Advisory Aspects

4 Pages·2003·2.8 MB·English

by  Alberta. Alberta Municipal Affairs

LOCAL GOVERNMENT SERVICES DIVISION
The ASSET system
A m unicipal-provincial initiative
2003-2004 Detailed
Auunddietr wParyo g|r a 2m
Beginning this y ear, municipalities will
use the Assessment Shared Services
Environment (ASSET) system to report
their annual assessments to the
province for assessment auditing and
equalization processes.
The provincial government has
Srcehfouonld rpeoqluiicsyi tion -
extended this y ear's assessment
reporting date from April 1 t o
September 30, 2003. This extension revision
provides municipalities with additional
time to enter their assessment data into
the system.
Beginning in 2003, municipalities will use the ASSET system to report
The ASSET system is a m unicipal- their annual assessments to the province for assessment audit and
provincial initiative that will allow Linear property
several recommendations of t he equalization purposes.
Equalized Assessment Panel to b e p ut assessment
into effect.
► E ach municipality's current Using current assessments will
assessment will be used to d etermine update | 3
ensure that each municipality's
The system has been developed as a its equalized assessment: In the p ast, equalized assessment reflects any
partnership project of t he Alberta Urban the p rovince had to calculate recent growth or decline in its appeal
Municipalities Association, the Alberta equalized assessments from the assessment base.
Association of M unicipal Districts and previous-year assessment rolls of
Counties, and Alberta Municipal Affairs, municipalities. There was no This will, in turn, increase fairness 5 *
technology in p lace to d o otherwise. and accuracy in the distribution of
Key benefits of the ASSET system
provincial grants to municipalities -
Beginning in 2004, the ASSET and in calculating requisitions for
The ASSET system has been developed system will allow Alberta Municipal education and other cost-shared
primarily in response to municipal
Affairs to use each municipality's programs with formulas that
requests for g reater openness, current assessment to p repare the include the equalized assessments.
transparency and timeliness in the equalized assessments. This will be
assessment auditing and equalization possible because the ASSET ► E very municipality will have /dlbena
processes. technology will greatly reduce the greater access to information used to
time involved in collecting, auditing audit and equalize the municipal
ASSET'S introduction will bring about and equalizing the annual assessments.
the following key outcomes for Alberta municipal assessments. MUNICIPAL AFFAIRS
municipalities: Continued on back
■■■■■■
2003-2004 Detailed Audit Program underway
The schedule for the 2003/2004 ► T he assessor and the CAO will before sending a n otification letter the need for some municipalities to
detailed audit program has been have opportunities to see and and requesting information from report similar information twice.
approved and the first detailed audits the affected municipalities.
are underway. breefsoproen d i t ti os f t ihnea l aiuzdeidt.o r's draft report The ministerial order that extends this
Where feasible, the Assessment Audit year's audit and equalization reporting
The Assessment Services Branch ► W hen the report is f inalized, it i s Unit proposes to co-ordinate the date does not apply to d ata requested
conducts a d etailed audit on each sent to the CAO, with a r equest to timing of d etailed audits with the for a d etailed audit in 2003.
implementation plan for the ASSET
municipality's assessment program on inform council of t he report's
a f ive-year cycle. During a d etailed findings and recommendations. Municipalities scheduled for detailed
audit, assessment auditors take a system. audits must remit assessment data for
comprehensive look at the Municipalities that will undergo a In p revious years, the department the detailed audit when requested to d o
detailed audit over the next year have requested information from all so.
municipality's practices and procedures
related to the administration of municipalities for the annual
been grouped into two schedules -A
assessment, and they identify areas for and B - in order to increase assessment audit program and, for In addition to conducting detailed
improvement. efficiencies in conducting the audits. applicable municipalities, requested assessment audits for eighty-nine
Detailed audits will commence in information separately for a d etailed municipalities in the fiscal year
The purpose of t his p rogram is t o April or May 2003 for the assessment audit. 2003/2004, the Assessment Audit Unit
provide each municipality with an municipalities listed in Schedule A. will also be conducting follow-up
objective opinion of t he q uality of i ts If p ossible, some of t he information audits in approximately 100
assessment roll. This opinion is b ased Schedule B w ill be reviewed over the reported through ASSET will be used municipalities completed in
upon legislation, best practices in the next few months to d etermine for both audits. Attention to the 2002/2003.
assessment field, and audit procedures whether the list needs to b e adjusted timing of d etailed audits will reduce
that are outlined in the p rovincial
assessment audit guides.
Ferintosh Tillage
Detailed audit process Schedule A Opportunity M.D. No. 17 Gadsby Tillage
Rocky View M.D. No. 44
To begin the detailed audit process, the
Assessment Services Branch sends a Villages Smoky River M.D. No. 130 HIraryi c Laanak e sV i Vlillalgaeg e
Alix Village
letter to the Chief Administrative Officer Barnwell Village I.D.s Longview Tillage
(CAO) of e ach municipality on the I.D. No. 12 ( Jasper) Nampa Mage
schedule. In the letter, the CAO is Boyle Village Nobleford Tillage
Clive Village I.D. No. 13 (Elk Island)
notified of t he upcoming audit and Rosalind Village
provided with a l ist of i nformation and Consort Village lliorsby Village
Coutts Village Other
data that the municipality will be Jasper Municipality Warburg Village
Empress Village
required to p rovide to the assessment
Foremost Tillage
auditor. The detailed audit process Special Areas Cities
Galahad Village
consists of a n umber of s teps: LSeptrhubcrei d Ggreo v eC i tCyi ty
Girouxville Village Towns
Bow Island Town
Glendon Village
► T he CAO is a sked to advise the
Halkirk Mage Castor Town
municipal council members of the Holden Tillage Coronation Town Towns
audit. Lomond Mage Eckville Town Bowden Town
Grande Cache Town Carstairs Town
Marwayne Village
► T he auditor will set up a GrimshawTown Cereal Town
Mymam Village
preliminary meeting with the CAO and Milk River Town Crossfield Town
Rylev Village
assessor to explain the p rocess, answer Devon Town
Sangudo Village
questions and make arrangements to Warner Tillage ORyaeinn b oTwo w nL ake Town DidsburvTown
receive the information. StavelyTown Elk Point Town
Counties St. Paul Town Drayton Valley Town
► T he assessor provides most of t he Hinton Town
Athabasca County No. 12 Vegreville Town
requested information and works with Beaver County Schedule B Innisfail Town
the auditor through most of t he Brazeau County Lac La Biche Town
process. Clearwater County Villases Mundare Town
Barons Mage
Grande Prairie County No. 1 Bawlf Village Olds Town
Picture Butte Town
Lac Ste. Anne County
Minbum County No. 27 Bentley Mage Redwater Town
Carmangay Village Vermilion Town
Smoky Lake County
Wembley Town
Stettler County Champion Village
Cremona Village WestlockTown
Warner County No. 5
Dewberry Mage
M.D.S Elnora Village I.D.s
Edberg Village I.D. No. 24 Wood Buffalo
Bighorn M.D. No. 8
School requisition — refund policy revision
The province is c hanging its school requisitions. The province has These corrections will be used to
property tax refund policy regarding therefore revised its refund policy to ensure the accuracy of c urrent and
corrections to equalized assessments. correspond with the p ractices that future requisitions using the
municipalities must follow. mitigation formulas.
The refund policy will no longer be
applied on school requisitions from This means that the p rovince will Please Note: The province will
prior years. only collect or refund on current year continue to adjust prior year
requisitions. equalized assessments education
Since municipalities are required requisitions when impacted by
under section 330 of t he MGA to l imit The province will correct all Assessment Review Board or
tax roll corrections to the current equalized assessments and school Municipal Government Board
decisions.
year, the same practice is b eing requisitions when errors, omissions,
applied to the p rovincial education or misdescriptions are discovered.
2003 linear property assessment appeals update
An application made by M unicipal The issues raised are not the same in
Affairs for leave to appeal to the each year -the evidence is d ifferent
Supreme Court of C anada on the and some of t he rules for assessment
Telus linear appeal for the 1997 tax have been changed over the p eriod
year has been denied. involved.
Telus Corporation filed appeals
2003 linear property appeals
against the assessment of i ts l inear
property for the 1997 to 2003 tax Each year, the linear property
years. assessment in Alberta generates
approximately $465 million dollars
The appeal for the 1997 tax year is in p roperty taxes. Assessments are
related to whether computer feature prepared by t he p rovincial
software installed in switching government and delivered to
equipment is a ssessable. The appeals approximately 1,400 companies and
for the 1998 to 2003 tax years 400 tax authorities.
continue the appeal about computer
software feature and include
Statistics
depreciation not provided by t he
Minister's Guidelines. About 532,000 linear accounts are
assessed in the p rovince. In 2003,
The Municipal Government Board approximately 15,700 appeals have
(MGB) heard the Telus appeal for the been filed (or t hree per cent of total
1998 and 1999 tax years in the spring accounts). This is a n increase over The provincial government assesses about 532,000 linear accounts which
of 2000, but the hearing has not been last y ear's number of linear appeals, generate approximately $465 million in p roperty taxes annually.
closed and the MGB has not released a which stood at about 11,000. Appeals
decision. The MGB has ordered that a have been made by 1 01 companies calculation formula used to arrive at planned for ownership changes and
further hearing be called to conclude and 10 municipalities. the assessment for well properties municipal allocation.
the 1998 and 1999 tax year appeals in (about 9,600 accounts)
light of the Supreme Court decision The 2003 appeals and issues include: ► A ppeals to b e amended pending
regarding the 1997 tax year. ► G roup Telecom (third year) ownership changes (3,357)
► A ppeals withdrawn (9,634)
► " Pipeline from an abandoned
The MGB has scheduled hearings for well" (570 accounts)
the subsequent outstanding Telus ► T elus appeal -the seventh
appeals (2000 -2003 tax years) for consecutive year (270 accounts) Hearings are being scheduled by t he
this fall. The fact that the Supreme ► A ppeals concerning ownership MGB and will run throughout the
Court of C anada declined to h ear the involve (about 3,600 accounts) summer and fall of 2003.
issues for the 1997 appeal does not ► C omplaint with the largest
resolve appeals for subsequent years. Amended assessment notices are
number of appeals - r egarding the
ASSET February 28 statutory deadline. The ASSET technology will allow complete, and when the department
has completed the assessment audit.
. . . c ontinued from front p age each municipality's assessment data
An enhanced standard audit test has to b e reviewed by t he department
been developed to clarify auditing before it i s u sed for the assessment This tracking capability can assist
Each municipality will be able to procedures for assessors and more roll and for p roperty tax purposes. municipal CAOs in fulfilling their
browse, view, run reports and analysis effectively measure the overall This prior review will help to responsibility under the Municipal
Government Act to ensure that the
on assessment-related data submitted relationship between the assessed increase ratepayers' confidence in
by m unicipalities across the p rovince. value and the actual market value of the q uality of l ocal assessments. property assessment function is c arried
property in a m unicipality. out properly.
These reports could include ► A lberta Municipal Affairs will
The ASSET system will also allow for provide linear property assessments ► I nformation on new building and
ianssfeosrsmmaetnito n b aosne , a e m quunailciizpeadl ity's improved techniques to b e developed earlier. Provincial assessors will development permits. The ASSET
assessment, year-over-year changes in to audit the assessments on properties provide municipalities, by J anuary system can provide the assessor with
assessment or equalized assessment, that rarely sell in the marketplace 31 of e ach year, with the detailed information on new building and
and the results of t he p rovincial (for example, shopping malls). linear assessment data that they dmuenvieclioppamleintty . permits in a
assessment audit. need to complete their assessment
Municipal processes will be rolls by F ebruary 28.
streamlined
This service is a vailable if t he
Access to the ASSET database will only
be g ranted to municipalities that have Several other benefits of t he ASSET ► T he department will p repare department or agency that issues new
signed a l egal agreement. These legal system will help municipalities and summaries on linear assessments building and development permits for
agreements contain rules regarding assessors streamline their and submit them in to the ASSET a m unicipality is r eporting them into
use of t he system. administrative processes. For system on behalf of t he the p rovincial permit data warehouse
example: municipalities. or the Electronic Permit System
► E very municipality will have ► A s ingle process will be introduced managed by t he Safety Codes Council.
for the submission of m unicipal Each municipality will be notified
access to a p rovince-wide database on
property values: The ASSET database assessment information. when its l inear summary has been For many municipalities, this service
will include information on property prepared and it w ill have ready could do away with the need to p repare
With the introduction of t he ASSET access to the summary on the
sales and other indicators of p roperty hard-copy reports for their assessors
values throughout the p rovince. system, two annual reporting ASSET system. every year on new permits.
processes are being combined into
Online tools
This will be a v aluable information one. ► T itle verification service. This
Several online tools, services and service can be used to match a
source for p roperty assessors. It w ill
Once ASSET is f ully implemented, information sources will be
help, for example, in p lacing values municipality's assessment records to
on parcels in municipalities or municipalities will submit their available through the ASSET system. the p rovince's land title records. It c an
neighbourhoods where few p roperty annual assessment data to Alberta help to identify assessable property that
sales occur. (In such cases, the Municipal Affairs through the ASSET These tools can be useful to
assessor will be able to access property system for both auditing and municipal chief administrative iass sm eissssmienngt f rroolml. a m unicipality's
sales data provided by m unicipalities equalization purposes. officers (CAOs) in overseeing the
assessment function and to p roperty Another online tool, called the Spatial
with similar economies, physical
attributes and market values.) They will no longer need to p rovide assessors in carrying out their Information (SPIN) System, will help
the audit files or the hard-copy duties. assessors resolve discrepancies between
Municipalities and assessors will be returns that were previously required the municipal assessment and land
able to run reports on market trends for the equalized assessment process. The ASSET system is u ser friendly title records.
and accessible to users with varying
and changes in assessed property
values throughout Alberta. ► A ssessment roll changes can be levels of c omputer skills. Because it To access the title verification service,
reported more efficiently. Once ASSET is a W eb-based system, any assessors need to ensure that land
identification number code (LINC)
► T he assessment auditing process is f ully implemented, municipalities necessary upgrades will be made
will be enhanced: The automated will no longer need to resubmit hard- centrally by t he p rovince and will numbers are on the assessment roll
nature of t he ASSET system has copy returns on assessment roll become readily available to and in the municipality's assessment
allowed for improvements to b e made revisions that result from property municipalities and assessors. computer system.
in the assessment auditing process. assessment appeals or corrections
For example, municipalities will be under section 305 of t he Municipal ► M onitoring assistance for LINC numbers are assigned to p roperty
able to h ave their assessment data Government Act. municipal CAOs. If t hey wish, by t he Land Titles Office of A lberta
audited and then use the audited data municipal CAOs can use ASSET to Government Services. The ASSET
to p repare their assessment rolls These revisions can be submitted help keep informed of t he database may be used to h elp find the
before the annual through the ASSET system in a m ore assessment activity in their LINC numbers in the municipality.
timely and convenient manner. As a municipalities.
result, timely adjustments can be ASSET News
made to a m unicipality's equalized For example, a m unicipal CAO can
assessment. request e-mail alerts to b e notified The Compass computer system
when the assessor transfers the
and the City of Edmonton have
► M unicipal data will be audited municipal assessment into the
successfully loaded test data on to
prior to the completion of t he ASSET system, when the assessor
assessment roll. has declared the assessment the ASSET system.
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