Notes to the 2026 Budget and Five-Year Financial Plan

Components of the 2026 budget include the following:

Municipal Contributions – Operating Increase $1,747,738 or 8.0%
Municipal Contributions – Start-up Nil

This line item represents any funds made available within the operating budget specifically identified for a new branch or relocation of an existing branch. Nellie McClung Express branch start-up costs were incurred in 2025. No costs have been included for the start-up costs for the new Nellie McClung branch or any other alternative service delivery.
Provincial Grants Decrease $34,000

Regular Provincial funding (operating) for public libraries in British Columbia is based on the base funding received in 2025. The 2025 budget included the use of $34K of Provincial funding received in prior years for the Esquimalt digital media lab.
Fees and Misc. Increase $3,643

This revenue category included revenue relating to fees, meeting room rentals and printing. The 2026 Budget includes revenue related to fees only. Policies and procedures related to printing and meeting room rentals are under review.
Contracts for Service No Change

This is an annual payment from the Capital Regional District for service delivery relating to the Juan de Fuca Electoral District. (Willis Point, Durrance, Malahat).
Investment Income No change

Investment revenue is conservatively estimated to reflect projected continuation of modest earnings in the Municipal Finance Authority bond fund and returns for secured GIC’s and operating bank interest that reflect current and anticipated interest rates.
Donations and Other Grants Decrease $109,443

Donations and grants can vary from year to year and are dependent on specific funded programs and services planned during the year. Donations specific to collections are not included as the related collections cost is also excluded. New funding opportunities will continue to be explored.
Salaries and Benefits Increase $1,708,661

Labour is budgeted at full scheduled hours. Sunday openings based on five branches open for seven months in 2026 have been included. Staff gapping or an estimation of vacancies is included in the budget.
- Increases relate to:
  - Estimated contractually negotiated uplifts (potential) - $700K including benefits.
  - Additional or increased budgeted positions - $545K including benefits.
  - Planning for a lower vacancy rate - $387K
- Personnel Reserve is being utilized to partially fund the cost increase in 2026 $400K and 2027 $200K.
- Salaries and Benefits FTE increases include positions that support safety and security and service delivery:
  - Library Services $286K
    - 3.4 FTEs – 2nd Branch Supervisor at Central Branch Library; 2 Circulation Assistants and 1 Page (safety/security req.)
  - People and Culture $140K
    - 1 FTE HR Advisor
  - CEO and Senior Leadership Team Executive support - $56K
    - 0.5 FTE
  - Information Technology (IT) Helpdesk and IT Specialist support $63K
    - 0.4 increase to current P/T positions; 0.2 increase to IT Specialist
Library Materials (Collections) (Expense and Capital) Increase Expense – eResources and Digital Assets $46,481 Increase Capital – Physical Materials $34,292

The library materials(collections) budget is split between expenses for digital and eResources and capital for books, audio visual and other physical formats which are capitalized as assets and amortized over 7 years.
Amortization Increase $41,483

This is the estimated amortization expense for tangible capital assets, in accordance with the Board’s Tangible Capital Asset policy. Since this is an unfunded expense, it is added back to the budgeted annual surplus and does vary year over year depending on capital asset purchases and disposals.
Supplies and Services Decrease $269,281

The decrease is related to specific one-time initiatives, funded by Reserves in 2025.

Ongoing supplies and services costs that are funded by Municipalities include general and office supplies, telephone, networks, subscription and licensing, professional fees, advertising, printer paper, moving costs and shuttle fuel. This category also includes furniture, computers and other equipment and peripherals under $1000. The primary reasons for the increase in ongoing costs in this category are related to higher professional services, furniture and equipment moving, and health & safety.
Building Occupancy Increase $3,240

Building occupancy includes building maintenance, security, recycling and refuse collection and utilities. The main cost driver in this category is security services.
Other Expenses Increase $11,523

Other expenses include insurance, employee recruitment costs, training, and business travel expenses. Printer lease, copy costs and paper are also included in this category. The increase is driven by inflation.
Capital Expenditures (Library Materials, Hardware, Shelving, Furniture and Equipment, Building Improvement, Vehicles) Increase $19,367

Capital expenditures increases are primarily due to increased IT hardware replacement costs, which are mainly funded by Reserves.
Transfer to/(from) Reserves Change in Net Transfer from Reserves ($87,947)

The 2026 budget continues to utilize Reserve balances to augment funding for facilities upgrades, implementation of security initiatives and information technology infrastructure; as well as Occupational Health and Safety compliance and phase two of the updated website/virtual branch infrastructure project. Transfers to and from reserves are approved by the Board of Trustees through the Budget approval process or specific briefing notes.