RDOS votes to dip into reserves for Interior Health increase

Photo: Contributed

The Regional District of Okanagan Similkameen has opted not to increase taxes on residents to pay for a significant jump in Interior Health funding requests, voting instead to dip into reserves to cover the costs. 

Interior Health is asking for $3.9 million from the board in the 2020/21 fiscal year, much higher than the average $2.3 million requested over the past five years.

Much of the ask is earmarked for a $2 million CT scanner for the Penticton Regional Hospital. 

At Thursday's board meeting, members voted to find the extra cash from the Regional Hospital Board's reserve funds rather than raising taxes. The fund currently hovers at around $15 million. 

That means the average yearly tax for the services paid by a residential household will decrease slightly to approximately $112 from $113. 

Had the board decided to pay for the increased Interior Health ask through taxes, that number would have jumped to about $139.

Board members agreed that this is a good use for the reserve funds, and district staff pointed out the large request from Interior Health is "a blip" unlikely to be repeated in future years. 

The final full budget has yet to be approved and adopted. The RDOS has until March 31 to do so.