TODAY: Budget 2025 Community Open House On Wednesday, April 2, 2025, 2:30 p.m. to 7:30 p.m.

This year, there are significant cost increases in essential services, particularly for policing and emergency communications (ECOMM), which account for 7.9% of the total increase. Sooke’s tax rate remains among the lowest on Vancouver Island, and while this year’s increase is higher, we expect future increases to stabilize.

Since 2012, the District of Sooke’s average annual municipal tax increase has been 4.3%. While individual years may see higher or lower adjustments depending on economic conditions, infrastructure investments, and service demands, this long-term average reflects the District’s efforts to balance financial sustainability with the needs of a growing community.

The items accounting for the $213,286 in discretionary expenses for 2025 are:

• Fire Fighter, wages and benefits (June start): $86,931
• Parks Labourer (increase auxiliary hours to full time): $38,055
• Auxiliary Financial Accountant, supplemental for coverage and continuity of service: $21,525
• Auxiliary Clerk Support, supplemental for coverage and continuity of service: $10,000
• Fire Rescue Services operating expenses: $7,475
• Corporate training and education: $10,000
• Council conference and travel: $10,000
• Parks operating expenses: $29,300

Currently, a 1% increase generates approximately $123,000 in revenue for the District. In comparison, a 1% increase in Saanich raises $1.75 million. This highlights the challenges smaller communities like Sooke face in maintaining and expanding services.

While percentages can make interesting headlines, they don’t always effectively communicate the impact. For example, while a 1% tax increase in different communities may seem comparable, the absolute revenue generated varies greatly depending on the size of the community’s tax base. Smaller municipalities, like Sooke, have a much smaller base, which means that even small increases can fall short in addressing the growing demand for services.

Reducing the tax increase would require using more reserve funds or cutting services. While reserve funds can provide a temporary solution, using them for ongoing operational costs creates significant risks, including:

• Higher future costs: Delaying projects and deferring maintenance or service delivery due to a reduced tax increase may result in higher costs down the road. Deferred maintenance or delayed infrastructure upgrades often lead to more expensive repairs or replacements in the future.
• Reduced emergency preparedness: Relying on reserves for operational expenses means fewer funds are available for unforeseen emergencies or crises. This limits the ability to respond effectively to unexpected events, leaving the District more vulnerable to financial strain during emergencies.
• Less flexibility for future investments: Drawing from reserves reduces the financial flexibility to invest in infrastructure and meet long-term community needs. This can hinder the District’s ability to maintain service levels and invest in essential projects that support the growing community, leading to a backlog of infrastructure needs.
• Diminished reserves for future use: Using reserve funds for operational costs can diminish the District’s ability to respond to future unexpected events or economic downturns. It limits the financial cushion needed to maintain stability in the long term, particularly in uncertain financial climates.

In summary, while reducing taxes in the short term may provide immediate relief, it can create long-term challenges, including higher future costs, reduced resilience, and less capacity to invest in essential services and infrastructure.

Capital projects (such as roads, parks, and other essential infrastructure) are funded through a combination of sources to ensure the long-term sustainability and development of the community. These projects often require substantial investment, and the funding sources include:

• Grants from senior levels of government: These grants are a key source of funding for capital projects, providing much-needed financial support for infrastructure development. Senior governments—such as provincial and federal authorities—offer grants to municipalities for projects that align with broader regional or national priorities, such as transportation improvements, emergency management programs, and climate resilience. However, grant availability can vary from year to year, and competition for these funds is often high.
• Reserve funds: These funds are set aside to support future infrastructure needs and respond to unforeseen emergencies, providing flexibility and resilience in times of economic uncertainty. Thoughtful management and replenishment of reserves are essential to maintaining this stability. While reserves can help fund important capital projects, a balanced approach ensures that the District remains prepared for emerging priorities, economic shifts, and unexpected challenges. By thoughtfully utilizing and maintaining reserve funds, the District can continue to invest in critical infrastructure and community enhancements while safeguarding financial sustainability for the future.
• Debt financing: Municipalities can use debt financing for larger capital projects, enabling the cost to be distributed over the lifespan of the infrastructure. This approach ensures that both current and future generations who benefit from these assets contribute to their funding. Debt financing serves as a valuable tool for advancing community development and supporting essential infrastructure investments. In British Columbia, municipalities follow a well-structured long-term borrowing process to responsibly finance capital projects. Careful financial planning also accounts for interest costs, ensuring sustainable budgeting and the continued delivery of high-quality municipal services.

Together, these funding sources help ensure that capital projects are properly financed while managing financial risks. However, it is important to strike the right balance between grants, reserves, and debt to maintain fiscal health, avoid over-reliance on any one source of funding, and ensure that the District can continue to invest in infrastructure and services for the community.

Sooke currently has the third-lowest municipal tax rate on Vancouver Island. Even with this year’s increase, Sooke will remain among the most affordable municipalities in the region.

However, direct tax rate comparisons between municipalities are not apples-to-apples. Different communities have unique funding models, service responsibilities, and revenue structures, which influence property tax rates. Here are a few key differences:

• Recreation Services: While some municipalities fund recreation centres directly through property taxes, SEAPARC Recreation Centre is funded through taxes collected by the Capital Regional District (CRD) rather than the District of Sooke’s municipal budget.
• Policing Costs: In communities under 15,000 residents, the federal government covers 30% of policing costs, leaving the municipality responsible for 70%. However, because Sooke’s population now exceeds 15,000, the District must cover 90% of RCMP policing services, leading to a greater financial impact on local taxes.
• Fire Services: Some municipalities rely on a volunteer-only or paid-on-call fire department model. In contrast, Sooke operates a composite fire department, with both career firefighters and paid-on-call firefighters. While this increases operational costs, it improves emergency response times and contributes to more affordable home and property insurance rates. (Learn more about Public Fire Protection Classification with the Fire Underwriters here: Public Fire Protection Classification).
• Infrastructure Maintenance: Larger municipalities often have well-established utility reserves to support infrastructure upgrades. Sooke, as a growing community, must balance service expansion and capital investment within a smaller tax base, meaning funding choices must be carefully prioritized.
• Garbage Collection: In some communities, garbage collection is a municipal service with a universal approach, such as weekly collection for all residents. However, in Sooke, garbage collection is handled privately, with residents paying for the service individually. The key benefit of this approach is that households have the flexibility to choose a garbage collection service that best suits their needs, offering a more customized solution. Additionally, this model currently works well in Sooke because the District’s ability to invest in the capital equipment required to manage a municipal garbage service is limited. Therefore, a privately managed system helps keep the service cost-effective for the community.

Balancing Service Levels and Costs

These differences highlight why direct tax rate comparisons can be challenging—each community’s budget is shaped by local service demands, financial realities, and funding responsibilities.

We acknowledge that some service levels in Sooke may be lower than in neighbouring communities. However, it’s also important to recognize that fewer services mean lower costs—you pay for less but receive less in return.

That’s why community feedback is essential in shaping the District’s budget. Each year, from mid-June to mid-August, residents are invited to participate in the annual budget survey. This survey provides an opportunity to help set budget priorities by identifying which services should be expanded, maintained, or reduced.

Have Your Say!

What services matter most to you? What investments should be prioritized? Let us know by taking the annual budget survey this summer. Your input helps shape the future of Sooke’s service levels and tax decisions.

Reserves are our community’s financial safety net. Using them now to lower taxes would reduce funds available for unexpected costs and limit our ability to invest in long-term projects. Responsible use of reserves ensures financial stability for future generations.

The District of Sooke is actively working to diversify its funding sources in order to reduce reliance on property taxes and ensure long-term financial sustainability. By exploring a variety of funding opportunities, the District can better support critical infrastructure, community services, and growth initiatives. A key strategy is the pursuit of grants and alternative funding sources, which help the District manage important projects without burdening taxpayers.

The District uses Development Cost Charges (DCCs) so that developers contribute to the cost of infrastructure improvements associated with new residential and commercial developments. These charges help expand the community’s infrastructure as it grows.

The District is also focusing on growing the local economy by investing in economic development initiatives and expanding the commercial tax base. These efforts aim to increase revenue from non-residential sources, helping to balance the financial needs of the community.

Additionally, the District is advocating for changes to the local government funding model through the Union of BC Municipalities (UBCM). This includes pushing for reforms that ensure a more sustainable and equitable funding structure for municipalities across the province, which would help communities like Sooke better manage their growth and infrastructure needs. For more information on the UBCM’s work on local government financial review, you can visit the UBCM website: Local Government Financial Review Working Group | Union of BC Municipalities.

The District is also advocating for increased utility revenues, which will provide a more stable funding source to support ongoing services, and may be an appropriate funding source for ECOMM call services.

These efforts to diversify funding not only offset the reliance on property taxes but also ensure the District is prepared to meet both current and future challenges.

For an up-to-date summary of the District’s grant application status and the dollar value of recent applications, please visit the District Grant Application Status Summary page.