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HomeMy WebLinkAbout06/03/1987CITY OF APPLE VALLEY Dakota County, Minnesota June 3, 1987 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held June 3rd, 1987, at 12:00 o'clock noon at City Hall. PRESENT: Mayor Branning; Councilmembers Holton, Humphrey and Savanick. ABSENT: Councilmember Goodwin. City staff members present were: City Clerk Mueller, Finance Director Ballenger, Personnel Director Boland and Assistant Administrator Lawell. Mayor Branning called the meeting to order at 12:08 p.m. Steve Mattson, of Juran & Moody, was present and delivered five bids BOND SALE for the $2,170,000 General Obligation Improvement Bonds. The City BID OPENING Clerk opened and read the net interest rates as fellows: Dean Witter Reynolds 6.4958 percent; Piper, Jaffray & Hopwood 6.4067 percent; First Bank St. Paul 6.4280 percent; Dain Bosworth, Inc. 6.4473 percent; and Shearson Lehman Brothers 6.84 percent. Mr. Mattson then reviewed the bid calculations. Councilmember Humphrey reported on the financing seminar he attended in Washington, D.C. He stated there is still much concern over the question of taxable and nontaxable bonds for city improvements and the IRS and Congress will probably continue to review their use. HUMPHREY SEMINAR REPORT Mr. Mattson reported that the bid of Piper, Jaffray & Hopwood is low and he would recommend award. MOTION: of Holton, seconded by Savanick, adopting Resolution No. 1987-115 awarding the sale to Piper, Jaffray & Hopwood, the low bidder, at a net interest rate of 6.4067 percent and authorizing the issuance, prescribing the form and details and providing for the payment of $2,170,000 General Obligation Improvement Bends of 1987, Series A. Ayes - 4 - Nays - 0. RES. 1987-115 AWARD BOND SALE RES. 1987-116 SUPPORT SINDT LMC BOARD MOTION: of Savanick, seconded by Holton, adopting Resolution No. 1987-116 supporting Lakeville Councilmember Betty Sindt for a directorship seat on the League of Minnesota Cities Board of Directors. Ayes - 4 - Nays - 0. The Council discussed its future meeting schedule and the need for an MEETING SCHEDULE informal meeting to further review the City Hall space needs study. They agreed to continue this review following the regular meeting on June 25, 1987. MOTION: of Humphrey, seconded by Holton, to adjourn. Ayes - 4 - Nays - O. The meeting was adjourned at 12:27 o'clock p.m. CITY OF APPLE VALLEY BOARD OF REVIEW Dakota County, Minnesota June 3, 1987 Minutes of the Board of Review meeting for the City of Apple Valley, Dakota County, Minnesota, held June 3rd, 1987, at 7:00 o'clock p.m. at City Hall. PRESENT: Mayor Branning; Councilmembers Goodwin, Holton (attended at 10:45 p.m.), Humphrey and Savanick. ABSENT: None. City staff members present were: Acting Administrator Gretz and City Clerk Mueller. 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 1987 and then turned the meeting over to representatives of the Dakota County Assessor's office. Bill Peterson, of the 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. A member of the audience asked if there would be general comments about the valuation process. Mayor Branning said general discussion would be held after everyone has had an opportunity to review the property records. A question was asked about the amount of the valuation increases and the policy of requiring valuations to be within 90 percent of market value. Mr. Peterson said the State Department of Revenue issued a memorandum in December 1986 making this change; property previously had been required to be valued to within 85 percent of market Michael Wandmacher, Acting Director of the Property Tax Review Division for the Department of Revenue, was present. Mr. Wandmacher said State law provides that property be valued at 100 percent of market value throughout the state. It is not possible to value every piece of property exactly at 100 percent and previous rul- ings were to accept valuations within 85 percent of market. In order to minimize the disparity, this has now been changed to 90 percent. The reason for keeping values as close to market as possible is to equalize the base upon which taxes are levied. This is particularly important where taxing jurisdictions cross city boundaries to ensure all property in a district pays its fair share of the tax. A question was asked about what the 10 to 15 percent increases in market values will mean for property taxes. Mr. Wandmacher said until the various tax levies are submitted in fall, it is not possible to make any computations. The current mill rate cannot be multiplied against the new valuations because the mill rate is only a result of property tax levies. The meeting then recessed and all persons in attendance were given an opportunity to review the property records. (Councilmember Holton attended during this time.) The meeting was reconvened at 10:45 p.m. CITY OF APPLE VALLEY BOARD OF REVIEW Dakota County, Minnesota June 3, 1987 Page 2 Mr. Peterson reported that they had completed reviews with thoss signing the attendance rester (containing eight pagss). In general, most people wanted an explanation of their values and the reasons for the increase. Appointments have been scheduled for call back reviews of soms property and a list will be submitted to the Council. They also have a list of people who have contacted their office by phone and by letter and reviews will be conducted with those individuals. Mayor Branning asked for information on the percentage increases. Mr. Peterson reviewed the information showing a comparison of the residential property increases for 1987 for Apple Valley and other Dakota County cities. They believe the adjust- ments have now brought the entire County to 91 or 92 percent of market value. The total estimated assessed value for Apple Valley for 1987 is $199,021,188 compared with $160,422,409 for 1986. Barbara Boisvert, 109 Shoshoni Trail, said prior to 1981, State law provided that the assessor could not increase values by more than 10 percent in one year. She believes the 15 percent increase on some property this year is too much and should at least be spread over two years. She also said Farmington has requested a five percent reduction on its total value and asked that Apple Valley do the same. Councilmember Humphrey said State law provides that a City Board of Review cannot reduce the total valuation by more than one percent. The action Farmington took is something that cannot be implemented. Councilmember Goodwin agreed and said a standardization of values throughout the County is important especially when school district boundaries cross city lines. Lloyd Wallin, 8492 West 133rd Street, said he agrees with Ms. Boisvert that the increases are too much at one time and the Council should be cautious in accepting the recommendations. Whether or not the action Farmington took can be implemented, it is making a statement that it objects to the increases. The Mayor said this process has been established by the State for the purpose of equalizing values and the City is trying to be responsible to all people in complying with it. MOTION: of Savanick, seconded by Humphrey, continuing the Board of Review meeting until June 18, 1987, at 8:00 p.m. at City Hall at which time the Dakota County Assessor will report on final 1987 prop- erty value recommendations for the City. Ayes - 5 - Nays ~ O. The meeting was adjourned at 11:15 o'clock p.m.