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Home My WebLink About5H Transfer LBAE to Scott County O� P �� v � 4646 Dakota Street SE Prior Lake, MN 55372 � CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 12, 2013 AGENDA #: 5H PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTED BY: JERILYN ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE TRANSFER OF LOCAL BOARD OF APPEALS AND EQUALIZATION POWERS TO SCOTT COUNTY DISCUSSION: Introduction This item was originally on the October 28, 2013 agenda but was not acted upon because of time constraints. The purpose of this agenda item is for the City Council to consider whether or not they want to continue acting as the Local Board of Appeal and Equalization (LBAE) or to switch to an Open Book format to address property owners' concerns regarding their property valuations. Historv Prior Lake has acted as the LBAE for many years. Scott County cities have the option of conducting their own LBAE or merging with the county in a single meeting (Open Book). Councilmembers discussed these options at the council workshop on September 23, 2013. All Scott County cities except Belle Plaine and Prior Lake have elected to be a part of the County LBAE. Current Circumstances In order to act as the LBAE, the City must be able to provide proof and certify to the County Assessor by December 1St that training requirements have been met. Attached is the memo (Exhibit A) received from the Department of Revenue which addresses the training requirements and proof of compliance. The compliance form must be completed and submitted to the County Assessor by December 1 St to avoid losing the LBAE powers and the meeting automatically being turned over to Scott County for the 2014 appeal season. Councilmember Rick Keeney is the only councilmember that is currently trained on LBAE procedures. His training is effective through July 1, 2015. Other councilmembers have received training in the past but their training is not considered current. Phone 952.447.9800 / Fat 952.447.4245 / www.cityofpriorlake.com Conclusion The Council should consider whether or not they want to continue acting as the LBAE or to have Scott County conduct Open Book meetings. ISSUES: Exhibit B shows the appeal process. All property owners can make informal appeals to the Scott County Assessor's office. If property owners and the Assessor's office cannot resolve or address valuation concerns, the property owners can then proceed to the LBAE or Open Book meeting (depending on which format the local jurisdiction is using). The LBAE is a more formal process by which property owners present their case in a public setting. The Open Book format is a less formal process by which property owners meet one-on-one with Scott County representatives. State Statute 274.01 (subd. 3) describes the process by which local board duties are transferred to the county which includes public notice of the meeting as well as a communication of the transfer of duties to the county assessor, in writing, before December 1 of any year to be effective for the following year's assessment. The transfer of duties to the county may either be permanent or for a specified number of years, provided that the transfer cannot be for less than three years. Its length must be stated in writing. A city may renew its option to transfer. The option to transfer duties under this subdivision is only available to a city whose assessment is done by the county. Scott County is currently providing assessment services for Prior Lake. I The public notice was posted and distributed as required by State Statute 274.01 (subd. 3). FINANCIAL For the past few years, the LBAE meeting was held on a separate night IMPACT: than regular council meetings. In addition, a Council workshop has been held immediately prior to the LBAE meeting. Representatives from Scott County Assessor's office as well as City staff attend both the workshop and the Council meeting. Council members are eligible to receive a$50 per diem for the special council meeting. Costs have therefore been incurred both by the county and city as a result. ALTERNATIVES: 1. Consider approval of a resolution which permanently transfers the Local Board of Appeal and Equalization powers to Scott County; 2. Consider approval of a resolution which transfers the Local Board of Appeal and Equalization powers to Scott County for a specified number of years (no less than the three years minimum allowed); 3. Consider retaining the Local Board of Appeal and Equalization powers. RECOMMENDED Alternative 1. MOTION: 2 o� P � O �P ti � u r� 4646 Dakota Street SE '�IN�so'��' Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION APPROVING THE TRANSFER OF LOCAL BOARD OF APPEAL AND EQUALIZATION POWERS TO SCOTT COUNTY Motion By: Second By: WHEREAS, The City of Prior Lake has acted as the Local Board of Appeal and Equalization for many years; and WHEREAS, State Statute 274.01 (subd. 3) describes the process by which local board duties may be transferred to the county; and WHEREAS, The City meets all of the requirements for transferring the powers to Scott County; and WHEREAS, The transfer of duties to the county may either be permanent or for a specified number of years, provided that the transfer cannot be for less than three years. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The transfer of Local Board of Appeal and Equalization powers to Scott County is permanent. 3. The transfer of Local Board of Appeal and Equalization powers to Scott County is effective with the 2014 assessment year. PASSED AND ADOPTED THIS 12th DAY OF NOVEMBER, 2013. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager � X N�i i� f� `' � " MINNESOTA• REVENUE Memo Date: October 9, 2013 To: All Assessors & Local Jurisdictions From: Information and Education Subject: Local Board of Appeal and Equalization Training Proof of Compliance Minnesota Stat�rtes 274.014 explains the Local Board of Appeal and Equalization training course requirements, what happens when a jurisdiction does.not comply with those requirements, and to whom the board should be providing proof of compliance. The purpose of this memo is to focus on the language in Subdivision 3, Minnesota Statute 274.014, subdivision 3 states: `Any city or town that coyaducts locul boards o,�appeal and eyualization freeetings hcustprovide proof to the county assessor by Decetnber 1, 2006, and each year thereafte�, that it is in compliance with the requi�°ernents of subdivision 2. Begin�zing in 2006, this �zotice rreust also verify tlzut theNe was a quorccni of voting menzbe��s at each meeting of the boarcl of appeal anc� equalization in the cus�rent year� [emphasis addedJ... " As stated in the statute, proof that the training requirements have been met must be provided to the county assessor. In the past, this requirement was being met by submitting the training course attendance rosters to the Property Tax Division, which would then be uploaded to the Deparirnent of Revenue's website so all jurisdictions and counties could verify whether a board had a trained member. It has been brought to our attention that not every jurisdiction is being consistent with reviewing the attendance record before December l Therefore, we have decided to implement a certification document that all local jurisdictions must use and sign. This dociunent must be sent to the county assessor no later than December l of the current year. The document must be signed by the local board clerk/administrator and the county assessor, as well as lcept on file at the county. This requirement only applies to jurisdictions that conduct LBAE meetings, if an open book meeting is the format of the meeting then this form does not need to be completed. If the form is not returned by December l the board of appeal powers will be transferred to the county for the following assessment year. The Property T� Compliance Officer for your county will be reviewing the files annually to verify compliance. This procedure is effective immediately and the first forms should be submitted by December 1, 2013. If you have any questions please contact your Property Tax Compliance Officer or Jessi Glancey by email �essi. 1� ancey�,state.mn.us or by phone at 651-556-6104. MINNESOTA� REVENUE Local Board of Appeal and Equalization Trained Board Member Certification Minnesota Statute 274.014 subdivision 3 states: "Any city or town that cofadaccts locul bourds of appeal and eqicalizution nieetings f��ustprovide proof to the county assessor by Decen�ber l, 2006, and each year thereafter, that it is in compliunce wit)i the requirenzents of subdivision 2. Begilining in 2006, this notice niust alsv verify tliat tl:ere was u quorufra of voting mei�ibe�•s at each nzeeting of the board of appeal and equalization in the cu�•�^efzt yeai° [emphasis addedJ ... " Please select one of the options below and fill in the information that is needed. Upon completion please email or fax the completed form to the county assessor no later than December 1 of the current year. A DOR Property Tax Compliance Officer will be reviewing the files to be sure that all jurisdictions are complying with the submission of these forms by the December l deadline. If the form is not returned by December l the board of appeal powers will be transferred to the county for the following assessment year. Option 1: As of December 1 of the cun�ent year, has verified that at (7urisdiction Name: ex — City of RiceBear Twp) least one board member has attended the Board of Appeal and Equalization training in the past four years. (Name of one trained board member) (Training expiration date) Option 2: As of December 1 of the current year, will not have a (Jurisdiction Name: ex — City of RiceBear Twp) trained board member thet we understand that under Minnesota Statute 274.014 subdivision 3 the jurisdiction will lose its board of appeal and equalization powers beginning with the following year's assessment. The board of appeal powers will be transferred to the county until a resolution and proof of training are provided to the county assessor. (Jc�risdictiois Clerk/Admin Signature) Date (Coe�nty Assessor� Signatc��•e) Date � � W � _ c6 > > � L � � � N � � � � O N O Q � a-+ N N � Q � tn Q N U � � L tn O � � � . tl� � -' � �, : m � �, � W � � -� � � t!� X � �' �c'> Q � J� � 0 a. � X L- V C `�- = a�° ° � W� � O , , �- � � � � -i n. � a' � -�-� - a v� _ L ° �, " a .�, � �� G o N o � ; � � �� C�a� �m°' ac > a °' �- c � � � � ��' � a � 0 � v � ' � � .� � � N � O U � � � Uj � . � � Z f� N N 4 � 4 � � Z N N N �., � � = C � � -;F cn (!S � �. ":� O � � O L � .� v� 'Oa Q �' � W m � Q Z L W �° a �. O �' � � a� J � � ■ ■ o`� P � O �P ti � v �' 4646 Dakota Street SE Prior Lake, MN 55372 ` � r NNES�� P Special Notice Rec�uirement Notice is hereby given that The Prior Lake City Council will meet Tuesday, November 12, 2013 7:00 p.m. Council Chambers Prior Lake City Hall, Prior Lake, MN 55372 The transfer of the Local Board of Appeal and Equalization powers to Scott County will be considered at this regular council meeting. These meetings are open to the public. Special notice is posted in compliance with State Statute 13D.04 (Subd.2) Phone 952.447.9800 / Faac 952.447.4245 / wwtiv.cityofpriorlake.com