wom GOUN

APR 18 1977

Mayor and Council April 15th, 1977

L.D. Pollock
City Administrator

1. Commission of Inquiry on Property Assessments

At the March 7th meeting of Council a resolution recommending adoption of one
of the recommendations in the McMath Report was tabled pending further infor-

mation.

My only concern when this subject was discussed was with the fate of the Home-
owner Grant. If we urge the Provincial Government to assume a greater share

of the School Cost, it might lead to a situation where the Province withdraws

the Home-owner Grant in exchange for this increased participation. As Council

is aware, the present legislation covering the Home~owner Grant states that the
Grant is to be applied first to School Taxes and then to other levies. In other
words, the Province now acknowledges that this Grant is to be directly applied to
reduce School Taxes on Residential property. The Home-owner Grant at present

is providing a method of equalizing Taxes and its removal would cause a con-

siderable Tax shift.

Upon further review of the McMath Report, I find that they have taken this fact
into consideration and there is a subsequent recommendation urging the Provincial
Government to continue the present Home-owner Grant system or an appropriate
substitute. (Recommendation #R-37)

For Council's information, the Government does contribute in excess of 65% of
School Costs in this School District. Table I (below) shows the approximate
breakdown for 1976:

TABLE TI

Source of School Financing 1976

School District No. 43

Provincial Government Grants -
- direct to School District $20,413,215.
~ Home-owner Grants 5,668,192.

$26,081,407.
Local Taxation (Real Property Tax School Purposes) 12,310,738.

Miscellaneous Revenue 1,365,087.
$39,757,232.

Although Home-owner Grants have been included under Grants from the Government
at should be noted that not 100% of the Home-owner Grant are applied to School
Taxation. As noted above, the Home-owner Grant applies first to school levies and
then to other levies and there are many properties that the Home-owner Grant