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A concept rendering of Prince Albert's proposed $300 million hospital expansion. (Government of Saskatchewan)
On the campaign trail

P.A. mayoral candidates weigh options for future hospital costs

Sep 1, 2020 | 5:48 PM

Construction of a brand new hospital building in Prince Albert is still years away, but questions related to interior costs have now become a campaign issue, and specifically whether or not a levy should be implemented.

The provincial government has made a commitment to fully fund the $300 million construction of the hospital, thereby saving the city at least $40 million. However the cost of furnishing the facility will fall on the taxpayers’ shoulders, which could be 10 per cent of the construction cost.

One of the mayoral candidates ahead of November’s civic elections, Darryl Hickie, told paNOW if elected he would ask each household in the city to pay a small levy, starting in 2021.

“We have to have a way to pay it off and my point is we don’t want to be surprised after the fundraising is done that there should be a shortfall,” Hickie said. “We should be proactive, put some money away right now so it’s not a huge hit to the taxpayers down the road.”

Hickie praised the work of the Victoria Hospital Foundation, which will be in charge of the fundraising effort, but reiterated every household in the city can start doing its part now.

“It’s like our household income, a little bit of savings today, monthly put away, or yearly, ends up being a lot down the road, rather than having to go for a big chunk of money to put in at the end,” he said.

While the exact details and form of the levy are a bit premature to discuss, Hickie said he would leave the number-crunching up to administration. He also suggested asking neighbouring municipalities for support — an option previously used in funding the Pineview Terrace long term care home. Hickie also suggested the levy could start small such as $25 a year from each household.

“The key to me is how to do it without moving seniors” – Mayor Greg Dionne

Hickie acknowledged the financial pressures caused by COVID-19, but told paNOW the uncertainty goes beyond that, adding residents have not been provided with a proper fiscal update from the city.

“We are into two months before the election and all we’ve heard from the mayor is borrow, borrow, borrow,” he said. “We know that our debt limit was increased by the province by $10 million; we know that we have $20 million in borrowing for the covid response; we have another $14 million in borrowing for the waste water treatment, I mean what’s next?”

Hickie also acknowledged it’s not common or perhaps even popular for a candidate to discuss tax increases and levies during an election, but he explained he also wanted to be open and transparent about his plans.

Response from the incumbent

paNOW also reached out to Mayor Greg Dionne for comment, who explained he was not opposed to the idea of a levy, but added after listening to rate payers, the message he received back was loud and clear: It can’t be big.

“At the end of the day if we put a levy in, we are going to put people out of their homes,” Dionne said, adding over and above the costs of the levy, residents may also be dealing with property tax increases or utility hikes.

Dionne explained before there can be any discussions about the next step, two big questions have to be answered: What is the exact amount to be raised, and what will the city’s share be.

Dionne said in the case of the Pineview Terrace project, the former Parkland Health Region existed and so the city was only on the hook for a portion of it.

“The key to me is how to do it without moving seniors and impacting fixed income people because at the end of the day, that’s who is going to pay,” he said.

What is the current mayor’s plan?

Dionne also said he believes the city can raise its share, and even explained to paNOW he received three phone calls already from interested individuals who have already made a financial commitment.

“One guaranteed me six figures, one will give seven figures but they want naming rights,” Dionne said.

Dionne then explained the decision to award naming rights does not rest with the city or the hospital foundation, but rather falls with the Ministry of Health and the Sask. Hospitals Foundation.

“That building is owned by the Saskatchewan Government and is overseen by the Sask. Health Authority,” he said.

Dionne said his message to the community is to work together, and help slow down the impact.

Dionne, who also acknowledged his personal search to bring a new big business to the city, which could also potentially contribute a large amount to the cause, hinted to paNOW an announcement was coming in the next two to three weeks.

nigel.maxwell@jpbg.ca

On Twitter: @nigelmaxwell

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