Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards approved the provisional financial plans for 2023 at the September 21 Committee of the Whole and Board meetings.

Each term, the Board sets the strategic priorities, policy and direction that guide the activities of the organization. The proposed financial plan incorporates the delivery of work and execution of priorities and initiatives that were identified in the fourth and final year of the planning cycle and as part of the strategic and corporate plans for the CRD.

The CRD, CRHD and Capital Region Housing Corporation (CRHC) financial plans combine to form a consolidated budget totaling $681 million. The proposed consolidated operating portion, $391 million, will pay for a range of regional, sub-regional, and local services to over 432,000 people. The proposed consolidated capital portion targets $290 million in projects which will generate an estimated 1,693 jobs in the region.

The provisional Financial Plan impact is unique for each municipality, electoral area and First Nation as each participates in a different set of services. While inflation is above historical highs, the CRD’s requisition increase remains well below inflation at 2.3%. With the continued support of senior level governments and partners, the CRD has been able to continue investing in capital infrastructure and delivering essential services while limiting taxation to less than 25% of total revenue. Excluding municipal debt, which is required to flow through Regional Districts, the consolidated requisition increase for CRD, CRHD, and CRHC is 1.8%. An overview is available in the 2023 Consolidated Budget Overview.

Population growth continues to drive the regional economy as well as the need for investments in infrastructure and an increase in service delivery. Since 2011, the population of the CRD has increased 18.9%. Since 2019, the CRD, has added more than 756 new affordable dwellings in the region and will work towards adding another 800 affordable dwellings to the CRHC portfolio for a combined portfolio of more than 2700 units operated by the CRD by 2025.

Various pressures influence the total budget. Drivers such as inflation and interest rate changes have a direct, and sometimes significant impact on the overall budget. Service level drivers are a product of community needs, Board priorities, and regulatory requirements.

Major initiatives affecting the organization across multiple services are addressed through service planning to coordinate an organizational response. This year, the results have focused impacts to the community needs of Accountability, Water & Wastewater, Affordable Housing, and others.

To mitigate inflationary and core service adjustments, staff have reviewed and rebalanced ongoing service delivery, including adjustments to annual capital and reserve funding levels through alignment to capital reserve guidelines.

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:

• Various wastewater facility projects including the Magic Lakes Estate Wastewater System Infrastructure Replacement Project on North Pender Island, the Maliview Wastewater Treatment Plant upgrade, and the rehabilitating the aging Northeast Trunk - Bowker sanitary sewer system in Oak Bay.
• The Hartland Renewable Natural Gas Initiative will upgrade the biogas generated at Hartland Landfill to renewable natural gas for sale to Fortis BC. This project is expected to reduce the capital region’s greenhouse gas (GHG) emissions by approximately 450,000 tonnes of carbon dioxide over the next 25 years, the equivalent of removing 3,900 cars from the road or heating 3,000 homes with a heat pump instead of oil.
• Phase 1 of the Mayne Island Regional Trail is a 2.3 km multi-use trail between Village Bay (ferry terminal) and Miners Bay village.  The trail will be 3-4 metres wide with a gravel surface and grades between 0-4%.  The trail will be constructed in the Ministry of Transportation & Infrastructure (MOTI) road right-of-way, adjacent to and on the north side of Village Bay Road between the BC Ferries terminal and Naylor Road.  Construction is expected to be completed in 2023.
• As a result of a detailed condition assessment undertaken in 2021, CRD Regional Parks has initiated critical repairs to the Selkirk Trestle beginning with preliminary repairs to pillars and support structures in 2022.  Below deck repairs will continue in 2023, focusing on the remaining structural components of the trestle.  The final phase of the project will include above deck surfacing and widening work, providing a 6.5m wide separated use pathway for visitors as well as lighting for visitor safety.
• Replacement of the regional water supply UV system continues in 2023. The existing UV disinfection infrastructure is reaching end-of–life status and requires replacement with modern, integrated and efficient equipment that meets Island Health and CRD requirements.  
• The CRD continues to invest in affordable housing with the Regional Housing First Program (RHFP) and through the Capital Regional Housing Corporation (CRHC). This past year the process to replace 12 townhouses, at the CRHC’s Campus View property in Saanich, with 119 units of affordable housing began. The project is funded through the RHFP.

The proposed financial plan is subject to change prior to final budget review and approval by the Board in March 2023. Visit Get Involved CRD to subscribe for updates, and review budget documents.

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 CRD is required by legislation to develop a financial plan each year that represents operating and capital expenditures for the next five years. These plans provide a longer-term focus regarding the resources required to deliver programs and services needed by the community, and to accomplish Board priorities.  

The 2022 service planning process marked the fourth and final year of the four-year strategic and corporate planning cycle. The planning cycle is designed to ensure alignment and implementation of strategic objectives during the election term. A new corporate plan will be prepared to incorporate new and revised priorities following local government elections this fall. 

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. Each community need summary contains the initiatives, associated staffing, timing and service levels required to advance the CRD’s work.

The Financial Plan has been developed based on resources required for delivery of core services, the impact of new initiatives, proposed capital programs, current economic conditions and other cost pressures such as inflation and contractual agreements. The 2023 Provisional Financial Plan includes operating and capital budgets in addition to changes in reserve funds.

The operating portion of the provisional 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 2023, the operating portion includes revenues and expenditures of $329 million, an increase of $16 million (5%) compared to the 2022 CRD Financial Plan.

For 2023, revenue from sale of services comprises nearly half (47%) of the CRD’s operating revenue, while requisitions make up approximately 24%. The balance is funded from a variety of other revenue sources including grants.  

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. The 2023 capital portion includes revenues and expenditures of $211 million, an increase of $22 million (12%) compared to the 2022 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.