BY KIRK STARRATT

Kings County Register

It would save Kings County taxpayers significant bucks, but would probably drive taxes up in at least a few towns.

At a recent in-camera session at a Kings County council committee of the whole meeting, councillors unanimously supported a motion to recommend council give notice of termination of the agreement with the Annapolis Valley District School Board, and pass on the municipality’s desire to negotiate a new agreement to March 31, 2010. County representatives presented this motion at a Kings Partnership Steering Committee (KPSC) meeting Nov. 28.

Before the motion was voted on at the December county council session, Kentville Mayor Dave Corkum made a presentation. Corkum said he was representing Kentville, but the towns of Hantsport and Wolfville are concerned as well.

Corkum said the towns, including Berwick, and the county all entered into an equitable agreement based on a per capita system of education funding. All other areas of the province fund education based on uniform tax assessment. He said the system is fair because you pay the same for education whether you live in Harbourville or Wolfville.

Corkum said the KPSC passed a motion Oct. 3 to defer the matter of a total cost sharing study until the issues of fire and recreation are completed. Corkum told county councillors, if they proceeded to address their termination motion, they would be making a stand in haste and all other funding agreements would be vulnerable for review.

“The partnership would become the laughing stock of the province,” Corkum said, pointing out that it has been admired as a great example of co-operation.

Corkum said the municipal partners could wind up in court if this proceeds. He said he isn’t trying to threaten the county in any way, but he wants them to see the ramifications. He urged county councillors to defeat or table the recommendation.

Education is a provincial responsibility and he said the municipal units should all be working together to have the cost paid by the province.

Councillor Janet Newton, chairwoman of the KPSC, said some members of the committee don’t think the county has all the information, but it does.

Councillor Chris Parker said the decision to terminate the agreement was supported unanimously, and there is no such thing as an agreement you can’t get out of. He said the county had its back put to the wall with other inter-municipal funding agreements in the past, including the Kentville Fire Department agreement. Parker said he does take Corkum’s position as a threat.

Councillor Madonna Spinazola said the county didn’t throw down the gauntlet, but thinks it’s time to review the contract. She pointed out there is no mechanism for review without the consent of all parties so the only option for the county was to exercise the termination clause.

Deputy Warden Diana Brothers asked Corkum if there is willingness on the part of the towns to re-negotiate the deal or review it within the KPSC before March 2010.

“Absolutely, but you have to get rid of the word ‘terminate’,” Corkum said. “We will ask you to review the other agreements when education is reviewed.”

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Headline: Million dollar difference for county

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Kings County Corporate Services director Bill McKennan

K.Starratt

Kings County council is concerned the current education funding formula is negatively impacting the county’s ability to provide needed services to ratepayers.

Kings County Corporate Services director Bill McKennan presented the county’s position on the matter from a financial point of view.

He said each municipality experiences different increases each year. Student population is decreasing, but small shifts in student population significantly change the amount of money contributed by each partner. He said no partner municipality has seen a decline in uniform assessment ,and some have realized significant increases.

He said moving to the formula being used consistently across the province, except by partners in Valley, would have major impacts. The provincial formula is based on uniform assessment instead of student numbers.

“The partners in the education funding agreement don’t have a significant difference in uniform assessment on a per dwelling basis, although that doesn’t take into consideration household income.” McKennan said.

Under the provincial formula, Kings County would have contributed $8,482,147 to education in 2007/ 2008, compared to the contribution of $9,497,883 they actually made under the current agreement. That would have saved county ratepayers $1,015,732, or 5.17 cents on the tax rate. Berwick would have realized savings of $38,342, or 4.5 cents on its tax rate.

Switching to the provincial formula would have cost Hantsport an additional $120,893, or 27.61 cents on its tax rate. Kentville would have paid an additional $324,947, or 12.73 cents on its tax rate. Wolfville would have paid an additional $608,234 or 23.76 cents on its tax rate.

McKennan said the county’s contribution is significantly higher than the average rural municipality and town. It represents about 42 per cent of the entire annual budget. Most partners in the existing agreement are closer to the provincial average.

Councillor Chris Parker said the county has had to raise taxes in recent years; Kentville has held the line and Wolfville has decreased taxes. He said the high mandatory contribution for education is a stress.

Councillor Madonna Spinazola moved to refer the motion to terminate the current education funding agreement to staff for one month to see if negotiations with the towns could be opened. Councillor Wayne Atwater moved an amendment to refer the matter to staff until the January committee of the whole meeting. The amended motion carried.