04-22-1998 Council Minutes Board of Review

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MINUTES OF THE BOARD OF REVIEW MEETING • HELD APRIL 22,1998 5 %. Jabbour responded that some lake properties increased up to 50 %. Gountanis noted this was a great burden on people, making it virtually impossible to retire in Orono. He compared the property at 1420 Baldur Park Road on North Arm noting that lot is larger, the square footage of the house is larger and they pay $1,500 less in taxes. Jabbour responded that guidelines set by the State legislature require that the market and assessed values be very close. Kelley commented that the tax system won't change until citizens contact their legislators. He asked what Gountanis thought the proper value would be. Gountanis responded $240,000. Jabbour stated the Assessor will review the property. If Mr. Gountanis is not pleased with the Assessor's recommendation, he can appear at the next meeting. Erickson explained that the $5,000 difference was from the beginning of construction for the 1996 -pay 1997 taxes. 3. Doug Olson, 537 Park Lane, #06- 117 -23 41 0102 - Mr. Olson stated the 1998 value was $524,000 which was up 8 %. The 1997 value had gone up 8.5 %. He added that if everyone was paying the same increase, he did not object. He has already talked with congressmen. Erickson responded that houses in that area sell for more money. Olson did not think property values should go up more than the cost of living. Jabbour noted the 7- County metro area pays higher taxes and some of that money goes to other areas in the State. The City's • budget went up only 2.9 %. Goetten suggested Mr. Olson contact Doug Johnson, Chair of the Tax Committee, or Roger Moe. Kelley asked if his property was on the lake. Olson responded that it was. Jabbour reiterated that lakeshore properties went up from 1 to 50% with an average of 8.6 %. Kelley explained that the problem with lakeshore properties is that people buy them and then tear the house down. This makes the land worth the total purchase price. This creates a problem for true market values when money is not important. Erickson stated he would review the property file to make sure there were no arithmetic errors. 4. Barry Knight, 425 Tonkawa Road, #06- 117 -23 410088 - Mr. Knight has a 2 story home and was astounded at the increase over 4 years. In 1995 he had a 45% increase, which he assumed was reasonable as that reflected the purchase price. There was a 4% increase in 1996, 12.76% increase in 1997 and 12.84% increase in 1998. He stated that he understood the State issues. He did not feel the market values could continue to increase indefinitely. Erickson responded that property values are determined by the historical value of sales. In 1985 values were actually lowered. Hennepin County experienced a similar situation with commercial and industrial properties in the early 1990's. Those values are now increasing again. Knight felt the rate of increase was excessive. Jabbour stated that Knight could use what his neighbor's house sold for to compare property values. Knight asked if all lakeshore attributes are considered when lakeshore properties are assessed. He noted that his property consists of 2`/2' of muck at the shoreline and a 60' drop to the lakeshore. Jabbour agreed that all lakeshore properties are not equal and this should be pointed out to the Assessor for his • review. 2