Taxing Jurisdiction Advisory Committee

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Taxing Jurisdiction Advisory Committee

• November 19, 2008

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TJAC Agenda- November 17, 2008
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Review of agenda new faces on TJAC

• Acceptance of Agenda
• New Faces
• Harry Mercer, VP Business and Customer Services,
  BCA, replaces Connie Fair, CEO BC Assessment
• Colin Fraser, Director, Customer and Systems
  Services, BCA, replaces Dave Chater, Manager,
  Planning and Risk Assessment and the new Chair
  for TJAC
• Mike Veenbaas , Revenue Manager, City of
  Abbotsford, replaces Karen Sinclair
• George King, City of Kelowna, replaces Paul
  Macklem, Director of Finance.

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TJACNov 19, 2008Impact of proposed legislated
changes to 2009 property assessments

• Mark Katz,
• Assessor, South Fraser Area

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Outline

• Market overview from 20,000 ft!
• Chronology
• Key features of proposed legislation
• Impacts for Local Government
• Preview Roll
• Preliminary Roll Reporting Comparison Report
• NMC Reporting / Calculation

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Market OverviewJul 2007 Jan 2009(?)

• Property values have been on a continual upswing
  for the past 8 years
• Despite values declining in the US markets and
  some parts of Canada, residential values in most
  areas of BC were increasing from the 2008
  Assessed levels (July 1/07)
• In the South Fraser Region, most residential
  properties as of July 1/08 showed increases of up
  to 10.
• In most areas values were still increasing until
  April-May and then started to drop.

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Market OverviewJul 2007 Jan 2009(?)

• While most values started declining in April-May,
  some geographic areas were experiencing declines
  prior to this, and values as of July/08 were in
  fact lower than the 2008 Assessed values
  (July/07)
• Sales volumes have declined dramatically in most
  areas since mid year. (50-60)
• Current listing prices indicate we will see
  further declines in the market as properties
  trade over the balance of the year and into 2009.

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Market OverviewJul 2007 Jan 2009(?)

• Our expectations are that when assessment notices
  go out in January/09 residential market values
  in most areas of the province will be below the
  value of those same properties in July/08, in
  some cases significantly lower.
• For some properties, the values will be below
  those levels set out on the previous 2008 Roll
  (July/07)
• Most commercial properties have not shown
  significant declines at this point.

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Chronology

• Nov 1st Government announces freeze on 2009
  Assessments
• Nov 13th Minister Krueger provides head-up on
  proposed modification to Don Cayo Vancouver Sun
• Nov 14th Modifications to proposed legislation
  announced based on input received by government
• Nov 20th Estimated date for changes to be
  introduced in the legislature

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Key Features of Proposed Legislation

• 2009 assessment notices will show values as at
  July 1st 2007 (previous roll value ) and as at
  July 1st 2008.
• 2009 Assessed value and Assessment Roll for Local
  Government will reflect the lower of these 2
  values
• Lower value applies to
• Class 1 Residential
• Class 5 Light Industrial
• Class 6 Business Other
• Class 8 Recreation/Non-Profit

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Key Features of Proposed Legislation

• Class 2 Utilities will stay at 2008 values
• Improvements regulated and frozen at July 1, 2007
  Rates
• Will not receive additional depreciation or cost
  factors
• Class 3 Supportive Housing (New) Set by
  regulation at nominal values
• Class 4 Major Industry
• Land at Lower of July 1/07 or July 1/08
• Improvements regulated and frozen at July 1, 2007
  Rates
• Will not receive additional depreciation or cost
  factors

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Key Features of Proposed Legislation

• Class 7 (Forestry) and Class 9 (Farm) land is
  regulated and will stay at July/07 rates
• Rules for Classification/Declassification for
  farm properties with apply as in past years
• Class 2 Utilities will stay at 2008 Roll values
• For properties with non market changes -
  assessments will reflect inventory as Oct.31/08
  but market level as of July 1/07 or July 1/08
  whichever is lower

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Key Features of Proposed Legislation

• Correction of errors will be reflected on the
  2009 Roll, at 2008 roll valuation levels (July
  1/07)
• Property owners or their representatives will
  have the right to appeal the 2009 Assessment as
  in prior years
• BCA Communications will need to deal with the
  fact that property owners may be appealing values
  at either the July/2007 or July 2008 market
  level.
• 2008 Roll decisions from PAAB and Courts will
  carry forward to the 2009 Roll so long as the
  same circumstances in the decision still apply
• Applicability of decision to other properties not
  the subject of the appeal will be decided on a
  case by case basis.

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Key Features of Proposed Legislation

• Currently, this legislation is proposed to apply
  to the 2009 property tax year only
• You will be kept advised of any new information
  and this will be posted to BCAs public website
  www.bcassessment.ca
• 2009 Roll Information
• For Government Section

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Impacts on Local Government

• Significant changes to BCAs roll production
  processes are being undertaken to correctly
  calculate and report out 2009 Completed Roll.
• Calculating Non Market Change (NMC) based on
  October 31st 2008 Inventory but July/2007
  valuation levels
• Reworking BCA 2009 Roll support communications
• Assessment Notice Inserts
• Web Site
• e-value BC (ASBA)-Will need to support review of
  values as of July/07 and July 08
• Press Releases

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Impacts on Local government - NMC

• For properties with
• New Construction/Development
• Subdivisions
• Zoning Changes
• Exemption Changes
• Changes in Class/Use
• Non Market Change Calculation will reflect
  inventory as Oct.31/08 but market level as of
  either July 1/07 or July 1/08
• Whichever date has the lower value
• November 28th Non Market Change (NMC)
  Reporting to Local Government _at_ 90
• Delayed from November 17th
• Previously provided dynamic access October -
  December

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Impacts on Local government Roll reporting

• October 31st Preview Roll Cancelled
• Given the nature timing of this legislative
  change BCA is unable to provide a preview roll
  for the 2009 Roll only
• October 31st Roll Comparison Report - Cancelled
• Roll totals vs. previous Roll year
• Market Change vs. Non-Market Change
• Roll total comparison reports can only be
  generated once new 2009 values have been
  determined, the lower value selected, and NMC
  calculated based on this selection.

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Impacts on Local government Roll Reporting

• End of November- Roll production completed
• Input to BCA valuation systems is essentially
  completed
• Final audits take place in early December
• Dec 5th /- is cut-off for changes not required
  to be processed via PARP
• December 31st Completed Roll reports prepared
• Unchanged
• 100 NMC Reported
• Distributed to Local Government by 1st week in
  January
• Supporting information on Market Movement, NMC
  etc.

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2009 Rolls and Notices update

• Information and reports
• Non Market Change reports.
• November 17th, is the date BCA promised to
  provide this information. Reports may be 1 week
  late. Estimated value for the province is 14
  billion Now Nov 28th.
• PVS (Property Value Summary) reports.
• Due to multiple values being presented on the
  2009 roll, BCA is not sure if we can produce
  these? Under review.
• Data Advice
• Will produce this at completed roll. How we do
  this is under review?
• eValue BC (formerly ASBA assessment and sales
  by address)
• Changes underway to show multiple sales 2007
  2008

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Your Questions/Concerns?
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• THANK YOU!

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Update on 2008 Projects and April TJAC Action
ItemsNovember 2008

• Wendy Norman
• Manager, Customer Services

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(No Transcript)
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Update on 2008 action items/projects

• Mailing address
• Streetsweeper 4 times a year
• Next run end of Jan, then every three months
• Big push pre-tax, then again for roll
• Ongoing audits supplement
• LTSA Address Project
• Engaging with LTSA to clean at source (legal)
• Hired consultant to address broader context
  (internal and external)

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Communications Project

• Report by Sierra and Internal Communications
  Report completed
• Major Recommendations
• Refine roles and responsibilities BCA and
  clients
• Create standard suite of templates
• Develop a portal
• Use communication matrix
• Allow membership self-service
• Integrate with Outlook
• Use new tech where possible, eg. RSS feeds

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Communications, continued

• Investigate Client Management System
• Improve the website, measure takeup and effect
• Use redundant Communications
• Segregate messaging monthly updates
  supplemented by urgent issues
• Publicly gather and respond to client questions
• TJAC recommends more presence
• GFOA, Western GFOA, Tax Collector Forums, LGMA,
  MISA, Tempest
• 2009 Project

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Information Interchange Project
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Information Interchange Recommendations

• Website Integration
• Data Warehouse
• ALBC
• Data Advice
• Self-Serve Reporting
• Spatial Information
• Information Product Development
• External Data Upload Service

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Special Messages

• Email communication, two conference calls
• 29 jurisdictions exercising option
• Review before frozen value?

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New Roll Number Format on Assessment Notice

• Example for
• 09 Vancouver was 001-019-632-06-0000
• 11 South Fraser
• 14 Surrey

09
200
001-019-632-06-0000
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NMC

• TJAC requests November 15 completion date
• Affected by Frozen Value Issue
• Next steps

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ALBC new version

• Rolling out December 15
• Two versions in place for 1 month
• CBT assisted by BCA Deputies
• Head Office Support

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Microfiche

• Municipalities and regional districts are not
  required to make a copy of the assessment roll
  available for public inspection
• Web-based product, with id/pw (because of owner
  name)
• Looks exactly like fiche
• Minimal search FOI requirement
• History next year
• Additional functionality or new product next year

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(No Transcript)
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Other Action Items from Last meeting

• Demo of new ALBC
• List of enhancements
• liveMeeting demo
• Future enhancement
• Appropriate number of Supp Rolls
• Can give detailed overview at next meeting
• PARP Decisions on Revised Roll
• Investigating report production

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Actions from Last meeting

• DA Glossary
• Internal reference guide as a template, or more
  basic?
• Procedures on returned and undeliverable notices
• Project has reviewed, made recommendations to
  exec
• QA overview of QA plan, results from BCA staff?

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Questions?

• ?

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BC Assessments Planned Projects for2009
2009

• TJAC Presentation
• Colin Fraser
• November 19, 2008

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Implement a Customer Management System

• Develop a database linking customers to the
  services and products consumed
• Track requests for services
• Measure performance
• Automate workflow
• Improve communications
• http//www.bcassessment.ca/local_gov_customer.asp
• Select Report to BC Assessment Customer
  Management
• Select Customer Business and Technical Change
  Communications Strategy

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Data Enhancement initiative to improve Mailing
Addresses

• Scope includes
• Formed joint project team with LTSA (Nov 08)
• Delivering on internal processes (Steelnet
  report)
• Delivering on UVIC project team recommendations
• Engaging Ministry of Small Business and Revenue
• Project deliverables TOR with LTSA to be
  finalized in December

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Data Collection enhancements

• GIS reference aerial photography (orthos
  oblique's) to BCA parcel
• Implement change detection software
• Use hi-resolution photography to measure property
• Use street front photography to assess quality

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Data collection enhancementsGrowth in BC
Properties
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Data collection enhancementsCompleted Roll Value
by Year 82-08
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Data collection enhancementsIn the Past

• Saying we sometimes used in the past to encourage
  appraisers conducting data verification
  fieldwork
• Real Estate doesnt come to you..you have to
  go to it.
• Result
• Less uniformity
• Cost - Mileage
• Time - Production

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Data collection enhancementsTechnology Today

• Today - Various Technologies now bring better
  real estate information to the Appraisers Desktop
• Advances in Technology has allowed
• Multiple streams of data at the desktop
• Oblique Imagery
• Street Front Photos
• Lidar
• GIS Integration
• Higher production yields
• Less cost to maintain data
• More uniform and consistent data
• Web based sharing of information with the public

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High Resolution Oblique Imagery
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Accurately measure 2,281 sq ft detached garage
and the addition built onto the house.RESULT
Added 325,000 in value to tax roll.
Addition to house
Detached Garage
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No CO issued for the subject property.
Discovered through imagery reviewAdded
707,000 to tax roll
2007
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Field appraiser visited the house 3 times over a
3 year construction period. No CO issued.
Identified with oblique imagery that house was
substantially complete. RESULT Appraiser made
4th site visit no access to property Added
1,035,000 in Imp value to tax roll thru
measurements from imagery.
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Merging building outlines with orthos
Missing Addition
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Street Front Imaging
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How does this all come togetherTechnology The
Desktop of the Future
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I.A.A.O. Standards on Mass Appraisal(Internationa
l Association of Assessing Officers)

• 3.3.5 Alternative to Periodic On-Site Inspections
• Jurisdictions may employ a set of digital image
  technology tools to replace a routine cyclical
  field inspection with a computer assisted office
  review.
• This tool set should include
• High-resolution street-view images that enables
  quality grade and physical condition to be
  verified updated at least every 6 years
• Ortho-photo images (minimum 6 pixel resolution
  in urban/suburban and 12 resolution in rural
  areas, updated every 2 years in rapid growth
  areas, or 610 years in slow growth areas).
• Low level oblique images capable of being used
  for measurement verification (four cardinal
  directions, minimum 6 pixel resolution in
  urban/suburban and 12 pixel resolution in rural
  areas, updated every 2 years in rapid growth
  areas or, 610 years in slow growth areas).

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2009/2010 projects

• Data Quality initiative -Inventory Reduction
• Reduce the key elements collected to assess
  properties from 128 to 54

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Data Quality initiative -Inventory Reduction

• The recommended optimal data set list represents
  the minimum list of elements needed for BCA to
  provide a quality uniform roll for residential
  properties across the province. The team
  identified and accepted minimal impact to BCAs
  quality measures of ASR and COD.
•  The primary benefits of implementing the Optimal
  Data Set include
• Effort savings during original data collection
  and maintenance.
• Cheaper Cost Manual maintenance (fewer data
  elements to cost in the future when revising the
  Cost Manual)
• Greater accuracy and equity in the variables that
  are publicly reported (external clients,
  stakeholders, shareholders etc.)
• Cheaper system maintenance for IT (fewer data
  elements makes changing the system architecture
  much easier)
• More concise self-reporting by the property owner
  with fewer variables to consider.

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Inventory Reduction - Example
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Utilize BC Hydro data to find new inventory

• Build Strategic Field Inspection Plans in
  Non-Permitted Areas
• Connect hydro meter GIS reference points to BCA
  Parcel info
• Locate new construction
• Pilot was successful

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Utilize BC Hydro data to find new inventory
Preliminary Findings Hydro Data vs BCA Data

• Currently BCA records show 263 vacant lots on
  Cortes Island
• 39 BC Hydro data points on vacant land
• 1 federal government dock
• 1 provincial campground/park
• 2 old homesites/campsites with power poles
• 35 remaining folios with 3 already tagged for
  servicing
• Net Result
• 32 properties have been identified using BC Hydro
  data points and flagged for inspection on Cortes
  Island.
• Inspection will determine if new improvements
  have been built

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BC Hydro Customer Care Points are Consistent with
BCA Property Address
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BC Assessment Vacant Land Indicated in Yellow(BC
Hydro connections indicated by green points)
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Develop an information interchange

• Make it easier to send and receive information
  for stakeholders and local government through
  improvement to BCAs web tools
• http//www.bcassessment.ca/local_gov_customer.asp
• Select Report to BC Assessment Customer
  Management
• Yarra Consulting report (to be posted)

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Additional 2009/2010 projects

• Web Mapping
• Connect GIS and parcel information through
  e-Value BC website for property owners
• Pilot in Kamloops for 2009 roll
• Permit property owners the ability to e-update
  some of the key elements
• Simplify owner agent access to valuation data
• Web integration project
• Improved navigation, standards, and look feel.
• Telephone and network upgrade
• Improve access to BCA
• Data Advice enhancements
• Part will be covered under the information
  interchange
• May not be fully completed in 2009

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Questions?