BUDGET VARIANCE AND PROJECTS UPDATE TO DECEMBER 31, 2025

BUDGET VARIANCE AND PROJECTS UPDATE TO DECEMBER 31, 2025

RECOMMENDATION:

THAT the report dated January 29, 2026 from the Deputy Director of Finance titled “Budget Variance and Projects Update to December 31, 2025” be received for information.

ALTERNATIVE OPTIONS:

Option #2: Council may direct staff to provide additional information regarding the financial results of operations and progress of projects.

PURPOSE:

To provide the Committee with information regarding the financial results to December 31, 2025.

BACKGROUND:

On May 13, 2025, Council adopted Financial Plan Bylaw No. 1153. This report reflects budget values for revenue, expense, and projects as presented in the Town’s 2025-2029 Financial Plan. The attached schedules inform the Committee of the financial results of delivering services and capital and non-core projects to the end of December 2025 with prior year actual values to the end of the fourth quarter for comparison.

ANALYSIS:

Impacts and implications can be summarized as follows:

Community Impact: The update provides constituents with high level, year-to-date financial information.

Financial Implication:

Consolidated Revenue Attachment 1 Consolidated Budget Variance shows revenue on a consolidated basis, which means that both operating revenue and capital sources of funding are added together in the same format as shown in the five-year financial plan bylaw. Sixty-three percent or $22.5 million of the total 2025 budgeted revenue and transfers comes from operating activities. On December 31, 2025, $21.7 million (97%) in total operating revenue has been received or is receivable. Additional analysis about 2025 revenue results to date is attached as Attachment 2 2025 Year-to-date revenue analysis.

Consolidated Expense Like revenue, expense is shown on Attachment 1 on a consolidated basis – operating, capital expenses, and transfers are added together. Fifty-eight percent or $20.7 million of the 2025 total consolidated expense is budgeted for operations. As of December 31, 2025, approximately 90% or $18.6 million of total operating expense has been spent or is payable.

Generally, operating expense is spread evenly throughout the year such that at the end of December 0% of the budget should remain for each of the service categories. Attachment 1 shows that most operational services have the expected level of budget or more remaining, which allows for timing differences, year-end accruals, and other project or contingency expenses.

Additionally, the year-end process is underway which will result in certain accounts being updated based on final invoices, accruals, and other accounting adjustments. Capital projects show expenditures based on invoices to date, but their corresponding revenue is not recognized until year-end adjustments are made. This can lead to a temporary excess of expenses over revenues for these projects until the financial statements are finalized.

Capital and Non-core projects Attached to this report are Attachment 3 Non-core Projects and Attachment 4 Capital Projects. These schedules list the projects approved in the 2025-2029 Financial Plan.

The Town’s financial results of operations and projects to date are within acceptable variances from budget, with exceptions noted for the Committee’s information.

Due to timing differences between internal reporting timelines and invoices from vendors, there may exist variances between reported costs and final costs of some projects. As invoices are processed, a more complete calculation of actual variances will be made.

Cost overruns may be offset by deferring other projects with the same funding source, to the extent that there are no other significant impacts to levels of service. Should corrective measures be necessary, staff will inform Committee of the effect, if any, on service levels or project completion timelines.

Inter-governmental Relations Impact: N/A

ALIGNMENT:

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

• Strategic Plan: The Budget Variance and Projects Update report is prepared and submitted for the Committee’s information in support of View Royal’s Strategic Plan’s stated values (accountable, open, and transparent) and organizational excellence objectives:
  • decision-making processes to be transparent and responsive, and
  • integrating strategic planning, business planning, budgeting, and performance management systems.
• Official Community Plan: N/A
• Other Policy Documents: N/A

PUBLIC PARTICIPATION GOAL:

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

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

TIME CRITICAL:

Staff intend to provide Committee with quarterly updates in 2026, with reporting to March 31, 2026, at the May Committee of the Whole.

ATTACHMENTS:

• Attachment 1 2025 Consolidated Budget Variance
• Attachment 2 2025 Year-to-Date Revenue Analysis
• Attachment 3 2025 Non-core Projects
• Attachment 4 2025 Capital Projects