Tax reimbursement freeze hits OMNI hard
Renovations called off at Almonte, Frost, Village Green
Friday April 23, 2004 - Natalie Miller
OMNI is being hit hard by a tax reimbursement freeze, amounting to the loss of $1.2 million for the long-term care provider.

Fraser Wilson, chief executive officer, says the company’s revenue will plummet by $333,000 in 2003 and $838,000 in 2004. As a result, OMNI is calling off renovations at Village Green in Selby, Frost Manor in Lindsay and Almonte Country Haven in Almonte.

“Our primary responsibility at this time is to prudently manage our resources and ensure that we sustain our business to ensure that we can continue to serve our residents and our people,” said Fraser in a memo to staff.

Almonte, Frost and Village Green were supposed to receive $200,000 each this year for “significant improvements” to the homes. Fraser said the planned improvements were honourable and in tune with OMNI’s mission. But they will be postponed. “In order to absorb the loss in revenue, we will be withdrawing all capital improvements, with the exception of absolute necessities.”

The loss of revenue is a result of the government’s decision to decrease the reimbursement homes receive for property taxes, Fraser says. Meaning, while overall property taxes have increased with the addition of 20,000 new long-term care beds, the pool of funding isn't being increased. As a result, that decreases the 90 per cent reimbursement homes have received since 1993, Fraser says. “This change in policy is taking long-term care back two decades - a time of bare minimums, poor physical plants and depressed morale.”

“We cannot deal with the change to the property taxes without consequence to our homes. We cannot reasonable absorb $1.2 million without jeopardizing the spirits of our people, the environments for our residents and the levels of service that we have become renowned for.”

For Fraser’s message, click here.