Capital Expenditure Programs and Financial Plans

Regional districts and municipalities are required to adopt annual financial plans, that describe, among other things, capital expenditures for the next 5 years.  Regional district plans are referred to as capital expenditure programs, and municipal plans are referred to as financial plans.   These plans govern what capital expenditures – such as acquisition of parks, development of greenways, upgrading of sewage treatment – the local government implements every year. 

The plans are important: capital expenditures that are not part of the plan are forbidden except in emergency circumstances.  The plans will also govern the amount the local government is allowed to raise through development cost charges for projects such as sewage treatment, storm water upgrades or parks.  Thus, it is important that these plans be fully integrated with official community plans and liquid waste management plans.  (The Local Government Act actually requires consideration of financial plans and waste management plans during the passage of official community plans.)

Capital expenditure plans are also an opportunity to enshrine basic smart growth principles (e.g. avoiding sprawl by developing more compact communities with mixed uses and amenities in close proximity).  Smart growth tends to impose lower costs on capital development, by avoiding the need to service new sprawling developments.  Capital investment plans can:

·          focus on improving existing facilities instead of approving new infrastructure,

·          set priorities and time horizons for approval of new services,

·          place geographical limits on new infrastructure,

·          restrict new servicing to areas already planned to receive growth,

·          ensure that developers pay the true costs of new infrastructure required for their developments through development cost charges.

Related Guide Pages:

·          Local Government Act

·          Local Government Planning

·          Official Community Plans

·          Storm water and Sewage

·          Parks and Greenways Planning

·          Development Cost Charges