Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, November 9, 1993 - 3:30 p.m.

Members present: Kulas, Johnson, Shores.

1. Applications for 3-year remodeling exemption:
a) 706 Reeves Drive
Mel Carsen, city assessor, reported that the improvements qualify for the exemption for 1992, 1993 and 1994, and recommended approval. Moved by Shores and Johnson that the application be approved. Motion carried.

b) 315 Hamline Street
Mr. Carsen reported remodeling work stated in 1992 and finished in 1993, exemption period would be 1993, 1994 and 1995, and that improvements qualify. Moved by Johnson and Shores that the application be approved. Motion carried.

2. Applications for abatement of taxes:
a) 706 Reeves Drive
Mr. Carsen reported that this property qualified for remodeling exemption, that the only way to reduce assessment for 1992 and 1993 is through abatement process; that this will reduce the assessed value by $12,900 for those years, and recommended approval. Moved by Shores and Johnson that the application be approved and the assessed value be reduced by $12,900 for 1992 and 1993. Motion carried.

b) 315 Hamline Street
Mr. Carsen reported that this property qualified for remodeling exemption for 1993, that the only way to reduce assessment is through abatement process; that this will reduce assessed value by $3,000, and recommended approval. Moved by Johnson and Shores that the application be approved, and the assessed valuation for 1993 be reduced by $3,000. Motion carried.

c) 1217 South 9th Street
Mr. Carsen reported applicant is senior citizen, and because of income qualifies for tax credits for 1991 and 1992, and failed to apply at proper time; that the abatement is necessary to correct 1991 and 1992 assessment, and recommended approval as submitted. He noted that the net general tax credit for 1991 is $921 and $585 for 1992. Moved by Shores and Johnson that the application be approved as submitted. Motion carried.

d) 1913 7th Avenue North
Mr. Carsen reported that the applicant qualifies for senior citizen's tax credit for 1991 and 1992, failed to apply at proper time, everything is in order; would reduce 1991 taxes by $485 and 1992 by $509; and recommended approval. Moved by Johnson and Shores that the application be approved as submitted. Motion carried. Motion carried.

e) 518 Plum Avenue

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November 9, 1993 - Page 2

Mr. Carsen reported that applicant declared legally blind in 1991, and contacted their office recently; law allows exemption for improvements, applicant meets criteria; and he recommended approval. He reported this will reduce assessment for 1992 by $894.00. Moved by Shores and Johnson that the application be approved as submitted. Motion carried.

f) 304 Lincoln Drive.
Mr. Carsen reported that applicant declared legally blind in 1990 and qualifies for 1991, and abatement process needed to remove improvement value for 1991 and 1992; this will reduce tax for 1991 by $774.00 and $745 for 1992; and recommended approval. Moved by Johnson and Shores that the application be approved as submitted. Motion carried.

3. Request by Bob Peabody for review of 1993 assessment on old
Robertson Lumber Co. property.
Mr. Peabody reported he had visited with Mr. Carsen after he completed purchase ($672,300 assessor's value); that he purchased from bankruptcy court at $419,000; that property was on the market for long time and no takers; that price he paid reasonable or they wouldn't have accepted. He also stated that he has removed 3,000 sq.ft. of storage from main building as required by engineering, dedicated street at no cost to the city; that back piece of property does not have sewer or water, that utilities not available until now when he and Mr. Gershman paid for sewer and water; and that City's valuation excessive.

Mr. Carsen stated that at this point council doesn't have authority to change valuation, remedies for changing value now only through abatement of taxes; law says they are to value property, that "...the assessor may not adopt a lower or different standard of value because the same is to serve as a basis of taxation, nor may he adopt as a criterion of value the price at which said property would sell at auction, or at forced sale,....."; that this was bankruptcy sale. He reported he has looked at property twice, property assessed at $786,000 for 1992, and value reduced to $672,000 for 1993. He stated this is long narrow piece of land, 230'x1136 deep (6 acres), and that he has removed any value of land for 20th St R/W - valued 5 acres; that he looked at improvements from income approach and from cost approach, and also reviewed how he arrived at percentage of economic loss because of change in use of building.

The committee informed Mr. Peabody of abatement procedure and suggested he follow that procedure for abatement of taxes. Mr. Carsen also informed Mr. Peabody of procedure for filing of application for exemption of remodeling improvements. No action taken.

4. Change order for Proj. 3812, City Hall expansion.

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November 9, 1993 - Page 3

The committee reviewed change order F-V11 for Gaffaney's which has net increase of $235.00 (including cash drawer for inspection dept., shelving, exchange mayor's chair for Lazy Boy, and deducts for pamphlet for personnel and charge by general contractor to paint damaged walls and doors during moving of furniture). Moved by Shores and Johnson that the change order be approved. Motion carried.

5. Matter of microcomputer/related equipment upgrade proposal.
John Schmisek, deputy city auditor, reviewed proposal for upgrading of equipment to keep City's technology at appropriate level to aid in efficient and effective delivery of services; and with proposal to become City's policy for replacing equipment. He also reported that once establish policy, would evaluate throughout year as priorities may change. Moved by Kulas and Shores that the proposal be and is hereby adopted. Motion carried.

6. Matter of automated utility bill payment.
John Schmisek reviewed proposal re. processing of cash receipts for utility billing; that they are looking for approval to proceed with the automated billing payment at this time, as barcoding and scanning requires higher initial layout of funds; however, they haven't abandoned barcoding and scanning process. He reported they did a survey with 18% in favor of this service; that they are anticipating cost of $1800/mo., which will be divided between the four utility accounts. Moved by Johnson and Shores that we authorize accounting department to go to an automated utility billing payment system. Motion carried.

7. Budget fund transfer requests.
a) Auditing Department - to transfer $1,100.00 to cover expenditures for advertising for balance of the year. Moved by Shores and Johnson to approve the transfer. Motion carried.

b) Personnel Office - to transfer $3,876.00 for temporary help. Moved by Shores and Johnson to approve the transfer of funds. Motion carried. (committee only)

8. Matter of pledged securities.
Mr. Johnson will review securities on deposit in auditor's office prior to council meeting on Monday, November 15.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 11/10/93.