Assessment Practices Review Panel - St. Louis County

When considering new technology introduction, experience shows that this is more easily
accomplished within one centrally managed organization, rather than through a team of
independent players. This leads to the conclusion that a True County system would be
better positioned to roll-out new technology such as desktop based assessments.
Insufficient quality at the local level results in cost for the county
Local boards of Appeal and Equalization for all organized jurisdictions would continue to
exist. It is expected that under a True County system there is an increased likelihood that
issues can be resolved at the local level, avoiding more time-consuming and expensive
appeal costs at the County Board of Appeal and Equalization or the Minnesota Tax Court
levels.
Additional benefits not related to TUF
Additional benefits that have been identified with a True County system include:
- Lower average cost per parcel than a mixed system.
- Promotes efficiency in work planning (more predictable workloads).
- Removes a burden at the local level to manage the assessment process.
- Increased transparency results in healthier feedback and results in increased levels of
trust.
3.7.2 Cost Projection of a True County Assessment System
A cost projection has been made to quantify the financial implications of moving toward a
True County Assessment System. Currently the County Assessor’s office employs 23
full-time and one half-time staff. Under the True County system projection the County
would require a staff of 30.5 FTE without and 42.5 FTE with the City of Duluth. The
workload, staffing and detailed budget assumptions for this projection can be found in
Appendix VIII (True County Cost Projections).
The total cost estimate for the scenario excluding the City of Duluth is $2,382,415 and
translates to an average cost of $18.84 per parcel. This True County scenario would
increase the required budget of the Assessor office by 21% or $414,237. This would be
levy generated revenue. However, citizens would no longer need to pay for assessments
through their local levy and net pay less for their assessment. The exception in this
scenario is the City of Duluth residents. Their average per parcel cost would increase to
approximately $39 when we take into account the local average assessment cost of $20.70
combined with the county levy of $18.84 under this scenario.
The total cost estimate for the scenario including the City of Duluth is $3,316,653 and
translates to an average cost of $22.28 per parcel. This scenario would increase the
required budget of the Assessor office by 69% or $1,348,475. The reason the projected
increase for the scenario including the City of Duluth is higher than the present city
budget of $819,400 is because the City of Duluth is currently understaffed by three to four
FTEs. This budget increase would be paid for by levy generated revenue. However, in
this scenario too, citizens would no longer need to pay for assessments through their local
levy and net pay less for their assessment.
St. Louis County Assessment Practices Review Panel Draft Report February 2012 Page 30