PERIOD REPORT
DATE: May 26, 2025 Report No. ADM-25-022
TO: Mayor and Council
FROM: Dan Horan, Chief Administrative Officer
SUBJECT:TITLECAO - 2025 First Period Report
Body
The following is a report on the activities pertaining to the CAO’s office from January 1, 2025 to April 30, 2025.
The CAO’s primary focus during this period was supporting Council in their deliberations and decision-making to develop the 2025-2029 Financial Plan. The initial draft budget for 2025 included a 14.04% tax rate increase over the 2024 budget. Following Council’s direction, approximately $1.57M in operational and staffing-related increases were deferred, resulting in a final approved increase of 9.9%.
Council’s direction during the budget process was clear: cap the budget increase at 9.9% and then do the necessary work to best understand the impacts to the Council Priorities Plan and levels of service. Most of the reductions to the 2025 budget came from deferrals rather than elimination. The 2025-2029 Financial Plan now includes projected tax increases ranging from 7.87% to 12.74%, with the highest projected tax increase to occur in 2026.
While these figures are projections and subject to detailed review each year, they do offer a clear indication of the financial pressures Council will need to navigate. Staff have committed to bringing forward information well in advance of the 2026 budget process to support Council’s ability to shape the next budget proactively. This includes updates on staffing plans, capital projects, and other key cost drivers. The following bullets show the rough plan for further discussions about the drivers for future budget years:
• June/July Committees of the Whole:
o Development Services Workforce Plans and Levels of Service
o Fire Department Levels of Service and Operational Approaches (Now and Future)
o Parks and Recreation Cost Drivers, Outcomes, and Operations Management
• September/October Committees of the Whole:
o First Annual Update - Long Term Capital Program
o Engineering & Public Works Levels of Service and Resourcing
o Human Resources - Results and Retention Strategies and Risk Management
o Administration & Corporate Services - Legal and Regulatory Risk Management
The CAO’s February 27, 2023 memorandum to Council (in support of a strategic planning workshop) remains the baseline for understanding the Township’s capacity and capability:
“The CAO’s assessment of the organization during his transition into the role (beginning in early October 2022) is that the organization is poised to deliver results on a number of recently completed high-level plans and strategies. However, due to the municipality’s limited capacity and resources, focused guidance from Council on priorities will be essential for staff to concentrate action and resources on the right key issues that would deliver results that meet Council’s needs and expectations.”
The Council Priorities Plan and the process that supports the plan represents the focused guidance mentioned above and continues to be the key tool for staff to deliver on Council’s expectations.
The current state of the organization means staff have limited capacity to take on internal process improvements. Over the past two years, the development of critical future-state documents like workforce plans, capital plans, master plans, and long-term financial plans pushed the organization to the edge of its capacity. With relatively small teams across the organization, the temporary loss of one or two staff members in key departments significantly impacted the team’s ability to maintain service levels, advance the Council Priorities Plan, and pursue internal initiatives aimed at improving efficiency and effectiveness. Despite being nearly at full strength, the organization remains stretched.
Evaluating the progress of Council Priorities Plan initiatives is relatively straightforward: Are the right projects being pursued? Are they completed on time and within budget? Do they reflect an appropriate level of organizational effort? Evaluating the Township’s day-to-day operational levels of service presents a more complex challenge. There are few municipalities who have effectively defined qualitative and quantitative levels of service in a way that can be quickly adapted to Esquimalt. Advancing this work remains a priority for staff in the year ahead.
Council completed a mid-term review of the Council Priorities Plan in late 2024. Seven new initiatives were proposed for inclusion into the plan. The status of these initiatives was finalized through the 2025 budget process. The bullet points below summarize the status of the seven new initiatives:
• Affordable Housing (funded and in Council Priorities Plan)
• Deer Fencing (moved to Future Projects in Council Priorities Plan)
• Esquimalt Together Against Graffiti (status unclear - expectations to be discussed with Council)
• Ground-Oriented Small Developments (moved to Future Projects in Council Priorities Plan)
• Improved Budget Documentation (in Council Priorities Plan)
• Official Community Plan - Major Review (not yet funded or committed to - intended to start in 2026 if Council gives direction to do so)
• Parkland Placement, Acquisition and Management (moved to Future Projects in Council Priorities Plan)
The following projects were funded by Council and have been incorporated into the draft Council Priorities Plan:
• Recreation Strategic Plan (under Good Governance and Organizational Excellence)
• Pavement Condition Assessment and Management Plan (under Good Governance and Organizational Excellence)
• Short-term Rental Policy Analysis (under Diversified and Thriving Economy)
The attached draft Council Priorities Plan reflects the status of all projects and initiatives. Staff invite questions from Council and make the following recommendations:
• That staff be directed by Committee resolution to make any proposed changes, additions or deletions to the Council Priorities Plan; and
• That the Council Priorities Plan be endorsed by resolution for approval by Council and publication to the Township’s website.