HomeMy WebLinkAbout1979 06-04 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
JUNE 4, 1979
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met as the Board of Equalization and was called
to order by Mayor Dean Nyquist at 7:33 p.m.
ROLL CALL
Mayor Dean Nyquist, Councilmembers Tony Kuefler, Bill Fignar, Gene Lhotka, and
Celia Scott. Also present were City Manager Gerald Splinter, City Assessor Peter
Koole, Appraisers Jerry Ritter and Joe DaBruzzi and Administrative Assistant
Mary Harty.
The City Manager stated the City Assessor was prepared to review the purpose of
the Board of Equalization, a procedural review of property taxation, the City
Assessor's report and a brief review of the Limited Value Legislation. Following
this presentation, there would be time for public inquiry regarding local assess-
ments.
The City Assessor explained the appeal process stating the channel of appeal begins
with the local board and then on the County board, the State board and finally the
tax court if carried that far.
The City Assessor stated the duties and the procedures to be followed by the local
board are set in Minnesota Statute 274.01 to "examine and see that all taxable
property in the City has been properly placed upon a tax list and duly valued by
the Assessor ". Furthermore, "on application of any person feeling aggrieved, the
board shall review the assessment and correct it as shall appear just ".
In reviewing the duties of the City Assessor, he noted State Statute reads "all
real property subject to taxation shall be listed and assessed every year with
reference to its value on January 2 preceding the assessment ". The City Assessor
noted this has been done and the owners of the property in Brooklyn Center have
been notified of any value changes. Additionally, the City Assessor explained
Minnesota Statute 273.11 states "all property shall be valued at its market value ".
The City Assessor further explained the Statute states "in estimating and determining
____ __ -such value the assessor shall - not adopt a lower or different standard of value - -
because the same is to serve as a basis for taxation; nor shall he adopt as a
criteria and a value the price for which such property would sell at auction or at a
forced sale, or an aggregate with all the property in the town or district; but he
shall value each article or description of property by itself, and at such sum or
price as he believes the same to be fairly worth in money ". The City Assessor
noted in cases where a property may be so unique as to make a comparative market
hard to determine, Minnesota Case Law is clear as demonstrated in the case of State
of Minnesota versus Fritch. In this case, the court stated "it is up to the assessor
to form an opinion of the market value even when there is no market of sale as to
aid in fixing values . . . where there have been no actual sales for along period
of time, there is no way of determining values except by the judgment and opinion
of men acquainted with the lands, their adaptability for use and the circumstances
of the surrounding community ".
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The City Assessor next reviewed the sales ratio studies. He referred the Council to
a copy of a graph received in the agenda packet, stating the sales ratio study was a
substantive part of what is done by the assessing department. The City Assessor
briefly reviewed the 1979 sales ratio study noting the aggregate ratio is 94.7 %,
the median ratio is 94.9 %, the coefficient of dispersion is 8.91, the average sale
price is $47,095 and the average assessed valuation is $44,610. He explained the
assessing department analyzes the sales by style, location, price and neighborhood.
He showed the Council a neighborhood map which had been prepared and showed the
general percent of increase in each area of the City. He stated the figures indicate
that with .various increases throughout the City th e assessment department obtained
a reasonably well grouped set of ratios in every neighborhood City wide.
The City Assessor reviewed inspections made by the appraisers. He commented State
law requires that 4 of the properties be revalued and inspected each year. He
showed the Council on a map of the City which areas had been revalued and inspected
for the 1979 assessment. He noted in addition to the regular inspections made each
year, the assessment department must also inspect work done on each building permit.
He noted in 1978, there were 822 permits that had to be inspected at- least -once to -
determine what affect the work has had on the property value.
The City Assessor next reviewed a "tax comparison for properties which were chosen to
be representative samples of homes in Brooklyn Center in two different price ranges.
A comparison was made from the years 1970 to 1979. He stated these properties have
not been extensively changed physically although normal maintenance and depreciation
are present in these average properties. He explained the income adjusted homestead
credit (circuit breaker) -has not been considered in the example as listed on the chart.
The City Assessor next reviewed the changes in taxes due to the new Limited Value
Legislation. He stated on the average the change in the Limited Value Law will not
affect the City of Brooklyn Center unduly. It was noted overall, the change in the
Limited Value Law may necessitate a.change in mill levy and /or State aids.
The City Manager commented he was pleased with the way the Commissioner of Revenue
and the Legislature worked to rectify the Limited Value Legislation by encouraging
input from municipal assessors. He stated it was his belief, the Legislature did a
much better job of dealing with the problems of the Limited Value Law by soliciting
input and learning what the problems were from those people who worked
firsthand
with assessing. He stated he believed the Legislature deserved to be commended for
their approach on this item.
The Mayor noted there was no one present at the Council meeting to appear before the
Board of Equalization. The City Assessor_ stated he had - received a request from Mrs.
Thomas Shaefeluka of 3012 — 3018 51st Avenue North. The house was visited and
assessed and the City Assessor recommended a reduction from $68,800 to an assessed
value of $65,900.
There was a motion by Councilmember Kuefler and seconded by Councilmember Fignar to
reduce the assessed value of the property at 3012 3018 51st Avenue North from
$68,800 to $65,900. Voting in favor: Mayor Nyquist, Councilmembers Kuefler, Fignar,,
Lhotka, and Scott. Voting against: none. The motion passed unanimously.
The City Assessor noted he would contact Mrs. Shaefeluka and inform her of the action
of the Board of Equalization.
The Council commended the City Assessor and the City Appraisers for a quality job
of assessments in the City of Brooklyn Center.
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ADJOURNMENT
There was a motion by Councilmember Fignar and seconded by Councilmember Lhotka to
adjourn the Board of Equalization Meeting. Voting in favor: Mayor Nyquist, Council -
members Kuefler, Fignar, Lhotka, and Scott. Voting against: none. The motion
passed unanimously. The meeting was adjourned at 8:08 p.m.
Clerk Mayor
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