Kamloops taxpayers spared big cancer centre tax bill

Millions in reserves are sparing Kamloops area homeowners from a steep tax hike to fund a long-awaited cancer centre.

The Thompson Regional Hospital District is pulling $12.6 million out of savings accounts to pay for a portion of the cancer centre, saving taxpayers millions in interest costs.

According to a staff report, it allows the hospital district to cut a planned $30 million loan in half. When accounting for interest over 25 years, it saves taxpayers $28.6 million.

“If we continue to put everything to debt, in 20 years we end up with a massive portion of our budget that’s entirely related to debt that was incurred years ago. Then there’s no appetite for new projects because residents simply can’t afford it,” hospital district finance manager Austin Potts said during a March 26 meeting.

The hospital district is responsible for $45 million of the $386 million Kamloops Cancer Centre, previously planning to fund that with $30 million in loans.

Kamloops homeowners make up the largest single share of taxpayers to the hospital district. The average homeowner, with a home assessed at $676,519, will pay $211 to the hospital district this year.

Steady and predictable tax increases allowed the hospital district to avoid dramatic hikes in a given year, with millions set aside in reserves for when major health care projects start, according to board chair and Kamloops city councillor Mike O’Reilly.

“Essentially, we are ready for ready for large capital projects when the (health) ministry and Interior Health approve them,” he said.

“For context, some other regional hospital districts wait until the ministry gives the green light. One major hospital district, similar size to ours, they are looking for a 28 per cent tax increase this year, then going back to two per cent, seven per cent — they’re all over the map.”

The new Kamloops Cancer Centre is expected to take its first patients in 2028.