Long-term care facilities in need of provincial support

The City of North Bay has decided to move forward with a request from Cassellholme to borrow one million dollars on their behalf in order to give the facility some much needed repairs and renovations (capital upgrades).

Councillor Mendicino said many of the upgrades are being necessitated through provincial change in legislation and unfortunately Cassellholme cannot borrow money on its own for capital expenditures.

“Initially it would have been a onetime one million dollar loan, which means that the city would have needed to take an $820,000 hit, which means that programs throughout the city would need to be cancelled or cut back.

However, instead of $820,000 for one year we’re now looking at just over $100,000 per year over the next ten years. Again, the burden of this cost will be carried by the city,” Mendicino said.

He said he doesn’t expect any impact on the 2007 budget, but moving forward to 2008 the city will have to remove over 100,000 dollars from capital programs.

The funding itself is expected to be in place, and renovations will start in the latter part of 2007.
The decision has bought Cassellholme Administration and Board some time to consider funding options that could reduce the municipal capital levy requirements for future years.

“We have to start lobbying hard to change the way this system works. The municipalities cannot continually be on the hook to fund capital expenditures like this for long-term care facilities.
This million dollars is just a start; if Cassellholme continues to operate out of the same building moving forward, that building will require extensive renovations and municipalities just can’t handle that kind of debt (which could reach up to 15 million dollars or more),” Mendicino said.

With an election looming large Mendicino said he is hoping the province will start to take responsibility for long-term care facilities for the elderly.

“I am hoping this is an issue that will be brought to the forefront,” he said.