TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: March 2, 2026 Report No. SI-26-006
TO: Council
FROM: Terése Finegan, Manager of Economic Development
SUBJECT: Supplemental Information for 2026 Budget - Local Grants
RECOMMENDATION:
Recommendation
That Council direct staff to maintain the current local grant budget of $160,000 in the 2026-2030 Financial Plan.
Body
EXECUTIVE SUMMARY:
At the February 9, 2026 Special Committee of the Whole meeting, Council requested supplemental information regarding the Local Grants Program as a potential service reduction area within the 2026-2030 Financial Plan.
The 2026 draft budget currently includes $160,000 in the local grants account.
This report:
• Summarizes the purpose and governance framework of the program
• Outlines recent policy updates that strengthen transparency and accountability
• Identifies financial considerations, including existing multi-year agreements
• Presents three budget options for Council’s consideration
Council direction is required to confirm the 2026 funding level and associated program scope.
BACKGROUND:
Program Purpose
The Township’s Local Grants Program provides financial assistance to community groups and non-profit organizations whose activities align with Council’s strategic priorities and contribute to community well-being.
Historically, funded initiatives have included:
• Community events
• Arts and cultural programming
• Environmental initiatives
• Youth development activities
• Social service programs
The program supports civic engagement, volunteerism, and community capacity building.
Recent Governance Improvements
The program has recently undergone significant updates through:
• Development of updated Local Grants Guidelines
• Amendments to Council Policy ADM-83 (previously Council Policy FIN-20)
These updates introduced:
• Two annual intake rounds
• Weighted assessment criteria
• Pre-eligibility screening
• Strengthened reporting requirements
• Clearer alignment with Council priorities such as climate resilience, community engagement, and organizational excellence
These improvements enhance transparency, consistency, and strategic alignment.
At the February 9, 2026 Special Committee of the Whole meeting, staff were asked to provide more information on local grants as a potential service reduction.
ANALYSIS:
Program Impact
The Local Grants Program supports a range of community-led initiatives that contribute to:
• Social well-being
• Cultural vibrancy
• Economic participation
• Community cohesion
Grant funding enables organizations to:
• Leverage additional funding
• Build operational capacity
• Delivering programming aligned with municipal objectives
Demand for grant funding has increased in recent years as organizations continue rebuilding capacity following the pandemic.
Financial Context
The draft 2026-2030 Financial Plan includes $160,000 in the local grants account.
In 2023, Council approved the allocation of multi-year funding to various organizations. While these commitments have been approved for 2026, no disbursements have yet been made.
Council direction is required regarding whether to:
• Honour these commitments in full
• Amend or cancel commitments
• Limit funding to specific categories or organizations
Risk Considerations
Any reduction to the Local Grants budget may:
• Reduce the number of funded initiatives
• Impact volunteer-driven and community-based programming
• Affect organizations that rely on predictable funding cycles
GENERAL CONSIDERATIONS:
The program’s updated policy framework (Attachment 1 - Local Grant Policy ADM‑83) is designed to improve fairness, accessibility, and strategic alignment.
Several multi‑year funding agreements up to and including 2026, approved during prior cycles, have not yet been disbursed. (Attachment 2 - Local Grant Recipients. Reducing the Local Grants budget to $81,000 aligns with the total value of “Established Events” commitments.
OPTIONS:
Option 1: Maintain Current Budget of $160,000 (RECOMMENDED)
Maintaining the Local Grants budget at $160,000 preserves the Township’s ability to support a broad range of community‑led initiatives and maintains the integrity of the updated policy framework.
This option:
• Supports established events and new initiatives
• Honours multi-year funding commitments
• Provides continuity for community organizations
• Maintains strategic alignment with Council priorities
Motion:
That Council direct staff to maintain the current local grant budget of $160,000 in the 2026-2030 Financial Plan.
Option 2: Moderate Reduction to $81,000
Reducing the Local Grants budget to $81,000 aligns funding with the approximate value of previously supported recurring or established events.
Under this option:
• Funding would prioritize established community events and high-impact initiatives
• New one-time grants and lower-priority categories would be paused
• Council must determine whether to honour or amend multi-year agreements
Administrative updates to the Financial Plan and communication to affected organizations would be required.
Motion:
That Council direct staff to:
1. Reduce the 2026 Local Grants budget allocation from $160,000 to $81,000; and
2. Allocate available funding exclusively to established community events with recurring commitments totaling $81,000; and
3. Defer all other Local Grant payments for 2026, including those associated with multi-year funding agreements outside of the established events category; and
4. Update the 2026-2030 Financial Plan accordingly.]
Option 3: Removal Significant Reduction or Elimination
Removing the 2026 local grant budget would result in the elimination of municipal financial support during the 2026 fiscal year.
This option would:
• Remove funding for events, cultural activities, environmental programs, and social initiatives
• Reverse the decision to disburse 2026 funding as part of all multi-year commitments
Motion:
That Council direct staff to remove the 2026 local grant budget allocation.
COUNCIL PRIORITY:
Diversified and Thriving Economy
Engaged and Healthy Community
Good Governance and Organizational Excellence
Strong Relationships and Partnerships
FINANCIAL IMPACT:
The financial impact depends on Council’s selected option:
• Option 1: $160,000 allocation
• Option 2: $81,000 allocation
• Option 3: $0 allocation
Any changes will be incorporated into the 2026-2030 Financial Plan
COMMUNICATIONS/ENGAGEMENT:
Following Council direction, staff will:
• Notify affected organizations
• Update program materials and website content
• Adjust intake and administrative processes as required
TIMELINES & NEXT STEPS:
Council direction will be incorporated into the 2026-2030 Financial Plan for further consideration and deliberation as part of the 2026 budget process
REPORT REVIEWED BY:
1. Judy Kitts, Director of Strategic Initiatives, Reviewed
2. Deb Hopkins, Director of Corporate Services
3. Ian Irvine, Director of Finance, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
Attachment 1 - Local Grant Policy ADM-83
Attachment 2 - Local Grant Recipients