From the Milton Canadian Champion May 20, 2010 By Tim Foran

Councillors to debate hospital tax levy

Milton council will debate whether to provide cash, perhaps through a dedicated tax levy, to assist Halton Healthcare Services Corporation’s as yet unapproved plans to expand Milton District Hospital.

At Monday’s council session, Ward 3 Councillor Cindy Lunau introduced a notice of motion, which Ward 4 Councillor Paul Scherer indicated he would second, stating the Town would “endeavour” to help HHS cover its share of the costs to redevelop the half-century-old hospital, which hasn’t undergone a major expansion since the mid-1980s.

The motion states the Town would research and identify potential funding mechanisms including the possibility of including a special property tax levy beginning next year.  Council will debate and vote on the motion at the June 28 council session. Lunau said she wanted the long lead time for the community to have an opportunity to provide feedback and plan to attend the session.

Under Provincial funding guidelines that began in June, 2006, Ontario pays for all of the planning costs and 90 per cent of the bricks and mortar for hospital capital projects. Previously, most capital cost share rates varied from 50 to 80 per cent depending on the project, the Province stated at the time.

However, the hospital corporation is still responsible for the remaining 10 per cent of construction costs along with covering the full cost of building revenue-generating facilities such as cafeterias, retail areas and parking lots as well as the medical equipment inside the hospital.

In total, depending on the equipment a hospital needs, that means the Province will cover around 70 per cent of the total project costs, with the hospital corporation paying the remaining portion, dubbed the local share.

The hospital has three ways to pay that local share: its own revenues from, for example, parking lot fees or stores; fundraising done by the Milton District Hospital Foundation; and through financial assistance from municipalities.

The problem Milton council tried to wrap its head around Monday is that HHS won’t provide the municipality with an estimate right now of how much money it would need.  “At the end of the day, if we put too much (money) away, that’s fine,” Scherer said to HHS President John Oliver during Monday’s council session.  “But we need a starting point.”

Oliver said he understood council’s frustration but he doesn’t want to float a dollar figure that would inevitably turn out to be wrong years later after more detailed planning has taken place.

The hospital provided a preliminary cost estimate when it presented its business case for the expansion to the Ministry of Health in September, 2008 but Oliver said after the council meeting that number is already out of date and he doesn’t wish to release it.

“It’s not just inflation, the original size and scope has evolved from the original business case,” he explained. He said he also doesn’t want to jeopardize a competitive bidding process by leaking expected total costs.

However, Oliver did provide council with a benchmark for comparison when he said the redevelopment planned for Milton’s hospital is at least as big as the one proposed for Burlington’s Joseph Brant Memorial Hospital. The first phase of the redevelopment of Jo Brant is projected to cost $312 million, with the local share pegged at $120 million. In December, Burlington’s city council committed to covering half of that cost, or $60 million, and has already started a dedicated property tax levy this year. The City of Vaughan last year committed $80 million to a proposed new hospital for its community. Both projects are also unapproved and are in competition with the Milton hospital expansion to get on the Province’s next 10-year list of infrastructure projects, to be released next year, likely as part of the 2011 budget.

However, the competition is not just among those three hospitals. The Ministry of Health is currently prioritizing at least 50 other proposed hospital projects before submitting its list of requests to the Ministry of Energy and Infrastructure, which will ultimately decide on the 10-year capital plan.

Other ministries are also prioritizing their own lists of proposed capital projects, one of which includes the proposed Wilfrid Laurier University campus in Milton. That prioritization is expected to take place over the next three months, said Jason Grier, a professional lobbyist from Hill and Knowlton working on behalf of HHS.

One of the things the Ministry of Health will be looking for during this time when prioritizing projects is whether the hospital corporation has a firm plan to meet its local share commitments, Grier said after council Monday.

“They don’t want to move forward on projects that aren’t going to have that local share commitment because then the project isn’t going to happen,” explained Grier, who served as executive assistant to George Smitherman when he was health minister in the provincial government.

Oliver told council it would help the hospital if the Town made a firm commitment of financial support. “I don’t know if you need to put a dollar figure behind it right now.”