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04-18-2022 Board of AppealApril 18, 2022 A special meeting of the Scandia City Council was held on the above date, in the Community Center Hall of the Scandia Community Center. Mayor Christine Maefsky called the meeting to order at 5:00 p.m. The following were present: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Patti Ray and Mayor Christine Maefsky. Staff present: City Assessor Patrick Poshek, City Administrator Ken Cammilleri, and City Clerk Brenda Eklund. The purpose of the meeting was to conduct the annual Board of Appeal and Equalization for 2022, for taxes payable in 2023. Poshek made opening comments about the assessment process. During the past year and a half, home sales in the metro area greatly exceeded the assessed market value (estimated market value) resulting in an approximately 25% increase to assessed valuations county -wide. Poshek explained that a value increase does not correlate directly to an increase in property taxes. The sales that occurred between October 1, 2020 and September 30, 2021 are used to establish the January 2, 2022 assessed values, during which there were 69 home sales in Scandia. The Council heard information presented by the following property owners who appeared in person. • Rod Negus, 23550 Melanie Trail N., parcel #05.032.20.14.0007 — asked for reduction of the 24% increase to $542,700 based on deferred maintenance and the deteriorated condition of the property, sewer line freeze-up in winter months. • Rod Negus, 23120 Melanie Trail N., parcel #04.032.20.33.0010 — asked for reduction of the 25% increase to $401,600 based on maintenance issues, condition of the house and property. • Michael Schueller, 19203 Layton Avenue N., parcel #30.032.20.44.0013 — asked for reduction from the assessed value of $651,400 based on age and size of the house. • Jordan Schroeder, 18466 Norell Avenue N., parcel #34.032.20.31.0004 — asked for a reduction from the assessed value of $819,300 based on his request to exclude 352 square feet of space above the garage from total living space of the house. • Charles Eginton, owner of 3 seasonal properties at 16950 197th Street N. parcels #30.032.19.13.0010, #30.032.19.13.0035, #30.032.19.13.0007 — asked for a reduction due to no improvements to the property, one lot is unbuildable, his fixed income is making the increased taxes difficult to pay, saying taxes have increased 60% over the past 10 years. • Juliet Carlson, 19280 Parkview Lane, parcel #25.032.20.42.0004 — asked for a reduction from the assessed value of $412,400 saying it's overvalued compared to houses nearby. • Tom and Joanne Benick, 12400 213th Street, parcel #16.032.20.32.0002 — questioned the 42% increase in assessed valuation, saying the house is 20 years old with no updates. No further appeals were heard and the Board deliberated on the requests with the following recommendations: • Rod Negus, 23550 Melanie Trail N., parcel #05.032.20.14.0007. Poshek recommended a reduction due to the septic problems. Motion by Cusick, second by Benson, to reduce the valuation by $28,400 to an assessed valuation of $514,300. Motion carried 5-0 by roll call vote. • Rod Negus, 23120 Melanie Trail N., parcel #04.032.20.33.0010. Poshek explained that he has already discounted the property 5% for the condition of the house. Motion by Benson, April 18, 2022 Scandia City Council Page 2 second by Kronmiller, to make no change to the assessed valuation of $401,600. Motion carried 5-0 by roll call vote. • Michael Schueller, 19203 Layton Avenue N., parcel #30.032.20.44.0013. Poshek explained that he has assessed the property fairly based on its condition. Motion by Kronmiller, second by Cusick, to make no change to the assessed valuation of $651,400. Motion carried 5-0 by roll call vote. • Jordan Schroeder, 18466 Norell Avenue N., parcel #34.032.20.31.0004. Poshek recommended a reduction of $2,200 based on a calculation to remove 352 square feet from assessed living space. Motion by Benson, second by Ray, to lower the valuation by $2,200 to an assessed valuation of $817,100. Motion carried 5-0 by roll call vote. • Charles Eginton, owner of 3 seasonal properties at 16950 197th Street N. parcels #30.032.19.13.0010, #30.032.19.13.0035, #30.032.19.13.0007. Poshek explained that he has assessed the property fairly based on its features. Motion by Kronmiller, second by Cusick, to make no change to the assessed valuations of Eginton's 3 parcels. Motion carried 5-0 by roll call vote. • Juliet Carlson, 19280 Parkview Lane, parcel #25.032.20.42.0004. Poshek stated that the Board could make no change, allowing him to inspect the home in the next few weeks; if he determines the valuation could be lowered, he can make an adjustment with the County Board of Appeal in June. Motion by Kronmiller, second by Ray, to make no change in the assessed valuation of $412,400. Motion carried 5-0 by roll call vote. • Tom and Joanne Benick, 12400 213th Street, parcel #16.032.20.32.0002. Poshek explained that he made an adjustment based on the quality of the interior, saying it had been undervalued up to this year, resulting in the large valuation increase. Poshek said he believes the home is assessed fairly, but the Board could make no change, allowing him to inspect the home in the next few weeks; if he determines the valuation could be lowered, he can make an adjustment with the County Board of Appeal in June. Motion by Benson, second by Ray, to make no change in the assessed valuation. Motion carried 5-0 by roll call vote. Poshek presented his list of maintenance changes to the Council, explaining that Ag Preserves properties must be corrected for clerical errors made at the County. The list below was presented in a spreadsheet for recommendation to correct for clerical errors: Heinisch Trust, Joyce A 02.032.20.34.0002 Heinisch Trust, Joyce A 11.032.20.22.0004 Jones, Rebecca S 06.032.20.11.0001 Arnold, Pamela 07.032.19.31.0001 Nickelson, Loren J & Linda M 19.032.20.14.0001 Vennewitz, Daniel J 23.032.20.31.0001 Vennewitz, Daniel J Jemelka, Bradley W Johnson, Arden J Johnson, Arden J Johnson, Arden J Johnson, Arden J Froiland, Daniel A Froiland, Daniel A Froiland, Daniel A Riverview Estates LLC 23.032.20.42.0004 24.032.20.21.0002 24.032.20.33.0001 25.032.20.21.0002 26.032.20.11.0001 26.032.20.12.0001 24.032.20.34.0008 24.032.20.42.0001 24.032.20.43.0001 24.032.20.44.0001 April 18, 2022 Scandia City Council Page 2 Wilke, Michael F & Linda S 25.032.20.23.0001 Motion by Maefsky, second by Benson, to accept the changes in assessed valuations for Ag Preserve properties to correct clerical errors. Motion carried 5-0 by roll call vote. Poshek reviewed itemized changes to which he lowered valuations after reviewing the properties and correcting for conditions of the properties. Kmetz, Michael A & Tammy D 13.032.20.34.0006 (Classification Change) Smith, Rachel 05.032.20.14.0010 lower valuation by $42,200 Hooley Family Trust, Daniel M & Mary J 06.032.19.31.0015 lower valuation by $35,700 Conlan, Timothy & Wieners, Margaret 06.032.19.34.0016 lower valuation by $118,400 Zauner Trust, Gregory A & Denise H 11.032.20.11.0007 lower valuation by $22,400 Shanklin, Thomas J & Susan G 14.032.20.34.0031 lower valuation by $33,700 Johnson, Margaret B 18.032.19.13.0005 lower valuation by $19,100 Wilkie, Patricia Anna Nielsen 18.032.20.21.0001 lower valuation by $35,400 Broyles, Craig & Dean, Kelley A 20.032.20.14.0002 lower valuation by $52,700 Bailey, Mary E & Philip A 23.032.20.41.0006 lower valuation by $41,400 Bies Jr ETAL, Lawrence R 25.032.20.11.0001 lower valuation by $60,400 Sipola, Lester D & Donna L 26.032.20.12.0006 lower valuation by $30,300 Gorman, Susan R 26.032.20.14.0003 lower valuation by $40,300 Grundtner, Daniel R 29.032.20.14.0027 lower valuation by $20,900 Johnston, Eleanore I 29.032.20.14.0028 lower valuation by $50,900 Krummi, James A 30.032.20.44.0011 lower valuation by $50,500 Heller, Brian & Janet 30.032.20.44.0052 lower valuation by $17,400 Mulvehill, Shannon 30.032.20.44.0055 lower valuation by $30,100 Johnson Trust, Harold E 31.032.20.11.0001 lower valuation by $1,300 Johnson Trust, Harold E 31.032.20.11.0002 lower valuation by $1,300 Johnson Trust, Harold E 31.032.20.11.0004 lower valuation by $1,300 Johnson Trust, Harold E 31.032.20.11.0005 lower valuation by $1,300 Johnson Trust, Harold E 31.032.20.11.0010 lower valuation by $1,700 Johnson Trust, Harold E 31.032.20.11.0011 lower valuation by $1,700 Anderson, Wallace 1 & Jeanette 31.032.20.11.0078 lower valuation by $14,300 Guinee Trust, Bertram T & Carol A 33.032.20.44.0009 lower valuation by $70,100 Johnson, Kirk L & Hough, Kimberly J 30.032.20.44.0012 lower valuation by $72,500 Motion by Benson, second by Ray, to approve all itemized changes as recommended by City Assessor Poshek. Motion carried 5-0 by roll call vote. The Board determined that a continuation meeting would not be required. Ray, seconded by Benson, moved to adjourn the meeting. Motion carried 5-0 by roll call vote. The meeting adjourned at 7:12 p.m. Respectfully submitted, Brenda Eklund City Clerk