San Francisco County Grand Jury • 2014-2015

Office of the Assessor-Recorder: Despite Progress, Still The Lowest Rated Office in the State a Continuity Report

Published: June 03, 2015 24 pages

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Findings 7 findings

The Office of Assessor-Recorder has made progress in clearing up the b acklog, and as of February 2015, only 39 properties had exceeded the four-year statute of limitations. Nevertheless, a severe backlog problem remains.

The lag in issuing assessments delays the receipt of tax revenue, leads to a loss in interest earnings on property tax revenue, and puts a burden on taxpayers who “are entitled to timely notification of assessments.” (2013 BOE Survey) 14

The funding from SCAPP and the matching monies from the City and County provide an opportunity to eliminate the Office of Assessor-Recorder backlog and raise their BOE rating.

The funding from SCAPP is limited in time and does not cover other OAR personnel needs, including key administrative positions that can keep the backlog reduction momentum going.

OAR does not have a written staffing analysis and plan to reduce the remaining backlog of unassessed properties.

There is still a need to communicate with the Department of Building Inspection about OAR needs in terms of the flow of information between the two departments, which has the potential for greater efficiencies for the OAR.

There is a disconnect between the OAR Annual Report and the

Recommendations 14

R1

The Office of Assessor-Recorder should raise the bar by meeting the state requirement and clear the backlog by the end of FY16-17.
R2

The Office of Assessor-Reco rder needs to conduct a written staffing analysis and generate an aggressive long-term plan to maintain a backlog-free OAR before the end of CY2015.
R3

The City and County needs to provide General Fund money (from the expected increase in revenue from property taxes due to a more productive OAR) in the FY15-16 budget to support new funding for key administrative positions and on-going funding for OAR positions after the expiration of the three-year grant.
R4

The Of fice of Assessor-Recorder should regularly meet with staff from DBI to transfer data more efficiently between the departments before the end of CY15.
R5

The 2015 and on-going OAR Annual Reports need to be written in a more explicit, consumer-friendly, jargon-free fashion, highlighting and clearly defining any efforts made in reducing the backlog, discussing the financia l implications for not doing so, and addressing any progress made, or obstacles encountered, in fulfilling the recommendations for office improvements. Response Matrix
R6

Improve the administration of the exemptions program by (1) properly applying the late-filing provisions of sections 270 and 271 when applicable, and (2) maintaining complete files on all exemption claims.
R7

Improve the LEOP program by timely reassessing all properties owned by a legal entity undergoing a change in control or ownership.
R8

Improve the new construction program by: (1) eliminating the backlog of assessable new construction, (2) expanding appraisal record documentation, (3) enrolling construction in progress at its fair market value for each lien date, and (4) valuing completed new construction at its fair market value.
R9

Develop a comprehensive appraisal program for review of properties that experience a decline in value.
R10

Improve the taxable possessory interest program by: (1) discovering and enrolling all taxable possessory interests, (2) documenting and tracking all taxable possessory interest assessments, (3) periodically reviewing all taxable possessory interests with stated terms of possession for declines in value, (4) reappraising taxable possessory interests in compliance with section 61, (5) assessing only private uses on publicly-owned real property in accordance with Rule 20, and (6) properly issuing supplemental assessments. 23
R11

Improve the leasehold improvement program by: (1) properly valuing structural improvements reported on the BPS, and (2) issuing supplemental assessments for structural leasehold improvements on the unsecured roll.
R12

Modify the audit production report to better track the pool of largest audit accounts as defined by Rule 192.
R13

Improve the business equipment valuation program by correctly classifying machinery and equipment reported on the BPS.
R14

Annually assess vessels at current market value.

Conclusions 1

CL1

The Office of Assessor-Recorder has generally made good faith efforts to comply with the 2005-06 Civil Grand Jury recommendations. The development of performance measures and updating job descriptions has added clarity to effective work expectations within the OAR. The City and County, generally, and the OAR in particular, should be commended for the strides they have made toward improving overall office performance and in reducing the backlog. Nevertheless, continuing problems exist and need to be aggressively addressed.