR THE IMPROVEMENT OF APOLLO DRIVE APRIL 6, 1992 Council Member Elliott moved to adopt Resolution No. 92 - 50. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 92 - 50 can be found at the end of these minutes. Mrs. Anderson noted that the Council Work Session set for Tuesday, April 7, 1992 must be rescheduled because the City Council cannot meet during election hours. The meeting was rescheduled for Wednesday, April 8, 1992 at 5:00 P.M. Council Member Kuether asked that an agenda by faxed to her. Mayor Reinert noted receipt of a petition from citizens which states: "We the undersigned, in the County of Anoka, City of Lino Lakes feel the tax schedule that sets the base for our taxes needs to be revised. We feel our property taxes are too high. Please take this petition under consideration ". Council Member Elliott moved to adjourn at 9:10 P.M. Council Member Kuether seconded the motion. Aye. These minutes were considered, corrected and approved at the regular Council meeting held on April 27, 1992. Marilyn G. Anderson, Vernon F. Reinert, Clerk- Treasurer Mayor LANDOWNERS ATTENDING THE 1992 BOARD OF REVIEW Brad Elshaug 148 Connie Lane 784 -9473 Dawn & John Kenny 6299 Red Maple Lane 484 -7232 Ruth & Michael Ball 6291 Red Maple Lane 481 -0310 Wayne E. Beske 179 Gladstone Circle 780 -9042 18- 31 -22 -24 -0019 32- 31 -22 -14 -0009 32- 31 -22 -14 -0010 19- 31 -22 -24 -0118 PAGE 7 1 1 1 1 1 1 BOARD OF REVIEW APRIL 6, 1992 Larry Sitka 160 Gladstone Circle 780 -7906 Heidi Sandberg 157 Egret Lane Gregory Lehman 839 - 4th Street Joseph Barthel 6272 Red Maple Lane Kenneth Korkowski 6233 Red Maple Lane 338 -8571 785 -1844 Ken Reichert 6669 Pelican Place 786 -6461 Lori Nyberg 6307 Red Maple Lane 484 -0250 Dawn Faymoville 1911 - 77th Street 653 -7717 Diane Lawrence 1835 - 77th Street 653 -0038 Sylvia Marier 1801 - 77th Street 429 -4616 George Gotwald 6710 West Shadow Lake Drive Douglas Kruse 6263 Red Maple Lane Mary Hemauer 6426 Fawn Lane Charles Gramith 8057 - 4th Avenue 483 -1152 Marvin Emly 590 - 62nd Avenue Neil & Paulettte Andersen' 132 Woodridge Lane 19- 31 -22 -24 -0120 30- 31 -22 -24 -0058 07- 31 -22 -42 -0018 32- 31 -22 -14 -0025 32- 31 -22 -14 -0015 30- 31 -22 -13 -0016 32- 31 -22 -14 -0008 11- 31 -22 -44 -0017 11- 31 -22 -43 -0019 11- 31 -22 -34 -0001 29- 31 -22 -13 -0005 32- 31 -22 -14 -0019 29- 31 -22 -44 -0024 06- 31 -22 -44 -0006 -0005 -0002 32- 31 -22 -31 -0001 31- 31 -22 -31 -0036 PAGE 8 223 224 BOARD OF REVIEW Steve & Gail Wells 28- 31 -22 -21 -0008 6701 East Shadow Lake Drive 636 -6265 Ron & Linda Yanez 131 Woodridge Lane Mark Kenny 6425 Rice Court Rick DeDomines 6323 Red Maple Lane 483 -0435 Joel Carlson 6943 - 2nd Avenue Steve Slatten 6283 Red Maple Lane Terry Farrell 6339 Red Maple Lane Rolf Iverson 2215 Foxtail Court Sharon Helgemoe 7045 Antelope drive Tim & Kelli Peterson 7049 Antelope Drive Fred Miller 6677 Pelican Place Debbie & Dan Waldoch 559 Lois Lane 786 -3097 Mike & Karen Ammann 7080 Rice Lake Lane 780 -1555 31- 31 -22 -31 -0022 29- 31 -22 -33 -0031 32- 31 -22 -14 -0006 19- 31 -22 -31 -0004 32- 31 -22 -14 -0011 32- 31 -22 -14 -0004 35- 31 -22 -43 -0005 19- 31 -22 -24 -0129 19- 31 -22 -24 -0126 30- 31 -22 -13 -0014 08- 31 -22 -24 -0005 19- 31 -22 -13 -0007 PAGE 9 APRIL 6, 1992 1 1 1 1 1 Council Member Elliott introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 - 50 RESOLUTION CALLING A HEARING ON THE APOLLO DRIVE IMPROVEMENT WHEREAS, pursuant to a resolution of the Council adopted on November 12, 1991 with reference to the Apollo Drive Improvement a report was received by the Council on February 10, 1992. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Council will consider the improvement of Apollo Drive in accordance with the report and the assessment of benefitted property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 and Chapter 8 of the Lino Lakes City Charter at an estimated total cost of the improvement of $2,722,342.00. 2. A public hearing shall be held on such proposed improvement on the 26th day of May, 1992, in the council chambers of the city hall at 6:45 p.M. and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Lino Lakes City Council this 6th day of April, 1992. Vernon F. Reinert, Mayor Marilyn G. Anderson, Clerk - Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Reinert, Elliott. The following voted against same: None Whereupon said resolution was declared passed and adopted. 22 "a OE jagimunii AMINE lhommill raw amp Ewa Nom Kid :LTA '444. CITY OF LINO LAKES PROPOSED APOLLO DRIVE 1