Lorraine Kraemer, the city's revenues and taxation manager, addresses the committee meeting of council Monday night Chief financial officer Brian Rogers is seated next to her. Photo by Phil Nova.
Lorraine Kraemer, the city's revenues and taxation manager, addresses the committee meeting of council Monday night Chief financial officer Brian Rogers is seated next to her. Photo by Phil Nova. ___________________________________________________________
Increased city involvement in assessment appeals and the implementation of in-house assessment base management practices have brought North Bay additional municipal dollars and saved the loss of hundreds of thousands more, says Lorraine Kraemer, manager of revenues and taxation.
Kraemer gave a presentation at the committee meeting of council Monday night and said because of the ABM practices “and the dedication and hard work of the tax department staff,” $60,000 of additional revenue has been realized on the final supplementary tax billing, almost twice as much as the 2004 ABM budget of $33,750.
The revenue was generated, Kraemer said, by identifying properties that had not been assessed for improvements and/or additions, or new dwellings as far back as 2002, and properties that were classed as exempt when they should have been taxed.
As well there were "gross errors" found on the assessment rolls where properties were assessed at $22,000 and previously at $250,000.
Kraemer also said the city has been participating in all Assessment Review Board pre-hearing teleconference calls, and attending all full hearings held in the city hall council chambers.
Tax department reps have also been meeting with Municipal Property Assessment Corporation solicitors and agents and/or those representing property owners appealing their assessments “to discuss issues and negotiate potential settlements,” Kraemer said.
“As a result we have effectively reduced our assessment risk in a number of instances.”
Two notable appeals, Kraemer said, involved large commercial properties.
The first resulted in a settlement that saved the city $2.8 million of commercial assessment for the 2002 taxation year, $2.3 million for 2003 and $1.8 million for 2004.
The second resulted in the withdrawal of appeals, Kraemer said, “that would have exposed the city” to having to pay a refund of $325,000.
“I am certain that the positive results were due to our involvement, persistence and willingness to compromise,” Kraemer said.
Two outstanding appeals remain for large commercial and industrial properties, and they will be handled for the city by Municipal Tax Equity Consultants because of their complex nature, Kraemer said.
“If the parties agree with MTE’s proposals, $2 million of the $4 million at-risk assessment will be maintained for the 2003 and 2004 taxation years, again a substantial savings,” Kraemer said.
The city’s total assessment-at-risk remains high, though, Kraemer said, because 104 assessment appeals and 84 requests for reconsideration for prior years remain outstanding.
Kraemer said the actual impact won’t be known until the cases are resolved, which could be well into 2005.
“The 2005 preliminary budget estimate for the cost of assessment reductions is $650,000, an increase of $430,000 over last year’s budget of $210,000, but down from the estimate of $800,000 for the 2004 actuals,” Kraemer said.
“A detailed analysis will be presented to the General Government Committee during the budget review.”
