Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards are asking for feedback on the 2024 provisional financial plans which were approved following their deliberations during the October 25 Committee of the Whole and Board meetings.
The 2024 provisional financial plans form the foundation of the budget that allows stakeholders, service participants and members of the public to comment and offer feedback before final review and approval scheduled for March 2024. Approving the provisional financial plans enables the organization to effectively deploy resources needed to maintain core service delivery and advance capital projects required to support development and population growth across the region. The Capital Region Housing Corporation (CRHC) Board will consider their 2024 budget in December.
The overall budget faces numerous pressures, including factors like inflation, wage rates and interest rate changes, that exert a direct and sometimes significant impact on financial plans. Service level drivers are determined by community needs, Board priorities, and regulatory requirements.
To mitigate the challenges posed by inflation and core service adjustments, staff have conducted a comprehensive review and rebalancing of ongoing service delivery. This process includes the strategic deferral and phasing of initiatives, as well as adjustments to annual capital and operating reserve funding. These adjustments have been made in alignment with the board's approved reserve guidelines to ensure responsible and sustainable financial management.
Between now and final budget approval, the provisional financial plans will undergo changes as a result of final year-end adjustments, revised assessment information, and any other amendments directed by commissions, committees, or the Board. Comments received through the budget feedback process will be shared with the Board for consideration as part of final review.
The CRD, CRHD and CRHC financial plans combine to form a consolidated budget totalling $724 million. Of this, the proposed consolidated operating portion, $430 million, will pay for a range of regional, sub-regional, and local services to over 440,000 people. The proposed consolidated capital portion allocates $294 million of investment towards a range of projects.
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:
- Sections of the Galloping Goose and Lochside regional trails will be upgraded as part of the Regional Trestle Renewal, Trails Widening and Lighting Project. These improvements will be done in phases and will span 5.3km of the Galloping Goose Regional Trail between the Selkirk Trestle and Grange Road (adjacent to McKenzie Avenue) and 1.3km of the Lochside Regional Trail between the Switch Bridge and McKenzie Avenue/Borden Street.
- 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.
- A partnership between the CRD, Island Health and the Province that will see a new long-term care home built in the region in the City of Colwood. It will bring 306 new care home beds to the region, with construction expected to begin in 2025 and complete in 2027. The care home will include a hospice unit and a specialized unit for younger adults who require long-term care.
- Replacement of the regional water supply Ultraviolet (UV) system will continue in 2024. 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 Capital Regional Housing Corporation (CRHC) and utilizing such programs as the Regional Housing First Program (RHFP), a partnership with the Provincial Government through BC Housing and the Federal Government through the Canada Mortgage and Housing Corporation. Continued planning and progress will take place in 2024 on the corporation’s intention to: replace 12 townhouses with 119 new units at the CRHC’s Campus View property in Saanich; replace 38 units at its Village on the Green Property with 140 new units; add 205 units at its new Pandora Avenue property in collaboration with the City of Victoria; and undergo a full building envelope remediation at its 22-unit townhouse complex Carey Lane in Saanich.
The impact of the provisional financial plans is unique for each municipality, electoral area and First Nation as each participates in a different set of services, reflecting the region's diversity and varied needs.
The CRD, CRHD and CRHC Boards are committed to transparency and community engagement and invite all residents, businesses, and stakeholders to participate in the financial planning process.
For more information, to access the 2024 provisional financial plans and to provide feedback please visit https://getinvolved.crd.bc.ca/2024-financial-plan.
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 government partners 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
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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.
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 Corporate Plan in the first year of the planning cycle, aligning with the strategic priorities of the CRD. The planning cycle is designed to ensure alignment and implementation of strategic objectives during the election term.
The CRD Board’s five priority areas were developed at the start of the Board term and formed the basis of the CRD’s 2023-2026 Corporate Plan. This plan includes 16 community needs which describe services and initiatives that directly contribute to meeting the most pressing regional needs in the CRD. Each community need summary presented to the CRD Board 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 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 2024 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 2024, the operating portion includes revenues and expenditures of $362 million, an increase of $18 million (5%) compared to the 2023 CRD Financial Plan.
For 2024, revenue from the 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 the acquisition of buildings and facilities, as well as construction and upgrades to assets. The 2024 capital portion includes revenues and expenditures of $235 million, an increase of $8 million (4%) compared to the 2023 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.