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New finance model needed to build B.C. health care projects, local politicians say

UBCM delegates ask Victoria to acknowledge relying on civic property taxes to build hospitals is unsustainable
Royal Columbian Hospital construction
Construction of a new tower at the Royal Columbian Hospital in New Westminster is on pace to be completed in 2025.

Civic politicians from across the province have called on Victoria to work with regional hospital districts and the Union of B.C. Municipalities (UBCM) to review the cost-sharing model for funding health care capital projects.

The resolution was passed Sept. 18 by delegates at UBCM's annual general meeting in Vancouver.

The vote also asked that Victoria acknowledge that the reliance on property taxes to fund areas of provincial health care responsibility is inconsistent and unsustainable for B.C. local governments.

It said local governments must provide the 40 per cent "voluntary" contribution towards the provincial government’s health care capital costs, including any cost overruns, or risk losing those projects to other areas of the province.

The UBCM executive brought forward the special resolution to highlight and provoke action by the provincial government on the long-standing issue of the expected contributions from local governments to provincial health care capital projects. 

Significant cost increases

Resolution notes said most districts acknowledge that while they theoretically can (and some do) refuse to approve the full 40 per cent of project requests from health authorities, they feel that it is risky to do so as the project could be placed at risk and the local community could lose needed investments. 

B.C. districts have reported significant cost increases in the funding requests brought forward by health authorities for health care capital expenditures. This has resulted in substantial increases to district budgets and to the regional district taxpayers.

The lone voice speaking against the resolution was Starwood Mayor David Wick who said what needed is an amendment to the provincial Hospital District Act.

“That’s what we’ve been trying to get for years,” Wick said. “Without an amendment to the Act, I don’t know how you’re going to do this."

The convention runs until Sept. 20.

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