The Phil and Jennie Gaglardi Tower at RIH. (Photo via Interior Health)
We’re now getting a better idea of just how much local taxpayers are going to have to come up with to support construction of the new Cancer Care Centre in Kamloops.
“The request by Interior Health for the TRHD to provide 40 per cent funding to support the Cancer Care Centre Project totals $51.59 million, with initial payments being requested to start later in 2024,” the TNRD’s Chief Financial Officer Carla Fox said in a briefing note to the Regional Hospital Board meeting coming up on Thursday.
“The total project cost is currently estimated to be $359 million with 83 per cent of the amount being covered by the Ministry of Health.”
As a result, the call is for local taxpayers throughout the Regional Hospital District to be hit with a five per cent annual hospital tax increase over the next five years. The increase amounts to an extra $10 a year to the annual hospital levy for the average taxpayer.
“Staff are recommending an increase of five per cent year over year until 2028 to address the large increase required for debt servicing that will be added to the Hospital District operating plan and to ensure a reserve balance to address future capital considerations,” Fox added, in the briefing note. “This year was one that had many unknown factors brought to the Board near the end of 2023 for large additional funding considerations.”
“The Cancer Care Project falling on the heels of large debt for the Patient Care Tower does not catch the Board at a time when large reserve balances are available to help with funding.”
A breakdown of the costs for the Kamloops Cancer Care Centre. (Photo via TRHD)
With an over $40 million cost overrun for the upgrades to the Emergency Room at RIH, the Regional Hospital Board is also being asked to pay an additional $16 million this year to cover the 40 per cent local portion of the upgrades.
Regional Hospital Board Chair Mike O’Reilly told Radio NL that while this will be discussed by the Board on Thursday, he suggests this might be a step too far.
“I can tell you when we work the numbers backwards, we would need to be looking at an additional 19.5 percent [tax increase] in 2024,” noted O’Reilly. “Our residents, like many people in the province, are having a very, very difficult time making ends meet. We have to consider that when we make these large decision.”
Non-Indigenous property tax contributions to Cancer Care Centre remain unlikely
It appears home owners in Sun Rivers and Sienna Ridge – located on Tk’emlúps – won’t be on the hook for the five percent annual tax increase for the Cancer Care Centre.
A letter from Finance Minister Katrine Conroy in the same agenda on Thursday states – in part – that under the rules, Tk’emlúps holds the sole ability to collect hospital taxes from residents of Sun Rivers, suggesting the Regional Hospital Board shouldn’t be budgeting Sun Rivers money into the payments for the Cancer Care Centre.
“On September 13, you wrote a letter to my office advising me that the Thompson Regional Hospital District would be reducing their tax requisition in 2024 by $271,343 to account for the Sun Rivers and Sienna Ridge properties,” Conroy said, in the letter. “While the Hospital District Board has the authority to determine its own tax requisitions, your letter does not change the funding requirements negotiated between the board and the Province.”
“There cannot be a budget shortfall generated from properties that are not within the tax base. The Regional Hospital District should not be factoring these properties into its budget development or tax rate setting processes.”
However, the letter does suggest there may be a window for the Regional Hospital Board to help reduce the tax hit.
“As mentioned during our discussion [at the Union of BC Municipalities Convention], a 40 per cent local contribution is no longer required by the Hospital District Act,” added Conroy.
“I would encourage you to continue your discussions with the Ministry of Health regarding an equitable contribution share from local taxation.”
Construction on the new $359-million cancer centre at Royal Inland Hospital is expected to begin next year, and be “substantially” complete by 2028.
That project will also include $55-million in upgrades to existing cancer care services at RIH, including an expanded pharmacy as well as the relocation and expansion of the Community Oncology Network clinic.
Those renovations are expected to get underway in 2026 and be “substantially” complete by 2029.
