HomeMy WebLinkAboutFSD-030-26Staff Report
\If this information is required in an alternate accessible format, please contact the Accessibility
Coordinator at 905-623-3379 ext. 2131.
Report To: Special Council
Date of Meeting: August 10, 2026 Report Number: FSD-030-26
Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology
Reviewed By: Mary-Anne Dempster, CAO
By-law Number: Resolution Number:
File Number:
Report Subject: Bowmanville Hospital Foundation Update
Recommendations:
1.That Report FSD-030-26, and any related delegations or communication items, be
received;
2.That Council confirms its contribution of $7,500,000 to the Bowmanville Hospital
Foundation, with the timing of payments to be determined at the discretion of the
Deputy CAO/Treasurer; and
3.That all interested parties listed in Report FSD-030-26, be advised of Council’s
decision.
C-215-26
Municipality of Clarington Page 2
Report FSD-030-26
Report Overview
1. Background
Original Contribution Amount
1.1 At its meeting of February 25, 2019, Council approved $5.0 million from the Strategic
Capital Reserve Fund to be committed to the Bowmanville Hospital Foundation for the
Bowmanville Hospital expansion to be paid upon the completion of the expansion.
1.2 Subsequent to that date, the scope of the work at the hospital changed from an
expansion project to a redevelopment and the hospital foundation requested additional
funds to meet the required “local share” of the capital project.
1.3 The Ministry of Health’s Hospital Capital Cost Share Guide shows that the Ministry will
fund up to 90 per cent of eligible project costs, and 100 per cent of eligible planning,
design, financing and transaction costs. The remaining costs need to be funded by the
Hospital, typically through fundraising by their Foundation.
Updated Contribution Amount
1.4 The 2024-2027 Budget: A Plan For Growth highlighted (page 133) that Lakeridge Health
(Bowmanville Foundation) was requesting $7,500,000 to the Bowmanville Hospital
($3,750,000 for 2026 and 2027) to be funded from the Strategic Capital Reserve Fund.
This was the first year of the multi-year budget and first year of changes to budget
regulations.
1.5 Both the 2025 and 2026 Budget Updates also illustrated the reserve fund forecasted
withdraws for the hospital in 2026 and 2027.
1.6 In the Fall of 2025, staff from the Bowmanville Hospital Foundation met with Municipal
staff to discuss an update on the redevelopment project and timing of the Municipality’s
contribution to the local portion.
Municipality of Clarington Page 3
Report FSD-030-26
1.7 A payment plan was discussed: half would be disbursed to the Foundation in the first
quarter of the calendar year following tendering of the design and construction of the
hospital redevelopment. This was completed in the fall of 2025 which meant that the first
disbursement was due by March 31, 2026.
1.8 The second payment would be disbursed 12 months following the release of the first
installment of the funds. This would be March 31, 2027.
1.9 In January 2026, Foundation staff inquired if the payments could be expedited. Finance
Staff worked with the Municipality’s investment advisors to complete investment
transactions to maximize returns and reduce risk to the portfolio in such a way that the
entire contribution was feasible.
1.10 The Foundation received payment on January 15 and April 1, 2026.
2. Payment Timing
2.1 The timing of payments for capital and operating costs is typically an operational
decision at the discretion of the Treasurer. They are often based on the timing of
invoices, milestones or agreements.
2.2 Given that Council approved $5 million in 2019, and an additional $2.5 million in 2024,
staff believed that the $7.5 million was approved with the payment timing being flexible
and at the discretion of the Treasurer.
2.3 Grants to external parties are normally made throughout the year based on need, cash
flow availability, and project completion (if tied directly). This contribution differs from
those other grants as this is a contribution towards a capital project that is outside of our
control and was planned to be a multi-year contribution to ease cash flow risk. The
opportunity to provide the whole amount presented itself with little risk to the
Municipality.
2.4 Out of an abundance of caution, staff are seeking confirmation of Council’s intent on
timing. If Council wishes to maintain the split between 2026 and 2027, staff will work
with the Foundation to return funds and then will reissue in 2027.
3. Financial Considerations
3.1 The entire contribution is financed from the Strategic Capital Reserve Fund. The timing
of the payments does not impact any other project as this reserve fund was scoped in
its use.
3.2 The transaction crystalized gains in bond holdings and allowed the Municipality to lock
in additional investment income of approximately $115,000 versus allowing existing
GICs to mature and re-invest $3.75million for one year.
Municipality of Clarington Page 4
Report FSD-030-26
In January, GIC rates for 1-year were approximately 2.45% which is approximately
$91,875 in interest; the Municipality did not lose interest as a result of these transactions
as the transaction would not have been contemplated otherwise.
3.3 If Council were not to approve the recommendation, Staff will work with the Foundation
to recover the payment and reissue in 2027.
4. Strategic Plan
4.1 The contribution to the Bowmanville Hospital Foundation meets priority C.2.1 “Support
efforts to improve access to medical practitioners and health care services.” The
contribution helps the Foundation reach its required “local share” of the Bowmanville
Hospital Redevelopment.
5. Climate Change
Not Applicable.
6. Concurrence
Not Applicable.
7. Conclusion
It is respectfully recommended that Council confirm that the second payment in April
2026 to the Bowmanville Hospital Foundation met its intention to provide funding to the
Foundation.
Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, Finance and Technology, 905-
623-3379 ext.2602 or tpinn@clarington.net.
Attachments:
Not Applicable
Interested Parties:
The following interested parties will be notified of Council's decision:
Bowmanville Hospital Foundation