CAPITAL REGION ASSESSMENT SERVICES COMMISSION BUSINESS PLAN
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1 CAPITAL REGION ASSESSMENT SERVICES COMMISSION BUSINESS PLAN Kingsway Avenue Edmonton, Alberta T5G X5 Tel: Website: crasc.ca Approved by the Board on 14 October 216
2 TABLE OF CONTENTS Page 1. INTRODUCTION MISSION BOARD OF DIRECTORS MEMBERSHIP MANAGEMENT ASSESSORS STRATEGIES a. SHORT/MEDIUM-TERM (1 January December 218) b. LONGER-TERM (1 January December 219) RISK ASSESSMENT COMMUNICATIONS PLAN APPENDICES A. SHORT/MEDIUM-TERM STRATEGIES FOR 1 JANUARY 216 TO 31 DECEMBER 217 RESULTS TO DATE B. RISK ASSESSMENT C. AUDITED FINANCIAL STATEMENTS D. FINANCIAL STATEMENTS - HISTORIC E. PARCEL COUNT ANALYSIS - HISTORIC F. BUDGET & PROJECTIONS to
3 -1-1. INTRODUCTION The Capital Region Assessment Services Commission ( CRASC ) was formally established by Alberta Regulation 77/96 and is governed by the Municipal Government Act, Part Regional Services Commissions (Articles 62.1 through 62.5). 2. MISSION To provide high quality, cost-effective assessment services, and fair and timely Assessment Review Board services, through efficient municipal cooperation. 3. BOARD OF DIRECTORS The Board of CRASC is composed of representatives of the members of the Commission elected for a four year term immediately following the municipal elections held in October 213. Mayor Doug Thomas (Summer Village of Seba Beach) Councillor Art Erickson (Village of Wabamun) Councillor Arjun Randhawa (City of Fort Saskatchewan) Councillor Stacey May (Town of Devon) Chair Deputy Chair Member Member 4. MEMBERSHIP The membership of CRASC comprises 32 municipalities (39,36 parcels), as listed in the following table - see next page.
4 -2- Ref City Town Village Summer Village (Number of parcels as of 3 June 216) 1 Argentia Beach (123) 2 Barrhead (2,177) 3 Betula Beach (71) 4 Bon Accord (66) 5 Crystal Springs (214) 6 Devon (2,813) 7 Fort Saskatchewan (11,77) 8 Golden Days (382) 9 Grandview (277) 1 Itaska Beach (97) 11 Kapasiwin (55) 12 Lakeview (73) 13 Larkspur (99) 14 Ma-Me-O Beach (293) 15 Mayerthorpe (849) 16 Millet (1,3) 17 Norris Beach (129) 18 Onoway (576) 19 Poplar Bay (249) 2 Redwater (1,444) 21 Seba Beach (389) 22 Silver Beach (126) 23 Silver Sands (356) 24 Smoky Lake (688) 25 Spring Lake (395) 26 Stony Plain (8,181) 27 Sundance Beach (155) 28 Swan Hills (929) 29 Vilna (252) 3 Wabamun (468) 31 Waskatenau (224) 32 Whitecourt (4,455) 32 1 (11,77) 11 (23,82) 4 (1,339) 16 (3,88)
5 -3-5. MANAGEMENT In mid 213 the Board retained Purbeck Services Ltd.. ( PSL ) to manage the affairs of the Commission. PSL has contracted to provide services to CRASC to the 31 st of December 217. The representatives of PSL primarily responsible for the conduct of the affairs of CRASC are: Archie Grover Richard Barham Manager Finance Officer 6. ASSESSORS The Board has retained the services of independent assessment firms to provide assessment services to CRASC members. These are: Mr. Mike Krim, Mr. Kevin Lawrence, Tanmar Consulting Inc., KCL Consulting Inc., #164, 15 Chippewa Road, Suite 179, 3-11 Bellerose Drive, Sherwood Park, Alberta, T8A 6A2 St. Albert, Alberta, T8N 5C9 Tel: Tel: Fax: Fax: Cell: Cell: mike@tanmarconsulting.com kevin@kcl-consulting.com Mr. Larry Horne Independent Municipal Assessment Corporation, (IMAC) (Industrial Assessor) 29, 9 Chippewa Road, Sherwood Park, Alberta, T8H 6J7 PO Box 3229, Station Main, Sherwood Park, Alberta, T8H 2T2 Tel: / Fax: imacassessment@gmail.com
6 -4-7. STRATEGIES The Strategies defined to achieve CRASC s Mission have been broken down based on: Short/Medium-term 1 January December 218 Longer-term 1 January December 219 a. SHORT/MEDIUM-TERM (1 January December 218) The Strategies comprise: i. Continuing to provide high quality, cost-effective, assessment services to the current membership of CRASC and to facilitate fair and timely adjudication of assessment complaints for all CRASC s Assessment Review Board members. ii. Maintaining a fiscally responsible financial position. iii. Updating the 3 year business plan. iv. Updating the communications plan. v. Reviewing the ARB program, particularly its financial structure and viability. vi. Maintaining the confidence of members of CRASC in CRASC being their preferred assessment services provider. vii. Continuing to review costs to determine where efficiencies may be implemented. viii. Enhancing relationship building with new and existing member municipalities. ix. Using the communications plan to further these identified strategies. x. Considering the availability of assessors given the current and prospective situation regarding manpower availability and its effect on servicing current and new members. This should include investigating expanding the current pool of contracted assessors - to be available should current active CRASC assessors not be able to fully service the Commission. xi. Examining the adoption of a CRASC assessors internship program. xii. Maintaining the commitment and relationship between CRASC and its assessors and members. xiii. Providing funds for enhanced expertise and specialized assessment services, including GIS functions that support assessment. xiv. Reassessing the risk management profile of the Commission. xv. Updating bylaws.
7 -5- xvi. Instituting suitable audit processes to ensure continuing high quality assessments from CRASC s contracted assessors. b. LONGER-TERM (1 January December 219) The Strategies comprise: i. Reviewing the short/medium-term results. ii. Reviewing the effectiveness of the communications plan and related activities. iii. Considering possible long-term business scenarios. This includes determining: > What size should CRASC grow to? > What geographic area should CRASC service? > What would be the implications for CRASC should a large member decide to leave the Commission? iv. Updating the business plan. 8. RISK ASSESSMENT A Risk Assessment schedule has been prepared and is located at Appendix B. 9. COMMUNICATIONS PLAN a. CRASC Members CRASC s communications with its members will concentrate on the following: i. Annual General Meeting of members ii. Workshop on topics of interest to members (only in CRASC board election years) iii. iv. Annual Finance Officers meeting Latest audited financial statements made available to members on CRASC s website v. Regular website updates vi. Maintain current updated information on assessment complaint processes on CRASC s website vii. Day-to-day contact with members
8 -6- b. Potential CRASC Members In recognition of CRASC s position of not wishing to compete with forprofit assessment services providers, CRASC does not proactively seek out new members. CRASC will, if interest is shown by a municipality, follow up with that municipality by providing information on CRASC s assessment and ARB services to the enquiring municipality. To provide potential CRASC members with some basic information on CRASC, a brochure in both hard copy and electronic form has been prepared.
9 -7- APPENDIX A SHORT/MEDIUM-TERM STRATEGIES FOR 1 JANUARY 216 TO 31 DECEMBER 217 RESULTS TO DATE
10 -8- CAPITAL REGION ASSESSMENT SERVICES COMMISSION SHORT/MEDIUM-TERM STRATEGIES FOR 1 JANUARY 216 TO 31 DECEMBER 217 RESULTS TO DATE STRATEGY 1 Continuing to provide a high quality, cost- effective service to the current membership of CRASC. 2 Maintaining a fiscally responsible financial position. RESULTS Ongoing. Now have 32 members. Member count in 1999, 18. Net surplus of $17,77 for the year 215. Members Unrestricted Net Assets stands at $237,141 at 31 December Updating the 3 year business plan. Completed. 4 Updating the communications plan. Done and ongoing. 5 Reviewing the ARB program, particularly its financial structure and viability. 6 Maintaining the confidence of members of CRASC in CRASC being their preferred assessment services provider. 7 Continuing to review costs to determine where efficiencies may be implemented. 8 Enhancing relationship building with new and existing member municipalities. 9 Using the communications plan to further these identified strategies. 1 Considering the availability of assessors given the current and prospective situation regarding manpower availability. Ongoing. New 3-year agreement and fee schedule to took effect from 1 st January 216. Ongoing. Support of Financial Officers meeting attendees was high and complimentary to CRASC. Ongoing. Ongoing. Lamont County, SV of Parkland Beach and Woodlands County joined the ARB program in 216. Have also had enquires from other potential new ARB members. Participants at the Financial Officers meeting in 216 expressed high satisfaction with the Commission. Ongoing. See Section 7.a.x. for future strategic direction.
11 -9- STRATEGY 11 Examining the adoption of a CRASC assessors internship program. 12 Maintaining the commitment and relationship between CRASC and its assessors and members. 13 Providing funds for enhanced expertise and specialized assessment services, including GIS functions that support assessment. 14 Reassessing the risk management profile of the Commission RESULTS Proposal before the Ministry of Municipal Affairs. Likely, due to current economic conditions in the Province and departmental staff changes, will need to revisit this matter again. Annual Finance Officers meeting held. Ongoing sessions with assessors. Ongoing. Annual update is scheduled for Updating bylaws Draft prepared for presentation at the 216 Planning Meeting.
12 -1- APPENDIX B RISK ASSESSMENT - 216
13 -11- CAPITAL REGION ASSESSMENT SERVICES COMMISSION RISK ASSESSMENT Ref Risk Mitigation in place Follow up required 1 Loss of a major member municipality may jeopardize the reputation, financial integrity and/or existence of CRASC. 2 A contract assessor may decide to withdraw from the Commission. 3 A contract assessor may be unable to continue to provide its services (death, injury, illness, etc.). - CRASC is financially sound. - Pricing of services is reasonable. - Quality of assessment services remains high. - Continuity of assessors involved with each member is generally good. - General member confidence in the quality of CRASC assessors and administration is high. - CRASC/Assessor contracts are in place until June 3, Administration has a policy of maintaining close relationships with all assessors. - Increasing the pool of contract assessors available to CRASC through the potential internship program. - We have confirmed with current assessors what steps they have taken to continue to provide services should their personnel become incapacitated. - Increase personal Board and Administration contact with larger members of the Commission. - Introduce a review program for assessors service delivery. - Municipal Assessment Services Ltd. (MASL) of Morinville has expressed interest in providing services to CRASC. Further discussions are planned. - See MASL above.
14 -12- Ref Risk Mitigation in place Follow up required 4 There may be insufficient assessors available to perform CRASC s growing level of current members assessments. 5 There may be insufficient assessors available to perform assessments for potential new members of CRASC. 6 The contract administrator could decline or be unable to continue to provide services to CRASC. 7 Mismatch of assessment revenue and expenditure due to assessors being on 5 year contracts while municipalities may withdraw from Commission on only 1 year s notice. - Current assessors are confident that they can take up the growth in CRASC s assessment needs through internal growth of their firms. - Growth rate currently around 1% to 2% per annum - Commission will maintain sufficient assessment services providers. - CRASC is not a highly complex operation and it should not be too difficult to retain an alternative, suitably qualified contractor. CRASC/Assessor contracts provide for adjustments to fees should members withdraw from the Commission. - See MASL above. - See MASL above. Succession Plan approved by board. 6 months notice required from administrator. - Bylaws being amended to require at least 13 month s notice of withdrawal by CRASC members.
15 -13- Ref Risk Mitigation in place Follow up required 8 Financial records may be lost or destroyed. 9 Assessment records in the custody of assessors may be lost or destroyed. 1 Assessors may lose assessment data, either by way of losing laptops or otherwise - leading to a potential security breach. 11 Assessors actions or mistakes could lead to legal action against CRASC and its assessors. - Computer financial records are backed up onsite weekly and offsite quarterly. - Member municipalities would likely assist in the recreation of essential records. - Assessment computer records are required to be provided to CRASC by the contract assessors on a quarterly basis. - Member municipalities would likely assist in the recreation of essential records. - General Liability and E&O insurance is maintained by CRASC and its assessors up to $5,,. - Annual Government of Alberta assessment audits take place and identify problem assessments and assessors. - Review of backup procedures of assessment records on the CAMA system will take place now that new assessors agreements have been put in place. - Determine and document the steps assessors take to secure members assessment data. - Review of backup procedures of assessment records will take place now that new assessors agreements have been put in place. - Ongoing. Obtain copies of assessors insurance policies on annual basis. - Institute suitable audit processes to ensure continuing high quality assessments from CRASC s contracted assessors.
16 -14- Ref Risk Mitigation in place Follow up required 12 Contract administration could convert CRASC s assets for own use. 13 Financial information provided to Board of CRASC may be false or misleading leading to Board making erroneous decisions. 14 CRASC pays assessors monthly, but assessors provide assessment information to members only once per year. An unethical assessor could be paid but not perform the services. 15 A CRASC assessor could entice members from CRASC to further his own business interests. 16 CRASC could become complacent and take its success for granted. - Double signatures on all cheques. - Annual external audit is performed. - No fixed assets owned by CRASC. - CRASC s financial records are externally audited annually and presented to the Board in person by a representative of the audit firm. - Regular assessment database backups are required to be provided to CRASC. - There is a clause in the CRASC/Assessor agreement that addresses this with the objective of ameliorating such a situation. Commission keeps in contact with members through Finance Officers Meeting, the AGM and Workshop and by day-to-day contact. - Assessors providing computer records to CRASC on a quarterly basis. - CRASC administration will continue to monitor. - Board and Management to review complacency on a regular basis.
17 -15- APPENDIX C AUDITED FINANCIAL STATEMENTS - 215
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30 -16- APPENDIX D FINANCIAL STATEMENTS - HISTORIC
31 CAPITAL REGION ASSESSMENT SERVICES COMMISSION HISTORIC FINANCIAL STATEMENT REVIEW ($) 11-Oct-16 1:25 AM The Commission commenced business on 9 January The Commission has a 31 December Year-End. Various years' audited financial statements have been adjusted by following year' auditors. This has resulted in surplus/deficit amounts carried forward not equalling the amounts brought forward in the following year. To provide some sort of consistency in this review, various adjustments have been made. to the audited statements to ensure that the total assets, total liabilities and total surplus do in fact agree back to the relevant year's audited statements BALANCE SHEET: Year 26 Year 27 Year 28 Year 29 Year 21 Year 211 Year 212 Year 213 Year 214 Year 215 ASSETS: Cash Accounts Receivable & Securities Capital Assets (net book value) 16,541 4,223 2, ,975 17,29 33,265 3,224 34, ,676 3,351 36, , ,463 47, , ,925 35, ,811 25,69 46, ,83 369,24 52, , ,761 56,56 489, ,927 55,99 452,26 LIABILITIES: Accounts Payable Deferred/Unearned Revenue 47,41 4,83 88,24 78,13 9,8 168,93 81,944 66,11 147,955 75,113 84, ,594 84,84 75, ,852 83,627 93, ,16 91,898 91,898 92, ,47 248,618 97, , , ,235 13,65 214,885 MEMBERS' NET ASSETS/(DEFICIT) 112, , , , , ,75 159,95 172,833 22,64 237,141 TOTAL LIABILITIES AND MEMBERS' NET ASSETS/(DEFICIT) 2,765 33, , , , , ,83 421, , ,26 REVENUE & EXPENSES: REVENUE: Assessment Services Other Miscellaneous/ARB Revenue - Note 1 487,944 4,41 492,354 64,55 3,499 67, ,678 3, , , ,344 74, ,18 731, ,84 1,31 26,31 74, ,276 1,86 24, , ,579 1,763 41, , ,561 1,6 49,57 876, ,23 1,99 4,59 914,279 EXPENSE: Contracted Assessment Services Administrative Services/Expenses Other/ARB Expense - Note 2 415,963 46, ,425 54,597 53,31 557,97 588,136 57, , ,971 75,513 73, ,29 6,53 45, ,518 65,794 67,667 38, ,25 683,299 62,314 32, ,136 76,957 73,233 35, , ,1 66,117 31,22 829, ,848 83,735 34, ,22 SURPLUS/(DEFICIT) FOR PERIOD 29,929 49,647 24,549 (9,14) (7,997) (16,88) 7,2 12,928 47,231 17,77 MEMBERS' NET ASSETS/(DEFICIT) START OF PERIOD 88, , , , , , ,75 159,95 172,833 22,64 GRANT CONTINGENCY RESERVE RECEIVED FROM/(PAID TO) MEMBERS (6,343) RESTATEMENT FROM PRIOR YEAR 1 1 MEMBERS' NET ASSETS/(DEFICIT) END OF PERIOD 112, , , , , ,75 159,95 172,833 22,64 237,141 As % of Total Expense: > Contracted Assessment Services + ARB 9% 9% 91% 89% > Administrative Services/Expense 1% 1% 9% 11% *** *** This 11% includes the setup cost of the ARB program expensed in 29 ($15,4, 2%). 92% 8% 91% 9% 92% 8% 91% 9% 92% 8% 91% 9% Note 1 - From 21 this is ARB Revenue Note 2 - From 21 this is ARB Expense
32 -17- APPENDIX E PARCEL COUNT ANALYSIS - HISTORIC
33 CAPITAL REGION ASSESSMENT SERVICES COMMISSION PARCEL COUNT ANALYSIS - HISTORIC 11-Oct-16 1:26 AM Year Parcel Count # Increase from Prior Yr. # Increase from Prior Yr. % Actual - 3/ ,59 2,281 2,669 22,773 24,467 3,497 32,388 33,721 34,294 34,948 36,494 37,55 37,799 38,751 39,36 5 1, ,14 1,694 6,3 1,891 1, , % 9.57% 1.91% 1.18% 7.44% 24.65% 6.2% 4.12% 1.7% 1.91% 4.42% 1.54% 2.1% 2.52% 1.43% Budget - 3/ ,98 4,78 41, % 2.% 2.%
34 -18- APPENDIX F BUDGET & PROJECTIONS to 219
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