Item 3.8 Wright County Assessment Services AgreementTY
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MINNESOTA C
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
December 14, 2020
PRESENTER(S)
REVIEWED BY:
ITEM #:
Consent
City Attorney Kendall
3.8
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the Assessment Services Agreement with Wright
County.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/J USTI FICATION:
The City of Otsego contracts with Wright County for annual assessment services through a formal
Assessment Services Agreement. This agreement would provide for 2022 and 2023 property assessment
services, which relates to taxes payable in 2023 and 2024.
The Wright County Board has increased their per parcel rate for their assessment services. Some
explanation of the increase is included in the memo from Tony Rasmuson which is attached.
For reference, here is a summary of rates by year and respective actual costs and/or budget amounts. The
2020 and 2021 estimates do not factor any new development, which would increase the number of
parcels, and respectively the cost.
2018 $11.50 $101,911 (Actual)
2019 $12.00 $112,976 (Actual)
2020 $13.00 $125,118 (Actual)
2021 $14.00 $137,374 (2021 Budget)
2022 $14.00 $137,374 (Same Assumptions as 2021 Budget — NO GROWTH)
2023 $15.00 $149,115 (Same Assumptions as 2021 Budget — NO GROWTH)
City Attorney Kendall has reviewed the Assessment Services Agreement, and had no comment.
This information was presented to the Administrative Subcommittee at the December 9, 2020 meeting,
with recommendation for future consent agenda approval by the City Council.
SUPPORTING DOCUMENTS ATTACHED: I
• Memo — Tony Rasmuson, Wright County Assessor
• Assessment Services Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the 2022 - 2023 Assessment Services Agreement between the City of Otsego and
Wright County.
BUDGET INFORMATION
FUNDING:
BUDGETED:
General Fund —Assessor Department
101-41550-390
Yes
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WRIGHT COUNTY
fim M I NN E B OTA ASSESSOR'S OFFICE
MEMORANDUM REGARDING PROPERTY ASSESSMENT
CONTRACTS
November 2, 2020
In October of 2020, the county board reviewed the costs associated with performing the property assessment and the
revenue received by the jurisdictions that employ the services of the Wright County Assessor's Office. The Board
ratified the contract rates at the October 20th meeting. I have enclosed a copy of the assessment contract for the
2022 and 2023 assessment years, feel free to contact me if you have any questions, If you plan to renew your
contract with our office, please send a signed copy by January 15, 2021.
Findings by the Board included,
• Local assessors have been retiring, districts that were under contract with local assessors haven't been able
to find replacements, requiring the County to hire appraisers to perform the assessment for those districts
thereby increasing costs to the County,
• Legislation requires all assessor's to be accredited within four years of hire, resulting in higher up -front
expenses for training, Additional continuing education for all assessors is also being mandated by law.
Items ratified by the County Board (changes to the previous contract):
Our office will not be adjusting our rate for the 2022 assessment of $14 per parcel from the previous
assessment year.
• The fee is to be increased to $15 per parcel for the 2023 assessment. This fee is to be charged on all parcels
within each jurisdiction.
In addition, for districts that issue their own building permits:
• The fee for the assessment of any new construction or addition to a
residential/commercial/industrial/apartment with a permit value of $499,999 and under will be increased
from $50 to $60 per new building/addition.
• The fee for the assessment of any new construction or addition to a coinmercial/industrial/apartment with a
permit value of $500,000 and greater will be increased from $150 to $160.
• Note that most jurisdictions pass these costs on to the property owner as part of the permitting process
• This fee change is in effect for both the 2022 and 2023 assessments.
If you have any questions regarding the contract or these changes, please contact me via email at
Tony.Rasmuson(i7co.wriglit.mn.us or via phone at 763-682-7372.
Sincerely,
Tony Rasmuson, SAMA
Wright County Assessor
An Equal Opportunity Employer 1 10 2nd St. NW Buffalo, MN 55313 1 www.co.wright.mmus
ASSESSMENT SERVICES AGREEMENT
THIS AGREEMENT, made and entered into by and between the County of Wright, a
political subdivision of the State of Minnesota, hereinafter referred to as the "County" and the
City of Otsego a political subdivision of the State of Minnesota, hereinafter referred to as
"City/Township";
WHEREAS, said City/Township lies either wholly or partially within the County and
constitutes a separate assessment district; and
WHEREAS, under such circumstances the provision of the Minnesota Statutes, Sections
273,072 and 471.59 permit the County Assessor to provide for the assessment of property; and
WHEREAS, said City/Township desires the County to perform certain assessments on
behalf of said City/Township; and
WHEREAS, the County is willing to cooperate with said City/Township by completing
the assessment in a proper manner;
NOW, THEREFORE, in consideration of the mutual covenants contained herein it is
agreed as follows:
1. The County shall perform the 2022 and 2023 property assessment for the
City/Township in accordance with the property assessment procedures and practices established
and observed by the County, the validity and reasonableness of which are hereby acknowledged
and approved by the City/Township. The property assessment by the County shall be composed
of those assessment services which are set forth in Exhibit A, attached hereto and made a part
hereof by reference.
2. All information, records, data, reports, and the like that are necessary to allow the
County to carry out its responsibilities under this Agreement shall be furnished to the County
without charge by the City/Township and the City/Township agrees to cooperate in good faith
with the County in carrying out the work under this Agreement.
3, The City/Township agrees to furnish, without charge, work space, if needed, for an
appraiser to perform such tasks as document review; with such to§ks to be performed during
normal business hours for the City/Township..
4. The County agrees to indemnify and hold harmless the City/Township and all of its
agents and employees against any and all claims, demands, actions or causes of action arising out
of or by reason of the performance of work provided for herein to be performed by the County.
It is further agreed that any and all full time employees of the County engaged in the
performance of any work or services required or provided for herein shall be considered
employees of the County only and not of the City/Township and that any and all claims that may
arise under the Workman's Compensation Act of the State of Minnesota and any and all claims
made by any third parties as a consequence of any act or omission on the part of said County
employees shall be the sole obligation and responsibility of the County.
S. This Agreement shall commence on January 2, 2021 and shall terminate on June 30,
2023. Either party may initiate an extension of this Agreement for a term of two years by giving
the other party written notice of its intent to extend no less than 120 days prior to the termination
of this Agreement. If the party who receives said notice of intent to extend gives written notice
to the other party of its desire not to extend the Agreement at least 60 days prior to the
termination of this Agreement, this Agreement shall terminate on June 30, 2023,
6. In consideration of said assessment services, the City/Township agrees to pay the
County a fee of $14,00 per parcel for the 2022 and $15.00 per parcel for the 2023 assessment, In
addition, there will be an additional fee of $60,00 for each new construction residential or
commercial/industrial building permit with an estimated construction cost of $499,999,00 or less.
There will also be an additional fee of $160,00 per parcel for each new construction residential
or commercial/industrial building permit with an estimated construction cost of $500,000.00 or
more. These additional fees shall be only applicable in those cities or townships which issue
their own building permits.
7. Any notice which may be given or made by a party hereto under the terms of this
Agreement shall be in writing and shall be sent by United States Mail or personally delivered to
the other party addressed as follows:
To City: City of Otsego
13400 90th Street NE
Otsego, MN 55330
To County: Anthony P. Rasmuson, Wright County Assessor
Wright County Government Center
10 2nd Street NW, Room 100
Buffalo, MN 55313
8. The Agreement may be amended or modified only by written agreement signed by
authorized representatives of the parties hereto.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by its
duly authorized officers and delivered on its behalf, this Z Cj- day of o+� , 2020.
Dated: LISOZ-0 By
Dated: By
Dated: By
WRIGHT COUNTY
City of Otsego
0
EXHIBIT A
During the term of this Agreement, the County shall:
Physically inspect and value and classify real property, in accordance with State statutes.
2. Physically inspect and value all new construction, additions and renovations.
3. Conduct valuation reviews prior to Board of Review or Open Book Meeting.
4. Attend Board of Review or Open Book Meetings either in person or virtually. Per Board
request, make all necessary review appraisals.
Keep updated property records including physical characteristics, sales data, current
values and classifications.
6. Administer all State mandated property tax programs and maintain proper
documentation.
7. Print and mail valuation and classification notices.
8. Respond to taxpayers regarding assessment or appraisal inquiries and concerns.
9. Process all divisions, combinations, new plats, and annexations including revaluation and
reclassification of affected parcels.
10. Administer the abatement process pursuant to Minn. Stat. § 375.192 and county
abatement policy.
11. Make appraisals for, testify and/or negotiate all District Court and Tax Court filings.
12. Adjust estimated market values on all property annually based upon the market analysis
of existing real estate market conditions.