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04-30-01 Agenda~ucrj • CITY OF RICHFIELD MONDAY, APRIL 30, 2001 LOCAL BOARD OF EQUALIZATION 5:30 P.M. COUNCIL CHAMBERS AGENDA • Call to order Roll call I. Convening of 2001 Richfield Board of Equalization Staff Report No. 106 Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. • STAFF REPORT AGENDA ITEM # REPORT # SPECIAL CITY COUNCIL MEETING BOARD OF EQUALIZATION I 106 APRIL 30, 2001 REPORT PREPARED BY: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR NAME, TITLE • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Convening of the 2001 Board of Equalization. I. RECOMMENDED ACTION: Convene the 2001 Board of Equalization and By Motion: Act on each. individual a eal to the Board. II. BACKGROUND The 2001 Richfield Board of Equalization is scheduled for Monday, April 30, 2001 at 5:30 p.m. in the Council Chambers of City Hall. As provided by City Charter, the Board of Equalization consists of the Mayor, Council Members and two citizens appointed by the City Manager with confirmation by the City Council. Mr. Lawrence Emond and Mr. Glenn Erickson were recently appointed to serve on the 2001 Board of Equalization. The duties and responsibilities of the Board of Equalization are established by State law. In general, it is the Board's responsibility to hear appeals by property owners from the Estimated Market Values (EMV) established by the City Assessor and to determine if market values should be adjusted. The appeals must focus on market 04306d Equal STEVEN L. DEVICH, ADMII~TISTRATIVE values rather than tax rates or other concerns which property owners may bring up to the Board. • Each parcel of property in Richfield has had an EMV set as of January 2, 2001. Overall, residential property values increased by approximately 13.4% from 2000 values. Properties which were physically reappraised received reductions and increases, but were generally increased. Properties which were not physically reappraised received statistical adjustments based on the characteristics of the property and a computer assisted assessment. The Richfield property assessment was conducted through a contract with Hennepin County, which is supervised by the Administrative Services Department. Staff works closely with the Hennepin County Property Appraisers to ensure that the local assessment complies with the provision of the law. For example, the Administrative Services Director verifies that the number of on-site properties appraised for 2001 meets the standard (25% of total properties in the City) established by law. In addition, the median ratio. (comparing EMV to sales price) for Richfield's 2001 assessment is 94.7%. The County Assessor's suggested level of assessment (median ratio) for all municipalities in Hennepin County is 95%. Thus, the Richfield local assessment is on target with comparable Hennepin County communities. On March 21, 2001 property valuation notices were mailed to all property owners • showing the 2001 EMV. The notices advised property owners to contact the City Assessor's office regarding any questions or to schedule an appearance before the Board of Equalization if the property owner desired to challenge the EMV. About 99 inquiries have been received to date, as compared to 127 last year. In addition, Assessing staff did 20 property reviews. Some resulted in adjustments by the Assessing staff. III. BASIS OF RECOMMENDATION A. POLICY • State Statute and City Charter mandate a Board of Equalization Hearing each year to be conducted before May 31. • The City Council has established Monday, April 30, 2001 at 5:30 p.m as the date and time of the Board of Equalization Hearing for 2001. B. CRITICAL ISSUES • To date, no one has notified City staff requesting to appear before the Local Board. • The Board must be completed within 20 days of the day the Board is first convened. • C. FINANCIAL • None D. LEGAL • Any adjustments made by the Richfield Board of Equalization will be recorded on the property assessment rolls. After appearing at the Local Board, property owners may subsequently appeal to the Hennepin County Board of Equalization and/or the State Tax Court. • Notice of the hearing has been published and posted pursuant to law. IV. ALTERNATIVE RECOMMENDATION~S~ • None V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Craig Lone, Hennepin County Properly Appraiser • •