OTTAWA

Municipalities asked to pay higher property taxes to fund Perth and Smiths Falls District Hospital

CTV Ottawa Published Wednesday, June 20, 2018 5:43PM EDT

Perth and Smiths Falls District Hospital turning to area communities for funding

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Residents in municipalities surrounding Smiths Falls might soon see their property taxes go up. Facing a funding shortfall, the Perth and Smiths Falls District Hospital is turning to area residents and hospital users for help.

While the hospital receives tens of millions of dollars from the provincial government to cover operational costs every year, it's up to the hospital to cover capital costs. Those expenses include the cost of purchasing new equipment like MRIs, X-Rays and computers used by staff on a daily basis.

"When did the ten year plan we were a little shocked to see that we are going to need about $30 Million over the next ten years to fund our capital equipment," said Donna Howard, the Chair of the hospital's board of directors.

Howard said it's becoming increasingly difficult to find donors and funding for less "sexy" items like computers and IT systems, that are essential to the success of the hospital.

"We talk about equipment generally and the equipment is becoming increasingly high technology and associated with that is increase costs, increased maintenance and probably shorter end of life for the equipment we have there," Howard said.

The hospital does run a surplus every year, but that money is being used to pay off the debt incurred by a recent renovation of the hospital's Smiths Falls campus.

Last week, councilors at Smiths Falls town council debated the prospect of adding a hospital levy to residents' property taxes.

"The reception was quiet good," said the town's mayor, Shawn Pankow.

"It's vitally important to have those services available here," he added.

The proposal would see taxes go up anywhere from 0.88% to 3.10%. The levy was proposed based on the municipalities size, and estimated usage of the hospital.

"The best way to provide that sustainable funding is through a hospital levy or whatever you want to call it," Pankow said.

The proposal still needs to be debated and approved by Smiths Falls city council and by Perth's town council. After that, the two town mayor's will shop around the idea to neighboring municipalities who will also be asked to pay the levy.

A full breakdown of the report to the Smiths Falls committee of the whole can be viewed here:

Proposed Increases: