HomeMy WebLinkAbout05/03/1990CITY OF APPLE VALLEY
BOARD OF REVIEW
Dakota County, Minnesota
May 3, 1990
Minutes of the Board of Review meeting for the City of Apple Valley, Dakota Gounty,
Minnesota, held May 3rd, 1990, at 7:00 o'clock p.m. at Apple Valley Community
Center, 14603 Hayes Road.
PRESENT: Mayor Branning; Councilmembers Goodwin, Holton, Humphrey and Savanick.
ABSENT: None.
City staff members present were: City Administrator Melena, Gity Clerk Mueller,
Finance Director Ballenger and Assistant to Administrator Weldon.
Mayor Branning called the meeting to order at 7:00 p.m. He stated the purpose of
the meeting is to review property valuations in the City for 1990. Mr. Melena
said, though the meeting is for the purpose of reviewing valuations, information on
the current tax formula has been prepared.
Mr. Ballenger reviewed a comparison of county, city, school and special district's
mill rates and tax capacity rates for the past five years. Because the Legislature
changed the Local Government Aid (LGA) distribution, increasing aid to school
districts and decreasing aid to cities, cities were allowed to increase tax levies
to compensate for the difference. Thus, the 1990 tax statements generally showed a
reduction in the. school district tax and an increase in the city tax.
A question was asked how the gross tax capacity is determined? Mr. Ballenger said
it is calculated by multiplying the market value by the gross class rate for that
type of property.
A question followed that if LGA reduces the gross, then isn't the gross what the
taxes really are instead of the net? Mr. Melena said the 1988 tax law was passed
with the intent of 128 mills adding up to 100 percent. When less than 100 percent
is levied, the tax rate is less. LGA is intended to reduce disparities in property
tax rates between communities.
Mr. Melena noted that School District 196 Board Members and the County Commis-
sioners were invited to provide information for this meeting also. A letter from
the School District was submitted concerning its tax levy. Commissioner Loeding
was present to observe the meeting.
Bill Peterson, of the Dakota County Assessor's office, said the appraisers would be
meeting with the residents individually to review their property records and he
asked everyone to sign the attendance roster. Open book meetings were held in
March. Over 200 Apple Valley property owners attended and many of their questions
were answered at that time.
A new computer system was implemented this year which should help eliminate human
errors and calculation mistakes. It will allow them to identify a number of
components of a building and make more precise comparisons of property. With this
system, adjustments were not made on a percentage basis. The information
CITY OF APPLE VALLEY
BOARD OF REVIEW
Dakota County, Minnesota
May 3, 1990
Page 2
calculated the value and resulted in a wide variation of adjustments and corrected
past errors.
A question was asked if this information could be put on the back of valuation
notices? Mr. Peterson said the Department of Revenue prescribes what has to be
included on the notice and, as now designed, does not allow enough space for this
information.
A question was asked about the next step in the valuation process. Mr. Peterson
said those attending tonight would preserve their right to appeal to the County
Board of Review, which meets in late June, and then Tax Court. Previously, appeal
to the State Board of Review was tha step before Tax Court, but the legislature
changed the Board's meeting schedule so that it will be finished meeting before the
County Board meets.
It was asked what could be done, except waiting five years for the next city-wide
walk through revaluation, about existing properties that have not resold and are
shown at only 60 to 70 percent of actual value? Mr. Peterson said they may be able
to do the walk through in two years. If improvements are made to property without
a building permit, this is almost the only way to catch them. Even sales price
does not necessarily set market value. There are some areas where this is a
greater problem. They will be identifying neighborhoods, with the computer system,
and looking at comparisons more closely. They do mass appraisals; not fee
appraisals, which look strictly at individual properties.
The meeting was recessed at 7:50 p.m. and all persons in attendance were given an
opportunity to review the Assessor's property .records. The meeting was reconvened
at 9:30 p.m.
Mr. Peterson reported that 73 people signed the attendance roster and they met with
the approximately 65 property owners. Appointments have been scheduled for call
back reviews with about half of these. They will also be conducting reviews with
those who have submitted written requests to their office and the Gity Council.
The City's total market value for 1989 was $1,065,835,800, with gross tax capacity
of $30,209,499, and is estimated at $1,101,745,900, with net tax capacity of
$22,354,293, for 1990; a 3.26 percent increase in market value. The final total
will not be available until later this summer.
MOTION: of Holton, seconded by Goodwin, to adjourn. Ayes - 5 ~ Nays - 0.
The meeting was adjourned at 9:33 o'clock p.m.