Metro Vancouver cuts $364M from budget, delays $1.1B in new infrastructure | Daily Hive

Metro Vancouver Regional District cuts $364 million in operating costs and $1.1 billion in capital spending

Headquarters office of Metro Vancouver Regional District. (Kenneth Chan/Daily Hive)

On Wednesday, after months of growing public and media scrutiny, the board of directors for Metro Vancouver Regional District approved substantial cuts to the regional government’s operating and capital budgets.

There will be operating budget savings of $364 million in the 2026 budget and 2026-2030 five-year financial plan.

Previously, the regional district had planned for five per cent annual increases to the regional district’s portion of residential property taxes from 2026 to 2029, with average household property taxes growing from $875 in 2025 to $918 in 2026, and reaching $1,063 in 2029.

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However, the cuts approved by the board — comprised of the region’s mayors and select city councillors — reduced the annual rate increases to 2.5 per cent in 2026 and three per cent in 2027, and retained the five per cent hikes in 2028 and 2029. This produces average annual savings of between $22.00 and $45.00, reducing the average annual tax paid to a range between $896 in 2026 and $1,018 in 2029.

This annual charge on households funds the region’s supply of drinking water, sewerage connections and wastewater treatment plants, solid waste/landfill management, regional parks, regional land use planning, and other programs and services.

Metro Vancouver Regional District

“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 board and the Mayor of Burnaby, in a statement.

“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.”

As for capital cost reductions, the board approved deferring $1.1 billion in infrastructure projects in the 2026-2029 capital plan to a later date.

This includes $249 million in cuts to water infrastructure projects, with the majority coming from delaying capacity upgrades to the Coquitlam Lake Water Supply and Coquitlam Water Main. In a new regional district staff report prepared ahead of this week’s board meeting, staff with the regional district warn that with these project delays, there may be a need for more stringent summer water use restrictions during drought conditions.

The majority of the interim infrastructure cost savings — totalling $799 million — stem from sewerage treatment-related projects. Most of these savings are attributed to the deferral and phasing of some components of the new Iona Island Wastewater Treatment Plant, along with delays to the Northwest Langley and Annacis Wastewater Treatment Plant projects. An additional $8 million in savings will come from the reduced reliance on consulting firms and the decision not to pursue hydrogen truck acquisitions.

Instead, the regional district will now adjust the timing of projects, based on deliverability and market conditions. It will also reduce business support costs, and the scope across its departments.

What was approved this week are the findings of a cost and efficiencies review that began in November 2024.

These findings will now serve as inputs for the 2026 budget and the 2026–2030 financial plan. The board is scheduled to review and grant final approval for the 2026 budget and five-year financial plan in October 2025.

“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 John McEwen, the vice chair of the board and the Mayor of Anmore.

“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.”

The regional district initially came under heightened scrutiny due to cost overruns and delays associated with the new North Shore Wastewater Treatment Plant.

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