HomeMy WebLinkAbout2014/04/28 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
APRIL 28, 2014
(Mayor Jacobs & Councilmember Mavity Out)
6:30 p.m. CONVENE LOCAL BOARD OF APPEAL & EQUALIZATION – Council
Chambers
6:45 p.m. CITY COUNCIL STUDY SESSION – Council Chambers
Discussion Items
1. 6:45 p.m. Future Study Session Agenda Planning – May 5 and May 12, 2014
2. 6:50 p.m. Community Education Advisory Council (CEAC)
3. 7:10 p.m. Parks & Recreation Advisory Commission 2013 Annual Report and 2014
Work Plan
4. 7:30 p.m. Update on Community Center Project
5. 8:30 p.m. Southwest LRT Preliminary Design Plans
9:30 p.m. Communications/Meeting Check-In (Verbal)
9:35 p.m. Adjourn
Written Reports
6. March 2014 Monthly Financial Report
7. First Quarter Investment Report (January – March 2014)
8. Nestlé (Novartis) Property Update
9. Dissolution of Minnesota Community Capital Fund (MCCF)
10. Cedar Trails Housing Improvement Area (HIA) - Disbursement of Remaining Funds
11. Update on Community Emergency Response Team (CERT)
12. Update on Outdoor Refrigerated Ice Study
13. Update on 2014/2015 Neighborhood Grants
Auxiliary aids for individuals with disabilities are available upon request.
To make arrangements, please call the Administration Department at
952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting.
Meeting: LBAE
Meeting Date: April 28, 2014
EXECUTIVE SUMMARY
TITLE: 2014 Local Board of Appeal & Equalization (LBAE)
RECOMMENDED ACTION: The Board is asked to convene its first meeting, appoint a chair,
determine the date for reconvening the Board, and undertake other administrative tasks noted
below.
POLICY CONSIDERATION: Local Boards and/or Open Book Meetings are required by law.
The Board must conclude its business within 20 days of convening, this year by May 17, 2014.
SUMMARY: All property owners are entitled to the right of appeal regarding their
classification and market value. The property classification is determined by the actual use of
the property. The market value is based on records maintained for every property and market
conditions as of the date of the assessment (January 2). Minnesota statute requires that all
properties are to be valued at full market value.
In most jurisdictions, and per our historic practice, the Local Board is accomplished in two
meetings. The first meeting is used to convene the Board, set the Board process and announce
that appeals are to be resolved at the reconvened meeting. The second meeting (reconvene) is
used to hear and decide the merit of each appeal. The Local Board process depends on active
participation from all parties involved including the board members, the property owner and
assessing staff. The following Agenda is suggested:
1. Convene the St. Louis Park Local Board of Appeal and Equalization
2. Roll Call of Board Members – Declaration of Quorum
3. Appoint Chair
4. Acknowledgement of Trained Members (Sanger & Mavity)
5. a. Accept Roster of Appellants
b. Call for Any Additions
6. Determination of Date and Time for Continued Proceedings (Reconvene)
… Suggested as May 12, 2014 prior to Study Session …
7. Instruct Assessor to:
a. Inform Appellants of Reconvene Date via Telephone and Mail
b. Re-Inspect and Re-Appraise Parcels Under Appeal
8. Completion of the Local Board Certification Form
9. Recess
FINANCIAL OR BUDGET CONSIDERATION: Not applicable for budgeting from the
perspective of the taxing jurisdictions. Changes made by the Board may affect the property
owner’s share of the total property tax budget levy in the Pay 2015 tax period.
SUPPORTING DOCUMENTS: Summary of Duties & Responsibilities
Sample Letter – To be sent to Each Appellant on April 29
DOR Board Training Handbook
Prepared by: Cory Bultema, City Assessor
Reviewed by: Nancy Deno, Administrative Services Director
Approved by: Tom Harmening, City Manager
LBAE Meeting of April 28, 2014 Page 2
Title: 2014 Local Board of Appeal & Equalization
SUMMARY OF DUTIES AND RESPONSIBILITIES
LOCAL BOARD OF APPEAL AND EQUALIZATION
Most of the responsibilities listed under the Local Board of Appeal and Equalization are
statutory, primarily found in Minnesota Statutes 274.01.
• The first responsibility is attendance. The Local Board of Appeal and Equalization is an
official public meeting similar to a City Council meeting and cannot convene without a
quorum. The local assessor, the county assessor, or one of his/her assistants is required to
attend.
• At least one member must be present at each meeting of the Local Board of Appeal and
Equalization (beginning in 2006) that has attended an appeals and equalization course as
developed and approved by the Commissioner of Revenue. The compliance date is
December 1 of the year prior to the current year’s meeting.
• The valuation notices shall be in writing and be sent by ordinary mail at least ten calendar
days before the meeting of the board. The valuation notice will include the dates, places and
times set for the meetings of the Local Board of Appeal and Equalization as well as the
Hennepin County Board of Appeal and Equalization.
• The meetings must be held between April 1 and May 31 each year, including reconvene
meetings. The County Assessor shall fix a day and time when the Local Board of Appeal
and Equalization shall meet. The board must complete its work and adjourn within 20 days
from the time of convening stated in the notice of the clerk, i.e. calendar days – original night
is day one.
• The clerk shall give published and posted notice of the meeting at least ten days before the
date of the meeting.
• Local Boards of Appeal and Equalization must see that all taxable property is properly
valued and classified for the current assessment year only. The board may consider both real
and personal property, and both estimated and taxable value. Personal property is limited to
mobile homes and their storage sheds, decks and other improvements located in a
manufactured home park, structures on leased public lands and RR operating ROW, and
leased buildings located on land owned by the occupant and used as their homestead.
• If any property has been omitted, the board must correct the assessment by adding it to the
list of assessments along with its market value.
• The board may not increase or decrease by percentage all assessments in a district of a given
class of property. Changes in the aggregate to assessments are by class and are made by the
County Board of Equalization.
• The board may not make an individual market value adjustment or classification change that
would benefit the property in cases where the owner or other person having control over the
property will not permit the assessor to inspect the property and the interior of any buildings
or structures.
LBAE Meeting of April 28, 2014 Page 3
Title: 2014 Local Board of Appeal & Equalization
• Although the Local Board of Appeal and Equalization has the authority to increase or
decrease individual assessments, the total of such adjustment must not reduce the aggregate
assessment by more than one percent. If the total reductions would lower the aggregate
assessment by more than one percent, none of the adjustments may be made. The assessor
shall correct any clerical errors or double assessments discovered by the board without regard
to the one percent limitation.
• The local board does not have the authority to reopen former assessments on which taxes are
due and payable.
• If an assessment was made after the local board meeting or if a taxpayer can establish not
having received the notice of market value at least five days before the meeting, they can
appeal to the County Board of Appeal and Equalization.
• The board may find instances of undervalued properties. The board must notify the owner of
the property that the value is going to be raised. The property owner must have the
opportunity to appear before the board if they so wish.
• The local boards do not have the authority to address exemption issues. Only the county
assessor (and the tax court) has the authority to exempt property. They also have no
jurisdiction over special programs for which an application process is required (Veterans
Market Value Homestead Exclusion, Green Acres, etc.).
• A taxpayer may appear in person, by council, or written communication to present his or her
objection to the board. The focus of the appeal must center on the factors influencing the
estimated market value or classification placed on the property.
• All changes will be entered into the assessment record by the county assessor’s office.
• Before adjourning, the local board should prepare an official list of the changes. The law
requires that the changes be listed on a separate form. All assessments that have been
increased or decreased should be shown as prescribed on the form along with their market
values. The record must be signed and dated by the members of the Local Board of Appeal
and Equalization.
• NEW Administrative Rule from the Department of Revenue beginning with the 2013 Local
Board of Review… The Assessor may not make administrative changes to the valuation or
classification less than 10 days prior to the Board. All contemplated changes should be
brought to the Board for review and approval.
• NEW Administrative Rule from the Department of Revenue beginning with the 2013 Local
Board of Review… Each appeal must be ruled on separately.
• Further reference, attached separately, is provided by the MN Department
of Revenue Board Training Manual (2014 update). This manual gives
considerably greater detail as to the process and role of the Board in the
assessment process.
LBAE Meeting of April 28, 2014 Page 4
Title: 2014 Local Board of Appeal & Equalization
SAMPLE LETTER TO ALL BOARD ROSTER PROPERTIES
Address line 1 April 29, 2014
Address line 2
Address line 3
Re: St. Louis Park Local Board of Appeal & Equalization
Subject Address
Property ID #: xx-xxx-xx-xx-xxxx
Dear :
The Board convened on April 28 and the above-referenced property has been entered onto the
appeal roster. You are receiving both a telephone call and this letter to inform you that the
reconvene date has been scheduled for X:XX pm on May 12, 2014 in the City Hall Council
Chambers located at 5005 Minnetonka Boulevard, St. Louis Park, MN 55416.
Appeals will be heard at this meeting. The following are important for you to know:
If the Assessing staff has not already inspected your property within the last year, they must
complete an interior and exterior inspection to revalue the property. Important: Refusing access
precludes the Board from taking action that would benefit the owner (MN statute 274.01).
Assessing staff will then complete their revaluation and contact you prior to the May 12 meeting
to inform you of their conclusion. This is an important component of the Local Board process.
If the assessing staff and you as the owner can mutually agree to resolve the matter, the
agreement will be reported to the Board… while it is common that that the Board ratifies mutual
agreement, please note that the Board is the decision maker on the issue. This method of
resolution is often preferred by property owners as it is not necessary to speak before the board.
When agreement cannot be reached, the Board hears the case. Past practice has been as follows:
You, as the appellant, are allowed about 5-10 minutes to present information supporting your
value position. The assessing staff, as the respondent, is allowed about 3-5 minutes to present
information and their conclusion. The Board hears the information and decides the market value
and/or classification as of January 2, 2014. The Board has full authority to sustain, increase, or
decrease individual assessments. The Board does not have authority to reopen prior assessments.
The Board does not have authority to change current and past real estate taxes.
The property owner may appear in person, by representative, and/or by written communication
to the Board. As the Assessor, I suggest focusing your appeal on the factors influencing market
value and/or classification of the property as of the assessment date. We strongly recommend
fact based locally competitive market information pertaining directly to your property
(competitive sales, appraisals, etc.). National or regional information, while interesting, may not
necessarily correlate to this specific local market.
The Board appreciates receiving written information before the meeting. The assessing staff
prepares a written report on all parcels under appeal and submits it to the Board prior to the
meeting. If you would like your written documentation to be included in the Board packet,
please provide it to my office by 12:00 Noon on Wednesday May 7 to allow time for copying
LBAE Meeting of April 28, 2014 Page 5
Title: 2014 Local Board of Appeal & Equalization
or scanning. Otherwise, please prepare ten (10) copies of written materials to be brought to the
Board meeting on May 12.
Upon completion of the Local Board, you will be notified via letter of the Board action. If you
do not agree with the Local Board decision, you are eligible to attend the Hennepin County
Board of Appeal & Equalization which convenes in June. An application to appear before the
County Board is required no later than May 21, 2014.
If you have any further questions on the Local Board process, do not hesitate to contact me
directly.
Cory Bultema, City Assessor
Direct Dial 952-924-2536
This handbook was created to satisfy the training requirements of
Minnesota Statutes, sections 274.014 and 274.135.
2014 U p d at e
MINNESOTA ▪ REVENUE
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 6
Table of Contents
Table of Contents
Table of Contents .................................................................................................................................... 2
Introduction .............................................................................................................................................. 1
Purpose of the board ................................................................................................................................................................. 1
Training for Boards of Appeal and Equalization ............................................................................................................... 1
The impetus for the legislation ................................................................................................................................................................. 1
Compliance requirements ......................................................................................................................................................................... 2
Failure to comply ....................................................................................................................................................................................... 2
Role of the board in the assessment process .................................................................................... 3
Market value ............................................................................................................................................................................... 3
Estimated market value ............................................................................................................................................................................. 4
Classification ............................................................................................................................................................................... 4
Split-class property..................................................................................................................................................................................... 5
Overview of the assessment process....................................................................................................................................... 5
Assessor estimates value ........................................................................................................................................................................... 6
Three approaches to value ......................................................................................................................................................................... 7
7
Assessor determines classification ........................................................................................................................................................... 7
Assessor reviews sales ratio ...................................................................................................................................................................... 7
The sales ratio study ................................................................................................................................................................................... 8
Assessor notifies taxpayer ......................................................................................................................................................................... 9
The board meeting .................................................................................................................................................................. 10
Who must attend the meeting - ...............................................................................................................................................................10
Local Boards .............................................................................................................................................................................................10
Meeting dates and times for the local board..........................................................................................................................................10
Who must attend the meeting .................................................................................................................................................................11
County Boards ..........................................................................................................................................................................................11
Meeting dates and times for the county board ......................................................................................................................................11
Documenting board actions ....................................................................................................................................................................11
Required forms for documenting board actions ...................................................................................................................................12
Duties of the board .................................................................................................................................................................. 13
Prohibition on changes within 10 days of local board meeting ..........................................................................................................13
What the board can do .............................................................................................................................................................................13
What the board can’t do ..........................................................................................................................................................................14
Recommendations for board members .............................................................................................................................. 15
Become familiar with sales information prior to board meeting ........................................................................................................15
Duties of the clerk – Local Boards ....................................................................................................................................... 16
Legal and policy reasons for fair and impartial appeal and equalization hearings ................... 16
Legal reasons for fair and impartial local board meetings ............................................................................................. 16
Policy reasons for fair and impartial board meetings...................................................................................................... 17
Board meeting procedures that foster fair and impartial assessment reviews and other
best practices recommendations ................................................................................................... 18
Meeting procedures ................................................................................................................................................................. 18
The board should run the meeting ..........................................................................................................................................................18
Establish ground rules for the meeting ..................................................................................................................................................18
All proceedings must be public ..............................................................................................................................................................19
Make appellants feel comfortable ..........................................................................................................................................................19
Dealing with angry or difficult property owners ..................................................................................................................................19
Hearing appeals ........................................................................................................................................................................................19
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 7
Table of Contents
Review process, not value-reduction process .......................................................................................................................................20
Recess or adjourn .....................................................................................................................................................................................20
Decisions ...................................................................................................................................................................................................20
Appeals must be substantiated by facts .................................................................................................................................................21
Best practices recommendations .......................................................................................................................................... 22
Have appellants call for appointments ...................................................................................................................................................22
Time limits for presenting appeals .........................................................................................................................................................22
Hear all appeals first ................................................................................................................................................................................22
Conducting other business at the board meeting ..................................................................................................................................23
Notifying property owners of decisions ................................................................................................................................................23
Quorum requirements for boards ....................................................................................................... 23
Quorum must be present ....................................................................................................................................................... 23
What constitutes a quorum? ....................................................................................................................................................................23
When a quorum is not present ................................................................................................................................................................24
Arrive on time for the meeting ...............................................................................................................................................................25
Explanations of alternative methods of appeal ................................................................................ 25
Benefits for the property owner ..............................................................................................................................................................25
Benefits for the local board .....................................................................................................................................................................26
Benefits for the county ............................................................................................................................................................................26
Option 1: Transferring assessment and local board duties to the county ...........................................................................................26
Option 2: Transferring local board duties to the county ......................................................................................................................27
Other alternate methods of appeal ...................................................................................................................................... 28
Special Boards of Appeal and Equalization - Local ............................................................................................................................28
Special Board of Appeal and Equalization - County ...........................................................................................................................28
Tax Court ..................................................................................................................................................................................................28
Appendix ................................................................................................................................................. 29
Glossary ..................................................................................................................................................................................... 29
Duties of local and county boards ........................................................................................................................................ 32
How value changes affect taxes ............................................................................................................................................. 32
Recommended format to notify appellants of board decisions ...................................................................................... 34
Local Board of Appeal and Equalization Trained Member Certification Form ...................................................... 35
County Board of Appeal and Equalization Trained Member Certification Form ................................................... 36
Frequently asked questions by board members ............................................................................................................... 37
What is the purpose of the Board of Appeal and Equalization? .........................................................................................................37
On what basis should I make my decisions as a board member? .......................................................................................................37
What options do property owners have if they are not satisfied with the board’s decision? .........................................................37
What factors make up the valuation of property?.................................................................................................................................37
Why do values change? ...........................................................................................................................................................................37
Frequently asked questions by property owners .............................................................................................................. 38
Is it legal for the assessor to increase my value so much in one year? ...............................................................................................38
Why are my taxes so high? .....................................................................................................................................................................38
Will I be taxed out of my home? ............................................................................................................................................................38
Handouts for property owners ............................................................................................................................................. 38
Note: This handbook is designed to provide information to city, town, and county boards or special boards serving as the
Boards of Appeal and Equalization. This handbook mentions local, city and county assessors. The specific responsibilities
of the local, city and county assessor may differ from one jurisdiction to the next. Not all jurisdictions have a local
assessor. For example, counties with a true county assessing system (all assessments are done by the county) will not have
a local assessor. In counties having a city of the first class, the powers and duties of the county assessor within such city
shall be performed by the duly appointed city assessor. In all other cities having a population of 30,000 persons or more,
according to the last federal census (except in counties having a county assessor prior to January 1, 1967), the powers
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 8
Table of Contents
and duties of the county assessor within these cities will be performed by a duly appointed city assessor. The
county assessor will, however, retain the supervisory duties contained in M.S. 273.061, subdivision 8. For
example, the county assessor may provide sales information for the local boards in the entire county, or a city
assessor may be responsible for providing the information for the local board in a city that has an appointed
city assessor. If the board has questions about the division of assessor duties in the jurisdiction, please contact the county
assessor for clarification.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 9
1 Introduction
Introduction
Purpose of the board
The purpose of the Board of Appeal and
Equalization is to provide a fair and objective forum
for property owners to appeal their valuation or
classification. The local board often serves as the
first formal step in the appeals process for taxpayers.
One of the most important duties placed by law upon the
governing body of a township, city, or county is to serve
as the Board of Appeal and Equalization. Effective
actions taken by the board may potentially make a direct
contribution to attaining assessment equality.
The goal of the Board of Appeal and Equalization
should be to attempt to address property owners’ issues
efficiently, fairly and objectively.
Always keep in mind that any changes made by
the board must be substantiated by facts. Any
value reductions must be justified because they
have the effect of shifting the tax burden to other
property in the jurisdiction. Further, any changes
made by the board must meet statutory
guidelines.
Training for Boards of Appeal and Equalization
Legislation enacted in the 2003 and 2008 sessions
requires that there be at least one member at each
meeting of a Board of Appeal and Equalization who has
attended an appeals and equalization course developed
or approved by the Commissioner of Revenue within the
last four years.
Board members have a four-year certification cycle.
They may have also attended additional appeals and
equalization courses as a refresher. This handbook and
the accompanying presentation have been updated to
provide additional useful information to help the local
board members better understand the overall assessment
process and their role within it.
The impetus for the legislation
The legislation was enacted in part as a response to
complaints that were directed to the Governor,
Legislature and Department of Revenue. The legislature
determined that training was needed to address the
procedural shortfalls of some boards. This training will
provide information and education for board members
that will make the process more efficient and result in a
better overall experience for both property owners and
board members.
Training for Local Boards of Appeal and
Equalization is not a new concept. From 1947 to
1979, Local Boards of Appeal and Equalization
(then referred to as local boards of review) were
required by law to attend an instructional meeting at
the county. In 1979, Minnesota Statutes,
Section 273.03, subdivision 1 read as follows:
“The assessors and at least one member of each
local board of review shall meet at the office of
the county auditor on a day to be fixed by the
commissioner of taxation for the purpose of
receiving instructions as to their duties under
the laws of the state.”
While training or instructional meetings may not be
a “new” idea, the 2003 legislature determined that
training for Local Boards of Appeal and
Equalization was necessary to explain and clarify the
role and duties of the board to help ensure that
property owners receive a fair and impartial review
of their valuation and classification. County Boards
were added in 2008.
Does “training” sound familiar?
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 10
2 Introduction
The appeals and equalization course details the
responsibilities, procedures and requirements of the
Board of Appeal and Equalization. The legislation also
requires the Commissioner of Revenue to develop a
handbook to be reviewed during this course. This
handbook includes:
The role of the board in the assessment
process;
Legal and policy reasons for fair and impartial
appeal and equalization hearings;
Meeting procedures that foster fair and
impartial assessment reviews and best
practices recommendations;
Quorum requirements for boards; and
Explanations of alternate methods of appeal.
Compliance requirements
All cities and towns must certify in writing to the
county assessor and all counties must certify in writing
to the Commissioner of Revenue by December 1of each
year that:
At least one voting member at each board meeting
has attended the appeals and equalization course
within the last four years; and
A quorum was present at each board meeting for
that assessment year.
The form that must be completed and returned by
December 1 to the county assessor or
Commissioner of Revenue will be distributed by
the Department of Revenue on an annual basis
(see pages 35 & 36).
Failure to comply
Any city or town that fails to meet the compliance
requirements by December 1of each year is deemed to
transfer its powers to the County Board of Appeal and
Equalization for the following assessment year. The
jurisdiction would lose its local board for one
assessment year at a minimum, until proof of
compliance and a resolution to the County Assessor are
completed.
Any county that fails to provide proof of compliance to
the commissioner of revenue by December 1 is deemed
to transfer its powers to the Special Board of
Equalization for the following assessment year (see
alternate methods of appeal section for more information
on special boards). The county board must appoint the
special board before the following year’s assessment.
A special board of appeal and equalization must also
meet the training requirements of the regular board of
appeal and equalization.
The Notice of Valuation and Classification must notify
property owners when the Board of Appeal and
Equalization for a city or town has been transferred to
the county or for a county has been transferred to a
special board for failure to comply with these
requirements. Instead of a Local Board of Appeal and
Equalization meeting, property owners must be provided
with a procedure for reviewing their assessments, such
as open book meetings, prior to the meeting of the
County Board of Appeal and Equalization. This
alternate review process will take place in April and
May.
A board who fails to meet these requirements may be
reinstated by resolution of the governing body and upon
proof that one of the members of its Board of Appeal and
Equalization has attended the appeals and equalization
course. The resolution and proof must be provided to the
county assessor for cities and towns, and to the
commissioner of revenue for counties by December 1 to
be effective for the following assessment year.
Note: The citation for the appeals and equalization
course and meeting requirements for local boards is
Minnesota Statutes, Section 274.014 and for county
boards is section 274.135.
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Title: 2014 Local Board of Appeal & Equalization Page 11
3 Role of the board in the assessment process
Role of the board in the assessment process
The Board of Appeal and Equalization has the
authority to change the valuation or classification of a
property for the current assessment year. Taxes or
prior year assessments are not within the jurisdiction
of the board.
Any decisions made by the board must be supported
by facts and by Minnesota law. The board must make
informed decisions and ensure all taxpayers are
treated fairly and uniformly.
In order to make an informed decision on the valuation
or classification of a property, it is important to
understand the concepts of valuation and classification.
These two concepts are equally important in the
assessment process. They are both determined on the
assessment date, January 2, each year.
We will look at the definition of market value and
explain how classifications are determined.
Market value
State law requires that all property shall be valued at its
market value (Minnesota Statutes, Section 273.11,
subdivision 1).
Minnesota Statutes, Section 272.03, subdivision 8 defines
“market value” as follows:
“ ‘Market value’ means the usual selling price at the
place where the property to which the term is applied
shall be at the time of assessment; being the price
which could be obtained at a private sale or an
auction sale, if it is determined by the assessor that the
price from the auction sale represents an arm's-length
transaction. The price obtained at a forced sale shall
not be considered.”
Many professional appraiser/assessor organizations
have a more detailed definition of market value. The
elements of these definitions can be used to clarify the
statutory definition.
The definition of market value usually implies the
consummation of a sale as of a specific date under the
following conditions:
The buyer and seller are typically motivated;
Both parties are well informed or well advised and
both are acting in what is considered to be their own
best interest;
A reasonable time is allowed for exposure in the
open market;
Payment is made in cash or its equivalent;
Financing, if any, is on terms generally available
in the community on the specified date and
typical for the property type in its locale; and
The price represents a normal consideration for
the property sold unaffected by special financing
amounts and/or terms, services, fees, costs or
credits incurred in the transaction.
In other words, market value is the price that
would tend to prevail under typical, normal
competitive open market conditions.
1
The price that would tend to prevail under typical,
normal competitive open market conditions.
Market value
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 12
4 Role of the board in the assessment process
Minnesota Statutes, Section 273.11, subdivision 1 further
states:
“In estimating and determining such value, the
assessor shall not adopt a lower or different
standard of value because the same is to serve as a
basis of taxation, nor shall the assessor adopt as a
criterion of value the price for which such property
would sell at a forced sale, or in the aggregate with
all the property in the town or district; but the
assessor shall value each article or description of
property by itself, and at such sum or price as the
assessor believes the same to be fairly worth in
money.”
The law provides that all property must be valued at
market value, not that it may be valued at market value.
This means that factors other than market value issues
(such as personalities or politics) should not affect the
market value determined by the assessor. Non-market
value factors also should not affect the actions of the Board
of Appeal and Equalization.
Estimated market value
The value determined by the assessor as the price the
property would likely sell for on the open market is
called the estimated market value (EMV). This value is
determined on the assessment date, January, 2 of each
year.
The EMV for the current assessment year is the
only value property owners may appeal to the
board, even though taxpayers will also be given a
taxable market value.
Taxable market value
Taxable market value (TMV) is the value that property
taxes are actually based on, after all reductions,
limitations, exemptions, exclusions and deferrals.
There are many programs and provisions in Minnesota
law that allow for a property’s EMV to be different
from its TMV. For example, qualifying veterans who
are disabled receive an exclusion of up to $150,000 or
$300,000 of their property’s EMV. This reduction is
reflected in their TMV.
Other programs and provisions to be aware of include
the Agricultural Property Tax Law (Green Acres), the
Rural Preserve Property Tax Program (effective for the
2011 assessment) and Plat Deferment. If you have
questions about these or any other programs, speak
with your county assessor.
The board cannot change the TMV of a property. The
only value the board has the authority to change is the
EMV for the current year. Changing the EMV may
ultimately change the TMV, but it is important to note
that there can be instances where the board raises or
lowers the EMV, and the TMV remains the same.
Classification
In Minnesota, property is classified according to its
actual use on the assessment date (January 2 of each
year). If the property is not currently being used, it is
classified according to its most probable, highest and
best use.
Property owners do not get to choose how they want
their property to be classified. It is the assessor’s job to
classify property consistent with Minnesota Statutes,
according to its current use or its most probable,
highest and best use.
When determining the most probable, highest and best
use for a property that is not being used, zoning may
be an influencing factor in the classification of the
property; however, it is not the sole factor. Additionally,
all real property that is not improved with a structure must
be classified according to its current use or its highest and
best use permitted under the local zoning ordinance if
The assessor assigns a statutorily-defined
classification to all property based upon the actual
use of the property on January 2 of each year.
Examples of Minnesota property classes include
residential, agricultural, commercial-industrial,
apartment and seasonal residential recreational.
Classification
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5 Role of the local board in the assessment process
there is no identifiable current use. If zoning permits
more than one use, the land must be classified
according to the highest and best use permitted.
If no such zoning ordinance exists, the assessor shall
consider the most likely potential use of the
unimproved land based upon the use of surrounding
land or land in proximity to the unimproved land.
Property classifications are defined in Minnesota
Statutes. Examples of classifications include
residential homestead, residential non-homestead,
apartment, commercial, and agricultural.
The board can change the classification for the current
assessment year of any property which in the board’s
opinion is not properly classified. The classification
must be based on use, and in order for the board to
change the classification, the owner must present
evidence that the property is used in a manner
consistent with the classification he/she is seeking.
The board can only change the classification of a
property to a classification that is permitted by law.
For example, the assessor classifies a property as
residential. The owner seeks the agricultural
classification. In order for the board to change the
classification to agricultural, the owner must prove
that the property is used agriculturally and meets the
statutory requirements of the agricultural class.
It is important to remember that use – not zoning – is the
key factor in determining the classification of a property.
For example, a property owner has a parcel that is used as
an auto repair shop. The assessor has the property
classified as commercial. The property is zoned
agricultural so the owner is seeking the agricultural
classification. Classification is based on use. Since the
property is used as an auto repair shop, it is properly
classified as commercial. Therefore, the board must vote
to uphold the commercial classification.
Split-class property
A property can have more than one property tax
classification if it has more than one use. Such properties
are called split-class properties. If this is the case, the
assessor will classify the different uses accordingly. For
example, when an owner-occupied farm also has a
structure that is used as a commercial repair shop for farm
equipment, the property is split classified agricultural
homestead and commercial.
Overview of the assessment process
The assessment of property – determining the estimated
market value and classification – technically occurs on
January 2 (the assessment date) of each year. The work
and analysis required to make these estimations involves
several months before and after the assessment date,
however.
Most of the field inspections of real estate for the next
assessment begin in the summer and continue through
the fall. For example, assessors will inspect properties
starting in the summer of 2012 for the January 2, 2013
assessment. These inspections are when the assessor
identifies and records the specific characteristics of each
property being reviewed. These characteristics include
square footage, condition of the property and number of
bedrooms, for example. Assessors gather a lot of
information to help them estimate each property’s value
and determine its use for classification purposes. This
field inspection work is completed as the assessment
date nears.
At about this same time, assessors start work on
analyzing sales and other market data in a sales ratio
study to help them estimate values. The sales included in
this sales ratio study should represent a typical open
market. The sales are from October 1 of two years prior
to the assessment year to September 30 of the year prior
to the assessment year. In other words, sales from
October 1, 2011 to September 30, 2012 are included in
the study for the 2013 assessment. The Department of
A principle of appraisal and assessment requiring that
each property be appraised as though it were being
put to its most profitable use (highest possible present
net worth), given probable legal, physical and
financial constraints.
Glossary for Property Appraisal and Assessment,
International Association of Assessing Officers, 1997.
Highest and best use
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6 Role of the board in the assessment process
Revenue, through the State Board of Equalization,
conducts a similar sales ratio study to monitor the work
of the assessors.
Based on the field inspections and sales ratio study, all
taxpayers are notified of their value and classification for
that January 2 assessment date in the spring of each year.
This notification initiates the appeals process that
continues until the middle of June at the local level.
Once the appeal process is complete, the assessor starts
work on the next assessment, and the entire cycle starts
again.
The final value and classification for each property for
each assessment year is used in determining that
property’s taxes in the following year. For example, the
value and classification for the 2013 assessment, once
finalized, is used to determine the taxes paid in 2014.
Assessor estimates value
The assessor determines the approximate selling price
(or EMV) for each taxable parcel based on the
conditions of the market on January 2 of each year.
The assessor is required by law to view each property at
least once every five years. However, even if the
assessor did not physically visit a property for that
assessment year, the property is subject to valuation
changes to reflect market conditions. The assessor is
required to estimate the market value as of January 2 of
each year to reflect current market conditions because
the real estate market is constantly changing –
sometimes dramatically.
When the assessor views the interior of a property,
he/she can make a more accurate assessment and
eliminate any guesswork. The assessor bases his/her
assessment on multiple factors, including size, age,
condition, quality of construction and other features such
as fireplaces.
The assessor compares the property to actual sales of
similar properties in the area to determine the EMV of a
property. In addition to this approach to determining
value, the assessor may also consider the cost to
construct the property or the income generated from the
property. These techniques are often referred to as the
“three approaches to value.”
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7 Role of the local board in the assessment process
The assessor applies one or more of the three approaches
to value in estimating a property’s value:
Sales comparison approach;
Cost approach; and/or
Income approach.
The assessor will consider all approaches to value, but
one approach may be better suited than the others for
estimating the value of a particular property. In some
cases, one or more approaches may not be applicable.
Sales comparison approach: This approach is based on
the reasoning that the value of a property is related to the
sale prices of similar properties in the same market.
Using this approach, the assessor identifies similar
properties that have recently sold and analyzes the
differences between the subject and the comparable
properties. The sale price for each comparable sale is
adjusted to reflect the differences (i.e. the subject
property has three bathrooms and the comparable
property has two bathrooms, so the sale price of the
comparable property is adjusted upward to make it more
similar to the subject property). The assessor then
estimates the value based on the analysis of the
comparable sales.
The sales comparison approach is most applicable when
there is sufficient sales data available for analysis. This
approach is most often used for residential properties. It
is the most common and preferred method for valuing
vacant land when comparable sales data is available.
The sales comparison approach should be supported by
other approaches to value when comparable sales are
limited or unavailable.
Cost approach: This approach is based on the principle
of substitution which means that an informed buyer will
not pay more for a property than it would cost to build
an acceptable substitute with comparable utility.
Using the cost approach, the assessor calculates market
value by estimating the current cost of replacing a
structure with one having comparable utility then
subtracting depreciation and adding in the land’s value.
The cost approach is most reliable when valuing new or
relatively new properties because the depreciation is
minimal. Depreciation is the loss in value of a property,
perhaps due to wear and tear or some other factor.
Estimating the amount of depreciation can be difficult
making the cost approach less reliable when valuing
older properties. The cost approach can be more useful
when valuing structures that are not frequently sold.
Income approach: This approach is based on the
reasoning that the value of the property is directly related
to its ability to produce income. The property value is
measured in relation to anticipated future benefits
derived from ownership of the property.
Using this approach, the assessor reviews income and
expense information for the subject property and
estimates the market value of the property based upon
the income stream projected to be derived from the
property. This approach has limited applicability
because it is only appropriate for income-producing
properties such as commercial, industrial and
apartments. The income approach is the primary
approach for valuing income-producing properties.
Assessor determines classification
Along with estimating the market value of each
property, the assessor must determine the classification,
or use, of each parcel of property. Property
classifications are defined in Minnesota Statutes, and the
assessor classifies the property based on its use as of
January 2 of each year. Examples of classifications
include residential homestead, residential non-
homestead, apartment, commercial and agricultural.
Assessor reviews sales ratio
Assessors analyze the sales in a community in order to
understand local market trends and provide direction in
estimating values. Whenever real estate is sold for more
than $1,000 a certificate of real estate value (CRV) must
be filed in the county in which the property is located.
The assessor uses CRVs to analyze actual sales of
property and to complete sales ratio studies for each
community and for each type of property. The ratio is
determined by dividing the EMV by the sale price. The
assessor uses the sales as guides to estimate what similar
properties would likely sell for on the open market. It is
Three approaches to value
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8 Role of the board in the assessment process
important to remember that one sale, taken by itself,
does not necessarily reflect the actual real estate market
in a jurisdiction.
In addition to the sales ratio study conducted by the
assessor, the Department of Revenue conducts a similar
independent sales ratio study for the jurisdiction to
monitor how close the median ratio is to the required
level of assessment and is used by the State Board of
Equalization. The Department of Revenue’s sales ratio
studies should be the same or similar to the studies
conducted by the assessor.
The sales ratio study is a tool assessors use to help
determine values for properties. The study helps
assessors plan the upcoming assessment and evaluate
the current assessment. If results of the study are not
within acceptable guidelines, the assessor is required by
law to either decrease or increase values so that they
more closely reflect the market.
The sales ratio study period includes sales that have
occurred in a twelve month period. For the January 2,
2013 assessment, the assessor reviews sales that occur
between October 1, 2011 and September 30, 2012. By
design, there is a lag between the sale and when it is
used to help estimate value so it can be verified and
reviewed for accuracy.
The assessor only considers sales that have been verified
as typical and open market. This means the buyer and
seller are typically motivated, both parties are acting in
their own best interests and a reasonable time is allowed
for marketing. According to state law, the assessor must
not use sales that cannot be verified as open market
sales. This means sales between family members, for
example, are not included. This also means that
foreclosure sales are very rarely (if ever) included.
The assessor completes a sales ratio study by gathering
basic data and screening and editing information to
make any adjustments and exclude all sales that do not
represent arm’s-length transactions. The remaining data
is put into an acceptable format for processing (usually
done by computer) and sorted by similar property types
within each city or township (or neighborhood if
possible). Finally, statistics are computed to describe the
information and determine results of the assessor’s
work.
There are numerous calculations in a sales ratio study
that describe the overall levels and quality of the
assessment. An important one is the sales ratio; it shows
the relationship between the EMV and a property’s sale
price. It is the EMV divided by the sales price.
Sale Ratio = EMV
Sale Price
The median sales ratio is the midpoint (middle) of all the
individual ratios that are included for that property type
in that city or township for that study period when they
are put in order.
In Minnesota, this median sales ratio should be between
90% and 105%. This means that when all sales from
that study period for that property type in that city or
township are put in order from smallest to largest ratio,
the middle ratio should be between 90% and 105%.
In Minnesota, six sales of each property type in each
jurisdiction are required to complete a sales ratio study.
In fact, just because a property sells does not mean its
sale price should be its EMV. Assessors look at all sales
in a study to arrive at conclusions and value estimates in
mass. When there are limited sales to study, the assessor
uses other tools, e.g. expanding the time and/or
geographic areas.
The sales ratio study
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Assessor notifies taxpayer
The assessor notifies taxpayers of their values and
classifications each year after they have been estimated
on the assessment date. This notification – the Notice of
Valuation and Classification – must be mailed at least 10
days prior to the Local Board of Appeal and
Equalization meeting or 10 days prior to the open book
meeting (generally, this means that the notices are
mailed in February or March of each year).
At this point, the property owner can appeal the EMV
and/or classification if he/she feels that the property is:
classified improperly;
valued at an amount higher than they could
sell the property for; and/or
valued at a level different from similar
properties in the area.
The property owner should first contact the
assessor’s office to discuss questions or concerns.
Issues often can be resolved at this level. If questions or
concerns are not resolved after talking with the assessor,
formal appeal options are available:
Property owners may appeal to the Local Board of
Appeal and Equalization (some jurisdictions that
have transferred the local board duties to the
county will have open book meetings instead of
local board meetings);
If the property owner is not satisfied with the local
board’s decision (or the outcome of the open book
meeting), he/she may then appeal to the County
Board of Appeal and Equalization; and/or
The property owner may appeal to Tax Court.
The Notice of Valuation and Classification must provide
the property owner with the date, time and location of
the Local and County Boards of Appeal and
Equalization.
Assessor meets with State Board of Equalization
The State Board of Equalization ensures assessors
follow approved appraisal and assessment practices
and reviews the results of the assessors’ work in
estimating values. This board meets in June of every
year. The meeting, and any resulting changes, occurs
only after a review of values and sales ratios and after
discussions with the county assessor, county assessors
in adjacent counties, and the Commissioner of
Revenue.
The Department of Revenue, as the State Board of
Equalization, completes its own sales ratio studies – one
which is very similar to the assessor’s study, plus two
additional studies – to be sure values closely match the
real estate market.
The department has determined that a minimum of six
sales in a jurisdiction are required for the median ratio to
be reflective of actual assessment levels for its studies.
There are some jurisdictions and property types that may
never have enough sales, for example small-town
commercial properties. In these instances, the assessor
and the State Board of Equalization may examine sales
over a protracted period of time or borrow sales from
other similar jurisdictions to help evaluate the
assessment and estimate values.
The State Board of Equalization completes this
verification statewide for each property type and
jurisdiction and can order changes to EMVs if the
assessor’s work does not comply with law and
guidelines. If the study indicates that the median ratio
is below 90 percent or above 105 percent, the
Commissioner of Revenue has the authority to
increase or decrease values to bring about
equalization.
The equalization process is designed not only to
equalize values on a county-, city- and township-wide
basis but also to equalize values across county lines to
ensure a fair valuation process across taxing districts,
county lines and by property type.
State Board orders are usually on a county-, city- or
township-wide basis for a particular classification of
property. All State Board orders must be implemented
by the county, and the changes are made to the current
assessment year.
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The board meeting
Who must attend the meeting -
Local Boards
Per Minnesota Statutes, Section 274.01,
subdivision 1, paragraph (a), the town board of a
town or the council or other governing body of a
city is the Local Board of Appeal and Equalization,
except in the following situations:
Cities whose charters provide for a board of
equalization;
Cities or towns that have transferred their local
board duties to the county (see Chapter 5);
Cities with Special Boards of Appeal and
Equalization appointed by the governing body
(see Chapter 5); or
Cities or towns whose local board duties have
been transferred due to noncompliance with
the training requirements.
When a Local Board of Appeal and Equalization
convenes, a majority of the voting members (quorum)
must be in attendance in order for any valid action to
be taken (see Chapter 4 for more information about
quorum requirements).
The local assessor – when applicable – is required by
law to be present with his/her assessment books and
papers. The local assessor is required to take part in the
proceedings to support his values or recommend a
change, but the local assessor has no vote. He/she should
be prepared to explain how the value was determined,
and in doing so, the assessor should be able to describe
the characteristics of the property, such as: location and
neighborhood, public or private restrictions on the
property, building type and size, quality of construction,
age of the structure, physical condition of the structure,
total number of rooms and total number of bedrooms
and bathrooms, and market conditions, etc.
The local assessor should be knowledgeable about the
local real estate market and the property in the area.
While it is not the goal of the assessor to influence the
board, the assessor should provide factual information to
support the value and classification or to support a
recommended change to a subject property. The local
assessor also should be able to explain how the property
classification was determined.
In addition to the local assessor, the county assessor or
one of his/her assistants is required to attend. The board
should ask the local and/or county assessors to present
any tables that have been prepared, making comparisons
of the current assessments in the district. Either the local
or county assessor is required to have maps and tables
relating particularly to agricultural land values for the
guidance of the Local Board of Appeal and Equalization.
The local board should be prepared to ask the local and
county assessors questions, and assessors should be
prepared to answer questions and provide information
that will assist the board in its deliberations.
Meeting dates and times for the local board
The meeting date and time for the Local Board of
Appeal and Equalization is set by the county assessor.
The county assessor must provide written notice of the
date and time to the city or town clerk by February 15 of
each year. The clerk shall publish and post notice of the
meeting at least 10 days before the date of the meeting.
The Local Board of Appeal and Equalization meeting
must be held between April 1 and May 31 of each year
(unless the provisions of a charter provide otherwise). The
local board must conduct its business and adjourn within
20 days of the date stated in the published notice. Upon
request, the Department of Revenue (at its discretion)
may grant extensions beyond the 20-day time period to da
date no later than May 31.
No changes may be made by the local board after
adjourning. The county assessor also may not make any
changes in valuation or classification that are intended to
correct errors in judgment by the county assessor after
the local board has adjourned. However, the county
assessor may make changes that are clerical in nature or
changes that extend homestead treatment until the tax
extension date for that assessment year. A list of all the
changes made by the local board must be fully
documented and maintained in the assessor’s office and
must be available for review by any person. A copy of
the changes made during this period in those cities or
towns that hold a local board must be sent to the county
board no later than December 31 of the assessment year.
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Who must attend the meeting
County Boards
Per Minnesota Statutes, Section 274.13, subdivision 1,
the county commissioners, with the county auditor, or, if
the auditor cannot be present, the deputy county auditor,
or, if there is no deputy, the court administrator of the
district court, shall form a board for the equalization of
the assessment of the property of the county, including
the property of all cities whose charters provide for a
board of equalization.
When a County Board of Appeal and Equalization
convenes, a majority of the members (quorum) must be
in attendance in order for any valid action to be taken
(see Chapter 4 for more information about quorum
requirements).
The county assessor is required by law to attend the
meeting of the county board of equalization. He/she
takes part in the proceedings to support values and
classifications or to recommend changes to the board but
is not a voting member of the board. The county
assessor investigates and reports on any assessment
ordered by the county board and enters all changes made
by the board in the assessment books.
The county assessor should be prepared to explain how
the value was determined, and in doing so, the assessor
should describe the characteristics of the property, such
as: location and neighborhood; public or private
restrictions on the property; building type and size;
quality of construction; age of the structure; physical
condition of the structure; total number of rooms and
total number of bedrooms and bathrooms; and market
conditions, etc.
The county assessor is knowledgeable about the local
real estate market and the property in the area. He/she
provides factual information to support the value or to
support a recommended change to a subject property.
The county assessor also should explain how the
property classification was determined and why the
classification is appropriate or why it should be changed.
While the County Board of Appeal and Equalization is
in session, the county assessor assists the board in
performing its duties. The assessor shall furnish the
board with all necessary charts, tables, comparisons, and
data which it requires in its deliberations, and shall make
whatever investigations the board may desire.
The county assessor should present any information that
has been prepared, making comparisons of the current
assessments in the county. The county assessor is required
to have maps and tables relating particularly to
agricultural land values for the guidance of the County
Board of Appeal and Equalization.
The board should be prepared to ask the county assessor
questions, and the county assessor should be prepared to
answer questions and provide information that will assist
the board in its deliberations.
Meeting dates and times for the county board
The board may meet on any 10 consecutive meeting
days in June, after the second Friday in June. The actual
meeting dates must be contained on the Notice of
Valuation and Classification mailed to each property
owner in the county.
New legislation resulting from the 2008 session now
allows the board to meet on Saturdays. The legislation
also requires at least one meeting must not end prior to
7:00 pm. Similarly, if the board requires appointments,
some of the available times must extend until at least
7:00 pm. The Saturday meeting may be in lieu of the
extended meeting time requirement.
No action taken by the County Board of Appeal and
Equalization after June 30 is valid, except for corrections
that are clerical in nature or changes that extend
homestead treatment until the tax extension date for that
assessment year. Any such changes made by the
assessor after adjournment must be fully documented
and maintained in a file in the assessor's office and shall
be available for review by any person. A copy of any
changes made by the assessor during this period shall be
sent to the county board no later than December 31 of
the assessment year.
The county auditor shall keep an accurate record of the
proceedings and orders of the board. The record must be
published like other proceedings of county
commissioners. A copy of the published record must be
sent to the commissioner of revenue, with the abstract of
assessment.
Documenting board actions
Before adjourning, the Board of Appeal and Equalization
must prepare an official record of all actions taken by the
board.
This means that the board must prepare an official record
of the proceedings. The record must reflect all board
actions. Therefore, the record must list all:
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12 Role of the board in the assessment process
Assessments of property added to the tax rolls with
the market value for each local boards only;
Appeals brought before the board, indicating the
action taken by the board (including all appeals in
which the board voted “no change”);
All blanket changes (changes to an entire class of
property) county boards only;
Assessments that have been increased or decreased
with the market value for each;
All classification changes; and
All changes that the county assessor brought
to the board for action, indicating the action
taken by the board.
For each meeting, a certification form must be signed and
dated by the members of the board who were present at
the meeting. The certification form must also list the
names and titles of all voting members of the board,
including those who are present and those who are absent,
to verify that the quorum and training requirements were
met. The county assessor is to make all changes ordered
by the board that are authorized by law.
Required forms for documenting board actions
County assessors are required to submit any changes
made by the Local and County Boards of Appeal and
Equalization to the Commissioner of Revenue, along
with a copy of the proceedings of each board. For local
boards, this must be done within 10 working days
following final action of the local board. For county
boards, this must be done within 5 working days of the
final action. The information must be filed in the
manner prescribed by the Commissioner of Revenue
(Minnesota Statutes, Chapter 270C and Section 270C.89
subdivision 1).
In recent years, there has been increasing interest by the
legislature and others in the number of appeals at the
local level and the effect of the changes that were made.
However, because of the manner in which many
counties submit this information, the Department of
Revenue has not been able to respond to requests for this
information. Therefore, we are requiring that the
counties provide the data in a format that is complete,
readable and easily interpreted. Each county will be
required to submit this information in an electronic
format as instructed by the Department of Revenue.
To ensure that the information is consistent from local
jurisdiction to local jurisdiction and from county to
county, the Department of Revenue requires that each
board complete the following two forms for each
meeting:
Board of Appeal and Equalization Certification
Form – must be completed and signed to verify
that the quorum and training requirements were
met and to provide a summary of board actions;
and
Board of Appeal and Equalization Record Form –
must be completed to provide a detailed report of
the proceedings of the board.
The county assessor will provide these forms to the
board. The board will complete the forms (the
jurisdiction total EMV is to be completed by the
assessor), and the county assessor will take possession
of the completed forms at the end of the meeting.
A Certification Form must be completed in the case of a
reconvene meeting. If a recess is called, a quorum and
trained member must also be present at the reconvene
meeting for the board to take valid action. To verify that
the quorum requirement was met, the board must
complete and sign a Certification Form for each
reconvene meeting.
The board will continue to complete the original Record
Form at each reconvene meeting.
The reconvene meeting(s) must be held and all business
of the local board must be concluded within 20
calendar days (including the day of the initial meeting)
unless the board requests a time extension in writing
from the Department of Revenue and the time extension
is granted by the department (no extensions will be
granted beyond May 31). For county boards, no action
may be taken after June 30. The date and time for the
reconvene meeting must be determined before the initial
meeting is recessed. Once the Board of Appeal and
Equalization has adjourned, it cannot reconvene.
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Duties of the board
The board is to determine whether all of the taxable
property in the jurisdiction has been properly valued and
classified for the current assessment. All property is to
be valued at its market value, and all property is to be
classified according to use. At the county level, the
board is to ensure equalization from jurisdiction to
jurisdiction as well. The county board is required by
law that each member take an oath to fairly and
impartially perform duties as a member. It is assumed
that the assessor has properly valued and classified all
the property in the jurisdiction. The burden of proof rests
with the property owner who must present factual
evidence to disprove the assessor’s value or
classification.
The complaints and objections of property owners
appealing individual assessments for the current year
should be considered very carefully by the board. An
appeal may be made in person, by letter, or through a
representative of the owner. Written objections should be
filed prior to the meeting of the Board of Appeal and
Equalization and must be presented to the board for
consideration while it is in session. The board must hear
all complaints and examine all letters. Such assessments
must be reviewed in detail, and the board has the
authority to make corrections as it deems to be just. The
board may recess from day to day until all cases have
been heard.
The board should look for improvements that are not on
the tax rolls. When improvements are missing from the
tax rolls, an unfair burden falls upon the owners of all
properties that have been assessed. If the board finds any
improvements that are not on the tax rolls, the board
should place it on the assessment list along with its
market value, and correct the assessment so that each
tract or lot of real property and each article, parcel or
class of personal property is entered on the assessment
list at its market value.
Prohibition on changes within 10 days of local
board meeting
Since the Notice of Valuation and Classification must be
mailed to taxpayers at least 10 days prior to the meeting
of the Local Board of Appeal and Equalization, the
assessor should not make changes to the valuation or
classification of a property within that 10-day window
without bringing the change to the local board for action.
After receiving the notice, the property owner can
contact the assessor to discuss questions or concerns.
The assessor can make changes to the valuation or
classification without bringing the change to the local
board if a new notice is mailed to the property owner at
least 10 days prior to the local board meeting.
Oftentimes, the assessor will continue to review
properties within 10 days of the local board meeting.
However, if the assessor makes a change, that change
should be brought to the local board for action. If the
property owner agrees with the change, he/she does not
need to personally appeal to the board. Instead, the
assessor should present such changes to be voted on by
the board.
What the board can do
Reduce the value of a property. The board may
reduce the value of a property if the facts show that
the property is assessed at a value that is higher than
its market value. All property is to be valued at its
market value. It is assumed that the assessor has
properly valued the property. The burden of proof
rests with the property owner who must present
factual evidence to disprove the assessor’s value.
Increase the value of a property. The board may
increase the value of a property if the facts show that the
property is assessed at a value that is lower than its
market value. The board must also base the decision to
increase the market value on facts. All property is to be
valued at its market value. It is assumed that the assessor
has properly valued the property. The board must rely
on factual evidence to disprove the assessor’s value.
Before the board raises the market value of a property, it
must notify the owner. The law does not prescribe any
particular form of notice, except that the person whose
property is to be increased in assessment must be
notified of the intent of the board to make the increase.
The owner must be notified either in writing or orally.
He/she should be given a time to appear before the
board. After the hearing, the board should make any
corrections that it deems just.
Add improvements to the assessment list. In reviewing
the individual assessments, the board may find instances
where property is not listed at its market value because
the value of a building or other improvement was not
included when the market value of the property was
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14 Role of the board in the assessment process
estimated. These should be carefully reviewed by the
board and placed on a tentative list of property values to
be increased. The board should then determine to what
extent the valuation of such property should be
increased. Before the board adds value for new or
overlooked improvements, it must notify the owner.
Change the classification of a property. In
Minnesota, property is classified according to its use
on the assessment date (January 2 of each year). If the
property is not currently being used, it is classified
according to its most probable, highest and best use.
Property owners do not get to choose how they want
their property to be classified. It is the assessor’s job to
classify it according to its current use or its most
probable, highest and best use. The board can change
the classification of any property which in the board’s
opinion is not properly classified. Again, it is assumed
that the assessor has classified the property correctly.
The classification must be based on use, and in order
for the board to change the classification, the appellant
must present evidence that the property is used in a
manner consistent with the classification.
Local Boards Only: Add properties to the assessment
list. If the board finds that any real or personal property
has not been entered onto the assessment list, the board
shall place it on the assessment list along with its market
value, and correct the assessment so that each tract and
lot of real property and all personal property is entered
on the assessment list at its market value.
County Boards Only: Order percentage increases or
decreases for an entire class of property (blanket
changes). The county board can order a percentage
increase or decrease to an entire class of property if it
feels that the original assessment is incorrect. These
increases or decreases can be on land alone, buildings
alone, or land and buildings together. The county board
does not need to notify the property owners affected by
blanket changes.
Additionally, the county board has the authority to make
changes to market values or classifications established
by local boards as it deems appropriate. The County
Assessor typically brings these changes to the county
board’s attention.
What the board can’t do
The board can’t consider prior year assessments. The
Board of Appeal and Equalization does not have the
authority in any year to reopen former assessments on
which taxes are due and payable. The board considers
only the assessments that are in process in the current
year. Occasionally, a property owner may appear with a
tax statement and protest the taxes or assessment of the
previous year. The board should explain tactfully that it
does not have the authority to consider such matters.
After taxes have been extended, adjustments can be
made only by the process of application for abatement or
by legal action.
The board can’t reduce the aggregate assessment by
more than 1 percent. Although the both Local and
County Boards of Appeal and Equalization have the
authority to increase or reduce individual assessments,
the County Board alone can increase or reduce the
assessments of an entire class of property. However the
total of all adjustments for both local and county boards
must not reduce the aggregate assessment of the
jurisdiction by more than 1 percent. The “aggregate
assessment” is the total EMV that the board has the
authority to change, i.e. the
total EMV of assessments
within the jurisdiction
excluding state assessed
property. For example, if
the total EMV of a
jurisdiction is $2,000,000, the board cannot reduce the
total EMV of the jurisdiction by more than $20,000.
This means the EMV after all board actions must be at
least $1,980,000.
If the total amount of adjustments made by the
board does lower the aggregate assessment by more
than 1 percent, none of the adjustments will be
allowed. This limitation does not apply, however, to the
correction of clerical errors or to the removal of
duplicate assessments. Clerical errors are limited to
errors made by someone performing a clerical function
during the course of the actual assessment. Examples of
clerical errors are errors such as transposing numbers or
mathematical errors. Errors that occur when making
estimations during the inspection and appraisal process
(judgment errors) are not considered to be clerical errors.
The board can’t exempt property. The Board of Appeal
and Equalization does not have the authority to grant an
exemption or to order property removed from the tax
rolls.
Assessor’s EMV
+ Total board EMV increases
- Total board EMV reductions
EMV after board actions
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15 Role of the local board in the assessment process
A member of the board can’t make changes to
property in which he/she has a conflict of interest or
financial interest. If a property being appealed is
owned by a board member, a board member’s spouse,
parent, stepparent, child, stepchild, grandparent,
grandchild, brother, sister, uncle, aunt, nephew, or
niece, by blood or marriage, the board member is
prohibited from participating in the actions of the
board for that appeal. The board member is also
prohibited from participating in an appeal of a
property in which a board member has a financial
interest. If the remaining members constitute a
quorum, the board may vote on the action with the
compromised board member abstaining from the vote.
Otherwise, or if the board wishes to prevent any
perception of preferential treatment, it should mark
“No change” on the record form for the meeting. The
taxpayer will be eligible to appeal to the next appeal
level (County Board, Tax Court).
The board can’t grant special program status. If a
property owner is appealing for enrollment in special
programs that require an application (e.g. Green Acres),
they must follow the proper application procedure.
The local board can’t make changes benefiting a
property owner who refuses entry by the assessor.
The board may not make an individual market value
adjustment or classification change that would benefit
the property in cases where the owner or other person
having control over the property will not permit the
assessor to inspect the property and the interior of any
buildings or structures. The county board is not
statutorily precluded from making a change based on
the property owner’s refusal to allow the assessor
access to view the property. However, simply because
the statute does not explicitly preclude the county
board from making such a change, it is strongly
recommended that the county board not grant any
reduction in value until the property owner has
allowed the assessor access to view the property. It
seems obvious that for an assessor to make a fair and
knowledgeable value estimate, he/she must first be
allowed to view the entire property. Until such access
is granted, the county board should not grant a value
reduction.
The local board can’t order percentage increases or
decreases for an entire class of property.
The county board can’t add properties to the
assessment list. It can request that the auditor place such
omitted properties on the tax rolls.
Recommendations for board members
Become familiar with sales information prior to
board meeting
Most board members are not necessarily aware of
current trends in the real estate market or trained in the
field of appraisal. Therefore, advance preparation is
essential to making informed, fair decisions on the
appeals heard by the local board.
The county assessor (or the local or city assessor in
some instances) should provide information on the real
estate market in advance of the board meeting. If this
information is not provided, the board should request
that the assessor provide the information at least one
week prior to the meeting so board members have time
to review it.
The following are examples of the type of data that the
assessor may provide for the board to use when
determining if an adjustment is necessary. This is not an
all-encompassing list, and depending on the jurisdiction,
it may or may not be necessary for every board to have
all the items on the list. The board should work with the
assessor to determine the specific information to be
supplied to the board.
Information on sales within the district that
occurred in the previous year.
Valuation tables of land types.
Copy of the values from the mini-abstract
for the district (current year and prior year).
Printout of parcel listings for the district
with the values.
Review of the current statutory classifications
and the corresponding class rates.
Review of value changes by property type
in the district.
The board should also be prepared to request
additional background information and to ask
questions of the assessor in order to assist with the
board’s deliberations.
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16 Legal and policy reasons for fair and impartial appeal and equalization hearings
As a board member, you should review the information
provided by the assessor. If you have any questions
about the materials, please be sure to contact the
assessor. Being knowledgeable about the real estate
market is the key to making informed and fair decisions.
Duties of the clerk – Local Boards
The town or city clerk plays an important role in the
Local Board of Appeal and Equalization process. The
following is a brief list of the duties of the clerk
pertaining to the local board meeting:
Work with the county assessor to establish the
meeting date(s) for the local board;
Publish and post notice of the meeting at least 10
days prior to the date of the (Minnesota Statutes,
Section 274.01, subdivision 1);
Ensure that a quorum will be present;
Provide a sign-in sheet for appellants;
Take minutes of the meeting as part of the
town or city record; and
Return all necessary records to the county
assessor in a timely manner.
In some jurisdictions, various duties of the clerk may be
performed by the city or county assessor or the
assessor’s staff. In these instances, it is recommended
that the clerk be aware of and monitor these duties to
ensure they are completed.
Legal and policy reasons for fair and impartial
appeal and equalization hearings
Legal reasons for fair and impartial local board meetings
Minnesota Statutes, Section 274.01, subdivision 1,
paragraph (b) states:
“The [local] board shall determine whether
the taxable property in the town or city has
been properly placed on the list and properly
valued by the assessor.”
Minnesota Statutes, Section 274.13, subdivision 1 states:
“The [county] board shall examine and compare
the returns of the assessment of property of the
towns or districts, and equalize them so that each
tract or lot of real property and each article or class
of personal property is entered on the assessment
list at its market value…”
This means that any action taken by the board must be
done in an effort to ensure that all taxable property in the
jurisdiction has been properly valued and classified by
the assessor. It is assumed that the assessor has correctly
valued and classified all property. The burden of proof
rests with the property owner who must present factual
evidence to disprove the assessor’s valuation or
classification of the property.
Minnesota Statutes, Section 273.11, subdivision 1
requires that all property be valued at its market
value. The assessor is required to value all property
at market value, and the Board of Appeal and
Equalization also must keep this in mind when
adjusting market values.
The board is to hear all appeals and act in a manner that
is just. Minnesota Statutes, Section 274.01,
subdivision 1, paragraph (b) states:
“On application of any person feeling aggrieved, the
board shall review the assessment or classification, or
both, and correct it as appears just.”
To act in a just manner, the board must only make
changes that are based on facts.
County Boards of Appeal and Equalization are
required by Minnesota, Statutes, section 274.13 to take
an oath to fairly and impartially perform their duties.
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17 Legal and policy reasons for fair and impartial appeal and equalization hearings
A sample of the oath is as follows:
“I, <board member’s name>, will solemnly
swear that I will support the Constitution of the
United States and the Constitution of the State of
Minnesota, and that I will faithfully execute and
discharge the duties of the <county name> Board
of Appeal and Equalization according to law and
to the best of my ability and understanding.”
The oath may be administered by a district judge or the
clerk of the court and underscores the importance of
acting fairly and impartially on all appeals brought
before the county board.
Policy reasons for fair and impartial board meetings
Property owners expect and deserve a fair and impartial
hearing. Serving as the Board of Appeal and
Equalization is an important duty. It is very important
that the meeting be conducted in a fair and impartial
manner, or the property owner’s confidence in the entire
appeal process will be undermined.
In order for the property owner to receive a fair and
impartial hearing, the property owner must have an
opportunity to present his/her appeal and provide
evidence to support it. Then the assessor should explain
his/her valuation or classification. It is assumed that the
assessor has valued and classified the property correctly,
and the burden of proof rests with the property owner,
who must present factual evidence to disprove the
assessor’s value or classification. Then the local board
must take the appeal under consideration.
An educated board is the key to a fair and impartial
hearing. A board that is knowledgeable about the local
real estate market does not simply “rubber stamp” the
assessor’s value but makes independent decisions based
on facts. It is important that the property owner does not
perceive the outcome to be predetermined or believe that
the board is “defending” the assessor’s value. This does
not mean that the board should not uphold the assessor’s
value. It does mean that if the local board changes the
assessor’s value or classification, it must be based on the
facts presented.
A fair and impartial hearing does not necessarily mean
that the property owner is granted the value reduction or
classification change that he/she is seeking. Receiving a
fair and impartial hearing only means that the owner had
the opportunity to present his/her appeal, the board
considered the appeal and based its decision on facts.
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18 Board meeting procedures that foster fair and impartial assessment reviews and
other best practices recommendations
Board meeting procedures that foster
fair and impartial assessment reviews and
other best practices recommendations
Each board meeting is conducted differently. While
there are not any specific statutory guidelines for
conducting the meeting, this chapter will outline
meeting procedures that foster fair and impartial
assessment reviews.
Also included in this chapter are best practices
recommendations. We acknowledge that some
jurisdictions may have bylaws or rules of procedures
that may preclude some of these recommendations.
Keep in mind that these are recommended procedures
for the boards, and they are not intended to contradict
such rules or bylaws. It is up to each board to determine
which procedures are most appropriate for its Board of
Appeal and Equalization meeting.
Meeting procedures
The board should run the meeting
The board should take charge of the meeting. It is not
the assessor’s meeting. The board is intended to be a fair
and impartial review of the assessment. The assessor
should realize that the appeal decisions are not in his/her
hands. The board’s decisions are between the board and
the appellant. The assessor is not on trial for his/her
work. The board should not critique the assessor’s
performance or blame the assessor for increasing values
(or taxes). Assessors should try not to become too
personally involved with the decisions and remember
that they have already done their best job. It is now the
task of the local board to review the facts and make
decisions as it deems just.
Establish ground rules for the meeting
Before hearing any appeals, the Board Chair should
outline the ground rules for the meeting. The ground
rules set the tone for the meeting. The specific ground
rules may vary for each board but should include:
The purpose of the meeting;
A reminder to property owners that only appeals
for the current year valuation or classification can
be made – taxes or prior years’ assessments are not
within the jurisdiction of the board;
A reminder to property owners that they may only
appeal the estimated market value (EMV), and that
the appeals process is concerning this amount - not
tax amounts;
An explanation of the order of the appellants (will
it be by appointment first, followed by walk-ins on
a first-come basis, etc.);
The expectations of the appellant when presenting
his/her appeal (the appeal must be substantiated by
facts; where the appellant should stand or sit; the
appellant should be prepared to answer questions
posed by the board, etc.);
The time limits imposed (if any); and
The procedure the board will follow for making
decisions (will the board hear all appeals before
making any decisions, will the board send a letter
to appellants to inform them of the decision, etc.).
The Board Chair should give the assessor the
opportunity to present a brief overview of the property
tax process and a recap of the current assessment.
Appellants should then present their appeals. If the
assessor has had a chance to review the property prior to
the meeting, the assessor can present facts and
information to the board to support the valuation or
classification or recommend that the board make a
change. If the assessor has not had a chance to review
the property prior to the meeting, the assessor can
present such information to the board at the reconvene
meeting.
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19 Board meeting procedures that foster fair and impartial assessment reviews and
other best practices recommendations
All proceedings must be public
The board meetings are subject to the open meeting
law. The open meeting law requires that meetings of
governmental bodies generally must be open to the
public. Therefore, all board proceedings must be
public.
Board members should not leave the meeting to the
assessors while they talk about other business.
Board members should not confer with each other,
the assessor, or appellants regarding appeals in
question outside the board meeting(s).
Make appellants feel comfortable
Presenting an appeal to the Board of Appeal and
Equalization can be intimidating for appellants. The goal
of the board should be to make the appellant feel
comfortable, not intimidated. To make the appellant
more comfortable when presenting an appeal to the
board, it is recommended that the appellant sit (or stand)
in front of the board and present directly to the board
rather than having the appellant speak and address all
present in the audience. This not only allows the
appellant to be more comfortable, but also decreases the
potential that an angry “mob” will form at the meeting.
Dealing with angry or difficult property owners
The following are some tips that may be helpful when
dealing with an angry or difficult property owner:
Always treat the property owner with respect;
Listen to the property owner;
Speak calmly and keep your body language calm;
Encourage the property owner to discuss
his/her concerns;
Do not get defensive;
Keep things on a positive level;
Avoid blaming statements (“You…”);
Keep the conversation focused on the issue, not
personalities (“The assessor doesn’t like me,”
etc.);
Clarify the problem;
Acknowledge the property owner’s concerns;
Show empathy for the property owner;
Emphasize collaboration (“Let’s see if we can find
a solution to this problem.”);
Let the property owner know that you will be
reviewing the facts of the case; and
End the property owner’s presentation by
acknowledging in a tactful manner that you’ve
heard what he/she has to say and will consider
the matter.
If things get too heated, it may be a good idea to suggest
a short break so the parties can calm down. Do not let
things get out of hand before informing the authorities.
If the board is anticipating any problems, it may be a
good idea to inform local law enforcement of the
meeting in advance. Do not take threats or someone
talking about violence lightly. Safety should be your
main concern. If you feel threatened, call the authorities.
Oftentimes, property owners are frustrated by the
process because they are unsure about how to appeal
to the local board. To reduce their frustration, it is
recommended that the local board let them know what
they will need to do to substantiate their appeal (see
“Handouts for property owners” section in the
Appendix for information local boards may supply to
property owners).
The Notice of Valuation and Classification will direct
property owners to the Minnesota Department of
Revenue website (http://www. revenue.state.mn.us) for
information on the appeal process and how to
substantiate appeals. Many counties also have
information on their websites concerning how to appeal,
property information, frequently asked questions, etc. If
your county website does have information relating to
assessment or property taxes, it is a good idea to become
familiar with this information so you can refer property
owners to it.
Hearing appeals
The Board Chair should call the appellant. The board
must be attentive when the appeals are being presented.
Take the time to listen to the person presenting the
appeal, but do not let the appellant dominate the
meeting.
After an appellant has presented his/her case, the chair
should ask the assessor to explain how the value and/or
classification was determined. To keep things moving
and to conduct a fair meeting, any time limits imposed
on an appellant should also be imposed on the assessor.
The board should ask questions of the appellant and the
assessor if more information is needed.
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20 Board meeting procedures that foster fair and impartial assessment reviews and
other best practices recommendations
The final closing of a meeting, such as a meeting of
the board of directors or any official gathering.
Adjourn is not to be confused with “recess,” which
means the meeting will break and then continue at a
later time.
Adjourn
Depending on the procedure that the board is following,
the chair should either:
Have the board make a decision on the appeal; or
Inform the appellant that his/her concern will be
taken into consideration and let the appellant know
when a decision will be made, as well as how
he/she will be informed of the board’s decision.
Review process, not value-reduction process
The appeal process is a review process and not just a
value-reduction process. The Board of Appeal and
Equalization is an important step in maintaining an
equitable property tax system. It is vital that the board
members take this responsibility seriously. Any value
changes – increases or decreases – must be justified as
value changes have the effect of shifting the tax burden
to other property owners in the jurisdiction.
The purpose of the board is to ensure equality between
taxpayers so that each taxpayer is paying the fair share
of taxes – no more, no less. Keeping in mind that a
reduction in estimated market value may not reduce
taxes, and sharing this information with appellants, may
help set the proper tone for the meeting.
Therefore, it is not incumbent upon the board to reduce
the value of all individuals who appeal to the board, as
that may be unfair to the property owners who have not
appealed. The board should not give reductions to
people just for “showing up.” It is assumed that the
assessor has properly valued and classified all property
in the jurisdiction. The burden of proof rests with the
property owner who must present factual evidence to
disprove the assessor’s value or classification. All
changes made by the board must be based on facts.
Recess or adjourn
The board may not take action after adjourning. All
issues must be resolved before the meeting is adjourned.
If issues still need to be considered, the board should
recess until the next meeting.
For county boards, the next (reconvene) meeting must
be held within the ten-day time limit for the board and
no later than June 30. For local boards, the reconvene
meeting must be held within 20 calendar days (including
the day of the initial meeting) unless the local board
requests a time extension from the Department of
Revenue, and the time extension is granted by the
department. The date and time for the reconvene
meeting must be determined before the initial meeting is
recessed.
Once the Board of Appeal and Equalization has
adjourned, it cannot reconvene.
Decisions
It is the board’s duty to review the facts and make
corrections as it deems just. It is not appropriate to turn
the decision over to the assessor. The board should not
order the assessor to review the property and change the
value or classification and then adjourn. In this instance,
the issue is not resolved. The board may ask the assessor
to review the property and report back to the board at a
reconvene meeting. Ultimately, it is the board that must
make any adjustments.
All decisions should be adopted by a formal vote.
Options for decisions include:
No change;
Lower the value;
Raise the value;
Notify a property owner of intent to raise
the value;
Change the classification; or
Have the assessor inspect the property and report
to the board (within the appropriate meeting
timeframe).
A break in a meeting or proceedings until a certain
date and time. Recess is not to be confused with
“adjournment,” which ends the proceedings.
Recess
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21 Board meeting procedures that foster fair and impartial assessment reviews and
other best practices recommendations
There are certain circumstances, such as appeals
involving contamination values or income-producing
properties, that may require more than the given time for
the assessor to review. In such instances, a local board
may decide to vote “no change” and forward the appeal
to the County Board of Appeal and Equalization.
There also may be circumstances involving complicated
appeals, in which the board may review the information
presented and not be able to determine if the assessor’s
value should stand or if the property owner’s evidence
justifies a value or class change. If the board is faced
with a situation in which it is not sure how to rule based
on the facts presented, the proper decision would be “no
change.” In these instances, the board should keep in
mind that the taxpayer can appeal to Tax Court.
For local boards:
The property owner can appeal to the county board
or he/she can take the case to Tax Court; and
The county assessor can ask the county board
to review the property value or classification if
he/she believes that the local board change
was not justified.
Appeals must be substantiated by facts
Appeals must be based on facts. The property owner
must present supporting evidence to convince the
board that the current year valuation or classification
is incorrect. The supporting evidence can be presented
either in person, through a letter or through an
authorized representative.
The property owner should describe the property, how
the property is used, as well as its current condition.
Photos can be very helpful in illustrating the condition
of the property. The property owner should review the
assessor’s data on the property to make sure that it is
correct. The property owner should also review recent
property sales in the area. At the assessor’s office, the
property owner can review Certificates of Real Estate
Value (CRVs) for properties in the area. Other
evidence such as a recent appraisal may also be
helpful information to present.
The property owner should keep in mind that taxes are
not the issue. The board should not consider arguments
based on the ability of the taxpayer to pay, services
received for taxes paid or tax equalization. Given the
broad spectrum of tax capacity rates, tax classifications
and state credit programs that apply to various properties
throughout the jurisdiction, tax comparisons are
misleading. To strengthen their appeal, property owners
should present evidence about the property’s value or
classification, not how much they are paying in taxes.
Property in Minnesota is classified according to its
actual use, such as commercial, agricultural, or
residential homestead, not zoning. Property owners
disputing the classification need to present information
that proves how they use the property. For example, a
property is classified as residential. The property owner
believes that his/her property is eligible for the
agricultural classification and appeals to the board. In
order for the board to change the classification to
agricultural, the owner must prove that the property is
used agriculturally and meets the statutory requirements
of the agricultural class.
As a board member, you should be objective and be
sure that any changes are based on facts. Do not
recommend changes without any supporting
documentation. Do not recommend changes for all
people who appeal to the board (unless each appeal can
be substantiated). Simply taking the time to appeal is not
a valid reason for adjusting the market value or changing
the classification of a property. Always keep in mind
that any reductions that the board may make will have
the effect of shifting the tax burden to other property in
the jurisdiction. The amount the jurisdiction levies will
not change when values are increased or decreased; only
the amount paid by each taxpayer changes.
For information on the appeal process and how to
substantiate an appeal, you can direct property owners to
the Minnesota Department of Revenue website
(http://www.revenue.state.mn.us). If your county
website also contains additional information such as
how to appeal, property information, frequently asked
questions, etc., it is a good idea to become familiar with
this information so you can refer property owners to it.
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22 Board meeting procedures that foster fair and impartial assessment reviews and
other best practices recommendations
Best practices recommendations
Have appellants call for appointments
It is recommended that the board hear appeals on an
appointment basis. The Notice of Valuation and
Classification sent to all taxpayers to notify them of their
property value and classification can instruct appellants
to call for an appointment with the board.
Appointments benefit the board, the assessor and the
appellant. Appointments give the board an idea of how
many property owners will be appealing, so the board
can manage their time appropriately. It gives the
assessor time to assist in the board’s deliberations by
reviewing the property and collecting supporting data or
recommending that the board make a change.
Appellants also benefit because they need only come
to their scheduled appointment and do not have to
spend time listening to other appellants. In some
instances, property owners call to schedule
appointments with the local board, and the appeal is
avoided altogether because the issue can be resolved
easily by the assessor’s staff. Property owners who
call for appointments can also be given information on
preparing and presenting an appeal so they will know
what to expect at the meeting (see “Handouts for
property owners” section in the Appendix).
In addition to hearing appeals by any appellants who
scheduled appointments, the board also must hear any
appeals by property owners who come to the meeting
without having scheduled an appointment prior to the
meeting. (Unless extenuating circumstances apply, the
property owner must first appeal to the local board
before appealing to the county board.) When outlining
the ground rules for the meeting, the board chair should
inform the appellants that the board will be hearing
appeals from those who have scheduled appointments
first, and then the board will be hearing appeals by
others (in the order listed on the sign-in sheet).
Time limits for presenting appeals
Time limits can help to keep the meeting moving. Time
limits may be more appropriate in jurisdictions with a
significant number of people appealing their valuation or
classification. If there are only a few people at the
meeting, time limits may not be necessary. If there are
several appellants, it may be beneficial to establish a
time limit for each appeal.
If time limits are established, they should be included in
the ground rules that are outlined at the beginning of the
meeting. Whether or not a time limit is established, it is
the responsibility of the board chair to keep the meeting
moving. If an appellant goes on at length about a
specific point, the Board Chair should intervene – in a
professional manner – to keep the meeting on track. The
chair should ensure that appellants stick to their time
allotments. If the appellant discusses taxes or previous
assessments, the Board Chair should remind him/her
tactfully that the issue is the current year valuation or
classification.
If the board determines that time limits are appropriate
for appellants, it also should impose time limits for the
assessor to support his/her valuation or classification or
recommend that the board make a change.
Hear all appeals first
It is recommended that the board hear all appeals
before making any decisions. The board should make
all decisions later in the meeting or at the reconvene
meeting (within the appropriate meeting timeline) if it
is determined that the assessor should view the
property or if the board requests additional
information from the assessor. If a reconvene meeting
is necessary for the assessor to report back to the
board, it should be limited to appeals made at the
initial meeting. The reconvene meeting is typically not
for hearing a property owner’s initial appeal.
Hearing all appeals first gives the board an opportunity
to get a better understanding of what happened in the
district, so it can make consistent recommendations. It
eliminates situations where the board feels obligated to
respond in a certain manner to one property owner
because of an earlier decision. It also speeds up the
process for appellants as they may leave after they
present their appeal.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 31
23 Quorum requirements for boards
Conducting other business at the board
meeting
It is best to hold a special meeting for the Board of
Appeal and Equalization and not conduct the
regular council meeting (or other business) at the
board meeting. However, due to the low attendance
in some jurisdictions, conducting other business at
the meeting may be an acceptable practice if
handled appropriately.
If other business is also to be conducted at the
meeting, the time listed on the Notice of Valuation
and Classification should be the start time for the
appeals portion of the meeting. You should conduct
other business either before the meeting (table any
discussion if not completed when it is time for the
Board of Appeal and Equalization) or after the
meeting (allow any late arrivals to present their appeal
even if the board has moved on to other business).
There have been instances in the past where the board
members have held their regular meeting in one part
of the hall, and the assessor has been told to meet with
appellants in another area. This is not an acceptable
practice. It is the responsibility of the board to hear
the appeals and the facts presented to make an
informed and fair decision.
Notifying property owners of decisions
It is recommended that all appellants be notified in
writing of the decision of the board, even if the
appellant was present for the decision. Given the
recommended format of hearing all appeals before
making any decisions, appellants may choose not to
stay for the entire meeting. A letter notifying appellants
of the decisions ensures that they understand and are
aware of the action, if any, taken by the board. It is also
an opportunity to notify appellants of additional appeal
options if they are not satisfied with the board’s
decision (see “Recommended format to notify
appellants of board decisions” in the Appendix).
Quorum requirements for boards
Quorum must be present
A majority of the voting members of the Board of
Appeal and Equalization must be in attendance in order
for any valid action to be taken. When a board
meets and conducts business without a quorum, it is
conducting an illegal meeting. This means that any
changes made by a board which does not meet the
quorum requirement are null and void.
What constitutes a quorum?
Quorum requirements differ depending on the type of
body that is meeting. Per Minnesota Statutes,
Section 274.01, subdivision 1, paragraph (a), the town
board of a town, or the council or other governing body
of a city is the Local Board of Appeal and Equalization.
Except for the following situations:
Cities whose charters provide for a board of equalization;
Cities or towns that have transferred their local board duties to the county (see Chapter 5);
Cities with Special Boards of Appeal and Equalization appointed by the governing body (see Chapter 5); or
Cities or towns whose local board duties have been transferred to the county due to noncompliance with the training requirements.
4
The number of people required to be present before
the members at a meeting can conduct business. For
the Board of Appeal and Equalization, a majority of
the voting members of the board must be present to
meet the quorum requirement.
Quorum
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Title: 2014 Local Board of Appeal & Equalization Page 32
24 Quorum requirements for local boards
Townships: Per Minnesota Statutes, Section 366.01,
subdivision 1, the supervisors of each town constitute
the town board. Two supervisors constitute a quorum at
a town board meeting unless the town is operating under
“option A,” which means it has a five-member board of
supervisors. In the latter case, three supervisors are
required to meet the quorum requirement.
City councils: According to Minnesota Statutes,
Section 412.191, the city council in a standard plan
city shall consist of an elected mayor, an elected clerk,
and three or five elected council members (which
means these cities have either five or seven voting
members). In optional plan cities, the city council
consists of an elected mayor and four or six elected
council members (which means these cities have
either five or seven voting members). In all statutory
cities, the mayor is a voting member of the council
and must be counted when determining whether a
quorum is present. A majority of the voting members
must be present to meet the quorum requirement.
Charter cities may provide that a different number of
council members constitute a quorum.
Special boards: Appointed by the governing body of a
city, a majority of the voting members must be present
in order to meet the quorum requirement.
County commissioners serve as the County Board of
Appeal and Equalization: The number of
commissioners is either five or seven. (Generally, there
are five members; however, counties with more than
100,000 in population may, by board resolution,
increase their county board from five to seven
members.) When the county board is serving as the
County Board of Appeal and Equalization, the county
auditor is also a voting member. If there are six total
voting members, at least four must be present to meet
the quorum requirement. If there are eight total voting
members, at least five must be present to meet the
quorum requirement.
If a quorum is not present, the meeting cannot legally be
held. The County Board of Appeal and Equalization will
be transferred to a special board for the next assessment
for failure to comply with the quorum requirement.
A county board whose powers are transferred to the
special board for failing to meet either the training or
quorum requirement may be reinstated by resolution of
the county board and upon proof that at least one of the
county board’s members has attended the appeals and
equalization course. The resolution and proof must be
provided to the commissioner of revenue by December 1
to be effective for the following assessment year.
Note: The citation for the appeals and equalization
course and meeting requirements for county boards is
Minnesota Statutes, Section 274.135.
County commissioners appoint a Special Board of
Equalization: The county board of any county may
appoint a Special Board of Equalization and delegate its
powers and duties to this special board. The special
board of equalization serves at the direction and
discretion of the appointing county board, and is subject
to the restrictions imposed by law on the appointing
board. The appointing board may determine the number
of members to be appointed to the special board, the
compensation and expenses to be paid, and the term of
office of each member. At least one member of the
special board must be an appraiser, real estate agent, or
other person familiar with property valuations in the
county. For a special board, the county auditor is a
nonvoting member and serves as the recorder.
When a quorum is not present
Each year, there are numerous complaints from property
owners who have taken time off from work – or simply
taken their personal time – to attend a board meeting
only to find that the meeting cannot take place due to the
lack of a quorum.
When a local board does not meet because a majority
of the members are not present, it sends a message to
property owners that the board does not value their time.
It also sends the message that the board does not take the
responsibility of serving as the Local Board of Appeal
and Equalization seriously.
Rather than simply sending home angry and frustrated
property owners, the assessor changes the format to an
“open book” meeting. Property owners can discuss their
issues one-on-one with the assessor or the assessor’s
staff. If they are not satisfied with the outcome, they can
appeal to the County Board of Appeal and Equalization.
This assures that the time property owners set aside to
appeal to the local board is not wasted.
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Title: 2014 Local Board of Appeal & Equalization Page 33
25 Explanations of alternate methods of appeal
If a county or special board of appeal and equalization
fails to satisfy quorum or training requirements, owners
and taxpayers who would have appealed to the board
can appeal to the Commissioner of Revenue before
August 1. A fee of $500 per tax parcel that is appealed
will be assessed to the county.
Arrive on time for the meeting
It is also very important that the board members and
all required attendees (county assessor, local assessor,
clerk, auditor, etc.) arrive at the meeting on time and
that the meeting begins at the scheduled time. This
shows respect for the people who are appealing to the
board, and also shows that their time is valued.
Explanations of alternative methods of appeal
Open Book Meetings
Role of the board in the assessment process
Traditionally, open book meetings have been scheduled
for jurisdictions in which the Local Board of Appeal and
Equalization duties have been transferred to the county.
During “open book” meetings, the valuation and
classification issues are handled by the assessor’s staff
on a one-on-one basis with the property owner.
Typically, open book meetings are held by the county
assessor’s staff. However, larger cities with an appointed
city assessor may hold their own open book meetings.
The open book meetings are held in locations that are
convenient for property owners. Often open book
meetings are held over several days during both day
and evening hours. This allows property owners to
appeal when it best suits their schedules instead of
having to rearrange their schedules to attend a meeting
held at one place and time.
The open book meetings provide a forum for property
owners to meet with assessment staff on an informal
basis to review information about their property and to
ask questions about the assessment. This setting allows
the assessor’s office to resolve questions and reduce the
number of appeals to the County Board of Appeal and
Equalization (or the Special Board of Equalization).
Property owners do not need to make an appointment to
meet with the assessment staff. They can simply show
up at the dates and times stated on the Notice of
Valuation and Classification to discuss their assessment.
Depending on the jurisdiction, the appraisers may
have laptop computers to access information about the
taxpayer’s property. Some counties may be able to
link directly to their computer-assisted mass appraisal
(CAMA) system which allows the appraiser to obtain
data on sales of comparable properties.
When reviewing the details of the property with the
owner, the appraiser can verify the accuracy of the
county’s data and correct any errors. The property
owner can also schedule an appointment for the
appraiser to view the property if needed.
Benefits for the property owner
Property owners often find that the open book meeting
is less intimidating than presenting their appeal to the
board of appeal and equalization. They often appreciate
the fact that they can have their questions answered in a
more private setting, and not have to be apprehensive
about making a presentation in front of their friends and
neighbors. In this one-on-one setting, property owners
may spend as much time with the appraiser as they need.
They can compare the value of their home with the
values of similar homes owned by their neighbors.
An open book meeting is a meeting held by the
county assessor’s office to discuss property owners’
questions regarding their assessments. The one-on-
one meeting usually is held as an alternative to the
Local Board of Appeal and Equalization.
Open book meetings
5
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Title: 2014 Local Board of Appeal & Equalization Page 34
26 Explanations of alternate methods of appeal
The process is very efficient because concerns and
questions are often resolved immediately. Property
owners can see that the appraiser collects the same
information on all properties, reassuring them that the
process is the same for everyone, and they have not been
singled out for a value increase.
Property owners who are not satisfied with the “open
book” approach may appeal to the County Board of
Appeal and Equalization (or Special Board of
Equalization) and/or appeal to Tax Court.
It is only a recommendation that the property owner
attend the open book meeting to discuss concerns prior
to the county or special board. If a jurisdiction does not
have a Local Board of Appeal and Equalization, the
property owner is not required to attend an open
book meeting in order to appeal to the County Board
of Appeal and Equalization (or Special Board of
Equalization).
Benefits for the local board
The benefit for the local board is that an open book
meeting saves time for board members. It eliminates the
need for the board to become familiar with and educated
on the local real estate market. Board members will be
able to spend this time concentrating on their other
duties as town board or city council members. In
addition, board members can avoid confrontational
situations with constituents and will no longer be put
into difficult situations by having to make decisions
about the property values or classifications of property
owned by friends and neighbors.
However, one possible disadvantage is that the assessor
who made the original assessment may also be
reviewing the property for the open book appeal.
Objectivity (or the appearance of objectivity) may be
lost.
Benefits for the county
While the number of appeals made at the open book
meeting may not be less than the number of appeals to
the local board, the benefit for the county is that the open
book process allows for immediate consideration of
issues, and in many cases, appeals are resolved before
the County Board of Appeal and Equalization. The
process is efficient for the county because it can often
consolidate several jurisdictions into one meeting (or a
series of meetings) instead of holding at least one
meeting in each jurisdiction.
Option 1: Transferring assessment and local
board duties to the county
The town board or city council may transfer the
powers and duties of the Local Board of Appeal and
Equalization to the county board (under Minnesota
Statutes, Section 274.01, subdivision 3) and no
longer perform the function of a Local Board of
Appeal and Equalization.
However, in order to exercise this option, the local
jurisdiction also must have its assessment done by the
county. This means that the local jurisdiction must give
up its local assessor. Some jurisdictions do not see this
as an option, because they have no intention of
relinquishing this power to the county. For other town
boards or city councils, this may be a good option.
Before transferring the powers and duties to the county
board, the town board or city council must give public
notice of the meeting at which the proposal for transfer
“Open book” meetings provide many benefits:
No appointment needed.
Property owners can verify or correct
information about their property.
Property owners can schedule a time for the
assessor to view their property.
The setting is less intimidating than a board
meeting.
The property owner does not need to “present”
their appeal in front of friends and neighbors.
Property owners can compare their values to
the values of other similar homes.
Questions and concerns are often resolved
immediately.
The process is very efficient.
Property owners may appeal to the County
Board of Appeal and Equalization (or the
Special Board of Equalization) and/or to Tax
Court if not satisfied with the outcome.
Open book benefits for property owners
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 35
27 Explanations of alternate methods of appeal
is to be considered (the public notice needs to follow the
procedure contained in Minnesota Statutes,
Section 13D.04, subdivision 2).
A town board or city council that wishes to transfer the
assessment and local board duties to the county board
must communicate this intent in writing to the county
assessor before December 1 of any year to be effective
for the following year's assessment. This transfer of
duties may either be permanent or for a specified
number of years. However, the duties must be
transferred to the county board for a minimum of three
years, and the length of the transfer must be stated in
writing. A town or city may renew its option to transfer
its duties to the county board.
Property owners in jurisdictions that have chosen this
option would be provided with an open book meeting in
place of the Local Board of Appeal and Equalization.
Property owners who are not satisfied with the outcome
of the open book meeting may appeal to the County
Board of Appeal and Equalization and/or to Tax Court.
Option 2: Transferring local board duties to the
county
Previously, the only option for transferring the local
board duties to the county board meant that the local
jurisdiction had to give up its local assessor as well.
Some jurisdictions saw this option as a loss of control,
and therefore, it was not considered to be an option for
the city or town.
The quorum and training requirements for local boards
were implemented to improve the local board process so
that the boards function fairly and objectively. The intent
of the legislation was not to force or require a city or
town to give up its local assessor. However, a
jurisdiction that fails to meet these requirements must
transfer the duties of the Local Board of Appeal and
Equalization to the County Board of Appeal and
Equalization. In this situation, the jurisdiction would
lose the right to hold its local board, but it would be able
to retain its local assessor.
It seems unfair that a jurisdiction which voluntarily
transfers its Local Board of Appeal and Equalization
duties to the County Board of Appeal and Equalization
must give up its local assessor, while a local board that
must transfer its duties to the county board for failing
to meet the training or quorum requirements may retain
its local assessor.
It seems appropriate that the local jurisdiction be given
the opportunity to decide to forego its right to act as a
Local Board of Appeal and Equalization and still
maintain its local assessor. If the town board or city
council deems that property owners would be best
served with an open book meeting, which also would
relieve the board from having to make difficult value
and classification decisions, the board or council
should contact the county assessor and inform him/her
of the jurisdiction’s intent to be treated as though it did
not meet the quorum or training requirements. It
should clarify that the city or town is transferring its
duties to the county board, but will retain its local
assessor. The town board or city council must notify
the county assessor of this decision in writing by
December 1 to be effective for the following
assessment year.
Property owners in a jurisdiction that has chosen to
transfer its Local Board of Appeal and Equalization
duties to the County Board of Appeal and Equalization
would be provided with an open book meeting in place
of the local board. Property owners who are not
satisfied with the outcome of the open book meeting
may appeal to the County Board of Appeal and
Equalization and/or to Tax Court.
The local board can be reinstated by resolution of the
governing body of the city or town and upon proof of
compliance with the training requirements. The
resolution and proof of compliance must be provided
to the county assessor by December 1 to be effective
for the following assessment year.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 36
28 Explanations of alternate methods of appeal
Other alternate methods of appeal
Special Boards of Appeal and Equalization -
Local
The governing body of a city (including cities with
charters that provide for a board of equalization) may
appoint a Special Board of Appeal and Equalization in
lieu of a local board. The city may delegate to the
Special Board of Appeal and Equalization all of the
powers and duties of the Local Board of Appeal and
Equalization. Town boards are not able to appoint
special boards.
The special board serves at the direction and
discretion of the appointing body, subject to the
restrictions imposed by law. The appointing body
shall determine the number of members of the board,
the compensation and expenses to be paid, and the
term of office of each member.
At least one member appointed to the Special Board
of Appeal and Equalization must be an appraiser,
realtor or other person familiar with property
valuations in the assessment district. The special board
must also meet the training and quorum requirements
that a local board must meet.
Special Board of Appeal and Equalization -
County
As mentioned in the quorum requirements section of
this handbook, the county commissioners of any county
can appoint a special board of equalization and delegate
the powers and duties to this special board. A special
board may also be required when the training or quorum
requirements are not satisfied by the county board of
appeal and equalization.
These special boards serve at the direction and discretion
of the appointing body and are subject to the restrictions
imposed by law. The appointing body shall determine
the number of members of the board, the compensation
and expenses to be paid, and the term of office of each
member.
At least one member appointed to the Special Board of
Appeal and Equalization must be an appraiser, real
estate agent, or other person familiar with property
valuations in the county. This special board must also
meet the training and quorum requirements that regular
boards must meet.
Tax Court
Minnesota has a specific court established to hear and
determine all questions of law and fact arising under the
tax laws of the state. The Tax Court has statewide
jurisdiction. Except for an appeal to the Supreme Court,
the Tax Court is the sole and final authority. The
petitioner must file in Tax Court on or before April 30
of the year in which the tax is payable, not the year
of the assessment.
There are two divisions of Tax Court: the Small Claims
Division and the Regular Division. The Small Claims
Division only hears appeals in certain circumstances and
is less formal. Property owners often represent
themselves and there is no official record of the
proceedings, meaning the decisions cannot be appealed
further. The Regular Division hears all types of appeals
and the decisions can be further appealed.
There is a filing fee and other fees associated with
appealing to Tax Court. The court is based in St. Paul,
but it travels to the county where the property being
appealed is located for the trial. More information is
available at www.taxcourt.state.mn.us.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 37
29 Appendix
Appendix
Glossary
Abatement – Reduction of estimated market value,
taxes, costs, penalties or interest which have been
erroneously or unjustly paid.
Adjourn – The final closing of a meeting, such as a
meeting of the board of directors or any official
gathering. Adjourn is not to be confused with
“recess,” which means the meeting will break and
then continue at a later time.
Agricultural property – Property including the
house, garage, farm buildings and farm land used
for raising or cultivating agricultural products for
sale. Defined in Minnesota Statutes as Class 2a
agricultural land. An agricultural homestead is class
2a land that is homesteaded along with any
contiguous class 2b rural vacant land under the
same ownership. Agricultural property may also be
non-homestead.
Apartment property – Residential real estate
containing four or more units and used or held for
use by the owner or by the tenants or lessees of the
owner as a residence for rental periods of 30 days or
more. Defined in Minnesota Statutes as Class 4a
rental housing.
City council – The legislative body of a city. The
city council in a standard plan city consists of an
elected mayor, an elected clerk, and three or five
elected council members (which means these cities
have either five or seven voting members). In
optional plan cities, the city council consists of an
elected mayor and four or six elected council
members (which means these cities have either five
or seven voting members). In all statutory cities, the
mayor is a voting member of the council and must
be counted when determining whether a quorum is
present. Charter cities may provide that a different
number of council members constitutes a quorum.
Class rate – The percent of market value (as
defined in Minnesota Statutes) used to determine a
property’s net tax capacity.
Classification – The assessor assigns a statutorily-
defined classification to all property based upon the use
of the property on January 2 of each year. Examples of
Minnesota property classes include residential,
agricultural, commercial-industrial, apartment and
seasonal residential recreational.
Commercial-industrial property – Property used for
commercial or industrial purposes such as retail or
manufacturing. Defined in Minnesota Statutes as Class
3a commercial and industrial property.
Comparable property sales – Properties that have
recently been sold which have similar property
characteristics to a property being appraised.
Computer-assisted mass appraisal (CAMA)
system – A computerized system that uses statistical
analysis to generate estimates of property value.
County Board of Appeal and Equalization – A
group of people, typically the county commissioners
and the county auditor, authorized to examine, compare
and equalize property assessments so that each parcel in
the county is listed at its market value.
Estimated market value (EMV) – This is the value
that the assessor estimates the property would likely sell
for on the open market. This value may be appealed to
the Local Board of Appeal and Equalization, County
Board of Appeal and Equalization or Tax Court.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 38
30 Appendix
Exempt property – Property that is not subject to
taxation. All property, real and personal, in the state is
taxable except that which by law is exempt. Exemption
laws are to be construed strictly, not broadly. Local or
County Boards of Appeal and Equalization cannot
grant an exemption. Ownership, use and necessity of
ownership are key elements reviewed by the assessor
when determining exemption.
Highest and best use – “A principle of appraisal and
assessment requiring that each property be appraised as
though it were being put to its most profitable use
(highest possible present net worth), given probable
legal, physical, and financial constraints.” Glossary for
Property Appraisal and Assessment, International
Association of Assessing Officers, 1997.
Home rule charter city – Any city which has adopted
a home rule charter pursuant to the constitution and
laws; “statutory city” means any city which has not
adopted such a charter.
Homestead – Property that is occupied as the principal
place of residence by the owner is eligible to receive the
homestead status and the market value homestead
exclusion. Property may be a residential or agricultural
homestead.
Local assessor – An assessor who works on a contract
basis for a township or city.
Local Board of Appeal and Equalization – A group
of people, typically the town board or city council,
authorized to determine whether the assessor has
properly valued and classified all parcels of taxable
property located within the district.
Mass appraisal – The process of valuing a group of
properties as of a given date using standard methods
and statistical testing.
Median sales ratio – The midpoint (middle) of all the
individual ratios that are included for that property type in
that city or township for a sales ratio study period when
they are put in order. In Minnesota, the median sales ratio
should be between 90% and 105%. This means that
when all sales from that study period for that property
type in that city or township are put in order from smallest
to largest ratio, the middle ratio should be between 90%
and 105%.
Net tax capacity – Determined by multiplying the class
rate by the taxable market value for each property.
Notice of Valuation and Classification – A notice
mailed to taxpayers at least 10 days prior to the Local
Board of Appeal and Equalization (generally in February
or March) to inform them of their property values and
classifications for the current assessment year. Minimally,
the notice must include: the estimated market value for
the current and prior assessment; the value of any new
improvements; the amount qualifying for any deferral or
exclusion; the taxable market value for the current and
prior assessment; the property classification for the
current and prior assessment; the assessor's office address,
phone number, website and time when property
information can be viewed by the public; and the dates,
places and times set for the meetings of the Local Board
of Appeal and Equalization, any open book meetings and
the County Board of Appeal and Equalization.
Open book meeting – A meeting held by the county
assessor’s office to discuss property owners’ questions
regarding their assessments. The one-on-one meeting
usually is held as an alternative to the Local Board of
Appeal and Equalization.
Property characteristics – Distinguishing interior and
exterior features of a property and its surroundings such
as its: location and neighborhood; public or private
restrictions on the property; building type and size;
quality of construction; age of the structure; physical
condition of the structure; and the total number of rooms,
bedrooms and bathrooms.
Quorum – The number of people required to be present
before the members at a meeting can conduct business.
For the Local Board of Appeal and Equalization, a
majority of the voting members of the board must be
present to meet the quorum requirement.
Recess – A break in a meeting or proceedings until a
certain date and time. Recess is not to be confused with
“adjournment,” which ends the proceedings.
Residential property – Property that is residential in
nature consisting of the house, garage and land including
homestead and non-homestead single-family houses,
duplexes and triplexes. Defined in Minnesota Statutes as
Class 1a residential homestead, Class 1b disabled
homestead, Class 4b(1) residential real estate containing
less than four units that does not qualify as class 4bb,
Class 4bb(1) nonhomestead residential real estate
containing one unit, other than seasonal residential
recreational property; and Class 4bb(2) a single family
dwelling, garage, and surrounding one acre of property on
a nonhomestead farm.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 39
31 Appendix
Rural vacant land – Property that is unplatted, rural in
character and not improved with a structure unless it is a
minor, ancillary and nonresidential structure. Defined in
Minnesota Statutes as Class 2b rural vacant land. Rural
vacant land may be part of an agricultural homestead if it
is contiguous to class 2a agricultural land under the same
ownership.
Sales ratio study – A tool assessors use to help determine
values for properties. The sales ratio study period includes
sales that have occurred in a twelve month period. For the
January 2, 2013 assessment, the assessor reviews sales
that occur between October 1, 2011 and September 30,
2012. A sales ratio shows the relationship between the
EMV and the sale price of a property. It is the EMV
divided by the sales price. In Minnesota, six sales of each
property type in each jurisdiction are required to complete
a sales ratio study. One sale is not enough evidence for
the assessor to change values. Assessors look at all sales
in a study to arrive at conclusions and value estimates in
mass.
Seasonal residential recreational property – Real
property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real
property devoted to temporary and seasonal residential
occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year
preceding the year of assessment. Defined in Minnesota
Statutes as Class 4c(1) commercial or noncommercial
seasonal residential recreational property.
Special Board of Equalization – A specially-appointed
board established by the governing body to complete the
appeals and equalization duties delegated to it. One
member of the board must be an appraiser, real estate
agent, or other person familiar with proper valuations in
the assessment district.
State Board of Equalization – The Commissioner of
Revenue, serving as the State Board of Equalization,
ensures assessors follow approved appraisal and
assessment practices and reviews the results of the
assessor’s work in estimating values. This board meets
in June of every year. The board can increase or
decrease values to bring about equalization on a
county-, city- and township-wide basis as well as across
county lines to ensure a fair valuation process across
taxing districts, county lines and by property type.
Statutory city – Any city which has not adopted a home
rule charter pursuant to the constitution and laws; the term
“home rule charter city” means any city which has
adopted such a charter.
Tax Court – A specific court established to hear and
determine all questions of law and fact arising under the
tax laws of the state. The Tax Court has statewide
jurisdiction. Except for an appeal to the Supreme Court,
the Tax Court is the sole and final authority. The
petitioner must file in Tax Court on or before April 30 of
the year in which the tax is payable, not the year of the
assessment.
Tax levy – The total amount of property tax revenue
needed to meet a jurisdiction’s budget requirements.
Tax rate – Determined by taking the total amount of
property tax revenue needed (tax levy) divided by the
total net tax capacity of all taxable property within the
taxing jurisdiction.
Tax statement – Mailed to taxpayers in March of each
year, the property tax statement includes the actual tax
amounts to be paid in the current year. Property tax
statements for manufactured homes assessed as personal
property are mailed in May of each year.
Taxable market value (TMV) – This is the value that
property taxes are actually based on, after all reductions,
exclusions, exemptions and deferrals.
Town board – The supervisors of a town constitute
the town board. Unless provided otherwise, there are
three supervisors. Towns operating under “option A”
have five supervisors.
Truth in Taxation Notice – Mailed to taxpayers in
November of each year, the truth in taxation notice
contains the estimated tax amounts for the following year.
The statement also includes current year tax amounts for
comparison purposes and notice of budget meetings.
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 40
32 Appendix
Duties of local and county boards
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 41
33 Appendix
How value changes affect taxes
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 42
34 Appendix
Recommended format to notify appellants of board decisions
[DATE]
{Insert property owner’s name}
{Address line 1}
{Address line 2}
Dear {Insert name here}:
This letter is to acknowledge an appeal to the {insert jurisdiction here} Board of Appeal and Equalization regarding the
value or classification of parcel number {Insert parcel number here}.
The local board considered the appeal and any information presented (or supplied in the case of written appeals). As a
result of its review, the local board voted to:
______ Make no change to the {YEAR} value or classification
______ Change the {YEAR} classification from _____________________ to ____________________
______ Reduce the {YEAR} value from $ ___________________ to $ ___________________
______ Increase the {YEAR} value from $ ___________________ to $ ___________________
Comments:
If you are not satisfied with the outcome of the Board of Appeal and Equalization, you may appeal to Tax Court [local
boards only: You may also appeal to the County Board of Appeal and Equalization. {Add details about scheduling
appointments or how to appeal to the county board.}]. For more information on the Tax Court, go to
http://www.taxcourt.state.mn.us.
Sincerely,
{insert name}
{insert title}
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 43
35 Appendix
Local Board of Appeal and Equalization Trained Member Certification Form
Minnesota Statute 274.014 subdivision 3 states:
“Any city or town that conducts local boards of appeal and equalization meetings must provide proof to the
county assessor by December 1, 2006, and each year thereafter, that it is in compliance with the requirements of
subdivision 2. Beginning in 2006, this notice must also verify that there was a quorum of voting members at
each meeting of the board of appeal and equalization in the current year [emphasis added]…”
Please select one of the options below and fill in the information that is needed. Upon completion please email or fax the
completed form to the county assessor no later than December 1 of the current year. A DOR Property Tax Compliance
Officer will be reviewing the files to be sure that all jurisdictions are complying with the submission of these forms by the
December 1st deadline. If the form is not returned by December 1st, the board of appeal powers will be transferred
to the county for the following assessment year.
Option 1:
As of December 1 of the current year, _______________________________________has verified that at
(Jurisdiction Name: ex – City of Rice/Bear Twp)
least one board member has attended the Board of Appeal and Equalization training in the past four years.
_____________________________________ _____________________
(Name of one trained board member) (Training expiration date)
_______________________________ _____________
(Jurisdiction Clerk/Admin Signature) Date
___________________________ ___________
(County Assessor Signature) Date
Option 2:
As of December 1 of the current year, _________________________________________ will not have a
(Jurisdiction Name: ex – City of Rice/Bear Twp) trained board member therefore, we understand that under Minnesota Statute 274.014 subdivision 3 the jurisdiction will
lose its board of appeal and equalization powers beginning with the following year’s assessment. The board of appeal
powers will be transferred to the county until a resolution and proof of training are provided to the county assessor.
_______________________________ ______________
(Jurisdiction Clerk/Admin Signature) Date
___________________________ ___________
(County Assessor Signature) Date
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 44
36 Appendix
County Board of Appeal and Equalization Trained Member Certification Form
Minnesota Statute 274.135 subdivision 3 states:
“Any county that conducts county boards of appeal and equalization meetings must provide proof to the
commissioner by December 1, 2009, and each year thereafter, that it is in compliance with the requirements of
subdivision 2. Beginning in 2009, this notice must also verify that there was a quorum of voting members at
each meeting of the board of appeal and equalization in the current year [emphasis added]…”
Please select one of the two options below and fill in the information that is needed. Upon completion please email the
completed form to Ricky Perez at ricky.perez@state.mn.us no later than December 1 of the current year. If the form
is not returned by December 1st, the board of appeal powers will be transferred to a special board for the following
assessment year
Option 1:
As of December 1 of the current year, ___________________________________, has verified that at
(County Name: ex- Washington County)
least one board member has attended the Board of Appeal and Equalization training in the past four years.
_____________________________________ _____________________
(Name of one trained board member) (Training expiration date)
_________________________ ___________
(County Auditor) Date
Option 2:
As of December 1 of the current year, __________________________________ will not have a
(County Name: ex – Washington County) trained board member therefore, we understand that under Minnesota Statute 274.135, subdivision 3 the county will lose
its board of appeal and equalization powers beginning with the following year’s assessment. The board of appeal powers
will be transferred to the special board of equalization.
If the county board or special board does not meet the quorum and training requirements then that person may appeal to
the commissioner of revenue. The commissioner must charge and bill the county where the property is located $500.00 for
each tax parcel that is appealed.
___________________________ ___________
(County Auditor) Date
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 45
37 Appendix
Frequently asked questions by board members
What is the purpose of the Board of Appeal
and Equalization?
One characteristic of the valuation (and to a lesser extent
the classification) part of the property tax process is that
there are subjective elements involved. Both mass
appraisal and independent appraisal are inexact sciences.
The property tax system has a method for property
owners to appeal the decisions made by the assessor.
Effective actions taken by the Board of Appeal and
Equalization may potentially make a direct
contribution to attaining assessment equality. Any
value reductions have the effect of shifting the
property tax burden to other properties, so any changes
made by the board must be justified.
On what basis should I make my decisions as
a board member?
You have an obligation to objectively listen to the
property owner’s appeal, which should focus on the
market value and facts that impact the market value or
the facts that focus on the classification. It is assumed
that the assessor has valued the property correctly. The
burden of proof rests with the property owner who must
present factual evidence to disprove the assessor’s value.
For example, if the property owner states that his/her
home is overvalued because it is located on a busy street,
the property owner should present comparable sales also
located on that street. The board would want to take that
information under advisement. Then the board should
ask for information from the assessor concerning how
the value of the property was determined. Again, any
decisions made by the board should be based on facts
because any reductions have the effect of shifting the
property tax burden to other properties. It is important
to keep in mind that all decisions must meet statutory
guidelines as well.
What options do property owners have
if they are not satisfied with the
board’s decision?
For local boards¸ the property owner can:
appeal by letter, representative or in person to the
County Board of Appeal and Equalization (a
property owner must appeal to the local board to
be able to appeal to the county board); and/or
appeal to Tax Court.
For county boards, the property owner can appeal to
Tax Court.
What factors make up the valuation of
property?
The critical question is whether the property is valued in
excess of market value or a theoretical selling price as of
January 2 of each year. The components that make up
the market value are developed from vacant land sales,
replacement cost schedules, abstraction from sales data,
and other sources. The mass appraisal system includes
both quantitative and qualitative variables.
Quantitative variables are objective characteristics,
such as square footage, number of bathrooms or
fireplaces, and other straightforward items. It is
important that the property description is accurate to
allow for a fair application of the mass appraisal
schedule to the property.
Qualitative variables are more subjective in
nature. They include the grading (or estimating
the construction quality) of the property which
always involves judgment.
Why do values change?
There are basically three reasons why values change.
Appreciation or depreciation in the real estate
market. The assessor’s office collects information on
the local real estate market and adjusts property values
annually in order to reflect the market. The requirement
that the assessor actually view properties once every five
years does not limit the assessor to revaluing properties
once every five years. The assessor is required to review
property values and classifications each year.
Physical changes to improvements on the property.
Improvements such as building a deck or finishing the
basement increase the value of the property, and the
assessor would adjust the value to reflect these
improvements. Similarly, the assessor should adjust the
value for any structural components that may be removed.
Equalization process. The Commissioner of Revenue,
acting as the State Board of Equalization, has the
authority to increase or decrease values to bring about
equalization. The orders are usually on a county-, city-,
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 46
38 Appendix
or township-wide basis for a particular classification of
property. All State Board orders must be implemented
by the county for the current assessment year.
The equalization process is designed not only to equalize
values on a county-, city-, and township-wide basis but
also to equalize values across county lines to ensure a
fair valuation process across taxing districts, county
lines, and by property type. State Board orders are
implemented only after a review of values and sales
ratios, discussions with the county assessors in the
county affected by the State Board orders, county
assessors in adjacent counties and the Commissioner of
Revenue.
Frequently asked questions by property owners
Is it legal for the assessor to increase my value
so much in one year?
Yes. The assessor must value property at market value
each year. Property values change continuously with
changing economic conditions. There is no limit to the
amount of increase or decrease in estimated market values
in a given year. The assessor is required to review the
values and classifications as of January 2 of each year.
Why are my taxes so high?
Taxes are not within the authority of the board. The
property tax on a specific parcel is based on its market
value, property class, the total value of all property
within the taxing area, and the budget requirements of
all local government units located within the taxing area.
Only concerns relating to the current year valuation
and/or classification may be heard by the board.
Will I be taxed out of my home?
The local board cannot reduce tax amounts. There is
relief for property classified as homestead. The market
value homestead exclusion may be applied. In addition
to the homestead classification, Minnesota provides
property tax relief to homeowners through the Property
Tax Refund program. This program has been around for
many years and includes two different kinds of refunds:
the regular refund and the special refund. The regular
refund was designed to relieve the burden on
homeowners whose property taxes are high in relation to
their income. The special refund is for homeowners who
experience a property tax increase of more than 12
percent (and at least $100), regardless of their income
level. Both of these refunds must be applied for using
form M1PR from the Minnesota Department of
Revenue. There are specific requirements for each
refund, which are included in the M1PR instructions.
In addition, qualifying individuals may participate in the
Senior Citizen Property Tax Deferral program. This is a
deferral of tax, not a reduction. The taxes accumulate
along with interest at a rate not to exceed 5 percent and a
lien is attached to the property.
Forms and instructions for the Property Tax Refund and
Senior Citizen Property Tax Deferral program are
available on the Department of Revenue website
(http://www.revenue.state.mn.us).
Handouts for property owners
The following pages contain information for property
owners to help them with the appeal process. You
may photocopy these pages and provide them to
property owners who seek to appeal their property
value or classification.
The “Appealing the value and classification of your
property,” “Preparing an appeal to your Local and
County Boards of Appeal and Equalization” and “My
house is worth what?” fact sheets also are on the
Department of Revenue website
(http://www.revenue.state.mn.us).
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 47
Insert fact sheet 1 (front)
LBAE Meeting of April 28, 2014
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Insert fact sheet 1 (back)
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 49
Insert fact sheet 10 (front)
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 50
Insert fact sheet 10 (back)
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 51
Insert fact sheet 14 (front)
LBAE Meeting of April 28, 2014
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Title: 2014 Local Board of Appeal & Equalization Page 53
Notes
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Notes
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Title: 2014 Local Board of Appeal & Equalization Page 55
Notes
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Notes
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Minnesota Department of Revenue
Property Tax Division
www.revenue.state.mn.us
2014
LBAE Meeting of April 28, 2014
Title: 2014 Local Board of Appeal & Equalization Page 59
Meeting: Study Session
Meeting Date: April 28, 2014
Discussion Item: 1
EXECUTIVE SUMMARY
TITLE: Future Study Session Agenda Planning – May 5 and 12, 2014
RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for
the Special Study Session scheduled for May 5, 2014 and the regularly scheduled Study Session
on May 12, 2014.
POLICY CONSIDERATION: Does the Council agree with the agendas as proposed?
SUMMARY: At each study session approximately five minutes are set aside to discuss the next
study session agenda. For this purpose, attached please find the proposed discussion items for
the Special Study Session scheduled for May 5, 2014 and the regularly scheduled Study Session
on May 12, 2014.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – May 5 & 12, 2014
Prepared by: Debbie Fischer, Office Assistant
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 1) Page 2
Title: Future Study Session Agenda Planning – May 5 and 12, 2014
Special Study Session, May 5, 2014 – 6:15 p.m.
Tentative Discussion Items
1. Southwest LRT Update – Community Development (60 minutes)
Discuss the specifics of the SWLRT Preliminary Design Plans in preparation for the City
Council’s vote on Municipal Consent in June. The discussion will start with the plans for the
Louisiana Station area, proceed to the Wooddale Station area and finish with Beltline Station
area.
Special Study Session Cont., May 5, 2014 – Immediately following City Council Meeting
2. Housing Policy – Community Development (60 minutes)
Continuation of discussion from April 21, 2014 Special Study Session.
Study Session, May 12, 2014 – Immediately following LBAE
(Councilmember Mavity Out)
Tentative Discussion Items
1. Future Study Session Agenda Planning – Administrative Services (5 minutes)
2. Southwest LRT Update – Community Development (60 minutes)
Continued discussion of the specifics of the SWLRT Preliminary Design Plans in preparation
for the City Council’s vote on Municipal Consent in June.
Communications/Meeting Check-In – Administrative Services (5 minutes)
Time for communications between staff and Council will be set aside on every study session
agenda for the purposes of information sharing.
Meeting: Study Session
Meeting Date: April 28, 2014
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Community Education Advisory Council (CEAC)
RECOMMENDED ACTION: Council is asked to accept the report from CEAC.
POLICY CONSIDERATION: None at this time.
SUMMARY: Lisa Greene, Community Education Director and Vice Chair of CEAC, will be
present at the Council meeting to give an overview of what the advisory council does and their
goals for 2014.
Councilmembers Gregg Lindberg and Tim Brausen are the City Councils appointed members to
CEAC.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
2012 – 2013 Annual Report
Prepared by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 2) Page 2
Title: Community Education Advisory Council (CEAC)
DISCUSSION
BACKGROUND: In Minnesota, all school districts that levy for Community Education
funding are required by Statute Section 124D.19 to have an Advisory Council.
124D.19 COMMUNITY EDUCATION PROGRAMS; ADVISORY COUNCIL.
Subdivision 1. Authorization.
Each school board may initiate a community education program in its district and provide for the
general supervision of the program. Each board may, as it considers appropriate, employ
community education staff to further the purposes of the community education program.
Subd. 2. Advisory council.
Each board must provide for an advisory council to consist of members who represent: various
service organizations; churches; public and nonpublic schools; local government including
elected officials; public and private nonprofit agencies serving youth and families; parents;
youth; park, recreation or forestry services of municipal or local government units located in
whole or in part within the boundaries of the school district; and any other groups participating in
the community education program in the school district.
Unique to St. Louis Park, the city and school district entered into a joint powers “Agreement
Between the City of St. Louis Park and Independent School District #283 Relating to Joint
Governance of Community Education.” This joint endeavor has been in place since the
establishment of a Community Education program in St. Louis Park in 1969.
CEAC’S MEMBERSHIP: Membership is divided into sectors representing different parts of
the community. The St. Louis Park City Council and St. Louis Park Public Schools School Board
appoint CEAC members. The following is a list of CEAC members and the sector they represent.
Bobbie Betz Service Organization
Sandy Johnson Non-profit Organization
Cailey Hanson-Mahoney Youth
Bob Ramsey Senior/Adult Service
Deb Danielson Local Business
Julia Ross At Large
Kristen Piper At-Large
Anthony Marrie At-Large
Shirley Zimmerman At-Large
Amy Burns At-Large
Joan Monicatti At-Large
Jim Beneke At-Large
Nick Jacobs At-Large
Jason West Operations and Recreation Appointee
Ken Morrison School Board Appointee
Karen Waters School Board Appointee
Gregg Lindberg City Council Appointee
Tim Brausen City Council Appointee
Study Session Meeting of April 28, 2014 (Item No. 2) Page 3
Title: Community Education Advisory Council (CEAC)
CEAC GOALS: In August, 2011 CEAC members attended a facilitated retreat to determine the
direction the council should take. At the retreat, membership decided to return to the roots of an
advisory council function. Four “Guiding Tenets” were created:
1. CEAC maintains lines of communication between Community Education and the
community.
2. CEAC is a sounding board for ideas and action.
3. CEAC provides feedback to Community Education program initiatives.
4. CEAC acts as an idea incubator.
To further this goal, Community Education department coordinators and people from community
organizations are invited to CEAC meetings to have a “conversation”. In this way, members
learn about what is happening in Community Education and the larger community and can
advise the Community Education Director.
PAST ACTIVITIES AND ACTIONS: One example of productive advising is when the
Community Education Early Learning department leadership came to talk with CEAC about
starting a strategic planning process. They needed to present their ideas to school district
leadership to get support. CEAC provided input into their presentation and made some
constructive changes. After Early Learning leadership presented the updated presentation to the
school Principals. They were pleasantly surprised that two of the Principals stepped up to say
they would relieve a Kindergarten teacher in their buildings so the teacher could attend the Early
Learning strategic planning meetings.
Other examples of productive conversations have been when the Adult Options in Education
Coordinator needed input on how to best market to our immigrant populations, when our Adult
Enrichment coordinator wanted to increase class participation, or when a Park Nicollet
Foundation staff person came to talk to us about how to best work with the Foundation. CEAC
also participated in West Metro Community Education Advisory Council meetings in 2013 and
2014 to get ideas from other school districts about how to better engage the community.
The Community Education Director finds that she receives valuable input into programming and
planning decisions because CEAC members are knowledgeable about Community Education
programs and the community.
FUTURE ACTIVITIES: CEAC had a retreat in August 2013 where it was decided that they
would look at partnering with other groups in the community where common cause may exist. A
joint CEAC/Human Rights Commission meeting will be held in May, 2014. They are also
considering meeting with the Education Sub-Committee of the Environmental and Sustainability
Commission. They still continue to have “conversations” to keep them informed about district,
city and community issues.
2012 - 2013 Annual Report
Our website offers current news and class offerings for all ages.
Visit www.slpcommunityed.com today to learn more about Community Education.
Volunteer Program reorganizes
For many years, the City of St. Louis Park and St. Louis Park Public Schools partnered to facilitate vol-
unteer recruitment, training and coordinating under one office, headed by Sarah Krzesowiak, who retired
December 31, 2012 after more than 30 years of service. Beginning January 1, 2013, Linda Asche, Com-
munity Education’s Adult Enrichment coordinator, assumed responsibilities for the school district portion
of the volunteer program, and Laura Ingebrigtson was hired as the volunteer coordinator for the City.
Program assistant Kathleen Huyck continues on staff in the school district volunteer office. Community
Education continues to oversee all programs for community volunteers in St. Louis Park Public Schools.
This spring, Cargill partnered with our district to support education and the environment. Over 80 volunteers worked on a number
of projects including the Middle School Days of Service, Track and Field Day at Peter Hobart, playground clean up at Lenox, and
classroom projects on the environment at Peter Hobart and Aquila.
2012-2013 ParticiPant information
Program ParticiPants
Adult Enrichment 4,829
Adult Options in Education / ESL 574
Aquatics 5,053
Creative Play / Preschool Enrichment 552
ECFE / Early Learning 2,149
Gymnastics 985
Kids’ Place (Pre-K & School Age) 778
Kindergarten Plus 134
Project SOAR (includes data from four-district consortium) 3,739
Senior Program 17,626
Summer Spark (youth summer enrichment)911
Volunteer Program 660
Youth Development 3,821
Youth Enrichment 1,314
Total program participants 43,125
Facilities Use (includes over 144 different community groups)300,653
ST. LOUIS PARK COMMUNITY EDUCATION INDEPENDENT SCHOOL DISTRICT 283
Community Education
Revenue Sources
Total Revenues – $5,773,569Based on Turnstile Count: Data from 2012-2013 Minnesota Department of Education Report
2012-13 COMMUNITY EDUCATION ADVISORY COUNCIL 2012-13 SCHOOL BOARD
Nancy Gores
Kenneth Morrison
Bruce Richardson
Larry Shapiro
Julie Sweitzer
Joe Tatalovich
Jim Yarosh
Debra Bowers, Ph. D., Supt.
2012-13 CITY COUNCIL
Steve Hallfin
Ann Mavity
Julia Ross
Sue Sanger
Sue Santa
Jake Spano
Jeff Jacobs, Mayor
Tom Harmening, City Manager
Lisa Abernathy
Jim Beneke
Bobbi Betz
Anita Bilden
Amy Burns
Nick Jacobs
Sandy Johnson
Gregg Lindberg
Anthony Marrie
Anne Mavity
Steve McCulloch
Joan Monicatti
Kristen Piper
Bob Ramsey
Julia Ross
Mark Schwartz
Joe Tatalovich
Shirley Zimmerman
Lisa Greene, Director
Mary Juberian, Manager Tuition & Fees – $ 3,411,407Local Sources (City/County funds plus local gifts & grants) – $ 920,850Federal Taxes – $ 26,313State Taxes & Aide – $ 1,414,999Study Session Meeting of April 28, 2014 (Item No. 2)
Title: Community Education Advisory Council (CEAC)Page 4
a message From Director
Lisa greene – Living, vital organizations
are always changing to meet the needs of their
customers and stakeholders. St. Louis Park
Community Education is no exception. In 2012-
13 we planned and implemented a number of
changes to better serve the community.
• Early Learning programs developed a plan to consolidate
early childhood programs to increase access and equity for
our youngest learners.
• Adult Enrichment and Senior Programs began jointly
marketing classes in the Community Education catalog
thereby increasing access to our adult programs.
• Our Youth Services department moved to the Middle School
to increase out-of-school-time offerings for this under-served
age group.
• Volunteers in the Park, serving both the city and school
district, separated, with each organization recruiting
volunteers to better serve their unique needs.
aDuLt Programs
Lifelong learning completes
ADULT ENRICHMENT – Serves lifelong learners of all
ages with courses covering a wide variety of topics such as
arts and crafts, fitness and nutrition, technology, dance, mu-
sic and more.
ADULT OPTIONS IN EDUCATION / Adult Basic
Education – AOIE provides a solid foundation of basic
education classes for adult students. Day and evening classes
focus on building reading comprehension, math, preparation
for GED Exam as well as speaking, listening, reading and
writing skills for non-native speakers in ESL classes. Aux-
iliary services are provided at Wayside Residential Center.
AOIE is a partnership between St. Louis Park, Hopkins and
Minnetonka Community Education.
PROJECT SOAR – This program for adults with disabili-
ties offers classes in a variety of social, recreational and en-
richment activities. Operates in partnership with Hopkins,
Minnetonka and Wayzata Community Education.
VOLUNTEER PROGRAM – Recruited and trained volun-
teers for the City and Schools through December 31, 2012.
Beginning January 1, 2013, Community Education assumed
responsibilities for the school district portion of the program,
and the city hired a volunteer coordinator for its initiatives.
Youth Programs
Creating building blocks for a healthy, happy life
YOUTH ENRICHMENT – Serves students in grades K-12
and their families with a variety of classes and extracurricu-
lar activities in areas such as arts, music, sports, fitness and
more.
YOUTH DEVELOPMENT – Brings students in grades
6-12 together to develop leadership skills through service
learning and volunteerism.
AQUATICS – Provides lessons for swimmers ages five
months through senior citizens, lap swimming opportunities,
and pool rental and synchronized swimming club coordina-
tion.
GYMNASTICS – Provides enrichment gymnastics classes
for participants ages 2-18, and prepares athletes for compe-
tition on the SLP High School team.
SUMMER SPARK – This program ensures continued
summer learning for students grades K-8 through enrich-
ment classes and activities.
KINDERGARTEN PLUS – This tuition-based, full-day
program at Susan Lindgren, Peter Hobart and PSI benefits
students with extended learning time with the same certified
kindergarten teacher all day. (All-day kindergarten is avail-
able at Aquila at no charge to families and is not administered
through Community Education.)
KIDS’ PLACE SCHOOL-AGE CHILD CARE – Offers
child care for school-age children, before and after school
and all day in the summer.
earLY Learning Programs
Preparing your child for success in school and life, beginning at birth
EARLY LEARNING – Classes serve children ages 3-5 with high-
quality learning and development for every child. As part of the
St. Louis Park Public Schools, Community Education Early Learn-
ing programs provide families with important first connections to
kindergarten and the community. Early Learning encompasses
programs formerly named: PALS, PALS+, First Steps, and Ready,
Set, Learn.
CREATIVE PLAY – Children ages 33 months-5 years participate
in school-readiness activities. Classes emphasize social skills and
constructive play.
EARLY CHILDHOOD FAMILY EDUCATION (ECFE) – Par -
ents and children, ages birth-5, play and learn together under the
guidance of a licensed early childhood teacher.
FAMILY LEARNING – While parents enrolled in Adult Basic
Education learn English or work on their GED, preschool children
learn in activities.
KIDS’ PLACE EARLY LEARNING – Provides a high quality
preschool experience within a full-day child care setting.
SLP Community Education also serves preschoolers with Aquatics,
Gymnastics and Kid Dance classes, all held at Central Community
Center.
senior Program
Learn & Laugh at Lenox!
The Senior Program, housed at Lenox Community Center, oper-
ates in partnership with the City of St. Louis Park. St. Louis Park
seniors are becoming tech savvy learning how to use iPhones, iPads,
digital cameras and more. If they need more individualized help the
Tuesday afternoon Computer Buddy group is available or they may
stop in to use open computer lab. The program marked the 150-
year anniversary of the Civil War with classes covering the Battle
of Chattanooga, the Vicksburg Campaign and Battle of Gettysburg
followed by a teacher-led visit to the Minnesota History Center for
a special Civil War Exhibit.
Study Session Meeting of April 28, 2014 (Item No. 2)
Title: Community Education Advisory Council (CEAC)Page 5
Meeting: Study Session
Meeting Date: April 28, 2014
Discussion Item: 3
EXECUTIVE SUMMARY
TITLE: Parks & Recreation Advisory Commission 2013 Annual Report and 2014 Work Plan
RECOMMENDED ACTION: This report summarizes work performed by the Parks and
Recreation Advisory Commission (“PRAC”) in 2013 and outlines the intentions of PRAC for
work to be performed in 2014.
POLICY CONSIDERATION: Are the actions of the PRAC in alignment with the expectations
of the City Council?
SUMMARY: The Parks and Recreation Advisory Commission considers matters pertaining to
long-range park and recreation plans and may offer recommendations in new development areas
in relation to park and recreation space. The City Council may request the Commission to study
and advise on other related items. The Commission consists of seven regular members and one
voting youth member. Meetings are held the third Wednesday of each month at 6:30 p.m.
In accordance with Council policy, the 2013 Annual Report and 2014 Work Plan are attached in
full for City Council review.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: PRAC 2013 Annual Report
PRAC 2014 Work Plan
Prepared by: Stacy Voelker, Administrative Secretary
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 3) Page 2
Title: Parks & Recreation Advisory Commission 2013 Annual Report and 2014 Work Plan
Parks and Recreation Advisory Commission (“PRAC”)
2013 Annual Report
The Parks and Recreation Advisory Commission Purpose:
The Commission shall study and consider all phases of public parks and recreation and
recommend to the City of St. Louis Park and Independent School District #283 a park and public
recreation program which best meets the needs of all residents of St. Louis Park.
2013 Parks and Recreation Advisory Commission
Tom Worthington, City Representative, Chair
George Hagemann, City Representative, Vice Chair
James Beneke, School Representative
Sophia Flumerfelt, Student Representative
George Foulkes, School Representative
Sarah Foulkes, City Representative
Elizabeth Griffin, City Representative
Kirk Hawkinson, City Representative
Operations and Recreation Department Staff
Cindy Walsh, Director
Rick Beane, Park Superintendent
Jason West, Recreation Superintendent
Jason Eisold, Rec Center Manager
Mark Oestreich, Westwood Hills Nature Center Manager
Jim Vaughan, Environmental Coordinator
Stacy Voelker, Administrative Secretary
2013 Highlights
Youth Association and city organization representatives attended Commission meetings and
provided updates from their associations or organizations. Ideas to foster better relationships
with participants, other associations and the city were also discussed. In 2013, the Commission
met with the Historical Society, Friends of the Arts, Soccer Association, Baseball Association,
Little League Baseball and Community Education.
The Commission reviewed and accepted park and/or trail dedication fees on three development
proposals during the year. The Planning Commission presented the Eliot School Apartment
proposal which would bring in $210,000, a multiple-family housing proposal at 5245 Wayzata
Boulevard by DLC Residential in an amount of $35,550, and a multiple-family housing proposal
at 3998 Wooddale Avenue by Wooddale Flats, LLC in an amount of $56,925.
The City entered into an agreement with Julee Quarve-Peterson, Inc. to develop a plan to get city
parks up to American’s with Disabilities code. The Commission agreed parks need to be
reviewed to ensure compliant with the Act. The plan will be spread over a few years to assist in
budgeting.
Lisa Greene, Director of Community Education, visited with the Parks and Recreation
Commission at their October, 2013 meeting. The Commission reviewed and discussed various
topics with Ms. Greene including their annual report, facility usage and programs offered.
Study Session Meeting of April 28, 2014 (Item No. 3) Page 3
Title: Parks & Recreation Advisory Commission 2013 Annual Report and 2014 Work Plan
The Commission kept apprised of the Highway 100 widening project slated to begin in 2014.
One of the Commission members is on the bridge committee representing the Commission. The
trail and sidewalk plan was also reviewed while discussion the improvements to Highway 100.
The Commission would like to ensure adequate trails are included in the project.
The potential Southwest LRT line was discussed with the Commission. Members viewed various
options to ensure the bridges replaced by the Highway 100 project will be adequate if the
proposed line is approved.
An Environment and Sustainability Task Force was created in early 2013 to review the need for
a Commission to study and review environmental and sustainability items. The Parks and
Recreation Advisory Commission supported the Task Force’s decision to add an Environmental
and Sustainability Commission.
Following the remeandering of Minnehaha Creek, the Commission reviewed landscaping and
trail work that was completed in 2013. The annual Minnehaha Creek cleanup was held on
Saturday, April 27. The Commission and other volunteers cleaned up the creek area by Breamer
Bank and the Knollwood canoe landing area.
The Community Recreation Facilities Task Force concluded their role and Hammel, Green and
Abrahamson, Inc. were hired to provide a cost analysis on a potential Community Center. The
Commission was kept apprised of various aspects of the project throughout the year.
Members of the community proposed the City name the field at Dakota Park Derrick Keller
field. Derrick Keller, a young man from St. Louis Park, passed away after a courageous battle
with leukemia. Derrick was an upstanding mentor and volunteer in the community. The
Commission recommended acceptance of the proposal which was then approved by the City
Council January 7, 2013. The scoreboard was installed then dedicated to Derrick Keller on May
22, 2014.
Commission members continue to review and discuss art pieces and proposals throughout the
city.
Throughout the year, staff presented and discussed Capital Improvement Projects with the
Commission.
Study Session Meeting of April 28, 2014 (Item No. 3) Page 4
Title: Parks & Recreation Advisory Commission 2013 Annual Report and 2014 Work Plan
2014 Parks and Recreation Advisory Commission
James Beneke, School Representative, Chair
Elizabeth Griffin, City Representative, Vice Chair
George Foulkes, School Representative
Sarah Foulkes, City Representative
George Hagemann, City Representative
Kirk Hawkinson, City Representative
Tom Worthington, City Representative
Vacant, Student Representative
2014 Goals
American’s with Disabilities Act Compliance: Involvement in the review of park sites and
movement to comply with applicable codes, laws and design guidelines pertaining to
accessibility for persons with disabilities.
Community Group Relationships: Invite each association to their monthly meetings to
continue a positive relationship. Host a joint meeting with CEAC to explore common goals.
Assist in facilitating interested groups and other park and recreation users (i.e. Friends of the
Arts, Off-Leash Dog Park users, Historical Society, etc.). Look at annual participation
numbers for youth athletics to compare numbers from year to year and establish trends.
Community Recreation Facility: Involvement in the ongoing exploration of a city community
center facility.
Education: Meet with other commissions as appropriate and inform of other city initiatives
(i.e. trails and sidewalk CIP).
Environmental Stewardship: Connect people in the community with emphasis on
environmental items such as organizing the annual Minnehaha Creek Clean up and buckthorn
removal. Discuss environmental issues as they arise.
Support City Initiatives: Meet jointly with other Commissions as appropriate to explore joint
projects or initiatives. Support City staff in various city-wide initiatives (i.e. Connect the
Park, Health in the Park).
Recreation Resources: Invite Council to participate in exploring the city’s recreation
resources via a bike ride.
Staff Appreciation Luncheon: Serve an appreciation luncheon for staff.
Trails and Sidewalks: Be involved in the further study and exploration of trails and sidewalks
in the City to further the desires of the residents as stated in the Community Recreation
Study.
Parks and Recreation Advisory
Commission 2014 Goals
Meeting: Study Session
Meeting Date: April 28, 2014
Discussion Item: 4
EXECUTIVE SUMMARY
TITLE: Update on Community Center Project
RECOMMENDED ACTION: Staff desires direction on the policy questions noted below.
POLICY CONSIDERATION: Based on the information provided in this report staff desires
direction on how Council might wish to proceed. Options include:
• Table this item until a later date when more information is known about obligations the
City may face for projects such as SWLRT.
• Continue to move forward with the project by going to schematic design on one or all of
the phases listed, including engineering, soils and survey work.
• Continue to move forward on one or all of the phases by entering into schematic design
without engineering. This will provide more information on building layout and schematic
drawings but not detailed engineering. This is the least costly way to continue to move
ahead.
SUMMARY: The City Council reviewed the report from Hammel, Green and Abrahamson, Inc.
(“HGA”) at their July 22, 2013 Study Session. Victor Pechaty, Vice President of HGA, and
Cindy Walsh, Director of Operations and Recreation, presented an estimate of capital costs for
the construction of the building, operating cost estimates, revenue projections, and concept
designs for two sites: the Wolfe Park/Rec Center site and the Hwy 100/36th Street site.
At that meeting, Council came to the consensus that the preferred location was the Wolfe
Park/Rec Center site because of cost, overall fit in the area, and synergy with activities already
going on in Wolfe Park and at the Rec Center. Council also directed that further work be done on
the architectural design along with further financial analysis. At the October 14 Study Session
the Council directed staff to return to the Council in six months for further discussion. This
direction related in part to concerns about the financial obligations the City may face relative to
SWLRT.
FINANCIAL OR BUDGET CONSIDERATION: From the analysis provided by HGA, the
construction of a community center that includes all of the previously identified program
components would cost in the range of $30-50 million, depending on what is built. The assumed
source of funding for a project such as this would be the issuance of General Obligation bonds.
The cost of the project could be decreased by building only a portion of the program content or
by constructing it in phases.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Site Plan
Prepared by: Cindy Walsh, Director of Operations and Recreation
Brian A. Swanson, Controller
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 4) Page 2
Title: Update on Community Center Project
DISCUSSION
BACKGROUND: Hammel, Green and Abrahamson, Inc. (HGA) has acted as the consultant to
assist in the further assessment of a community center project. They have experience in
designing and building community centers around the metro area as well as other states.
PRESENT CONSIDERATIONS: The building design and cost analysis were based on
recommendations from the Task Force and include all of the program components that were
desired by the community.
PROGRAM COMPONENT ASSUMPTIONS: The following program components were
recommended by the Task Force. The data that the Task Force used came from the two surveys
that were done in the community. During this phase of planning staff and the consultant went
through each component to ensure allocation of appropriate space and amenities associated with
each of the items. The following is a list of amenities included in the current analysis:
Gymnasium
The gym is proposed to hold two full-size floors with a drop down curtain in the middle
separating them. There will be a set of bleachers that pull out from the wall on each side. At
this time we are considering a multi-purpose poured floor rather than a traditional wood
floor. There are two reasons for this. First, it is less expensive to build and less expensive to
maintain. Second, it can be used for multi-purpose events including all sports, tricycles and
other equipment used for children events. It can also be used for special events where tables
and chairs are set up without worrying about scratching the wood floors. Staff envisions
programming the gyms as well as having them available for drop-in basketball. The current
gyms in the schools are overused by traveling sports so there is no time for kids and adults to
drop-in and play. We would also like to look at an area in the back of one of the courts where
we could drop in a batting cage similar to what Chaska and other communities do in their
gymnasiums.
Aquatics
The trend in pool construction is to have areas for lap swimming, deep water and leisure/fun
areas. To accommodate that, a lap pool is proposed with six lanes that would have deep water
at one end. The deep water could be used for various events (scuba diving classes, etc.) as
well as hold a diving board and a climbing wall. The leisure pool would have youth play
features and slides with a zero depth entry area. An ADA accessible ramp is recommended
for the lap pool. That will allow all ages and abilities access to the pool as well as allow us to
hold specialty classes for people with MS or those recovering from surgeries. This is another
reason we are exploring a partnership with a physical therapy group. Swimming lessons
could be held at either or both pools depending on the age of kids. At this time, Community
Education offers the swimming lessons at the schools. We would explore a partnership with
them. Because of the cleaning issues associated with a hot tub or spa, staff is not
recommending one for this facility.
Drop-in Child Care
This child care is only for parents and care givers who are using the facility. This is a facility
that can be used by people who are at the building for a period of 1 - 2 hours. We are not
proposing full-time day care.
Study Session Meeting of April 28, 2014 (Item No. 4) Page 3
Title: Update on Community Center Project
Community Room
The capacity for this room wasn’t fully defined in the Task Force process. From the feedback
received from the Council and residents, staff is proposing a room with a capacity of
approximately 250 people. The proposed room would be approximately 4,000 - 4,500 square
feet and hold 55 - 60 round tables. A caterer’s kitchen will likely need to be attached so that
the room can be used by a variety of groups. This room can be reserved for a variety of
functions and events. The Banquet Room at the Rec Center holds up to 160 people. We
receive requests for various events that we are unable to accommodate because of the current
size of the Banquet Room. Staff recommends that this room be designed as a larger room to
allow for other uses.
Commons/Gathering Place
This would be near the front entrance and serve as a gathering place for people in the
community. The furniture would be stationary. A coffee shop/café would be adjacent to this
space.
Kid’s Play Area
The Task Force discussed this being adjacent to the drop-in day care. It was proposed to have
a climbing stationary feature along with a large motor play area with a variety of toys for
kids to play with.
Track
The goal is to make this as long as possible so there are fewer laps to the mile. The track is
shown above the gymnasium and fitness room.
Fitness
The two components of fitness are the exercise equipment and fitness studios where classes
are held. Since the trends in fitness classes change, we want to be able to adapt to those new
classes. We are proposing three rooms: large, medium and small to accommodate a variety of
classes. Actual sizes of the rooms are still being researched. Appropriate storage needs to be
adjacent to the rooms to hold equipment such as mats, balls, bikes, etc.
Party Rooms
One of the biggest revenue generators in other community centers is the ability to hold
birthday parties. Staff is proposing party rooms near the pool and possibly near the Kid’s
Play area.
“Back of House” areas
While the Task Force did an excellent job of synthesizing the survey data and developing
program content, they didn’t spend time on the support areas that make the community center
work. It was understood that this phase of planning would do that. HGA has assessed the
storage needs as well as rooms to hold the mechanical systems, size of locker rooms, number
of bathroom stalls, and length/width of hallways.
Concept Facility Design and Site Analysis
The cost for the designs is more than originally anticipated largely due to the need for
ramped parking because of the site constraints. At this time, all of the costs are included in
the cost estimate including some inflationary costs taking into consideration that this project
would not be built immediately. The only unknown cost that is NOT included in the cost
estimate would relate to soil conditions and the removal of hazardous material.
Study Session Meeting of April 28, 2014 (Item No. 4) Page 4
Title: Update on Community Center Project
Although HGA created a concept design and site analysis on the two sites, per Council
direction, staff has focused its energies on the Wolfe Park/Rec Center site. It was decided
that the scenario that included a community room on the Melrose Site was too expensive to
consider due to the need for a skyway to be constructed over 36th street in order to access the
site from the rest of the Community Center. Under this scenario the basketball court and sand
volleyball court would have to be relocated to the site near the Melrose Center.
ESTIMATED OPERATING COSTS: Staff has worked with the firm of Ballard & King to
assist with an Operating Analysis estimate. Jeff King took the program components outlined in
this report to design an operating budget and revenue projections. Jeff King has estimated
expense and revenue projections for many community centers throughout the United States. The
annual expenses to operate a facility of this size are estimated to be $1,825,080. That includes
the anticipated increase in full time staff as well as part time staff, utilities, program expenses,
supplies and other miscellaneous items needed to run a facility.
The corresponding revenue projections on an annual basis are estimated to be $1,197,142. The
revenue projections include memberships and daily admissions (anticipating several options) as
well as rental revenue obtained from the community room. The difference is ($627,938). The
anticipated recovery rate is 66%.
Staff also explored the maintenance/operating expenses for parking ramps. Although we do not
anticipate much for maintenance costs the first 1 - 5 years (with the exception of snow removal),
the annual maintenance for parking ramps is approximately $120-$130 per stall per year. If we
are looking at 500 - 550 stalls that is $60,000 - $71,500 per year in ramp maintenance expenses
(plowing, crack sealing, painting, lighting, etc.).
POSSIBLE PHASING SCENARIOS: The building could be planned and constructed in
phases. Future phases of the building could be added at any time. The attached diagram shows
the locations for the possible phases as well as how the parking ramp could be phased in. It is
possible that Council could decide to start with Phase 1 and not build the remaining phases.
Likewise, the other phases could be planned so that they could be added on at any time. The cost
estimates are based on construction costs for 2016. Contingencies are built into these costs. The
only cost not accounted for is soils correction and potential removal of any contaminated soils.
As part of the next step (if any) staff suggests soils and survey work so that we know what costs
would be associated with this. Staff is suggesting the following phasing scenarios:
Phase 1: Gymnasium and dry land wellness components (gym, locker rooms, drop-in child
care, kids play area, fitness equipment and fitness group exercise rooms, lobby, and
community gathering commons). Also included in this is phase 1 of parking ramp. The cost
for Phase 1 is $29,512,655. The parking ramp portion of that is $8,630,092.
Phase 2: Community Room/Banquet meeting room (meeting room to hold 250 people for
large events). Our current banquet room can accommodate 160 people. The idea is to have a
larger meeting room in our City. We do not need another smaller space like the one we have.
With the build out of the meeting space, we would need to add more parking so Phase 2
includes the 2nd phase of the parking ramp. The cost for Phase 2 is $9,782,092. Parking is
$4,715,167 of this cost.
Phase 3: Indoor pool (lap swimming and indoor aquatic feature). Phase 3 is $10,440,760.
Phases 2 and 3 can be interchangeable. The second phase of parking would be required for
either one of the phases.
Study Session Meeting of April 28, 2014 (Item No. 4) Page 5
Title: Update on Community Center Project
FINANCING: Financing for the proposed Community Center would be through the issuance of
General Obligation (G.O.) Bonds for the entire cost of the project with an assumed 20 year term
on the bonds. Based on a $30 - $50 million Community Center project, the property tax impact
on a residential homesteaded median value home of $204,700 would be an increase of
approximately $81 - $134 over a two year period, or approximately $41 - $67 increase per year
for the City share of property taxes. This equates to approximately a 8.6% - 14.4% increase in
the City share of property taxes over a two year period, or approximately 4.3% - 7.2% increase
per year. These estimates are only for construction costs of the proposed Community Center and
do not factor in the estimated operating loss, any property tax levy increases for the general
operating levy, or any other significant capital projects such as sidewalks and trails, SWLRT etc.
NOTE: The last time the Council discussed this matter it was requested that staff consider how
new development growth in the community might help mitigate property tax impacts to our
residents and to incorporate that into its analysis. After spending time trying to develop a model
it was determined that there was not a reliable way to do this given many unknowns. For
example, many of our more sizable redevelopment projects utilize tax increment districts, which
actually capture value for an extended period of time. Another example relates to economic
downturns and markets. Attempting to project what might happen in the future is a guess at best.
Having said the above, staff could still incorporate certain assumptions in its estimates of
property tax impacts but would strongly encourage against it as the results would be speculative.
EXISTING REC CENTER CAPITAL ITEMS: It is important to note that the Rec Center has
a number of improvements identified in the existing 5 year capital plan totaling $6.5 million to
be funded from the Park Improvement Fund. The largest expense will occur in 2016 with the
change to a new refrigeration system ($4.8 million). The remaining funds will replace or
refurbishing existing amenities.
NEXT STEPS: The construction of a project of this scale happens in steps. All steps build on each
other. Although they need to happen in order, there can be time in between each step. Nothing is
lost by putting a hold on the project after the schematic design. The first step has been completed
with the feasibility study. If the Council wished to continue moving forward, the next steps to
construction are as follows along with the cost associated with each step on a percentage basis.
1. Schematic Design 15%
2. Design Development 20%
3. Construction Documents 35%
4. Bidding 5%
5. Construction Administration 25%
Additional public process would happen after the schematic design. At that point there would be
building rendering and program content to show the community.
If council would like to proceed with all or just a phase, staff would suggest we work with HGA
to move into schematic design. Depending on how detailed we want to go into design and how
many phases we want to include, the cost to enter into schematic design would be $300,000-
$400,000. In addition, staff would like to look into what information exists relative to soil
borings from the past projects on site. After that is done, this would be an appropriate time to do
more soils work so that we know what actually lies below ground in the area we potentially build
on. We do not have a cost estimate on the soils and survey work. If Council directs staff to enter
into the schematic design of the building, we would come back with cost for this step that would
include soils and survey work.
PARKING DECK
(70 STALLS)OUTDOOR
REC COURTS
DROP-OFF (20 STALLS)
(110 STALLS)
TOTAL PARKING
950 STALLS (300 EXISTING COUNT DEDICATED TO REC CENTER + 650 FOR NEW COMMUNITY CENTER PROGRAM)
250 STALLS X 3)
710
8
63
4
5
1
9
PHASE I
1 GYM
2 LOCKERS
7 KIDS PLAY
9 FITNESS + TRACK
10 CHILDCARE
PHASE II
3 AQUATICS
4 AQUATIC SUPPORT
5 MULTI-PURPOSE
PHASE III
6 COMMUNITY ROOM
8 OFFICE
CLIMBING WALL3'-6" DEEP5'-0" DEEP10'-0" DEEP363030
30 OPENIIIIII
PHASE I
GYM
LOCKERS
KIDS PLAY
FITNESS+TRACK
CHILDCARE
OFFICE
LOBBY
COMMUNITY GATHERING/COMMONS
PHASE II
COMMUNITY ROOM
COMMUNITY ROOM SUPPORT
PHASE III
AQUATICS
AQUATICS SUPPORT
MULTI-PURPOSE
RROOFII
II
II
PHASE I
GYM
LOCKERS
KIDS PLAY
FITNESS+TRACK
CHILDCARE
OFFICE
LOBBY
COMMUNITY GATHERING/COMMONS
PHASE II
COMMUNITY ROOM
COMMUNITY ROOM SUPPORT
CONSESSIONS300 SF22
22
22
22
293 OPEN
OPEN
I
I
I
PHASE I
GYM
LOCKERS
KIDS PLAY
FITNESS+TRACK
CHILDCARE
OFFICE
LOBBY
COMMUNITY GATHERING/COMMONS
OPEN
OPEN
OPEN ROOFe128120a137HEADERTRENCH125TEAMROOM124TEAMROOM123MULTI-PURPOSEROOM122SKATECHANGINGFF 173'-2"128ZAMBONI ROOM129NEW ZAMBONI ROOM130MECHe127e126e125e124e123119ae117e116e118e102e101e104e105e107e106e103e114e113e112e111e110e108e109e115e122102a101a139RAISED SEATING117ELEVATORHALL119b120b138NEW ARENAFF 173'-2"133MECHEQUIPT173'-2"ARENA FLOOR175'-6"FIRST FLOOR170'-2"STORAGE FLOOR118ELEV131EXIT135GAS STORAGEEL 176'-2"114MEN'S TOILET109WOMEN'S TOILET112MEN'S LOCKERS111WOMEN'S LOCKERS110WOMEN'S SHOWER113MEN'S SHOWER116CONCESSIONS107FAMILYTOILET108MECH104SKATESHARPENING103OFFICE102TICKETING121CORRIDORFF 175'-6"101ENTRY110AWOMEN'S ALCOVE120BATH HOUSEENTRY132REFUSESTORAGE126TEAMROOM127TEAMROOM115STOR136REFEREE'SROOM106FAMILYTOILET105CONFERENCEROOM121.1HALL113AMEN'S ALCOVE134RAMPPASSSAGE175'-6"RAISED SEATING173'-2"ARENA FLOOR173'-2"ARENA FLOOR175'-6"RAISED SEATING119POOL MECHUPUPEL 178'-0"MECH EQUIPMENT FLOOR111
1
1
1 11111111
11111
1
11
11 11111 11
11
22222211111101F101E103
105
104A104B
106107
108110113114B112109A114A 109B122D122C122B122A115116111118A117B117C117A119A119B119C119D 124125126127128B136A130A136.1135131A131B139B121175'-6"FINISH FLOOR123103.1118AELEV MECH139A131D131C101A101C101D101BEXITING 178'-6"124.1SHOWER124.2DRYING124.3TOILET125.1SHOWER125.2DRYING125.3TOILET126.1SHOWER126.2DRYING126.3TOILET127.1SHOWER127.2DRYING127.3TOILET128A129130B130C134EL 176'-2"TOP OF RAMP123.1STORAGEe128EXISTING ARENAFF 173'-2"103.1STORAGE119.1STORAGE119.2CHEMICAL STORAGE11136.1TOILET121CORRIDORFF 175'-6"117EOPTION TO DEMO/RECONSTRUCT EXISTING OFFICES/LOCKER ROOMS VS.
RETAIN/REMODEL EXISTING TO BE EVALUATED DURING DESIGN PHASE.
COST ESTIMATES BASED ON DEMO/RECONSTRUCTION SCENARIO.
*
*
SURFACE
PARKING
REMAINS IN USE
PARK VIEW SITE
PHASING
EXISTING ARENA
UPPER LEVEL
EXISTING AQUATICS BELTLINESEE INSET
FOR UPPER
LEVEL PLAN
POSSIBLE
FUTURE
OUTDOOR
ICE RINK
Study Session Meeting of April 28, 2014 (Item No. 4)
Title: Update on Community Center Project Page 6
Meeting: Study Session
Meeting Date: April 28, 2014
Discussion Item: 5
TITLE: Southwest LRT Preliminary Design Plans
RECOMMENDED ACTION: No formal action at this time.
POLICY CONSIDERATION: Provide input to staff on the SWLRT Preliminary Design Plans
under consideration for Municipal Consent.
SUMMARY: Over at least the next two City Council meetings the intent is to discuss
the specifics of the Preliminary Design Plans in anticipation of preparing and adopting a
resolution regarding municipal consent in June. At this meeting (4/28/14) we will focus on
the Louisiana Avenue station area. If time permits we will discuss the Wooddale Avenue Station
area as well. Otherwise we will discuss the Wooddale and the Beltline Station areas during
a Special Study Session on May 5. The Preliminary Design Plans can be found at
www.stlouispark.org/webfiles/file/community-dev/swlrt_plans.pdf.
The focus of the discussion will be on acceptability of the basic elements of the Preliminary
Design Plans, potential Locally Requested Capital Investments (“betterments”) and issues that
need to be addressed in the next stage of design development. The Preliminary Design Plans are
developed to less than a 30% complete level and further refinements and plan adjustments will
occur with City input before the Final Design Plans are completed. The Final Design stage of
the SWLRT project is not anticipated to begin until the second or third quarter of 2015. Much
design work will need to be done before plans are even ready to begin the Final Engineering.
On a related note, since the Preliminary Design Plans were originally submitted to all the
SWLRT corridor communities on 4/10/14, an error in the plans was discovered regarding the
north LRT tunnel in the Kenilworth Corridor. As a result, a new set of corrected plans have been
distributed (4/22/14) to all the cities and locations with copies of the plans. The Met
Council/Hennepin County hearing scheduled for May 12th has been rescheduled for May 29th.
While this scheduling change extends the deadline for cities to act on Municipal Consent into
July, under the statute the change in the date for the Met Council/Hennepin County hearing does
not affect our hearing date which is scheduled for May 19th.
NEXT STEPS:
• Public hearing with open house 1 hour prior – May 19
• Staff and Council continue to review base plans (ongoing)
• Adopt Municipal Consent Resolution – suggested date is June 16 with June 23 as backup
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: SLP Municipal Consent Plan Summary Table 2014
Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager
SLP Municipal Consent Plan Summary Table 2014 4-16-14
Base plan Elements Locally Requested Cap Inv
(Betterments)
Cost Other Issues Cost
Louisiana North (Oxford) station
286 car park & ride lot
Trail connection under tracks
from station to regional trail
and Sam’s Club area
South station location $18-23 m • Removal of South leg of
switching wye
• Better pedestrian connection
from station to Methodist
• Ownership & use of freight rail
South Connect property
• Oxford/Edgewood “hairpin”
curve
?
Wooddale Station at Wooddale
No park & ride
Trail connection at-grade
Kiss & Ride drop-off on
Yosemite and Frontage Road
Trail underpass $3-3.5 m • LRT under Wooddale
• Shift station location East
• Xenwood underpass
• Xenwood at-grade crossing
• Fit with future development on
frontage road
$13.9 m
$21 m
$5 m?
Belt Line 525 park & ride lot at Beltline
& CSAH 25
Trail at-grade crossing of
Beltline; crosses trains on
bridge to the east
New signalized access to CSAH
25 at Lynn Ave
Grade separation of Belt Line
Or
Trail bridge over Beltline
$18-23 m
$3.5-4 m
• Joint Development of park &
Ride lot
• Design of CSAH 25
• Design of access to park & ride
from CSAH 25
?
Study Session Meeting of April 28, 2014 (Item No. 5)
Title: Southwest LRT Preliminary Design Plans Page 2
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 6
EXECUTIVE SUMMARY
TITLE: March 2014 Monthly Financial Report
RECOMMENDED ACTION: No action required at this time.
POLICY CONSIDERATION: None at this time.
SUMMARY: The Monthly Financial Report provides a summary of General Fund revenues
and departmental expenditures and a comparison of budget to actual throughout the year.
FINANCIAL OR BUDGET CONSIDERATION: At the end of March, General Fund
expenditures total 23.9% of the adopted annual budget, which is approximately 1% under where
expenditures would normally be at the end of the first quarter. Please see the attached analysis
for more details.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Discussion
Summary of Revenues & Expenditures
Prepared by: Darla Monson, Senior Accountant
Reviewed by: Brian A. Swanson, Controller
Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 6) Page 2
Title: March 2014 Monthly Financial Report
DISCUSSION
BACKGROUND: This report is designed to provide summary information of the overall level
of revenues and departmental expenditures in the General Fund and a comparison of budget to
actual throughout the year.
PRESENT CONSIDERATIONS: Actual expenditures should generally run about 25% of the
annual budget in March. Currently, General Fund expenditures are at approximately 23.9% of
the adopted budget. Revenues tend to be harder to measure in this same way due to the timing of
when they are received, examples of which include property taxes and State aid payments
(Police & Fire, DOT/Highway User Tax, PERA Aid, etc.). A few brief comments on specific
variances are noted below.
Revenues:
• License and permit revenues are at 38.2% of budget due to the fact that approximately
95% of the 2014 business and liquor license payments have been collected, which is
consistent with previous years. Permit revenue is at just under 19% of budget through
March.
Expenditures:
• The Accounting Division is approximately 1.5% over budget due to higher property and
liability insurance premium expense.
• Human Resources is exceeding budget by about 1% because of expenses related to the
Health in the Park program. These additional expenses are offset by grant revenues.
• Public Works Administration is over budget by almost 3% due to a budget allocation
change for one of the admin positions splitting time between City Hall and the Municipal
Service Center. The additional payroll expenses in Public Works Administration are
offset in the Public Works Engineering budget, which is under budget by nearly 5%. A
budget amendment will be proposed for this and other items later in the year.
• The Organized Recreation Division is showing a temporary expenditure variance due to
the fact the full Community Education contribution for 2014 of $187,400 was paid to the
school district in February. The timing of this payment is consistent with prior years.
• The Vehicle Maintenance Division is running almost 5% over budget on expenditures at
30.1% because of overtime, fuel, repair parts, and equipment maintenance expenses,
which is typical of the winter months.
NEXT STEPS: None are required at this time.
Summary of Revenues & Expenditures - General Fund As of March 31, 2014 20142014201220122013201320142014 Balance YTD Budget BudgetActual BudgetAudited Budget Mar YTD Remaining to Actual %General Fund Revenues: General Property Taxes20,169,798$ 20,209,604$ 20,657,724$ 21,987,968$ 21,157,724$ -$ 21,157,724$ 0.00% Licenses and Permits2,375,399 3,241,812 2,481,603 3,069,088 2,691,518 1,027,546 1,663,972 38.18% Fines & Forfeits328,150 341,356 335,150 311,882 320,150 92,376 227,774 28.85% Intergovernmental1,232,579 1,365,023 1,300,191 2,031,355 1,282,777 192,453 1,090,324 15.00% Charges for Services2,341,104 2,169,631 1,837,976 1,779,259 1,857,718 346,044 1,511,674 18.63% Miscellaneous Revenue1,079,550 1,092,234 1,092,381 1,067,210 1,112,369 195,599 916,770 17.58% Transfers In2,023,003 2,066,136 1,816,563 1,805,223 1,837,416 453,104 1,384,312 24.66% Investment Earnings125,000 136,415 150,000 14,180 150,000 - 150,000 0.00% Other Income45,600 276,273 36,650 10,756 17,950 2,890 15,060 16.10%Total General Fund Revenues29,720,183$ 30,898,483$ 29,708,238$ 32,076,921$ 30,427,622$ 2,310,012$ 28,117,610$ 7.59%General Fund Expenditures: General Government: Administration1,012,554$ 977,392$ 877,099$ 890,883$ 939,391$ 210,360$ 729,031$ 22.39% Accounting641,691 639,999 827,320 819,458 767,094 204,950 562,144 26.72% Assessing517,840 518,271 543,855 543,202 559,749 139,131 420,618 24.86% Human Resources667,612 645,357 678,988 731,634 693,598 180,168 513,430 25.98% Community Development1,076,376 1,052,186 1,094,517 1,090,213 1,151,467 279,814 871,653 24.30% Facilities Maintenance1,083,128 972,481 1,074,920 1,058,127 1,053,715 244,600 809,115 23.21% Information Resources1,507,579 1,363,266 1,770,877 1,597,993 1,456,979 355,351 1,101,628 24.39% Communications & Marketing265,426 244,392 201,322 170,013 566,801 109,905 456,896 19.39% Community Outreach8,185 5,341 8,185 (22,450) 8,185 210 7,975 2.57% Engineering927,337 939,425 303,258 296,383 506,996 101,569 405,427 20.03%Total General Government7,707,728$ 7,358,111$ 7,380,341$ 7,175,456$ 7,703,975$ 1,826,058$ 5,877,917$ 23.70% Public Safety: Police7,273,723$ 7,124,784$ 7,443,637$ 7,225,579$ 7,571,315$ 1,882,950$ 5,688,365$ 24.87% Fire Protection3,346,931 3,291,655 3,330,263 3,246,162 3,458,161 848,666 2,609,495 24.54% Inspectional Services1,889,340 1,869,616 1,928,446 1,932,021 2,006,200 486,078 1,520,122 24.23%Total Public Safety12,509,994$ 12,286,055$ 12,702,346$ 12,403,762$ 13,035,676$ 3,217,694$ 9,817,982$ 24.68% Operations & Recreation: Public Works Administration389,783$ 378,852$ 393,054$ 288,207$ 222,994$ 62,099$ 160,895$ 27.85% Public Works Operations2,604,870 2,521,463 2,698,870 2,720,563 2,625,171 593,025 2,032,146 22.59% Organized Recreation1,305,747 1,352,273 1,280,117 1,256,678 1,290,038 442,699 847,339 34.32% Recreation Center1,466,246 1,516,121 1,449,930 1,501,627 1,543,881 270,662 1,273,219 17.53% Park Maintenance1,461,645 1,444,448 1,431,825 1,424,139 1,423,011 306,432 1,116,579 21.53% Westwood515,456 506,404 520,554 503,309 531,853 115,030 416,823 21.63% Environment390,009 382,378 430,876 434,297 433,750 45,202 388,548 10.42% Vehicle Maintenance1,188,705 1,326,153 1,240,325 1,268,559 1,285,489 386,886 898,603 30.10%Total Operations & Recreation9,322,461$ 9,428,091$ 9,445,551$ 9,397,379$ 9,356,187$ 2,222,035$ 7,134,152$ 23.75% Non-Departmental: General -$ 65,292$ -$ 256,627$ 4,000$ 1,126$ 2,874$ 28.16% Transfers Out- 1,160,000 - 60,000 - - - 0.00% Tax Court Petitions180,000 - 180,000 53,345 327,784 - 327,784 0.00%Total Non-Departmental180,000$ 1,225,292$ 180,000$ 369,972$ 331,784$ 1,126$ 330,658$ 0.34%Total General Fund Expenditures29,720,183$ 30,297,549$ 29,708,238$ 29,346,569$ 30,427,622$ 7,266,914$ 23,160,708$ 23.88%Study Session Meeting of April 28, 2014 (Item No. 6) Title: March 2014 Monthly Financial ReportPage 3
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 7
EXECUTIVE SUMMARY
TITLE: First Quarter Investment Report (January – March 2014)
RECOMMENDED ACTION: No action required at this time.
POLICY CONSIDERATION: None at this time.
SUMMARY: The Quarterly Investment Report provides an overview of the City’s investment
portfolio, including the types of investments held, length of maturity, and yield.
FINANCIAL OR BUDGET CONSIDERATION: The total portfolio value at March 31, 2014
was $46.5 million. Approximately 58% of the portfolio is in longer term investments that
include agency bonds, municipal debt securities, and certificates of deposit. The remainder is
held in money market accounts for future cash flow needs. A very consistent overall yield near
1% has been maintained for the past 12 to 18 months by balancing cash flow needs with longer
term investment options.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Discussion
Investment Portfolio Summary
Prepared by: Darla Monson, Senior Accountant
Reviewed by: Brian A. Swanson, Controller
Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 7) Page 2
Title: First Quarter Investment Report (January – March 2014)
DISCUSSION
BACKGROUND: The City’s investment portfolio is focused on short term cash flow needs and
investment in longer term securities. This is done in accordance with Minnesota Statute 118A
and the City’s Investment Policy objectives of: 1) Preservation of capital; 2) Liquidity; and 3)
Return on investment.
PRESENT CONSIDERATIONS: The total portfolio value decreased by approximately $10.8
million in the first quarter from $57.3 million at 12/31/2013 to $46.5 million at 3/31/2014. This
is typical of the first quarter of the year, as a large amount of cash is received in December from
the second half property tax and TIF settlements. Much of this cash is then needed in the first
quarter to pay the February 1 debt service payments and Pay As You Go TIF note payments, as
well as the normal payroll and general operating expenses. Construction contract payments for
the Highway 7 and Louisiana Avenue project continued during the first quarter, and even though
smaller over the winter months, still totaled $2.2 million.
The overall yield of the portfolio remained consistent at .77% in the first quarter compared to
.79% at 12/31/2013. Cities generally use a benchmark such as the two year Treasury (.44% at
3/31/2014) or some similar measure for yield comparison of their overall portfolio. Money
market rates currently range from just .02% in both the 4M Fund and UBS Money Market to
.08% at Citizens Independent Bank. This does unfortunately keep the total portfolio yield down,
but there are very few options other than money markets for investing cash short term. A new
money market account will be opened at Northeast Bank early in the second quarter. This new
account currently offers a higher interest rate of .4%, which will help to maximize interest
earnings on available cash.
Approximately 42% or just under $20 million of the portfolio, is currently held in money
markets. It is necessary to keep cash available between property tax settlements for on-going
cash flow needs for capital project payments, payroll, and operating expenses. The next property
tax payment is the 70% advance settlement, which will be received on June 23, 2014, with the
remainder on July 7, 2014. It is also important to keep some liquidity for purchasing longer term
securities if good options come available.
Another 9% or $4.3 million of the portfolio, is invested in fixed rate certificates of deposit at
rates that have ranged from .5% for two years to 1.75% for five years. With rates on bonds
continuing to be very low, purchasing these fixed rate CD’s has helped to keep the portfolio
yield stable. There are currently 18 CD’s in the portfolio, each with a face value of $200,000 to
$240,000, which guarantees that each CD is insured by the FDIC up to $250,000. Five of these
CD’s will mature in 2014, with three maturing in the upcoming quarter.
The remaining half, or approximately $23 million of the portfolio, is invested in other long term
securities, including municipal debt ($14 million) and agency bonds ($9 million). Municipal
debt instruments are bonds issued by States, local governments, or school districts to finance
special projects. Agency bonds are issued by government agencies such as the Federal Home
Loan Bank or Fannie Mae. The agency bonds usually have higher interest rates to the final
maturity date in five years, but the issuers have the right to call the bonds at specific intervals
prior to maturity if interest rates decline. Five of these agency bonds were called prior to
maturity in the first quarter of 2014. Seven of the municipal debt securities will also mature in
2014. The proceeds from these calls and maturities will look to be reinvested when possible.
Study Session Meeting of April 28, 2014 (Item No. 7) Page 3
Title: First Quarter Investment Report (January – March 2014)
Here is a summary of the City’s portfolio at March 31, 2014:
NEXT STEPS: None at this time.
12/31/13 03/31/14
<1 Year 53% 57%
1-2 Years 10% 13%
2-3 Years 10% 6%
3-4 Years 20% 22%
>4 Years 7% 2%
12/31/13 03/31/14
Money Markets $23,899,703 $19,518,075
Commercial Paper $0 $0
Certificates of Deposit $4,295,948 $4,306,435
Municipal Debt $15,066,902 $13,634,704
Agency Bonds $13,994,673 $9,025,074
City of St. Louis Park
Investment Portfolio Summary
March 31, 2014
Institution/Broker Investment Type CUSIP Maturity Date
Yield to
Maturity Par Value
Market Value at
3/31/2014
Estimated Avg
Annual Income
Citizens Indep Bank Money Market 0.08%8,045,077 8,045,077 6,436
4M Fund Money Market 0.02%5,174,921 5,174,921 1,035
UBS CD - Bank of China NY 06425HN85 05/02/2014 0.60% 240,000 240,096 1,440
UBS CD - Medallion Bank UT 58403BXU5 05/07/2014 0.60% 240,000 240,115 1,440
UBS CD - Apple Bank NY 037830KP0 05/09/2014 0.50% 240,000 240,012 1,200
UBS CD - First Bank PR Sant 33764JNF8 10/27/2014 0.80% 240,000 240,624 1,920
UBS CD - Doral Bank PR 25811L2L2 12/08/2014 0.85% 240,000 240,768 2,040
UBS CD - Amer Exp Cent UT 02587DLS5 01/26/2015 0.85% 240,000 240,708 2,040
UBS Muni Debt - Amer Munic Pwr Ohio 02765UER1 02/15/2015 1.54% 1,000,000 1,025,810 15,400
UBS Muni Debt - Gilroy, CA 376087CZ3 04/01/2015 1.81% 1,125,000 1,161,259 20,363
UBS Muni Debt - Dist of Columbia 25476FLE6 06/01/2015 1.33% 1,000,000 1,038,450 13,310
UBS Muni Debt - Calif State 13063BNR9 10/01/2015 2.00% 1,000,000 1,029,710 20,000
UBS CD - BMW Bank UT 05568PZ59 10/26/2015 1.05% 240,000 241,474 2,520
UBS Muni Debt - Atl City, NJ 048339RR8 12/15/2015 2.70% 470,000 485,754 12,690
UBS CD - Barclays Bank DE 06740KFS1 01/11/2016 1.60% 240,000 244,409 3,840
UBS FNMA Step Up 3136FTXU8 12/29/2016 1.25% 1,000,000 1,005,190 12,500
UBS FHLMC 3134G3NN6 02/27/2017 0.72% 1,000,000 998,180 7,220
UBS CD - Discover Bank DE 254671AG5 05/02/2017 1.75% 240,000 242,266 4,200
UBS CD - GE Cap Retail Bank UT 36160NJZ3 05/04/2017 1.75% 240,000 242,978 4,200
UBS FHLMC 3134G3WV8 06/06/2017 1.01% 1,000,000 1,001,290 10,140
UBS Muni Debt - N. Orange Cty CA 661334DR0 08/01/2017 1.01% 1,000,000 1,007,700 10,110
UBS CD - Sallie Mae Bnk UT 79545OPE9 08/29/2017 1.70% 240,000 242,820 4,080
UBS CD - Sun Natl Bank NJ 86682ABV2 10/03/2017 1.00% 240,000 242,455 2,400
UBS CD - Everbank Jacksonvl FL 29976DPB0 10/31/2017 1.00% 240,000 241,394 2,400
UBS CD - Comenity Bank DE 981996AX9 12/05/2017 1.25% 200,000 198,000 2,500
UBS CD - Banco Popular PR 05967ESG5 12/05/2017 1.10% 240,000 241,097 2,640
UBS FNMA 3136G1AJ8 01/30/2018 1.06% 1,000,000 987,770 10,630
UBS FHLB 313381JW6 06/27/2018 0.92% 1,000,000 1,083,334 9,200
UBS Money Market 0.02% 6,298,077 6,298,077 1,260
20,701,740
Sterne, Agee Muni Debt - Outagamie Cnty WI 689900TH1 04/01/2014 2.53% 810,000 810,000 20,493
Sterne, Agee Muni Debt - Racine, WI 750046GB4 04/01/2014 0.70% 1,010,000 1,010,000 7,070
Sterne, Agee Muni Debt - Van Buren, MI Sch 920729GR5 05/01/2014 3.52% 705,000 706,925 24,816
Sterne, Agee Muni Debt - Union Co NJ 906347SC4 06/01/2014 4.04% 110,000 110,217 4,444
Sterne, Agee Muni Debt - Smithfield, RI 832322NP2 01/15/2015 1.90% 275,000 278,751 5,225
Sterne, Agee Muni Deb - Smithfield, RI 832322NQ0 01/15/2016 2.40% 275,000 283,206 6,600
Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAS4 02/01/2016 0.85% 1,050,000 1,074,297 8,925
Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAT2 02/01/2017 1.15% 1,000,000 1,018,010 11,500
Sterne, Agee Muni Debt - New York, NY 64966HJS0 04/01/2017 1.20% 500,000 567,995 6,000
5,859,401
Wells Fargo Muni Debt - State of WA 93974CLV0 08/01/2014 1.33% 1,000,000 1,010,290 13,300
Wells Fargo CD - Goldman Sachs Bank NY 38143AGR0 01/12/2015 1.50% 240,000 241,735 3,600
Wells Fargo CD - Ally Bank UT 0200SQYM9 01/26/2015 1.15% 240,000 241,738 2,760
Wells Fargo CD - GE Capital UT 36160XC62 01/06/2016 1.70% 240,000 243,746 4,080
Wells Fargo Muni Debt - Fond Du Lac WI Schl 344496JQ8 04/01/2017 1.05% 1,000,000 1,016,330 10,500
Wells Fargo FNMA 3135G0NH2 08/23/2017 0.95% 1,000,000 990,700 9,500
Wells Fargo Fannie Mae 3136G04A6 11/21/2017 1.00% 1,000,000 988,210 10,000
Wells Fargo FNMA 3135G0TM5 01/30/2018 1.02% 1,000,000 988,250 10,200
Wells Fargo Fannie Mae 3136G1AZ2 01/30/2018 1.00% 1,000,000 982,150 10,000
6,703,149
GRAND TOTAL 46,484,288 358,166
Portfolio Yield 0.77%
Study Session Meeting of April 28, 2014 (Item No. 7)
Title: First Quarter Investment Report (January – March 2014)Page 4
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 8
EXECUTIVE SUMMARY
TITLE: Nestlé (Novartis) Property Update
RECOMMENDED ACTION: The purpose of this staff report is to provide an update
regarding the future of the Nestlé HealthCare Nutrition property (5320 23rd Street W).
POLICY CONSIDERATION: None at this time. Please let staff know of any questions that
you might have.
SUMMARY: Last December, Hillcrest Development entered into an option agreement to
purchase the 25-acre Nestlé manufacturing property at 5320 W. 23rd St. Over the last several
months, Hillcrest has been conducting inspections of the buildings and site. It also has been
evaluating the economic feasibility of retaining the majority of the buildings and renovating
them into flexible, multi-tenant industrial spaces. This proposed use is consistent with the City’s
long range plan for the property. Assuming no unforeseen last-minute issues, Hillcrest plans to
close on the property in May.
During its due diligence, Hillcrest determined that a majority of the 312,000 SF plant is ideal for
conversion to large, leasable, industrial spaces. However, Building #3, which is separate from the
main building group and located in the middle of the truck court area, is functionally obsolete
and has so many building code issues that it should be demolished. Hillcrest has asked the EDA
to apply for a Metropolitan Council Tax Base Revitalization Account (TBRA) grant on its behalf
to offset the cost of removing the 16,182 SF building. The Metropolitan Council requires an
authorizing resolution from the governing body of the city where the project site is located,
indicating that the city supports the submission of the grant application on behalf of the
Redeveloper. Such a resolution is scheduled for the EDA’s consideration at its’ May 5th meeting.
Hillcrest is a Minneapolis-based redeveloper with substantial experience acquiring challenging
and obsolete industrial properties and refurbishing them into attractive, functional commercial
and industrial spaces. Hillcrest is also currently in the process of acquiring the former Pentagon
Park east of Highway 100 in Edina.
FINANCIAL OR BUDGET CONSIDERATION: The amount of the TBRA grant application
will be under $400,000 and will not require a local matching fund commitment from the EDA.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: None
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, EDA Executive Director and City Manager
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 9
EXECUTIVE SUMMARY
TITLE: Dissolution of Minnesota Community Capital Fund (MCCF)
RECOMMENDED ACTION: None. This report is to inform the EDA of the dissolution of
MCCF effective April 30, 2014, and the return of the EDA’s membership deposit.
POLICY CONSIDERATION: None at this time. Please let staff know of any questions you
might have.
SUMMARY: In April 2005 the EDA approved a $50,000 membership in the Twin Cities
Community Capital Fund (TCCCF); a newly-formed, revolving loan pool designed to provide
gap financing to small businesses located in member metro communities so as to enable them to
grow and expand. In 2010, as a result of a significant downturn in lending activity due to the
national recession, the TCCCF was dissolved and memberships were transferred to the
Minnesota Community Capital Fund (MCCF); a larger, statewide, lending pool.
Recently, Staff received notification that the MCCF Board of Directors decided to dissolve the
MCCF loan program effective April 30, 2014. This decision was made based on the program’s
inability to secure new capital sources to fund MCCF loans. The EDA’s initial membership
deposit, minus a 5% nonrefundable administrative fee, was recently returned to the EDA. Staff
will continue to investigate other small business lending programs in which the EDA may wish
to consider participating.
FINANCIAL OR BUDGET CONSIDERATION: As a result of the dissolution of MCCF, the
EDA’s membership deposit of $50,000, minus a 5% nonrefundable administrative fee, has been
deposited back into the Development Fund.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: None
Prepared by: Julie Grove, Planning & Economic Development Assistant
Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor
Approved by: Tom Harmening, EDA Executive Director and City Manager
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 10
EXECUTIVE SUMMARY
TITLE: Cedar Trails Housing Improvement Area (HIA) - Disbursement of Remaining Funds
RECOMMENDED ACTION: No action at this time. This report is being provided as an update
to the Council in advance of staff bringing this item for formal Council approval on May 5.
POLICY CONSIDERATION: Does the Council support depositing the remaining Cedar
Trails HIA project funds of $16,092 into the Association’s replacement reserve fund, consistent
with the Development Agreement between the City and Cedar Trails?
SUMMARY: The Cedar Trails HIA was established in November 2002 and a Development
Agreement between the City and Association was executed in December 2002. The total loan
amount was $1,365,742. The total project costs came to $1,349,650 with a remaining balance of
$16,092.
The improvements included:
• Bituminous Overlay of Parking Lots
• Partial Replacement of Concrete Curbs, Gutters, Islands, Patios, and Sidewalks
• Removal of 1 Wood Retaining Wall and Replacement of 5 Walls with Stone Walls.
• Partial Replacement of Exterior Light Fixtures on Garage Buildings
• Replacement of Roofs on Several Garage Buildings
• Installation of Hardie Fiber Cement Siding on Garage Buildings;
• Replacement of Roofs on Several Buildings
• Partial Replacement of Common Area Acoustical Ceiling Tile, Vinyl Floor Tile, and Interior Light Fixtures
• Partial Replacement of Washers and Dryers
• Renovation of Pool Building
• Replacement of Oldest Boilers, Pumps, Hot Water Heaters, and Water Softeners
• Partial Replacement of Risers and Branch Piping
• Partial Replacement of Windows and Patio Doors
The Development Agreement allows for the Project Fund balance to be deposited in the
Associations Replacement Reserve Fund for future common area improvements. The Cedar
Trails HIA 10 year repayment period is complete and David Stendal with Omega Management,
on behalf of Cedar Trails, requested the payout of the remaining balance which is $16,092.
FINANCIAL OR BUDGET CONSIDERATION: The project fund has been held by the City
and funds have been disbursed for all construction and all soft costs including the City’s
administrative fee. The disbursement of the remaining project balance to Cedar Trails is
consistent with the Development Agreement and does not impact the overall financial health of
the EDA’s Development Fund.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: None
Prepared by: Marney Olson, Housing Programs Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor
Brian Swanson, Controller
Approved by: Tom Harmening, City Manager
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 11
EXECUTIVE SUMMARY
TITLE: Update on Community Emergency Response Team (CERT)
RECOMMENDED ACTION: No action at this time. The purpose of this report is to inform
the City Council of the progress towards developing a functional team for St. Louis Park.
POLICY CONSIDERATION: Does the City Council have any questions or concerns
regarding the formation of a CERT program in St. Louis Park?
SUMMARY: During the March 18 Study Session the Fire Chief and City Manager updated the
Council on plans for creating a CERT team in St. Louis Park. Since that date there has been
considerable progress towards that goal including recruiting potential CERT team members. At
this point it appears we have 10 – 15 residents interested in serving on the team and undertake
the necessary training. Currently, we have a process and a plan that allows for a team to be
established by mid to late June, 2014
FINANCIAL OR BUDGET CONSIDERATION:
The overall impacts to the 2014 fire department operating budget should be minimal. Cost
controls are as follows:
• Use paid on call firefighters to train and mentor. Hourly rate and 2014 budget for payroll
already allows for some increase in activity. We currently have 8 paid on call members
signed up to assist.
• By moving forward now there is required equipment available at no charge which would
eliminate most startup costs. We have received all training materials and equipment to
support a 40 person team.
• By engaging in the CERT Leaders of Minnesota group it opens up significant training
being shared across the metro. Instructors are being secured to deliver the 24 hour
curriculum at no charge.
• The only real startup costs that we would need to plan for would be tied to apparel. T-
Shirts, Sweat shirts, gloves, hats, and maybe some two way radios. These expenses are
estimated to cost approximately $1500, which the 2014 Emergency Management budget
can absorb.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Prepared by: Steve Koering, Fire Chief
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 11) Page 2
Title: Update on Community Emergency Response Team (CERT)
DISCUSSION
BACKGROUND: The Community Emergency Response Team (CERT) concept was
developed and implemented by the Los Angeles City Fire Department (LAFD) in 1985. The
Whittier Narrows earthquake in 1987 underscored the area-wide threat of a major disaster in
California. Further, it confirmed the need for training civilians to meet their immediate needs. As
a result, the LAFD created the Disaster Preparedness Division with the purpose of training
citizens and private and government employees.
The training program that LAFD initiated makes good sense and furthers the process of citizens
understanding their responsibility in preparing for disaster. It also increases their ability to safely
help themselves, their family and their neighbors. The Federal Emergency Management Agency
(FEMA) recognizes the importance of preparing citizens. The Emergency Management Institute
(EMI) and the National Fire Academy adopted and expanded the CERT materials believing them
applicable to all hazards.
The CERT course will benefit any citizen who takes it. This individual will be better prepared to
respond to and cope with the aftermath of a disaster. Additionally, if a community wants to
supplement its response capability after a disaster, civilians can be recruited and trained as
neighborhood, business and government teams that, in essence, will be auxiliary responders.
These groups can provide immediate assistance to victims in their area; organize spontaneous
volunteers who have not had the training and collect disaster intelligence that will assist
professional responders with prioritization and allocation of resources following a disaster. Since
1993 when this training was made available nationally by FEMA, communities in 28 states and
Puerto Rico have conducted CERT training.
What is the Training?
The CERT training consists of the following:
• Session I, DISASTER PREPAREDNESS: Addresses hazards to which people are
vulnerable in their community. Materials cover actions that participants and their
families take before, during and after a disaster. As the session progresses, the
instructor begins to explore an expanded response role for civilians in that they should
begin to consider themselves disaster workers. Since they will want to help their
family members and neighbors, this training can help them operate in a safe and
appropriate manner. The CERT concept and organization are discussed as well as
applicable laws governing volunteers in that jurisdiction.
• Session II, DISASTER FIRE SUPPRESSION: Briefly covers fire chemistry,
hazardous materials, fire hazards and fire suppression strategies. However, the thrust
of this session is the safe use of fire extinguishers, sizing up the situation, controlling
utilities and extinguishing a small fire.
• Session III, DISASTER MEDICAL OPERATIONS PART I: Participants practice
diagnosing and treating airway obstruction, bleeding and shock by using simple triage
and rapid treatment techniques.
• Session IV, DISASTER MEDICAL OPERATIONS, PART II: Covers evaluating
patients by doing a head to toe assessment, establishing a medical treatment area,
performing basic first aid and practicing in a safe and sanitary manner.
• Session V, LIGHT SEARCH AND RESCUE OPERATIONS: Participants learn about
search and rescue planning, size-up, search techniques, rescue techniques and, most
important, rescuer safety.
Study Session Meeting of April 28, 2014 (Item No. 11) Page 3
Title: Update on Community Emergency Response Team (CERT)
• Session VI, DISASTER PSYCHOLOGY AND TEAM ORGANIZATION: Covers
signs and symptoms that might be experienced by the disaster victim and worker. It
addresses CERT organization and management principles and the need for
documentation.
• Session VII, COURSE REVIEW AND DISASTER SIMULATION: Participants
review their answers from a take home examination. Finally, they practice the skills
that they have learned during the previous six sessions in disaster activity.
During each session participants are required to bring safety equipment (gloves,
goggles, mask) and disaster supplies (bandages, flashlight, dressings) which will be
used during the session. By doing this for each session, participants are building a
disaster response kit of items that they will need during a disaster.
Why St Louis Park?
The City currently has a list of 1200 volunteers who make regular requests for opportunities to
give back. Although CERT is a specific type of volunteer, we are extremely fortunate to be able
to draw from this incredible list of resources. The fire department has an extensive background
in working with community volunteers through our paid on call firefighters.
St Louis Park Fire Department has twenty four paid on call members. We have a vision of
improved and increased engagement of our paid on call staff and this opens up an opportunity for
that to happen. Our paid on call staff can be the workforce to train, mentor and engage these
CERT members. By establishing this immediate connection within the department and adopting
these CERT members at the station level we will achieve a better sense of pride and ownership
across the entire City.
How will we utilize CERT?
There are a variety of ways that CERT can be utilized or engaged within the community.
Although the original design was centered on disasters there have been numerous ways to engage
this volunteer workforce throughout the community. The key is to focus on them as on ongoing
resource and part of our planning process. Examples of activities include:
• Community Event support- registration, information, first aid, fire and safety prevention
education
• Wide Area searches of vulnerable adults or children
• Community wide or neighborhood initiatives such as snow parking leaflets.
• During disasters they can assist with volunteer coordination, door to door surveys, light
search and rescue, patient receiving areas etc.
• They can also be available as ambassadors of St Louis Park through deployments on a
National Scale, i.e. Katrina
• Expanding diversity throughout the community by recruiting members from these groups
into the program.
Ultimately their visibility within their neighborhoods or Wards sends a message that the City
prioritizes the safety and wellbeing of our citizens and values their participation. It also provides
one more way to connect and engage our community.
NEXT STEPS:
May 2, 2014 – Deadline for residents to apply to be on the CERT Team
May and June – CERT Training
June – Swear in CERT members at City Council meeting
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 12
EXECUTIVE SUMMARY
TITLE: Update on Outdoor Refrigerated Ice Study
RECOMMENDED ACTION: No action necessary at this time. This report is intended to
provide the Council with a quick update on the feasibility study for an outdoor refrigerated ice
rink at the Rec Center.
POLICY CONSIDERATION: None at this time.
SUMMARY: At the Study Session held on January 27, 2014, Council supported staff’s
recommendation to begin a feasibility study on the potential for an outdoor refrigerated ice rink
on the west side of the Rec Center. Since that time, staff has met with members of the St. Louis
Park Hockey Association and prepared the guidelines for the feasibility study. Staff and Hockey
Association members interviewed firms for the feasibility study on March 20, 2014. From the
interviews, the group selected RSP Architects to perform the feasibility study. Steven Maurelli,
RSP Architects, is the project manager for the study. Steven, along with his team, has previous
experience working in St. Louis Park (Wolfe Park Veterans Memorial Amphitheater) as well as
experience in outdoor refrigerated ice rink projects (Coon Rapids, MN, Roseville, MN, Reston,
VA and Klamath Falls, OR).
Staff and representatives from the Hockey Association have met with RSP Architects twice thus
far, with the focus being what is possible, what is necessary and/or required and what is nice to
have. One of the key consensus points is the amenity must be usable year-round and not just for
winter hockey and skating. Staff anticipates the feasibility study will be completed by early June,
with a presentation of the study to Council in late June or early July.
FINANCIAL OR BUDGET CONSIDERATION: The cost of the study is approximately
$10,000 and is being funded using the proceeds from the $200,000 donation the Hockey
Association made to the City in late 2013.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: None
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Meeting: Study Session
Meeting Date: April 28, 2014
Written Report: 13
EXECUTIVE SUMMARY
TITLE: Update on 2014/2015 Neighborhood Grants
RECOMMENDED ACTION: No action required. This report is being provided in
preparation for a request for formal Council approval of the grants on May 5.
POLICY CONSIDERATION: Does Council have any concerns about the neighborhood grant
allocations as proposed?
SUMMARY: Each year grant funding is made available to neighborhood associations to
promote strong neighborhoods and enhance community connections by bringing neighbors
together. Grant applications from 21 neighborhoods were received in March. On April 8th
Breanna Erickson facilitated the grant review process with Grant Review Committee Members
Erica Bagstad (Pennsylvania Park), Mary Kay Raycette (Oak Hill), Marney Olson (City Staff)
and Brian Johnson (Minikahda Oaks). The Grant Review Committee met to review the grant
applications and make funding recommendations to the City Council. Attached is a worksheet
that provides specific detail on the recommendations made by the Grant Review Committee.
FINANCIAL OR BUDGET CONSIDERATION: The Grant Review Committee recommends
approval of $31,000 to fund the following 21 neighborhood grants:
$1350 Aquila $1975 Birchwood $1996 Blackstone
$1520 Bronx Park $610 Brooklawns $1100 Brookside
$2000 Browndale $940 Cobblecrest $1135 Creekside
$740 Crestview $1600 Eliot View $1925 Elmwood
$1505 Fern Hill $1205 Lake Forest $1700 Lenox
$2000 Minikahda Oaks $1349 Minikahda Vista $1875 Minnehaha
$2000 Sorensen $475 South Oak Hill $2000 Westwood Hills
The Grant Review Committee recommends approval of $1375 to fund the environmental grants
for fourteen neighborhoods.
The Grant Review Committee recommends approval of $4400 to fund insurance purchases for
twelve neighborhoods.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
2014 Neighborhood Grant Guidelines
Neighborhood Grant Worksheet
Prepared by: Breanna Erickson, Community Liaison
Reviewed by: John Luse, Chief of Police
Approved by: Tom Harmening, City Manager
Study Session Meeting of April 28, 2014 (Item No. 13) Page 2
Title: Update on 2014/2015 Neighborhood Grants
DISCUSSION
BACKGROUND: Each year grant funding is made available to neighborhood associations to
promote strong neighborhoods and enhance community connections by bringing neighbors
together. The City Council appropriated $31,000 in grant funds for the 2014 neighborhood grant
program, $2,000 for environmental initiatives, and $15,000 for insurance. Organized St. Louis
Park neighborhood associations may apply for up to $2,000 annually to support activities,
operations and community building activities and up to $100 for environmental related activities.
Neighborhood Associations are responsible for providing insurance when planning
neighborhood events in parks that bring outside equipment into the park such as, but not limited
to, moonwalks, petting zoos, etc. Neighborhood associations can apply for a maximum of $500
in addition to the standard grant to assist with purchasing insurance.
Grant applications from 21 neighborhoods were received in March. The total grant request for
2014/2015 was $32,677. Twelve of these neighborhoods also applied for additional insurance
reimbursements and fourteen neighborhoods applied for the environmental funding. The Grant
Review Committee that met April 8th evaluated each grant application and made funding
recommendations to meet the $31,000 budget for the neighborhood grants. The grant
applications came in $1,677 over budget so the committee was forced to make reductions to
some of the neighborhoods. The 2014 Neighborhood Grant Guidelines state that garage sales
will be given the lowest priority, and, if grant requests exceed the amount available for funding,
garage sales will not be funded. For 2014/2015 the committee chose not to fund garage sales
since this is a revenue generating activity for participants. The committee made up of three
residents did a great job evaluating each grant against the grant guidelines and making cuts to
stay within budget and meet the goal of the grants which is to support neighborhoods and
enhance community connections by bringing neighbors together.
This item will come before the Council for action on Monday, May 5, 2014.
Study Session Meeting of April 28, 2014 (Item No. 13) Page 3
Title: Update on 2014/2015 Neighborhood Grants
NEIGHBORHOOD REVITALIZATION PROGRAM
2014/2015 GRANT GUIDELINES
Grant Purpose
In 1996, the City of St. Louis Park established this grant program to support neighborhoods and
enhance community connections by bringing neighbors together. Financial support is provided
for special projects initiated by neighbors to address issues, implement ideas or create
opportunities that are meaningful and important to their neighborhoods. This purpose still
applies today and supports the Vision Strategic Direction: St. Louis Park is committed to being
a connected and engaged community.
In 2014/2015, up to $31,000 in grants will be available to organized St. Louis Park
neighborhoods for activities that physically improve the neighborhood, enhance the sense of
community within the neighborhood, support citizen involvement, or develop neighborhood
leadership.
Environmental Grant: An additional $2,000 in grants will be available to neighborhoods that
incorporate an environmental component either in conjunction with an existing event or adding a
new program/event. This new grant element ties to the Vision Strategic Direction: St. Louis
Park is committed to being a leader in environmental stewardship. We will increase
environmental consciousness and responsibility in all areas of city business.
Money is also available for neighborhood associations seeking additional insurance for
neighborhood activities. More information is available on page 3 under “Funding for
Insurance”.
Eligible Activities
Examples of eligible uses for grant funds are: newsletters, meetings, postage, picnics, parties,
youth or senior programs, new neighbor welcome, hayrides, ice cream socials, children’s
parades, entrance signs, flower plantings, park improvements or community gardens. However,
neighborhoods are not limited to these examples. Residents are encouraged to be creative in
assessing their needs and determining the projects they want to undertake as a neighborhood.
Neighborhood leaders are required to include neighborhood resident input for proposed
projects. How you choose to receive this input must be included in the grant application.
A few examples of eligible expenses for the environmental component are: purchasing
environmentally friendly products for a neighborhood event, hosting an earth day or buckthorn
removal event, and working with our Parks & Rec department to add plants or recycling
containers to a park.
Study Session Meeting of April 28, 2014 (Item No. 13) Page 4
Title: Update on 2014/2015 Neighborhood Grants
Eligible Applicants
To qualify, a neighborhood must have an established formal neighborhood association with
elected officers and a method of transferring leadership from one year to the next. A
neighborhood association must have written bylaws approved by its membership. Bylaws
should be reviewed annually.
Matching Grant Funds
To qualify for a grant, a neighborhood must demonstrate how it will contribute to or leverage the
Neighborhood Revitalization grant funds. A match of neighborhood resources maximizes the
use of limited City funds and confirms the commitment from each neighborhood.
Neighborhoods should provide a 100% (dollar for dollar) match to the grant amount. Any
combination of sources is acceptable in calculating the neighborhood match. These can be in the
form of:
• cash raised through fundraising • fees collected at activities
• donations from businesses, civic groups, etc. • in-kind services or sweat equity
Improvements to Private Property
Neighborhoods should be aware that legal issues limit the use of City funds to improve private
property. Applicants should be able to clearly demonstrate a strong public purpose for funds
proposed to improve private property in any way.
Improvements to Public Land or Parks
Physical improvements to any public property must be coordinated with the appropriate City
department. It should not conflict with or duplicate a project in the City’s Capital Improvements
Program. A letter of feasibility must be included with a grant application that requests funding
for park improvements. This letter should confirm that the appropriate City department has
reviewed the proposed improvements, that the proposal is feasible, and that the project budget is
a reasonable estimate of project costs.
City department contacts for capital improvements;
• Scott Brink, Public Works Department, 952-924-2687
• Rick Beane, Parks and Recreation Department, 952-928-2854
Old Grants
Neighborhoods with a previous grant must close out their account before new grant funds are
awarded. The deadline to close out 2013 grants is April 30, 2014. Neighborhoods that received
a lump sum advance amount for a 2013 grant must turn in all outstanding receipts or reimburse
the city for funds not used.
Study Session Meeting of April 28, 2014 (Item No. 13) Page 5
Title: Update on 2014/2015 Neighborhood Grants
2014/2015 Grant Deadlines
2014/15 grants will run from May 1, 2014 to April 30, 2015. All receipts for expenses incurred
in 2014 should be turned in by January 31, 2015. All 2015 receipts are due by May 1, 2015.
Funding Priorities
Up to $31,000 is available for grants to neighborhoods in this funding cycle, including $2,000 for
environmental components. However, with 27 organized neighborhoods eligible for funds, the
process is competitive. Neighborhood leaders are advised to request funds for their most
important needs. During the grant review process, greater consideration will be given to
proposals that enhance community connections and show a greater match amount. Lesser
consideration will be given to proposals for park improvements and proposals that show a large
expenditure for a single activity. Garage sales will be given the lowest priority. If grant requests
exceed the amount available for funding, garage sales will not be funded.
Funding for Insurance
When planning neighborhood events in parks, you may be required to make provisions to use
your own insurance. Neighborhood Associations are responsible for providing outside insurance
when planning neighborhood events in parks that bring outside equipment into the park such as,
but not limited to moonwalks, petting zoos, etc. Without clear delineation of who is responsible
in case of accidents, neighborhood leaders may be held liable.
To assist neighborhood associations with purchasing additional insurance, you can apply for a
maximum of $500 per neighborhood in addition to the standard grant request. This money is
strictly for insurance and cannot be used for any other reimbursement.
Award Limits
Group activities, social events and meetings are considered for funding up to a maximum
of $800 per activity.
There is a $2000 grant award limit per neighborhood for all requests. Any neighborhood
requesting more than $1500 is advised to include priority preferences on their application.
Neighborhoods can apply for up to $100 for environmental projects.
$500 per neighborhood is available for the purchase of insurance.
Study Session Meeting of April 28, 2014 (Item No. 13) Page 6
Title: Update on 2014/2015 Neighborhood Grants
Grant Process Steps
1. Apply
Applications must be received by 4:30 p.m. on Monday, March 24th, 2014. They may be
mailed or hand-delivered to Breanna Erickson, Community Liaison, City of St. Louis Park,
3015 Raleigh Ave. South, St. Louis Park, MN 55416. Grants may also be submitted by email
to berickson@stlouispark.org or faxed to 952-924-2676. Any applications received after the
deadline will not be eligible to receive a grant. Please email Breanna if you would like to
receive an electronic grant application.
2. Review Time
City staff and a committee of volunteer neighborhood leaders will review the grant proposals
and make recommendations for approval to the City Manager.
3. Final Approval
Final authorization of the awards will be approved at a City Council Meeting late April or
early May.
4. Signed Agreements
Within two weeks of approval, each recipient neighborhood will receive a grant agreement
from the City. The agreement must be signed and returned prior to any funds being released.
Pre-application Assistance
All applicants are strongly encouraged to talk to city staff as they work to identify projects and
put together their applications. This will help to ensure complete and accurate applications, as
well as streamline application review.
Electronic Application
Contact Breanna Erickson at berickson@stlouispark.org or 952-924-2184 if you would like an
electronic application (Microsoft Excel) emailed to you.
Questions?
Contact Breanna Erickson, Community Liaison
at (952) 924-2184 or berickson@stlouispark.org
Study Session Meeting of April 28, 2014 (Item No. 13) Page 7
Title: Update on 2014/2015 Neighborhood Grants
2014/2015 Neighborhood Grant Worksheet
The 2014/15 grant period begins May 1, 2014 and ends April 30, 2015.
Requested Amount
Amount
Recommended
Aquila $1,350
$1,350 $150 Trail Clean Up
$700 Picnic/Annual Meeting
$500 Newsletter/Mailing
$100 Environmental: Trail Clean up $100
$50 Insurance Request $50
Birchwood $1,975
$1,975 $475 Ice Cream Social
$700 Skating Party
$450 Movie Night
$350 Newsletter
$500 Insurance Request $500
Blackstone $1,996
$1,996 $321 Porta Potty at Blackstone Park
$160 Blackstone Park Lawn and Trees
$190 Summer Kick Off Party
$170 Summer Gathering
$75 Ice Cream/Float Social
$445 National Night Out
$215 Pizza Night
$260 Winter Gathering
$160 Operating Support
$100 Insurance Request $100
$100 Environmental Component: Flowers $100
Bronx Park $1,520
$1,670 $700 Annual Neighborhood Picnic $150 Cut made
for the
neighborhood
garage sale
advertisement
$150 Neighborhood Garage Sale
$420 Children & Family Social Activities
$200 Neighborhood Newsletter
$200 General Meeting Expenses
$200 Insurance Request $200
Study Session Meeting of April 28, 2014 (Item No. 13) Page 8
Title: Update on 2014/2015 Neighborhood Grants
Requested Amount
Amount
Recommended
Brooklawns $610
$610 $50 Kid's Egg Hunt
$300 Kid's Halloween Party
$260 National Night Out Block Parties
$75
Environmental Component: Fall Planter
Event $75
Brookside $1,100
$1,200 $500 National Night Out Block Party $100 Cut made
for the
neighborhood
yard sale
newspaper add
$250 Annual Meeting
$200 Parade & Picnic at Jackley Park
$100 Nbhd Yard Sale- Ads for newspaper
$150 Porta Potty at Jackley Park
$150 Insurance Request $150
$100 Environment: Weed noise wall $100
Browndale $2,000
$2,000 $400 Newsletter
$600 Fall Bonfire and Bluegrass Event
$500 Family Camp Outs
$100 Winterfest
$150 Spring Egg Hunt
$125 Earth Day Children's Event
$125 Independence Day Kid's Parade
$500 Insurance Request $500
$100 Environmental: Earth Day Clean Up $100
Cobblecrest $940
$1,100 $880 Hayride at Aquila Park Cut $160 from
general for not
specific project
request
$400 Insurance Request $400
Study Session Meeting of April 28, 2014 (Item No. 13) Page 9
Title: Update on 2014/2015 Neighborhood Grants
Requested Amount
Amount
Recommended
Creekside $1,135
$1,135 $10 Plant Exchange
$40 Creekside Clean Up
$700 Neighborhood Block Party
$75 Neighborhood Plant Urn
$50 National Night Out
$150 Porta Potty at Jackley Park
$40 Winter Event
$70 Annual Meeting & Admin Costs
$500 Insurance Request $500
Crestview $740
$737 $418 Neighborhood Picnic
$169 Neighborhood Signage
$50 Women's Social
$100 Block Captain Gathering
$500 Insurance Request $500
Eliot View $1,600
$2,150 $650 Annual Picnic & Election Cut $550 total,
mostly general cuts;
$100 cut from
Website
development, and
reduce $200 for
Garden Party
(suggest use of
SLP Staff Speaker).
$400 Garden Party with Ice Cream Social
$550 Night at the Movies
$450 Youth Activity/Fitness
$100 Website Development- Outside Assistance
$100 Environmental: Garden Party $100
Elmwood $1,925
$2,000 $75 Garage Sale (or to be used for advertising other events)
$450 Kids Halloween Party
$600 Porta Potty at Central Park Cut $75 for garage
sale advertising
$675 Summer Picnic
$50 Annual Meeting
$150 Annual Winter Bowling Party
$500 Insurance Request $500
$100 Environmental: Porta Potty at Parks $100
Study Session Meeting of April 28, 2014 (Item No. 13) Page 10
Title: Update on 2014/2015 Neighborhood Grants
Requested Amount
Amount
Recommended
Fern Hill $1,505
$1,505 $290 Movie Night
$305 Neighborhood BBQ
$290 Movie Night
$295 Fall Festival
$325 Jewish Community Outreach
Lake Forest $1,205
$1,205 $610 Neighborhood Annual Social Party
$265 National Night Out Block Parties
$125 Neighborhood Entrance Fence Repair
$55 General Association Supplies
$150 Neighborhood Garden Upkeep
$100 Environmental: Compostable supplies $100
Requested Amount Lenox $1,700
$1,900 $600 Neighborhood Newsletters Cut $200 for
promotional
mailing (suggested
hand delivering
spring mailing)
$450 Spring Social
$400 Summer Picnic & Volunteer Project
$450 Fall/Winter Social
$100 Environmental Component: Aluminum
refillable water bottle, customize with
Lenox Neighborhood design
$100
Minikahda Oaks $2,000
$2,000 $600 National Night Out/Annual Picnic/Meeting
$400
Neighborhood Beautification and
Landscaping
$300
Spring Egg Hunt & Neighborhood Clean
Up
$400 Fall Festival
$300 Holiday Progressive Dinner
$500 Insurance Request $500
$100 Environmental Component: Bass Lake
Park Improvements $100
Study Session Meeting of April 28, 2014 (Item No. 13) Page 11
Title: Update on 2014/2015 Neighborhood Grants
Requested Amount
Amount
Recommended
Minikahda Vista $1,349
$1,669 $100 Annual Meeting & Potluck
Cut $320 for garage
sale
$150 Annual Plant Swap
$320 Garage Sale
$164 Newsletter
$935 National Night Out
$100 Environmental: Plant and Herb $100
Minnehaha $1,875
$2,000 $700 National Night Out
Cut $125 for garage
sale
$700 Parent/Kid Playtime
$125 Garage Sale
$475 Neighborhood BBQ & Halloween Event
$1,950 Environmental Project
$100
Environmental: Neighborhood Clean
Up $100
Sorensen $2,000
$2,000 $690 Neighborhood Newsletters
$705 Annual Fall Social
$290 Annual Sorensen Business Meeting
$240 Webster Park Porta-Potty
$75 Wine & Cheese Fundraiser for STEP
$100 Environmental Experiential Education $100
South Oak Hill $475
$475 $250 Neighborhood Meetings
$225 Summer Ice Cream Social
Westwood Hills $2,000
$2,000 $700 WHNA Family Fall Party
$650 Winter Warm Up!
$300 Service Day/Ice Cream Social
$200 Annual Meeting
$150 Ladies Night Out
$500 Insurance Request $500
$100 Environmental Component $100
Study Session Meeting of April 28, 2014 (Item No. 13) Page 12
Title: Update on 2014/2015 Neighborhood Grants
$32,677 Total Requested by All Neighborhoods $31,000
$4,400 Total Insurance Request $4,400
$1,375 Total Environmental Request $1,375