The District of Sechelt passed first, second and third readings of its 2025 budget and tax rates bylaw at the May 7 council meeting.
Summary of changes compared to 2024
According to the 158-page, 2025-2029 consolidated financial plan, the general taxation increase proposed for the district is 8.62 per cent, including a 5.62 per cent increase for operations and three per cent for capital expenses.
In total, taxation and other levies rose in 2025 to $15,634,584. That is $1,336,525 over the 2024 amount. Sale of goods and services increased to $2,059,000, a hike of $94,730 from 2024.
The district applied for and was awarded a number of capital grants for 2023, 2024 and 2025 for several projects, some of which were not completed by the end of 2024, so were carried over into 2025.
The grant revenue of $10,582,248 is included in this 2025 financial plan to pay for general fund capital projects.
The district has budgeted $21,130,161 in operating expenses in 2025, an increase of $2,131,564 over 2024. Several of the costs that increased were contractual in nature, such as the RCMP contract, BCGEU employees union contract, debt payments, and library agreement, while other increases, such as hydro, natural gas and vehicle fuel are beyond the district’s control, according to the district.
Additionally, there were several operating projects budgeted in 2024, which are being carried over to 2025. The overall general capital budget for 2025 is $19,485,303. Planned funding sources include reserves, debt financing, grants, user fees and development-cost charges. New approved 2025 capital project requests totalled $4,683,000.
Financial plan
The 2025-2029 financial plan says it continues the district’s focus on building long-term financial stability and sustainability for the municipality and residents. The plan outlines both the five-year financial plan and 2025 annual budget. In addition, it provides highlights on the district’s current fiscal condition and the future challenges it may face.
Many of the items included in the 2023-2026 council strategic priorities are reflected in the 2025-2029 financial plan. Residential sewer user fees increased by $26.85 per residence or 3.95 per cent to $706.25.
Commercial user fees also increased at the same percentage as residential. In 2024, commercial sewer user fees increased to $1,487.50 for an average business, a $56.50 increase over 2024.
The Community Charter requires that council adopt a five-year financial plan each year prior to the adoption of the annual property tax bylaw, with the purpose to provide a budgetary framework for the district to plan the management of its resources, revenues and expenditures in order to best serve the community.
The consolidated five-year financial plan combines the operating and capital budgets for the general operating fund and sewer operating fund for those years, while 41 per cent of the district’s total operating revenues are obtained through property value taxation.
When reviewing the level of funding from taxation, the district identifies the amount of expenditures required to provide all of the desired municipal services to the users. It then quantifies the amount of revenue from other sources, besides property tax, the district can expect to receive through fees and charges, federal and provincial government grants, transfers from reserves and surplus, and more.
The district is challenged to maintain similar levels of taxation, while maintaining or increasing service levels, said the plan. When the cost of providing a service increases, through inflation, changes in statutory requirements, or increases to demand from growth, the district must either raise more revenue to provide the same level of service or reduce levels of service to maintain the similar taxation levels.
While higher interest revenue helped to fund the 2024 budget, most of that current windfall is not permanent and will likely dissipate to normal levels in 2025, said the plan.
2025 tax rates bylaw
The 2025 tax rates bylaw was also presented to council for consideration of three readings at the May 7 meeting.
During a special committee of the whole meeting held Dec. 18, 2024, council recommended a minimum contribution of three per cent towards capital expenditures. This decision was aimed at ensuring adequate funding for essential capital projects and long-term investments in asset management and renewal.
Subsequently, at the Feb. 26, 2025 committee of the whole meeting, council proposed a 5.62 per cent increase in property taxes to support the operations budget. This increase is intended to cover rising operational costs and maintaining the quality of public services provided to the community. Combining these recommendations, the total tax levy for 2025 amounts to 8.62 per cent.
Included in the bylaw are the 2025 rates for taxation.
