HomeMy WebLinkAbout5H Assessing Services Agreement with Scott County Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: AUGUST 20, 2019
AGENDA #: 5H
PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR
PRESENTED BY: MICHAEL PLANTE
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING A JOINT
POWERS AGREEMENT FOR ASSESSMENT OF THE CITY OF PRIOR
LAKE FOR ASSESSMENT YEARS 2020 -2022
GOAL AREA
AND
OBJECTIVE:
High-Value City Services
3. Ensure sufficient resources and staffing to meet service demands.
High-Value City Services
5. Grow collaborations to provide efficient and cost-effective services
to the community.
DISCUSSION: Introduction
History
Prior Lake has never elected to have its own municipal assessing
department since this function can be more cost effectively delivered by
contracting with the County.
The current agreement (attached to this report) was entered into by the
Council on November 12, 2016 for property assessment services covering
calendar years 2018 and 2019. This cooperative agreement between the
City and Scott County has existed since 1972. The current agreement is
9scheduled to expire on December 31, 2019.
Assessment service costs for the current service contract as well as the
past three years are shown in the following table:
Year Cost
2015 $150,000
2016 $167,500
2017 $185,000
2018 $192,400
2019 $200,100
Current Circumstances
A proposal for providing property assessment services covering calendar
years 2020-2022 is attached to this agenda report.
A copy of a letter received from Michael Thompson, Scott County Taxation
Department Manager, details the proposed change in costs associated with
performing assessment services. The proposed costs for Prior Lake are
$214,200, $220,600 and $227,200 for 2020, 2021 and 2022 respectively.
Per Michael Thompson, Scott County Taxation Department Manager, his
department has reviewed parcel growth over the past couple of years. As
mentioned in the letter included with the proposed contract, he looked at the
increased workloads in the form of added parcels due to new plats and
annexations. This impacted year one of the proposal, for Prior Lake more
so than most jurisdictions, because of the significant growth that has
occurred over the past couple of years. This resulted in a 7% increase in
the proposed contract for 2020. Increases for the subsequent assessment
years, 2021 and 2022 are proposed at 3%.
The following chart shows some of the local City Assessor budgets as
compared to the proposed contract amount. The data was compiled by
Scott County and the source is the individual city’s annual budget
document. The proposed 2020 cost for the City of Prior Lake of $214,200
does not account for all the assessing costs for Prior Lake. Per Mr.
Thompson, the County does not bill back 100% of the expenses. They bill
back about 70% of the costs.
Annual
Budget
Budget
Year
Taxable
Parcels
$/Parcel
Minneapolis $6,148,000 2019 122,861 $50.04
Bloomington $1,921,530 2019 31,045 $61.89
Maple Grove $1,224,400 2019 26,546 $46.12
Eden Prairie $1,049,144 2019 22,659 $46.30
Edina $1,042,287 2019 21,286 $48.97
Minnetonka $839,200 2019 20,804 $40.34
Prior Lake $214,200 2020 10,440 $20.52
Conclusion
The Council should determine if it believes that contracting with the County
continues to be the best way to accomplish statutorily required valuations.
ISSUES: The operation of an assessing department would be well in excess of the
annual contract cost from Scott County.
The average assessment cost per parcel in those cities surveyed above
equals $48.94 The lowest cost is the City of Minnetonka at $40.34 per
parcel. Prior Lake has about 10,440 parcels. The reason Prior Lake’s fee is
less than the $21 per parcel is that 100% of the costs are not billed. As
mentioned above, Scotty County bills back about 70% of the cost.
With all Scott County cities receiving assessment services through the
County there is greater consistency in the treatment of properties vs
contracting the service with another County or provider. Scott Count also
has the experience and expertise required to conduct the property
valuations.
FINANCIAL
IMPACT:
The following table reflects the agreement being proposed by Scott County
for the City of Prior Lake:
Year Original
Amount
Amount of
Change
from Prior
Year
Percentage
Change
from Prior
Year
2020 $ 214,200 $14,100 7%
2021 $ 220,600 $ 6,400 3%
2022 $ 227,200 $ 6,400 3%
ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a
Resolution Authorizing the Joint Powers Agreement for Assessment
of the City of Prior Lake for Years 2020-2022.
2. Motion and second to remove the claims list from the consent
agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative 1.
ATTACHMENTS:
1. Resolution
2. Letter from Michael Thompson/Scott County Taxation Department
Manager
3. Assessing Agreement for Years 2020-2022.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 19-xxx
A RESOLUTION AUTHORIZING THE JOINT POWERS AGREEMENT BETWEEN SCOTT
COUNTY AND THE CITY OF PRIOR LAKE FOR ASSESSMENT SERVICES
Motion By: Second By:
WHEREAS, Since 1972, the City has contracted with Scott County to provide assessment
services within the City; and
WHEREAS, The City has determined that because of the experience and expertise required to
conduct property valuations and the number and cost of employees necessary if
the City were to undertake property assessments that it is most cost-effective for
the City to contract with Scott County to receive assessment services; and
WHEREAS, The City of Prior Lake desires to continue the Assessment Agreement.
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 City of Prior Lake hereby approves the contract for Scott County to provide the CITY
with assessment services. The cost of the services for 2020, 2021 and 2022 are $214,200,
$220,600 and $227,200 respectively.
3. The Mayor and City Manager are hereby authorized to execute the contract on behalf of the
City of Prior Lake.
PASSED AND ADOPTED THIS 19th DAY OF AUGUST 2019.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager