All posts in the topic State mandates property tax increases for 2 Mpls. neighborhoods, PD Fund & new TIF (no NRP) (Short link)

From: cheryl luger Date: Jul 07 22:23 UTC Short link

Three Items in this post from today's Ways and Means committee (see yesterday's
Meetings post for full agenda link):

1. State formula will raise propety taxes for 2 mpls neighborhoods,
2. Property disposition fund financial practices change referedto
 TPW committee - concerns of ad hoc decision making &removing
 **Checks and Balances**, and
3. New Tif staff directive (Target center, 'neighborhood projects'
 but no NRP).

best wishes,
cheryl luger
nokomis east

 ***************************

Verbal Update of State formula/property tax impact:

Although opposed by the city and removing any taxpayer appeal, 2 Minneapolis
neighborhoods will be receiving an increase in their property tax bill --
Nokomis and Southeast.

Don't complain to the city, though. Mpls. went thru the appeal process
believing it had an excellent case. They were notified last week by the State
Dept of Revenue and Finance Commissioner that this is a Formula and the
taxpayers'appeal time expired after the decision was made(and before city
received notification)...so comply.

Despite a drop in home values, the Median Home Value in the Nokomis area will
increase5% or $8,100 (property tax increase of $115 annually). Southeast's
median home value will increase $7,100 or $100 annually in property taxes.

Apparently, as a subdivision of the state, the City can't sue. Individual
property owners of condos, coops, homes (commercial is exempt) have only one
recourse...file in Tax Court (small claims). Since the filing fee was stated at
$250, it is expected that very few would find it worth their time to file an
appeal.

From the discussion, the State reviews a given number of muncipalities yearly.
Mpls and 19 other municipalities were hit this year. The State uses a formula;
however, this determination was based on an "infered ratio method". It wasn't
clear from committee discussion if this were a 'time lag' problem. Although the
city department said they will continue to challenge this formula as being
inaccurate, it sounds like there is nothing that can be done. Unless, as one Cm
said, a group of homeowners files a claim under one small claims fee...any
attorneys 'out there' willing to take this on?

A statement will go out to all property owners in SE and Nokomis explaining
what is happening. One Cm suggestedthat the statement also include some
background...a state action and not the result of any city/council action.
Councilmembers are bracing for a deluge of angry taxpayers complaints.

 ********************
On another council agenda item, a change in the Property Disposition fund was
proposed. Being a 'stagnant' fund, it is being suggested that there be a policy
giving more flexibility in using the funds to facilitate the
"Citys strategic real
estate plan as developed and approved by the Facilities, Space and Asset
Management
Committee."
http://www.ci.minneapolis.mn.us/council/2008-meetings/20080711/Docs/PropertyDispositionFund_RCA.pdf

It was refered to Transportation and Public works after concerns were raised on
potential uses, theimpact ofad hoc uses not going through due diligence
procedures and eliminating checks and balances onprojects or budget items.
(Perhaps transfers fromthe Common Fund {NRP}to the Legacy Fund projectsover the
past few years gave pause to opening up another Fund for 'other' uses?).

I had never heard of the Property Disposition Fund or the committee overseeing
it. A check of the city web page doesn't show it under the City Coordinator's
office...nor does a look at the Finance Dept page. A search led to the document
creating it in 1999...it's under Public works administration (but no link on PW
web page).
http://www.ci.minneapolis.mn.us/policies/facilities-space-asset-cover.asp

Why was this brought to Ways and Means without first going through the
department responsible for its administration? Oops!

The 'Checks and Balances' argument should raise red flags given the city's past
actions of 'neo-consolidation', removing (or attempting to remove)independent
boards/commissions and some 'creative' ways to fund projects.

 ***********************
The staff directive on the city's new TIF district (the one that won't include
NRP) passed committee unanymously and will go to council on
Friday. It will cover impact on LGA, Disparity funding and tax rates.
This needs to be done 'right away' because of the 2009 budget and 5 year plan.


I never wonder to see men wicked, but I often wonder
to see them not ashamed.
 --- Jonathan Swift