Workshop Item: 2 - Joe Huss, Finance Director
Title
REVIEW PROPOSED 2014-2018 ASSESSING CONTRACT 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 that expires January 15, 2013. The attached amendment to the JPA would extend those services for five years (through 2017.) 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 indicates that the above rates would remain unchanged for the duration of the agreement over the next five years. However, section V of the agreement states that "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 of this issue from the County Assessor and requested that this section be amended such that the current rates remain in effect for the duration of the agreement. The County Assessor's response, via e-mail, is as follows:
"The contract language in Section V has been there since I can't tell you exactly when. It dates back to the late seventies or early eighties when annual inflation rates were running in double digits and large annual salary adjustments were being made. Anoka County added the language as insurance against what might happen to salaries over the contract period. One other city has asked about this and I consulted Dan Klint here at the county and he feels that it is important that it stay in and that all the contracts are the same. As a matter of practicality, I can't envision a scenario where it would be invoked and even if we did get into some kind of hyper inflationary period, we (Anoka County) would be giving you ample notice of any change so that you would be able to use Section VI to make other arrangements if you so desire.
I understand your thinking here and I understand that you'd like a guarantee. Unfortunately, I can't give it to you other than to offer our record going back to at least the early nineties with no mid-contract changes that I can find. We value our relationship."
The County Assessor is correct in that there have been no mid-term adjustments to JPA since its inception. The City can expect to pay more for assessing services each year as development occurs and more parcels are reclassified from Unimproved Residential to Improved Residential.
Recommendation
Staff is seeking Council direction regarding extending the Assessing Contract with Anoka County through 2018.