2024 Budget enhances essential services, with a focus on community priorities

News Release

Following today’s all-day deliberations, Kelowna City Council has approved the 2024 preliminary budget. 

This year’s budget is a shift from traditional budgeting to service-based budgeting, which provides greater clarity of services offered to the community and their associated costs. The new approach not only facilitates more thoughtful discussion and review of service levels, but also gives Council a better understanding of how, where and when the City can redeploy finite resources to areas of need.

“I am excited about the move to a Service-Based Budget for our city as it will help us target investments that will improve the quality of life for all residents.” said City Manager Doug Gilchrist. “I am confident that our strategic ability to make sound financial decisions for the collective good is one of our greatest strengths. It is also our greatest responsibility.”

Based on the average value single-detached home in Kelowna, Council has approved a $112.74 increase to property taxes. The 4.75 per cent increase – or $9.39 per month – includes the continuation of a one-per-cent public safety levy to fund the addition of sixteen new RCMP members (5 out of 16 members are funded through the public safety levy), six firefighters (4 out of 6 firefighters are funded through the public safety levy) and six bylaw positions (2 out of 6 positions are funded through the public safety levy).

Kelowna’s 2024 property tax increase remains well below the average increase being considered throughout the province. Unlike higher levels of government, the City has a legal obligation to not run a deficit. Maintaining its financial health is prioritized through a corporate priority of Active Financial Management. The 2024 Budget maintains the City’s commitment to keep the tax rate as low as possible by ensuring expenditures and revenues are closely aligned. 

The total 2024 preliminary budget is $562.7 million. Of that, the gross taxation demand is $190 million. Once budget carryovers are approved, and the financial plan is finalized in April, only approximately 25 per cent of the City’s 2024 operating and capital costs will come from annual taxation. This is in-line with the City’s commitment to seeking own source revenues and partnerships to fund services, reducing the burden on taxpayers. Other revenue sources include reserves, grants, and income from user fees including those from self-funding business units such as, Kelowna International Airport, the City’s water and wastewater utilities and solid waste operations. 

Development Cost Charge revenue for 2024 will total to $34.9 million and will fund over 30 key infrastructure projects to accommodate growth.

“Budget priorities for the year continue to be shaped and guided by Council Priorities, the Imagine Kelowna vision, the citizen survey, the Official Community Plan, the 2030 Infrastructure and 10-Year Capital Plan, and our annual public progress reporting.” said Gilchrist. “Through these Council approved plans and strategies, the Budget prioritizes investments in capital delivery to meet growth in the community.” 

Public safety continues to be a top priority for the City and residents. In addition to new 2024 investments, which support public safety resources to keep up with pace and growth, this service area continues to be the City’s largest investment at 35% of the general operating budget.

To keep up with growth and development, the City is investing $20.2 million in transportation infrastructure projects, including $4.7 million in enhancing, maintaining, and expanding active transportation networks; $1 million to commence transportation upgrades in preparation of the redevelopment of the Parkinson Recreation Centre Park and $3.9 million for the rail trail to greenway expansion.

Key investments also include the commencement of some of the most ambitious capital and infrastructure projects to date, such as the Building a Stronger Kelowna suite of recreational facilities, which will see capital investments of over $14.3 million this coming year. 

Council’s priority of addressing Homelessness will see creation of a new social services function with an investment of $700,000, while funding has also been approved to craft a comprehensive five-year housing strategy to create actionable activities to diversify housing forms for current and future residents.

To help combat the growing impacts of climate change, the approved 2024 Financial Plan will provide capital investments that total to over $8.9 million to implement proactive initiatives to tackle wildfire and flood mitigation. An additional $400,000 will be used to introduce a new financial incentive program to residents and businesses that participate in renewable and efficiency programs. 

Carryover requests will be presented to Council in March and the final tax demand will be decided by Council in April 2024.

To review the 2024 financial plan and for more information about the City of Kelowna budget, visit kelowna.ca/budget.