Recent media coverage regarding regional Capital Regional District (CRD) tax increases has created some confusion for residents, and we would like to provide clarification on what Central Saanich property owners can expect to see on their 2026 property tax notices.
Overview of 2026 CRD requisition on property tax increase
The estimated increase on property tax notices for an average home in Central Saanich related to the CRD, Capital Regional Hospital District (CRHD), and regional sewer services is approximately $46.12, which represents a 5.22% increase. This figure reflects the CRD requisition, which is the portion of property taxes collected by the District on behalf of the CRD for regional and sub-regional services. Recently, higher figures were reported in media however they included municipal debt payments, which are separate from the CRD requisition and managed within the District’s financial plan.
Clarifying media reports and tax figures
A March 2026 media article cited a high CRD tax increase for Central Saanich. The actual CRD requisition for 2026 is mid-range among regional municipalities, which range due to variations in participation in CRD services and cost-sharing arrangements.
The $113 figure referenced in CRD financial documents includes annual debt servicing for both Central Saanich and CRD borrowing, with Central Saanich borrowing detailed separately in the District’s financial plan and is not part of the CRD requisition.
Distinction between CRD requisition and municipal debt
Municipal debt payments are not part of the CRD requisition and are not collected by the CRD. Instead, these payments represent borrowing authorized by the District for capital projects. Under provincial legislation, municipalities access long-term financing through the Municipal Finance Authority (MFA) using their regional district as an administrative conduit. Although this can cause municipal debt to appear in CRD financial summaries, the debt responsibility remains with the municipality that authorized it. For 2026, Central Saanich is not implementing new taxation increases related to municipal borrowing, as debt servicing is accommodated within the existing Asset Management Plan funding strategy, ensuring sustainable infrastructure investment without additional tax pressure.
FAQs
Why borrow through the CRD?
Municipalities use pooled bond financing coordinated by the Municipal Finance Authority, which offers several benefits including:
- Lower interest rates
- Equitable cost distribution for long-term infrastructure
- Consistent regional financial oversight
This borrowing method requires municipalities to use their regional district as an administrative channel, which accounts for the presence of municipal debt in CRD financial summaries. However, the responsibility for this debt remains with the individual municipality.
What projects does the borrowing fund?
In 2026, borrowed funds supported the renewal and improvement of essential infrastructure projects, including Brentwood Bay sewer upgrades, improvements to Keating Cross Road, and the expansion of the Wallace Drive bike lane in Saanichton. These investments aim to serve the community well into the future.
What will the final tax rates be?
The estimated increase on property tax notices for an average home in Central Saanich related to the CRD services is approximately $46.12, which represents a 5.22% increase. Final tax rates and exact impacts may vary slightly as BC Assessment completes the final assessment roll and the District finalizes tax rates.
We hope this distinction between CRD requisition increases and municipal debt help residents understand what to expect on their 2026 tax notices.
