Revaluation PlanningJanuary 1, 2011 Base Revaluation

SAAA Annual Workshop

May 16, 2011

Revaluation Again? Swift Current began preparing for revaluation

as soon a we sent out notices for the 2006 base valuation in March of 2009.

As prepared as that timeframe may seem, we were already nearly 16 months behind in sales verification.

Significant inefficiencies existed in the office due to understaffing. At the time, it was a one person office. As such, one process typically stopped whenever a priority process arose.

Immediate planning went to enhanced staffing as the first step toward the 2011 base revaluation.

In the beginning… Sales verification quarterly batches were mailed

monthly until the process was caught up. Verification is now maintained on a monthly basis.

Income collection mailers were mailed to all commercial property owners (owner occupied and rental properties) in June of 2009. We have mailed these to rental properties in May of subsequent years.

Staffing was enhanced to include an Assistant City Assessor in November of 2009.

Assessment software was reviewed to establish efficiencies in getting data for sales verification and income collection out of CAMA.

Bumps in the road Having an extra body in the office did not

immediately pay dividends. Much like every other priority process, training impeded other processes.

Balancing cyclical functions are immediate and typically take priority over revaluation.

Software updates to include a Field Data Collection Module was an opportunity that presented itself in late 2010. The module has potential to significantly increase efficiency; but required modification based upon Swift Current’s business rules. Intensive planning was required at about the same time that 2011 Base Date MVS manuals were released.

That’s a first!!! Implementation of the 2011 base revaluation will be

the third that Swift Current has undertaken as an independent assessment jurisdiction. It is however, the first in which we already had an existing CAMA to prepare. Our AO went live on January 1, 2009.

We discovered that while the CAMA is temporal, the cost tables aren’t. We also quickly discovered that we ran out of server space when we made a REVAL copy of AO.

This prompted the Network Administrator to plan migration to a new upgraded server.

Fortunately, this also resulted in the City hiring a Database Manager! He is my saviour!

When it rains, it pours! We learn that migration to a newer server requires a

new platform for AO. The viewers will not run in the new environment. We commandeer a Windows 2003 server in order to function while new Windows 2008 server environment is explored and AO is prepared for migration. Unfortunately, there was a month delay in recalculating all sales to the new MVS base date.

We make the decision to implement FCD Module in the new environment. This shift implementation to June 2012.

In March of 2011 we are finally ready to begin revaluation analysis – about the same time that the 2011 Assessment notices are mailed. This creates the conflict of current year roll being priority over revaluation again.

The wheels are turning Upon recalculation of sales and export of

those sales to SPSS, a part of each day is allocated to analysis. This time is shared with whatever the day has brought – appeal preparation, supplemental inspections, meetings, etc.

Income data is exported from CAMA into excel; it must be configured into useable form for analysis. There are a couple of recalibrations to income and expense data, first creating the model, then calculating NOI in AO. Each requires a separate import and export.

Late arriving data from 2011 property owners slow the process.

Let’s go this way… Part of planning valuation models was based

upon decisions from Appeals during the current cycle.

Land size adjustment has been an issue in several historic appeals. The main issue is that the stock size multipliers are inflexible; while market sales do not necessarily follow a standard curve.

Swift Current has looked at this issue as fitting an adjustment to the sales array by using regression curves for size adjustment.

This process required rewrite of AO size adjustment curve tables based upon the analysis.

And make a right here The Swift Current Mall appeal (2009) clarified the

requirement for Swift Current to move to income. In the previous revaluation, income was only applied

to walk-up apartments in Swift Current. It was deemed that the lack of information for other

property groups introduced many gaps. We believed the adjusted cost values to be more reliable. Income was a shot in the dark.

Decision from the AAC was clear that because we did not use the income approach, failure to provide the income information by the property owner was inconsequential.

This cycle we worked diligently to close these gaps in information.

And all this time… We are still waiting for clearance to begin

testing our Windows 2008 server environment.

The City annexed six quarters from RM of Swift Current which became priority.

I am starting to see a trend here…

Near the end, or beginning, or something It was difficult to stay enthusiastic through November

2011. The 2011 Supplemental Roll was complete and all data was prepared, time adjusted and aligned for base rate analysis.

Land valuation was complete and in AO by Christmas. We changed our data source for residential property

from the historic access database to the AO dataset. This resulted in significantly different characteristics being considered in the model.

Residential modeling was a training session as well. Tami was involved so she could understand the process of modeling and effect of characteristics to value.

The days are getting brighter At about the end of January, the value of land

in Swift Current was completed. Multi-residential cost analysis and EGIM analysis was near complete and the data was aligned for commercial and residential analysis.

So… in other words, by the end of January, there were no building values yet.

That changed in February when Multi-residential income values were populated into CAMA. Soon thereafter, market adjusted commercial cost values were completed.

The second iteration of the residential models (expanded from one to two) were populated in early March.

Crunching more than numbers Beginning of March an only commercial

income modeling left. Our preliminary assessment roll was pushed

back to February 29, due to finalization of annexed properties.

Yes, the roll was open throughout the entire time that income modeling was ongoing.

Populated commercial income values into AO on March 25.

Submitted data to the Ministry of Municipal Affairs (excluding Agricultural value) on March 30.

And received seven appeals in Swift Current in 2012.

Not so fast! You’re not done yet. Some review of data models must still be undertake.

Planning of the commercial models were deemed for transparency, and were built to gross income reduced by expenses. The model became too complex. Reiteration of these models to net income is envisioned.

Residential cost analysis has been deferred and must still be completed. The cost analysis is not actually used, but is an excellent reference for the direct comparison model.

Agricultural valuation must still be coordinated with SAMA for compliance with the Saskatchewan Assessment Manual.

Rates for grain annexes must be updated in tables from the SAM in order to accurately value applicable properties.

And then… The City of Swift Current has announced its

intention to annex two quarters of the highway commercial strip from the RM of Swift Current. The expectation is this will be completed in August, 2012.

We received clearance to begin testing the Windows 2008 environment on May 7.

Announcement was made by the Chief Financial Officer that the City intends to implement a new tax software in 2013.

… and GIS in 2014.

Now let’s get the word out! Some discussion has occurred respecting

public awareness campaigns for implementation of new values.

The municipal election is scheduled for October 2012.

Agreement that specific values will not be released until after the Municipal Election.

General concepts and principles of revaluation will begin to be released to media sources after summer.

Open houses are planned for late November. Our target date for mailing 2013 Assessment

Notices on February 14. SHOWING THE LOVE!!

Revaluation Planning Questions?