City of Grand Forks, North Dakota

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	MINUTES CITY OF GRAND FORKS - BOARD OF EQUALIZATION Tuesday, May 3, 2005 The city council of the city of Grand Forks, North Dakota was called to meet as the Board of Equalization in the council chambers on Tuesday, May 3, 2005 at 7:00 p.m. with President Gershman presiding. Present at roll call were Council Members Hamerlik, Glassheim, Christensen, Kreun, Gershman - 5; absent: Council Members Brooks, Kerian - 2. President Gershman stated that will be a Base rally on Saturday at 10:00 a.m. at the Engelstad Arena and hoped that you show up to show support, Senator Conrad will be here and there is a sign-up sheet in the back for the petition. He explained purpose of the meeting tonight is to receive your protest, and the protest at this stage is nothing more than giving your name, address and phone number, there is a sign-up sheet in the back where you can do that, that they will then forward that protest to the finance committee for review, and will notify you of date and time of the committee meeting and at that meeting should come prepared with supporting information and arguments about your property values, and purpose of the meeting tonight is to get you into the process so can go forward with the finance committee to hear it. Mel Carsen, city assessor, reviewed the City's process - that valuation process starts with an appraisal from one of the appraisers in their office, that the appraisal might have been done last year or several years ago and have aggressive appraisal process where they re-appraise on a rotating basis and between those appraisal interims have to check our values to see how our values stack up against actual sales, and every time a property sells it becomes a statistic of how our equity is and what our level of assessment is on that property. He stated in 2004 they had over 600 residential sales and tested out at 86.6% on residential which means that their values are 86.6% of what they were selling for, the State Board of Equalization mandates that our values have to be between 95% and 105% and every year in August the State Board of Equalization goes over these sales and statistics for each community in each county to see what we have done when we tested out at 86.6% to achieve at least a 95% ratio. He stated his office does a study, neighborhood by neighborhood, and has included a 3-page analysis with a map showing the individual areas; that they study each area separately to determine how much increase that neighborhood should get in order to achieve 97% as a target and those areas showing the highest percentages, one showed a 20%, and 2 just under 20%, and then did random appraisals on selected properties in that neighborhood to see what a new appraisal would generate. He stated that when they have done all of that work then test again to see how they are doing in that 95% to 105%equity, and this year after testing that work, testing out at 95.8%, and .8% above the bottom of the State mandate on residential property. He stated on commercial property they do the same thing, had 34 sales last year and tested out at 97%, there could be no general increase on commercial property because at 97% already and even after seeing that, did several appraisals of commercial property and gained a little on those re-appraisals. He stated he had in his handout a comparable of the taxable values, that the new valuation for the whole city is about $109 million compared to $98 million last year, and is a 10.94% increase from all regions; that about 60% of that is coming from re-evaluation, from re-appraisal or neighborhood factors; the other 40% is coming from new construction, exempt of taxable, etc. President Gershman asked that those who wished to speak and the following spoke re. valuation of property: Allen Whetham, 1007 23rd Avenue South Karen Uhrich, 1703 6th Avenue North Bill Buhler, 5574 Pinehurst Drive Carol Hansen, 1717 12th Avenue North Paul Tenneson, 1718 Dyke Avenue P. Michael Merrill, 2971 Columbine Court Tom Hagness, 1423 11th Avenue South Dale Bergman, 1810 12th Avenue North Maurice Bushaw, 1601 University Avenue Gordon Iseminger, 2429 4th Avenue North. not protesting increase in valuation - he stated he is here to protest part of valuation increase in his home, here to protest what his taxes are not spent for - houses purchased in area and turned into rental housing - more traffic, more noise, lower quality of life, ordinance in place but not enforced and asked what getting for increase) Attached is a listing of individuals and business properties who signed listing protesting the valuation of their properties (Exhibit #1) Council Member Christensen stated the finance committee after determining how many protests they have will develop a letter and suggestions as to what they might bring with them when appear at the hearing before the finance committee, and will start the process the end of next week or the following week during the middle of the week, and suggestion was made that hearings start in late afternoon into the evening. Council Member Christensen stated they are in the process of speaking to other entities, other entities are in the process of preparing their budgets, that we can't speak for them or promise anything that they may or may not do but that the city council is working hard with the staff to develop a reduction as best they can in the mill rate, and will try to do our part - and what hearing is not falling on deaf ears and know there is an issue and trying to address it as best we can - he stated they want to make sure that everybody has an opportunity to present as much information as they want as to why their valuation is in question. Council Member Kreun stated that if you look at the total mills we are 25% of the mill levy that you pay, that each entity (the Park Board, the School District and the County) has the same capability of raising or lowering that mill rate, the City has 127 mills, the School District has 237, the County has 103 and the Park District has 46) and each one is a separate governmental body with elected officials and set their mills like we do, the total amount of mills is 513 and very important that you make these comments to every governmental agency because without their support and without them working with us, won't make a significant difference on your taxes. Council Member Christensen stated the raise in the assessed valuation which is a function of the marketplace and interest rates, that the money that the other taxing entities have available to them because of this assessment, the School District stands to have $2,347,061 of potential income if their mills don't go down; County stands to have an additional $1,101,300; Park District stands to have an additional $451,000; and City stands to have $1,195,000 - it is a collective mill levy and hope next year to have all the other governmental officials sitting up here, we've heard it but as a group try to get the others to lower their mills also. He stated that we are in the process of lowering our mills A gentleman suggested that when they inform people that this does not include specials as a lot of people thought it did - and good way of giving them information. President Gershman stated that they are looking at everything to see where find money to turn back and stated that the mills from the City were 24% and we will reduce the mills, and is important that they showed up tonight because this is a message to us, but important fact for the other entities to see because this is a serious issue. Mr. Buhler asked how citizens can create some sort of initiative that can be placed on the ballot that can go before the citizens of Grand Forks to give them the opportunity to determine what they should be taxed, just like 18 other states have done, 40 other initiatives across this country, and time for us to place before U.S. citizens the initiative to change the tax laws of this community and this state to make it so we can continue to survive and live in this community and raise our children and put our children through college, that we need to talk to legislators and if they are not willing to do it, then we need to get together and create an initiative. President Gershman stated we have answered some questions and heard concerns and are listening, and other entities will be listening too, and appreciates your being here tonight. Mark Mayer, 1431 South 19th Street, also protested his valuation. It was moved by Council Member Christensen and seconded by Council Member Kreun to recess to June 7, 2005. Carried 5 votes affirmative. Alice Fontaine City Clerk