ITEM: 12.4 ADMINISTRATION - Joe Huss, Finance Director
Title
2014-18 ASSESSING AGREEMENT WITH ANOKA COUNTY
Background
Since 1988, the City of Blaine has contracted with Anoka County, through a Joint Powers Agreement, to provide for the tax assessment of property in Blaine. The most recent renewal of the agreement under which Anoka County provided assessment services was a five-year extension, signed in 2008, that expires with the completion of services performed for the 2013 property tax levy. The attached amendment to the JPA would extend those services for five years (through 2018.) Pursuant to the agreement, the fees for services are a function of the number of parcels assessed, and the property classification of those parcels, as outlined here:
Land Classification |
Current Rate |
Improved Residential |
$12.50/parcel |
Unimproved Residential |
$4.50/parcel |
All Commercial/Industrial |
$80.00/parcel |
Apartments |
$80.00/parcel |
In the cover letter attached to the proposed amended JPA, the County Assessor indicated that the above rates would remain unchanged for the duration of the agreement over the next five years. However, section V of the agreement is contradictory to this in stating "the cost for each type of parcel shall be increased according to the County Assessor's increase in operating costs, cost of living and merit adjustments established by the Anoka County Board of Commissioners for January 1 to December 31 in the year prior to the date of assessment." Staff sought clarification on this issue and received an e-mail from the County Assessor indicating that, to his knowledge, Anoka County has never implemented mid-term contract adjustments, and that he did not anticipate any adjustments during the term of this contract.
Per Council direction, staff was asked to seek further clarification on this issue and to explore the County's ability to provide valuation data in a more timely fashion. Council also directed staff to seek a change in the termination language of the contract. Currently, for Blaine to terminate the contract, notification to the County Assessor must be made two years in advance of the termination date. On January 3, 2013, the City Manager and the Finance Director met with the Anoka County Assessor and the Assistant Anoka County Attorney to discuss these issues. The result of this meeting was an agreement in principle to the following:
· The County will begin providing preliminary valuation data to Blaine by the end of February of each year; and will provide access to updates of the preliminary data concurrently as the data is updated.
· The City will draft a Letter of Understanding, to be signed by both the City and the County that will change the required date for notification of the contract termination from January 2 to May 1. City staff feels this is a mutually beneficial date in that it fits with the City's budget cycle while providing the County ample time to consider and adjust their staffing requirements.
· Section V of the contract, which allows for the County to increase fees if deemed necessary because of increased operating costs, will remain in the agreement. While County officials continue to assure the City that a mid-term increase is unlikely given current circumstances and past practices, City Staff feels that moving back the notification date in the termination clause provides Blaine with ample remedy should the County increase fees within the 5-year contract.
A draft of the Letter of Understanding, prepared by the City Manager, is attached for Council review.
Recommendation
By motion:
· Authorize City Manager to execute the attached Letter of Understanding;
· Authorize Mayor and City Manager to execute the attached Amended JPA for the Assessment of Property in Blaine.