Council here has authorized staff to work out an agreement for the municipality to assist with $1.5 million in financing toward the construction of the Minto Rural Health Care Centre.
Staff was directed at the April 7 meeting to enter into discussions with the North Wellington Health Care board of directors to finalize arrangements for the plan, which has been under discussion for several years.
The town will provide a loan, leveraging the County of Wellington’s Triple-A credit rating, to assist with the construction of the $3-million facility to be located on the Palmerston Hospital grounds.
“The basis of this transaction would be that the Town of Minto could borrow money at favourable rates and NWHC would flow money to the municipality, which would match the debt repayment schedule,” states a written report to council from treasurer Gordon Duff.
“Staff has researched this request with our solicitors and financing agents and it is a legitimate use of town finances.
“So there should be no cash flow implementations,” Duff told council.
One drawback, Duff noted, is that the funds would be counted against the municipality’s annual debt repayment limit.
“But we hope never to get near our annual debt repayment limit, which is roughly eleven-and-a-half million dollars over 20 years,” he explained.
Councillor David Turton asked Duff if he had any concerns about the plan.
“There’s always a slight risk,” Duff responded. However, he added he has no serious concerns “in view of the people that are on the (hospital) board [and] their experience with handling this kind of money.
“We have direct representation on the board. It’s something that fits in with our strategic plan.”
Turton asked Duff where NWHC would go for the money if the town balked.
“I think it would be a real obstacle for them,” Duff replied.
Turton endorsed moving forward with the plan.
“We need it. This is something that’s been proven time and time again – we need a facility like this to attract doctors,” Turton said.
“This has been in the works a long time. I think it’s important that we support it,” agreed councillor Ron Faulkner.
Mayor George Bridge pointed out the plan had been approved in principal by a previous council and the health care corporation has been “working on that basis to get it funded.
“It’s a no-brainer. We’ve got to get it done and it’s going to be of great economic value to the community,” said Bridge.
NWHC president and CEO Jerome Quenneville told the Advertiser in a telephone interview the corporation and the Palmerston and District Hospital Foundation will also be providing funds for the project, but the financing arrangement is critical.
“We’re looking to pay back the loan being borrowed (from) the municipality through rentals and that’s really where the municipal component comes in and really helps us to match that up with the rental revenue we’ll be having over the next number of years.”
Quenneville said NWHC hopes to break ground on the project before the end of the month.
