2025 Budget invests in capital projects, infrastructure and public safety

News release

Following today’s budget deliberations, Kelowna City Council has approved the 2025 preliminary budget.

The 2025 budget presents the combined operating and capital budgets together by service area, offering a comprehensive view of our investments in critical assets such as buildings and equipment, as well as the budget needed to make them productive. This service-based budgeting approach, introduced last year, allows the City to break down costs by service rather than department to show the value and true cost of the services it provides.

“Our commitment to prudent financial management and sustainable growth is at the heart of this budget,” said City Manager Doug Gilchrist. “Not only is the City in an enviable financial position maintaining a low and competitive tax rate, but we have identified efficiencies totalling $3 million to be redeployed to priority areas, of which $2.4 million directly impacts general taxation. We’re also working diligently to generate the majority of our revenues from sources other than property taxes.”

Based on the average value of a single-detached home in Kelowna, Council has approved a $107.80 increase to property taxes. The 4.34 per cent increase – or $8.98 per month – 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. The City’s corporate priority of Active Financial Management ensures that all areas of the City maintain a focus on efficient and effective deployment of resources. The 2025 Budget retains the City’s commitment to keep the tax rate as low as possible by ensuring expenditures and revenues are closely aligned.

The total 2025 preliminary budget is $839.3 million, with the gross taxation demand of $204.7 million making up less than 25 per cent of the City’s 2025 operating and capital costs. This tax demand reflects the City’s commitment to reduce the burden on taxpayers and fund services through alternate revenue sources, including reserves and grants. Income is also generated from user fees, including those from self-sustaining business units such as the Kelowna International Airport, Parking, the City’s water and wastewater utilities, and solid waste operations.

“Budget priorities for the year continue to be shaped and guided by Council Priorities, the Imagine Kelowna community 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, more than doubling our annual investment rate from previous years to meet growth in the community.”

Capital projects are a focus of the 2025 budget. The City is investing $89.7 million in multi-modal transportation infrastructure projects and operations to keep up with growth and development. This includes $5 million for enhancing, maintaining, and expanding active transportation networks; $8.2 million for transit; and the balance for multi-modal road improvements and safety.

Key investments also include the continuation of some of the most ambitious capital and infrastructure projects to date, such as the Building a Stronger Kelowna suite of recreational facilities in Central Kelowna, Glenmore, Mission and Rutland, which will see capital investments of over $32.2 million this coming year.

Public safety continues to be a top priority for the City and residents, making up nearly 22 per cent of general expenditures. The 2025 budget includes the one-per-cent public safety levy to partially fund the addition of four firefighters, five bylaw officers, eight RCMP officers, and three specialized positions. The budget also includes investments in a new protective services facility and equipment, as well as funds to cover increased costs for RCMP contracts.

To make City facilities and services more sustainable, $2.6 million has been marked for wildfire mitigation, water efficiency programs, as well as capital projects that make our operations and buildings more energy efficient, including lighting upgrades, electric vehicle infrastructure, and carbon-neutral initiatives. 

The City is also investing $4.7 million in digital transformation measures to improve citizen access to services, upgrade our 911 system, and improve operational efficiency and cybersecurity.

Carryover requests will be presented to Council in March and the final tax demand will be decided by Council in April 2025.

To review the 2025 financial plan and for more information about the City of Kelowna budget, visit kelowna.ca/budget.