Career Path

Mortgage Company Residential and Multi-family

Fee Appraisal Residential, Multi-family, Commercial

Assessment Business tax, Industrial, Shopping Centres Audit of Assessors Regulated Properties

Regulated Assessment Policy

Assessment in Alberta

All residential and non-residential properties are assessed at market value except for Wells, pipelines, electric power generation,

transmission, distribution, telecommunications and cable

Machinery and equipment Farm land Railway

The exceptions are called “regulated property”

Regulated Assessment Policy

The Regulated Assessment Policy Unit’s current

mandate is to develop and maintain policy, procedures,

rates and depreciation processes so regulated property

assessments reflect current construction costs,

standards and techniques wherever possible.

Minister’s Guidelines

The procedures, rates and depreciation

processes are compiled in the Minister’s

Guidelines

Minister’s Guidelines Current base year 2005

The Minister's Guidelines are equivalent to a cost manual.

The foundation for the cost manual is the

Construction Cost Reporting Guide (CCRG).

The CCRG is used to determine what costs are included and excluded in the calculations of base costs for regulated industrial property.

Rate Review Process

Every three years we review the policies, procedures and rates

Rate Review Process

RFP’s issued for typical construction costs and depreciation for Regulated Property.

Typical construction cost scenarios and depreciation from contracted engineering firms/property experts. (eg. Appraisers develop well site values)

Rate Review Process

The assessment models are based on a defined configuration for each property type using replacement cost.

Why use assessment models

Not feasible to individually cost each regulated property type. Some configurations unique to a company. Some to old that accurate up-to-date costs cannot be

found. Costing individually would not substantially improve

the quality of the resulting assessments.

Annual Modifiers (AYMs)

Annually, our consulting engineers re-cost the bundle of goods to determine the change in the cost for that year (AYMs).

Many factors contribute to the yearly cost change. Material Labour Equipment Supply and demand

Depreciation

Depreciation Electric Power Transmission/Distribution

Company specific as approved by EUB (phased in over 3 years)

Telecommunications including Cable TV Average age/age Life of telecom

property in Alberta (phased in over 2 years) 0.65-0.60

Wells and Pipeline properties

Based on average age/age life of wells in Alberta - 0.67

Stakeholder consultation

Stakeholder consultationStakeholder consultation review the contractors submissionsreview the contractors submissions provide inputprovide input review impacts of proposed rates and review impacts of proposed rates and

depreciationdepreciation

Recommendations

Report and recommendations sent to Minister

Future?