02-13-2023
Council Conference Meeting
February 13, 2023
6:00 PM
Fridley City Hall, 7071 University Avenue N.E.
Agenda
1.Assessing Division Update Guide to Estimated Market Value and Preliminary Market Valuations
for Assessment Year (AY) 2023, Payable Year (PY) 2024
2.Review Moore Lake Park Community Building Project
Upon request, accommodation will be provided to allow individuals with disabilities to participate in
any City of Fridley services, programs, or activities. Hearing impaired persons who need an interpreter
or other persons who require auxiliary aids should contact the City at (763) 572-3450.
2
Jufn!2/
AGENDA REPORT
Meeting Date:February 13, 2023 Meeting Type:City CouncilConference Meeting
Submitted By:Pat Maghrak, City Assessor
Joe Starks, Director of Finance/City Treasurer
Title
Assessing Division Update Guide toEstimated Market Value and Preliminary Market Valuations for
Assessment Year (AY) 2023, Payable Year (PY) 2024
Background
Staff will give an overview of the process, timeline and methodology for determining estimated market
values. An update will be shared regarding very preliminary market valuations for AY23/PY24.
Focus on Fridley Strategic Alignment
Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building
X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship
Organizational Excellence
Attachments and Other Resources
2023 LBAE
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
3
Jufn!2/
2023 LBAE
Guide to Estimated Market Value
Overview
Timeline Studied to Determine Estimated Market Values
The classification and estimated market value of all real property in the state of Minnesota is
ndst
established as of January 2 each year. For the 2023 Assessment, sales between October 1,
th
2021, and September 30, 2022, were analyzed to determine estimated market values as of
nd
January 2, 2023. The classification and estimated market value are used to determine the taxes
payable in 2024.
Estimated Market Value Methodology
t how values need to be
adjusted for the next assessment. Those sales selected are then compared with the estimated
market value at the time of the sale by dividing the estimated market value by the net sales
price. This creates a ratio of sales price to estimated market value and informs the assessor of
the level of assessment in each neighborhood.
At the end of the twelve months, the Department of Revenue informs each taxing jurisdiction of
any trends they have determined to be statistically relevant. Once the trends are established,
then each sale is adjusted for the changing market conditions that occurred over the period
studied. For example, Fridley may be told the residential time trend is 12% so each sale is
adjusted 1% for every month after the sale and up to the new assessment date. A sale occurring
stnd
on June 1 of 2022 will be adjusted 6 months up to the January 2 assessment date (Net sale
price X 1.06) to get the time adjusted value. That value is then divided into the estimated market
value to determine what adjustment needs to be made to achieve a targeted level of assessment
or ratio, of 94.5%.
In Anoka County, building rates are shared by all jurisdictions and land values are determined on
the local level. The combination of the two are moved to get to the 94.5% targeted ratio. A great
deal of effort is put in to assure that all jurisdictions are targeting the same level of assessment
as many share the same school districts and uneven ratios can cause a disparity in taxation
among the same participants in the school district. This is the E in LBAE which stands for Local
Board of Appeal and Equalization.
4
Jufn!2/
The Appeal Process
in mid-March informing them of the classification and estimated market value the assessor has
established and will also include a property tax statement for the taxes payable in 2023. Property
owners are instructed to call the assessor if they have any questions or concerns about how their
property was classified or valued.
Most often, it is the valuation that is in question. When this happens, the assessor will meet with
the property owner to verify all underlying attributes of the home and to review any data they
provide suggesting a different valuation would be appropriate. Almost all disputes are settled in
this manner but sometimes a property owner is not convinced and wants to take their appeal to
the Local Board of Appeal and Equalization. At this level the owner is advised to prepare a
presentation showing comparable sales that support the value they believe is correct. The
assessor will do the same and after review and questions, the Board will be asked to vote on
making a change or affirming the estimate.
If the value is affirmed, the owner still has the right to appeal before the County Board of Appeal
and Equalization. An appeal before the county board can only be done after having appealed at
the local level. The process of appeal at the county is much the same as at the local level. If the
owner appeals to the County and is still unconvinced that the valuation is fair, then the last level
of appeal is to file a tax court petition and try to settle the matter judicially.
What Board Members Need to Know
The purpose of the meeting is to discuss classification and valuation issues only. The meeting is
not a forum to discuss taxes. Often a resident or business owner will appear at the meeting
without having called first so staff will not have anything prepared to inform the Board about.
When this happens, the Board may decide to re-convene and allow the property owner and staff
the time to try and settle the matter or prepare a presentation for a reconvened meeting.
When a property owner appears before the Board they will typically state why they think their
valuation or classification is incorrect and provide some form of data to support their position.
Staff will have a set of comparable sales and will explain how and why adjustments were made
to indicate a certain value range. Once you have reviewed each presentation and had an
opportunity to ask questions, a motion would be made to make a change or not and a vote
would be taken. The Board may also choose to take no action and allow the property owner to
move along to the county board. This is often the case with commercial and industrial
properties.
Residential Properties Brian Northenscold, AMA 763-572-3537
Commercial or Industrial Properties Patrick D. Maghrak, SAMA 763-572-3536
5
Jufn!3/
AGENDA REPORT
Meeting Date:February13, 2023 Meeting Type:City CouncilConference Meeting
Submitted By:Mike Maher, Director of Parks and Recreation
James Kosluchar, Public Works Director
Title
ReviewMoore Lake Park Community BuildingProject
Background
Staff will be requestingauthorization for the advertisement for bids for the Moore Lake Park building.
As with prior progress designs, staff will be sharing with the Council the proposed final design of the
building for their comments and suggestions and highlighting elements that have been discussed
previously or modified substantially. We are planning to present the park site at the February 27
Council Conference Meeting.
Tn off Central Avenue and Highway 65
and is scheduled for reconstruction in 2023. Council approved the Parks System Improvement Plan in
April 2022 which included a transformative reconfiguration of the park.
The park site plans will include renovation of the park and the addition of a new, year-round usepark
building. Attached isa floor planandexterior renderings. Note the design of the building has been
updated to address Council comments that were provided during two workshop sessions. As shown,
the south side of the building will be an enclosed, rentable space with a gathering area, serving
kitchen, restrooms and a mechanical room. The north side of the building is a terraced, covered
outdoor gathering area.
Oertel Architects designedthe building,WSB & Associates has prepared site plansand Kraus-
Anderson is providing construction management services for the project. The City anticipates
advertising for bidsfor the buildingin mid-Februarywith awardsin March2023. The park
improvements are anticipated to be advertised at the end of February with awards in April 2023.
Project construction would begin Spring 2023.
We welcome the City Councils comments and suggestions.
Financial Impact
Funding is provided by bond proceeds through the Capital Investment Program.
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
6
Jufn!3/
Recommendation
Review and provide feedback on the building plans and elements presented.
Focus on Fridley Strategic Alignment
X Vibrant Neighborhoods & Places X Community Identity & Relationship Building
Financial Stability & Commercial Prosperity X Public Safety & Environmental Stewardship
X Organizational Excellence
Attachments and Other Resources
Plans and Renderings of the Moore Lake Building Project
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
7
8
Jufn!3/
Qbsljoh!Mpu!FmfwbujpoQbsljoh!Mpu!Fmfwbujpo
Moore Lake Park FacilityMoore Lake Park Facility
9
Jufn!3/
Fousz!Qfstqfdujwf
Fousz!Qfstqfdujwf
Moore Lake Park FacilityMoore Lake Park Facility
:
Jufn!3/
Qbsljoh!Qfstqfdujwf
Qbsljoh!Qfstqfdujwf
Moore Lake Park FacilityMoore Lake Park Facility
21
Jufn!3/
Mblftjef!Fmfwbujpo
Mblftjef!Fmfwbujpo
Moore Lake Park FacilityMoore Lake Park Facility
22
Jufn!3/
Joepps!Hbuifsjoh
Moore Lake Park Facility
23
Jufn!3/
Joepps!Hbuifsjoh
Moore Lake Park Facility
24
Jufn!3/
Joepps!Hbuifsjoh
Moore Lake Park Facility
25
Jufn!3/
Ojhiu!Wjfx
Moore Lake Park Facility