Prince Albert city council voted on April 20 to set aside nearly $6 million in building permit revenue from the Victoria Hospital redevelopment, creating a new reserve meant to help cover the city’s future share of fit-up costs tied to the expanded facility.
Council approved the creation of a Hospital Fit-up Reserve during its regular meeting last Monday and directed that $5,952,191.56 in building permit fees collected in 2025 from the project be placed into that fund. The money comes from permit fees charged on construction on the new multi-storey acute care tower and renovations at Victoria Hospital.
Municipal leaders said the move does not mean the city is paying for construction of the hospital itself. The province is covering the capital cost of the project. What remains under discussion is the local contribution toward furnishings, fixtures, and equipment needed inside the expanded hospital once construction is complete.
The report before council said the expanded hospital will increase the number of beds, include a larger emergency department and enhanced medical services such as an MRI. The city said the reserve is meant to ensure permit fee revenue from the project is kept aside and available for Hospital fit-up costs rather than using it as a regular building permit revenue.
The decision builds on a 2024 letter of understanding between the city and SaskBuilds and Procurement. That agreement said the city would track development and permit fees connected to the Victoria Hospital project and that SaskBuilds would recognize that value as Prince Albert’s contribution toward furnishings, fixtures and equipment.
Still, the issue drew questions from councillors concerned about why the city should be expected to help pay at all.
Coun. Tony Head said residents have asked why a municipality that collects taxes for roads, water, sewer, and garbage should be on the hook for hospital-related costs, particularly for a regional facility used by people from a much wider area.
“It’s going to be a regional hospital, so everybody’s going to be using it,” Head asked. “I’ve been asked, Why is the city on the hook for this?”
Mayor Bill Powalinsky said the general understanding has been that the Boreal Healthcare Foundation would raise part of the required local share while Prince Albert and surrounding municipalities would also be expected to contribute. He added that the city is still seeking more clarity from the Saskatchewan Health Authority about what those fit-up costs will include and whether the request will be final.
City manager Craig Guidinger said the reserve is the responsible way to protect the money year over year while those negotiations continue. He told council that community contributions toward hospital equipment and furniture are not set out in law but have been common practice in Saskatchewan for decades.
Coun. Daniel Brown also questioned how much the city may eventually be asked to contribute and whether those costs would be spread out over multiple years or all at once.
“On behalf of all the residents. I wish you luck keeping it as low as possible,” Brown Said.
Coun. Blake Edwards, who brought forward the motion, said he supported the reserve not because he necessarily agreed the city should have to pay for fit-up costs, but because the city already has the money in hand and should not spend it elsewhere while negotiations remain unresolved.
“We have that money that we need to protect,” Edwards said. “When the negotiations go one way or the other, we have it. This is the smart way to do business.”
The amended motion, which also requires council approval before any money can be spent from the reserve, passed unanimously.
arjun.pillai@paherald.sk.ca
