TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: April 28, 2025 Report No. FIN-25-005
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2025 Financial Plan and Tax Rates Bylaw
RECOMMENDATION:
Recommendation
That Council give first, second and third readings to Financial Plan Bylaw, 2025, No. 3159 and Tax Rates Bylaw, 2025, No. 3160 as attached to Staff Report FIN-25-005.
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 approved by Council to support the desired service levels and the tax rates have been calculated based on the additional revenue required to balance the budget.
Chronology
January 20 - Draft Financial Plan Presentation
February 3 - Operating Supplementals and Workforce Plans
February 24 - Long Term Capital Program
March 3 - Updated Budget Presentation and Reduction Scenarios
March 4 - Capital Supplementals
April 7 - Reconsideration of March 3 Council motion
April 14 - Tax Rate Presentation
ANALYSIS:
During this year’s process, Council was provided with various pieces of budgetary information, and a 9.90% 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 gave direction to proceed with drafting 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 5-year term as required by the Community Charter. In addition to the 9.90% revenue increase in 2025, this bylaw includes projected revenue increases ranging between 7.87% and 12.74% during the 2026-2029 fiscal years. Of the four future years, the largest projected increase is in 2026, due to the inclusion of deferred operating supplementals and workforce additions in the draft plan. While these increases are projections based on budgetary estimates, they are only preliminary and will be reviewed and can be adjusted each year as part of the budget process.
Additionally, to assist with the fluidity and transparency of the 2026 budget process, staff intend to provide information to Council well in advance of the formal budget discussions. This information will cover areas such as staff requests, capital projects and other operational components which comprise a significant portion of the projected increase. This will provide Council with an opportunity to further discuss and consider the various items prior to their inclusion in the initial budget package.
OPTIONS:
1. That Council give first, second and third readings to Financial Plan Bylaw, 2025, No. 3159 and Tax Rates Bylaw. 2025, No. 3160.
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 payment methods available to taxpayers.
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. Sarah Holloway, Manager of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Financial Plan Bylaw, 2025, No. 3159
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, 2025, No. 3160
5. Tax Rates Bylaw Schedule A - Tax Rates