Proceeds of Dispositions Reserve Fund
2. (1) Subject to subsection (3), every district school board shall allocate all proceeds of sales, leases and other dispositions of real property, other than real property to which section 2.1 applies, to a reserve fund established only for the purposes of, (a) with respect to the things listed in subsection (1.1), (i) acquiring them by lease, or (ii) financing their acquisition, by purchase or otherwise, if they were acquired, (A) on or before June 12, 2006, or (B) at any other time if the acquisition is reported by the board as being for the purposes of school renewal; and (b) subject to subsections (3) to (6), acquiring, by purchase, lease or otherwise, real property to be used by the board for board administration purposes, and additions, alterations, renovations or major repairs to real property used by the board for those purposes. O. Reg. 79/08, s. 2. (1.1) The things mentioned in clause (1) (a) are, (a) school sites that provide or are capable of providing pupil accommodation, and additions or improvements to such school sites; (b) school buildings, fixtures of school buildings, fixtures of school properties, and additions, alterations, renovations or major repairs to school buildings, fixtures of school buildings or fixtures of school properties; (c) furniture and equipment to be used in school buildings; (d) library materials for the initial equipping of libraries in school buildings; (e) installations on school properties to supply school buildings on the properties with water, sewer, septic, electrical, heating, cooling, natural gas, telephone or cable services, and alterations, replacements or major repairs to those installations; and (f) changes to the level, drainage or surface of school properties. O. Reg. 526/07, s. 2 (2). (1.2) Subsection 231 (6) of the Act applies to money held in a reserve fund described in this section. O. Reg. 526/07, s. 2 (2). (2) Subject to subsection (3), every district school board shall allocate all proceeds of property insurance on property of a kind referred to in clause (1) (a), whether or not the property was acquired with money from a reserve fund referred to in subsection (1), to a reserve fund established only for the purposes referred to in subsection (1). O. Reg. 446/98, s. 2 (2). (3) Subsections (1) and (2) do not apply to, (a) proceeds that are required by section 3 to be allocated to an education development charge account or education development charge reserve fund; (b) proceeds that the board is required to pay to another board pursuant to an agreement approved by the Education Improvement Commission; or (c) proceeds that the board is required to pay to the Crown in right of Canada pursuant to an agreement under subsection 188 (3) of the Act. O. Reg. 446/98, s. 2 (3). (4) The amount that a district school board may use from the reserve fund referred to in subsection (1) for the purpose described in clause (1) (b) shall not exceed the total of the board’s net proceeds from sales, leases and other dispositions of real property that, immediately before January 1, 1998, included buildings that were used by an old board for board administration purposes. O. Reg. 446/98, s. 2 (4). (5) Subject to subsection (6), for the purpose of subsection (4), the net proceeds from a sale, lease or other disposition is equal to the proceeds from the sale, lease or other disposition, less the following amounts: 1. Expenses incurred for commissions, legal fees, appraisal fees, registration fees, and adjustments to tax and utility accounts in respect of the sale, lease or other disposition. 2. Any amount applied under subsection 9 (7) of Ontario Regulation 466/97 in respect of the sale, lease or other disposition. O. Reg. 446/98, s. 2 (5). (6) For the purpose of subsection (4), if more than two hectares of land are included in property that is sold, leased or otherwise disposed of, the net proceeds from the sale, lease or other disposition shall be determined in accordance with the following formula:  where, A = the net proceeds from the sale, lease or other disposition, determined in accordance with subsection (5), B = the fair market value, at the time of the sale, lease or other disposition, of a part of the property, not exceeding two hectares in area, that includes, i. the land on which the buildings used by the old board for board administration purposes were situated, and ii. any other part of the property that was required to permit those buildings to be used by the old board for board administration purposes, C = the fair market value, at the time of the sale, lease or other disposition, of all the property. O. Reg. 446/98, s. 2 (6). (7) A district school board shall not use funds from the reserve fund referred to in subsection (1) for the purpose described in clause (1) (b) unless the following requirements have been met: 1. The board must publish the following in a newspaper that, in the opinion of the secretary of the board, is of general circulation in the board’s area of jurisdiction: i. Notice of the board’s proposal to withdraw funds from the reserve fund for the purpose described in clause (1) (b). ii. Sufficient information to permit the board’s supporters to understand generally the board’s reasons for the proposed withdrawal of funds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition. iii. Sufficient information to permit the board’s supporters to understand generally the board’s plans respecting use of the funds, but excluding information that, in the opinion of the board, would prejudice the board’s position in negotiations for the proposed acquisition. iv. Notice of the time and place of a meeting of the board’s supporters at which the board’s proposal will be discussed. v. Notice that the board’s supporters will be given the opportunity to make representations at the meeting. 2. The board must hold the meeting referred to in subparagraph iv of paragraph 1 on a day that is at least 21 days after the requirements of paragraph 1 have been met and must provide the opportunity to make representations referred to in subparagraph v of paragraph 1. 3. Within the period that begins three months after the meeting referred to in subparagraph iv of paragraph 1 and ends one year after that meeting, the board must pass a resolution that, i. is consistent with the notices and information provided under paragraph 1, and ii. directs the withdrawal of funds from the reserve fund referred to in subsection (1) and the use of those funds for the purpose described in clause (1) (b). O. Reg. 446/98, s. 2 (7). Reserve Fund for the Proceeds of Disposition of Schools that are Prohibitive to Repair