SASKATOON PUBLIC SCHOOLS BUDGET REPORT September August Prepared on

SASKATOON PUBLIC SCHOOLS BUDGET REPORT September 1, 2008 – August 31, 2009 Prepared on Behalf of the Saskatoon Board of Education Mr. Robin Bellamy Mr. Tad Cherkewich Mr. Dan Danielson Ms. Doreen Day-Wapass Ms. Kelly Kozak Mr. Ray Morrison (Board Chair) Ms. Gerri Siemens Mr. Darrell Utley Mrs. Shannon Underwood Mr. Kevin Waugh By Administration “Inspiring Learning” Table of Contents Proposed Resolution .......................................................................................................1 Strategic & Budget Highlights..........................................................................................2 Strategic Plan for 2008-2009...........................................................................................5 Fiscal Issues That Need To Be Addressed .....................................................................8 Revenue Assumptions ....................................................................................................9 Expenditure Controls.......................................................................................................10 Financial Information .......................................................................................................11 Appendix – Additional Financial Information ..................................................................17 Proposed Resolution 1. That the Board approve its annual budget estimates for the fiscal year September 1, 2008 to August 31, 2009 as detailed in the Budget Report September 1, 2008 To August 31, 2009. 2. That, in accordance with the 2007-2008 and 2008-2009 budgets, the Board of Education of the Saskatoon School Division No. 13 of Saskatchewan hereby fix the uniform tax rate mills required to raise the net levy by way of the property tax for the year 2008 at 18.78 mills, which rate shall apply to the City of Saskatoon property assessment assessable for school purposes in the School Division, and that the City of Saskatoon be notified accordingly. Note: The change in the mill rate represents a 3.93% increase. The province increased the property education tax credit from 10% to 12%. This represents a net increase of 1.93% after the Education Tax Credit or approximately a $22.53 increase per $100,000 taxable assessed residential value. -1- Strategic & Budget Highlights The Saskatoon Board of Education’s 2008-2009 Budget advances the strategic priorities of the Board. The Board’s two main strategic initiatives are Early Learning & Literacy and Collegiate Renewal. This budget presents the anticipated revenues and expenditures required to achieve the outcomes associated with the Board’s priorities as well as its other strategic initiatives. The Board of Education’s commitment to provide a quality education to students in a fiscally responsible manner is enhanced in the 2008-2009 Budget through the following actions: 1) Advancement of the Board’s two strategic priorities: Early Learning & Literacy and Collegiate Renewal. The fifth year of the early learning & literacy initiative (Literacy for Life) will continue to enhance the literacy development of Kindergarten to Grade 8 students, as well as students in Grades 4-12 who have struggled to learn to read. The initiative will also continue to promote reading beyond the school day for all K-12 students. In addition, Literacy for Life will emphasize the professional development of school-based leaders, and will extend our Pre Kindergarten program and our literacy enhanced full day, every day Kindergarten program. This priority is a multi-year initiative with the intended outcome of all students K-12 reading at or above grade level. The Collegiate Renewal learning priority has focused upon improving our collegiate students’ learning through student engagement activities and developing new and innovative approaches to how and what our collegiate students learn. This initiative will focus upon the coordination and support of present and future innovative educational programming within our collegiate system. Staff development is a crucial and ongoing aspect of this priority. To this end, resources will be directed toward professional development in new teaching and assessment strategies and the effective use of technology in our students’ learning. This is a multi-year priority that is directed toward making our students’ learning increasingly relevant, challenging and applicable to the 21st Century knowledge-based society. -2- 2) Continuation of other strategic initiatives as well as the addition of several new strategic initiatives. • The strategic staffing plan’s original timeline was to deploy 15.4 additional teachers per year over a five-year period for a total of 77 teachers. The strategic staffing plan is used to support the strategic initiatives and to reduce the pupil teacher ratio (PTR) toward the public urban average. As per the Ministry of Education’s 2005 Statistical Information Report: Saskatoon Public Schools’ PTR is 16.08 and the public urban PTR is 15.07. Due to budget constraints, the strategic staffing plan will be extended to a seventh year leaving a balance remaining of 7.3 full time equivalent teachers. • • English as a Second Language (ESL) program will be extended to meet students’ needs. Additional staff and technology will be provided. The support of Special Education programming will be increased in the form of a Learning Disabilities staff development plan, increased technology for Special Education classrooms, and the extension of the intensive supports initiative. This plan includes increased staff development and resources for Mathematics learning. Student fee coverage for Advanced Placement examinations will be provided. Ongoing development of culturally responsive schools will proceed through support of the Okiciyapi Partnership and the First Nations, Metis and Inuit Education Unit. Performance Audits will be initiated to ensure the School Division’s operations are effective, efficient and economical. The contribution to capital for facility improvement projects at schools will be $2.7 million. When combined with the operating lines and phase II of the Energy Efficiency Management Program (Energy Smart), facilities expenditures will be maintained at the industry standard. This level of expenditure will not allow the maintenance backlog to increase. • • • • • 3) Establishment of a fiscally responsible budget in the context of changing provincial education funding. The most recent comparative information available at the national level is for the 2004-2005 school year. This information is from a research paper entitled -3- “Summary of Public School Indicators for Provinces and Territories, 1998-1999 to 2004-2005” by Statistics Canada Human Resources and Social Development. The comparison numbers are for operating expenditures per student in public elementary and secondary schools for the school year 2004-2005. • • • • • National Alberta Saskatchewan Manitoba Saskatoon Public Schools* = $8,171 = $8,753 = $8,420 = $8,842 = $6,787 * Amount of operating expenditures per student from the Ministry of Education’s Statistical Report (2004 and 2005) for comparison purposes for the 2004-2005 school year. -4- Saskatoon Public Schools Strategic Plan for 2008-2009 Title BOARD PRIORITIES Literacy for Life (Early Learning and Literacy) Continue and strengthen the components of Just Read, Read to Succeed, Early Learning, 1 Kindergarten - Grade 3 Literacy and Grades 4-8 Literacy 2 Continue and strengthen the leadership development initiative 3 Add one literacy enhanced, full day kindergarten program (0.5 FTE teacher) 4 Expand Prekindergarten programs Collegiate Renewal Continue and strengthen the components of Grade 9 ELA, 9-12 Focus on Inquiry, Assessment for Learning, Student Voice, Student Advisory Groups, Innovative Programming, and Leadership 5 Development 6 Provide technology supports for Collegiate Renewal 7 Support Advanced Placement Examinations 8 Review Career Education 9 Continue development of Saskatoon Trades and Skills Centre at Mount Royal OTHER STRATEGIC INITIATIVES Learning, Teaching and Assessment Models 10 Develop Trades Mathematics 11 Act on Core French Review 12 Act on Review of Study of Mathematics 13 Review Assessment Plan 14 Enhance Elementary Instruction Technology 15 Develop Learning Alliance with Regina Public 16 Expand Online Learning Centre Services -5- Title Special Education 17 Enhance Learning Disabilities Action Plan 18 Extend Intensive Supports Initiative 19 Provide Special Education Technology First Nations, Inuit and M étis Education 20 Continue with Okiciyapi Partnership 21 Support Elder/Elders' Forum 22 Consider research related to AERN grants findings, student mobility and cultural responsiveness 23 Provide staff development support for leadership development Equity 24 Add ESL support (2.0 FTE teachers and technology) 25 Follow-up Community Schools Review Innovative Programming 26 Expand Community Schools Early Skills Development Program 27 Support Innovative Program Staffing (0.5 FTE teacher) Safe and Caring Schools 28 Purchase defibrillators for Elementary Schools and provide training for their use Community Partnerships and Engagement 29 Establish Saskatoon Public Schools Foundation 30 Community consultation/engagement associated with Collegiate Renewal and Literacy for Life. 31 Proceed with U of S secondary internship program Facilities for Learning 32 Continue Energy Efficiency Program 33 Implement Annual Capital Plan 34 Continue Future of Our Schools Process and Develop Five Year Capital Plan -6- Title Fiscal Management 35 Continue political advocacy to ensure successful resolution of FOG renewal 36 Implement Public Sector Accounting Board policies 37 Conduct Performance Audits to ensure operations are effective, efficient and economical 38 Review Staffing Guidelines School Community Councils 39 Continue Implementation of School Community Councils Strategic Staffing Planning Provide additional teachers to reduce PTR to public urban average and to support strategic initiatives (as 40 per items in this plan) -7- Fiscal Issues That Need To Be Addressed 1) Ensure adequate funding of the Board’s Strategic Priorities of Early Learning & Literacy and Collegiate Renewal. These priorities will continue to require significant funding in future budgets. Plan for the impact of re-assessment. The Ministry of Education and other stakeholders must be made aware of this process. Continue to advocate for an equitable provincial grant in phase three of the redesign of the provincial Foundation Operating Grant (FOG). This will mean communicating a clear expectation to the Ministry of Education that the Diversity Factor needs to reflect an adequate distribution of funding to better assist school divisions such as Saskatoon Public that have a large number of vulnerable students. It will also mean working with the Ministry of Education to ensure that the redesign of FOG takes into account all the various tax tools when determining the assessment value of a school division. This will help ensure that school divisions are treated fairly and equitably in the provincial distribution of the grants. Continue to work with the Ministry of Education and other stakeholders to encourage the province to fund at least 60% of the cost of education, thereby reducing reliance on the local tax base. Continue working with the Ministry of Education to achieve adequate, sustainable, and fiscally responsible provincial funding of education. This will assist in supporting significant initiatives identified in the Board’s Strategic Plan. Ensure long term sustainable funding of the Capital Budget to address the backlog of work identified in the facility audits. 2) 3) 4) 5) 6) -8- Revenue Assumptions 1) The 2008-2009 Provincial Foundation Operating Grant (FOG) applies to both of Saskatoon Public Schools’ budget years 2007-2008 and 2008-2009. The portion of FOG that applies to the 2008-2009 Budget is from September 1, 2008 to March 31, 2009. The amount of the provincial grant for the remainder of our fiscal year, which would be from April 1, 2009 to August 31, 2009, will not be known until the Provincial Government sets its 2009-2010 budget in March of 2009. Therefore, it is necessary to base the 2008-2009 Budget on revenue assumptions in order to finalize the budget. Saskatchewan Learning will hopefully be completing Phase 3 of the redesign of FOG and this will be reflected in our revenue assumptions: • • That the provincial equalization factor will remain the same. That Phase 3 of the redesign of FOG will address the tax tools in the formula and will take into account all additions and deletions to the tax levy to truly reflect each school division’s local revenue. 2) The 2008-2009 Budget will access $2 million from the Operating Fund. These funds will be used as a bridging mechanism to Phase 3 of the redesign of FOG. Phase 3 is scheduled to address the “B” side of the formula regarding tax tools, as well as changing the diversity factor to be based entirely on vulnerability criteria. The 2008 mill rate applies to the first four months of the 2008-2009 budget year. The remaining eight months of 2008-2009 fiscal year occur in 2009 and an estimate of the 2009 mill rate is required to plan the 2008-2009 Budget. Based on a projected assessment growth of 3.13% and the assumptions outlined above, an increase in the mill rate of about 3.94% (beyond the impact of reassessment) is projected for 2009. The Education Property Tax Credit is 12% for 2008 and assumed at 14% for 2009. 3) 4) -9- Expenditure Controls The 2008-09 Budget was established within the constraints of a: change to the mill rate, accessing the operating fund and expenditure control and revenue initiatives. The following expenditure reductions were necessary in completing the 2008-09 Budget: • • • • • The reduction of a Deputy Director position from Administrative Council. Non-school based accounts were limited to 2007-08 budget levels, unless there is a contractual obligation. Career Education will be reviewed in 2008-2009 and staffing levels will be reduced. Reduction of Central Office support staff through attrition. The Ministry of Education has mandated the adoption of Public Sector Accounting Board requirements. This will result in a reduction of accounting functions at the school level and an opportunity to adjust office support staff accordingly. Contribution to Capital for facility improvement projects at schools was reduced by $1 million to $2.7 million. • - 10 - Financial Information Introduction SASKATOON PUBLIC SCHOOLS Consolidated Statement of Financial Activities and Fund Balances 2008-09 Operating Fund Budget Revenues Property taxes Provincial grants Tuition and related fees Complementary services External services School-based Other $ 103,824,000 63,175,493 935,000 1,086,733 2,124,500 5,500,000 1,211,200 2008-09 2008-09 2008-09 Capital Fund Reserve Fund Consolidated Budget Budget Budget $ 9,602,496 $ 150,000 $ 103,824,000 72,777,989 935,000 1,086,733 2,124,500 5,500,000 1,361,200 2007-08 Consolidated Budget $ 98,200,000 62,338,601 1,210,000 862,978 1,966,500 1,016,200 Total Revenues Expenditures Governance Administration Instruction Plant School-based Transportation Tuition and related fees Complementary services External services Interest/allowances 177,856,926 9,602,496 150,000 187,609,422 165,594,279 743,463 3,267,127 130,060,081 20,863,194 5,500,000 4,270,251 295,000 2,024,971 2,068,424 6,000 2,968,259 17,632,988 1,653,219 - 743,463 3,267,127 133,028,340 38,496,182 5,500,000 4,270,251 295,000 2,024,971 2,068,424 1,659,219 651,836 3,141,055 126,524,379 32,948,309 3,659,933 250,600 1,632,060 1,993,236 1,703,480 Total Expenditures Excess (deficiency) of revenues over expenditures before interfund transfers Interfund transfers from (to): For capital expenditures For debt repayment For reserves Total interfund transfers Deficiency of revenues over expenditures after interfund transfers Capital debt issued Capital debt repaid Deficit for the year Fund balance, beginning of time period Fund balance, end of time period 169,098,511 22,254,466 - 191,352,977 172,504,888 8,758,415 (12,651,970) 150,000 (3,743,555) (6,910,609) (4,231,108) (6,493,000) (34,307) (10,758,415) 4,231,108 6,493,000 557,023 11,281,131 (522,716) (522,716) - - (2,000,000) (1,370,839) 1,453,491 (4,638,700) (372,716) (3,743,555) 1,453,491 (4,638,700) (6,910,609) 8,130,886 (9,725,000) (8,504,723) 23,654,374 $ 15,149,651 (2,000,000) 5,700,000 3,700,000 (4,556,048) 4,556,048 - (372,716) 8,200,000 7,827,284 (6,928,764) 18,456,048 11,527,284 - 11 - Revenues Total 2008-09 operating revenues are estimated at $172,356,926, an increase of 5.75% compared to the previous year. Due to the implementation of a new accounting requirement of the Ministry of Education, the 2008-2009 Budget is the first year the funds collected at the schools are included in the school division budget. This is not new revenue. Including the school-based funds brings total revenues to $177,856,926. Budget 2008-09 Revenues Property taxes Education Property Tax Credit Provincial grants ** Education Property Tax Credit Tuition and related fees Complementary services External services Other $ 116,124,000 $ (12,300,000) 50,875,493 12,300,000 935,000 1,086,733 2,124,500 1,211,200 172,356,926 School-based Total Revenues 5,500,000 177,856,926 2007-08 106,500,000 (8,300,000) 51,545,591 8,300,000 1,210,000 862,978 1,966,500 896,200 162,981,269 162,981,269 $ Change 9,624,000 (4,000,000) (670,098) 4,000,000 (275,000) 223,755 158,000 315,000 9,375,657 % Change 9.04% 48.19% -1.30% 48.19% -22.73% 25.93% 8.03% 35.15% 5.75% ** The budget comparisons above reflect a decrease in provincial funding. Provincial budget comparisons (for 2007-2008 to 2008-2009) based on their fiscal year (March to April) reflects a small increase of $886,722 which is 1.71% increase. - 12 - Expenditures In 2008-09, operating expenditures and interfund transfers are estimated to be $174,356,926 (excluding the school based budget), an increase of 5.49% compared to the previous year's budget. Due to the implementation of a new accounting requirement of the Ministry of Education, the 2008-2009 Budget is the first year the school-based expenditure funds collected at the schools are included in the school division budget. These are not new expenditures. Including the schoolbased expenditures bring the total expenditures to $179,856,926. Budget 2008-09 Expenditures Governance (Note 1) Administration (Note 2) Instruction (Note 3) Plant Transportation (Note 4) Tuition and related fees (Note 5) Complementary services (Note 6) External services Interest/allowances 743,463 3,267,127 130,060,081 20,863,194 4,270,251 295,000 2,024,971 2,068,424 6,000 163,598,511 Interfund transfers from (to): For capital expenditures For debt repayment (Note 7) For reserves Expenditures & Interfund Transfers School-based (Note 8) Total Expenditures & Interfund Transfers 2007-08 651,836 2,991,055 124,569,512 20,736,985 3,659,933 250,600 1,632,060 1,993,236 4,500 156,489,717 $ Change 91,627 276,072 5,490,569 126,209 610,318 44,400 392,911 75,188 1,500 7,108,794 % Change 14.06% 9.23% 4.41% 0.61% 16.68% 17.72% 24.07% 3.77% 33.33% 4.54% 4,231,108 6,493,000 34,307 174,356,926 5,500,000 179,856,926 4,722,065 4,840,000 (770,513) 165,281,269 165,281,269 (490,957) 1,653,000 804,820 9,075,657 -10.40% 34.15% -104.45% 5.49% Notes: 1. The communications budget line has been increased by approximately $70,000 to promote public education. 2. The Pension Plan for the Non-Teaching Employees (a defined benefit plan) requires a minimum $1 million per year in additional funding for the next three years. This is based on the estimated Actuarial Valuation Report for the Plan. This report is mandated to be conducted every three years and will require greater contributions to the Non-Teaching Pension Plan. The performance audit expense is also included in this area. This is a new strategic item in 2008-09. 3. The teachers' salary increase on September 1, 2007 was 5%. The 2007-08 Budget only included a 3.5% increase (based on the funding provided in the 2007-08 Foundation Operating Grant). Therefore, the 2008-09 Budget includes 1.5% increase for September 1, 2007 plus the 4% teachers' salary increase on September 1, 2008. - 13 - 4. The City of Saskatoon bus tickets have increased at a rate greater than inflation (9.1% increase effective January 1, 2008). There are also more costs associated with special education included that is caused by an increase in the number of special needs students. 5. The number of home-based educators has been increasing. The 2008-09 Budget reflects this increase. 6. Complementary services include Pre-Kindergarten expenses. The 2007-08 Budget included twenty one programs (Seventeen funded by the province and four are locally funded) and the 2008-09 Budget includes twenty-five. The Ministry of Education provided funding for two new programs during the 2007-08 budget year plus an additional three in the 2008-09 provincial budget. The province currently funds twenty-two of the twenty five programs. 7. The 2008-09 Budget includes the following additional debt: Energy Efficiency Management Project and another computer lease. Also, the 2008-09 Budget includes a full year of payments for the long-term debt associated with the construction and land costs for Tommy Douglas Collegiate. (2007-08 Budget included only a partial year of payments). 8. In the past, the money collected at the schools was not included in the budget (or the audited financial statements). In the 2008-09 financial statements, the Ministry of Education is now requiring the revenues and expenditures to be reported. Salaries and Benefits In 2008-2009, salaries and benefits are expected to cost $135,855,919, an increase of $6,002,092 or 4.62% from the 2007-2008 Budget. These costs account for 75.5% of operating expenses and interfund transfers and 80.3% of operating expenses. The benefit costs have increased by 8.6% when compared to the 2007-2008 Budget. In 20082009, $1.0 million was added to benefit costs based on an Actuarial Valuation Report on the Plan. The premiums for extended health and dental also increased at rates that are greater than inflation. - 14 - Capital Expenditures Capital grants will be provided by the Ministry of Education for the renovations at Nutana Collegiate and roof replacements at Walter Murray and Mount Royal Collegiates. The most significant portion of the capital grants is for the renovations at Mount Royal Collegiate to develop the Saskatoon Trades and Skills Centre. The revenue is recognized on the financial statements as the work takes place. The revenue is not recognized as the cash is received. Capital expenditures are budgeted at $22,254,466, and include two components: • Capital projects totaling $20,601,247 include: o Renovations at Mount Royal for the creation of the Saskatoon Trades and Skills Centre o Renovations at Nutana Collegiate o Roof replacements at Walter Murray and Mount Royal Collegiates o Energy Efficiency Management Program Costs o Computers for the classrooms o Land for a future school in Willowgrove o Upgrades at existing theatres o Various other smaller projects Interest payments will total $1,653,219. • The capital debt issued totaling $1,453,491 is for the leasing of the computers over a four year period. Repayment of the capital debt principal is estimated to be $4,638,700 in the 2008-2009 Budget. The interfund transfer for debt repayment to the Capital Fund (see page 11) is for both the principal and interest payments. The debt repayment is for the following projects: • • • • Construction and land costs for Silverspring School, Tommy Douglas and Centennial Collegiates Energy Efficiency Management Program Montgomery School Renovations Computer and Voice Over Internet Protocol Leases - 15 - Interfund Transfers Operating Fund Interfund transfers to (from): From the System Application Reserve From the Contingency Fund (Note 1) From the Reserve for Replacement of Driver Simulators To the General Reserve (net) To the Reserve for Facility Repairs Related to Rentals (net) To the Equipment Replacement Reserve To the Capital Fund - for Leasehold Improvements to Central Office Rental Space To the Reserve for Civic Elections Total Interfund Transfers Notes: 90,000 23,716 (15,000) (15,000) (9,000) (34,023) (75,000) Capital Fund Reserve Fund (90,000) (523,000) (23,716) 15,000 15,000 9,000 75,000 $ (522,716) 523,000 34,023 $ (34,307) $ 557,023 1. The cost of the land for the construction of the school at Willowgrove will be funded with the Contingency Fund. This will be repaid when the full construction loan for the school is required. Actual Reserve Funds and Long-Term Debt The Board’s reserves from the Operating and Reserve Funds totaled approximately $13.3 million as of August 31, 2007. At August 31, 2007, the long-term debt of the Board totaled $28.9 million and included the following: Construction and land costs for Centennial Collegiate Construction and land costs for Tommy Douglas Collegiate Computer Capital Lease Construction and land costs for Silverspring School Renovations at Montgomery School Voice Over Internet Protocol Capital Lease $12.6 million $10.6 million $2.1 million $1.8 million $1.0 million $0.8 million - 16 - Appendix Additional Financial Information Total Consolidated Revenue Sources for the Year Ending August 31, 2009 School Based 2.9% Provincial Capital Grants 5.1% Other 2.9% Property Taxes 55.4% Provincial Operating Grants 33.7% Local Operating Revenue By Source 1998-2009 120 100 80 60 Local Taxes Provincial Grants Other 40 20 0 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 9 19 8 9 19 9 08 20 75 3 07 20 60 4 09 20 82 6* 1 * January 1 – August 31, 2006 (8-month budget) The Education Property Tax Credit started in 2005 and the effect of this is included in the graph above and on Pages 18 & 10. - 17 - Local Taxes as a Percentage of Operating Revenue 1998-2009 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 02 20 99 19 03 20 00 20 04 20 01 20 05 20 * 06 20 0 -2 06 20 07 0 -2 07 20 08 0 -2 08 20 09 Provincial Grants as a Percentage of Operating Revenue 1998-2009 40 35 30 25 20 15 10 5 0 0 20 0 20 0 20 0 20 0 20 0 20 0 20 9 19 8 0 20 0 0 20 2 4 08 20 709 20 86* 07 20 65 3 - 18 - Operating Revenues by Source for the Year Ending August 31, 2009 Other Revenues, 3.0% School Based, 3.1% Provincial Grants, 35.5% Local Taxes, 58.4% - 19 - Total Consolidated Expenditures By Type of Payment For the Year Ending August 31, 2009 Other Costs, 17.4% Capital, 11.6% Salaries & Benefits, 71.0% Operating Expenses By Type of Payment for the Year Ending August 31, 2009 Other Costs 19.7% Salaries & Benefits 80.3% - 20 - Total Consolidated Expenditure By Category for the Year Ending August 31, 2009 Transportation 2.2% Other 2.7% Capital 11.6% School Based 2.9% Administration 1.7% Plant Operation 10.9% Instruction 68.0% Starting in 2006, the Ministry of Education required that instruction costs for Associate Schools and Prekindergarten be classified in the ‘Other’ category rather than ‘Instruction’. Operating Expenditures by Category for the Year Ending August 31, 2008 Transportation, 2.5% School Based, 3.3% Other, 3.0% Administration, 1.9% Plant, 12.4% Instruction, 76.9% Starting in 2006, the Ministry of Education required that instruction costs for Associate Schools and Prekindergarten be classified in the ‘Other’ category rather than ‘Instruction’. - 21 - Student Enrolment 1999-2007 25,000 20,000 15,000 10,000 5,000 0 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 - 22 - Education Mill Rate for Saskatoon Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Saskatoon Saskatoon Public Public Schools % Schools Mill Change Rate in Mill Rate 18.07 2.80% 17.58 2.80% 17.10 1 2.80% 18.84 3.40% 18.22 2.96% 17.70 2.79% 17.22 2 3.47% 20.59 1.73% 20.24 6.92% 18.93 0.00% TOTAL 29.67% AVERAGE 2.97% 1 Property tax reassessment occurred in 2005. As a result of property tax reassessment the 2004 mill rate of 18.84 would have equated to a 2005 mill rate after reassessment of 16.63 mills. However, the effect of reassessment was a provincial net grant reduction of 2.5 million and a 2.8% mill rate increase to 17.1 mills was necessary to remain revenue neutral. Property tax reassessment occurred in 2001. As a result of property tax reassessment the 2000 mill rate of 20.59 mills would have equated to a 2001 revenue neutral mill rate of 16.64 mills. The mill rate has increased by 3.47% or 0.58 mills over the 2000 restated mill rate. The City of Saskatoon’s ten-year percentage total is 32%, which works out to an average of 3.2% per year. 2 3 - 23 -