In a hard-fought decision, Northumberland County council voted support for Northumberland Hills Hospital and Campbellford Memorial Hospital totalling $1.25-million over five years – at an estimated average cost per household of $5.14 per year – at a special meeting Thursday.
Both hospitals initially made the approach June 7, asking $1-million a year for 10 years. They have since reduced that request to 1% of the county levy over eight years. Their latest request is 1% over five years.
The money will go toward capital needs, Chief Administrative Officer Jennifer Moore said. They have traditionally been able to meet these needs through fundraising events, campaigns and other initiatives from their foundations, but are at the point where they need more.
The help from the county will have to come from property taxes, Moore said – at a time when about 25% of the county's budget funds health-care services through the Golden Plough Lodge long-term-care home, paramedic services, its Community and Social Services division, its role on the Ontario Health Team-Northumberland and its funding of the Haliburton Kawartha Pine Ridge District Health Unit.
The average home's tax bill includes more than $300 a year toward these services, and is likely to rise given today's realities.
For example, the Plough is being rebuilt and enlarged, entailing not only long-term debt but a rise in future levies to operate it. And the province has reduced its share of funding for the health unit by 5% and also downloaded some services it previously funded 100%.
Treasurer Glenn Dees reminded council of other budget pressures, such as prospects of a 2022 budget that will have a 5.4% increase. This comes at a time of inflationary pressures in the 4.4% range and budget increases that have not kept pace with other Eastern Ontario Wardens Caucus municipalities resulting in significant infrastructure deficits.
There are also major projects on the horizon in addition to the Plough rebuild, such as social-housing expansion and a consolidated public works yard.
“We are maxing out on what most municipalities would take on as debt,” Dees warned.
He also predicted that agreeing to this kind of support would set a precedent that will result in other requests
Should any donation be made, Moore said it should come with a binding agreement on such items as confirmation of the 75-25 split of funds between NHH and CMH, payment milestones and certification, reporting and communications requirements, and the possibility of a county staffer being represented on an appropriate board or committee.
Warden Bob Crate and Councillor Bob Sanderson expressed their support for some level of support. So did Councillor Brian Ostrander, pointing out that Brighton residents already pay an annual amount of $35,000 in support of the foundations at both hospitals.
Councillor John Henderson pointed out the importance of hospitals in an area like Northumberland with an aging demographic, but wanted to find a sweet spot in terms of how much support to give.
“I know there are individuals who struggle,” Henderson said.
“We have citizens not meeting their bills, not able to pay their utility bills, not able to pay their rent.”
Deputy Warden Mandy Martin and Councillor Bill Cane – who have come out against this kind of support before in previous meetings – reiterated their opposition in strenuous terms.
“In reality, let's call it what it is – a hospital tax,” Cane said.
“We put this forward, we are forcing people to pay whether they support the hospitals or not.
“The staff report is screaming, 'No, don't do it.' Our debt is climbing and we have a request coming from public works for a large amount of money, which is going to increase our debt.
“This council has spent three years working very hard not to put any more pressure on the levy than we absolutely have to, to the point of taking our director of finance's long-range plan off-course. I have to wonder what our senior staff are thinking now that we are contemplating giving money to the hospitals, which is not in our realm of responsibility.”
“Frankly, public health is a provincial responsibility,” Martin declared.
“Over 25% of our budget is going to health care. That is significant. I don't think we can add any more on. I think there's no sweet spot.
“I support health care. There needs to be hospitals, I recognize, but this is not our mandate. It's not our mandate.
“We have accepted the mandates that have been downloaded to us, and there are other areas of responsibility going forward. How much clearer can the staff be in looking at the situation.”
Councillor Gail Latchford reminded council of the role a good hospital plays in economic development, recalling the time – before NHH was built – when the area lost a significant business opportunity because they didn't like the old Cobourg hospital that was eventually replaced by NHH.
“I support helping our hospital, but I think it has to be very reasonable and something that our taxpayers can handle,” Latchford said.
“There are some people it won't make any difference to at all, and there are others it will make a bit of a difference to. But we all use the hospitals. We all need the hospitals for ourselves and families.”
“I think we are still going on emotion,” Martin objected.
“It's all well and good to get warm and fuzzy. Everyone supports the hospital, of course, but I'm sorry – we need a new excavator at the MRF.
“It's not a matter of being a nice guy and nice girl. We have to look at this very, very carefully. We are setting a precedent, and it's not our mandate. It's provincial. If you are not questioning why we are having to do this, then I think we're missing the point. There are bigger issues at play here, and we need to be aware of that.”
Martin and Cane were the only councillors who voted against the basic question of whether to support the hospitals' request.
After that, the debate centred on the level of funding.
Ostrander's original motion was a payment of $250,000, followed by a four-year agreement that could be negotiated for the 2023 budget year by the next council following October's municipal elections.
Sanderson said council should put the five-year plan in place now.
It does commit the next council, Henderson said, but he argued for a fixed amount of support so that they would know what they are working with.
Ostrander said he would be comfortable with a “moderate – and I mean moderate” increase over $250,000 for subsequent years. Sanderson suggested going as high as $500,000.
“One million two hundred fifty thousand is what you are committing this council to,” Martin said.
“Let's talk about it in terms of the total. Frankly, that's enough, from where I stand.”
The motion put on the floor called for $250,000 annually for five years, starting in 2022, with payment governed by an agreement that set out specifics on all the concerns Moore had mentioned.