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HomeMy WebLinkAbout1995 04-17 CCM Board of Equalization MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA BOARD OF EQUALIZATION APRIL 17, 1995 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met as the Board of Equalization and was called to order by Mayor Myrna Kragness at 7 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Barb Kalligher, Debra Hilstrom, and Kathleen Carmody. Also present were City Manager Gerald Splinter, City Assessor Mark Parish, Director of Community Development Brad Hoffman, Finance Director Charlie Hansen, Assistant County Assessor Tom May, Senior Appraiser Joe DaBruzzi, and Council Secretary Barbara Collman. Councilmember Kristen l4ann was excused from tonight's meeting. PURPOSE OF BOARD OF EQUALIZATION The City 'Nianager explained the purpose of the Board of Equalization is to review the assessment rolls as they are proposed by the City Assessor. The Board must determine whether the property values are appropriate and whether all properties are treated fairly and equally. The City Assessor reviewed the state law requiring the meeting of the Board of Equalization. The law outlines the Board's restrictions and capabilities. He noted the Board's powers are limited to value and classification of properties. PROCEDURAL REVIEW OF PROPERTY TAXATION The City Assessor stated a property owner who is dissatisfied with the property assessment has the right to appeal and appear before the County Board of Equalization during the last two weeks in June, provided they first appealed to the City Board of Equalization. The City Assessor also reviewed the time line for the assessment process. The 199 assessment is based on sales records for the period of October 1993 through September 1994. The impacts on takes which can't be foreseen are administrative issues, budget authorities, and policy issues. 4/17/9 - 1 - The City Assessor noted the goal of the assessor is to value at market value. Market value is the most probable value, but it may or may not equal the sale price. An attempt is made to "mirror the market." In the assessment process, it is necessary to collect data by inspecting properties and monitoring market activity, and also to attempt to predict the market. The City Assessor explained the meaning of the sales ratio and of the coefficient of dispersion. The appraisal process also includes the use of computer aids, which is a cost- effective method. CITY ASSESSOR'S REPORT Regarding the 1995 assessment, the City Assessor noted the property market is stable and improving. The median sales ratio is 94.1 percent. Sales in five nei were considered in the assessment. The analysis considered the style of the homes as well as other details. The City Assessor noted a system of checks and balances exists with the Hennepin County Assessor's office. The City Assessor explained Brooklyn Center has 8,000 residential properties, which accounts for 26 percent of the tax base. It is impossible to inspect all properties each year, but a certain number are done each-year. The assessment process is not perfect but it is believed to be fair. PUBLIC INQUIRY REGARDING LOCAL ASSESSMENTS At 7:25 p.m., Mayor Kragness opened the meeting for the purpose of public inquiry. Appointments had been set for five parties to make inquiries. Two of the parties were present; the rest were not. The City Assessor recommended the Board go ahead and confirm the assessments for the parties who had made appointments, but reserve the parties' right to appeal. Kevin Hatle and Elizabeth Dorsey Hatle, 5508 Logan Avenue North, were not present. Robert Johnson and Virginia Johnson, 6256 Colfax Avenue North, were unable to stay for this portion of the meeting due to illness. Bartholomew Dabrowski, 5001 Ewing Avenue North, asked for his right of appeal to be reserved for consideration at the County Board meeting. Donna Kabanuk, 4207 Lakeside Avenue, Unit 123, was not present. Michael Schwartz, 7100 Humboldt Avenue North, addressed the Board regarding his assessment. He said properties in his neighborhood sold last year for $66.16 per square foot, yet his is assessed at $69.75 per square foot. When he asked City Staff for comparable figures, he was given a list of properties outside his neighborhood. His house is for sale and he has had no offers. He has had market analyses done by three realty firms. The home was priced at $92,500. Mr. Schwartz commented he has lost his parking, will probably lose his driveway, there is more pollution, and neighbors have left. The property is not worth 597,100 and, in fact, is not worth anvthing if it doesn't sell. 4/17/95 _? Councilmember Kalligher commented the City Assessor was denied access to Mr. Schwartz's home to do an inspection and appraisal. Mr. Schwartz said he does not want a City official in his home and intends to leave Brooklyn Center permanently. Councilmember Carmody suggested he try to work it out as long as he is still in Brooklyn Center. She also asked Mr. Schwartz what he thinks the property is worth. Mr. Schwartz said he will rent the property. He said he has an investment of $115,000 in the property. Councilmember Carmody suggested he lower the price so the property will sell. Mr. Schwartz did not agree. The current asking price is $94,500. Mayor Kragness noted most residents who have an assessment dispute are happy to allow the City Assessor on the property in order to get a fair assessment. She asked Mr. Schwartz why he will not allow an investigation. Mr. Schwartz said he has seen the way City staff operates and how it figures and he does not want anyone from the City on his property. Councilmember Kalligher suggested the City reserve Mr. Schwartz's right to appeal and let him take his complaints to the next level. The City Assessor stated the figure $97,100 was computer - generated and $92,500 would be more realistic. He repeated it was not possible to complete an inspection without access to the property, so it is difficult to make an assessment. He recommend_ ed Mr. Schwartz's property be assessed at $92,500 and his rights to appeal be reserved. Mr. Schwartz said statistics show comparable properties are selling at $88,000 or •$89,000. He said the assessment will not affect him as he is leaving Brooklvn Center; however, it would not be fair to a new owner. Councilmember Kalligher suggested Mr. Schwartz appeal to the Hennepin County Assessor. She suggested Mr. Schwartz might be more satisfied with the resuonse from the next level's Board of Equalization. Mr. Schwartz asked whether the Board of Equalization could look at market surveys. Mayor Kragness replied that is what the City Assessor does when making assessments. Councilmember Hilstrom questioned the process with the Hennepin County Assessor's office. Tom May, the Assistant County Assessor, said if County officials cannot inspect the property they will uphold the position of the City Assessor. Mr. Schwartz said officials can see his property after he has left it. The City Assessor stated during this assessment process 2,200 properties were inspected. In a typical year, two percent of property owners refuse inspection and therefore an assumed 4/17/9; J figure must be used. This year there were 49 refusals. He noted the City does provide comparables for discussion purposes not necessarily representing those properties are the best comparable. Again, it is not possible to appraise a property without inspecting it. He stated perhaps the County Assessor, as a third party, will be able to resolve the situation with Mr. Schwartz. Mayor Kragness asked whether the volume of traffic on Humboldt Avenue is a factor in the tar assessment. The City Assessor said it is a factor; through streets are a five percent downward adjustment. There were no walk -in inquiries. One inquiry came in the form of a letter from Brooklyn Center Hotel Ltd. Partnership. The City Assessor addressed the inquiry. The City Assessor noted he has been unable to contact a representative of Brooklyn Center Hotel Ltd. Partnership. He said he has reviewed the information provided by the company and believes it is irrelevant. There is no basis for a reduction in the assessment based on the information presented. He commented the property is in the midst of a turn around. He recommended the owner's right to appeal be reserved. The City Manager explained if an owner's rights are reserved it means the appeal is valid at the next level; however, the process must begin at the City level. There was a motion by Councilmember Kalligher and seconded by Councilmember Carmody to approve the balance of the 1995 assessment and accept the City Assessor's recommendations on the properties appearing at the Board. The motion passed unanimously. ADJOURNMENT The Brooklyn Center City Council was adjourned by Mayor Kragness at 7:46 p.m. J , I&LPA Deputy City Clerk Mayor Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial 4/17/95 -4-