Kelowna council to consider final budget with 4.72% tax increase next week

Kelowna council’s weekly meeting on Monday afternoon will be a big one as they make their final considerations for the city’s 2024 budget.

The budget comes with a proposed tax increase of 4.72%, which works out to a $112 increase to the average home owner’s annual bill.

This is the City’s first budget under the new service-based budgeting model, aimed at providing greater clarity and understanding of service delivery costs, along with where resources are needed.

City Manager Doug Gilchrist says it ensures that budget allocations directly support the City’s goals and objectives.

“By linking resources to specific services or outcomes, it becomes easier to track progress and evaluate the effectiveness of spending,” he explained.

“It also promotes transparency in budgeting decisions and allows for greater flexibility to reallocate resources based on changing priorities or emerging needs.”

The City notes that the 4.72% tax increase includes the continuation of a 1% public safety levy to help fund the addition of 16 RCMP officers, six firefighters and six bylaw positions.

“This year’s budget focuses on enhancing essential services, addressing our community’s highest needs and keeping pace with our city’s growth,” added Gilchrist.

“Actively aligning resources with where they will have the greatest impact ensures accountability, efficiency and ultimately a healthy, thriving community.”

Highlights of the 2024 budget include:

• $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
  • $3.9 million for the rail trail to greenway expansion.
• $28.3 million in parks improvements and development, including $18.4 million for parkland acquisition.
• $35,000 to craft a comprehensive five-year housing strategy to diversify housing forms for current and future residents.
• $700,000 to fund a new internal social development function to address homelessness.
• $9 million to implement proactive initiatives to tackle wildfire and flood mitigation. An additional $400,000 will be used to introduce a new home energy retrofit support service, fund incentives for low-carbon transportation and buildings, and implement initiatives to enhance the urban tree canopy.

The City says 25% of its operating and capital costs come from annual taxation on average, and the proposed tax demand for 2024 is $191.2 million.

Other revenue sources include reserves, grants and income from user fees, including those from self-funding business units like Kelowna International Airport and City utilities.