Some may be short of funds before year-end

School boards want little or no tax hike

By JOANNE HELMER of the Weyburn Review

All three newly-amalgamated school divisions in and around Weyburn set their mill rates for their 2004 budgets year this week, with minor or no tax increases for taxpayers.

But because of a simmering tax revolt in rural municipalities, some officials can be a little more comfortable than others that they'll actually receive the funds.

South Central School Division will rely on local taxpayers for all of its $9.9 million operating funds. It receives no provincial government grants for operations.

The division could be forced to borrow operating funds if a Saskatchewan Association of Rural Municipalities (SARM) resolution made last week receives widespread support and rural taxpayers delay their taxes this year.

About 90 per cent of delegates to a special SARM meeting last week in Regina voted to impose a six per cent discount on rural property taxes in December and no penalty on overdue taxes until April, 2005.

Discounts are usually five per cent in September, four per cent in October and zero in December, to encourage fast payment.

Sunrise School Division could also be squeezed into borrowing. It needs 66 per cent of its $10.2 million budget from local taxpayers, about half of whom live on farmland.

Meanwhile, Holy Family School Division would hardly notice a tax revolt. It receives about 47 per cent of its $9.14 million budget from ratepayers but 95 per cent of those are in the cities of Weyburn and Estevan.

Most school districts in the province receive 30-40 per cent of their operating funds from the provincial government.

SARM approved the higher discount to pressure school boards with the hope they would press the provincial government into picking up the largest share of the cost of K-12 education.

Mill rates in South Central will remain the same this year, at 15.45 mills for Central and 19 mills for Radville, to finance operations. Amalgamated boards have until 2006 to create a uniform tax rate for all new districts.

South Central collects taxes from the RMs of Weyburn, Wellington, Fillmore, Griffin, Cymri, Scott, Lomond, Radville, and Golden West. Scott RM approved a resolution in late April to collect education taxes this year but refuse to forward it to local divisions.

South Central board chair Audrey Trombley said Thursday the division's budget was prepared on the assumption that rural municipalities will collect and disburse education taxes as usual. Bigger discounts to taxpayers this year and late tax payments will ultimately result in a larger burden on taxpayers next year, she said.

Sunrise Division mill rates also will remain the same this year, at 19.5 for residents in the former Prairie View district and 20 mills for residents of Weyburn. Sunrise relies on Scott for taxes, as well as the RMs of Weyburn, Key West, Lajord, Caledonia, Wellington and Norton.

Sunrise secretary treasurer Bruce Kwochka said Thursday a combination of administrative savings from amalgamation and teacher cuts because of declining enrolment allowed the board to maintain current mill rates.

He said the division still expects some kind of response from the Calvert government to the Boughen Commission on education financing. "I'm not sure if there will be any tax relief this year," he said.

Taxpayers supporting Holy Family Catholic School Division in Weyburn and Radville will see increases of one mill, to 19.5 mills, and 19.25 mills respectively, to help finance its $9.14 million operating budget.

Holy Family supporters in Estevan, who are already paying 21 mills, will see no change on this year's tax bill.

Holy Family chair Vince Marcotte said Friday the board started this year to close the spread between the mill rates in the different communities. "We wanted to take it in small steps rather than one big step in one year."

Marcotte said the board did a bit of cutting in some areas and used $300,000 from combined reserves to hold the line on mill rate increases. With savings this year from amalgamation and the closing of St. John's School in Estevan, he said the board hopes to be able to maintain the same mill rate even next year.

The RM of Weyburn agreed Tuesday to delay a decision on support for the SARM resolution until its June meeting. Tax notices for that municipalities will be issued in early August.


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