Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards are asking for feedback on the provisional 2026 - 2030 financial plans, which were approved following their deliberations during the October 29 Committee of the Whole and CRD Board meetings. The Capital Region Housing Corporation (CRHC) Board will consider their 2026 budget in December.
The CRD, CRHD, and the anticipated CRHC financial plans combine to form a consolidated budget totalling $907 million. Of this, the proposed consolidated operating portion, $507 million, will pay for a range of regional, sub-regional, and local services to over 460,000 people. The proposed consolidated capital portion allocates $400 million of investment towards a range of projects.
The impact of the provisional financial plan will differ for each municipality, electoral area, and First Nation in the region as each participates in a unique combination of services, reflecting the diversity of communities and their specific needs.
The CRD funds its services through a variety of sources, such as:
- the sale of services, like providing drinking water and managing solid waste;
- tax revenue through requisition, where municipalities collect and transfer funds to the CRD to support regional services;
- municipal debt; and
- federal and provincial grants.
Less than one-third of the consolidated budget is funded through requisition. The consolidated requisition is rising by an average of 4.7%, excluding municipal debt borrowed by the CRD on behalf of member municipalities. The average for the region increases to 6.3% when including municipal debt, with a range from 10.4% to 1.9% depending on the municipality. The requisition's impact on the average household will be an increase of approximately $44.30.
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 development of an advanced thermal processing facility at Hartland Landfill to convert biosolids into biochar, a charcoal-like substance with various environmental benefits, including the ability to improve soil through moisture retention and as a nutrient additive.
- A new Regional Transportation Plan (RTP) that will shape how people and goods move throughout the capital region over the next 25 years and beyond. Replacing the current plan approved in 2014, the new RTP will establish a unified vision for regional transportation that reflects the needs and aspirations of residents. Public engagement will begin in early 2026.
- Starting in 2026, the CRD will upgrade 4 km of the Galloping Goose Trail between the Selkirk Trestle and Grange Road (adjacent to McKenzie Avenue), and 2 km of the Lochside Trail between the Switch Bridge and McKenzie Avenue/Borden Street through the Regional Trestles Renewal, Trails Widening and Lighting Project. The work will add lighting for safety and expand the trail to a 6.5-metre-wide separated pathway, improving comfort, accessibility and safety for all users.
- Upgrades to the Regional Water Supply Main No. 4 and the Bear Hill Trunk Extension will strengthen the Saanich Peninsula’s water system by replacing aging infrastructure and adding a backup supply line. These improvements will make it easier to perform maintenance and reduce the impact of potential pipe failures, helping extend the life of the main water line.
- The Maliview Wastewater Treatment Plant on Salt Spring Island is being upgraded to meet provincial and federal regulations while ensuring environmental protection. The project received grant funding in 2022, and detailed design work is now underway. Property owners within the Maliview sewer service area have approved the borrowing bylaw, allowing the CRD to move forward with securing funding for the final phase of the project.
- A partnership between the CRD, Island Health, and the Province will see a new long-term care home built in the City of Colwood which will bring 306 new care home beds to the region. The care home will include a hospice unit and a specialized unit for younger adults who require long-term care.
- The CRD, through its subsidiary the Capital Region Housing Corporation (CRHC), continues to address the critical need to enhance the supply of affordable, inclusive, and adequate housing across the region. In 2025, the CRHC, supported by funding partners like BC Housing and the Canada Mortgage and Housing Corporation (CMHC), began construction on five new projects: Village on the Green (Victoria), Pandora (Victoria), Campus View (Saanich), Cedar Hill (Saanich), and Verdier (Central Saanich). It also completed construction of Caledonia, 158 new affordable rental homes in Victoria. 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, and has begun the planning phases of new developments with the intent of creating a partnership with senior orders of government to bring much-needed new housing supply into the region.
In 2026, wholesale water rates will increase by 7.9% as the CRD begins implementing its Regional Water Supply Master Plan (Master Plan), which lays out the roadmap of critical infrastructure projects designed to meet the needs of a growing community while proactively addressing evolving risks related to seismic activity and climate change. As an essential service, access to safe and reliable drinking water is fundamental to public health and community resilience. This year’s rate adjustment supports the initial rollout of the Master Plan, helping to fund vital infrastructure improvements and upgrades that ensure the continued delivery of sustainable drinking water for generations to come.
The provisional 2026 – 2030 financial plans incorporate 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, labour costs, 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 provisional 2026 – 2030 financial plans form the foundation of the budget that allows partners, service participants and members of the public to comment and offer feedback before final review and approval scheduled for March 2026. Approving the provisional 2026 – 2030 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.
Between now and final budget approval, the provisional 2026 – 2030 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 CRD Board. Comments received through the budget feedback process will be shared with the CRD Board for consideration as part of the final review.
For more information, to access the provisional 2026 – 2030 financial plans and provide feedback, please visit https://getinvolved.crd.bc.ca/2026-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.ca.
For media inquiries, please contact:
Andy Orr, Senior Manager
CRD Corporate Communications
Tel: 250.360.3229
Cell: 250.216.5492
Budget Process Backgrounder
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 CRD Board priorities.
Each term, the CRD 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 provisional 2026 - 2030 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 2026, the operating portion includes revenues and expenditures of $434 million, an increase of $20 million (5%) compared to the 2025 CRD financial plan.
For 2026, revenue from the sale of services comprises approximately half (49%) 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 2026 capital portion includes expenditures and funding of $244 million, a decrease of $70 million (22%) compared to the 2025 CRD financial plan.
Through Board direction, the Electoral Areas 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.
