Victoria, BC– The Capital Regional District (CRD) and Capital Regional Hospital District (CRHD) Boards approved the 2026 budget and 2026 - 2030 financial plans, at the Board meeting on March 11, 2026. The 2026 Capital Region Housing Corporation (CRHC) Financial Plan was approved by the CRHC Board on November 26, 2025.
“The approval of the 2026 budget and 2026–2030 Financial Plans reflects the CRD’s commitment to fiscal responsibility while continuing to deliver the essential and important services our communities rely on every day,” said CRD Board Chair Cliff McNeil-Smith. “We are grateful for the dedication of our staff and express appreciation for our partners and community members whose collective contributions helped to shape the budget and financial plans that respond to today’s priorities while preparing for challenges and opportunities in the future.”
The CRD, CRHD, and the CRHC budgets combine to form a consolidated budget totalling $932 million. Of this, the consolidated operating portion, $489 million, will pay for a range of regional, sub-regional, and local services for over 460,000 people. The consolidated capital portion allocates $443 million of infrastructure investment towards a range of projects.
In October 2025, the provisional budget and financial plans were 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:
- An increase in costs for Core Area Wastewater Operations associated with the Residual Treatment Facility, including operational expenses and biosolids disposal costs.
- The transfer of the regional trails function from Regional Parks to Regional Transportation.
- Timing adjustments made to some capital projects within water utility services and the solid waste service at the Hartland Landfill.
The 2026 – 2030 financial plans incorporate the delivery of the priorities and initiatives identified in the 2023 – 2026 Corporate Plan, 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, which exert a direct and sometimes significant impact on financial plans. Service level drivers are determined by community needs, Board Priorities, and regulatory requirements.
The impact of the financial plans 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, federal and provincial grants.
For 2026, fee, rate, and charge revenue from the sale of services comprises approximately half of the CRD’s operating revenue.
This includes wholesale water rates which have increased 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 water supply 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.
Approximately one-quarter of the consolidated budget is funded through requisition. The consolidated requisition is rising by an average of 5.2%. The requisition's impact on the average household will be an increase of approximately $28.26 or 4.5% after factoring in 2026 property assessment and folio data. The balance of the operating revenue is funded from a variety of other sources including grants.
The capital portion of the financial plans pays for new and enhanced infrastructure, including renewal and replacement of existing structures. Highlights of key capital projects and investments include:
- Planning to introduce new carbonisation technology to the Residuals Treatment Facility at Hartland Landfill to transform Class A biosolids [the leftover solids from wastewater treatment] into biochar, a stable, carbon-rich product offering a variety of potential benefits across construction, industrial, agriculture, and forestry sectors.
- 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.
- 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.
- 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.
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:
Monique Booth, Communication Services Manager
CRD Corporate Communications & Engagement
Tel: 250.360.3165
Cell: 250.516.1703
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Backgrounder
Budget Process
The CRD is required by legislation to develop financial plans 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.
The 2026 service planning cycle represents the fourth and final year of the Board-approved 2023 to 2026 CRD Corporate Plan and Board Priorities.
Each term, the CRD Board sets the strategic priorities, policy, and direction that guide the activities of the organization. The financial plans incorporate 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 plans have been developed based on resources required for the delivery of core services, the impact of new initiatives, capital programs, current economic conditions and other cost pressures such as inflation and contractual agreements. The 2026 - 2030 financial plans include operating and capital budgets in addition to changes in reserve funds.
The operating portion of the 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 2026, the operating portion includes revenues and expenditures of $445.7 million, an increase of $27.2 million (6.5%) compared to the 2025 CRD financial plan.
For 2026, fee, rate, and charge revenue from the sale of services comprises half (50%) 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 financial plans 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 $273.7 million, a decrease of $41.8 million (13.2%) compared to the 2025 CRD financial plans.
Under budget direction provided by the Board, review and recommendation for approval of Electoral Area service budgets, including local service commission budgets, is delegated to the Electoral Area Directors and Salt Spring Island (SSI) Local Community Commission (LCC) for applicable local services. 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.
