Council approves City’s inaugural service-based budget

May 6, 2024

Kelowna City Council approved the City’s final 2024 budget at its regular Council meeting on Monday, May 6. This is the City’s first financial plan under its new service-based budgeting model.

Also known as performance-based budgeting, the transition from traditional budgeting is designed to promote a more transparent and strategic approach to resource allocation, leading to more efficient decision making, improved outcomes and better use of resources.

"The adoption of service-based budgeting underscores our dedication to digital transformation and leveraging data-driven insights for decision making,” said City Manager Doug Gilchrist. “This approach aligns with our commitment to public progress reporting and also ensures optimal resource allocation for the greatest community impact."

Of the $854.9 million total budget, 2024 taxation revenue accounts for approximately 22 per cent, or $191.2 million. The 4.72 per cent adopted tax demand is based on the amount needed to balance the budget once the City’s other revenue streams, including grants, reserves, and user fees have been applied.

Based on the City portion of an average residential property tax bill in Kelowna, this translates to an additional $112 per year or $9.33 a month. City business operations that are 100 per cent self-funded, with no impact to the taxpayer, include Kelowna International Airport and the City’s water utility, parking and solid waste services.

“As stewards of public funds, active financial management isn't just a strategy; it's a responsibility,” added Gilchrist. "We remain committed to finding alternative funding sources to keep the tax rate as low as possible while delivering the services our community needs and expects both now and in the future.”

Accounting for approximately one third of the operating budget, community safety continues to be a top investment priority. Additional key investment areas include:

Advancing Social Development to address homelessness and outdoor sheltering response.
Keeping Kelowna moving by investing in more transit infrastructure and prioritizing sustainable transportation and shared mobility.
Addressing the impacts of climate change by investing in proactive ways to tackle wildfire and flood mitigation, as well as introducing a new home energy retrofit support service, incentives for low-carbon transportation and buildings, and initiatives to enhance the urban tree canopy.
Improving how citizens do business with the City through digital transformation strategies that leverage technology to create more access and efficiency for residents and businesses.

“We're committed to delivering a budget that not only balances the books but also enriches lives, fosters community, supports business and ensures that our city remains strong, healthy and vibrant for our future generations,” said Melanie Antunes, Manager, Financial Planning.

Kelowna’s tax bill, which will be distributed in late May, includes other levies the City collects on behalf of the Province, the Regional District of Central Okanagan, Okanagan Library, and BC Assessment Authority. Property taxes are due by July 2. There is a legislated, non-discretionary penalty of 10 per cent for late payments. In addition to cash, cheque, debit and online banking, property tax payments can also be made through credit card.

Property owners are reminded that the Homeowner Grant program is now provided through the Province of BC. To apply for a retroactive or new grant visit www.gov.bc.ca/homeownergrant. The City has received the Government Finance Officers Association’s Distinguished Budget Presentation Award for 22 years in a row. The award recognizes achievement in meeting the highest principles of governmental budgeting.

To learn more about the 2024 budget and sign up for budget e-bulletins, visit kelowna.ca/budget.