At a special general committee meeting held February 7, councillors agreed to raise $230,000 from the tax levy as the municipality prepares its budget for 2023. The money will be put into a special reserve. It represents a 1.29 per cent tax increase or $15.55 per $300,000 of property assessment.
Muskoka Algonquin Healthcare, which manages both the Huntsville and Bracebridge hospitals, anticipates that in 10 years, which is when it believes shovels will hit the ground, the local share of building two new hospitals – one in Bracebridge and one in Huntsville – will be about $225 Million (approximately 30 per cent of the total).
A committee comprised of municipalities, hospital foundations and MAHC has been meeting in order to figure out how to raise the funds and who will be responsible for what amount. MAHC needs to be able to demonstrate to the province by June that it has a plan in place to raise the local share.
Director of financial services/treasurer for the Town of Huntsville Julia McKenzie told councillors that under existing legislation, development charges cannot be used toward the building of hospitals. She suggested that the municipality could petition the province to change the legislation but said it’s a process that could take time.
The municipality has funds in reserves, including funds from the sale of the Waterloo building to Denovo Treatment Centre in 2017. The building was sold for $3.905M.
McKenzie told councillors moving the municipality’s reserves to the reserve for the Town’s portion of the local share of building new hospitals could result in “low levels of reserves available to the Town for its own purposes. If reserves were to be used, it’s still expected that other levy funding would still need to be considered to supplement this.”
Borrowing money could also be considered but that would mean not only raising funds through taxation to pay for the principal but for the interest payments as well, which is very high. McKenzie recommended ongoing funding for the local share come from taxation over ten years. She said once further information is known related to the total cost and estimated contributions from other stakeholders, staff can bring back a report on recommended funding strategies and targets for the next ten years.
Councillors agreed to raise $230,000 for the hospitals this year through taxation. The same amount is already being considered by the Town of Bracebridge, councillors heard.
Councillor Helena Renwick said raising $230,000 with an increase of $15.55 per household is “doable for now. We have to start somewhere because it’s going to happen so I’m in favour of this.”
Councillor Cory Clarke said he agrees with petitioning the province on development charges. He also said he’d support existing reserve funds being allocated to the local share. “I think it’ll take the pressure off the taxpayers and I think council should be considering that option as soon as is reasonable. I’m not in favour of debt or debentures to fund the local share,” he said, adding that the financial impact of carrying that debt on taxpayers is too high.
Huntsville Mayor Nancy Alcock agreed with petitioning the province to allow municipalities to use development charges for hospitals. “If the province is asking municipalities to fund a significant part that’s the local share, then I think it’s really important they give us the tools to do that…”
Councillor Dione Schumacher was also in favour of asking the province to allow development charges to be used. She said even if it doesn’t help this time around, it may help in the future.
Deputy Mayor Dan Armour said an increase of 1.29 per cent may not seem like a lot but it is in a tough taxation year. “I know I was on the picket line like everybody else was [to] save our hospital and we wanted two hospitals and we’re getting two hospitals, so it’s our time to step up to the plate and find some cash… I believe the whole community is going to be on our side for something like this, so it’s got my support.”
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I agree 100 %,but consider every tax was to pay $1000.00 over 10 years that would be $100.00 a year a $25 each of the 4 intern bills.,add it up as I don’t have numbers for all municipalities involved .