COUNCIL REPORT: 2026-2030 DRAFT Financial Plan & Project Consideration
An overview of the draft five-year financial plan, highlighting an 8.69% forecasted tax increase and major cost drivers.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council DATE: February 25, 2026 FROM: Steven Vella, Director of Finance MEETING DATE: March 3, 2026
2026-2030 DRAFT Financial Plan & Project Consideration
RECOMMENDATION:
THAT staff incorporate feedback from the March 3, 2026 Council meeting in preparation of the 2026-2030 Financial Plan bylaw.
PURPOSE:
This report provides an overview of the 2026-2030 DRAFT Financial Plan (Plan), including cost drivers, the 2026-2030 DRAFT Financial Plan schedules and project summaries.
BACKGROUND:
The Community Charter requires that local governments in British Columbia approve a Five-Year Financial Plan (in bylaw format) and Tax Rates Bylaw on or before May 15 of each year. To produce this bylaw, the Town updates its Five-Year Financial Plan which includes general and sewer operations, general and sewer capital programs, and reserves budgeting.
The annual budget process, public engagement, and review are used to balance the level of operational services, implement Council's strategic initiatives, and maintain Sustainable Infrastructure Replacement Plan (SIRP) financial strategies and long-term planning. In doing this the Town strives to,
- Ensure adequate funding for services
- Continue long-term financial strategies to increase future infrastructure replacement funding levels and reserves
- Manage expenses, contain costs, be efficient
- Assess staff capacity and delivery of work plans
- Provide for contingencies, manage risks and operate prudently,
- Maintain reserves for the future, and
- Use debt strategically
This report provides information to assist Council in setting expectations for 2026 budget deliberations, increases, and to consider direction to staff during deliberations.
DISCUSSION:
2026 Budget Development Process
To prepare the Town’s draft budget, staff aim to maintain existing levels of service, unless Council has approved a change in service. To accomplish this, staff apply cost escalation factors where necessary and integrate new regulatory requirements. In addition to this, staff integrate all budget implications from Council direction after the adoption of last year’s Financial Plan.
2026 Financial Plan Highlights
The attachments to this report form the 5-year Financial Plan. Following are excerpts from the Plan relating to 2026, specifically taxation increase drivers, and consolidated revenues and expenditures, with comments.
2026 Taxation Increase
The following tax increase drivers were presented in greater detail to Committee on February 10, 2026 during which, staff advised Committee that further refinement was necessary to arrive at the 2026-2030 DRAFT Financial Plan. The 2026-2030 DRAFT Financial Plan forecasts a 8.69% tax increase as outlined below:
| Item | Amount | Percentage |
|---|---|---|
| SIRP Funding | $ 130,000 | 1.00% |
| Increase Communications FTE from .5 to .7 | 25,000 | 0.19% |
| New Parks Worker | 45,000 | 0.35% |
| New Fire Salaries | 519,900 | 4.01% |
| Reduced Permit Revenue | 251,800 | 1.94% |
| RCMP Contracted Services | 245,300 | 1.89% |
| 2025 Accumulated Surplus Funding | 175,000 | 1.35% |
| IAFF Collective Bargaining Support | 30,000 | 0.23% |
| E-COMM 911 | 110,200 | 0.85% |
| Small Communities Grant reduction | 45,000 | 0.35% |
| WSPR Transition to taxation | 65,000 | 0.50% |
| Other Cost Escalation | 159,400 | 1.23% |
| Reduced Boulevard Maintenance | (210,000) | (1.62%) |
| Increased Investment Income | (165,000) | (1.27%) |
| Non-Market Change | (300,000) | (2.31%) |
| Total | $ 1,126,600 | 8.69% |
Council may reduce the tax increase by directing change to the drivers above over which Council has discretion. Each item offers a different level of discretion for reduction or expansion. For instance, the Small Community Grant reduction and E-COMM 911 are non-discretionary.
Consolidated Revenues (Schedule 1.1)
| Revenues | 2025 ($) | 2026 ($) | Change | Comment |
|---|---|---|---|---|
| Taxation | 13.2M | 14.6M | 1.4M | Includes NMC of $300K |
| User Fees | 3.5M | 3.6M | 100K | SIRP recommendation - Sewer User Fees |
| Sale of Services | 1.1M | 940K | (160K) | Reduction in Permit Revenue partially offset by increase in Fire Protection Fees |
| Penalties and fines | 79K | 88K | 9K | Increased Fines/MTI, Arrears/Delinquent Interest |
| Investment income | 615K | 780K | 165K | Conservative alignment with actuals |
| Other revenue | 265K | 265K | - | |
| Government grants and transfers | 3.4M | 3.05M | (350K) | Casino and Small Cmty Grants; Grant funded projects |
| Contributions from developers and others | 342K | 473K | 100K | Increased DCC-funded projects |
| Operating revenue Total | 22.5M | 23.8M | 1.3M | |
| Transfers for operations | 6.6M | 7.2M | 600K | Police Operating, LGCAP, LGHI, Amortization |
| Revenue from capital sources | 1.1M | 740K | (360K) | Reduction in Grant/DCC-funded projects |
| Transfers for capital | 5.7M | 3.1M | (2.6M) | Reduction in reserve-funded projects |
| Total Revenue | 35.9M | 34.8M | (1.1M) |
Consolidated Expenses (Schedule 1.1)
| Expenditures | 2025 ($) | 2026 ($) | Change ($) | % of total | Comment |
|---|---|---|---|---|---|
| General government services | 3.55M | 3.77M | 220K | 17% | Non-capital projects, labour, election |
| Protective services | 7.39M | 8.46M | 1.07M | 38% | Labour, FireSmart, RCMP Contract, ECOMM |
| Transportation services | 3.26M | 3.02M | (240K) | 14% | Boulevard, Drainage contracted services |
| Environmental health services | 2.86M | 3.13M | 270K | 14% | Sewer master plan, CRD sewer requisition |
| Development services | 994K | 994K | - | 4% | |
| Parks services | 1.03M | 1.19M | 160K | 5% | Non-capital projects, labour |
| Recreation and culture services | 1.48M | 1.54M | 60K | 7% | Requisition increases |
| Interest on debt | 284K | 284K | - | 1% | |
| Operating expense Total | 20.85M | 22.39M | 1.54M | ||
| Capital expenditures | 6.80M | 3.84M | (2.96M) | Reduction in projects | |
| Internal cost allocations | 566K | 576K | 10K | ||
| Amortization | 3.32M | 3.65M | 330K | Increased book value of assets | |
| Principal payments on debt | 333K | 333K | - | ||
| Transfers to reserves/surplus | 4.0M | 4.01M | 100K | Net of increased Capital Renewal/decreased Casino | |
| Total Expenditures | 35.9M | 34.8M | (1.1M) |
2026/2027 Special Projects
In addition to the Financial Plan schedules, attached are project summaries for the full 2026-2030 duration of the Financial Plan. Staff will be available on March 3 and March 10 to answer questions relating to specific projects during budget deliberations.
As Council is aware, in 2027 staff will be authorized to operate under year 2 of the adopted 2026-2030 Plan. It is imperative that if there are any projects that Council wish to defer to budget discussions in 2027, clear direction must be provided through Council resolution prior to the 2026-2030 Financial Plan bylaw budget adoption.
Next Steps
On March 10, 2026 Committee will be reviewing any special projects not reviewed on March 3 and will make recommendations to Council regarding any changes. On March 17th, 2026 staff will provide to Council the next iteration of the Financial Plan incorporating changes directed to staff in the two preceding meetings. The updated 2026-2030 DRAFT Financial Plan will be published through Engage View Royal for further public review and engagement.
In April Committee will consider feedback from public engagement and recommend that Council give first three readings to the 2026-2030 Financial Plan. Committee will also consider tax rate options and recommend that Council give first three readings to the tax rate bylaw.
The 2026-2030 Financial Plan Bylaw will be adopted ahead of the 2026 Tax Rate Bylaw, prior to May 15, 2026.
PUBLIC PARTICIPATION GOAL:
The desired level of public participation for the recommended option is: [x] Inform [ ] Consult [x] Involve [ ] Collaborate [ ] Empower [ ] N/A
TIME CRITICAL:
Financial Plan and Tax Rate Bylaws required final reading prior to May 15, 2026
| CONCURRENCE: | Initials | Comments |
|---|---|---|
| Chief Administrative Officer | SS | I concur with the recommendation. |
| REVIEWED BY: | Initials |
|---|---|
| Director of Finance | SV |
Appendix A: 2026-2030 DRAFT Financial Plan Schedules Appendix B: 2026-2030 Non-Capital Project Summaries Appendix C: 2026-2030 Capital Project Summaries
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