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THE FINANciAL ASPECTS OF THE NO_RTH SHORE REGIONAL COLLEGE ·D,ISTRICT ·

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ADDENDUM

To the report of the .North Shore Regional College Study

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January l5, 1968

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s foo1t~ DAVIS·MACCONNELL·RALSTON, INC.

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760 welch road, palo alto, california 94304

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THE FINANCIAL ASPECTS OF THE NORTH SHORE REGIONAL COLLEGE
'The purpose of this addendum is to provide an economic perspective on t he problem of financing
capital expenditures for campus facilities and operating costs of the North Shore Regional College.
This supplement examines the revenue sources available through the federal and the provincial
government assistance programs and reviews the local ability to support the financial requirements for a
community college.
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These are :

The Consultants drew information of financial potentialities from various s ources .

a) Public School Act, sections 192, 193, 219 and 243 pertaining to ,by- laws and rules on funds ·

paid by the Provincial Government of British Columbia to school distri cts; b) the Technical - Vocat ional
Act of 1960 providing federal assistance regulations for the development and operation of programs for
vocational and occupational training.

c) Historical data on assessed valuation for school purposes

relevant to the tax base in the component school districts of the Regional College.
The Consultants' report on the North Shore Regional College Study, in the section on curriculum
and program, presents estimates on construction cost of ca~pus facilities and operating costs per student.
This addendum attempts to present the broad guidelines that will be of assistance in dealing with the
financial problems.
THE FINANCIAL PICTURE
The total financial requirements for the Regional College consist of capital expenditures and
ope'r ating costs .

Capital outlays are budgeted for the acquis ition of a campus site, the costs of ground

beautification and site development,and the construction of buildings and outdoor activity areas.

The

operating expenditures .are arrived at by multiplying an amount approved by the Council of Public Instruction
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with the number of the instructional staff.

The legislative by-laws define one full time "instructional

staff member" for each twenty full-time students or a fraction thereof.

The number of "full-time

equivalent students" (FTE) is the total number of units for which students are enrolled divided by fifteen.
Capital expenditures are defrayed partly by funds received from the federal and provincial
governments and partly by a special tax levy or bond issue approved by the electorate of the districts
operating the regional college.
The operating costs are defrayed by funds received as assistance from federal and provincial
governments by a local tax levy agreed upon by the local district boards, and by student fees in amounts
determined by the Regional College Council.
PROVISION OF REVENUE SOURCES:
1)

Provincial Grants
a)

Capital Bxpenditures:

The enabling legislation for regional colleges in British Columbia provides

in the Public School Act of 1963 as amended in 1965, Section 193, the regulation for the assistance
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t o school districts in capital expenditures as follows:

"Council of Public Instruction judges
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and approves the maximum amount for the construction and equipment of a college building specified

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by him as eligible for grants and pays one half of the approved amount."

The law further provides

one hal f of the total amount set forth in the annual estimates of the college for the payment of
principal and interest of debts for capital expenditures in respect to the college and which are
approved by the Minister of Education.
b)

Operating Costs:

The Public School Act in Section 192 provides that "the Minister. of Finance shall

pay in each calendar year to the Board of each school district maintaining a school district college
a grant for operating expenses of the college for that year equal to one-half the total amount of
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essential operating expenses set forth in the annual estimates of the College as finally approved
by the Minister of Education."
2)

Federal- grants under the "TeohnioaZ-VooationaZ Aot of 1960 11
This act contains provisions for financial assistance to the provinces for developing technical and
vocational services within the provincial educational system.
a)

The act provides:

Capital cost assistance for 75 percent of the cost of new buildings and equipment used for
manpower training and qualifying under the provisions of the act.

b)

Operating cost support of 50 percent for occupational and vocational t~aining courses qualifying
under the provisions of the act.
As a' result of the provisions of provincial and federal assistance programs, the regional college

district is able to obtain the total funds for expenditures on facilities and equipment for vocational
training to be provided in 50 percent share by each level of ·government.

By the same provisions and the

same sharing basis the regional college may obtain grants for the total operating costs of the technicalvocational programs.
3)

The Region's Share in the Financing Program
Capital Expenditures:

a) The acquisition of a site for a college and the costs of ground beautification

and site development, other than directly related to building construction must be financed by the
region.
b)

Building costs are financed 50 percent by the province, and 50 percent by the region.
Site acquisition and construction of facilities may be financed through a bond issue, although a

special tax levy can be raised on behalf of capital costs.

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Operating Costs:

Approximately 50 percent of approved operating cost are contributed by the Province.

Vocational-technical training is financed with provincial and federa l funds.

The remainder of t he costs is

defrayed by raising levies throughout the region and from tuition fees determined by the.Regional College
Council.
· Distribution of Region's Share among Component School Districts
Regulations provide for a uniform levy on all districts, or a variable levy.

Levies may be varied

for capital costs, residence costs, and operating costs . . The levies on the various districts wil l be

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agreed upon by the participating boards, after consideration of all factors involved .
Local Ability to Finance Public Education
The maj or factor determining local ability to support the regional college is the strength of
the local tax base on which the support for education rests . ·. The statistical data presented in Tab les 1 ·- 4
inclusive present trends and projections in assessed valuations for school purposes in t he component school
districts of the regional college area.
· year s by component school districts .

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Table 1 presents trends in assessed valuations over a period of ten

The examination of the trends reveals:

North Vancouver increased

in assessed valuation by 105.44 percent over the ten- year period, West Vancouver by 122.94 percent,
Sechelt by 141 . 90 percent, and 11owe Sound increased the assessed valuation by 248 . 0 percent over t he
last ten-year period .
1976 .

Table 2 presents estimates on assessed valuations by school districts to the year

Projected percentage increases in assessed v aluat ion~ are based on the observed trends in

increases of the last four to five years.

Table 3 presents the combined projections of the assessed

valuations in the regional college for each year to 1976 and the percentage of assessed valuation of each
of the component schoo_l districts .

It is significant to note that although the projected yearly percentage
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increases vary for each district, the percent distribution in the projected assessed valuations among
the districts does not reflect too much change over the next years.

Table 4 showing assessed valuations

per capita, provides significant information for the consideration of the tax levy ratio among the component school districts of the North Shore Regional College.

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TABLE 1
TRENDS IN ASSESSED VALUATIONS FOR SCHOOL PURPOSES
NORTH SHORE REGIONAL COLLEGE DISTRICT BY COMPONENT SCHOOL DISTRICTS
1956 - 1967

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Year

School District #44
(North Vancouver)

1956
1957
1958
1959
1960
1961
1962
1963
1964
' 1965
1966
1967

$ 67,893,346
82,472,385
94,549,793
104,608,887
109,560,155
114,647,822
130,585,129
135,369,451
140,342,690
145,358,820
159,883,498
169,434,583

Number ·

Yearly
Percent
Increase

School District #45
(West Vancouver)

YearlyPercent
Increase

School District #46
(Sec he 1t)

+ 15.30%
+ 10.52
+ 9.00
+ 9.19
+ 7.44
+ 20.52
+ 6.02
+ 4.78
+ 4.96
+ 6.89
· + 4.90

$ 13,271 ,832
17 '7l 0 '631
21,286,172
22,600,103
22,547,100
23,598,723
26,899,645
32,229,448
33,986,845
37,154,616
42,025,414
42,842,030

$ 40,293,408
+ 21.47%
+ 14.64
+ 10.60
+ 4.70
+ 4.60
+ 13.90
+ 3.60
+ 3.60
+ 3,57
+ 5.90
+ 5.90

Percent

46,460,135
51,351,387
55,978,002
61 '127 ,727
65,677,428
79,154,826 1
83,926,039
87,941,334
92,311,600
98,676,004
103,581,873

Number

10 Year Increase
1957 - 1967
Percent

Yearly
Percent
Increase

School District #48
(Howe Sound)

$ 11,530,381
+ 33.44% .
. . . 13 '531 '413 .:
+ 20.18
24,440,664
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. + 6.17
22,895,529
... 0.24
. 22,254,975
+ 4.66
26,597,935
+ 14.00
28,376,144
+ 19.81
30,110,935
+ 5.45
31,249,794
+ 9.32
32,865,358
+ 13.10
43,439,541
+ 1.94
. 47 '117 '180 '

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Yearly
Percent
Increase
+' 17.35%
+ 80.62
+ 6.33
- 2.80
' + 19.51
+ 6.68
+ 6.11
+ 3.78
+ 5.17
+ 32.17
+ 8.46

Number

Percent

Number

Percent

25,131,399

+141.90

33,585,767

+248.20

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86,962,192
Source:

+105.44%

57,121,738

+122.94'

Data reported by the administrative offices of the component scho·ol districts.

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TABLE 2
PROJECTED ASSESSED VALUATIONS FOR SCHOOL PURPOSES
NORTH SHORE REGIONAL COLLEGE DISTRICT BY COMPONENT SCHOOL DISTRICTS
1967 - 1976
Year

School District #44
(North Vancouver)

1967

$169,434,583

1968
1969
1970
1971 .

177,059 '139
185,026,800
193,353,006
202,053,891
211,146,316
220,647,900
230,577,055
240,953,022
251,795,908

1972
1973
1974
1975
1976

Prepared by:

School District #46
(Sechelt)

School District #45
(West Vancouver)
4.5% increase $103,581,873
per year
109,175,294
115,070,759
121,284,579
127,833,946
134,736,979
142,012,773
149,681,462 .
'157,764,261
166,283,531

· 5. 4% increase . $ 42,842,030
per year
46,269,392
49,970,943
53,968,618
58,286,107
62,948,995
67,984,915
73,423,708 .
79,297,604
85,641,412

Davis-MacConne11-Ra1ston, Inc.

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School District #48
(Howe .Sound)
8.0% increase $ 47' 117 '180
per year
50,415,382
53,944,459
57,720,571
61,761 ,on .
66,084,281
70,710,180
75,659,892
80,956,084
86,623,010

7.0% increase
per year

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TABL E 3
PROJECTED ASSESSED VALUATIONS, 1967 - 1976
NORTH SHORE REGIONAL COLLEGE - PERCENTAGES BY COMPONENT SCHOOL DISTRICTS
Component
School Districts·

1967

Percent of
Total

1968

Percent of
Total .

North Van couver
We st Vancouver
Sechelt
Howe Sound
Total Regional
College District

$169,434,583
103,581,873
42,842,030
47,117,180
·. $362,975,666

46.7%
28.5
11.8
13.0
100.0%

$177,059,139
109,175,294
46,269,392
50,415,382
$382,915,207

46.2%
28.5
12.1
13.2
. 100.0%

45.8% .
28.5
12.4 .
13.3
100.0%

1970
$193,353,006
121,284,579
53,968,618
57,720,571
$426,326,774

45.4%
28.4 ·
12.7
13.5
100.0%

44.9%
28.4
13.0
13.7
100.0%

1972
$211,146,316
134,736,979
62,948,995
66,084,281
$474,916,571

44.5%
28.4
13.2
13.9
100.0%

1969
$185,026,800
115,070,759
49,970,948
53 ' 944, 459 .
. $404,012,961

North Vancouver
We s t Vancouver
Sechelt
Howe Sound
Total Regi onal
Col lege District
North Vancouver
Wes t Vancouver
Sec helt
Howe Sound
Total Regional
College District

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1971
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$202,053,891
127,833,946
58,286,107
61 '761 ,011
$449,934,955

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TABLE 3 (continued)
PROJECTED ASSESSED VALUAT IONS, 1967 - 1976
NORTH SHORE REGIONAL COLLEGE - PERCENTAGES BY COMPONENT SCHOOL DISTRICTS
Component
School Districts

1973

North Vancouver
Hest Vancouver
Sechelt
Howe Sound
. Total Regional
College District .

$220,647,900 .
142,01 2,773
67,984,915
70 ,710, 180
. $501 ,355, 768

North Vancouver
Hest Vancouver
Sechelt
Howe Sound
Total Regional
Co 11 ege Distri ct ·
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1975
$240,953,022
157,764,261
79,297,604
80,956,084
$558,970,971

1974

Per cent of
Tota l

14. 1
100.0%

$230 ,577,055
149,681 ,462
73, 423,708
75,659,892
$529,342,117

43. 5%
28. 3
13. 9
14. 3
100 . 0%

43 . 1%
28.2
-14 .2
14 .5
100.0%

1976 .
$251, 795,908
166 ,283,531
85,641,41 2
86,623,010
$590,343,861

42 . 6%
28.2
14. 5
14 . 7
100.0%

Percent of
Total
44.0%
28.3
13.6

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Prepared by: Davis-MacConnel l -Ra1ston, · Inc .
Source: Table 2

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TABLE 4
ASSESSED VALUATIONS PER CAPITA
N OR~H SHORE REGIONAL COLLEGE DISTRICT BY COM
PONENT SCHOOL DISTRICTS
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1956 - 1976

Projection

Component
School Districts

1956

1961

1966

1971

1976

North Van couver

$1 ,469 ' .

$2,085

$2,030

$2,127

$2,364

We st Vancouver

2,098

2,580

3,183

3,550

4,376

1 ,977

3,273

4,944

6,148

8,930

1,899

5,808

5,352

5,961

6,546

Sechelt
Howe Sound

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Note : The above per capita assessed va luatio ns are computed for the years of available census data
on populati on and fo r t he years .for which population projections are presented in the report
of the Nort h Shore Region a1 Co 11 ege Study.
Source : Davi s-MacConnell-Ralston, Inc.

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