CRD Arts Service Funding Tier Change (Staff Report)

CRD Arts Service Funding Tier Change

RECOMMENDATION:

THAT the Committee recommends to Council, that the Town of View Royal reduce its participation in the Capital Regional District Arts and Culture Support Service from Tier 1 to Tier 2.

ALTERNATIVE OPTIONS:

• Option #2: THAT the Committee recommends to Council, that the Town of View Royal withdraw its participation in the Capital Regional District Arts and Culture Support Service.
• Option #3: THAT the report dated October 28, 2025 from the Director of Finance titled “CRD Arts Service Funding Tier Change” be received for information.

PURPOSE:

The purpose of this report is to provide Committee with information regarding the cost of maintaining the current Tier 1 participation in the Capital Regional District Arts and Culture Support Service (CRD Arts Service) vs. moving to the Tier 2 level of funding. Since the matter was last in front of Council, the CRD board unanimously approved a new CRD Performing Arts Facilities Service which will add incremental costs to the CRD requisition. In a time of sharply rising municipal operating costs, staff encourage Council to revisit the preferred level of funding to the CRD Arts Service.

BACKGROUND:

Per the CRD, over $2.5 million each year is invested in regional arts and culture through arts grants, providing funding to non-profit organizations to create and present arts programming. Established in 2001, the Arts Service also fosters community outreach by hosting various events, workshops and information sessions. The Arts Service is supported by 9 of 16 jurisdictions in the CRD as displayed in Appendix 1.

On April 1, 2025 a motion to reduce Arts Service funding from Tier 1 support to Tier 2 was introduced at Committee of the Whole. After much deliberation the motion was defeated by a vote of 4-3. While the savings would offset only a small portion of taxation increases over the coming years, staff feel it is prudent for Committee to again deliberate the value to taxpayers of remaining a Tier 1 participant.

The Town had been a Tier 2 participant in the CRD Arts Service until Council passed a resolution C-22-08 on September 16, 2008, moving the Town to Tier 1. In 2025 the Town’s Tier 1 participation came at a cost of approximately $125K. These funds are collected through property taxation as part of the CRD requisition and displayed as a line item on the Town’s property tax notice.

Staff anticipate financial challenges over the next number of years in the form of increased RCMP dispatch costs, increased fire personnel, the continued implementation of the long-term financial plan relating to sustainable infrastructure replacement, and the transition to taxation funded West Shore Parks and Recreation. The new CRD Performing Arts Facilities Service will carry an approximate cost of $65K to the Town. The impact of this new service is anticipated in 2027, along with further CRD increases related to debt payments for the new Public Safety Building in Langford. The Town also faces decreasing building permit and casino revenue, placing heightened reliance on taxation and other reserve funding.

The CRD uses a blended model of assessment and population to calculate participant funding apportionment. Tier 2 Arts Service participants contribute at 30% of their Tier 1 allocation. The financial impact of moving from Tier 1 to Tier 2 is a reduction of approximately $85K to just under $40K.

ANALYSIS:

Impacts and implications can be summarized as follows:

ALIGNMENT:

The recommended option aligns with the Town’s following core guiding documents as follows:

PUBLIC PARTICIPATION GOAL:

The desired level of public participation for the recommended option is:

[ ] Inform [x] Consult [ ] Involve [ ] Collaborate [ ] Empower [ ] N/A

TIME CRITICAL:

The CRD has provided the following process summary for changing participation in the CRD Arts Service, which can take anywhere from 4-12 months:

• Vote by Town Council to establish the official request to change Tiers
• Send an official letter to the CRD, citing Council’s decision
• Consideration by the CRD Board, which may or may not decide to start the amending bylaw process (changing participation levels requires an amending bylaw)
• If amending bylaw passes CRD Board approval, then at least two-thirds of participating jurisdiction councils must approve the amending bylaw
• Approval by Inspector of Municipalities and adoption by CRD Board