Council approves $48.4 million carryover budget to build for the future
NEWS RELEASE
Council approves $48.4 million carryover budget to build for the future
Kelowna City Council approved the City’s 202 5 carryover budget at the Monday, March 1 0 regular Council meeting. The $ 48 .4 million carryover , which includes previously approved operating and capital projects span ning multiple years or that were not fully completed in 2024 , guarantees that projects can continue without interruption.
Major carryover projects include:
- $13.3 million for park development and improvements
- $5.9 million for road upgrades and active transportation
- $4.4 million for water and wastewater system upgrades and improvements
Carryover projects will not impact this year's property taxes since funding has already been collected through previous taxes, user fees, grants, and other revenues. The tax demand for 2025 remains consistent with the preliminary budget approved by Council in December 2024 : t he proposed tax demand of 4.34 per cent would add $107.80 to the average property tax bill.
Despite Kelowna having one of the lowest tax rates in the province, we are making significant investments in the community. Nearly 47 per cent of the $887.7 million preliminary and carryover budget is allocated for capital investments in public safety, underground utilities, transportation infrastructure, and recreation facilities—a level of investment that is expected to continue in the coming years.
Given our strong focus on building for the future , the City is changing how it collects money for multi-year projects. Starting in 2024, we began adopting a cash flow model to distribute the financial impact of large projects across multiple years. Instead of waiting to launch multi-year projects until the full project budget is raised, we will collect revenues and property taxes annually to match project spending for that year.
“Cash flow budgeting will remove a major obstacle for capital projects ,” says Melanie Antunes, Financial Planning Manager. “ Our aim is to keep tax demand stable while ensuring projects are funded each year based on what we deliver to citizens, rather than carrying project funds into the next budget. ”
Between 2024 and 2025, the City reduced its carryover budget by 83 per cent, from $279 million to $48 .4 million. This amount will decrease further in 2026 as the City fully implements cash flow budgeting and collects revenues and property taxes for project phases completed within the year.
The final budget, which will be reviewed by Council on April 28, 2025, will determine the final tax increase. Property owners will receive their tax notices in late May and can apply for the provincial Home Owner Grant. Taxes must be paid by July 2, 2025, to avoid late fees.
To review the 202 5 preliminary and carryover budget , visit kelowna.ca/budget.
