Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards approved the provisional financial plans for 2022 at the October 27th Committee of the Whole and Board meetings.

“At the beginning of our term as a Board in 2019, we decided on a number of priorities to address the most pressing needs of our region,” said CRD Board Chair Colin Plant. “The provisional financial plans provide a detailed account of the resources required to deliver the services we provide across the region and what is needed to continue to advance the priorities and goals we set.”

The CRD, CRHD and Capital Region Housing Corporation (CRHC) financial plans combine to form a consolidated budget totaling $611 million. The proposed consolidated operating portion, $371 million, will pay for a range of regional, sub-regional, and local services to over 425,000 people. The proposed consolidated capital portion targets $240 million in projects which will generate an estimated 1,394 new 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 with an overall consolidated requisition increase of 1.7% for 2022. An overview is available in the 2022 Consolidated Budget Overview.

The regional population has increased by 15% since 2011 and continues to drive the local economy, particularly in the construction sector where the value of building permits is forecast to surpass $2B this year. Since 2019, the CRD through the CRHC, has added more than 700 new affordable dwellings and will work towards adding another 1500 affordable dwellings for a potential combined portfolio of more than 3500 units by 2025.

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.

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 provisional plan reflects a new approach for land acquisition that would leverage borrowing capacity unlocking the ability to purchase land that would otherwise be unattainable.
• In February 2019, the CRD Board identified Climate Action & Environmental Stewardship as a priority and approved a motion to declare a climate emergency. The new Climate Action Strategy was developed to reflect board priorities and provide clarity on the role the CRD can plan as a leader in climate action over the next five years. The strategy includes 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. Three climate action initiatives identified in the CRD’s new Climate Action Strategy, require an increase to the maximum allowable funding requisition for the CRD’s Climate Action and Adaption Service to implement. This is dependent on a municipal consent process, taking place in early 2022, to amend Bylaw No. 3510. If approved these initiatives will add $900,000 to the final budget in March. 
• 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 1,600 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.

• 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.

“Our region has seen a huge level of growth over the last few years and has shown remarkable resilience. I’m proud of the work we are doing to manage the crucial services and infrastructure we provide, to deliver drinking water, wastewater treatment, waste management, housing, regional parks, and other services, all while keeping the overall impact to taxpayers below inflation,” said CRD Board Chair Colin Plant. “The CRD Board had a comprehensive discussion and debate on the proposed changes to the regional parks funding model and we welcome public feedback on the entire provisional financial plan through our new digital public engagement platform.”

The proposed financial plan is subject to change prior to final budget review and approval by the Board in March 2022. Public feedback on the provisional financial plans is encouraged, visit Get Involved CRD to subscribe for updates, review budget documents, and provide comment.

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 cycle 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 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 2022, the operating portion includes revenues and expenditures of $309 million, an increase of $12.3 million (4.1%) 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 revenues and expenditures of $169 million, a decrease of $117.2 million (-41%) 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.