The bill for the redevelopment of Cariboo Memorial Hospital in Williams Lake is going down for the local hospital district.
Originally, the Cariboo Chilcotin Regional Hospital District (CCRHD) would’ve paid 40 percent of the total costs, but will now be reduced to 30 based on a new agreement with the province.
The money saved by the CCRHD will look to help with other work to be done down the road.
“It will mean that we’re better positioned when these other projects come on board to get them done, and hopefully defray the amount of what we have to borrow,” says Al Richmond, Chairman of the Cariboo Chilcotin Regional Hospital District.
“but it has made it so we don’t have to borrow to do this project, which is an important component, given our current economic situation and the challenges our taxpayers face.”
In a release from the Cariboo Regional District, the cost sharing reduction would save the CCRHD $36.65 million, bringing their costs to a maximum of $109.96 million out of the total $366.5 million.
They say that debt won’t be needed for the project, but will now use around $52.3 million in their capital reserves to help finance a substantial portion of project costs.
Remaining costs will come from an increase in property tax rates of five dollars per $100,000 assessed value, for a total rate of $75 per $100,000 assessed property value.
The CRD says that the increase would generate $82.96 million in revenue over the next six years, which would result in a net increase of $17 to $20 for the average homeowner excluding changes to assessed values.