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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