Islands Trust proposing 7.3% increase in 2025-26 budget

Derek Kilbourn

Sounder News

The Islands Trust is considering a budget increase of 7.3 per cent for Local Trust Areas for the 2025-2026 fiscal year.

The proposed budget was on the agenda at the December Islands Trust Council meeting. The draft 2025-2026 budget has $10.9 million in spending proposed across the Islands Trust.

This includes an operating budget of $10.7 million; a Projects budget of $490,000; and a Capital budget of $165,000. To help offset the required increases, the Island Trust is looking at making draws on three Reserve Funds, for a total Reserve draw of $913,000.

The draft operating budget for 2025-2026 is $149,000 lower than the budget approved for 2024-2025; and is 20 per cent ($1.8 million) higher than actual spending in 2023-2024.

Local Trust Area (LTA) taxes total make up $9.1 million of the draft budget. Tax revenues from LTAs will increase 7.3 per cent ($624,000) over last year’s budget.

The largest budgeted expense to Islands Trust remains staff salaries and benefits expense, at $7.1 million in the proposed 25/26 budget – representing 65 per cent of the overall draft budget. 2024-25 had a $6.6 million staff budget.

Factors influencing this expenditure line item include:

• Changes to staffing levels and complements from the previous budget:

• An increase to the salary and benefits cost for the new Chief Administrative Officer ($40,000)

• Addition of a temporary Policy Advisor for one year ($126,000) to carry on policy work during the completion of the policy statement review.

• Additional funds for the Islands Trust Conservancy Team Lead ($50,000); the Registered Professional Biologist  ($46,000); and GIS Coordinator ($32,000). As these positions were new in 2024/25, only part of the last fiscal year was paid towards them. This will be the first full year of paying for these positions. Trustee remuneration amounts are increasing to to $728,000 in the 2025/26 draft budget, compared to $710,000 in 24/25. The next Trust Council meeting is scheduled for March 2025, where the budget could be given final approval.

Tobi Elliott and Susan Yates are the elected Trustees for Gabriola, and both provided comment on the proposed budget.

Elliott is Vice-Chair of the Islands Trust Executive Committee, and sits on the Financial Committee which prepares the budget.

Yates also sits on the Financial Committee, representing the Islands Trust Conservancy.

Elliott acknowledged this budget is being drafted in a time of escalating costs and ever-increasing demand for services, saying it, “is definitely the most challenging part of this job.

“We aren’t through the budgeting process yet, as Trust Council must approve its 2025/26 Budget in March 2025.

“There are still expected to be changes so the anticipated tax levy is not final. Trust Council in December asked each committee to review their budget requests and provide any reductions for incorporation into the March budget.”

She said the Financial Planning Committee and the finance department staff do their best to trim any discretionary expenses, and, for the first time in many years, Trust Council looks to spend the entirety of its 2024/25 budget – leaving very little surplus as in every year previous.

“Which means we are either getting very good at forecasting and budgeting for actual operations, or realized costs are higher than anticipated, probably a mix of both.”

Elliott explained budgets for Local Trust Committee projects like Official Community Plan/Land Use Bylaw reviews, and housing projects, are not typically challenged or reduced by Council. This is because each Trustee recognizes the value of Local Trust Committee project work to each community.

“Projects such as the Gabriola OCP review are separate from budgeted costs of Local Trust Committee services, which are over the benchmark by 12% ($99,000), due primarily to increased legal costs.”

Legal costs are roughly 100 per cent over what had been budgeted for 2024/25.

Elliott said this is partly due to Trust Council last year approving intentionally reducing legal budgets last year to reduce tax increases in the Trust Area, with the understanding that overages would be funded by surplus.

“The forecasted overspending for all legal expense categories is $208,000 (98%) for general legal advice, bylaw enforcement litigation, and litigation defense. Some of these expenses will be recouped, such as the major court-ordered clean up of a Thetis Island property – one of the LTCs that I chair.

“One of the boons of a federation such as the Islands Trust is support for smaller communities like Thetis Island, whose tax base might not otherwise support legal action against a property that had been a dumping ground for years.”

Elliott also explained the Executive Committee oversees spending in operational areas such as communications and reconciliation with First Nations.

Each of these areas are requesting a budget of roughly $50,000 in 2025/26.

“The Islands Trust is just starting to realize the benefits of an in-house communications specialist. This position had previously been vacant for several years, and I hope constituents are seeing the difference.

“A communications strategy is finally in place with cohesive messaging, and staff have been supportive with projects such as the Gabriola OCP. We recognize the website needs drastic improvement, and I hope some budget can go toward that.

“For Reconciliation activities, we have an excellent Senior Indigenous Relations Advisor on staff, who anticipates continuing training on cultural safety ($27,000), and reconciliation-operations ($8,200 for honoraria, gifts, external advisors) and activities ($12,000 for legal review of protocol agreements, costs of associated signing ceremonies, working group costs).”

Some of the engagement for communities with First Nations is able to be funded through a one-time $150,000 grant over five years, given by the Ministry of Municipal Affairs in 2023.

Those funds must go toward for capacity funding so that First Nations can dedicate some resources to giving input on significant projects such as OCP reviews happening within their territories.”

Yates said, “I am pleased not just with the proposed Budget, but also with the process Trust Council underwent these past few months to arrive at a 7.3% increase.

“The Financial Planning Committee (FPC) met several times and reviewed all of the proposed Business Cases from Local Trust, Planning and Programs, and Executive Committees.”

The Financial Planning Committee has members from all of the Committees plus the Islands Trust Conservancy.

Yates said this past year’s discussions were federation-minded and supportive of the Conservancy, “which makes our work feel positive and forward-thinking.  Striving for common goals, despite differences in our approaches, reminds us why the Islands Trust exists in the first place.”

She said the Gabriola Local Trust Area is well-represented in the budget arena, “because Trustee Elliott speaks for Executive Committee projects and the Islands Trust Conservancy, and I represent the Conservancy. 

“We both endorse projects important to the Gabriola Trust Area and we both know how important it is to advocate for First Nations representation throughout the Trust Area.”

In the budget requests from Gabriola were $30,000 needed for Phase 3 of the Gabriola Official Community Plan Project, and $50,000 for the Reconciliation Action Plan for the Trust Area.  Both were approved.

Yates said, “I want to acknowledge and express my gratitude to the Directors of Planning, Programs, and Administration, and the Islands Trust Conservancy Manager, whose guidance and  support contribute enormously to the positive outcomes of Trust Council’s Budget Discussions.  They are the committed and creative engines behind the Business Plans we present to Council in order to get the funds needed to complete important projects and ensure continuity for planning and programs.

“From August until this December, Director of Administration (and Finance) Julia Mobbs, was also the interim CAO.   I’ve never seen anyone do two full-time jobs with such grace, fortitude, and success,  holding Council together during some very trying times while simultaneously guiding us through Financial Forecasts and Budget Sessions to where we can accomplish good work over the next year.”