A delegation from the St. Joseph's Hospital Foundation was before city council Monday night looking for a little relief.
Chairman John Billesberger and vice-chairwoman Bridget Bittman made a presentation at the meeting where they asked council to forgive the $37,720 in property taxes the foundation pays on the Primary Health Care Centre at St. Joseph's Hospital.
Both feel the City's decision to tax the facility is unfair and creates an unnecessary financial burden on the foundation, which they added, is a charity dedicated to maximizing the potential of St. Joseph's Hospital for the residents of Estevan and area.
The facility, which opened roughly three years ago, was initially intended to be a home for the city's doctors and as a tool to keep more physicians in Estevan. Bittman noted that at present, Dr. Khalid Sheik is the only doctor using the clinic. That has forced them to rent out two spaces in the clinic to local businesses to help them pay the $1.6 million loan the foundation is carrying on the clinic.
"With $37,000 in property taxes, we have $37,000 less in income to buy medical equipment," Billesberger told council. "We have to sell an awful lot of raffle tickets to make up $37,000 in taxes. We need money and $37,000 is a lot of money, but to us it's a real big sum of money. The property tax you charge means we have to raise that much more to buy medical equipment.
"As an example, on Friday there was a scope used by the surgeons that broke down. There was no money there (to purchase a new one) so the foundation kicked in $15,000, we bought it right away. We are sort of the backup because the Sun Country Health Region provides very little for capital equipment and medical equipment for the hospital."
Billesberger pointed out that the foundation is a charity similar to other worthwhile organizations such as the Elks or Legion clubs, both of which do not pay property taxes to the City.
"They are not charged property tax, why should we be?"
Bittman said that as an extension of the hospital, the foundation did not anticipate paying taxes on the primary care centre as hospitals do not pay taxes. She added that hospitals in Regina and Saskatoon do not pay taxes on the space rented to physicians and other medical services.
"As a result, it states in the lease with our present tenants they would not be responsible for City taxes," she said. "Therefore it's really important to note that any taxes paid by the foundation would come directly from the community and fundraising efforts."
The sticking point from the City's perspective appeared to be twofold.
Mayor Gary St. Onge said if either the Elks or Legion allowed a private business to open in their premises, they would be charged property tax as the foundation is.
He also noted there is an issue of fairness the City has to consider since the two medical clinics in Estevan both pay property taxes.
"There are two other clinics in the city who pay taxes who run it as a business," said St. Onge. "(The foundation is running the clinic) to some extent as a business. The people in there are businesses. I would think the foundation should be charging them enough in their leases to pay for the taxes, that's what you would normally do."
St. Onge said he recognizes that the optics of charging the foundation property taxes does not reflect well on the City, but they have to consider the big picture when making their decision.
"We have to look at what repercussions it has throughout the city," he said. "That happens every time we forgive taxes, we hear back from people who are in a similar business who say, 'why should they get a break?'
"At least one of the businesses is not necessarily considered a medical business by a lot of people in the medical community. What would happen if they had an oil company rent one of those offices? It could conceivably happen."
St. Onge said despite their concerns, council will reconsider the City's stance.
Councillor Roy Ludwig, who was a member of the committee that built the clinic, was among two councillors who openly stated they would like to take another look at the matter.
"We have more soul-searching to and fact-finding to do here," Ludwig said to Bittman and Billesberger. "It is important that we relook at this situation and get back to you in a timely fashion."
Neither Ludwig nor St. Onge indicated when council plans to take another look at the issue.
