Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards are asking for feedback on the 2025 provisional financial plans which were approved following their deliberations during the October 30 Committee of the Whole and Board meetings. The Capital Region Housing Corporation (CRHC) Board will consider their 2025 budget in December.

The provisional financial plan incorporates the delivery of the priorities and initiatives identified in the Corporate Plan in 2023, aligning with the strategic priorities of the CRD. The overall budget faces numerous pressures, including factors like inflation, wage rates and increasing debt servicing costs that support infrastructure investments, that exert a direct and sometimes significant impact on financial plans. Service level drivers are determined by community needs, Board priorities, and regulatory requirements.

The CRD, CRHD and the anticipated CRHC financial plans combine to form a consolidated budget totalling $873 million. Of this, the proposed consolidated operating portion, $481 million, will pay for a range of regional, sub-regional, and local services to over 440,000 people. The proposed consolidated capital portion allocates $392 million of investment towards a range of projects.

The provisional financial plan was approved with the following amendments from the Electoral Areas Committee which only apply to the Electoral Areas:

• That the transfer to operating reserve for elections be moved from 2025 to 2026;
• That the transfer from building inspection to equipment reserve is reduced from $40,000 to $30,00 in 2025.
  

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 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:

• The establishment of a new Electoral Area Services Department to provide more consistent and tailored service delivery to the residents of Juan de Fuca, Salt Spring Island, and the Southern Gulf Islands. This department will streamline operations by centralizing administrative and operational functions, ensuring that resources are allocated more efficiently across the three electoral areas.
• New recreation facilities including the renewal of the Sooke Skate Park operated by the CRD’s SEAPARC Recreation Centre and a new multisport facility at Centennial Park in Central Saanich which will be constructed and operated by the Peninsula Recreation Commission.
• The development of a demonstration facility for advanced thermal processing plant at Hartland Landfill to evaluate potential thermal resource recovery options for the Class A biosolids produced through wastewater treatment. 
• 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 completed in 2027. The care home will include a hospice unit and a specialized unit for younger adults who require long-term care.
• 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. With the RHFP fully subscribed to in 2024, the CRD initiated and gained approval through the regional Alternative Approval Process (AAP) to increase the borrowing authority of the Land Assembly, Housing and Land Banking service to $85 million. This increase will support future housing partnership opportunities and address the critical need to enhance the supply of affordable, inclusive, and adequate housing across the region.  
  

The consolidated requisition, which includes the municipal debt that the CRD borrows on behalf of the municipalities, is rising by 5.5%. The average per-household impact will be an increase of approximately $38.

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 2025 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 2025. 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 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. A public information session will be held in the new year to provide more information and an opportunity to ask questions.

For more information, to access the 2025 provisional financial plans and provide feedback please visit https://getinvolved.crd.bc.ca/2025-financial-plan. Sign up to be notified about updates and when details regarding the public information session are available.

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

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 provisional 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 Provisional 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 2025 Provisional Financial Plan includes operating and capital budgets in addition to changes in reserve funds.

The operating portion of the CRD provisional 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 2025, the operating portion includes revenues and expenditures of $411 million, an increase of $42 million (11.5%) compared to the 2024 CRD Financial Plan.

For 2025, revenue from the sale of services comprises almost half (48%) of the CRD’s operating revenue, while requisitions make up approximately 23%. The balance is funded from a variety of other revenue sources including grants.

The capital portion of the CRD provisional 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 2025 capital portion includes revenues and expenditures of $283 million, an increase of $17 million (6%) compared to the 2024 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.