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02-28-2022 Conf Mtg COUNCIL CONFERENCE MEETING February 28, 2022 5:30 PM Fridley Civic Center, 7071 University Avenue N.E. AGENDA 1.2022 Proposed Redistricting Plan 2.Residential Property Values The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, program, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will Hearing impaired persons who need any interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. (TTD/763-572-3534). 2 Jufn!2/ AGENDA REPORT Meeting Date:February 28, 2022 Meeting Type:City CouncilConference Meeting Submitted By:Melissa Moore, City Clerk Title 2022 Proposed Redistricting Plan Background Redistricting is the process of redrawing the boundaries of election districts to ensure that the people of each district are equally represented. It is done in the United States every ten years, after the completion of the decennial Census. The Constitution of the State of Minnesota and state statutes direct what districts must be redistricted and the processes for doing such. Redistricting must be completed before the state primary in August 2022. City governments must reestablish all precincts after the State has finalized its redistricting plan. Cities have the option to reconfirm existing precinct boundaries, or they may choose to rewrite, or realign precincts for various reasons. Cities with wards must redistrict ward boundaries to ensure compliance with ward population equality and other legal requirements. This evening staff will present the Fridley City Council with more detailed information on the process of redistricting, an analysis of voting trends in the City of Fridley, a review of a proposed redistricting plan, and a discussion on outreach and communication plans for residents. Attachments and Other Resources Exhibit A: Current Voting Precincts and Polling Location Map Exhibit B: Proposed Redistricting Map Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!2/ 4 Jufn!3/ AGENDA REPORT Meeting Date:February 28, 2022 Meeting Type:City Council Conference Meeting Submitted By:Patrick Maghrak, City Assessor Title Residential Property Values Background establish the estimated market value of all real estate in the City of Fridley, and expects that new valuation notices will arrive mid to late March. Staff has noticed increases in value well in excess of past changes in value, and wanted to inform Council both as a means to prepare for the upcoming Board of Review, and as a courtesy in case constituents call you directly, as opposed to calling our office as instructed in the notice. Financial Impact Increase in estimated market value of real estate in the City of Fridley. Discussion Attached you will find a brief presentation intended to inform you of the process and market dynamics that have led to these large increases. These points represent the same messaging staff will be giving in response to property owners who call to question value. Please encourage anyone calling directly to call our office with any questions they have regarding their valuation notice. 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 Information on Estimated Market Value Percentage Increase Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!3/ Fridley Civic Campus Subject: Council Workshop on Estimated Market Value (EMV) Percentage Increase February 25, 2022 This yearÔs increase in estimated market value (EMV) compared to the previous year is both record-breaking and extraordinary to industry participants as well as homeowners. The following information is structured to provide the City Manager and Council a general understanding of the EMV process. Inquiries about valuation should be directed to: Patrick Maghrak, City Assessor, at Patrick.Maghrak@FridleyMN.gov or 763-572-3536 Brian Northenscold, Residential Assessor, at Brian.Northernscold@FridleyMN.gov or 763-572-3537 What are the anticipated percent changes in EMV? Residential value increases are likely to be 20 percent (+/-). Double-digit increases are not common, and many residents will be surprised by this. Minneapolis Area Association of Realtors statistics suggest a year-over-year gain of just over 13 percent. This percentage differs from our prediction because the CityÔs assessment period and process (as required by the State) is different than the one used by Minneapolis Area Realtors. How do we reach these values? Assessors compare the adjusted sale price of a property with its assessed value at the time of the sale. This creates a ratio of sale price to assessed value and is a measure of the level of assessment. This is a tool used to inform what changes need to be made to reach the required level of assessment (94.5 percent median). For example: Assessed Value ($283,500) percent = Ratio of 94.5 Adjusted Sale Price ($300,000) 7 7071 University Ave N.E. Fridley, MN 55432 763-571-3450 FAX: 763-571-1287 FridleyMN.gov Jufn!3/ What led to the anticipated increase? Bidding wars in the market, fueled by low interest rates, low inventory and high demand, drove prices to historical levels, rarely seen in this real estate market. Large increases in residential value, compared with more modest increase in the Commercial/Industrial values shift more of the tax burden onto residential property owners. What is the impact of taxes as a result of the increase? The visual phrase, ÑAs long as all boats rise at the same rate, no single tax payer is excessively burdened,Ò can accurately describe the impact. The value put on your property is used to calculate your share of the local property tax levy for the year. As you can see in the chart below, all three example houses experienced a 20 percent value increase from 2021 Ï 2022. However, their percentage in the residential tax base has not changed. Therefore, the only change in taxes is due to the levy increase or decrease. Note: Tax Levy 2022, pictured below, was intentionally made larger to demonstrate an increase in the levy. Tax Levy 2021Tax Levy 2022 $250,000 $300,000 25% $500,000 25% 50% $600,000 $250,000 50% 25% $300,000 25% House 1House 2House 3 House 1House 2House 3 How does Fridley compare to other cities? Fridley is not unique in these trends for Anoka County, nor the State of Minnesota. Many communities are experiencing similar real estate trends, and all use the same process for establishing the EMV. 8 7071 University Ave N.E. Fridley, MN 55432 763-571-3450 FAX: 763-571-1287 FridleyMN.gov