Brampton city council ratifies 1% tax levy to help pay for new hospital and cancer centre

Contribution of $250 million split between city and William Osler Health System is required by province

Thestar.com
April 14, 2022
Graeme Frisque

Brampton taxpayers are going to have to adjust their budgets to cover a one per cent tax hike after council ratified a hospital levy to help pay for the city’s share of a new hospital and cancer centre.

At its March 30 committee meeting, council voted to impose a one per cent tax levy and that decision was ratified during its April 6 regular meeting.

All funds raised through the levy will be dedicated to funding the $125-million local share required by the province for the expansion of the Peel Memorial Urgent Care Centre site into a second full-service hospital, as well as a new dedicated cancer treatment centre on the Brampton Civic Hospital campus.

According the William Osler Health System, which oversees hospitals in Brampton and Etobicoke, the new hospital will cost an estimated $700 million. The tab for the new cancer treatment centre is approximately $365 million for a total of just under $1.1 billion.

While the provincial government will pay most of that tab, a local contribution of $250 million split between the city and Osler is required.

“The estimated local share required for these projects is $250 million. Osler is requesting that the City fund 50 per cent of the estimated local share, currently estimated to be $125 million,” read a release from the city.

The city estimates an average increase of $23.29 per year on residential tax bills. Residents will see that increase on their next bill coming in June.

“At a Tele Town Hall last year, over 70 per cent of residents polled by the City indicated they were in support of a levy to help fund a new full-service hospital in Brampton. Our community has not received its fair share of health care funding in the past, and local hospital overcrowding has only been exacerbated by the COVID-19 pandemic,” said Deputy Mayor and Wards 7 and 8 Coun. Pat Fortini in the city’s release.

“This is a historic time for health care in Brampton. City Council’s commitment to support 50 per cent of the current estimated local share for hospital redevelopment will help to ensure Osler has the resources to build the infrastructure this community needs and deserves,” added Osler chair Geoffrey Ritchie.

Council originally approved the 2022 budget without a hospital tax levy, hoping instead that the Region of Peel might help foot the bill. While Brampton has issued a request at regional council, no decision in that regard is forthcoming.

The budget included $62.5 million transferred from capital reserves to cover half of the city’s portion of the local share, but uncertainty over regional help prompted council to implement the levy to ensure the city will be able to cover the remaining $62.5 million required for the projects.

Brampton is in desperate need of a second hospital after years of chronic overcrowding at Brampton Civic. In 2019, council declared a health care emergency, which was only been compounded by the COVID-19 pandemic.

The Ontario Government announced funding for the new hospital in March 2021, and construction is set to begin in 2023. The new hospital is expected to be completed sometime in 2027. No timeline for the cancer centre has been provided, but the province confirmed its commitment to build it earlier this month.

“Brampton is one of Canada’s fastest-growing communities, and as a well-run City, we are addressing the health care emergency in Brampton and taking steps to address our future health care needs,” said interim chief administrative officer Paul Morrison.