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POLICY STATEMENT

School districts will be provided with capital funding to purchase essential furniture and equipment for approved new or renovated facilities.

RATIONALE

Unit rates for new building construction include funding for fixed equipment items that should be included as part of the building, including bleachers, lockers, basketball backstops, wall bars, millwork, and fixed cupboards and shelves. The equipment allowances for new elementary and secondary space provide a district with funding to acquire furniture and equipment that is typically not fixed to the building.

LEGISLATION/ REGULATIONS

Under the authority of the School Act, Section 141

141 (1) Subject to the orders of the minister, a board may

(a) engage in a tendering process related to any capital expenditure by the board, and
(b) spend money

(i) for a local capital project
(ii) for an annual capital project
(iii) for a capital plan project, with the approval of the minister.

(2) Subject to the provisions of this Act respecting a local capital project and a capital plan project, a board may spend money on a joint capital project.

POLICY

The equipment allowance will be calculated as a percentage of the base budget rate for new construction, multiplied by the approved area of new construction and freight rate for location.

The equipment allowance for a completion project will be calculated using the percentage and base budget unit rate in place at the time approval to award the construction contract is granted by the Ministry.

One-hundred (100) percent of the equipment allowance is provided for new approved space, including new program space approved as part of major renovation projects.

Twenty-five (25) percent of the new space allowance is provided for major capital projects involving the replacement or major renovation of an existing facility. (For the purposes of this policy, a capital project is considered a major renovation where the cost of renovation exceeds $1 million, or is equal to or greater than fifty (50) percent of the cost for new construction.)

The equipment allowances for renovated or replacement space provides funding to replace major items of furniture in keeping with the new decor of the facility. It is not intended to upgrade all equipment such as small tools, appliances, textbooks or other learning resource materials.

Where a replacement school is larger than the existing school, the equipment allowance will be comprised of the following:

• an equipment allowance amount for new space, calculated on the new approved area minus the existing area; plus
• an equipment allowance amount for existing space being replaced, calculated on the area of the existing facility.

Where a replacement school is smaller than the existing school, the equipment allowance will be based on the new approved area.

There is no equipment allowance for minor renovation projects except where the renovated space includes a new approved educational program area.

Replacement and maintenance of equipment will be considered as operating expenses.

PROCEDURES

Equipment allowance percentages and equipment freight rates are published annually in the Five-Year Capital Plan Allowances, Rates and Costing Factors Supplement.

When requesting specific project approval in a capital plan, an equipment allowance amount shall be entered on the Capital Project Request Form.

The equipment allowance calculation will be confirmed by the Planning Officer and spending authority granted to school districts at the same time that a certificate of approval is issued for construction funding.