TRD’s Property Tax Division Business Modernization Project Project Certification Implementation Phase June 27, 2019 Presenters: Stephanie Schardin Clarke, TRD Cabinet Secretary Donna Maestas, PTD Director Mike Baca, TRD CIO Larry Brotman, TRD GIS Coordinator Kelvin Ginn, TRD ITD PM

PTD Business Modernization Agenda: Property Tax Division Mission Property Tax Division Organization Project Goals and Objectives Benefits Project Delivery Timelines Accomplishments / Upcoming Milestones Certification History Project Budget Certification Request - Summary

PTD Mission The Property Tax Division helps local governments in the administration, and collection of ad valorem taxes in the State of New Mexico. The mission of the Property Tax Division (PTD) is to administer the Property Tax Code in a professional, and efficient manner ensuring fair, and equitable valuation of all property classes in the state.

PTD Organization There are 3 bureaus in the Property Tax Division: Delinquent Property Tax Bureau Appraisal Bureau State Assessed Property Bureau

Delinquent Property Tax Bureau The Delinquent Property Tax Bureau is responsible for collection of real property taxes, delinquent for more than two years, for each of the 33 counties in New Mexico. Counties send delinquent property lists to PTD Courtesy letters sent to property owner Installment agreements Auctions Return of $11.5 million in base taxes to counties

Appraisal Bureau Provides oversight and assistance to County Assessors including: County Valuation Protest Boards Trainings Evaluations Orders and Instructions Review and approve Notice of Values Forms Technical Assistance Appraisals and Appraisal Reviews for: Public owned or leased real property Donations for tax credits (conservation easements) State Assessed property reappraisal project Special requests regarding real property acquisitions

State Assessed Bureau Valuation of specialized industries including: Railroads, Communication systems, Pipelines, Public utilities; Airlines, Electric generating plants, Construction machinery and equipment, and other personal property of persons engaged in construction that is used in more than one county; and Mineral property, excepting oil and natural gas related property The Bureau is also responsible for: Notice of Valuations to taxpayers Protest Hearings (informal, formal, and District Court) Certification of Tax Base and Abstracts Business Personal Property Guidelines

PTD Business Modernization Project Goals and Objectives Define, develop and deploy an Enterprise Information Management System to replace and streamline manual processes in Property Tax Division of TRD. Delinquent Property Tax Bureau Develop and deploy workflows and web maps for managing delinquent property tax field collections, auctions and installment agreements. Appraisal Bureau Develop and deploy a system that stores and manages real property data contained within the appraisal and mapping systems of thirty-three New Mexico county assessor offices. Develop and deploy workflows to automate the administration of the assessor evaluation and audit process. State Assessed Property Tax Bureau Develop and deploy workflows and applications to automate the State Assessed Properties tax administration program. From the Charter – Business Objectives 1: Enforce data integrity through automated collection of standardized county delinquent properties reports. 2: Use data analytics and reporting tools to increase sales of delinquent properties through targeted account identification and management. 3: Use interactive public web maps to improve marketing and increase sales of delinquent properties. 4: Enhance taxpayer reporting and filing experience through State Assessed Property “E-File” application. 5: Use data collection, storage, and archiving to increase efficiency and enhance state assessed property collection and reporting workflow. 6: Increase integrity of state assessed property protest case management. 7: Enforce data integrity through automated collection of standardized county property valuation reports. 8: Increase efficiency and integrity of property valuation data exchange between PTD and DFA Local Government Division. 9: Perform assessment of county property tax code application practices through interactive and iterative data sharing exchange. 10: Increase efficiency of real property tax value protest case management. 11: Aggregate real property ownership, valuation, and geospatial data from 33 counties at least once annually.

PTD Business Modernization Benefits Delinquent Property Tax Bureau Increase resolution of delinquent property tax accounts in all thirty-three counties. Query, report, and publish delinquent property account status and trends as needed. Appraisal Bureau Report county evaluation and audit status results and trends as needed. Report training and educational status for assessor staff by individual, group, and county. State Assessed Property Tax Bureau Increase accuracy and efficiency of taxpayer reporting. Increase accuracy and efficiency in compilation of net taxable values for budget making and rate setting statewide.

PTD Business Modernization Benefits (cont’d) A map-enabled statewide property tax system… … will dramatically improve the Division’s ability to model the impact of policy performance and to inform inquiries regarding legislative proposals.

PTD Business Modernization Project Delivery Timelines

PTD Business Modernization Accomplishments / Upcoming Milestones Milestone Initiation Planning Implementation Appropriation Authorized Mar. 29, ’16 RFP Published Aug. 3, ’17 Prime Contract Executed May 14, ’18 Requirements Complete Apr. 23, ‘19 Apr. 23, ’19 Design Complete TARC Approval May 9, ’19 Property Info Exchange Go Live June, ’20 Appraisal Protest Go Live Delinquent Property Go Live July, ’20 Appraisal Eval/Ratio Go Live May, ’21 GIS Integration Go Live State Assessed Protest Go Live June, ’21 State Assessed eFile Go Live Project Closeout December, ’21 Design Complete: 6 Business Requirements Documents. 7 Technical Requirements Documents 1 System Architecture Document

PTD Business Modernization Certification History Date / Phase Certification Amount Funding Source May 25, 2016 (Initiation) $ 140,000 Laws 2016, Chapter 11, Section 7, Item (6) Feb 28, 2018 (Planning) $ 565,191 June 27, 2019 (Implementation) $ 1,294,809 Laws 2019, Chapter 271, Section 7, Item (8) Total Certified: $2,000,000 Laws 2016, Chapter 11, Section 7, Item (6) $2,000,000… “To modernize the property tax business system. The appropriation is from the delinquent property tax fund.”

PTD Business Modernization Budget - by Major Deliverable Task Name Init. Ph. Plan Ph. Imp. Ph. Total RFP Consulting Services $ 33,521 $ 0 $ 0 $ 33,521 Project Management (PM) $ 57,416 $ 110,048 $ 167,464 County Core Module $ 82,847 $ 124,270 $ 207,117 Delinquent Property Module $ 156,517 $ 187,820 $ 344,337 Appraisal Modules $ 151,524 $ 235,704 $ 387,228 State Assessed Modules $ 154,724 $ 251,426 $ 406,150 IV&V Services $ 53, 250 $ 110,500 $ 163,750 Hardware / Software $ 151,580 $ 207,000 Project Closeout (see PM) $ 0 Other $ 138,853 $ 138,853 $ 656,278 $1,310,201 $ 2,000,000 Description Qty Amount Dell EMC VxRail Hyperconverged Server Host 1 $ 58,000 VMWare Software License 1 $ 6,200 MS SurfacePro Client Devices (Field Use) 40 $ 80,400 Samsung Phones for Tethered Connection 40 $ 6,980 Total $151,580

PTD Business Modernization Certification Request - Summary PTD’s business modernization project will enable the Division to significantly improve its operations to the benefit of Bureau staff, executive leadership, the legislature, county elected officials, and most importantly, the State’s taxpayers. PTD is seeking approval to release remaining funds of $ 1,294,809 for Implementation supporting the project through December 2021. Amount Requested $1,171,349 Axiomatic $ 909,269 Remaining IV&V $ 110,500 Infrastructure $ 151,580 Amount Requested (Contingency) $ 138,853 Amount Requested (Total) $1,294,809 Amount Previously Certified $ 705,191 Total Appropriated Amount $2,000,000

Thank You ! Questions