Victoria, BC– The Capital Regional District (CRD) Board approved the 2023 financial plan at a Special Board meeting on March 29. The Capital Regional Hospital District (CRHD) 2023 Financial Plan was approved at a Special Board meeting on March 15. The Capital Region Housing Corporation (CRHC) Financial Plans were approved by the CRHC Board on December 14, 2022.

“The Board acknowledges that inflation and economic pressures are impacting everybody,” said CRD Board Chair Colin Plant. “Our 2023 financial plans have been developed with a prudent and sustainable approach that allows us to continue to protect and deliver the vital services that residents depend on, while investing in community needs.” 

The CRD, CRHD and CRHC financial plans combine to form a consolidated budget totaling $690 million. The consolidated operating portion, $398 million, will fund a range of regional, sub-regional, and local services to over 432,000 people. The consolidated capital portion targets $292 million in projects which will focus largely on constructing and renewing infrastructure to ensure reliable delivery of the region’s essential services. An overview is available in the 2023 Consolidated Budget Overview.

In September 2022, the provisional budget was approved and presented to the public for feedback. Since that time the budget has been refined to include:

• One-time funding for government-to-government relationship building with First Nations
• A one-year funding renewal for the Aboriginal Coalition to End Homelessness
• Additional Building Inspection resources to address a backlog of building permit applications in electoral areas
• A Regional Canadian Goose Management Service
• A Local Community Commission for Salt Spring Island

The 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 and CRHD’s consolidated requisition increase remains below inflation at 3.4%. 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.

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. 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.

This year, the results have focused on impacts to the community needs of Accountability, Water & Wastewater, Affordable Housing, and others.

Highlights of investments in these areas include: 

• The West Shore Long-term Care Project. This project is being developed through a partnership between, the province, Island Health and the CRHD.  Island Health will build and operate the facility and CRHD will provide the land, maintain ownership of the land and cost share 30 percent of the project. The facility will include a hospice and a specialized unit for younger adults who require long-term care.
• 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.
  
• Replacement of the Regional Water Supply Ultra Violet (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.  
• 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.
• 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. 

The Capital Region Housing Corporation (CRHC) budget, includes funding to continue to plan and develop affordable housing projects in the region. The CRHC Capital Projects’ Major Capital Plan includes eight projects that are identified as underway, or in planning, totalling just over $60 million for 2023 towards a funding envelope of $293 million over the life of the plan.

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

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 2023 service planning process marked the first 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. 

The Financial Plan has been developed based on resources required for the 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 Financial 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 2023, the operating portion includes revenues and expenditures of $337 million, an increase of $22 million compared to the 2022 CRD Financial Plan.

For 2023, revenue from sale of services comprises nearly half of the CRD’s operating revenue, while a quarter is funded from requisition. The balance is supported through other revenue sources including grants.  

The capital portion of the 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 $218 million, an increase of $27 million 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.