GVPL 2026 Budget and 2026-2030 Five Year Financial Plan

2026 Budget Executive Summary

Public libraries are a vital part of vibrant communities and support building strong local economies. The Greater Victoria Public Library (GVPL) supports literacy and lifelong learning by providing free and equitable access to information, space, tools, and expertise. There are 12 branch locations within 10 local municipalities serving more than 380,000 residents. The virtual branch at gvpl.ca is open anytime, anywhere.

GVPL’s operating budget is funded primarily by our ten municipal partners, with remaining revenues from provincial and other grants. A key objective is to maintain municipal contribution increases within an acceptable range. As the role of public libraries has expanded dramatically in the past few years, budget increases are necessary to meet the growing needs of the communities we serve. GVPL is committed to supporting the wellbeing of our community by providing safe and inclusive spaces for all.

The Greater Victoria Public Library budget is allocated as illustrated below.

Where does your budget dollar go?

The Fiscal 2026 Budget will be impacted by a number of factors.

Staffing costs for the 2026 budget reflect a projected reduction in the vacancy rate along with increased service demands and expanded weekend operations. Planned staffing adjustments include increased supervisory support, additional People and Culture and IT resources to maintain weekend operations and strengthened safety and security initiatives such as enhanced training and emergency preparedness. GVPL continuously reviews staffing levels to ensure alignment with community needs. Staff investments are guided by GVPL’s commitment to operational excellence, equitable service across communities, and a safe, sustainable work environment for all employees.

Sunday operations costs, including both branch operations and support service costs, are included in the 2026 budget.

The current collective agreement expired on December 31, 2024, and negotiations are ongoing.

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The five-year financial outlook anticipates additional salary and branch related cost increases in 2028 to support operations at the anticipated newly expanded Nellie McClung Branch. There are uncertainties related to the timing and costs of the new Nellie McClung branch development project. Any changes to the assumptions used to create the original estimates may result in unanticipated increases.

Costs related to existing branch service delivery and facilities related requirements are budgeted in 2026 and future years at 2025 service levels. Support costs for providing library services continue to increase due to escalating costs of collections, safety and security requirements and system infrastructure costs.

As with the 2025 Budget, the 2026 Budget utilizes Reserve funds for system and infrastructure projects, security improvements, facility projects and funding the first year of new FTEs.

Key increases:

The cost drivers that result in the 6% increase for the 2026 Total Funded Budget are:

• Salaries inflation, new FTEs and decrease in estimated vacancy rate - $1.63M
• Non-salary inflation and costs - $268K
• Change in other funding sources (Grants, Donations) - $140K
• Offset by increased use in Reserves - $292K

GVPL is committed to operating efficiently and effectively to deliver library services to our 10 member municipalities. The library system leverages more than 100 active community partnerships to expand programs and lifelong learning opportunities for Greater Victoria residents. The Cost per Capita in the 2026 Budget is $61.19, an increase from the 2025 Budget, $57.58.

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BUDGET AT A GLANCE

Note 1 – Total budget funded is equal to Expenses (Operating budget) less amortization (non-funded expense) plus capital budget

Note 2 – Operating budget consists of operating expenses only

Note 3 – Net of Amortization

Note 4 – Municipal Contribution Total divided by Population

Note 5 – Municipal Contribution Increase divided by Population

Note 6 – As per BC Stats, 2024 Sub-Provincial Population Estimates

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2026 Budget and Five-Year Financial Plan

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2026 Budget and Five-Year Financial Plan

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2026 MUNICIPAL CONTRIBUTIONS

1 - % Share calculated before Rent Adjustment to be comparative to 2026

2 - The Rent Adjustment is calculated in accordance with Section 8.12 (a), (b) and (c) of the Library Operating Agreement and relates to portions of buildings used to benefit all member municipalities: the Collection and Technical Services section of the Juan de Fuca Branch building and the Administrative portion of the Central Branch building. Municipalities which did not contribute to the initial acquisition of such building or who did not subsequently purchase a portion of such building pays reasonable rent to those Municipalities that did.

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2026 MUNICIPAL PER CAPITA CONTRIBUTIONS

¹ Source of population figures - BC Stats website: https://www2.gov.bc.ca/gov/content/data/statistics/people population-community/population/population-estimates, 2024, accessed July 2025

General note: Percentage share of costs by municipality are determined based on 50% property assessment value and 50% population estimate. More detailed information on assessment values and population are available on request.

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Notes to the 2026 Budget and Five-Year Financial Plan

Components of the 2026 budget include the following:

1. Municipal Contributions – Operating

Increase $1,747,738 or 8.0%

2. 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.

3. 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.

4. 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.

5. 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).

6. 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.

7. 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.

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8. 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

9. 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.

10. 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.

11. 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.

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12. 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.

13. 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.

14. 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.

15. 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.

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Appendix 1 - Reserve Fund Balances

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