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Home My WebLink About1992 04-20 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 20, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met as the Board of Equalization and was called to order by Mayor Todd Paulson at 7:01 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, Hennepin County Assessor Don Monk, City Assessor Mark Parish and Council Secretary Cathy Cleveland. PURPOSE OF BOARD OF EQUALIZATION The City Manager explained the purpose of the City Council was to act as the Board of Equalization and act as an appeal Board to the Assessor's setting of values. The assessment is not based on taxes but on the relative value of the properties within the community and certain principles are used by the assessor to try and equalize that value and then the local Board's judgement is then passed onto the County. The County reviews the assessment and then it goes onto the State. CITY ASSESSOR'S REPORT The City Assessor explained the City Board of Equalization is established by State law and the City Charter. Notices were published in accordance with law. In addition to the published and posted notices, each property owner in the City received a 1992 market value notice. The assessment is made up of two components; the value of the property, and the classification of the property. Different classes of property pay different tax rates as prescribed by State law. Tonights meeting is to review the assessment, values, and classification. The Board's power and responsibility is in these two areas. The Board may decrease the value, confirm the value, or increase the values as they see fit. The Board may also change classifications if there is an appeal and information provided along those lines. Tonights assessment hearing is to review the January 1992 assessments. The January 1992 value will become the basis for the 1993 taxes. In order to arrive at the 1992 values, the City Assessor and his staff reviewed sales from October 1990 to September of 1991. They also inspected some 2,000 properties over the course of 1991. Through the use of a computerized appraisal system, they were able to re- evaluate the entire group of properties 4/20/92 - 1 - within the jurisdiction for 1992. In December of 1991, the residential assessments were finalized and those values were mailed out along with a homestead card on January 2. The nonresidential values were finalized in January of 1992 and mailed in March and early April. Tonights meeting of the local Board of Equalization is the first step in the formal process. If the property owners are not satisfied with the results of tonights meeting they may appeal to the County Board of Equalization held in June. The property owner must first appear at the local level before they can appeal to the . County level. This fall there will be budget hearings and truth in taxation hearings. Over the winter, tax rates will be calculated and statements mailed. The first half of the payment will be due on May 15 of next year. May 15 is also the deadline for filing tax court petitions relating to this assessment. The City Assessor reviewed the definition of "market value" as defined by Minnesota Statutes and indicated there are a number of points which are fundamental to market value: 1. The market value is the most probable price (not the highest or the lowest or a simple average). 2. It's in a cash basis. 3. There is reasonable market exposure. 4. Both the buyer and the seller are informed and motivated by self- interest. 5. It recognizes the present use of the property as well as any potential uses. 6. Its an "arms length" transactions in the open market place. PUBLIC INQUIRY REGARDING LOCAL ASSESSMENTS Valjean Wiley, 5621 Indiana Avenue North, PID #03- 118 -21 -31 -0001, stated one of his lots should not be assessed at all because it is below the 100 year flood plain, which causes the lot to be unbuildable and makes it worthless. Mr. Wiley also stated his house value has gone up 26% in three years and he feels this is different from the rest of Brooklyn Center. Councilmember Cohen asked Mr. Wiley what he feels his property should be valued at. Mr. Wiley responded it should be reduced at least $35,000 from the land value because of this unbuildable lot. Councilmember Cohen pointed out that Hennepin County appraised this property as one exceptional large lake -front lot. They did not use multiple lots in their assessment. He asked the City Assessor to explain why the County appraised it in this fashion. The City Assessor explained it is the actual number you arrive at as the market value that matters, not how you arrive at the number. The City Assessor chose an approach which valued multiple lot development and the County Assessor chose the large lot approach, either approach is valid. This property has seen a number of increases that are anything but modest, because it is one of the nicest pieces of property in Brooklyn Center. It is not comparable to the average home, which is why the average market value (or average change in value) is meaningless in this situation. The only thing that is being used is the market 4/20/92 -2- value of this parcel. The Hennepin County Assessor looked at the parcel last year and decided to evaluate it as one large piece of lake property and appraised its market value at $290,000. The City's appraisal of this property indicates a market value of $275,000. Councilmember Cohen stated since the County Assessor has taken away the issue of how many buildable lots there are on the property by describing the property as one exceptional lake front lot, he doesn't see any basis for making any of the adjustments that Mr. Wiley requests, especially since the City appraisal is less than the County's. There was a motion by Councilmember Cohen and seconded by Councilmember Pedlar to approve the City Assessor's recommended valuation of $275,000 for PID #03- 118- 21 -31- 0001. The motion passed unanimously. Edward Noble, 5117 Xerxes Avenue North, PID #10- 118 -21 -11 -0009, felt his property is over valued because there is no access road which makes the land unbuildable. His only use for the land is for agricultural use but the value has increased 49% this year. There was a motion by Councilmember Pedlar and seconded by Councilmember Cohen to approve staff's recommendation. The motion passed unanimously. The City Manager indicated an appeal can be accomplished in person or by letter. In order to appeal to the County, one of these methods must first take place at the City level. The City Assessor reported the City has received the following three letters of appeal: 1. Twin City Federal, 2950 County Road 10, PID #03- 118 -21 -14 -0030. The representative for Twin City Federal did not have any information about the market value of the property, they just wish to appeal the assessment. 2. The Eretz Co. (Perkins), 5915 John Martin Drive, PID #02- 118 -21 -12 -0011. The representatives from The Eretz Co. also provided no information about the market value of the property, they just feel the value should be reduced. 3. Brookdale Christian Center, 6120 Xerxes Avenue North PIDs #02- 118 -21 -22 -0001, 02- 118 -21 -22 -0002, and 35- 119 -21 -33 -0064. This church has a number of components including a church operated day care. Since the parsonage is no longer occupied by a minister, it will become taxable in the 1992 assessment. The second church building was leased recently to another church. This second church organization has not provided the City with documentation to provide for an exemption of that use. The City Assessor asked the Board to approve these parcels as currently valued and classified. If staff is unable to resolve this with the church, they will have sufficient time to prepare a case and pursue it with the County. 4/20/92 -3- There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to approve staff's recommended valuations for the following properties: 1. Twin City Federal, 2950 County Road 10, PID #03- 118 -21 -14 -0030, 2. The Eretz Co. (Perkins), 5915 John Martin Drive, PID #02- 118 -21 -12 -0011, and 3. Brookdale Christian Center, 6120 Xerxes Avenue North, PID #02- 118 -21 -22 -0001, 02- 118 -21 -22 -0002, 35- 119 -21 -33 -0064. The motion passed unanimously. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to approve the 1992 assessment, including the parcels reviewed made at the April 20th Board of Equalization meeting. The motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Pedlar, and seconded by Councilmember Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 8:44 p.m. � P Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Cath y Cleveland Northern Counties Secretarial Services I i 4/20/92 -4-