Hospital Reserve Fund

The County of Brant is committed to supporting the future redevelopment of the Brant Community Healthcare System (BCHS) through a long-term financial strategy. A dedicated Hospital Reserve Fund has been created to help meet the County’s portion of the local contribution required for a new hospital.

Council’s Commitment

At its meeting on March 28, 2023, County of Brant Council approved the creation of the New Hospital Reserve Fund to begin building the County’s contribution. Council approved a 1% net levy increase in 2025, specifically dedicated to this reserve.

The County recognizes that building a new hospital is a long-term project, and this approach allows us to responsibly plan for the future while minimizing the financial burden on current and future taxpayers.

Financial Approach

Initial Contribution (2023): $180,000 transferred from the Community Grants Budget
2025 Budget Allocation: $720,000 through the 1% levy increase
Projected Growth: Contributions are expected to increase annually, based on municipal growth and budget expansion

This model allows the County to grow its contribution steadily over the next 15 years, while retaining flexibility to adjust based on project needs, timelines, and potential cost escalations.

Why This Approach?

Fairness Across Time: Residents contributing now may not fully benefit from the hospital for years. This model spreads contributions over time, aligning with when the community will benefit most.
Smoother Tax Increases: Smaller, annual increases reduce the risk of large tax hikes later.
Flexibility for Future Councils: This model can be accelerated, extended, or adjusted to include other funding tools such as debt financing if necessary.
Preparedness: This reserve helps the County prepare for a major infrastructure investment, while preserving funding for other services and infrastructure needs.

Local Share – What We Know

While the exact local share required from the County is still unknown, the current estimate for the total local contribution to the new hospital project is $425 million. This includes:

10% of construction and ancillary costs

100% of furniture and equipment costs

This local share is expected to be funded by a combination of:

Local fundraising efforts
Municipal contributions (including the County of Brant)
Potential contributions from the Federal Government or other stakeholders

It’s important to note that hospital projects are not eligible for Development Charges, and any debt-financing by the County may require special approvals.

Next Steps

The County will continue to monitor project updates from BCHS and adjust its financial strategy as needed. The reserve currently represents a contribution in principle, not a firm commitment, allowing flexibility as more information becomes available.