Kelowna’s 2025 Budget: Keeping taxes low, services strong, and growth on track

On December 5, Kelowna City Council approved the 2025 preliminary budget. If you’re curious about what tax dollars are funding and how the City is planning to keep pace with our community’s growth, here’s more details and what it could mean for you. 

A different way to look at the budget 

This year’s budget combines operating and capital costs into service areas. So instead of seeing numbers broken down by departments, the City’s approach highlights the true cost of services like parks, recreation, and transportation – giving a clearer picture of where taxes are being prioritized. 

Notably, the City has identified $3 million in efficiencies – with $2.4 million directly reducing the impact on general taxation. And as always, Kelowna is working hard to fund services through sources other than property taxes, like grants, user fees, and reserves. 

The bottom line: what does it mean for you? 

For the average single-family home in Kelowna worth $973,000, the 2025 budget means an increase in property tax of $107.80 for the year – that’s about $8.98 per month. With a tax rate increase of 4.34 per cent, Kelowna continues to sit below the provincial average. 

It’s important to note that, unlike provincial or federal governments, the City cannot run a deficit by law. This means careful planning to ensure revenues and expenses align while keeping tax rates as low as possible. 

These graphs show where Kelowna’s property tax sits relative to other BC municipalities: 

Big investments to support a growing city 

The total 2025 budget sits at $839.3 million, but here’s the breakdown: 

• Less than 25% of the total cost comes from property taxes ($204.7 million). 
• Most of the funding comes from alternate sources like grants, reserves, and fees collected from services such as Kelowna International Airport, utilities, and parking. 

So, where’s that money going? Here are the highlights: 

Transportation that works for everyone 

To keep up with our growing community, the City is investing $89.7 million in multi-modal transportation projects. This includes: 

• $5 million to improve active transportation (think bike lanes and walking trails). 
• $8.2 million for transit improvements. 
• Road upgrades, safety measures, and overall infrastructure improvements. 

Building a Stronger Kelowna 

If you’ve been hearing about Kelowna’s ambitious recreation projects, this year’s budget continues that momentum. More than $32.2 million will be invested in the Building a Stronger Kelowna suite of facilities, which will deliver new recreational spaces in Glenmore, Rutland, Mission, and Central Kelowna. 

Public safety is a priority 

Safety remains front and centre, with 22% of the general fund expenditures budget going toward public safety services. Highlights include: 

• Continuing the one-per-cent public safety levy to partially fund the addition of four firefighters, five bylaw officers, and eight RCMP officers. 
• Investing in new protective services facilities, equipment, and RCMP contract costs. 

Sustainability in action 

The City is putting $2.6 million toward projects that protect our environment and make operations energy efficient, including: 

• Wildfire mitigation programs. 
• Energy-efficient building upgrades and lighting improvements. 
• Expanding electric vehicle infrastructure and carbon-neutral initiatives. 

Digital transformation 

To make services smoother and more accessible for citizens, $4.7 million is set aside for digital improvements. This includes: 

• Upgrading the 911 system for emergency calls. 
• Boosting cybersecurity. 
• Enhancing online access to City services. 

What’s Next? 

While the preliminary budget is approved, the final numbers will take shape in the coming months.  

Carryover requests are expected in March, and the final tax demand will be confirmed in April 2025. 

If you’re interested in digging deeper into the 2025 financial plan or exploring more about Kelowna’s budget, visit kelowna.ca/budget.