Victoria, BC– The Capital Regional District (CRD) and the Capital Regional Hospital District (CRHD) Boards have approved their 2022 Financial Plans at the March 16 Special Board meetings.

The CRD, CRHD and Capital Region Housing Corporation (CRHC) financial plans combine to form a consolidated budget totaling $646 million. The combined operating portion ($374 million) will pay for a range of regional, sub-regional, and local services to over 432,000 people in the region. The combined capital portion targets $272 million in projects which will generate an estimated 1,560 new jobs in the region. An overview is available in the 2022 Consolidated Budget Overview.

In October 2021, the provisional budget was approved and presented to the public for feedback. Since that time the budget has been refined to include Climate Action Strategy initiatives which received bylaw adoption following the provisional budget approval. The pillars of this strategy include making climate-focused decisions, supporting the region in its path towards low carbon communities, reducing emissions and accelerating energy efficiency in the corporate fleet and CRD infrastructure, protecting ecosystem health, and minimizing waste generation.

The Financial Plan impact is unique for each municipality, electoral area and First Nation as each participates in a different set of services. The impact to individuals is also unique and influenced by changes in assessed value. This year, assessment growth ranged from 14% to 35% across municipalities, electoral Areas and First Nation Communities. The regional average was 21.6%. The region continues to experience higher growth rates in suburban and rural areas compared to urban areas. The overall consolidated tax increase will be 2.7% for 2022. 

A key driver for the budget is the significant growth that the capital region has seen over the last few years. In 2021, there were $2 billion worth of building permits issued resulting in 4809 housing units, and the cost of a single family home increased by 24.6%. The population in our region has grown by 18% since 2011, with a 1.4% increase in the last year.

 Highlights of key operational initiatives and investments include:

• Since 2019, use of regional parks has increased by 20-25% annually. A service review of Regional Parks identified challenges in maintaining basic service delivery. Pressures on operating and maintenance to the regional parks and trails system have been steadily compounding over a number of years. The financial plan also reflects a new approach for land acquisition that would leverage borrowing capacity to purchase land that would otherwise be unattainable.
• In 2021, the CRD Board approved a renewed Climate Action Strategy that reflects board priorities and provides clarity on the role the CRD can play as a leader in climate action over the next five years. The final budget reflects a change in requisition for the climate action and adaptation service to advance implementation of key pillars of the plan, including work to support, endorse and encouraging active, public and zero-emission transportation options. For more information about the strategy, visit www.crd.bc.ca/climate.
• To increase operational capacity, corporate support services must undergo transformative change to futureproof their practices and processes and adjust to the level of change experienced by the rest of the organization. These areas include financial & asset management, human resources, occupational health & safety, digital communications, records management, and information technology services.

The capital portion of the financial plan pays for new and enhanced infrastructure, including renewal and replacement of existing structures. Highlights of key capital projects and investments include:

• Building and improving wastewater facilities is ongoing with the continuation of the Magic Lakes Estate Wastewater System Infrastructure Replacement Project on North Pender Island, the completion and commissioning of the Core Area Wastewater Treatment System and maintenance and upgrades undertaken at the Saanich Peninsula Treatment Plant.
• The Hartland Renewable Natural Gas Initiative will upgrade the biogas generated at Hartland Landfill to renewable natural gas for sale to Fortis BC. The project is expected to reduce the region’s greenhouse gas (GHG) emissions by approximately 264,000 tonnes of carbon dioxide equivalent over the 25-year project life.
• Construction on regional trails continue with the E&N Rail Trail and the Mayne Island Regional Trail which are significant multi-year projects. The next phase of the E&N Rail Trail will link between Esquimalt Road and the Galloping Goose Regional Trail by the Johnson Street Bridge, in the City of Victoria with construction expected to begin in 2022. The Mayne Island Regional Trail is a 2.3 km bike and pedestrian trail between Village Bay and Miners Bay village. Construction will continue on the first phase of the trail in 2022 which is expected to be completed in 2023.
• Renewing and improving drinking water infrastructure for the region’s urban centres and local service areas continues in 2022. Key projects include the design for replacement of the regional water supply UV system, procurement of equipment for Post Disaster Emergency Water Supply, replacement of the Juan du Fuca Waster Distribution Rocky Point Pump Station, and Sooke River Road Disinfection Facility Upgrades.
• The CRD Salt Spring Island Parks and Recreation Commission (PARC) is continuing the expansion of the Rainbow Road Aquatic Centre to include a permanent 1,500 square foot multipurpose room which will be available for a new or existing non-profit child care provider to occupy during the weekdays and open to community groups and recreation programs in the evenings and weekends.

For 2022, the CRHD major capital projects contribution is $14.7 million, minor capital projects is $3.8 million, and equipment is $3.0 million for a total of $21.4 million. Major projects planned for the CRHD in 2022 include several Urgent and Primary Care Centres in Greater Victoria and the Lady Minto Hospital emergency department. Demolition and remediation is also underway at the Oak Bay Lodge property while planning continues for future use of the site.

The 2022 Capital Regional Housing Corporation (CRHC) budget, approved in December 2021, includes $27.5 million in operating revenues and $70.3 million in capital expenditures. A key driver for the 2022 budget includes increased operating costs with the addition of 2 buildings including 109 units. By the end of 2022 the CRHC portfolio will include 52 buildings and 2,002 units. The CRDs direct investments in affordable housing are also managed through the CRHC and the Regional Housing Frist Program (RHFP). Some examples include:

• The CRD continues to invest in affordable housing with the Regional Housing First Program (RHFP) and through the Capital Regional Housing Corporation (CRHC). Some examples include 53 units expected get underway in late spring on the Michigan Square redevelopment, funded through CRHC, and 72 units which are underway at Victoria Cool Aid’s Cedar Grove development, funded through the RHFP.

For more details, please visit www.crd.bc.ca/budget.

Proud to be recognized as one of BC’s Top Employers and Canada’s Greenest Employers, the CRD delivers regional, sub-regional and local services to 13 municipalities and three electoral areas on southern Vancouver Island and the Gulf Islands. Governed by a 24-member Board of Directors, the CRD works collaboratively with First Nations and all levels of government to enable sustainable growth, foster community well-being, and develop cost-effective infrastructure while continuing to provide core services to residents throughout the region. Visit us online at www.crd.bc.ca.

 

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For media inquiries, please contact:
Andy Orr, Senior Manager
CRD Corporate Communications
Tel: 250.360.3229
Cell: 250.216.5492

Backgrounder

Budget Process

The Capital Regional District’s(CRD) financial planning process is based on the corporate planning framework and reflects direction from Commissions, Committees and the Board.

The CRD Board Priorities were developed at the start of the Board term in 2019 and formed the basis of the CRD’s 2019-2022 Corporate Plan. This plan includes fifteen community need summaries which describe services and initiatives that directly contribute to meeting the most pressing regional needs in the CRD. Staff identified that this ambitious plan for the region would require a significant amount of resources to action and implement.

Each community need summary contains the initiatives, associated staffing, timing and service levels required to advance the CRD’s work in 2021. In total, staff identified 49 initiatives in support of the 15 community needs and organizational requirements that will have budget implications above core service delivery in 2022.

The most significant drivers of the proposed initiatives identified to support the community needs includes the implementation of large projects that have been in the planning and policy development stage for the last two years and are now ready to deliver and operationalize; changes required to adapt to increasing demand for services; and initiatives that are necessary to put appropriate controls and delivery mechanisms in place as well as improve workflows to manage service growth and maintain performance levels.

The 2022 Financial Plan reflects the level of effort deployed by the organization, which has been increasing to advance the initiatives listed in all Community Need Summaries and, in some cases, emerging trends and changes in economic activity have had a significant impact on the demand for services driving additional resource requirements.

The Plan includes operating and capital budgets in addition to changes in reserve funds.

The operating portion of the CRD Financial Plan pays for the expenses required to advance Board strategic priorities, including labour, supplies, programs, services and repayment of debt for major projects. For 2022, the operating portion includes revenues and expenditures of $312.7 million, an increase of $15.8 million compared to the 2021 CRD Financial Plan.

The capital portion of the provisional CRD Financial Plan pays for new and enhanced infrastructure, including renewal and replacement of existing structures. This includes acquisition of buildings and facilities, as well as construction and upgrades to assets. With the completion of the Core Area Wastewater Treatment Project in 2021, the 2022 capital portion includes investment of $181.1 million, a decrease of $105.1 million compared to the 2021 CRD Financial Plan. 

Through Board direction, the Electoral Area Committee reviews and recommends all electoral area-only service budgets, including the review of Local Service Commission budgets. This process includes a significant amount of work undertaken by many commissioners who volunteer their services in the Southern Gulf Islands, Salt Spring Island and Juan de Fuca electoral areas.