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City Government

Hospital Debenture Paid in Full by City Taxpayers in 2010


July 8, 2010 – The Final 2010 Tax Bill that is being sent to taxpayers next week is the last to include a taxpayer contribution for the Thunder Bay Regional Health Sciences Centre.

In the November 1997 election residents voted in favour of borrowing up to $25 million to support the building of a new acute care hospital. In March 2000, after considering many options, Council determined the best approach to finance the contribution would be through traditional debenture borrowing with a repayment period of 10 years.

“Thunder Bay taxpayers made a great decision for the future of the city when they voted to support the Thunder Bay Regional Health Sciences Centre,” said Mayor Lynn Peterson. “In addition to providing acute care, the centre has helped Lakehead University to bring us the first medical school in Canada in 30 years and contributed to a thriving research and innovation sector.”

“The debenture has turned out to be one of the best investments our community - and the region through its contributions - has ever made, as the return speaks for itself,” said Angele Brunelle, Chair of the TBRHSC Board of Directors. “Together, we made an important decision to ensure acute healthcare for ourselves for generations to come. Thanks to everyone who made this possible.”

The City’s last payment of the hospital debenture will be made on July 10, 2010.

"The 2010 budget included approximately $3.5 million repayment on the hospital debenture,” said Carol Busch, City Treasurer and General Manager – Finance & Corporate Services. “Given that on July 10th, 2010, the last payment will be made, there will not be a requirement to include this expenditure in the 2011 operating budget."

“Residents, however, cannot necessarily expect to see a direct correlation between the budget reduction attributed to the hospital debt retirement and a change in their tax bill. There will be the annual increases in 2011 operating costs for the City. There will also be assessment changes with both increases from new assessment and decreases from assessment appeals that impact the City's tax rates."

“Residents can take comfort in knowing that, whatever tax change they experience in 2011 on their property, the change will be 2.2 % less than it would otherwise have been if the City was still required to make the annual repayment."

The first installment of the 2010 Final Tax Bill is due on Monday, Aug. 16, and the second installment is due on Tuesday, Oct. 5. Taxpayers who do not receive their bill are advised to contact the Revenue Division in City Hall or call 625-2255 to request a copy.

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Contact:
Tim Commisso, City Manager, 625-2224
Carol Busch, City Treasurer and General Manager – Finance & Corporate Services, 625-2242