Board of Review – 05-04-99 - 5
SAINT MICHAEL CITY COUNCIL
BOARD OF REVIEW
MAY 4, 1999
Saint Michael Council Chambers 3:00 P.M.
Call to Order Roll Call
Pursuant to due call and notice, a special meeting of the Saint Michael City Council was held on Tuesday, May 4, 1999, at Saint Michael City Hall. Mayor Kessler called the meeting to order at 3:04 p.m. The following City Council members were present: Mayor Wayne Kessler, Councilors Ken Duerr, Tom Hagerty, Dean Eggert, and Joe Hagerty Also present were County Assessor Gerald Kritzeck, City Assessor Tom Zander and City Administrator Bob Derus. Introductions were made and Mayor Kessler stated the purpose of the Board of Review
BOARD OF REVIEW
Michael Brunner asked City Assessor Zander about the handouts the council received showing the sales ratio for cities and townships in Wright County, asking for an explanation of various terms, including CofD (Coefficient of Dispersion), which is an indication of how tightly the pattern of sales is – County Assessor Kritzeck stated this should be a close tight shotgun pattern.
Ten or less is considered excellent – 10 to 15 considered good -- over 15 there should be some reconsideration. Saint Michael is excellent at 6.36. PRD (Price Related Differential) has to do with how you value your higher value homes related to the lower value homes. Zander explained that over the summer St Michael was put on the computer at Wright County, and a number of corrections had to be made.
The following were requests that came before the Board:
Patricia Hammerstrom, Parcel #114-070-002020, 525 Heights Road West.
Administrator Derus explained that Ms. Hammerstrom came before the board last year. A drainage problem was confirmed and the value was reduced, but it was increased this year by $11,000, with the understanding the drainage would be corrected. There is, however, still a drainage problem. Mrs. Hammerstrom asked further about the property in the area. Derus said the City sees it as a drainage issue with water sitting in the back, and a nearby property which has not established the yard, so that silt will continue to wash on to this property. Zander said the board reduced the land value by $4,000 last year. The land values were put back up to the amount of neighboring properties because it was assumed the corrections had been made. He said he could see there is a detriment to the land value. Council Member Duerr said the issue of the lot that does not have the yard completed should be put on a separate council meeting. Councilors Duerr/Eggert moved the city reduce the land value by $4,000 until the drainage issue is corrected. All voted aye. The motion was carried unanimously.
Milton Olson, Parcel #114-010-002111, Main Street South.
Olson asked a question about consolidating two parcels into one. This was not a question for the board of review. Olson was told he should come to the city offices to talk to the Administrator about that request.
Michael Bruner asked about the percentages values were raised. He was told two to five percent in St Michael. Zander said agricultural value went up, but most land values stayed the same. Zander explained about land schedules used, as well as green acres. He explained about agricultural land and how it is classified and taxed. Assessor Kritzeck explained how the Green Acres classification works.
Craig Shepherd 114-059-004030, 500 Heights Road NW
Shepherd asked for justification for why valuation is increased each year, with an increase of a little over $30,000 on his property in five years. Compared to sales in the neighborhood and comparable houses, he believes his is over-assessed. Zander explained the values of land and buildings and the increases over the last several years. Then he looked at the square footage of the Shepherd house relative to the neighboring houses. Shepherd stated he understood what was being reported, but he did not agree with the increased values. Zander suggested that after a little research he should sit down and discuss with Shepherd market sales. He recommended that this item be continued to the next meeting. Councilors T. Hagerty/Eggert moved to continue consideration of the Craig Shepherd Parcel to the next council meeting. All voted aye.
David Zitur, 114-217-00046, 89 Halsey Avenue NE
David Zitur said he has done some research. He has 1 and ½ lots, which is a bluff parcel, so he has to walk down many steps (73) to get to the lake. He felt his land value was too high. Dale Perkins, a neighbor, was also present and said two houses in the neighborhood sold for less that are on the bluff. Zitur said he believes the bluff lots have been overpriced. Zander said he is not familiar with the properties. They were assessed by the former Frankfort assessor. In 1999 the properties were put on the computer at the rates the computer showed, although they had been held the year before due to the lack of sewer availability. Zander said all the lots in that development are valued at the same rate, whether on the bluff or not. Since he is not familiar with the neighborhood, he did not know at this time if there should be a difference in lot values. Zander said that as an assessor, he would have to agree there could be some adjustments made for such things as the bluff in some cases. Neighbor Dale Perkins also participated in the discussion. Zander said he would have to do a study to make any adjustments on the land. However, it was pointed out that lake values have gone up and that there are some people who would prefer lake property on a bluff. Council Members Eggert/J. Hagerty moved to continue a decision on the David Zitur property to the next meeting. All voted aye.
Dale Perkins, 114-217-000440, 47 Halsey Avenue NE
Perkins asked for his assessment from last year. It was reduced in 1997 and stayed the same in 1998. Perkins said it was reduced for many reasons. He said the cedar siding shrunk, all the doors and windows leak water when it rains from the west, he explained all the problems caused by water leaking, including concrete cracking problems. He said that former County Assessor Gruber and City Assessor Stelmach were out to review previously and that was why it was reduced. He said he has moisture problems and cracking of ceilings and rotting wood. In addition, he said the deck had to be removed due to original improper installation. He itemized all the inadequacies of the house which he alleges he has been unable to repair. He suggested the current assessor come out and view the house. Zander indicated the increase has mostly been in land value. He said the house is graded at fair, which indicates observed physical conditions. Perkins said he could not sell the house because he felt he would have to spend too much to bring it up to code. He said the house is worse than it was two years ago. He also indicated that his is bluff land and the value of the land should be lowered. Zander recommended this matter also be continued so he can view the property. Councilors J. Hagerty/Eggert moved to continue a decision on the Perkins property to the next meeting. All voted aye.
Raymond Eull, 114-500-212200, 8191 – 30th Street NE.
Eull asked for a breakdown as to how his two properties are appraised. Zander gave the break down on the older house and one acre at $62,500, and the newer house and one acre at $152,900. There are other buildings, and land. Zander explained that a house that is rented cannot be homesteaded for tax purposes. Eull asked what would happen if he removed the old house. That building value would be reduced if the house was removed. No action was taken.
Ron Erickson, 114-072-002100, 569 Dogwood Circle NW
Erickson was concerned that his value was not at the level of his VA assessment. Zander said it sometimes takes a while to get to the current value on new homes. Zander went over what is currently shown in the books for the Erickson property. Zander will be reassessing the house and the value will likely be increased. Zander then explained to the homeowner how the assessment is figured. No change was made at this time.
Vernon Hewitt, 114-222-004330 and 114-222-004340, 4850 Mayer Avenue NE
Hewitt said he bought his house for $144,000 and has improved it. He said he thought his assessment is at $163,000. He said the problem is that the inner-structure needs to be replaced – electrical, plumbing, etc. He said it has gone up $19,000 since he bought it, and they are expecting an assessment for sewer and street improvements. He requested the assessor come and take a look at his house because he does not think at the present time it is worth the value that is now on it. Zander said it was viewed in 1997 and there was a 5% reduction previous to this year, which the computer did not have. Zander said he should probably view the house to see what the previous reduction was and whether that should be put back on. Councilors Duerr/Eggert moved to continue the matter to the next meeting. All voted aye.
Tim Sturos, 114-139-002070, 5795 Nelmark Avenue NE.
Sturos wanted to understand how the assessment on the property is done. He said the price of the lot included the septic system, which would account for a difference in the lot value. Zander went over the features of the house and how the values were arrived at. The house was built in 1995, so it is still at 100%. Houses built in 1994 were depreciated at 1%. Zander went over the square footage values with Sturos. The house is valued at $112,500 and the lot at $30,000. Zander said the Sturos house is shown as a higher square foot value than some of the other houses in the neighborhood. Zander said it appears his house is probably classified wrong and if it were reclassified, the difference would be approximately $7,588, which would bring it back into what it should have been. Zander said he had been to the house and left a card, but did not receive a call back. Zander recommended the house be reclassified to be comparable to the others in the neighborhood, a reduction of $7,600 on the house, which would bring it back to $134,900, and take care of a clerical error on the computer. Councilors Duerr/T. Hagerty moved to reclassify the property to a 7-1/2 to correct a computer error, which would reduce the value from $142,500 to $134,900. All voted aye.
Letita Dick, 114-500-123319 and 114-500-123318, Main Street North - Two parcels. Since the Dicks sold their business, the second parcel should be homesteaded and is listed as non-homesteaded now, although in this case it will not make a difference on the taxes. When the form is signed, the property will be reclassified as homesteaded. No action required by the council.
Brett Wieker, 114-142-001010, 5640 Parnell Avenue NE. Weiker bought the property for $356,700. The valuation on it is at $450,700. There are some damages that will be repaired which will bring the value up. Zander suggested changing is to $364,800, and Wieker agreed. Councilors T. Hagerty/Duerr moved to decrease the valuation on the Wieker property from $450,700 to $364,800. All aye.
Jason Erickson, 114-236-006010, 9324 – 9th Street NE in Frankfort Hills.
Zander reported that Erickson has an unfinished main level. The computer showed it as completely finished. He recommended reducing the value from $147,800 to $134,400, a 5% increase over 1998. Council Members Eggert/J. Hagerty moved to decrease the Erickson value from $147,800 to $134,400, as recommended. All voted aye.
Steve Pung, 114-112-002080, 5900 Naughtor Avenue NE
Zander said this is a one story house on a slab, and therefore he recommended changing the grade to 5.5, which would reduce the value from $151,400 to $133,900. Council Members Duerr/T. Hagerty moved to decrease the value of the Pung property from $151,400 to $133,900. All voted aye.
Larry Hanf, 114-222-006080, 4879 Mayelin Avenue NE. Zander said the garage was listed twice on the computer, a keying error, so it was reduced to $121,700 from $130,500. Council Members Duerr/J. Hagerty moved to reduce the Hanf property from $130,500 to $121,700 to correct a computer error. All voted aye.
Jim Ripplinger, 114-800-052103, Zander viewed the property and reduced a building listed as a machine shed to a hog barn. He recommended reducing the property from $179,200 to $174,100. Councilors T. Hagerty/Eggert moved to reduce the Ripplinger property from $179,200 to $174,100, as recommended. All voted aye.
Earl Dixon, 114-500-323400, Zander viewed this property. Her said there were a number of buildings that were torn down after storm damage. The buildings and property were remeasured. The value on the storm damaged buildings was recommended to be reduced from $219,000 to $210,500. Councilman J. Hagerty moved and Mayor Kessler seconded the motion to reduce the Dixon property from $219,000 to $210,500, as recommended. All voted aye.
Steve Panuska, 114-500-091200, 4760 Iffert Avenue NE. A pole garage value was changed from $11,707 to $6,320; however, a deck had also been added, so Assessor Zander recommended changing the total property value from $171,300 to $167,900. Councilors Duerr/T. Hagerty moved to reduce the Panuska property value from $171,300 to $167,900, as recommended. All voted aye.
Frank Daigle sent a letter to the city asking that values be reduced on ten lots in Crow River Highlands first and second additions. Six of the ten lots were already reduced to $6,000 as follows: 114-133-001100; 114-140-001050; 114-140-001230; 114-140-002060; 114-140-002070 and 114-140-002110. The other four are still on at 90% of full value. Of those four Block 1, Lot 5, (114-140-001040) has been confirmed by Metro West as having been turned down for a septic design, and therefore, the city would recommend the value be reduced. Mr. Daigle should be requested t submit documentation on the other three lots from a septic evaluator that those lots are not buildable until City Sewer is available. The remaining three include: 114-133-002040; 114-133-002050; 114-140-001090. Administrator Derus will contact Daigle to request documentation from a septic evaluator that those three are unbuildable. This request will be moved to the next meeting.