TOWNSHIP OF ESQUIMALT MEMORANDUM
MEETING DATE: February 23, 2026 Report No. DEV-26-006
TO: Council
FROM: Bill Brown, Director of Development Services
SUBJECT: Proposed Adjustment to the 2026-2030 Financial Plan for the Major Review of the Official Community Plan
INFORMATION:
The purpose of this memo is to outline two possible courses of action for Council related to the budgeting for the Financial Impact Analysis Model, and the Esquimalt Road Urban Design Guidelines. One option is to include partial funding in 2026 budget with the remaining amounts shown as 2027 costs within the 2026-2030 Financial Plan. The second option would be to defer all currently budgeted 2026 costs to the 2027 budget year within the 2026-2030 Financial Plan. Pros and cons of both options are laid out below.
Background
At their December 15, 2025 meeting, Council ratified the December 8, 2025 recommendation from the Committee of the Whole, “That Council direct staff to initiate a major review of the Official Community Plan based on the Impact Assessment attached as Schedule “A” to staff report DEV-25-062, subject to funding approvals in the 2026 budget process” (Appendix “A”).
Subsequently, at their February 9, 2026, meeting, Council, sitting as a Special Committee of the Whole, reviewed the 2026 draft budget and discussed several possible ways to reduce the proposed budget including the deferral of the Esquimalt Road Design Guidelines and the Financial Impact Analysis Model to 2027. The decision to defer these costs would reduce the 2026 budget but would see the 2027 budget increase by the same amount.
The total budgeted costs are $250,000 for the Financial Impact Analysis Model and $200,000 for the Esquimalt Road Urban Design Guidelines. These total costs remain constant regardless of the year they are budgeted and the distribution of costs would be reflected in the appropriate years within the 2026 -2030 Financial Plan. Additionally, the estimated costs for the major review of the Official Community Plan are $250,000, however, the Financial Impact Analysis Model and the Esquimalt Road Design Guidelines need to be completed first to inform the major review. As a result, costs associated with the major review of the OCP would likely be incurred until 2027 and 2028.
In the first option, Council can leave the 2026-2030 Financial Plan unchanged which would include the allocation of $50,000 for the Financial Impact Analysis Model and $25,000 for the Esquimalt Road Urban Design Guidelines. This would also mean the remaining amounts would be included as 2027 costs within the financial plan. Under this option, staff would need to put most of the current priorities and projects on hold as resources would be focused on this project. Contracts for the Financial Impact Analysis Model and Esquimalt Road Urban Design Guidelines would be awarded in 2026, and work would begin immediately thereafter.
The second option is for Council to defer all currently budgeted costs to 2027 within the 2026-2030 Financial Plan. As noted, this would reduce the overall 2026 budget request but would increase the budgeted costs included in the 2027 fiscal year. By including these amounts in the 2026-2030 Financial Plan Bylaw as 2027 costs, staff would be authorized to issue a request for proposal in the fall of 2026 with commencement of the project in early 2027 as these costs would already be approved for disbursement.
RECOMMENDATION:
Recommendation
That Council authorize staff to amend the 2026 - 2030 Financial Plan to include all budgeted costs for the Esquimalt Road Urban Design Guidelines and the Financial Impact Analysis Model in the 2027 fiscal year.
Body
REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Acting Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. New Initiative Impact Assessment - Major Review of the Official Community Plan (2026 - 2028).