Ontario Good Roads Association and Rural Ontario Municipal Association

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Ontario Good Roads Association and Rural
Ontario Municipal Association
Presentation by Carl Isenburg, President and
CAO Municipal Property Assessment Corporation

• February 20, 2006

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Presentation Topics

• Service
• Determining Assessed Values
• Market Trends
• 2006 Priorities
• Questions

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Service Delivery
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Severances and Consolidations
MPAC will assess all lots and units identified
on newly registered subdivisions and condominium
plans that have been received at MPAC by November
1, 2005
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Severances and Consolidations

• Backlog of severances eliminated as of June 30,
  2005
• 18,746 severances completed in 2005
• 380 severances outstanding at January 1, 2006
• Steady state calculated as 1,500

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Property Inspection

• Allocated resources at the local level
• 2006 enhanced data integrity project
• 1.1 million to improve commercial, and
  residential data integrity
• Staff will review more than 500,000 properties
• Best way to ensure data is current
• Values are accurate

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Supplementary and Omitted Assessments

• Record 25.1 billion added to municipal
  assessment rolls

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Fewer than 3.25 of all properties will have
Reconsideration Requests.
Request for Reconsideration
2005 was a non reassessment year
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ARB Complaints
The adjustment of current value assessment
through the appeal and request for
reconsideration will be less than .75 of the
total assessment on the most recent roll.
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Approachable

• Toll free
• Service in 15 different languages
• Assist more than 500,000 individuals annually
• 80 of all enquiries resolved during the 1st call
• Allows field office staff to focus on important
  local issues
• In person
• Visit one of our 34 offices across Ontario
• Attend local taxpayer Information Sessions and
  MPAC-sponsored Open Houses

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Approachable

• Information Sessions and Open Houses
• MPAC staff visit municipalities and M.P.P.
  constituency offices throughout the year
• We participate in council meetings and taxpayer
  information sessions
• From June to December 2005, staff participated in
  540 stakeholder events across Ontario
• More than 10,000 attendees completed 7,300 exit
  surveys and, overall, the feedback has been
  positive
• (Scale of 1 to 5 with 1 disagree strongly, 5
  agree strongly)
• I was satisfied with todays information
  session 4.3
• This session addressed my concerns/questions
  4.18
• I have a better understanding of the assessment
  process 4.49

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Web Site

• www.mpac.ca
• Assessment update information
• Downloadable forms
• AboutMyPropertyTM, Municipal and School Board
  ConnectTM
• AboutMyPropertyTM
• Online service for property owners
• Currently over 100,000 active accounts
• Owners can review detailed information about
  their own property
• Assessment information for up to 12 comparable
  properties

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Future Enhancements

• www.mpac.ca
• Sample Market Model Report, with explanatory
  notes about how market models are developed
• Plain language information about the data
  elements used to determine assessed values,
  including quality classes, characters of
  construction, proximity codes, etc.
• AboutMyPropertyTM
• On-line, self-registration
• Plain language Multiple Regression Analysis (MRA)
  valuation details

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Municipal ConnectTM

• Internet based, direct access to MPAC database
  for municipal staff
• Flexible search options, Roll details, structure
  images, reports
• Delivery of MCP Preliminary File, Notice and
  Roll

• GIS Viewer - Ward Poll Thematic Mapping
• Current Household Counts information
• Supplementary and Omitted Assessments - pending
  and completed
• Outstanding activities flags for Building
  Permits, Request for Reconsiderations and Appeals
• Bulk Data Exchange Module Phase 1 - currently in
  development

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2005 Market Change Profile

• Preliminary Data File, Notice Based and Roll
  Based deliveries
• Data file identifies assessment base year value
  changes versus growth
• Available online through Municipal Connect

• Upper-tier municipalities receive aggregate data
  for lower-tier municipalities in their area
• Ward-by-ward summary delivered to all single-
  lower-tier municipalities, providing more
  detailed information
• A new indicator created to identify all supp/omit
  activity, and when they were issued

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Municipal Status Report

• Provides custom data to each municipality
• Issued quarterly to all 445 municipalities
• Contains in-year status at the municipal level
  for
• building permits,
• supplementary and omitted assessments,
• requests for reconsideration,
• ARB complaints and more

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2005 Property Assessment Notice
Previous CVA
Change Property Municipality
Clarification paragraph
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2005 Assessment Notice

• Most residential Assessment Notices included
• Previous assessed value as of June 30, 2003
• change in assessed value from June 30, 2003 to
  January 1, 2005, at the individual property
  level
• Average change in residential values for the
  municipality, at the residential tax class level
• Paragraph advising property owners that an
  assessment increase does not necessarily mean
  taxes will increase. The amount by which property
  taxes may change will not be known until the tax
  rates have been set and municipal tax policy
  options have been determined for the taxation
  year

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Proposed 2006 Assessment Cycle
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2006 Enumeration

• Objectives
• Efficacy
• enumerate only where necessary
• Efficiency
• enumerate at the lowest possible cost
• Currency
• enumerate with the highest degree of accuracy

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Stakeholder Initiatives

• Municipal Relations Group - Elections
• Quarterly meetings since April 2005
• Municipal Communications
• AMCTO Zone meetings (9 zones)
• Province-wide Day with MPAC sessions, incl.
  full-day Elections meeting
• Regional clerks meetings / presentations
• Municipal meetings / presentations
• Ongoing communications to municipal suppliers and
  vendors

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Product Quality

• Data Integrity Initiatives
• Update missing birth dates, unknown citizenships
  and residency codes
• Identify and correct ward / poll errors
• Continue working with MGS to obtain names of
  deceased persons
• Product Enhancements
• Voter Notification File - Unknown citizenship
  code and property code added
• Municipal ConnectTM - Ward Poll thematic layers
  added to the GIS Viewer

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2006 Enumeration Cycle
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Continuous Improvement

• MPAC recognizes that improvements must continue
• Working collaboratively with the Province to
  ensure the current system remains transparent and
  accountable
• Municipal Liaison Committees ensure
  communication, continued improvement, and
  coordination of assessment and enumeration
  activities
• Reinforce our commitment to work with
  municipalities to give Ontarians better
  assessment products and services

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Determining Assessed Values
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Assessing Properties

• What is assessable?
• Land and buildings
• What is not assessable?
• Chattels and equipment
• What factors impact residential property
  assessments?
• Property location
• Lot size
• Building size
• Quality of construction
• Age and condition of buildings
• Amenities (garage, pool, fireplaces, air
  conditioning, extra bathrooms, etc.)

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Determining Residential Values
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Market Trends
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Median Sale Price by MonthJanuary 2002 to August
2005
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Residential Market

• Strong consumer confidence and low Interest rates
• Demand for housing owned and leased
  accommodations
• Growing number seniors relocating to communities
  outside the GTA
• Surge of immigrants
• Canadian immigration in 2006 estimated to be
  255,000
• Ontario receives about 50 of the Canadian total
• Low Unemployment
• Influx of first-time buyers and move-up
  purchasers
• Urban redevelopment

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Multi-Residential

• 11 increase province-wide
• Higher increases in southwestern Ontario
• Investors seeking better yields outside the
  Greater Toronto Area
• Moderate increase in the Greater Toronto Area
• Low values in Northern Ontario - impacted by
  employment and population declines
• Strongly supported by sales activity

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Farms

• Assessed values are based on farmer-to-farmer
  sales
• Reduced supply of farm land
• Subdivision development
• Increased number of hobby farms
• Low interest rates
• Ontarios diverse agricultural industry
• Growth of greenhouse industry
• Expansion driven by nutrient management
  requirements
• Return of European buyers

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The Greenbelt
Source Ministry of Municipal Affairs and Housing
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Retail in Major Markets

• Home improvement chains, power centres and box
  retail are the major beneficiaries of the
  building and economic boom
• Market expected to maintain strong growth
• Continued low interest rates
• Immigration rate
• Strong economy
• Smaller retail and community centres experiencing
  more modest growth

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Industrial

• Small industrial
• Strong increase in land prices
• 12 increase in construction costs
• 12 average increase provincially in value
• Exceptions Cornwall/Brockville down 10-25 due
  to plant closures
• Automotive and manufacturing
• Higher input costs (energy and raw materials)
• Results of increased competition
• New Toyota plant in Woodstock
• Scheduled GM plant closures

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2006 Priorities

• Requests for Reconsideration
• Assessment Review Board complaints
• Ombudsman review and recommendations
• Enhanced communications
• Municipal Election 2006
• 2006 Assessment Update

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• Thank you.
• Questions?