CRD Ranked 2nd ‘Least Efficient’ District in B.C., Urgent Reforms Needed

URGENT UPDATE: The Capital Regional District (CRD) has been labeled as the second “least efficient” district in British Columbia, according to a damning report by the Canadian Federation of Independent Business (CFIB). This alarming assessment, released just this week, highlights a significant gap between the district’s rising spending and the value received by local businesses.

The CFIB’s 38-page report reveals that the CRD, along with the Sunshine Coast, Cariboo, Mount Waddington, and Alberni-Clayoquot regional districts, is overspending at a time when small businesses are struggling to stay afloat. The report indicates that regional district spending in B.C. has surged faster than population growth, inflation, and property taxes, leading to mounting financial pressure on local enterprises.

“Regional districts are massively overspending and deserve more scrutiny,” said Ryan Mitton, CFIB’s director of legislative affairs for the province. He emphasized that small business owners are not receiving adequate value for their tax contributions, especially as they face challenges from U.S. tariffs.

Between 2018 and 2023, the CRD’s administrative costs skyrocketed by 108 percent, while overall spending grew by 67 percent. In stark contrast, the district’s revenue only increased by 29 percent. This imbalance is particularly concerning given that the CRD employs over 1,000 staff, a workforce nearly eight times larger than that of the similarly populated Fraser Valley Regional District.

The CFIB also criticized the CRD’s provisional budget for 2025, which has ballooned to $872 million, marking a $95 million increase from the previous year. The report urges immediate reforms to focus on essential services, identify cost-saving opportunities, and reduce administrative expenses, all to alleviate the tax burden on small businesses.

In defense of the budget, Cliff McNeil-Smith, chair of the CRD, stated that the district allocates a smaller portion of its budget to administrative costs than many other districts. He explained that the increased contributions are necessary for long-term value, creating jobs and providing essential services.

“Our costs reflect a commitment to delivering critical infrastructure that benefits the region,” McNeil-Smith said. He highlighted recent initiatives, including improvements in wastewater treatment, affordable housing, and health infrastructure, as evidence of the CRD’s dedication to enhancing community services.

As businesses brace for potential tax hikes, the CFIB’s report has sparked urgent conversations about the future of the CRD. With Nanaimo, North Okanagan, Peace River, Fraser Valley, and qathet ranking as the top five “most efficient” regional districts, the pressure is mounting for the CRD to reassess its spending priorities.

WHAT’S NEXT: Stakeholders are calling for immediate action from the CRD to address these inefficiencies and refocus on delivering essential services. Business owners and community members alike are urged to stay informed as discussions unfold, impacting the financial landscape of the Capital Region.

Stay tuned for further updates as this critical issue develops.