| Metro Vancouver to Significantly Reduce Spending Following Services and Cost Efficiencies Review | Metro Vancouver to Significantly Reduce Spending Following Services and Cost Efficiencies Review | | <div class="ExternalClassED06385AFF764BC190CD26C87412FA74"><p></p><p>The Metro Vancouver Board completed its Services and Cost Efficiencies Review today, directing the organization to apply $364 million in operating budget savings to its 2026 Budget and 2026-2030 Five-Year Financial Plan. This will reduce the projected 2026 household rate increase by half. The full plan will be developed over the year and brought to the Board for approval in October.</p><p>“Over the past few months, Metro Vancouver has done a detailed analysis of our operating budget and more than 300 infrastructure projects, identifying significant opportunities to reduce spending," said Mike Hurley, Chair of the Metro Vancouver Board of Directors. “This carefully balanced approach demonstrates our commitment to affordability for residents as we meet the needs of a growing population and deliver the services our region depends on."</p><p>Previous projections for 2026 rates were a 5 per cent increase to the average household rate over 2025, which will now be reduced to a 2.5 per cent increase. The increase for 2027 will be reduced from 5 per cent to 3 per cent.</p><p>Savings for the 2026 Budget and 2026-2030 Five-Year Financial Plan were found through: </p><ul style="list-style-type:disc;"><li>Adjusting timing of when projects will be delivered, based on deliverability and market conditions</li><li>Reductions in capital infrastructure spending across multiple programs</li><li>Reduced consulting services, business support costs, and scope across departments</li><li>Adjusted workplans and focused on resource optimization and efficiency strategies</li><li>Reducing debt servicing costs as a result of $1.1 billion in adjustments to infrastructure spending</li></ul><p>Advisors from the accounting firm KPMG validated Metro Vancouver's approach, confirming that the framework and methodology align with leading industry practices for identifying operational cost savings.</p><p>“By finding ways to optimize resources and adjust to our current realities, we're addressing the cost concerns expressed by residents while maintaining the long-term sustainability of our operations," said Metro Vancouver Board Vice Chair John McEwen. “It's like maintaining a home on a budget. We're prioritizing essential repairs, phasing improvements over time rather than renovating everything at once, and doing more work in-house instead of relying on contractors."</p><p>In 2025, households pay on average $875 for all of Metro Vancouver's region-wide services, which include: drinking water, wastewater management, solid waste management, air quality regulation, regional parks, regional planning, and Invest Vancouver. Based on the new projections for 2026, households will pay on average $896, down $22 from the previous projections.</p><p>Metro Vancouver will now enter its regular budgeting process and the Board will consider and vote on the final proposed 2026 Budget and 2026-2030 Five-Year Financial Plan in October.</p><p><strong>More Information:</strong></p><ul style="list-style-type:disc;"><li><a href="https://subscription.metrovancouver.org/sites/Media/default.aspx?jg=15065798-b759-4b65-b253-fda4efe78d35&eg=28c11dd4-5b02-4b7e-a8af-091f0cf9d463&lg=89d4c936-b4fc-4884-adf3-8ca3d9dc90aa<p=c">A full report on Metro Vancouver's Potential Cost Savings by Department</a></li><li><a href="https://subscription.metrovancouver.org/sites/Media/default.aspx?jg=15065798-b759-4b65-b253-fda4efe78d35&eg=28c11dd4-5b02-4b7e-a8af-091f0cf9d463&lg=7c0a29f3-93a5-4670-bd64-597f76d82b0c<p=c">Video recording of the April 9, 2025 Board Budget Workshop</a></li><li><a href="https://subscription.metrovancouver.org/sites/Media/default.aspx?jg=15065798-b759-4b65-b253-fda4efe78d35&eg=28c11dd4-5b02-4b7e-a8af-091f0cf9d463&lg=72afae1b-5049-4e60-bf86-abf20b76839b<p=c">About the Services and Cost Efficiencies Review and other reviews underway</a></li></ul><p><strong>Background: </strong></p><p>The Services and Cost Efficiencies Review was initiated on November 1, 2024, when the Board directed staff to identify potential operational cost savings in every department for consideration in the 2026 Budget and the 2026-2030 Five-Year Financial Plan. As part of this review, <a href="https://subscription.metrovancouver.org/sites/Media/default.aspx?jg=15065798-b759-4b65-b253-fda4efe78d35&eg=28c11dd4-5b02-4b7e-a8af-091f0cf9d463&lg=e3a05c0c-5022-4cc1-857e-4364c8a95c3a<p=c">the Board voted in February</a> on the scope of programs and initiatives delivered by the Metro Vancouver Regional District.<br></p><p>Metro Vancouver will now enter its regular budgeting process and the Board will consider and vote on the final proposed 2026 Budget and 2026-2030 Five-Year Financial Plan in October.</p><p>Budget Timeline:</p><ul style="list-style-type:disc;"><li><em>Spring (current)</em> - Public input to support budget planning and a Board Budget Workshop on the financial plan, where the Board provides direction to staff on how to prepare the next budget</li><li><em>Spring-Summer</em> - Review of five-year capital plans (including what assets or infrastructure need upgrades or what needs to be built) and engagement with member jurisdictions on their own capital work</li><li><em>October</em> - Metro Vancouver Board of Directors considers next year's budget and five-year financial plan and approves as appropriate</li></ul><p>Summary of Proposed Change in Average Annual Household Rate Increases </p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:16.6667%;"><strong>Average Household Impacts and % Change</strong></td><td class="ms-rteTable-default" style="width:16.6667%;"><strong>2025</strong></td><td class="ms-rteTable-default" style="width:16.6667%;"><strong>2026</strong></td><td class="ms-rteTable-default" style="width:16.6667%;"><strong>2027</strong></td><td class="ms-rteTable-default" style="width:16.6667%;"><strong>2028</strong></td><td class="ms-rteTable-default" style="width:16.6667%;"><strong>2029</strong></td></tr><tr><td class="ms-rteTable-default"><strong>Current Five-Year Financial Budget</strong></td><td class="ms-rteTable-default">$875</td><td class="ms-rteTable-default">$918</td><td class="ms-rteTable-default">$965</td><td class="ms-rteTable-default">$1,013</td><td class="ms-rteTable-default">$1,063</td></tr><tr><td class="ms-rteTable-default"></td><td class="ms-rteTable-default"> </td><td class="ms-rteTable-default">5%</td><td class="ms-rteTable-default">5%</td><td class="ms-rteTable-default">5%</td><td class="ms-rteTable-default">5%</td></tr><tr><td class="ms-rteTable-default"><strong>Direction by Board for Updated Five-Year Financial Plan</strong></td><td class="ms-rteTable-default"> </td><td class="ms-rteTable-default">$896</td><td class="ms-rteTable-default">$924</td><td class="ms-rteTable-default">$969</td><td class="ms-rteTable-default">$1,018</td></tr><tr><td class="ms-rteTable-default"></td><td class="ms-rteTable-default"> </td><td class="ms-rteTable-default">2.5%</td><td class="ms-rteTable-default">3%</td><td class="ms-rteTable-default">5%</td><td class="ms-rteTable-default">5%</td></tr><tr><td class="ms-rteTable-default"><strong>Average Annual Savings</strong></td><td class="ms-rteTable-default"> </td><td class="ms-rteTable-default">$22</td><td class="ms-rteTable-default">$41</td><td class="ms-rteTable-default">$44</td><td class="ms-rteTable-default">$45</td></tr></tbody></table><p> </p><p>Over the last five years, Metro Vancouver has worked hard to keep rates as affordable as possible for residents, while also ensuring infrastructure and services meet the needs of a rapidly growing population. This has included limiting rate increases to as low as 3.2 per cent in 2021 and 3.5 per cent in 2022, despite the ongoing challenges of COVID-19. Also in 2023, more than $650 million in deferrals were identified within the 2024-2028 Five-Year Financial Plan capital program through the Financial Plan Task Force.<br></p><p><span style="font-size:10.5pt;font-family:calibri, sans-serif;color:#333333;">Metro
Vancouver currently has two additional reviews underway on governance and the
North Shore Wastewater Treatment Plant Program. Information on all of the
reviews, and comprehensive information on Metro Vancouver’s budget and
budgeting process, can all be found at <a href="https://subscription.metrovancouver.org/sites/Media/default.aspx?jg=15065798-b759-4b65-b253-fda4efe78d35&eg=28c11dd4-5b02-4b7e-a8af-091f0cf9d463&lg=bb457e3c-f52b-40f5-bd4a-22a8d1d7bf59<p=c"><span style="color:#356aa4;">metrovancouver.org/boards/reviews-underway</span></a>.</span><br></p></div> | 4/9/2025 7:00:00 AM | | Metro Vancouver Media Relations | media@metrovancouver.org | | |