Item - 2016.AU7.3
Tracking Status
- City Council adopted this item on November 8, 2016 without amendments and without debate.
- This item was considered by Audit Committee on October 28, 2016 and was adopted with amendments. It will be considered by City Council on November 8, 2016.
AU7.3 - Audit of Water Billing and Collection - Phase II: Part 1 - Incorrect Vacant Land Status Properties Reduces City’s Property Tax Revenue
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on November 8 and 9, 2016, adopted the following:
1. City Council request the Chief Building Official and Executive Director, Toronto Building to develop an action plan to resolve dormant permits. The action plan should include:
a. a communication strategy to educate property owners about their responsibilities and obligations to inform the City about the progress of their construction project; and
b. a strategy to prioritize the review of permits that have been open for an extended period of time. The review should consider Toronto Building's current open permit initiative and property information available from other Divisions, such as properties coded as vacant land for lengthy periods, from Revenue Services.
2. City Council request the Director, Revenue Services and the Chief Building Official and Executive Director, City Building develop exception reports to monitor the classification status of vacant land properties, such as:
a. reports identifying properties with completed construction still coded as vacant land; and
b. reports of properties with open permits coded as vacant land and consuming water.
3. City Council request the Director, Revenue Services review the reported vacant land properties to identify such properties to the Municipal Property Assessment Corporation to ensure that appropriate property taxes may be billed and recovered.
4. City Council request the Chief Building Official and Executive Director, City Building to implement measures that will deter the occurrence of no show inspection visits. The measure should include an assessment of whether a fee can be charged to property owners for ‘no show’ inspection visits where these visits are pre-scheduled.
5. City Council request the Director, Revenue Services in consultation with the Chief Building Official and Executive Director, City Building coordinate with Municipal Property Assessment Corporation to identify data sources and reports that may improve on the appropriate and timely update of property classification and assessment by Municipal Property Assessment Corporation.
6. City Council not authorize the public release of the confidential information in Confidential Attachment 1 to the report (October 13, 2016) from the Auditor General, which deals with personal matters about an identifiable person, and is about litigation or potential litigation that affects the City or one of its agencies and corporations.
Confidential Attachment 1 to the report (October 13, 2016) from the Auditor General remains confidential in its entirety in accordance with the provision of the City of Toronto Act, 2016, as it deals with personal matters about an identifiable person, and is about litigation or potential litigation that affects the City or one of its agencies and corporations.
Confidential Attachment - Personal matters about an identifiable person. Litigation or potential litigation that affects the City or one of its agencies and corporations.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-97426.pdf
Confidential Attachment 1
AU7.3 - Audit of Water Billing and Collection - Phase II: Part 1 - Incorrect Vacant Land Status Properties Reduces City’s Property Tax Revenue
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Confidential Attachment - Personal matters about an identifiable person. Litigation or potential litigation that affects the City or one of its agencies and corporations.
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the Chief Building Official and Executive Director to develop an action plan to resolve dormant permits. The Action Plan should include:
a. A communication strategy to educate property owners about their responsibilities and obligations to inform the City about the progress of their construction project.
b. A strategy to prioritize the review of permits that have been open for an extended period of time. The review should consider Toronto Building's current open permit initiative and property information available from other Divisions, such as properties coded as vacant land for lengthy periods, from Revenue Services Division.
2. City Council request the Director, Revenue Services and the Chief Building Official develop exception reports to monitor the classification status of vacant land properties, such as:
a. Reports identifying properties with completed construction still coded as vacant land.
b. Reports of properties with open permits coded as vacant land and consuming water.
3. City Council request the Director, Revenue Services review the reported vacant land properties to identify such properties to the Municipal Property Assessment Corporation (MPAC) to ensure that appropriate property taxes may be billed and recovered.
4. City Council request the Chief Building Official and Executive Director to implement measures that will deter the occurrence of no show inspection visits. The measure should include an assessment of whether a fee can be charged to property owners for ‘no show’ inspection visits where these visits are pre-scheduled.
5. City Council request the Director, Revenue Services in consultation with the Chief Building Official and Executive Director coordinate with Municipal Property Assessment Corporation (MPAC) to identify data sources and reports that may improve on the appropriate and timely update of property classification and assessment by MPAC.
6. City Council not authorize the public release of the confidential information in Confidential Attachment 1 to the report (October 13, 2016) from the Auditor General, which deals with personal matters about an identifiable person, and is about litigation or potential litigation that affects the City or one of its agencies and corporations.
Origin
Summary
The Auditor General’s 2015 Audit Work Plan included an audit of the City’s water billing and collection processes. Our first report on Phase I on water collections was tabled at the March 31, 2016 Council meeting. During Phase II of the water billing and collections audit, the Auditor General performed an analysis of properties classified as ‘vacant land’ with ongoing water consumption to determine the appropriateness of the property classification and its impact on property valuations and property tax revenues.
The Phase II water billing and collection processes audit is still underway. The Auditor General is reporting separately at this time because of the possibility of potential property tax revenue leakage related to properties incorrectly classified as vacant land.
This report includes 5 audit recommendations. The implementation of these recommendations will result in improving the administration of building permits, inspections, and review of vacant land property assessments.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-97426.pdf
Confidential Attachment 1
Motions
That in accordance with the provisions of Chapter 27, Council Procedures, the Audit Committee reconsider this Item.
That the Audit Committee amend Recommendation 1b in the report (October 13, 2016) from the Auditor General to read as follows:
1b. A strategy to prioritize the review of permits that have been open for an extended period of time. The review should consider Toronto Building's current open permit initiative and property information available from other Divisions, such as properties coded as vacant land for lengthy periods, from Revenue Services Division.