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HomeMy WebLinkAbout8B - Joint Assessment Agreement - Prior Lake and Scott County STAFF AGENDA REPORT DATE: 8B RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF AGREEMENT FOR JOINT ASSESSMENT BETWEEN THE CITY OF PRIOR LAKE AND COUNTY OF SCOTT SEPTEMBER 2, 1997 INTRODUCTION: The purpose of this agenda item is for the City Council to consider renewing the existing agreement with Scott County to provide property assessment services to the City of Prior Lake for the assessment year 1998. Also the Council may wish to consider transferring the annual Board of Review function to Scott County. BACKGROUND: The previous Assessor's Agreement was entered into by the Council on October 7, 1996 for property assessment services covering the calendar year 1997 at a cost of $33,500.00. This cooperative agreement between the City and Scott County has existed since 1972. The current agreement is scheduled to expire on December 31, 1997. DISCUSSION: All other assessment agreements performed by Scott County for cities are on the basis of a per parcel charge. Our new contract is proposed to be renewed annually and uses the per parcel method as well. The proposed amount of $36,825 will cover the cost to establish and update the market values for all properties located within the city of Prior Lake. This amount represents an approximate charge of $6.25/parcel based upon our current parcel count of 5,892. The 10% increase is the result of our total number of parcels increasing plus the fact that our per parcel charge has been increased. We still have one of the lowest rates per parcel in Scott County. The cost is very competitive to our neighboring cities of Savage and Shakopee. The City could not hire a full time appraiser, clerical support and provide office space and equipment as economically as provided in this agreement. With respect to continuing the annual equalization hearing by the City Council, the 1997 Omnibus Tax Bill, Chapter 231 Section 23 allows for the City to transfer its Board of Review powers and duties to the County Board of Equalization. A transfer of duties must be certified to the Assessor's office before December 1 of any year to be effective for the following year's assessment. The transfer may be permanent or for a specified number of years, but the transfer cannot be less than three years. 16200 Eagle Creek Ave. 5.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER In discussing this possibility with Scott County Assessor LeRoy Arnoldi, his preference would be to transfer this function to the County Board of Equalization for administration purposes. The appeals could than be processed more efficiently from an internal standpoint. Some of the pros and cons from the city council and resident perspective are listed below: ~ 1. City Council could more efficiently allocate its time to other matters as one less public hearing would be required. 2. The Council would no longer have to deal with these citizen complaints. Cons: 1. Residents would have to travel to Shakopee to attend the equalization hearing in the Scott County Courthouse. 2. Citizens may perceive that they would receive a more favorable hearing from their councilmembers as opposed to having the county commissioners hear their appeal. RECOMMENDATION: Staff would recommend that the Council approve and authorize the Mayor and City Manager to execute the joint agreement for property assessment within the City of Prior Lake at a cost of $36,825.00 for services rendered in 1998. Also, if the Council's preference is to no longer serve as the Local Board of Review then Staff would suggest that the Council direct Staff to prepare a resolution indicating a transfer that would either be permanent or possibly for a trial period of three years. MOTION REQUIRED: 1J A motion and second to approve Agreement for Joint Assessment Between the City of Prior Lake and the County of Scott and authorize the Mayor and City Manager to execute the agreement on beh f of the City. The Council should also direct the staff to p are a resolution if it wishes to transfer the Board of Review . ction to Scott County. Approved by: Attachment H:\AGENDA\A9707.DOC AGREEMENT FOR JOINT ASSESSMENT BETWEEN THE CITY OF PRIOR LAKE AND THE COUNTY OF SCOTT THIS AGREEMENT is made and entered into by and between the City of Prior Lake and the County of Scott, State of Minnesota, pursuant to Minnesota Statute 273.072 and Minnesota Statute 471.59. WHEREAS, the City of Prior Lake wishes to enter into an agreement with the County of Scott to provide for the assessment of the property in said City of Prior Lake by the County Assessor's office; and WHEREAS, it is the wish of said County to cooperate with said City of Prior Lake to provide for a fair and equitable assessment of property; NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN CONT AINED, IT IS AGREED AS FOLLOWS: 1. That the City of Prior Lake which lies within the County of Scott and constitutes a separate assessment district, shall have its property assessed by the County Assessor of Scott County, for the assessment year 1998. All work done necessary to the establishment of the estimated market value for each parcel shall be performed by the Scott County Assessor or by one or more of the licensed assessors under his direction and supervision. 2. It is hereby agreed that the City of Prior Lake and all of its officers, agents, and employees shall render full cooperation and assistance to said County to facilitate the provision of the services contemplated hereby. 3. In consideration for said assessment services, the City of Prior Lake hereby agrees to pay the County of Scott the sum of$36,825.00, such payment to be made to the County Treasurer on or before July 15, 1998. 4. The County agrees that in each year of this Agreement it shall, by its County Assessor or one or more of his appraisers, view and determine the market value of at least twenty-five percent (25%) of the parcels within this taxing jurisdiction. It is further agreed that the County shall have on file documentation of those parcels physically inspected for each year' of this agreement. 5. It is understood by the parties that, pursuant to Minnesota Statute 273.072, this Agreement for Joint Assessment must be approved by the Commissioner of Revenue, State of Minnesota. IN WITNESS WHEREOF, the City of Prior Lake has executed this agreement by its Mayor and City Administrator by the authority of its governing body and the County of Scott has executed this agreement by its Chairperson, County Administrator, and County Assessor pursuant to the authority of the Board of Commissioners intending to be bound thereby. City of Prior Lake: Mayor Date City Administrator Date City Clerk (if applicable) Date County of Scott: Chairperson County Board of Commissioners Date County Administrator Date Leroy T. Arnoldi, County Assessor Date This agreement is hereby approved by the Commissioner of Revenue, State of Minnesota on this day of ,19_. Commissioner of Revenue, State of Minnesota Approved as to form: Susan K. McNellis, Assistant County Attorney