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Niagara Falls Council to Consider $30 Million Contribution to New Hospital

Monday, 10 July 2023 15:24

By Noelle Sinclair

One option could see a special capital levy on tax bills spread out over 25 years

Niagara Falls City Council is being asked to approve a $30 - 32 million dollar financial contribution to Niagara Health System (NHS) at tomorrow’s City Council meeting, which includes an additional $10 million from what was first projected.

The money represents Niagara Falls' contribution to the new South Niagara Hospital located at the corner of Biggar and Montrose Road in the city’s south end.

Although originally donated 30 acres of land at the location, in 2017 the city expended $11 million for an extra 20 acres of adjacent land.  In addition,  $22 million was pledged and placed in a South Niagara Hospital Reserve Fund. However, in December the Niagara Health System (NHS) asked for an additional $8-to-$10 million, as the 20 acres of land would not be considered by the MInistry of Health as part of the local share contribution because it was not a dollar or money contribution.

The provincial contribution is $900 million with the remaining balance coming from local sources.

NHS breaks the local share down as $35-to-45 million from the Niagara Region, the Niagara Health Foundation and donations will contribute $35-to-45 million, Hospital Own Funds (parking and retail) represent $80-to-90 million and Municipal Contributions finish out the balance at between $40-to-50 million dollars.  

In addition to Niagara Falls, the municipalities requested to contribute funding are Fort Erie, Port Colborne, Welland and Pelham.  Fort Erie has committed $3 million to date.

Council is being presented with a number of options on how to finance the $32 million to be considered in conjunction with their 2024 budget. One option would see a 1.5% "Special Capital Levy (Hospital) on tax bills, which would be spread out over 25 years.  According to city staff, The St. Catharines hospital, and more recently Brampton’s, were funded by similar levies.

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