Ottawa should tackle part of its $41-million operating deficit by charging hospitals and universities more for city services, Coun. Michael Qaqish argues.

The Gloucester-South Nepean representative is calling for a steep increase to the so-called “heads and beds” levy, which applies to colleges and universities, hospitals and jails. All such institutions are currently exempt from paying property taxes. Instead, provincial law allows for a per-head or per-bed payment to municipalities.

The amount of the current levy — which has remained unchanged since 1987 — is set at a maximum of $75 per full-time student, hospital bed or resident in a correctional facility.

An increase is necessary to properly reflect the city services these institutions have and continue to benefit from, Qaqish says, adding it couldn’t come sooner, as the city is facing a $41-million deficit this year.

“It will make a big difference for us at budget time,” he said Tuesday.

By Qaqish’s math, an increase to the levy tied to inflation since 1987 would see the amount rise by 84 per cent to $138.37 per head and bed.

In real dollars, that would have meant $11.7 million this year, as opposed to the $6.4 million the city actually collected.