Mayor sounds the alarm on proposed school tax increase

By Austin Grabish, the Selkirk Record 

West St. Paul Mayor Bruce Henley is sounding the alarm and warning taxpayers about a proposed 4.7 per cent school tax increase from the Seven Oaks School Division, which if approved would come into effect later this year.

The school division’s board of trustees unveiled its proposed budget at a consultation meeting in Winnipeg last Monday.

The division’s board said the tax increase is needed because there is a two per cent increase to its student population this year, payroll costs are higher, and it doesn’t receive nearly as much funding as other school divisions in Winnipeg.

But Henley calls the proposed tax increase troubling.

“It’s almost a five per cent increase,” Henley said in a phone interview.

“I think everybody should be concerned when taxes are going up at that rate.”

Henley, who was recently re-elected as mayor, said taxpayers are becoming increasingly concerned about their school taxes. 

“At the end of the day I heard it loud and clear. I just came off the election trail and people were very concerned about how high the school taxes are,” Henley said.

Henley is calling on all taxpayers who have concerns about the hike to speak up and call one of the division’s trustees.

“Make sure your voice is heard,” Henley said.

Henley is worried the proposed tax hike could become unaffordable for homeowners in West St. Paul.

An online presentation by the Seven Oaks Board shows a $87.25 tax increase for a home valued at $270,400 if the proposed budget goes forward.

But Henley said many homes in West St. Paul are valued between $400,000 - $700,000 so the tax increase could be higher.

“If you do the math that’s a few hundred dollars,” Henley said.

Seven Oaks Board of Trustees chair Claudia Sarbit said the budget has not been finalized and the public can still give feedback on the board’s proposal.

“This is still a preliminary budget,” Sarbit said.

Sarbit said Seven Oaks is at a disadvantage because it has a lower commercial tax base than other divisions in Winnipeg.

She said other divisions in the city reap the tax benefits from large commercial developments like IKEA while Seven Oaks collects taxes from smaller businesses like a recently opened Dollarama.

“We’re not in an equable position,” Sarbit said.

Sarbit said the division has called on the province for help, but those calls for help have gone unanswered.

“We’ve done extensive lobbying with the provincial government,” Sarbit said.

Henley said he felt the need to inform taxpayers about the proposed hike because there is often confusion when tax bills are received from the RM.

He said taxpayers often think the annual bill they receive from West St. Paul is just for municipal taxes when in fact it includes taxes from both the RM and the school division.

Hs said school taxes make up 60 per cent of the amount that appears on taxpayers’ annual bill.

“When you look at that tax bill just remember West St. Paul is only collecting 40 per cent of that money.”

Seven Oak’s budget isn’t expected to be finalized until sometime later this month.

The RM of West St. Paul will unveil its budget at a presentation tomorrow.

-- First published in the Selkirk Record print edition March 5, 2015 p.5