Understanding Grants and District Grant Applications
Updated January 14, 2025
The District of Sooke actively pursues grant opportunities to support projects identified in our master plans and annual budget, which are developed with significant public input. This approach allows the District to maximize the return on residential tax dollars, helping to deliver important community projects at a lower direct cost to taxpayers. For instance, the Little River Crossing project is primarily funded through federal and provincial active transportation grants, significantly reducing the financial burden on residents.
The Benefits and Challenges of Grant Funding
The key benefit of grants is that they allow us to fund projects in a way that reduces the direct financial impact on taxpayers. However, there are also challenges:
- Time Delays: There is often a waiting period to hear back on grant applications, which can delay project timelines.
- Uncertainty: Grant funding is not guaranteed, so it cannot always be relied upon as a consistent source of funding.
Funding Projects Through a Balanced Approach
To maintain financial sustainability, the District uses a variety of funding sources, as reflected in our Five-Year Financial Plan:
- Essential Services: Core services like public safety (fire, policing) and road maintenance are funded through taxes to ensure these services remain consistent and reliable.
- Specialized Services: Some services operate on a cost-recovery basis, meaning that only those who directly benefit from the service pay for it (e.g., sewer utilities, recreational programs).
- Reserve Funds: These are essentially “savings accounts” where taxes have been set aside for future needs or unexpected expenses, helping the District remain prepared.
- Grants: These are pursued to fund projects that align with community priorities and external funding criteria.
Aligning Grants With Community Priorities
The District understands the community’s keen interest in projects like the Throup Connector and expanded sidewalk networks. Staff actively review newly announced grant streams to determine which opportunities are best suited for these initiatives. When applying for grants, we prioritize projects that align with both community needs and funding criteria, ensuring the greatest chance of success and a strong return on the efforts invested in the application process.
Frequently Asked Questions (About Grants and Grant Funded Projects)
Grants are funds provided by external organizations, such as the provincial or federal government, to support specific projects. The District pursues grants to stretch residential tax dollars further and deliver more value to the community. By securing grant funding, we can complete important projects with less direct cost to taxpayers. For example, a project like Little River Crossing benefits significantly from grants, reducing the potential financial burden on residents.
Not entirely. While grants cover a large portion of a project’s costs, they typically require the District to contribute a portion. Additionally, grants may cover specific aspects of a project—such as materials or design—but not others, like labour or ongoing maintenance. For example, a grant might fund new sidewalks but not the staff time required to oversee the project or the ongoing maintenance after the sidewalk is built. Further, we recognize that in the case of provincial and federal grants, this is an alternative use of tax dollars – albeit from contributors beyond Sooke residents.
Staff review the eligibility criteria for each grant and compare it with the projects identified in the District’s master plans and budget. This ensures we apply for grants that align with community priorities and are most likely to be successful. Applying for grants takes considerable time and effort, so staff prioritize opportunities where there is the greatest likelihood of success and benefit to the community.
No. Essential services like public safety and road maintenance are funded through taxes, while specialized services (e.g., sewer utilities) are funded by the users most greatly benefits from that service (e.g. properties connected to sewer). Reserve funds act as savings for future projects or unexpected expenses. Grants are an additional funding tool that allows the District to complete more ambitious projects while reducing the tax burden on residents.
Grant processes involve several steps:
- Writing and submitting the application.
- Waiting for approval (which can take months).
- Completing agreements to finalize funding.
- Planning, procurement, and construction.
- Reporting (often also includes interim reporting)
One role of staff throughout this process is ensuring the project meets grant requirements, timelines, and reporting obligations. This thorough process ensures public funds are used appropriately and efficiently.
Grants have specific eligibility criteria, meaning not all projects qualify. For example, a road widening project for vehicles wouldn’t meet the requirements for an active transportation grant, which focuses on infrastructure for walking and cycling. Staff carefully evaluate each grant opportunity to focus efforts on projects with the highest likelihood of success and community benefit.
Grant availability and timing are key factors. For example, the Little River Crossing project moved forward because it aligned particularly well with federal and provincial active transportation grant criteria. Other projects, like the Throup Connector, may be delayed until suitable grant or alternative funding is available. Staff continually monitor grant opportunities to match funding with community priorities.
While the staff role can vary, even where a project is predominantly grant funded, there is often considerable staff involvement in both the application and administration of grants. For example:
- Application Phase: Staff must research the grant, write the application, provide technical details, and demonstrate how the project aligns with the grant’s goals. This process can take weeks or even months, depending on the complexity of the project and the grant requirements.
- Administration Phase: Once the grant is approved, staff manage the project to ensure compliance with the funding terms. This includes overseeing budgets, timelines, reporting to the grant provider, and ensuring the project meets its objectives including quality standards and project scope.
The level of staff involvement varies depending on the grant. Some grants fund only materials, meaning staff must allocate time to plan, supervise, and manage construction or hire external contractors. Without proper administration, the District risks losing funding or being unable to complete the project on time or within budget. This reality also impacts how many grant-funded projects the district can successfully manage at once.
It is important to note that staff are generally funded through residential taxes. While grants stretch the residential tax dollar, even when a project receives 100% grant funding, we acknowledge there can be indirect impacts to residential taxpayer. The time staff spend managing a particular grant is time not spent on another tasks, it is imperative that not only our monetary resources, but our human resources align with District priorities.
Because of the role of staff are generally funded by residential taxes, it can be helpful to understand more about this aspect of service delivery.
Grant administration ensures projects are delivered as promised and comply with all funding requirements. It includes financial oversight, progress reporting, and ensuring that funds are used appropriately. For example, failing to meet reporting deadlines or other conditions could result in the District losing the grant or being required to return funds. Proper administration safeguards public money and ensures community projects are completed successfully.
Many grants are designed to focus on specific outcomes, such as building infrastructure, and prioritize funding for materials and equipment. Labour costs can be excluded, leaving the District responsible for providing the necessary staff time or hiring contractors. This is why the District carefully plans how to allocate resources before applying for a grant, ensuring we can fulfill both the grant’s requirements and the project’s needs not only for the initial delivery but also on an ongoing basis. For example, ongoing maintenance is typically borne by the District.
If a grant application is not approved, the project may need to be delayed, scaled back, or funded through other sources, such as taxes or reserves, if it’s a high priority. Staff always evaluate the likelihood of success before applying, focusing on grants where the benefits outweigh the risks and effort.
Grant-funded projects represent significant financial savings for residents. For example, the Little River Crossing project is predominantly funded by federal and provincial grants, meaning taxpayers only cover a small fraction of the cost. Celebrating these successes highlights the District’s efforts to bring value to the community and demonstrates how your tax dollars are being stretched to achieve more.