The Sunshine Coast Regional Hospital District board has adopted a $2.6-million budget for 2013, up 13 per cent from last year.
The budget, approved during the board's March 28 meeting, includes $400,000 for added upgrades at St. Mary's Hospital, but the new spending and on-going debt repayment will not increase this year's tax requisition, officials said.
"We have a significant loan out for the expansion of the hospital, and it's something we've been taxing for for several years, but we're not going to tax for it this year," said chair Donna Shugar, who was re-elected to the position for the second year.
The budget includes $1.3 million for debt repayment and an annual $240,000 allocation for minor capital equipment purchases.
The $400,000 in new project spending includes $320,000 for roof replacements at Totem Lodge and the hospital laundry and $80,000 for elevator upgrades. The local government contribution represents 40 per cent of the project cost, with Vancouver Coastal Health (VCH) covering 60 per cent under its standard funding formula.
The new money will be drawn from the hospital district's reserves, said John France, Sunshine Coast Regional District (SCRD) chief administrative officer.
"The good news is that the tax requisition for this year remains essentially unchanged - it's up $5,000 over last year," France said.
This year's drawdown reduces the hospital district reserves to $208,000, SCRD treasurer Tina Perreault reported at the meeting. That figure, however, will almost double by the end of 2014 as $190,000 is budgeted this year for contribution to the general reserves, which will be recovered and paid from 2014 tax funds.
The board is also in discussions with VCH officials regarding $2.4 million in additional hospital project costs for renovations to the mental health unit ($1.5 million) and seismic upgrades ($900,000).
"The seismic upgrade is in the existing building that's going to be renovated, so now's the time to do that work," Shugar said.
The board has asked for more information on the pending projects.
The new funding puts the local government contribution for the St. Mary's Hospital expansion at $16.3 million. While the project meant the district had to borrow $14.7 million in 2007, the investment has been well worth it, Shugar said.
"We're very lucky," she said. "My feeling is if we were not a ferry-dependent community we would not have the luxury of having this fabulous hospital serving the region."
Started in 2010, the St. Mary's expansion project is expected to be fully complete next year, almost doubling the facility's size. The new 5,400-square-metre hospital wing opened late last month.
