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04/12/2004 BOE - 00026541CITY OF FRIDLEY BOARD OF EQUALIZATION AND REVIEW MEETING AP RI L 12, 2004 The meeting of the Board of Equalization and Review was called to order by Mayor Lund at 7:00 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund, Councilmember Barnette, Councilmember Billings, and Councilmember Bolkcom. MEMBERS ABSENT: Councilmember Wolfe Mary Smith, City Assessor, stated this meeting is held in accordance with State Statute 274.01. The purpose of the Board is to present an orderly and consistent appeals procedure for property owners who want to protest the 2004 estimated market value and classification of their property. As the Board, the City Council has the ability to change values or classifications in accordance with state law. There are three possible courses of action that can be taken on each case: to affirm, reduce or increase the current value based on information presented. If upon reaching a decision, the property owner feels the Board did not resolve their concerns, they can grieve their case to the County Board of Appeal and Equalization. According to State law, it is necessary that a majority of the members of the Board be in attendance; the Board shall see that all taxable property is properly valued and classified; and if property is omitted by the tax role, it may be added by the Board. The Board must hear cases for the current assessment year. The Board cannot give a class of properties an increase or decrease, but can only increase or decrease individual properties. If the Board makes reductions to individual properties, the amount of the reduction cannot exceed 1% of the city-wide aggregate adjustment. If the Board finds a case of under-evaluation, it may raise the valuation of the property but it must first notify the property owner. Ms. Smith said each property owner appearing will complete the property appeal to the assessor. Each property owner may address the Board in order of registration. Written appeals will be read at the meeting. The Board may direct staff to reappraise it and report back to the Board. The Board then compares the information presented by the assessor to the information presented by the property owner and makes a determination. Ms. Smith said there were 329 sales that occurred in Fridley from January 1 to December 31, 2003 for which we received certificates of real estate value. Of those, 248 were for single family homes, 57 for town homes, 8 for double bungalows and 16 for condominiums. These sales indicate a decrease in our overall ratio which takes into account the selling price and the estimated market value. In order to raise the sales BOARD OF EQUALIZATION & REVIEW MEETING OF APRIL 12, 2004 PAGE 2 ratio to the required level, county-wide increases of 8% took place along with land values needing to be adjusted upward. All properties experienced increases from 5% to 25% in some areas of the City. This brought the City's overall ratio to the level required by the county and state. The value increases ranged from $10,000 to $30,000. ➢ On the 248 residential sales, the average sale price is $198,000. The average estimated market value is $169,300 with an average ratio of 86%. ➢ There were 57 town homes sales with an average selling price of $165,700. The average estimated market value was $141,100 with an average ratio of 85.1 %. ➢ There were 8 double bungalow sales. The average selling price was $255,200. The average estimated market value was $187,300 with an average ratio of 74.2%. ➢ There were 16 condominium sales. The average sale price was $86,900. The average estimated market value was $67,200 with an average ratio of 71.7. Ms. Smith said most concerns expressed were by residential property owners and they were addressed. Councilmember Billings asked what kind of notification was provided to taxpayers. Ms. Smith explained when they got their property tax statement, they also received a 2004 Estimated Market Value statement which described the procedures for appearing before the local board. Councilmember Barnette asked how Fridley values compared with surrounding cities. Mary Boyle, from the County Assessor's office, stated the 2003 average selling price for single family homes in Lino Lakes/Centerville was $251,100; in Andover $250,200; in Blaine $210,000; in Coon Rapids $191,600; in Spring Lake Park and Fridley $188,200; in Anoka $180,900; and in Circle Pines $187,200. Councilmember Billings asked if there has been any letters submitted from individuals wishing to question the value of their property. Ms. Smith stated no letters were submitted. MOTION by Councilmember Billings, seconded by Councilmember Bolkcom, to adjourn the meeting of the Board of Equalization and Review. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION TO ADJOURN THE BOARD OF REVIEW MEETING CARRIED UNANIMOUSLY. Respectfully submitted, Rebecca Brazys Recording Secretary ��� �� cot�Lund S J Mayor