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Local News

Trustees dig into surplus to free tax

Bjornson 'encouraged' by moves

SCHOOL boards have been quick to dig into their surpluses this week to try avoiding "unreasonable tax increases," Education Minister Peter Bjornson said Thursday.

Bjornson has seen no unwillingness from trustees to obey his last-minute edict to chop surpluses, or else face caps on school-tax increases.

"I've been very encouraged by what I see, that there's willingness to take another look," Bjornson said.

Thursday was the deadline for school boards to set their budgets.

Bjornson's staff gave school boards verbal orders last Friday to keep surpluses to four per cent of revenues or less, or else face having education property taxes capped at 3.3 per cent -- the same amount by which Bjornson has increased the province's share of education funding.

Bjornson later decided that he would be satisfied with significant progress this week: Monday, he gave school boards until next year to comply completely.

He acknowledged with a laugh that he expects the subject to come up this morning at his closed-door bearpit session with school board chairmen at the Manitoba Association of School Trustees convention.

Prudent

Pembina Trails trustees reopened a budget Tuesday night that they'd already passed and spent $1.8 million of surplus, cutting reserves to 3.53 per cent of revenue.

With the huge Waverley West subdivision looming and bringing with it increased busing needs, and with the possibility of a new high school, Pembina Trails had thought it prudent to have five per cent in reserve, superintendent Paul Moreau said.

The division will buy out some bus leases with surplus, he said. "We were able to really accelerate a number of one-time projects," such as new gym bleachers.

Seine River superintendent Roy Seidler said from Lorette that trustees spent a lot of time this week planning how to spend big chunks of their surplus by June 2008 to reduce it to four per cent of revenue.

Seine River school board used $100,000 of surplus to reduce taxes this year and had approved spending another $532,000 for one-time projects. By Bjornson's deadline, "they will spend down on $1.1 million of project money they've identified" for a wide range of projects, Seidler said.

Louis Riel superintendent Terry Borys said trustees had already planned to spend $2 million of surplus in this year's budget. This week, the board decided "to use $1.87 million of its surplus for one-time expenses" to get down within the province's demands, he said.

Seven Oaks superintendent Brian O'Leary said the division will have its surplus down to 2.5 per cent after pouring $1.5 million into additions to the new West Kildonan Collegiate beyond what the province is willing to fund.

"We purchased an additional four acres to the site," O'Leary said. "We've increased the gym by 30 per cent."

And there will be a 4,000-square-foot Randy Bachman Student Commons: "It'll be almost like a central open area in the school -- almost like a central square."

River East Transcona and Winnipeg divisions both believe they're under Bjornson's limit.

St. James-Assiniboia's surplus will be down to 1.25 per cent by June, when much of its reserves will have paid for structural changes to accommodate the merger of Silver Heights and Sturgeon Creek collegiates at Sturgeon Creek, board chairman Bruce Alexander said.

nick.martin@freepress.mb.ca

Your school taxes

Mill rates and taxes on a home assessed at $100,000. For greater detail, and how you can calculate your property tax bill, go to www.winnipegfreepress.com.

City taxes

25.448 mills $1,145.16

School division taxes

Winnipeg 27.211 mills $1,224.50 Seven Oaks 26.580 $1,196.10 Pembina Trails 23.572 $1,060.74 Louis Riel 23.377 $1,051.97 River East Transcona 24.939 $1,122.26 Seine River 25.133 $1,130.99
St. James-Assiniboia 21.981 $989.15
(St. James-Assiniboia is a draft figure; final amount not available)

How much more you'll pay

Percentage and dollar increases in school taxes over last year on a home assessed at $100,000:

Winnipeg S.D. 2.2% $26.94
Seven Oaks 1.14% $13.95
Pembina Trails 1.53% $16.06
Louis Riel 2.6% $26.60
River East Transcon 4.% $43.79
Seine River 8.97% $93.06
St. James-Assiniboia 4.3% $40.41
(draft; final figure not available)

Here's how to calculate your property tax bill:

First, find the city hall notice you got in the mail, listing the assessed value of your home.

Homes are taxed at 45 per cent of their assessed value, businesses at 65 per cent — the bureaucratic jargon is portioning — so multiply the assessed value of your home by 0.45 and keep this number handy.

The mill rate is the amount of money a school division needs to raise through the special levy — the school property taxes over which trustees have direct control — divided by the division’s assessment base.

Take your portioned value, and multiply it by the city's draft mill rate of 25.448 mills, and divide by $1,000. That number could change slightly when city council passes its budget, though Mayor Sam Katz has promised a tax freeze this year.

Next, take your portioned value and multiply it by your school division's mill rate, and divide by $1,000.

Take those two numbers and add them up. On a home assessed at a value of $100,000, you should be in the $2,000 to $2,400 range.

Finally, deduct the province's $400 education property tax credit.

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