Victoria, BC– The Capital Regional District (CRD) and the Capital Regional Hospital District (CRHD) Boards approved the 2025 financial plans at the Board meeting on March 12, 2025. The 2025 Capital Region Housing Corporation (CRHC) Financial Plan was approved by the CRHC Board on December 11, 2024.
“The 2025 financial plans reflect our commitment to responsible fiscal management and strategic investment in our community. These plans will enable us to continue delivering essential services, support sustainable growth, and enhance the quality of life for residents in the capital region,” said CRD Chair Cliff McNeil-Smith. “We appreciate the collaborative efforts of our staff, partners, and community members in shaping a budget that addresses our current needs and future aspirations.”
The 2025 financial plans support the priorities and initiatives from the 2023-2026 Corporate Plan, aligning with the CRD Board’s strategic goals.
The CRD, CRHD and CRHC financial plans combine to form a consolidated budget [PDF/1MB] totalling $891 million. Of this, the proposed consolidated operating portion, $477 million, will pay for a range of regional, sub-regional, and local services to over 460,000 people. The proposed consolidated capital portion allocates $414 million of investment towards a range of projects.
In October 2024, the provisional financial plan was approved and presented to the public for feedback. Since that time the budget has been refined as a result of final year-end adjustments, revised assessment information, and other amendments directed by commissions, committees, or the Board. Some of the changes include:
- Support for regional engagement related to the housing affordability strategy.
- Funding for the newly established Foodlands Access service and Biodiversity & Environmental Stewardship service.
- Work on the Regional Trestle Renewal, Trails Widening and Lighting project and the Selkirk Trestle, following preliminary design work done in 2024.
- Timing adjustments made to some capital projects within the large water utility services and the solid waste service at the Hartland Landfill.
The impact of the financial plans are 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 consolidated requisition, which includes the municipal debt that the CRD borrows on behalf of the municipalities, is rising by 5.6%. The average per-household impact for the CRD will be an increase of approximately 3.3% or $23.
The overall budget is subject to various pressures, including inflation, wage rates, and rising debt servicing costs associated with infrastructure investments. These factors can have a direct and often significant impact on financial plans. Service level drivers are influenced by community needs, Board priorities, and regulatory requirements.
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 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 Region 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.
For more details, please visit www.crd.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 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.ca.
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 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 2025 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 Financial Plan includes operating and capital budgets in addition to changes in reserve funds.
The operating portion of the 2025 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 2025, the operating portion includes revenues and expenditures of $412 million, an increase of $43 million (11.6%) 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 2025 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 2025 capital portion includes revenues and expenditures of $311 million, an increase of $44 million (17%) 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.
