2026 Budget

Council received the proposed 2026 Operating and Capital Budgets, and approved tax rate increases, at the Regular Council Meeting on Monday, January 26, 2026.

The proposed budget includes a mix of cost savings and budget reduction strategies designed to manage resident affordability pressures while maintaining core services and addressing financial risk. Measures considered in 2026 include reduced contributions to reserves and limited, one-time drawdowns from contingency reserves.

These measures are not intended as long-term solutions. They are proposed as short-term tools to manage one-year cost pressures while staff continue work to strengthen the District’s financial position through sustainable strategies.

Following the public engagement period, Council approved the following motions:

• the proposed 2026 Operating Levy increase of 2.43% be approved;
• the proposed 2026 Asset Levy increase of 1% be approved; and
• staff be directed to remove the $400,000 budget reduction strategy for the Environmental Reserve transfer and report back to Council with an alternative strategy.

At Council’s direction, staff will finalize the 2026–2030 Five-Year Financial Plan and bring it forward for Council consideration at the Regular Council Meeting on February 23, 2026. The five-year financial plan outlines anticipated revenues, expenditures and capital investments over a five-year period. Years two to five in the five-year financial plan represent projected estimates that serve as a guideline rather than firm commitments. It reflects best estimates based on known information at the time and is updated annually to reflect changing conditions, emerging priorities, inflation, and Council direction.

For 2027–2030, the financial plan uses the 2026 budget as the baseline, and assumes status quo service levels and capital programs informed by the District’s asset management plans. The projections also incorporate Asset Levy and Environmental Levy increases, alongside the Operating Levy, as part of the overall general taxation forecast. Because some 2026 measures are one-time (such as reserve drawdowns), the financial plan anticipates greater pressure in 2027 compared to later years unless replaced with sustainable ongoing funding or offset through other actions. Staff will continue to pursue operating efficiencies and service reviews, cost containment and procurement improvements, and new or expanded revenue opportunities where appropriate to help mitigate inflationary and other cost escalation pressures.

The District recognizes public concerns about the use of one-time funding and will continue to report on when reserve funding is used, the purpose of that use, and the plan to return to more sustainable funding approaches through ongoing efficiencies, service planning, and reliable revenues aligned with future costs and infrastructure needs in future years.

For an average single-family household assessed at $3.56 million and with a median single-family household bill, the proposed tax rate increase would result in the following financial impact:

Thank you for telling us your budget priorities. The budget questionnaire is now closed.