Town to donate up to $170 million to new Oakville hospital

Final amount to be determined in 2011 following completion of RFP process

Oakville, April 21, 2010 — For immediate release
After four months of extensive public consultation and debate, Oakville Council resolved last night to donate a maximum of $170 million to Halton Healthcare Services’ (HHS) local share plan to fund the new Oakville hospital, and also noted that a further $30 million donation could be considered at the discretion of a future Council if needed at the time of completion. This was a reduction from the original HHS request for up to $230 million, including contingency funding.

“Our public consultation on this issue has resulted in a better solution than where we started four months ago,” Mayor Burton said. “The town’s commitment to donate a maximum of $170 million will ensure this community gets the hospital it needs and wants at a cost it can afford.”

The town will donate up to $130 million at the time of substantial completion of the new hospital, expected to be in 2015, and up to $40 million to fund life cycle costs over the 30 years following. The decision by a future Council to consider contributing a further $30 million would also take place when the project is completed in 2015.

“Our thanks go out to Oakville Council for their diligence and dedication to finding a contribution level that works for all parties,” said John Oliver, president and CEO of HHS. “We are committed to continuing to work with the town and Oakville residents to provide this community with a hospital that can meet its needs now and into the future.”

Public consultation conducted by the town over the last four months including online, written and telephone surveys, as well as hundreds of emails and phone calls to councillors, revealed that Oakville residents strongly supported the need for a new hospital, but were concerned about the impact a $200 million financial contribution by the town could have on their property taxes.

Council approved a restructured donation of up to $170 million that will reduce the amount that needs to be borrowed by the town to finance its donation. The $40 million donation toward life cycle costs will be paid over 30 years and will be supported by non-tax revenues and financial reserves. The $130 million donation that must be paid in 2015 would be financed by both tax and non-tax revenues.

“Council has made it very clear to staff that we want the town to consider every opportunity to fund this donation from non-tax revenues, including looking at using the proceeds from the sale of town assets such as the recent sale of Blink Communications,” Mayor Burton noted. “We know today that the full $130 million donation could be funded for less than a one per cent annual tax levy but we want to see if we can reduce this even further.”

Staff will report to Council in 2011 at the conclusion of the hospital RFP process with the exact amount of the proposed donation and the opportunities it has identified to fund the donation through non-tax revenues. Actual payments to the hospital are scheduled to begin in 2015 once the hospital is built and operational.

To learn more about the hospital funding decision, visit the funding a new hospital for Oakville web page.

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For more information:
Jane Courtemanche
Director of Strategy, Policy and Communications
Town of Oakville
905-845-6601, ext. 3038
jcourtemanche@oakville.ca


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Town to donate up to $170 million to new Oakville hospital