Taxes are slated to rise sharply to fund several expensive acute healthcare initiatives. (File Photo/NanaimoNewsNOW)

By Ian Holmes

Health funding

Nanaimo Hospital board signals commitment, albeit expensive, to back regional acute healthcare needs

Dec 18, 2023 | 4:47 PM

NANAIMO — Taxes are slated to rise considerably to fund regional primary healthcare initiatives.

Last week Nanaimo Regional Hospital District (NRHD) board members unanimously approved the 2024 provisional budget, featuring a 28 per cent jump in property taxes between Cedar and Bowser. It equates to a payment of $355 for a property assessed at $800,000.

While in support of the provisional budget, NRHD member and Lantzville representative Mark Swain said they need to be mindful of the already strained taxpayer.

“Especially in construct of all of the other tax increases people are facing, whether it’s your municipal taxes, police taxes, you name it — we just can’t be continuing with this kind of growth in the tax bill,” he said.

Actual increases will be set by the proposed tax rate of $44.45 per $100,000 property valuation.

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In reference to letters of support from several mid and north island mayors regarding the NRHD priority capital projects, Swain said for other health districts on the Island to chip in.

“Just for our region to absorb the cost is not acceptable in my opinion. These other towns, whether it’s Port Hardy or Port McNeill or the West Coast, we’re the next stop for them,” Swain said.

An RDN staff report stated its financial planning is based on the NRHD board’s prior year direction and to accommodate capital requests from Island Health.

Projections for the NRHD 2024-2028 financial plan showed annual tax requisitions for mid Island rate payers will amount to nearly $34 million in 2024, swelling to more than $91 million by 2028.

Qualicum Beach NRHD member Teunis Westbroek said the ability to tax developers for new housing projects would help offset pressure on taxpayers.

“We should be able to charge a community amenity contribution to help with the cost of healthcare services as a result of all this growth,” Westbroek said.

Amenity contributions are typically dedicated to parks, sidewalks and other tangible infrastructure.

An RDN staff reported stated the 2024 NRHD budget includes about $3.5 million for capital equipment and minor capital projects, while $6.2 million is earmarked for dept payments and nearly $29 million transferred to reserve for priority infrastructure projects.

“The 2024-2028 tax requisitions allow for significant contributions to reserves consistent with the prior year approved financial plan which will be used to help offset the cost of borrowing for the proposed projects identified in the 2024-2033 Capital Plan. This will allow the NRHD to reduce its borrowing requirement and realize a significant savings in debt-related costs in the future,” the report stated.

Next month Island Health is scheduled to provide an official funding request for capital equipment and projects in 2024, of which the NRHD covers 40 per cent of the costs.

The province, via the healthy authority, supplies the other 60 per cent.

NRHD priority capital projects include a long term care facility to be built in Lantzville and a cardiac catherization lab and new patient tower for Nanaimo Regional General Hospital.

In addition to supporting Nanaimo hospital, the NRHD also provides funds to Oceanside Health Centre and three care facilities: Dufferein Place in Nanaimo, Trillium Lodge in Parksville and Eagle Park Health Care Facility in Qualicum Beach.

More information on the NRHD can be found here.

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Ian.holmes@pattisonmedia.com

On Twitter: @reporterholmes