Donors shrink health centre mortgage

CHARLOTTE SQUIRE
Last updated 12:00 30/08/2014

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Community fundraising has helped the Golden Bay Integrated Family Health Centre achieve a healthy financial position.

The initial mortgage on the Takaka facility has dropped by $800,000 thanks to community fundraising, asset sales, and a construction budget that builders stuck to.

Initially budgeters thought the $9 million facility would need a mortgage of $4.7m. That figure has dropped to $3.9m.

"It's a tribute to the community that we have achieved such a great outcome," said Golden Bay Community Health Te Hauora O Mohua Trust treasurer Kim Johnston.

"All of the fantastic fundraising efforts and staying on budget have been major contributors to a great financial outcome for this wonderful asset."

The value of the existing hospital building, donated to the project by the Nelson Marlborough District Health Board, is shown in the books as an interest-free loan of $778,000.

Rent paid by Nelson Bays Primary Health covers interest and loan repayments, which currently cost around $350,000 a year.

Johnston said from 2017 the trust would have to start paying back to the DHB bridging finance of $1.5m and a ground rental.

The trust currently budgets $140,000 a year to cover maintenance and other costs and to save for 10-year and 15-year upgrades such as painting, carpets, boilers and airconditioning.

Originally they expected the building additions and refurbishment would cost $8.46m, but the trust still expects the final figure to come in below that cost.

"That's a credit to all of the people who worked on the construction and managed the project," said Johnston.

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- The Nelson Mail

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