Committee Minutes

Minutes of the Grand Forks City Council/Board of Equalization
Monday, May 22, 2006 - 6:15 p.m._________________________

The city council of the city of Grand Forks, ND was called to meet as the Board of Equalization in the council chambers on Monday, May 22, 2006 at 6:15 p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Hamerlik, Gershman, Christensen, Kreun - 5; absent: Council Member Glassheim - 1.

CONSIDERATION OF PROTEST OF ASSESSOR'S
2006 VALUES

Mel Carsen, city assessor, reported that his recommendations were included in the packet on each of the protests. Mayor Brown asked if there was anyone present who wished to address the Board of Equalization.

Jay See, 504 South 4th Street, stated that he had purchased the house last summer and that David Whitcomb who is buying into the house has compiled some numbers for the last few years.

Mr. Whitcomb presented some numbers he had received, looked at about six houses in the neighborhood giving assessment values for 2004, 2005 and 2006 and these houses are currently in the range of $161,800 to $259,000; and shows from 2004 to 2005 the increase in these percentages went from 1.41% for his address to high of 19.6% for 621 S. 5th Street, and for
2005 and 2006 change ranged from 1.88% to a high of 28.12% for his property with assessment of $166,300, and they felt the 28% was too high. He noted there is an area of revitalization but house is over 100 years old, drafty house that needs new windows, driveway and sidewalk are in need of repair, empty lots next to them that there are questions about what is going to happen with those once the dike is finished, and water plant across the street has a fence going up that they were concerned about what that is going to do to the property values in the area.

COUNCIL MEMBER KERIAN REPORTED PRESENT

He stated its not so much the value of the assessed property but it is the great increase; and if their property value were to increase at the rate of the highest of adjacent property this year, that would bring it to $158,300 compared to $166,300, and would be much more in line for trying to get new homeowners in the area.

Mr. Carsen reported that the homes in this area were in a reappraisal area, being reappraised for the last two years, and looked at most of the homes to make the 2005 assessment, so there are varying percentage of increase based on those reappraisals, finished that reappraisal in 2006 assessment, this property is one of the highest, 28% increase, and currently have a value of $166,300 and that this property did sell in 2005 for about $179,000, and that their assessment is $14,000 below the sale price.

Mr. Whitcomb stated that houses in the neighborhood are being assessed for less than the sale prices. It was noted that the City tries to be within 95% of the market and are under market here.

Council Member Christensen stated that the fair market value is willing buyer, willing seller, and that they were deemed to be a willing buyer because you agreed to pay $179,000 for that property and the best evidence of value is what they paid for the house and bought the house in 2005, and if assessing was to be consistent with that price. Mr. Whitcomb stated they looked at many houses in 2005 where the assessed value was about 60% of the asking price of the home. Mr. Carsen stated that they reappraise a certain number of houses every year and they ones they don't reappraise are indexed based on market indicators.

Council Member Hamerlik stated that while North Dakota doesn't have a maximum increase for evaluations or the amount of taxes, that is being considered by some legislators and recently he was at a meeting of League of Cities for legislative concerns and brought that up, but need to be thinking about the caps because there are a lot of people that are concerned about increases, and if we don't adhere to within 5% of the 100%, the State will come in here and do it for us.

Council Member Hamerlik moved that we accept the recommendations of the city assessor (document attached); Council Member Brooks seconded the motion.

Council Member Hamerlik asked if those who protested their appraisal were contacted. Mr. Carsen stated they offered to look at each property individually, all but two accepted, and that they made a new appraisal and the new appraisal was compared against their current assessment and if showed it should be reduced, that was their recommendation.

Kathy Sacchetti, 1127 South 12th Street, asked if written notification of change in assessed valuation would be sent to property owners. Mr. Carsen reported that after this Board concludes there will be a letter to each individual property owner stating what the Board did. It was noted that of the 17 protests received, 8 were reduced.

Upon call for the question on the motion and upon voice vote, the motion carried 6 votes affirmative.

CERTIFY ASSESSMENT TO COUNTY AUDITOR

It was moved by Council Member Brooks and seconded by Council Member Gershman that the tax rolls as presented by the city assessor and equalized by the Board of Equalization are certified to the county auditor, Grand Forks County, north Dakota.

Upon roll call the following voted "aye": Council Member Brooks, Hamerlik, Gershman, Christensen, Kerian, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried and the assessments certified.

ADJOURN

It was moved by Council member Hamerlik and seconded by Council Member Gershman that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor