Advisory Aspects

2005·6 MB·English

by  Alberta. Alberta Municipal Affairs

Alberta's celebration of the century
In this issue... ^
When Alberta became a p rovince
of those things haven't changed.
► * in 1905, people were hopeful for the The province is booming, Albertans
^ future. The economic outlook looked are optimistic, and assessors PBraagnec h 2 update
promising, the real estate market are meeting the challenges of a
V* was booming, and subdivisions demanding industry. In this edition
^ were expanding rapidly. The steady of Advisory Aspects, the department PDoang'et f3o rget your
f growth in population garnered an wishes to acknowledge the efforts of
* increased need for both commercial assessment practitioners and looks Drayton Valley oxfords
forward to the future of assessment
* and residential properties. Suffice to
say, assessors of the day were busy. in Alberta.
* One hundred years later, many Page 5
Bag of tricks required
Page 6
ASSET update
Page 7
Historical milestones of
equalized assessment and
education property tax
in Alberta
^ • *c.e— s i nuncn ^biuildDing oon Sreptrembeor 1 , 2 005.
Municipal Affairs Alberta Centennial
Branch update: New faces
and places
A h elping hand ‘We appreciate the willingness to see some familiar faces among all
The Assessment Services Branch of the city and county to lend us the new ones. I l ook forward to the
of Municipal Affairs is p leased their appointed assessors,” says challenges and opportunities that lie
to announce that two municipal Steve White, executive director of ahead,” says Chaney.
the Assessment Services Branch.
assessors are assisting the branch Peter Christansen worked at the
with initiatives related to industrial ‘We also appreciate the offers of
branch’s Grande Prairie regional
property assessment. Rod Risling, industry representatives to assist office in 1984. After 10 years, he
city assessor for Red Deer, has with reports and information moved to British Columbia and
accepted an assignment as team lead that may be required on matters returned back to Alberta in 1998.
related to the rates and modifiers
for the regulated assessment rate
He worked as an assessor with the
review. John Elzinga, assessment used in the assessment process for
City of Edmonton in the business
and tax department manager for
industrial properties.” assessment unit, where he was
Strathcona County, has accepted New faces in the office
supervisor since 2001. Christiansen
an assignment as team lead for
The department is also pleased to says he enjoyed his time at the
the initiatives on assessment year
welcome four new staff members:
city, but wanted to expand his
modifier development, and review
• Peter Christiansen, municipal career options. “It’s only been a s hort
of railway assesment practices.
advisor. Regulated Assessment while since I r ejoined the department,
Both assignments began in
Policy unit but I’ve enjoyed every moment of
September and will continue until
• Richard Chaney, advisor. Education it. Everyone has been extremely
December 31, 2005.
Tax and Assessment Advisory unit helpful and has made my move a l ot
Kir Luong,
easier. In particular, Ken Anderson
business analyst.
Minister has provided great assistance —
Message from the Linear Property
Assessment unit, thanks Ken!”
Kir Luong held various positions
and
Some things just don't change. In 2005 as in Yvette Chau, within government after obtaining
1905, Albertans work hard, face challenges
a d egree in geography specializing
with innovation and imagination, and have utilities advisor.
in quantitative methods like
an eye to making their world a b etter place.
Regulated statistics, GIS, databases, and digital
And that includes Alberta's assessors. Standards
This issue of Advisory Aspects celebrates and Utilities imagery processing. Luong says it’s
great to work in the branch, and
the many successes and accomplishments of Assessment unit.
he appreciates that the functions
assessors in Alberta. It g ives us, at Municipal
Affairs, the opportunity to acknowledge the important role you With 18 years of his job were well thought-out.
continue to play in shaping this province. The history of assessment of assessment “When I f irst read the advertised job
in Alberta demonstrates how the contribution of dedicated experience, description, I w as eager to learn more
professionals helps make progress a p ositive experience, and I t hank Richard Chaney about this position. It was actually
you for your unwavering commitment to excellence. has worked the job description and the diversity
On behalf of my department, I hope you enjoy this issue. We look for various of it all that attracted me. Plus, it’s
fascinating to learn about linear
forward to working with you in the years ahead. municipalities
property and how properties are
throughout the
assessed,” says Luong.
province and spent
Rob Renner a y ear working After graduating with a b usiness
Minister, Alberta Municipal Affairs as an assessor in
degree, Yvette Chau began working
Saskatchewan.
at the Alberta Energy and Utilities
‘It’s good to be here Board as a b usiness analyst. Chau
7 Advisory Aspects \ S eptember 2005 \ N umber 1 9
C E L E B R A NG ALBERTA'S CENTENNIAL
moved to British Columbia where working with municipal leaders on at matters associated with the
annual cost modifier process, and
^ • she obtained her master’s degree. assessment matters. “My intention
♦ She returned to Alberta and is to come and talk to you in your to review the assessment models
• worked at Alberta Government and rates for telecommunications
areas and hopefully gain a b etter first-
■
hand understanding of assessment properties. The department invited
' ■ Services as a b usiness analyst
concerns from your perspective, and stakeholder representatives from
■ " within the consumer services
and land titles area. Chau says to keep the lines of communication municipalities, industry, and
^ ♦ she has a g rowing interest in the open between us.’’ Chris Uttley has the assessment profession to
^ areas of assessment and appraisal. been appointed acting director of the participate in the working groups.
Linear Property Assessment unit in Steve White says he is continually
* ^ “1 applied for this position because
V it combined my current interest the interim. impressed with the high level
in the field of assessment with my of commitment by stakeholders.
Working groups met this year
^ previous background in the ever- ‘We have received some excellent
Earlier this year, several working
# changing utilities industry/’ she says. feedback from participants.” Pj
group meetings were held to look
^ “Everyone I’ve met has been very
friendly. I l ook forward to getting to
know them and making a v aluable
contribution to the team.’’
Working relationships a p riority Don't forget your
The department recognizes that
municipal officials and other Drayton Valley oxfords
stakeholders provide valuable
input regarding matters that are of
interest to both local communities and trusty shovel:
and the province. The Assessment
Services Branch of Municipal
Sound advice for an assessor of
Affairs is continuing its work with
municipal representatives and
other stakeholders to strengthen our
working relationships. Over the last
the '50s and '60s
year, these activities have included
attendance at municipal association Some people toss a c oin and make
eight to 10 feet deep,” he says. “It was
zone meetings and conferences, a w ish when they come across a
a g ood thing I h ad that shovel,” which
individual meetings with municipal well. But one summer day in 1961, was considered an essential tool for
councils, and working group Allan Wronko left all of his pennies an assessor back then, particularly
meetings to address policy and at home. An assessor for the in rural areas where it was often
operational matters. Municipal District of Leduc, Wronko used for soil grading. By wedging
had some business to tend to near the shovel into the sides of the well,
As a r esult of some specific needs
Calmar, not far from home. Armed Wronko created a m akeshift step to
in the north, Harold Williams,
with a s hovel in one hand, and a
director of the Linear Property get back to ground level. “It was all
notebook in the other, he proceeded
Assessment unit, has taken on a
to make his way across a d ensely just part of the job.”
special assignment. Williams has
grassed parcel of land. Though it’s been several years since
been working with a n umber of Wronko retired as an assessor, his
northern municipal administrators “Before I k new what happened, memories stay fresh in his mind and
to discuss assessment concerns and I l ooked up and all I c ould see was the dear to his heart. After all, if it were
identify strategies to resolve them. not for his first assessment job in
sky through a s mall hole,” he recalls.
Williams says he is p leased about He had plunged into an abandoned
Leduc, he wouldn’t have met his wife,
the assignment and looks forward to Doreen. She started working for the
water well. “Lortunately, it was only
Advisory Aspects \ S eptember 2005 I N umber 1 9
3
lOrt - • . ERTA’S CENTENNIAL
^ county the same year, in 1953, as a says chuckling,
^ * general office clerk. referring to the
rubber boots
♦
^ Wronko first became interested that became
in the assessment profession in
an important
■ the 1930s after a d iscussion with
piece of attire
♦ a g rade school friend. “1 asked among field
him what his dad did for a l iving. assessors
► 1 k new it had something to do with of the day.
taxation. When he told me his dad
Assessors at
^ was an assessor 1 i nstantly became
that time had
intrigued.” Years later, Wronko more than
^ crossed paths with an assessor and
assessment
former schoolmate while working at duties to fulfill.
a l ocal drilling site. He told Wronko
In many cases, FIRST GRADUATES OF THE MUNICIAL ASSESSMENT COURSE, APRIL 11, 1961
^ that he would soon be resigning
they also First graduates of the municipal assessment course (standing) were honoured after
from his position. Holding little collected taxes, completing Part 1 of the Appraisal Institute's requirement and two years of study with
hope of getting the job because he the Public Administration Division, Department of Extension, University of Alberta.
inspected
felt he lacked sufficient experience, Seated: Dr. Eric Hanson, Head of the Department of Political Economy; Dr. Walter John, President, University
buildings, and of Alberta; A.W. Morrison, Deputy Minister, Department of Municipal Affairs; Duncan Campbell, Director,
Wronko was surprised when he issued licences Department of Extension; Don Bancroft, Lecturer, Public Administration Division.
Graduates (standing): Nick Hanevich, P.H. Cordery, Ron Reid, City Assessor, Edmonton; A.D. Wronko,
heard the good news. “Thinking back, and gravel Assessor, M.D. of Leduc; Henry Powers, Ken Spread, George Skoreyko, Peter Melnyk and R.E. Barritt, V.L.A.,
1 t hink my drilling and production leases. At one Red Deer. Also graduated but not shown are Henry Cerlock, and Peter Klompas.
esaxypse.r i Tehnrceee wyaesa r sa n o fa dridge d w o rbke n epfrito,v”i d heed wpaosin t a iw ne l tfiamree, oWfrfoicnekro ’ ass wseulpl e rais or says. Some topics of y esteryear
included the assessment of p ipeline
enough experience for the rural
Albertan to understand some of the an assessor. “We were really a j ack-of- pigging equipment, farm land and
all-trades back then.” farm building exemptions, and the
terms coming into use at the onset
of the oil industry boom such as, With an assessment roil deadline impact of business and residential
developments on the fringes of
of December 31, Wronko recalls
“wildheads,” “bull plugs,” “Christmas
Alberta’s expanding urban areas.
trees,” and “pigs.” spending some New Year’s Eves “The wheel’s been invented already.
making sure assessment notices were
“Most summer months were spent out There’s just different spokes now.”
sent out on time. “Everyone would be
in the oilfield. We walked quite a b it
gone home. I w ould stay and run the
By 1954 most rural areas had
in our Drayton Valley oxfords,” he notices to the post office since I w as electricity, but no telephones.
Business communication was
the chief at that time.”
conducted mostly in writing, he says.
Wronko says it was important to
Dealings with Alberta Municipal
hire local citizens who knew the
Affairs were often by letter, but
land and districts. He credits being
able to discuss issues with other assessors preferred to speak to
someone on the telephone, says
assessors in the Edmonton area and
Wronko. Department officials were
the assistance of department staff at
the time for keeping him and his staff often invited to assessors’ meetings
to explain the intent of legislation
informed on a v ariety of topics.
and take back information to the
Many issues and challenges that department, similar to today, he says.
APRIL I960
assessors faced in days gone by
Assessing officers meet at the annual assessing “We liked to speak to department staff.
officers of Alberta convention. Mrs. Edna Fraser are not so different from those We became familiar with them and it
of Lacombe County is registering. R.E. Booth, assessors face today. In fact, they was a m ore personable way of doing
B.V. Bawol, and A.D. Wronko handled more
than 60 registrations for the two-day meeting. appear cyclical to a d egree, he business. We appreciated that.” ^
,*♦ ^ ,*•* Advisory Aspects \ S eptember 2005 | N umber 19
CELEBRATING ALBERT A'S CENTENNIAL
'■ B ag of tricks required to entice
assessors to the north
It made perfect sense for Henk new permanent residents as oil in our solutions. Staff are currently
► van Waas to look north when he sands development surges ahead,
testing the use of “Tough Books”
wanted challenge and adventure. along with a s hadow population
(handheld computers) in the field.”
of oil sands workers that adds as
Throughout Alberta’s 100-year Of course. Fort McMurray is not the
history, thousands like him had done
many as 12,000 people to the city’s only Alberta community with growth
the same, some with spectacular
official population of 61,000. “As issues. Based on his experience, van
results. And challenge and adventure far as assessments are concerned,
Waas believes careful municipal
are exactly what he found in a my biggest challenge is attracting
planning is the key to helping residents
genuine boomtown where oil is
qualified assessors,” says van and businesses manage the stresses
king, growth rates are high and Waas. “The trick is convincing them
that come with growth. The up side
rising, and experienced help is hard to move here.” In fact, two of his
to hnd and difficult to keep. Henk staff work on contract and live in to growth is p lentiful jobs, a s trong
economy, and a b right future for
van Waas is Regional Assessor for Edmonton, not an entirely perfect
the Regional Municipality of Wood solution. “Travel to Fort McMurray Albertans. “For every job created
in Fort McMurray, three others are
Buffalo, which includes the oil- can be difficult given road conditions.
created elsewhere in the province, and
rich boomtown of Fort McMurray. And no one really wants to work that
the end is not yet in sight,” says van
“Growth in the regional municipality far away from family and friends.”
Waas. “It’s an exciting time to be living
is truly amazing, and market values Currently there are eight assessors
in the Regional Municipality of Wood
on staff. As a r esult of staff shortages
are rising rapidly,” he says. “For Buffalo and the province of Alberta,
the 2003 tax year, assessed values and huge volumes of work, van Waas
increased by nine per cent. For says, “It's a c hallenge to be creative and despite the challenges, I b elieve it’s
the 2004 tax year assessed values bringing out the best in all of us.”
increased by 10 per cent and for
the 2005 tax year assessed values
increased by 14 per cent. Predictions
for the 2006 tax year are expected in
excess of 25 per cent.”
The price of land and housing
is an ongoing concern, even
with the recent release by the
provincial government of an
additional 1,000 acres of Crown
land for residential development.
Current market value for a
typical average 1,200-square-
foot home with double attached
garage in Fort McMurray is
approximately $400,000, almost
i
twice as high as a s imilar home
in Edmonton. Fueling the rise are
the needs of a c ontinual influx of
Advisory Aspects \ S eptember 2005 \ N umber 1 9
ASSET update: Technical committee looks to the future
When the Assessment Shared they would like to get from ASSET, The committee includes members
Services Environment (ASSET) or new features they would like to from the Alberta Association of
system came on line, system manager see on the system. The ASSET team Municipal Districts and Counties,
John Scott knew that assessors would the Alberta Urban Municipalities
welcomes suggestions, he adds.“We
need to learn how to transfer their are continuing to add new features
Association, the Alberta Assessors’
Association, the Cities of Calgary and
municipality’s data into the system. into the system,” he says. “I think
To help meet this need Scott — a nd it’s safe to say the system will never Edmonton, and Municipal Affairs.
other ASSET team members from be static. It will continue to evolve
A d ouble check of taxable
the Assessment Services Branch to meet the needs of stakeholders,
assessments
of Municipal Affairs — t ook to the changes in assessment practices,
As part of its review of the annual
road. He estimates that, in the past
and changes in legislation.” In the ASSET submissions, the Assessment
few years, team members have coming months, developmental
Services Branch has been comparing
met with assessors and municipal work is expected to be completed on
administrators at more than a n ew ASSET feature that matches the municipal assessment totals in
the ASSET system with the taxable
60 workshops or regional meetings provincial data on recent land title
assessment figures in municipal tax
across the province. The assessment transfers with municipal data on
community is now familiar with recent property sales. An assessor rate bylaws or other sources. “If we
see a s ignificant discrepancy, we
the data-loading operation, and could use this tool to help ensure that
are calling the municipality to try to
the ASSET system was used in the no property sales were overlooked in
annual audit process in 2004 and the assessment process. resolve any problems with the data,”
says Dave Sargent, an education tax
2005. However, the team’s workshop Technical committee looks to advisor with the branch.
days aren’t over. As time goes on, the future
assessors and administrators are
“One of the most enjoyable parts
Now that the ASSET system is in
focusing on another theme. They are
of my job is to speak personally
operation, members of the Equalized
asking, “What else can this system do Assessment Panel (EAP) Technical or on the phone with municipal
for me?’’ Committee have been discussing administrators in all parts of Alberta,”
Scott says workshop participants are the committee’s future role. “The says Sargent. “We are able to work
increasingly interested in using the technical committee sees its role together to help make sure their
annual assessment submission
ASSET system to search and locate
as an evolving one,” says Steve
information that can help them do White, committee chairperson and is complete and accurate — a nd
this means that later on, their
their job. For example, assessors executive director of the Assessment
may be looking for selling prices, municipality won’t be overpaying
Services Branch. “Even though
assessment values or other data ASSET has been implemented, we or underpaying on the education
on specific property types in other believe that there will continue property tax.” The branch uses
the assessment amounts from
municipalities that can help them in to be a n eed for a r epresentative
each municipality to determine its
putting values on similar properties group of municipal and assessment
within their municipalities. stakeholders who can bring issues equalized assessment and share of
the education property tax. Pg
Municipal administrators may
forward and discuss the options,”
be interested in other types of
he says. “We will also be looking for
information, such as the summaries the committee’s advice on future
available on the annual changes in advances or changes in the system, If y ou have suggestions for ASSET workshop
and on technical or policy matters topics, or would like Municipal Affairs to
each municipality’s total assessment hold an ASSET workshop in y our area, please
or equalized assessment. Scott says related to the assessment audit and
contact John Scott at [email protected] or
people are now letting him know
equalized assessment process.” (780) 422-8415 (dial 310-0000 to call toll free).
of the types of information that
•*** Advisory Aspects \ S eptember 2005 | N umber 19
I celebrating ALBERTA'S CENTENNIAL
. a H istorical milestones
Alberta became a p rovince on
September 7, 1905 with a rapidly increasing population. Requests for the creation of school districts and
emerging discontent with existing legislation led to the enactment of new legislation. A n ew Department of
Education was created in 1905, and the Department of Municipal Affairs was created in 1912. Since then,
the education tax system in Alberta has undergone many changes. Listed are some of the milestones in the
education tax process since the 1880s.
SEPARATE SCHOOL TWO METHODS OF RAISING
BR^^WOOL ORDINANCE
©iACTED DISTRICTS FORMED FUNDS
The Northwest Territorial In 1901, the territorial government At Confederation, the separate
provided for the establishment of school rights granted by t he
Government enacted Alberta's
first school ordinance, authorizing separate, Protestant and Catholic territorial government became
property taxation for schools. school districts. Ratepayers began entrenched in section 17(1) of the
Under the ordinance, government declaring their support for either the Alberta Act. During this period, some
grants and real property taxes public or the separate school board school districts directly taxed their
were used to finance public and based on their faith. supporters while others received
separate schools. Most school funding from municipal and local
districts levied and collected improvement districts.
their own taxes and provided
for all school operations.
However, the territorial | ASSESSMENT EQUALIZATION BOARD -
MUNICIPAL AFFAIRS, MAY 29, 1966
government was often a- ^
j.B. Laidlaw, chairman; R.L. Cross, secretary;
called upon to collect kfe-'j
D.A. Bancroft, member
-outstanding taxes. Wi
The role of the Assessment Equalization
Board was expanded in 1 922 and again in
1929. The board's responsibilities included
the hearing of appeals from municipal
level Courts of Revision as well as making
equalized assessments and giving general
advice to the Minister. In 1935, the power
to hear and determine appeals was taken
from the board and given to the Director
of Assessments.
FIRST OFFICIAL EQUALIZED PROVINCE PROVIDES MUNICIPALITIES COLLECT
ASSESSMENT EQUALIZATION GRANT SCHOOL TAXES
In 1918, the province passed In response to the insufficiency During the Great Depression, some
the Supplementary Revenue Act, of funds in the assessment-poor school jurisdictions had increasing
which provided for an additional districts, the province established an difficulty levying and collecting their
tax on every dollar of assessed equalization grant so that all schools taxes. The Tax Rates Collection Act
valuation by t he province to fund could operate for 160 days per year. transferred full responsibility for
school construction and a b oard to collecting school taxes from school
equalize assessments. boards to local municipalities.
continued on next page >>
10CS::
Advisory Aspects \ S eptember 2005 \ N umber 19
Liorary and Archives Canada
Blbliotheque et Archives Canada
3 3 286 53406970 9
WIMDIRG FOR ASSESSMENT-
WORD I S TRICT S
Under the School Foundation
Program Fund, the province provided and cars used to be the same size
funding to assessment-poor districts
to ensure a minimum standard of
education. However, there was
disparity in the levels of p roperty tax
revenue available to local authorities.
This created inequities in the ability
of municipalities to generate the tax
revenue they required to supplement
provincial grant funding. Again,
assessment-poor school districts
had to either increase the local tax "ASSESSOR HAS
rates or provide a minimal standard
of education.
This cartoon
PROBLEMS"
aHpapmielatroend Sinp e tchtea tor
in 1960.
PROPERTY TAX REBATE
Through the enactment of the on non-residential properties. The
Property Tax Reduction Act result was a shift in some of the
in 1974, the province began to education property tax burden
rebate a p ortion of the school to commercial operations, away
tax to residential and farm from residential and farm land
land property owners, thereby properties. This practice continued
increasing the education tax rate until 1994.
Advisory Aspects is p ublished
three times a y ear by t he
Assessment Services Branch of
Alberta Municipal Affairs. It
A NEW METHOD OF COLLECTING SCHOOL includes information of interest
PROPERTY TAXES
to municipal administrators and
In 1994, the provincial The move addressed inequities
property assessors in Alberta.
government took over among school jurisdictions in
responsibility for collecting all both the amount of p roperty
We welcome your comments and
education property taxes and taxes paid by local taxpayers,
distributing the revenues to and the revenues available suggestions for articles. Please
school boards. The costs of to support education. Today, write to us at:
education had been increasing education property tax
dramatically, and municipalities revenues are collected through Advisory Aspects
were receiving requests from the application of a uniform Assessment Services Branch
school boards to collect tax rate, applied to municipal
increasing levels of p roperty assessments, and distributed Alberta Municipal Affairs
to school boards to meet 15'^ Floor, Commerce Place
tax funding. The per-student
expenditure by s chool districts the local education funding 10155 - 1 02 Street
differed by as much as $19,000
requirements, Edmonton, Alberta T5J 4L4
per year, reflecting the relative
waeslsle s bsemienngt o fb a esaec. h jurisdiction's Fax:(780) 422-3110
Email: Julia. [email protected]
ISSN 1709-4178
Advisory Aspects \ S eptember 2005 \ N umber 1 9