Nanaimo Regional Hospital District 2021 Budget

It’s budget time again, and I will again be providing more information about your taxes. In this first post I’m not posting about RDN taxes, but the Nanaimo Regional Hospital District taxes we pay (I’m on the NRHD Board). I’d like to hear from you! Please feel free to contact me via email vanessa.craig@rdn.bc.ca, or click the big CONTACT button at the top right of my website.

Did you know that the province expects the Nanaimo Regional Hospital District (NRHD) members (which has the same boundaries as the RDN) to provide a regional contribution of 40% for healthcare infrastructure capital costs desired for a region (the province pays 60%)? If we want the Nanaimo Regional General Hospital to have expanded facilities such as a patient tower, an extra MRI machine, or a cancer care centre, we’re expected to provide 40% of the funding for the capital costs (ongoing operational costs are paid by the province).

Summary:

·       Taxpayers within the Nanaimo Regional Hospital District are expected to pay 40% of capital costs for healthcare infrastructure in our region.

·       The Island Health plan outlines $2.6 billion in capital costs over the next 15 years including new long-term care beds, a patient tower, a cancer care centre, a high acuity care unit, as well as replacement of various equipment and buildings.

·       Currently we pay $16.13 per $100,000 of assessed value to support capital costs for healthcare infrastructure. This amount is considerably lower than our neighbouring regional hospital districts (Cowichan and Comox both pay >$50 per $100,000 assessed value per year).

·       To support this infrastructure plan, and to avoid a bigger tax increase in future, we are considering whether to increase taxation up to $50 per $100,000 assessed value. This means that taxation for an average home in Area B ($419,176 in the 2020 assessment) would pay $209.59 using the 2020 assessment values (the actual amount will vary based on updated assessment values each year).

Background:

The Nanaimo Regional Hospital District Board is comprised of the regional Directors for the RDN. We’re meeting this Tuesday December 8th starting 1 pm to discuss the 2021 hospital budget. This is not considered part of the RDN budget, but it will impact the overall taxes residents pay in the region.

In November 2020, Island Health provided information regarding their long-term capital plan which includes $2.6 billion of capital projects through to 2035. Based on Island Health’s plans for capital improvements at NRGH over the next 15 years, we are considering whether to increase taxes from the current $16.13 per $100,000 assessed value up to $50 per $100,000 assessed value. This amount will support these ambitious plans. Paying this amount annually over many years will prevent a larger increase in future.

Island Health have indicated the following capital projects for 2021: Long-term care beds for $122,000,000; SPECT CT- Siemens E-can dual Head for $2,680,000; ihealth/electronic health record bridging plan for $3,000,000; and a chemotherapy clinic/pharmacy expansion for $3,000,000.

The staff report (which has a useful overview) and accompanying budget materials from Island Health detailing all of the plans for new and replacement of infrastructure can be found here: https://rdn-pub.escribemeetings.com/FileStream.ashx?DocumentId=15086