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Home My WebLink About08-22-1984 Council Minutes Special Meeting 6a --: � �� •, —� ,, . k ��_ h�.. �i:, . . ...� AUG 2 � 19�;�+ SPECIAL COUNCIL MEETING AUGUST 22, 1984 _ ° •_`; � � `,, . �.�� . �r � , _ �,� A special Council meeting held at the Art Center of Minnesota , was called to order by Mayor Butler at 7 : 4Q1 p.m. , August 22 , 1984 . Mayor Butler introduced thefollowing persons : BobSearlesformerMayor of Orono and former member of the State Legislature, Brad Van Nest former Mayor of Orono, current Councilmembers James Grabek, Tom Frahm, Tim Adams, and John Hammerel , also Don Monk Hennepin County Ass�ssor and Lou Oberhauser former Mayor of Orono and Dorothy Hallin City Clerk. Also present were State Respr`sentative John Burger, Chairman of the Orono Planning Commission Diann Goetten, Planning Commission member Ed Callahan and John Gerhardson of the City staff . Mayor 3utler stated the purpose of this meeting was , should the City of Orono cease contracting with Hennepin County doing its tax assessing and hire its own tax assessor . She told the audience we are here to get your input and maybe tonight we can vote on it. Mayor Butler asked if anyone in the audience had any questions . Tom Lowe asked what the County is charging the City of Orono for their services and if the cost is broken down by parcels . Mayor Butler stat2d that the current contract with Hennepin Cou��y is a 4 year contract and the cost is $42 , (�fd1� per year . We have roughly 4 ,a�,� parcels within the City which would be around $l� . aQl per parcel . She stated we have one bid for assessing services to the City by a private individual who is an accredited assessor for $39 , 7�8 with about $1 , PJ��J worth of administration costs billed back to the City. This proposal is for a one year contract with no discussion as to costs for future years . MayorButler stated thatcontractingwith Henneoin County we have had the full service of theCounty Assessor ' s office and their computer progr�ams , computer time, and man power to do the actual field work. The pr000sal indicates tha_t. he gets some of his information and computer time from Hennenin County. He has two assistants working with him. Councilmember Grabek stated that the history of the assessing matter should be reviewed to help the citizens and the Council arrive at a decision. Former Mayor Brad Van Nest stated that he was the Mayor when the City decided to go to the County for assessing services. He stated that when Oberhauser and Searles were Mayor the City had an assessing district which was a joint powers agreement between Minnetrista, Spring Park, Orono and Minnetonka Beach. We had 2 assessors who had offices in one of the other cities until Orono moved into its present building . It was effective and did a good job. We had continuity of people doing our assessing. They became familiar with City policy they knew the land and the people . The City of Spring Park decided that page 1 they wanted to drop out of the district and they went to the County for assessing services . The West Hennepin District disbanded at that time. The OronoCouncildecidedthatOronowanted their ownassessor . We hired the assistant assessor of the West Hennenin District in late summer . In the fall of that year he resigned as Orono assessor to accept an assessor ' s job in another city. Being so late in the assessing year the Council voted to sign a contract with Hennepin County. We signed a 4 year contract with the understanding that we could break the contract after one year . During the first year the County increased the lakeshore property. It was at this time I discovered that we had notning to say about who was doing our assessing and Orono had given up all control . At the conclusion of that year ihe Council was truly unhappy with Hennepin County. We tried to break the contract and were told that we could not break the contract . At the end of the next year we passed a resolution stating that at the end of the 3rd year we wanted to advertise and have an assessor on staff to be ready and work with the County with that last year so that at the end of our 4 year contract we would be ready to go with our own assessor . That has never happened. I would like to give you my view of the situation. Picking your own assessor , whether it be an independent contract or by hiring your own employee, is one of the very few pow�rs a City has left. That is very i;�portant to me because we hav� such unusual property here we want to have continuity of an assessor. Don Monk stated that Milt Hilk, Chief Appraiser , has been very closely associated with the community and the appraiser that has worked in Orono has not changed over the 4 year period. It is true that Orono is very complex and it is important that those consistencies be maintained and that we know a lot about your community. It is for that reason that we have not changed our staff . Councilmember Grabek stated because �ae have our own assessor does not mean t'nat we can go below a certain level of taxation in our area, If we do go below a certain level of taxation the county then has the right to step in and reassess what has already been done. In other words just because we have our own assessor does not mean that everyone ' s taxes will go down or they won ' t go up as fast. Donk Monk stated Orono has a median assessment ratio of 94 . 5 and a mean of 93 . 2 and the coefficient of dispersion, which is an equalization measurement, of 8 . 30 . The lower the percentage the tighter theclustering of your equalization within the City. When we entered into the contract with Orono the coefficient of dispersion in the City was 160, we brought it down to 8% in the very first year . Bill Sime stated to Don Monk, that he had sales ratios from the investigative staff of John Burgers office and the State of Minnesota. They are the 1983 sales ratio studies , sales analysis for Minnesota tax court , county wide ratios by property type, based on sales from January 1983 through September 1983 . 1983 sales are compared to 1983 market values . These differ a great deal from what you have just given us . Don Monk stated that Mr. Sime ' s information was not correct since he was mixing the years of statistical information. The statics I page 2 gave you are for the current year 1984 , they are the most current available anywhere. Ed Callahan asked what control the City had over a local assessor as opposed to the County doing the assessing work . Mayor Butler stated that we do not have control over the personality, when the County does the work we may not have the consistency of the sa:ne individual looking at all of the parcels. Although, Monk stated that we have had the same person throughout the 4 year contract . �aniel Regan asked if creative financing, which over inflates the market value, is taken into consideration in the sales ratio studies . Don Monk stated that the sales are carefully analyzed . Property purchased on Contract f or Deed, even though they may not be recorded, must show the Contract for Deed when applying for homestead so we get the information anyway. CouncilmemberFrahmstated thatwhetherHennepinCountyassesses the property or our own assessor ass2sses the propertyHennepinCounty looks at its number the way it generates them and if we don ' t match their numbers they have the ability to come in and adjust our assessments whether they did the assessment or we did the assessment . They have the final say. Former Mayor Bob Searles stated a single assessor working by himself does have more of a problem in a growing community like Orono. The contractor who has proposed a bid already has experience in other communities and is already providing services to others. When we first went to the West Hennepin Assessment District it was to try to go the middle of the road. Councilmember Grabek stated that he did not want the citizens of Orono to get the misconception of the word control of our own assessor . It shouldn ' t mean that if you feel that you' ve been wronged with the assessment for tl�at specific year that you have any more control over that assessor individually than you would have now. But the advantages that Mr . Searles and Mr . Van Nest talk about is that , philosophically, a better understanding of the community would be easier to communicate to the assessor if he were our own. Please keep in mind that we have one individual that has offered us an alternative to the County but if we don ' t happen to choose that course and we get our own it will cost you and the citizens of Orono approximately $l�C� , 41�� instead of $39 ,�IP10 or $40 , P��F1 . We would have to hire our own assessor give him an office , a staff and pay his taxes and benefits . Mayor Butler stated that the $1PIH , g410� would be the first year cost . The cost of moving someone in and establishing office space and setting up the record keeping . The second year would be that individual ' s salary, staff salary plus benefits and administrative costs . page 3 Councilmember Grabek asked Monk if we went to our own assessor or contracted with someone could we acquire the computer information that has been generated by the County staff? Monk stated that all of that data is available to the City in hard copy form. All of the available data would be transfered . Former Mayor Lou Oberhauser stated that when he became Mayor there was a change in the law that said you had to have qualified assessors . Before that th�t the assessing was done by good Joe and whether he had any qualifications as an assessor was really immaterial . When that came up we had to choose whether or not we should go with the County who nad qualified assessors on staff or go our own way with our own qualified assessor . The question is never between the qualifications of the assessor because tiZe assessors that work for Hennepin County are very well qualified. The assessor that we hired for theAssessing District had good qualifications . It really boiled do�an to the principal of government and the principal of Orono existing at all is that principal of local control . The best government is the government that is closest to the people and when we sat down and went through the process we felt that the existance of our village was based upon the principal that we keep the functions that the village can carry out , which are getting less and less , as close to home as possible. It was basically based upon that principal that we decided to go with the �9est Hennepin Assessing District, which I think was a good decision both on a principal basis and also based upon the results that we received . One of the things that happened when the County took over was the fact that Don Monk mentioned, there was 16 o differencial , now we are down to 80 . I think that it really boils down to not so much the monetary consideration, asreallyaprincipalof government. That is the best government although it :nay be more expensive individually to the citizens , is that government that is closest to the people and that is to have your own local assessor . Gentleman from audience asked, is there any conment either from the audience or the Council about the level of service, response to complaints , response to citizens questions at the County? Are citizens and Councilsatisfied with the services they are gettingfrom the County? - - Mayor Butler stated that she had not personally received any criticisms of the County or their staff . Kenton Carlson stated the bottom line is , within the community are properties being assessed fairly and is Orono as a community being assessed fairly compared to other communities . Counci lmember Grabek asked Monk would the City of Orono lose if we make a decision to hire our own assessor this year and evaluate the program this year and watch it, monitor it and make the choice as the next year comes up whether we continue the contract with this assessor or another assessor or decide to go with the County. What do we as a City have to lose in your opinion? page 4 , Don Monk stated that the City of Orono would not lose. He stated that Orono has a decision to make. He stated the purpose of his being at the meeting was only to ask the Council for a decision on the future of Orono ' s assessing work. He stated yes , that will work you, can do something like that. George Grooms stated that he was aware of a petition that had been circulated throughout the City and questioned what had become of this petition. Bill Sime stated he had the petitions that had been returned to him. He also stated that he had contacted several communities that had their own assessor , he read several letters that stated that the communities felt their citizens were more comfortable with a local assessor and that the work was being reviewed by Hennepin County, therefore there were checks and balances . He read the petition to the Council and presented the petitions to Mayor Butler . State Respresentative Burger stated that there is a tax commission working now tomakerecommendationsregarding thewhole tax structure in the State of Minnesota. Out of this tax commission are going to come recommendations , some of them affecting the property tax . When you nave your own tax assessor you can take advantage quicker and on a more personalized way of changes that may come at the state level , as far as property taxes are concerned. Councilmember Adams stat2d the County has done a very good job over the past 4 years and the Council appreciates the comments of the citizens . Councilmember Grabek moved, seconded by Councilmember Adams not to renew the contract with Hennepin County, staff to immediately persue hiring an assessor on a contract basis , within our legal time limit subject to approval by the Council. Motion, Ayes 5, Nays d . Bill Sime stated that the City Attorney should check and se2 how long the City can be without an assessor before the County Auditor appoints one for the City. City Attorney Malkerson stated that there may be an automatic extension provision on the current contract, we may be under a four year contract already, but let ' s assume we are not . CouncilmemberHammerelmoved, seconded by CouncilmemberAdams to adjourn at 9 : 4� p.m. Motion, 5 Ayes , P1 Nays . � Mar C. Butle , Mayor ATT ST: i _ i Do othy M, allin, City Clerk page 5 .Planning Commission Council PUBLIC ATTENDANCE s�.�A� � . CITY OF ORONO MEETING DATE �pfp�- � PLEASE FILL OUT THE INFORI�IATION REQUESTED BELOW FOR OUR CITY RECORDS . A�-A��E--O�t--i��B�,R NA?�IE (please print) ADDRESS P�E�ENT-=r�'��f f=�e�--age.rr�d.a) .--, ' , C.., C / ` �- � ,1 � -�� > > � 1 _ , f,, �ii; %�� ri/,' �-,!�t; -�— t�/:��./�•o . /�.� � P�=� _''��-c'�C,C-r' / / ,; <%�,J -- f j c; .�/�`�=�'!' ;-, � � 3 ,�f�,'y�I'" ' �=" � /"�i �v C',?'_ ';�/�/ ��;�'ri)�jy`,r, �';f�� ' / � � �� 4 Y/��'fi/ _ ��` >>P.:'�� %��T� �;� �l7'%L-_ ��w 5 �� .��_,� � � ,'� _ �, � '�!�- ,�! �i� ,-_� -- .l�l--- i // �V �\ .� , 6 �;' •�1�.�, .. �; � .� , �, � � v �� f ��' ; Q1 r �; /,_.-� , �� ,i �i % . \/ /./Il�l� ` / /� -1 t.�"/�. � ' .. '. ; ^ 8 . LU.��c-;�..t�� J, u�� '.�-.�..4_.E ` (.,%__c�� ' 9 � .��L.,..� , �c� T : ��i,/ � ��: Z-�� - , • �� i 10 . ��l�,c�- ;!'% `��-�c,�e>� �%,;, j,�h° > �- i-i � - �� 1 1 �_"/c'/1�� C/Vj�7 L L 2� .i�.�'i i l<�' .f '�l;�� 12 . (^-:f /'� ��Z.r�: „ `' �, �� '-�,` ' ? 13 . r -'t !i �� Q/ � - �'� � -�--�-�-�-.� -v 14 �� %L �--ti �% ,.L � / _i� �, � �' �-� _ , -� ��.: , / �7 � 15 . ' ,- � � � � n � � � •� �,l_ �� i��.� �(, ' �-`' �� .}C_� `�-c v. 16 .�1��5 �C� `"�i�c� � 5 �0�5 1 ,�itC�,� �r� � � `� � 17 . � .. _ ��_ - / /'' - ��,,�=-; �''�`� - � � ' , / � 18 �� ' ;� � 'i � �� ,,,c. ''„ti�,� � _,� , � (', ` �� 19 . �w / �� a ��.�l� �� . `-t� / � ,� � (� �(� � 20 . � �� ,� � ��) S��J �9 ��,� ��C' ��a�1�31_�. � � � page 6 •� Planning Commission Council PUBLIC ATTENDANCE ��i�� CITY OF ORONO MEETING DATE (5��'�� PLEASE FILL OUT THE INFORAIATION REQUESTED BELOW FOR OUR CITY RECORDS. � NAME (please pri�t) ADDRESS ___ / ,i �, � * , . 1 ' :.:'!� ;�� c�,.'"—'��-'' �+'%t�'�= ";Gc�;��, �,, '�� r- � , � � 1 � 2 / �= � '1.�� F � �/�,� � G7. O ,� � � � � j � , _ � � �� 3 -s �v� �1 �/.�`� 'j � ''� �'`-�� --- f�- % =�, � �:/ , 9 i � / ; �; � � �� "('/' .� � /S (� ' 9-�/_/_i�� if ; �,�- � � � f � � /�/ L j 1� .� � 5 .l D.�T.��-- ��,-� �� [a �,(,�r��, !�`,:�,� Y1` � � ; �_� �'\ 4 — 6 . � �--� % 1 _�: `�'s c�� -�.�._ � 1'� r -'r' %��', ��i'1,, ��I�,��- ��—r� �-�/��/�J /J'!��/xJ.�l�.^� /��/� g,��` !!� /� c�1��L!? y�/��LJ'�t�i�� i!�I�% LL�j��'<lilCl'_�J f.f' 9 . 10 . 11 . 12 . 13 . 14 . 15 . 16 . 17 . 18 . 19 . 20 . - vre cne unaersigned residents of Orono, being of voting age, do hereby / res��ectfully reyuest our City Council to cor�tract witl� a licensed � assessing service for tt�e tax parcels in Orono other than the E�ennepin County County Assessor for the following reasons : 1 . S�e strongly feel a smaller , more local ty��e assessing service will give us more personal and much more courteous attention. 2 . An asessing. service concentrating on our community will be better informed on the philosophies anc3 goals of Orono which impact on our property values . 3 . we are convinced that we can get a better quality of assessing through a service that is more local. in character. 4 . The surrounding communities wtio have left llennepin County have found it less expensive ; but we would prefer an alternative to tiie Hennepin County Assessor even at a higher price. This__petition has been signed between August 13th and 22nd , 1984 tJAf•1E ADDRESS ��. ��Yz�-%✓� �� - �� /J s=-,-;�i7Jv;� �?i'Yr><i l �'r �`�(�l/�l� /�J�� J� >-�-,.,:� � /5�C r�5 f ,�s�rv..s ,� � /�'v� Y1 _� `_ - � � - -��- �---- - �� Z� �-�' _ : ( ��_. 7�' < t. _ \ �-� _ ��J �� \ /i / �- " �� 1 �` , �; ��.�, ,Cc �;_.�, f . .. . �—_ � `�=� '�z `� f�t'< ; /�'.-�-'�- 1=Lt,._� , �, - � ; -�, .�� .� %�!'�i- �,., :�� - - � �. �� , ��- , � ��__L-1� �� iii �� -��.-�� , �c_� �. , ,_ , I � — � ;, � � �/�/i'��... !� !� .�_. �� - -f..%�� T-G�Y �:f 1�i�1 u +�-� �""�"1 � % � � l -- � -t �r�-� � � :l- r';/�� _ `.-�� ;-�-� ,1% �;, �c� � - ,�� = �' / , � '�� ', �}` "�-'=�� - 1�i''� ��.�.-- � �� f�;��t� � � ` � �� i 9 . ( f :�T�t _ � ��c.c. . :'� � � _�-: �- / � i � / � ,, �._.� ,�-__ � -�'� ,� .. ��— /��. /�� ,:. '-72�I:,d� ;� ; . ` /'c�� ,� �� < < - %''7u" � . �r'�._ �L Z i�--� 'I � �� -L/��.� - � �^ -7 �� `t,:,�t � ,� �L�t_�-, �• / ' �' � � , '� � �-- �-,'-', •,�-Z_,,� � C-� � �- . ��Z- � . ).�� '�..: �� ; � � �� •/;< � i,v� , " .� ,-, :i �. C(� '�-} /� %"� !_... ��- � - ` j /� � ... '� — . �� % r. /�^I� ��I -�t�, '� ,:,,�;, :-T•' ;(f ; {r( j�` 1> /1/ ,/ ��%, �, � ,��,� � '�i= :,:�-? ,..�, �� /�, �� r /i ' '� . ��=/f^;/?/��i'✓ J,/��`�/✓v`� \'4.{' ; -`�� C ��i�.� ��c��.c'—t:= ��r—t�.��.c� ��.i� � ,Yi��i%,l�� // /�/��i�%�' � � �� - .—. ,- . �� i- C' ��/.c�:i�, �C.` ;�• �'��,:� ��C�%t i�iC' �/-% :� C��%-,-��.-�� . _ ^ . �� ZC` 7` l�- >= �� 7�- � . � - ,� %7.5 �Z%7'' ,C � �l' - ,/l� n t� � _ /1��: � � � 1 E� � � > J �� L � 7 f � . 7 � /r i� �� Y , '/ �'�� ) i �� (��Vt/1'l�(1 � ! �� l��' I" ) �� `) i' i; ;� j i''1'��' r ��I � ) !," �( ., -✓ /j'� �/ " �� i /!,, .�� l,: � I-i-� � r C ii /��lr;:,� l� /�Il' � �� = �� :,�. � � �:�� /� � � i'�.�'_ . .. �- ' i� . �," -�,. � ,,.. t�e the undersigned residents of Orono, being of votinq aqe, do hereby 3 . res��ectfully reyuest our City Couricil to contract with a_ �.a.c��sed assessir�g service for the tax �arcels in Orono other than the Hennepin County County nssessor for the following reasons : 1 . We strongly feel a smaller , more local ty��e assessing service will give us more personal and much more courteous attention. 2 . An asessing service concentrating on our community will be better informed on the philosoghies an�i goals of Orono which impact on our property values. 3 . we are convinced ttiat we can get a better quality of assessing through a service that is more local in character. 9 . Z'he surrounding communities �aho have left Hennepin County have found it less expensive; but we would prefer an �1tPrnative to the Hennepin County Assessor even at a higher price . This petition has been siyned between August 13th and 22nd , 1984 _ I, _ _ . � ; � � , AUDRF.SS - - - � --- - - '� / ' �� ./ � �- � -��'�''--- ------ �, a�� -; �r�1�� a,ii;� ��- ��;�%� �, -�----- - - � _ - � f-- ,..`,. __ — --' ` �y--r_i-_-1v..r�'•- �,.x-� 1�`�f.-�. = . 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