1995-04-04 Council minutes Brd of ReviewPage No. 4351
April 4, 1995
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Board of Review Meeting
Held Tuesday, April 4, 1995
Pursuant to due call and notice thereof, the annual Board of Review meeting of the City Council, City of
Mendota Heights, was held at 7:00 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota Heights,
Minnesota.
Mayor Mertensotto, called the meeting to order at 7:15 o'clock P.M. The following members were
present: Mayor Mertensotto, Councilmembers; Huber, Koch, Krebsbach and Smith.
POLICE CANDIDATE Mayor Mertensotto informed the audience that the regular agenda
includes the appointment of a probationary police officer. Police
Chief Delmont, present for the meeting, introduced the candidate,
Lee Flandrich, Jr. and his wife.
BOARD OF REVIEW Mayor Mertensotto informed the audience that the purpose of the
meeting is to review 1995 property valuations for real estate taxes
payable in 1996. He stated that if property owners plan to take any
action with respect to their valuations, they must sign the meeting
attendance roster. He then turned the meeting over to Dakota
County Assessor Marvin Pu1ju and Bill Peterson, Manager with the
Assessor's Office.
Assessor Peterson stated that after his presentation and responses to
general questions, members of the assessor's staff will meet with
property owners to discuss specific valuation questions. He stated
that the purpose of the meeting is to discuss 1995 market values to
be used for 1996 taxes. He explained that valuation notices were
mailed to property owners in February and that open book meetings
were conducted for Mendota Heights residents on March 8 and 9.
He stated that the assessor's office is charged to do two things - to
arrive at market values and classify properties. He stated that his
office is charged by the state to maintain a median ratio of 90 to
105% of market value, and that the median 1995 Mendota Heights
residential property value increase was 5.3% over 1994 values. He
informed the audience that his office is charged with revaluing 25%
of the properties in the county on an annual basis, and is trying to
revalue a quartile of each community in the county each year. He
explained that if an individual property value increase was greater
than 5.3%, it is possible that someone from the assessor's staff
visited the property to do an on-site revaluation. He informed the
audience that in addition to on-site valuations, his office uses the
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April 4, 1995
CAMA system to recalculate market values each year. Mr. Peterson
asked for general questions from the audience.
A member of the audience stated that his Truth in Taxation notice
included a statement about a 4.5% wage increase, and he asked if
that had an impact on property valuations.
Mr. Peterson responded that that the state -wide wage increase was
calculated by the Department of Revenue and the County was
required by law to put the information on the statement. He
explained that the wage increase has no relationship to real estate tax
increases and that he does not know how the Revenue Department
arrived at its percentage.
Mayor Mertensotto asked how many cities and townships in the
county received a general increase in valuation. He stated that many
areas had 11 to 13% increases.
Mr. Peterson responded that all communities and townships received
some type of an increase and the average county -wide was between
five and six percent. He stated that it was quite possible that the
properties which received greater increases were within the 25% on-
site re- valuations.
Mayor Mertensotto stated that the legislature is discussing a freeze
in city, county and school district property taxes for 1996. He asked
whether the assessor's office anticipated a freeze when the
valuations were being done.
Mr. Peterson responded that it had not, and that taxes do not go hand
in hand with values. He explained that if a property received a 10%
valuation increase and no agencies levied increased taxes, the
property tax would actually go down. He pointed out that
improvements to a property could cause an increase in value.
Treasurer Shaughnessy stated that the information provided by the
county indicate that if the value of a property did not change, taxes
decreased and if the value rose 5 %, the tax increased about 3 %.
Mayor Mertensotto stated that if the valuation of a property stays the
same and the levy stays the same, there would be no tax increase,
but every government budget is increasing because of wages and
increased operating costs. He stated that if there is an increase of
5.3% in valuation each year, the level of the budget can remain
about the same. He stated that the real estate tax is the most
inequitable tax there is. He informed the audience that when the
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April 4, 1995
sales tax was adopted in 1967, the legislature said that real estate tax
would be a safety net, but as it turns out, property taxes are
supporting cities, counties and school districts. He stated that he can
see where the current legislature will call for a property tax freeze,
and pointed out that the school district bond referendum will
increase property taxes and there will be another excess levy this
year for the school district.
Councilmember Smith stated that many things can affect the level of
property taxes. One which can affect residential values is the
balance between increases in residential versus changes in
commercial and industrial. She stated that I many cases,
commercial/industrial values have come down, and asked, in
general, what has happened with businesses in Mendota Heights and
the county in the past two years.
Mr. Peterson responded that his office has not lowered any particular
properties but some property owners who have filed petitions with
the tax courts have received valuation reductions.
Council acknowledged letters received from the following property
owners: Mr. & Mrs. Norman Busta, 555 Simard Street; Mr. Brian
Kirchner, 1255 Dodd Road; Mr. Paul Dahlgren, 1736 S. Lexington
Avenue; Ms. Donna Lillie, 709 Cheyenne Lane; Ms. Rhonda
Burling, 913 Crown Court; Mr. Bernard Kane, 586 Sibley Highway;
Mr. & Mrs. Robert Lockwood, 2 Hingham Circle; Mr. & Mrs. Eric
Miller, 681 Ivy Falls Court; Mr. & Mrs. Kevin Milberry, 1000
Oxford Court; Ms. Virginia Greene, 544 W. Annapolis; Ms.
Christina Escarzaga; 720 W. Wentworth; Mr. Mark Misukanis, 965
Stratford Rd.; Ms. Michelle Mooney, 18 Dorset Road;
There being no further questions or comments, the Board of Review
meeting was continued to April 18 to allow the assessor's office two
weeks to respond to property owners whose questions are not
resolved in the individual meetings with the assessor's staff this
evening.
K4thleen M. Swanson
City Clerk
Charles E. Mertensotto
Mayor