05-10-2004 Board of Appeal and Equalization Reconvened Packet

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MINUTES OF THE ORONO LOCAL BOARD OF APPEALS AND EQUALIZATION MEETING Wednesday, April 21,2004 7:00 o'clock p.m. ROLL The Orono Local Board of Appeal and Equalization met on the above mentioned date with the following members present: Mayor Barbara Peterson; Council Members Jim Murphy, Jim White and Lili McMillan; Representing staff were City Administrator Ron Moorse and Recorder Glenda D. Spiotta. Hennepin County Senior Appraisers Kim Jensen and Bill Davy, and Appraiser Tom Kunik were present. Council Member Bob Sansevere was absent. Mayor Peterson called the meeting to order at 7:00 p.m. APPEALS Mayor Peterson welcomed the public to the annual Orono Local Board of Appeal and Equalization meeting. Mayor Peterson invited the assessors to provide a brief summary of the appeal process. She explained the appeals would be heard one at a time in the order in which persons arrived and signed in at the Council Chambers. Davy introduced the Hennepin County staff members, Ms. Jensen and Mr. Kunik. Davy explained that since 1998 Orono has contracted with Hennepin County to pro\ idc property assessment services, noting that Ms. Jensen was involved with Orono since then. He gave an overview of the appeals proceedings an'i role and duties of the assessor, which, by state statute, is to establish a property ’s market value r.s of January 2, 2004 that is then used to detcmiinc property tax payable in 2005. He explained the market value is the highest price a property could bring \\ h«*n exposed on an open market involving a willing buyer and willing seller. Davy stated the assessment is based on actual sales that occur in the city of Orono. Davy reported there arc about 2900 property parcels in Orono and 131 property sales occurred in 2003. The assessors conduct ratio studies on the sales, then compare what the properties actually sell for to the current 2003 assessment. This indicates how far the assessed market values arc below the actual sales prices. Davy stated the real estate market is continuing to raise sales prices and the demand for properttes in Orono continues to be very high. Davy reported the sales study for October 1,2002 to September 30, 2003 detennines the 2004 ratio of assessed market value to sales prices. He advised the median ratio of 96-97% to satisfy Hennepin County assessment standards as well as the Minnesota Department of Revenue standards. Fuilhcr, he explained the assessor also reviews random properties not sold to see how much the assessor had adjusted those properties. Davy reviewed the Board of Appeal and Equalization meeting process, pointing out that this meeting is the second level of appeal, the first level taking place when the property owner contacted the assessor to discuss the market value. The assessors physically inspected some local properties after hearing from the property ow'ners and either came to a reduction in value or the homeowners know the values were corrected. At this meeting, the City Council sits as the Board of Review and hears Page 1 of 1 1 1