CC TRUTH IN TAXATION MINUTES 12201995

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. I.I City Council Truth in Taxation Adoption Meeting Minutes December 20, 1995 • Page 2 1 Mr. Obert Amundson, 3217 Wendhurst questioned why apartment owners taxes decreased and 2 homeowners taxes increased. 3 Finance Director Roger Larson explained that apartment valuation had decreased by 14.3%. The 4 City of St. Anthony is a community which is fully developed. 73% of the properties are 5 residential, 12% apartments and 12%commercial. If one area of the tax base in the community 6 decreases,the other portions will increase. 7 Mayor Ranallo reported the City had received a letter today indicating that Apache Plaza has 8 again been allowed a reduction in assessed valuation. The previous market value was 9 $6,830,000.00 with taxes of$441,502.84. The market value has been reduced to $6,000,000.00 10 which results in taxes of$387,577.18. He noted the State Legislature has changed the manner in 11 which apartment buildings are taxed and apartment buildings are decreasing in value. 12 Mayor Ranallo noted he had received a comparison of the assessed value and actual sale price of 13 three homes which had recently sold in St. Anthony. 3009-29th Avenue sold for$118,000.00 14 and the assessed market value was $108,000.00 or 91%. 2513-36th Avenue sold for$109,000.00 15 and the assessed market value was $87,400.00 or 80%. 3216 Rankin Road sold for$127,000.00 16 and the assessed market value was $117,000.00 or 85%. These assessed values are low 07 compared to State requirements which expect the assessed value to be between 93%-100%of the 8 sale price. 19 Councilmember Elect Faust noted low interest rates have a large effect on apartment values. 20 Low interest rates allow more people to qualify for loans and apartment owners are not able to 21 raise the rent. This results in apartment valuations decreasing. 22 An unidentified resident noted the market value of his home had increased$14,000.00 in the last 23 two years and only $6,000.00 in the previous four years. 24 Mayor Ranallo suggested contacting a real estate agent and having the house appraised. If the 25 resident did not feel he could sell his home for the assessed market value, he could contact the 26 assessor's office and ask them to re-assess the home. The next step would be to attend the Board 27 of Review meeting in the Spring. 28 Enrooth noted if the City of St. Anthony did not increase their budget at all and valuation of a 29 home increased by $5,000.00 to $7,000.00,the resident would still experience an increase in his 30 taxes due to the increase in valuation.