Powell River Regional Hospital District committee of the whole is recommending that the regional hospital board endorse the 2020 budget as proposed.
The regional hospital district’s proposed annual requisition for the 2020 operations and debt payments is $770,544.
This requisition represents a total increase of $60,330 over that of 2019.
At the Thursday, February 13, meeting of the regional hospital district’s committee of the whole, it was revealed by manager of financial services Linda Greenan that the residential tax rate per $100,000 of net taxable value will be $13.66 for electors within municipal and electoral area boundaries. This is an increase of $0.31 from 2019.
The rate for Tla’amin Nation will be $8.06 per $100,000 of net taxable value, an increase of $0.62 from 2019.
The budget brings forward $94,934 in reserves that were unclaimed in 2018 and 2019.
In terms of debt payments for Willingdon Creek Village, the amount is $1,488.616, plus deferred interest of $17,887. Greenan said those payments go until 2034.
There is also an administration fee to qathet Regional District. This includes indirect costs related to the administration of the hospital district for items such as finance department time for a number of tasks related to the hospital district, advertising, website pages and updates, audit fees, committee and board meetings, plus general administration office overhead.
Greenan said the regional district charges the regional hospital district $65,000; she is recommending that fee be increased to $100,000 to account for indirect operating and administration costs.
“That $100,000 makes more sense to cover all of those costs,” said Greenan.
In terms of capital equipment, the total is $171,271. Greenan said that is a combination of the $94,934 brought forward from previous years, and the new ask by Vancouver Coastal Health (VCH) of $171,271 for equipment. She said this would mean the $94,000 plus $83,000 of new money.
Greenan said the hospital board has generally given between $75,000 and $100,000 for Powell River General Hospital equipment.
There will be $15,000 in professional fees dedicated for the cost to develop a strategic plan for the regional hospital district.
In terms of reserve fund contribution, Greenan said there has not been a contribution for a couple of years. She is recommending that the hospital make reserve fund contributions again. There are current reserves of $3.7 million to the end of 2019, but the regional hospital district wants to maintain the reserves in case of a future interest rate hike for Willingdon Creek Village.
“I don’t like the idea of depleting those reserves over time,” said Greenan. “I would like to keep them intact until 2024.”
She is recommending an annual contribution to reserves of at least $100,000. This would amount to about $2 per $100,000 of net taxable value.
City director George Doubt said he had questions about the capital expenditures for equipment. He said there was a list of equipment adding up to $171,271. He asked Greenan if she had any information about who that list comes from or who suggested that list.
“Was that equipment that Vancouver Coastal Health determined previously that they needed, or was it a list they came up with to match the $171,000?” asked Doubt.
Greenan said she was not sure how VCH determined the list but communication between her and VCH has not been great. She said she heard back from a VCH representative she had not dealt with before who provided the list.
“It is coincidental that it happens to match pretty closely with what it would have been with the carry-forward and another $75,000, but I’m not sure where he got that list from,” said Greenan.
Doubt said he did not see any supporting information to justify why those are the things to buy, as opposed to something else.
Greenan said a planning session would be helpful. She said the regional hospital district used to receive a list, annually, of the hospital’s capital needs and they would outline the priority items. She said they have gone away from that practice and it has not been in place for a few years.
“It would be good in strategic planning sessions to flesh that out,” said Greenan.
Electoral Area A director Patrick Brabazon said this reinforces the need to sit down with VCH and layout some long-term planning.
