TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: February 9, 2026 Report No. ADM-26-008
TO: Committee of the Whole
FROM: Dan Horan, Chief Administrative Officer
SUBJECT: 2026-2030 Financial Plan Options and Way Ahead
RECOMMENDATION:
Recommendation
That the Committee of the Whole recommend to Council:
o That the proposed increase of 13% for the 2026 budget be supported;
o That staff be directed to prepare a project backgrounder/impact assessment to initiate the 3rd party benchmarking analysis for revenue;
o That staff be directed to prepare a project backgrounder/impact assessment to initiate the 3rd party benchmarking analysis for operating budget/service delivery;
o That staff be directed to brief Council on staff's potential initiatives on efficiency/effectiveness prior to development of Council's 2026-2030 strategic plan; and
o That staff be directed to prepare any further budget related information needed for Council's 2026-2030 Financial Plan deliberations.
Body
EXECUTIVE SUMMARY:
At the January 12 meeting Council, staff were directed to develop information about what 7% and 9% tax rate increases (down from the proposed 13%) for the 2026-2030 Financial Plan would look like. This report provides that information for Council deliberation.
Staff have modelled the options and assessed the risks and impacts. A path to achieving between 7% to 7.5% is described, but this approach would require reductions to necessary supplemental budget requests and to core operating budgets.
Staff assess that the cumulative effect of the reductions needed to reach 7% to 7.5% would carry significant risks to service delivery and organizational capacity. Staff have laid out what those reductions would look like and the associated trade-offs.
The report also recognizes Council's feedback about the challenges of budget analysis in Esquimalt and seeks direction about any further staff work that Council requires for this year's budget deliberations. Staff also make ...
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