Overspending and under-budgeting are being partly blamed for a significant increase in contributions expected from partnering municipalities to the Vancouver Island Regional Library in 2024, according to the VIRL’s executive director.
Speaking to North Cowichan council at a recent meeting, VIRL’s executive director Ben Hyman said that the extent of the questionable fiscal management under a previous administration over the last 10 years has led to VIRL’s investments being “effectively spent.”
He said that a new auditor has been appointed and VIRL’s board is also re-establishing an audit and finance committee to deal with the issues.
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“But this obviously has a bearing on the development of the budget this year,” Hyman told council.
The VIRl’s budget is $38 million this year, which is an overall increase of 15 per cent over 2023, and local government levies will contribute $32.5 million towards it, with the rest coming mostly from the province.
Hyman explained that there are other cost pressures the VIRL is also facing this year, which are contributing to the dramatic increase in its budget.
They include a 22 per cent increase in wages and benefits, the organization’s biggest expense, in 2024 to $19.4 million, as well as a 37 per cent increase to leases, security and utilities and its facilities to $1.75 million.
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North Cowichan council asked that Hyman and Erin Hemmens, chair of the VIRL, speak to council after the organization, which operates 38 libraries on Vancouver Island, announced it will be expecting $2,136,000 in 2024 from North Cowichan, significantly up from the $1,793,000 the municipality paid in 2023.
That would translate into a one per cent tax increase for North Cowichan’s property owners in this year’s budget-building process.
Hyman said North Cowichan Mayor Rob Douglas wrote to the VIRL, as well as the leaders of a number of other municipalities, asking the organization to revisit its budget for 2024 to determine if contributions from local governments could be lowered.
He said the board did revisit the budget, but ultimately decided to retain it.
“Rest assured this is not a typical year for the VIRL and its budget process, and we also assure that revenue generation is a high priority and we’re exploring a number of opportunities,” Hyman said.
Coun. Tek Manhas, who represents North Cowichan on the VIRL’s board, said the municipality’s annual contribution to VIRL is a significant part of North Cowichan’s budget, and absorbing the extra costs will be quite a hit to taxpayers.
“We [the VIRL] did have discussions in-camera and open about the budget this year and we voted on it, and then we voted on it again, so it is what it is,” he said.