1. Assessor Budgeting Assessors Annual School of Instruction October 8, 2007 Jim Nervig, Iowa Department of Management jim.nervig@iowa.gov 515-242-5240

2. Topics for Discussion Statutory Guidance Budget Process Attorney General Memo State Appeal Board Order – Montgomery County Conference Board Questions

3. Statutory Guidance Iowa Code Chapter 24 – Local Budgets  Defines requirements of local budgets Sets filing deadlines Sets publication requirements Gives the Department of Management (DOM) the authority to prescribe forms Sets the budget appeal process

4. Statutory Guidance (cont.) Iowa Code Section 441.16 - Assessors Budget (Assessment Expense Fund)  Includes the Assessor, the Examining Board and the Board of Review  The budget is to contain an itemized list of: The proposed salaries of the assessor and each deputy Amount required for field and other personnel, including their number and compensation The amounts needed for other expenses.

5. Statutory Guidance (cont.) Iowa Code Section 441.16 – (cont.)  Sets the maximum levy for the Assessment Expense Fund at $.27 per thousand of taxable valuation  Allows unexpended funds remaining at the end of the year to be carried forward.

6. Statutory Guidance (cont.) Iowa Code Section 441.50 – Appraisers employed (Special Appraisers Fund)  Allows the conference to employ appraisers or other technical or expert help to assist in the valuation of property  Sets the maximum levy for the Special Appraisers Fund at $.40 ½ per thousand of taxable valuation.  Allows Conference Board to transfer unexpended balance to Assessment Expense fund

7. Statutory Guidance (cont.) Other Funds  May levy for FICA (Iowa Code 97B.9(3)) and IPERS (Iowa Code 97B.9(3)) if salary fund is at maximum levy NOTE: FICA and IPERS must be paid from the same fund as the salaries. If the Assessment Expense Fund is at the maximum and the Special Appraisers fund is not, you can only levy and transfer IPERS and/or FICA to the Assessment Expense Fund, not the Special Appraisers Fund  May levy for tort liability insurance (Iowa Code 670) if Assessment Expense Fund is at maximum  Emergency Levy used in rare circumstances

8. Budget Process Forms and Instructions will be available in early December on the DOM website at http://www.dom.state.ia.us/local/misc/index.html Begin completing the forms using the actual data for FY07 that should be available from your County Auditor. Then fill out the current year column with data from FY08. Complete the FY09 column with your projected budget.

9. Budget Process (cont.) The Conference Board approves the proposed budget for publication and sets the date for the public hearing on the budget The public notice of the hearing must be published no less than 10 and no more than 20 days prior to the hearing At the public hearing, the Board hears any public comments on the budget Following the public hearing, and by March 15, the Board approves any changes and adopts the final budget

10. Budget Process (cont.) The Clerk (Assessor) signs the final budget and submits two copies to the County Auditor The Assessor emails the final budget Excel file to Jim Nervig, Iowa Department of Management at jim.nervig@iowa.gov. Jim will acknowledge the receipt of your budget file via return emailjim.nervig@iowa.gov

11. Memo from Christie Scase, Assistant Attorney General to Andy Nielsen, Deputy Auditor of State, dated January 4, 2006 Subject: Special Appraisers Fund  Discussed prior, conflicting AG Opinions Key Points  “It is my view that salary, benefits and other costs associated with employing appraisers and other personnel within a county assessor’s office may be paid from the special appraiser's fund, as long as the employees provide “technical or expert help to assist in the valuation of property.””

12. Attorney General Memo (Cont) “…I believe that section 441.50 can reasonably be applied to allow money from the special appraiser's fund to support the purchase and maintenance of a GIS system which is used for property appraisal.” Levying in the special appraiser fund for the purpose of raising revenue to transfer to the assessment expense fund is not “… a reasonable interpretation of section 441.50.”

13. Montgomery County Conference Board Budget Appeal FY 2007 - Order dated May 1, 2006 The Conference Board has the authority to hire outside legal counsel to assist in assessment cases. To the extent the Assessor provides technical or expert help, that portion of the Assessor’s salary and benefits can be paid from the special appraisers fund. Computer software and equipment used in the appraisal of property is “technical” help that can be paid from the Special Appraisers fund. Legal service to defend the Board of Review in litigation of property assessments is “other technical or expert help to assist in the valuation of property” and is an appropriate from the Special Appraisers Fund.

14. Questions Where do we get are starting numbers, the Treasurer or the Auditor?  The Treasurer’s ending balance does not reflect outstanding warrants, you need to use the Auditors ending balance (the beginning balance for the following fiscal year.) If we split salaries between Assessment Expense and Special Appraisers funds, where do we pay FICA and IPERS?  From the same fund as the salaries are paid

15. Questions (cont.) The Board of Supervisors has asked me to help pay some of our GIS Coordinator’s wages from the Special Appraisers Fund. How do I do this?  Pay the wages directly from the Special Appraisers Fund Should we transfer or spend from the Special Appraisers Fund?  If an expense is an allowable expenditure from the fund, it should be paid from the fund.

16. Questions (cont.) Where are we to budget for court costs?  If the costs are related to the appraisal process, these can be paid from the Special Appraisers Fund per the Appeal Board Order. In small jurisdictions where the Assessor does a lot of the assessments work, how do we document the time spent doing appraisals so it will not be questioned?  This is a question best answered by your audit firm, but maintaining records of time spent on appraisals would help

17. Questions (cont.) What do we have to do so we are not written up by the state Auditors? Are their rules the same, as we know?  Don’t do anything wrong!

18. Questions (cont.) Explain the intended use of the different fund balance designations  Reserved – designation done by an outside agency, not likely to be used by the Conference Board  Unreserved/Designated – the Board has made a formal designation in their minutes to set aside a sum of money from the ending balance for a specifically identified future purpose(s) for example, setting aside funds for a future revaluation  Unreserved/Undesignated – Everything else

19. Other Questions?