School Site Acquisition
As a part of the Ministry of Education capital planning process, all school districts are required to develop a capital plan based on a ten-year projection horizon to allow identification of future site acquisition needs.
All districts requesting the acquisition of new school sites or the expansion of existing school sites in response to potential enrolment growth generated by new residential development must have School Site Acquisition Charges (SSAC) in place before the Ministry will support a site request.
Once SSAC have been established in a school district, updated ten-year enrolment projections will inform the district’s annual consultations with its local government regarding the need for new school sites and the calculated values of the per-unit SSAC.
Additional information about School Site Acquisition Charges is provided in the Implementation Guide: School Site Acquisition Charge at http://www.bced.gov.bc.ca/capitalplanning/ssac/ssacguide.pdf.
The capital planning process is the means by which boards obtain capital funding approval (based on board priorities) including support for site acquisitions. The primary driver for site acquisition support and funding from the Ministry of Education is forecasted enrolment pressure.
There are a number of requirements that must be met before acquiring a school site. The process is outlined in the School Site Selection Guide. When the School District considers the purchase of a site using SSAC funds, it must follow the School Site Selection Guide. A copy of the guidelines is available at: http://www.bced.gov.bc.ca/capitalplanning/projectmanagement/documents/siteselectionguide.pdf.
Disposal of Land or Improvements
The board may only dispose of board owned land or improvements subject to the orders of the Minister of Education. The Disposal of Land or Improvements Order (“M193/08”), effective September 3, 2008 is currently the most recent order regarding disposals. The related School Opening and Closure Order (“M194/08”) has also been in effect since that date.
Under the School Act the Board of Education may acquire or dispose of property owned or administered by the board only by bylaw.
M193/08 requires Ministerial approval of any disposal of land or improvements by sale and transfer in fee simple, or by way of a lease of 10 years or more, unless the disposal is to another school board or to an independent school for educational purposes. Approval is in the Minister’s absolute discretion and may be made on any terms or conditions.
The Minister has issued a checklist of Mandatory Documents for Ministerial Approval, dated December 2, 2008, and a list of Questions and Answers regarding M193/08, dated February 2009. Those documents state Ministry policies, which may change from time to time. Those documents identify at least three factors that should be considered by school boards, although they are not express requirements of M193/08.
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Broad Consultation: The Ministry considers broad public consultation regarding a potential disposal to be important for procedural fairness and transparency. M194/08 specifies what consultation should occur before a school closure. The Ministry has stated that a school closure consultation should be followed by a separate consultation process regarding a proposed disposal.
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Alternative Community Use: The consultation process should include local government, community organizations and the public, and any potential alternative community uses should be considered. The Ministry appears willing to permit school boards to determine the form of consultation that is appropriate in each case.
- Appraisals: The Ministry’s checklist requires two appraisals from licensed property appraisers, but provides that a property assessment may be acceptable in situations where it is impractical to obtain two appraisals.
Allocation of Proceeds from the Disposition of Land or Improvements
The allocation of proceeds from the disposal of board owned capital assets including land is made in accordance with the Ministry of Education Policy Allocation of Proceeds from the Disposition of Capital Assets issued February 18, 2004.
In accordance with the School Act, when a board of education receives money from the disposition of a capital asset, the proceeds must be allocated between the Minister as Minister-restricted capital funds and the board as local capital funds, according to the original contributions made by the province and the board of education, respectively.
The board of education must determine how any proceeds should be allocated, based on its historical records of the capital fund sharing arrangement between the province and the board for site acquisition and any improvements.
In situations where the original contributions by the province and a board cannot be determined, the minister has the authority, under section 100 (3) of the School Act, to allocate the proceeds.
By this authority, the Minister has determined that the proceeds of a disposition may be apportioned at 25 percent as local capital funds and 75 percent as Minister-restricted capital funds. This applies to those cases where the board cannot determine the original provincial or local contributions, or the board's original contribution is known to be equal to or less than 25 percent.
Crown Land Grant
School sites that are the subject of a Crown Land grant are not affected by the Disposal of Land and Improvements Order. Crown Land grants no longer required for educational purposes revert to the Crown as per Section 99 of the School Act.