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MINUTES/FINANCE COMMITTEE
Thursday, May 25, 1995 - 4:00 p.m.

Members present: Carpenter, Babinchak, Geller, McCabe.

1. Protest of assessor's 1995 valuation of property:
Mel Carsen, city assessor, reported that his office sent notice and comparison sheets to all property owners on today's schedule.

a) Mae Heggar, 2221 7th Avenue North
Mrs. Heggar was present. Mr. Carsen reported that the valuation on this property increased for 1995 by a 10% neighbor-hood factor, to $79,000; that since the protest they inspected the property and made a new appraisal using cost approach which indicates a value of $81,500 and market approach which indicates a value range from $78,200 to $87,400,

Mrs. Heggar stated she was protesting amount of increase in one year, and that comparables not in her immediate neighborhood. Mr. Carsen stated they look for comparable houses as close to property and as near as possible; and adjust for location, etc. Mr. Carsen reported that the property was assessed in 1991 at $71,900, 1992 at $68,400, 1993 and 1994 at $71,800, and property received 10% increase for 1995; and that increase probably combination of a couple years and that they compare values to 1994 sales. He also noted that sales 13-14% higher than values in that neighborhood.

Carpenter stated that City is required by law to value at fair market value; and that council during budgeting process will look to reduce mill levy to try to keep taxes down.

Moved by Babinchak and Geller to uphold the assessor's valuation of $79,000. Motion carried.

b) Maynard Hanson, 411 North 25th Street
Mr. Hanson did not appear; and Mr. Carsen reported that Mr. Hanson had withdrawn his protest. Moved by Babinchak and Geller to uphold the assessor's value of $68,900.00. Motion carried.

c) Glayde Cory, 701 North 25th Street
Mr. Cory did not appear. Mr. Carsen reported this property received 10% increase in value for 1995 through neighborhood factor, to $58,700. Moved by Babinchak and McCabe to uphold the assessor's value of $58,700. Motion carried.

d) Steve Reller, 616 Maple Avenue
Mr. Reller did not appear. Mr. Carsen reported this property was increased for 1995 by a 3% neighborhood factor, and $8,000 for improvements (new siding, shingles and furnace) to $88,300. He also reported that this property qualifies for a 3-year remodeling exemption, but property owner has not filed
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application for that exemption (forms have been provided to the property owner). Moved by Geller and Babinchak to remove cost for remodeling and reduce the value from $88,300 to $80,300 provided that he files a 3-year remodeling exemption application. Motion carried.

g) Ernest Byzewski, 845 South 24th Street
Mr. Byzewski was present, and stated that the lot depreciates value of the property, that his house 18" lower than adjacent house, and 3-4' lower than property to the back, those properties drain onto his property (this is a corner lot); that when it rains hard he gets water from 7th Ave. to his corner from Westward Drive (gets drainage from four directions) and debris from street ends up in his yard after hard rains. He also noted that in 1979 flood he had 6" water on main floor, and damage to basement walls (house jacked up and two walls replaced; walls now cracked entire length of house - in seam of the blocks). He stated that lot should be depreciated by $1,000 because of slope.

Mr. Carsen stated that this lot is lower than lot to the east, lot should drain to the side street; and that proper landscaping would divert that problem.

Moved by Carpenter and Geller to recommend to reduce the assessor's valuation from $85,400 to $84,400. Motion carried.

m) Gary Johnson, 3598 15th Avenue South
Mr. Johnson was present. Mr. Carsen stated that construc- tion of house started in 1993, 40% complete in 1994, and Mr. Johnson has not allowed assessor's to inspect property, have not tried to gouge anyone, but priced way they see. He also stated that there is not requirement that would force property owner to allow them in if he does not want to. Mr. Carsen also stated that the 1995 value of the property is $168,900 and property is receiving the $50,000 exemption given to new construction.

Mr. Johnson stated this is a nice house but not worth $245,000 based on comparables in neighborhood (and submitted copies of comparables he had made); that assessing off on its measurements.
He stated appraisal made by assessors, got notice he would get $50,000 exemption and true and full value $49,400; however, in December when received tax statement value $99,400 with $50,000 already deducted; that adjacent property behind him (also under construction) assessed for vacant lot; that he is not satisfied with appraisal done by assessing and way of assessing; that property not worth $245,000.

There was some discussion re. difference in sq. footage of property. Mr. Geller stated there are two issues: sq. footage, and price per sq. ft. for his house compared to other houses in that area; that there is only one way to resolve, getting
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measurements of the house.

Mr. Johnson stated his gripes were - way assessor's do appraisal and do notes, and mis-assessment done in the past.

The committee suggested to Mr. Johnson that he allow the assessor to make measurement of house in order to resolve this. Moved by Geller and McCabe to table this matter to next Tuesday, May 30 at 4:30 p.m.; that in interim would hope they can resolve. Motion carried. Mr. Johnson asked that Mr. Carsen be at his house at 8:30. a.m. Friday morning.

j) Lynda Madsen, 3804 Fairview Drive
Ms. Madsen was present. This property received a 9% increase in value through neighborhood factor, to $192,800; that since protest property was inspected and new appraisal made. Mr. Carsen stated that they are recommending a reduction in the assessed value. Ms. Madsen stated she was in agreement with that recommendation. Moved by Babinchak and McCabe to reduce assessor's value for 1995 from $192,800 to $183,600. Motion carried.

i) John LaDuke, 516 39th Avenue South
Mr. LaDuke was present. Mr. Carsen reported this property received 9% increase in value through neighborhood factor, to $145,800; that they inspected property and made new appraisal using cost approach and market approaches which support their value, and asked that value be upheld.

Mr. LaDuke stated that main point of his protest is that property increased in value over past three years by 25%. He stated that adj. property didn't have same increase rate as he did, doesn't agree with 9% increase, willing to accept 6% increase. The committee noted that the issue is what is value of the property, not percentage of increase.

Moved by Geller and Babinchak to uphold assessor's value of $145,800. Motion carried.

k) Twyla Tunseth, 3298 Desert Star Lane
Mrs. Tunseth was present. Mr. Carsen reported that they repriced every house in this addition; that land and improvements were repriced on their current manual to $160,800 for 1995 (1994 value was $142,500); that since protest they inspected property and made a new appraisal using cost approach which indicates a value of $160,800 and market approach which indicates a value range from $161,000 to $168,000.

Mrs. Tunseth stated their property increased $32,000 in two years from $129,00 to $142,000 to $160,800; and they have done nothing more to the property. She stated they built house themselves,
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haven't finished (deck and basement unfinished as well as one bathroom); and feels property valued too high. She questioned if they would increase value again when they finish deck, etc.

Moved by McCabe and Babinchak to uphold assessor's value of $160,800. Motion carried.

McCabe out.

l) Richard Klockmann, 1327 Walnut Street
Mr. Klockmann was present. Mr. Carsen reported that Mr. Klockmann has stated he is willing to accept assessor's value; that some of his questions have been answered in listening to discussion of other protests. Moved by Geller and Babinchak to uphold the assessor's value of $66,300. Motion carried.

e) John Cowger, 121 8th Avenue South
Mr. Cowger did not appear. Mr. Carsen reported this property received a 3% increase through neighborhood factor, and also received increase because of expiration of 3-year remodeling exemption, property valued at $119,000. Moved by Babinchak and Geller to uphold the assessor's value of $119,000. Motion carried.

f) Dennis Feist, 714 4th Avenue North
Mr. Feist did not appear. Mr. Carsen reported this property increased in value for 1995 by a 10% neighborhood factor, to $36,300; that since protest they inspected property and made a new appraisal. He stated that the cost approach indicates a value of $39,400 and market approach indicates a value range from $35,900 to $38,000. Moved by Geller and Babinchak to uphold the assessor's value of $36,300. Motion carried.

h) Viola Steers, 1915 21st Avenue South
Ms. Steers did not appear. Mr. Carsen reported that Ms. Steers wanted to withdraw her protest. Moved by Babinchak and Geller to uphold the assessor's value of $68,500. Motion carried.

n) Keith W. Hill, 502 34th Avenue South
Mr. Hill did not appear. Mr. Carsen reported that Mrs. Hill had called and wanted to withdraw their protest. Moved by Geller and Babinchak to uphold the assessor's value of $68,500. Motion carried.

Protests withdrawn:
1) Arloe Erickson, 2699 South 19th Street
2) Joe and Connie Gerszewski, 4209 Cottonwood Street
3) Mark Peterson, 826 South 24th Street
4) Rick Weber, 3603 Chestnut Street
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Moved by Babinchak and Geller to uphold assessor's 1995 values on properties where protests withdrawn. Motion carried.

The committee adjourned to 4:00 p.m. on Tuesday, May 30, 1995.
(The meeting adjourned at 6:05 p.m.)

Alice Fontaine
City Clerk

Dated: 5/26/95