What happened?

According to Carver County officials, a data entry error resulted in extra zeroes being keyed in on the value of a Waconia parcel, changing the value from $18,900 to $189 million. A proofing system failed to catch the error.

So what?

The faulty valuation was used to determine how much revenue the county was expecting to generate for its 2008 budget. As a result, the county had been planning to receive about $900,000 more in property taxes. Tax notices sent to county residents last month were based on the incorrect figure.

Now what?

Because of the error, which results in proposed property taxes being off by about $29 for the owner of an average-valued home, the Carver County Board has called a special meeting for 7 p.m. Tuesday, Dec. 11, at the Carver County Government Center in Chaska to consider the issue. To align the budget with the property tax notices sent last month, the board would need to trim about $900,000 from its 2008 budget.

By Richard Crawford

Carver County officials have called a special meeting for next Tuesday to consider how to resolve a $189 million assessing error that skewed proposed property tax notices and projected tax revenue for the coming year.

The problem is linked to a Waconia property that was mistakenly valued at $189 million instead of $18,900, according to county staff.

The County Assessor’s Office apparently entered an incorrect estimated market value on a parcel during a routine data entry procedure resulting in extra zeroes being added to the value, explained Mark Lundgren, director of assessment, property tax records and taxpayer services.

“It certainly hasn’t happened in Carver County in my memory,” said Lundgren in regard to the scope of the valuation error.

Lundgren said it was an honest mistake and the county is taking steps to make sure it doesn’t happen again.

In the meantime, revised tax statements are being sent to residents in Waconia and county commissioners are meeting Tuesday to determine how to proceed. In addition to affecting property taxes and budget revenue for the county, the city of Waconia and Waconia School District also face a revenue shortfall.

The faulty $189 million valuation would have generated about $2.5 million in additional tax revenue. Of that, the county had figured to receive $900,000.

The county is planning to consider recommendations to cut the 2008 budget by $900,000 so that proposed property taxes will match tax notices sent to residents in November.

If the budget isn’t cut, Hemze said taxes for the average-valued home in the county would have to increase by $29 over the figure indicated on the November tax notices.

Planned road upgrades and facility expansion are already driving Carver County's 2008 budget higher. The proposed budget (as shown on the November tax notices) would result in property taxes increasing by 6 percent - or $73 - on the average valued home for the county's portion of the property tax.“It kind of threw a wrench into everything,” County Administrator David Hemze said of the faulty evaluation. “It’s unfortunate. It’s a mistake and we’re concentrating on responding to the mistake and trying to ensure that it doesn’t happen again.”When County Commissioner Tim Lynch heard about the problem last week, he said his first reaction was: “Oh, no.”Lynch, who represents Waconia, said his hope is that commissioners can help rectify the problem by cutting $900,000 from the budget.

“It’s a county mistake and it has huge ramifications,” Lynch said. “If we tell you your estimated property tax is this … it should be.”

Even if the county pares back its budget by $900,000, the city of Waconia and Waconia School District will need to make adjustments to account for less property tax revenue.

 Richard Crawford can be reached at editor@chanvillager.com.