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HomeMy WebLinkAbout7.f. Local Board of Review / Transfer AuthorityCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE October 15, 1991 AGENDA ITEM: Local Board of Review/ AGENDA SECTION: Transfer Authority New Business PREPARED BY: Administrator AGENDA # 7 Stephan Jilk,'City ATTACHMENTS: 1. Resolution APP VED Y: 2. Letter from County In the 1991 legislative session a law was passed which allows cities to transfer their obligation to conduct a Board of Review meeting each year to counties. Rosemount, along with almost all other cities in Dakota County, had to take a formal position in support of this legislation. Dakota County is now willing to take on this responsibility and provide,_ what we believe, will be a more streamlined and cost efficient method of managing this process. Our recommendation is to adopt the necessary resolution and transfer this process to the Dakota County Board of Equalization. RECOMMENDED ACTION: Adopt a resolution authorizing the transfer of duties from the City of Rosemount Local Board of Review to the Dakota County Board of Equalization. COUNCIL ACTION: w CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1991 - A RESOLUTION AUTHORIZING THE TRANSFER OF DUTIES FROM THE CITY OF ROSEMOUNT LOCAL BOARD OF REVIEW TO THE DAKOTA COUNTY BOARD OF EQUALIZATION WHEREAS, The Rosemount City Council has been required by State Statute to establish a Local Board of Review; and WHEREAS, The Local Board of Review of the City of Rosemount currently meets annually to review the property assessments as established by the Dakota County Assessor for all properties within said city; and WHEREAS, said Local Board of Review meetings are often inconvenient for taxpayers and provide inefficient service to the public; and WHEREAS, taxpayers within said community must wait extended periods of time for a hearing at the Local Board of Review; and WHEREAS, legislation has been passed (M.S. 383.73) which allows the governing body or town board of any home rule charter or statutory city or town in Dakota County to transfer the duties of the city or town Board of Review or Board of Equalization under Minnesota Statute, Chapter 274, to the County Board of Equalization; and WHEREAS, said legislation requires that a transfer of these duties is permanent and must be communicated to the County Assessor before December 1 of any year to be effective for the next year; and WHEREAS, said members of the County Board of Equalization are appointed by the County Board of Commissioners, and said Board of Equalization is composed of appraisers, realtors and others who are knowledgeable about the real estate market in Dakota County; and WHEREAS, said County Board of Equalization is authorized to meet during the months of April, May and June giving residents an increased opportunity to schedule time to appear at hearings; and WHEREAS, said County Board of Equalization would hold their meetings at various locations in the county, allowing easier access and time savings to residents wishing to appear before said Board; and w CITY OF ROSEMOUNT Resolution 1991 - Page 2 WHEREAS, the City Council of the City of Rosemount has reviewed the current Local Board of Review process and has determined said process could be improved by transferring said review process to the County Board of Equalization. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Rosemount hereby authorizes the transfer of duties from the Local Board of Review of the City of Rosemount to the County Board of Equalization, effective January 1, 1992. Vernon J. Napper, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted against: DAKOTA C �\ l T Y MARVIN A. PUIJU O ` / V ASSESSOR IV/ (612) 438-4200 UMNU IH UUUN I T UUVtHNMtN I UtN It October 3, 1991 Mayor Vernon Napper City of Rosemount 3405 145th Ct E Rosemount, Mn 55068 Dear Mayor Napper: 15yU HWY. 55, HAS F INU5, MINNtSU I A 55UJi 5 Last year the State Legislature enacted legislation which provides an opportunity to improve the assessment and review process in Dakota County. This legislation was sought by the Dakota County Board of Commissioners with the written support of Burnsville, Eagan, and Rosemount, and the verbal,.support of many other cities and townships in the county. Since 1970 all assessments of real and personal property in Dakota County have been handled by the County Assessor, unlike most other counties in which many cities and townships must also undertake assessment functions. I believe this has been a remarkably cooperative relationship, and one that can serve as an example for others as they discuss opportunities for local government to consolidate services. The new legislation permits cities and townships to streamline the valuation process for taxpayers, by providing them convenient opportunities for discussions with assessors and enabling them to present their issues directly to the final decision-making entity - the County Board of, Equalization. Such action would eliminate the local board of review, and would remove an "extra step" in the valuation process. We believe this has been frustrating and inconvenient for taxpayers, widely misunderstood, and costly for all of us to administer. I believe there are benefits to all from eliminating the local boards: * Taxpayers would not have to wait long evening hours to review their concerns with County Assessor staff. Instead, they could appear or schedule appointments at their convenience, day or evening. * City Councils and Town Boards would no longer be required to hold Local Board of Review meetings. Opportunities for citizens to comment about tax rates would be preserved through Truth -In -Taxation hearings, and valuations would still be appealed to the final governing board, the County Board of Equalization. * The County Board of Equalization will become more accessible to taxpayers. It can now meet at various locations around the county anytime during April, May, or June. Previously state law required the Board to meet only in Hastings and only during the last two weeks of June. * We can reduce taxpayer frustration, and the Assessor can deal with the valuation concerns of citizens rather than their annoyance with the process. Overall, the County -wide Board of Equalization would better accommodate the needs of our constituency and would be a more efficient system. I believe it would be another significant step toward more efficient local government in the county and would further demonstrate our commitment to.local government cooperation. Therefore, it is our hope that you exercise your right to transfer the duties of the Local Board of Review to the County Board of Equalization. Please note that, according to the statute, "A transfer of duties as permitted by this section is permanent and must be communicated to the county assessor before December 1 of any year to be effective for the next year." During our discussions with city managers and administrators, it was suggested that we develop the enclosed resolution for your use. I have also enclosed a brief paper outlining the issues in greater detail. If you have any questions, or would like to meet with me in person, please do not hesitate to call. Thank you for your consideration. Sincerely, ruin Pulj Dakota Coun y Assessor cc: Stephan Jilk, Administrator Background Information Boards of Review/Equalization Dakota County Demands on the board of review/equalization process have greatly increased in recent years. Increasing property values and rapid growth in both the number of parcels and the population of the county have contributed to a tremendous strain on the system. In Dakota County, attendance at local boards of review and the County Board of Equalization has increased dramatically in recent years, with a peak of 3,300 attendees in 1990. Recent changes in the State's tax laws will likely maintain or increase the level of interest. Therefore, we thought it was time to reconsider ways to handle such attendance more effectively. There are no assessors employed by the local communities, and the entire assessment cost is a responsibility of the County. County Assessor's Office personnel are solely responsible for establishing market value on all real property (approximately 105,000 parcels). The same staff members attend all thirty-four (34) local board of review meetings, as well as the County Board of Equalization meetings, to meet with county residents and answer questions. It is still the intention of the County to continue the "open book" informal, meeting process. These meetings are held in various locations throughout the county, and have allowed easy access for the public. Currently meetings are required to be held in all thirty-four taxing jurisdictions during the months of April and May. Typically these are evening meetings for the convenience of the Board members and taxpayers. However, many taxpayers work evenings, thereby making attendance a hardship. It is not uncommon to have between 200-500 taxpayers in attendance at a Local Board of Review meeting. The volume of inquiries, along with the limited available time to review them, makes this system both inefficient and costly. It simply is not feasible to handle 3,300 taxpayers during thirty- four evening meetings. It is not efficient, or safe, to transport up to 18,000 appraisal records to each local community as required by law. The time span between local boards and County Board of Equalization is not sufficient for our staff to complete the review process. Also, taxpayers do'not have sufficient time to prepare evidence which may support their position. RATIONALE: The following are reasons why we believe it would be a good idea to have only one county -wide equalization board in Dakota County: 1. Currently it is difficult for the Local Boards of Review to serve people in a timely, efficient and structured manner in the allocated time frame. Also, for Assessing personnel to attend thirty-four Boards of Review meetings at various locations over a two-month period is demanding, costly, and an inefficient use of staff time and tax dollars. 2. Most of the cities and townships do not have the facilities to handle a large crowd of people, and it is difficult to conduct a structured and organized meeting in a few hours. Some of the meetings continue until midnight, and some people have waited four to five hours to talk to an appraiser. People often leave because they get angry and tired of waiting. 3. With large numbers of people attending, it is difficult to hold effective meetings and meet the objective of reviewing the current year's assessments. Sometimes the meetings take on a political tone, which the crowds resent, as a result, people become more difficult to deal with, even on a one-to-one basis. 4. The county -wide Board would operate during the months of April, May and June, giving Dakota County residents an opportunity to schedule time to appear at the hearings. 5. The County Board of Equalization could hold their meetings in various locations in the county allowing easier access and time saving to the residents wishing to appear before the Board. 6. Members of the County -wide Board of Equalization are currently appointed by the County Board of Commissioners. The appointed board consists of appraisers, realtors, and others who are knowledgeable about the real estate market in Dakota County. 7. The extended time period of the meetings would allow more time to educate and discuss taxpayer concerns. 8. The reality is that few value changes have ever been recommended by the Local Boards of Review in Dakota County. Any change that might be made by local boards is subject to final review by the County Board of Equalization. The new legislation eliminates this duplication and allows the taxpayers a hearing directly before the final decision-making board. 9. The governing body or town board has the option to transfer the duties of the Local Board of Review to the County Board of Equalization. WHEREAS the Rosemount City Council has been required by State Statute to establish a Local Board of Review; and WHEREAS, The Local Board of Review of the City of Rosemount currently meets annually to review the property assessments as established by the Dakota County Assessor for all properties within said city; and WHEREAS, said Local Board of Review meetings are often inconvenient for taxpayers and provide inefficient service to the public; and WHEREAS, taxpayers within said community must wait extended periods of time for a hearing at the Local Board of Review; and WHEREAS, the County Board of Equalization has previously been constrained by statute in location and days of meeting; and WHEREAS, legislation has been passed (M.S. 383D.73) which allows the governing body or town board of any home rule charter or statutory city or town in Dakota County to transfer the duties of the city or town Board of Review or Board of Equalization under Minnesota Statute, Chapter 274, to the County Board of Equalization; and WHEREAS, said legislation requires that a transfer of these duties is permanent and must be communicated to the County Assessor before December l of any year to be effective for the next year; and WHEREAS, said members of the County Board of Equalization are appointed by the County Board of Commissioners, and said Board of Equalization is composed of appraisers, realtors and others who are knowledgable about the real estate market in Dakota County; and WHEREAS, said County Board of Equalization is authorized to meet during the months of April, May and June giving residents an increased opportunity to schedule time to appear at hearings; and WHEREAS, said County Board of Equalization would hold their meetings at various locations in the county, allowing easier access and time savings to residents wishing to appear before said Board; and WHEREAS, the City Council of the City of Rosemount has reviewed the current Local Board of Review process and has determined said process could be improved by transferring said review process to the County Board of Equalization. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Rosemount hereby authorizes the transfer of duties from the Local Board of Review of the City of Rosemount to the County Board of Equalization, effective. � yL (Date) Sec. 2. [383D.73] ASSESSh1ENT REVIEW. The governing body or Lown board of anX home rule charter or statuto cit or town in DakoUt count ma trans er Lhc uUes of L pe cit or Lown oar o review or board o ec uali ation under Minnesota Statutes Cha pLer '' 4 to Lhe count oarc O cc ua fZaholi. A Lransfer of a i ties in permby this section is permanent and must be communicate to Lhe county assessor before December i of any year to be effective for Lhe next year.. 1'he cwmLv oard of equalv:dlion shall npcel c unn • 1\ prtMa ane . uuc at Lhe places c c� term uc+l by L pc cocinly board of commissioners. The count :►ssessor shat attend cac p pned�line of the County board of ecidrplization at which pub p Lctitpmony is to be La en - Sec. 3. EFFECTIVE DATE. Pursuant Lo Minnesota SLatutes section 645.023, subdivision 1, clause (a), this act takes effect the (lay after final enactment. Presented to the governor May 31, 1991. Approved June 4, 1991.