TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: April 27, 2026 Report No. FIN-26-010
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2026 Financial Plan and Tax Rates Bylaws
RECOMMENDATION:
Recommendation
That Council:
1. Give first, second, and third readings to Financial Plan Bylaw, 2026, No. 3180; and
2. Give first, second, and third readings to Tax Rates Bylaw, 2026, No. 3181.
Body
EXECUTIVE SUMMARY:
The Community Charter requires municipalities to adopt Financial Plan and Tax Rate Bylaws prior to May 15 each year. The annual financial plan provides financial information for a five-year period and must set out the policies and objectives for the planning period. The tax rates bylaw is required to provide the Township with the authority to impose property taxes to meet its obligations.
BACKGROUND:
The Financial Plan and Tax Rates Bylaws have been drafted based on Council direction. During meetings held in January, February, March and April, Council was provided an outline of the Township’s budget process, as well as detailed information about the capital program, workforce plans, and operational supplemental requests. The draft financial plan includes the various budget components to support the approved service levels and the tax rates have been calculated based on the additional revenue required to balance the budget.
Chronology:
Materials were provided to Council at the following meetings:
• January 12 - Preliminary draft financial plan overview including supplemental requests and work force plans
• February 2 - Capital program update
• February 9 - Updated draft financial plan with potential service level and supplemental reductions;
• February 9 - Draft budget book
• March 2 - Review of potential reductions and approval of financial plan components
• April 13 - Tax rates; Financial plan policies
ANALYSIS:
During this year’s process, Council was provided with various pieces of budgetary information, and a 11.32% tax revenue increase was approved to support the desired service levels. After considering this required increase and the updated assessment values, property tax rates were calculated and presented to Council. The tax rate scenario included the resulting mill rates and the impact on the average property for each property class. Council directed staff to draft bylaws based on the approved budget components and resulting tax rates. The financial plan and tax rates bylaws were prepared and have been attached to this report.
The draft financial plan bylaw presents a five-year term as required by the Community Charter. In addition to the 11.32% revenue increase in 2026, this bylaw includes projected revenue increases ranging between 7.67% and 10.71% during the 2027-2030 fiscal years. The largest increase during that period is projected to be in 2027, when deferred operating supplementals, such as OCP costs and workforce additions, are now included. These increases are projections based on preliminary budget estimates and will be reviewed and potentially adjusted each year as part of the budget process.
OPTIONS:
1. That Council give first, second and third readings to Financial Plan Bylaw, 2026, No. 3180 and Tax Rates Bylaw, 2026, No. 3181.
2. That Council amend the Financial Plan and Tax Rates Bylaws and give first, second and third readings, as amended.
COUNCIL PRIORITY:
Good Governance
FINANCIAL IMPACT:
Adoption of the Financial Plan and Tax Rates Bylaws prior to May 15 are required from a regulatory and service delivery perspective.
COMMUNICATIONS/ENGAGEMENT:
Once the bylaws are adopted, information about the tax revenue increase and other key financial plan details will be communicated through social media and the Township’s website. Also, an information insert will accompany each property tax notice to be mailed to property owners in May. This insert will include important information about the tax rate calculation, the annual property tax deadline, and available payment methods.
The annual budget book will also be updated and made available to coincide with the adoption of the bylaws on May 4. This document will have more details about the cost drivers, departmental budgets and consolidated revenues and expenditures for each of the five years covered within the bylaw.
TIMELINES & NEXT STEPS:
This decision would allow for the financial plan information and tax rate data to be uploaded into the Township’s financial systems and would facilitate the generation and issuance of property tax notices in May.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Financial Plan Bylaw, 2026, No. 3180
2. Financial Plan Schedule A - Council Policy FIN-23 Financial Sustainability, Revenue and Tax
3. Financial Plan Schedule B - Five Year Financial Information
4. Tax Rates Bylaw, 2026, No. 3181
5. Tax Rates Bylaw Schedule A - Tax Rates