Kelowna Unveils Historic $1B Budget, Tax Increase Under 5%

BREAKING: The City of Kelowna is making headlines as it prepares to adopt a groundbreaking $1.052 billion budget for 2026, marking its entry into the $1 billion club. This unprecedented financial plan focuses on “stability and progress” and aims to keep tax increases below 5%, according to city officials. Budget deliberations are set to begin Thursday morning at Kelowna City Hall.

This landmark budget will be the first of its kind for Kelowna, which has a population of just over 165,000 residents. With 75% of its projected revenue sourced from user fees and reserves, the city anticipates a 4.47% tax increase, translating to an additional $116 per year for the average homeowner.

City Manager Doug Gilchrist emphasized that the budget reflects the council’s commitment to essential community priorities, including safety, housing, transportation, sustainability, and economic growth. “We aim to keep taxes low and predictable,” Gilchrist stated in a recent announcement.

Kelowna’s Finance Manager Joe Sass revealed that the city plans to utilize its healthy reserve funds to finance new initiatives. This includes hiring additional police officers, adding nearly 30 full-time equivalent staff positions, and funding significant capital projects, such as the construction of the new Parkinson Recreation Centre. Sass noted that Kelowna’s tax rate is 15% below that of comparable communities, underscoring the city’s commitment to providing value to its residents.

Mayor Tom Dyas praised the financial team for crafting a budget that allows for growth while maintaining low taxes. “Our goal is to enhance community services, whether through improved transit or expanded recreational events,” Dyas explained during a council meeting.

The budget also allocates funds for crucial infrastructure improvements, including upgrades to roads, parks, and facilities. Additionally, the city is investing in cybersecurity and digital tools aimed at enhancing service delivery for residents.

As budget deliberations commence, all eyes are on Kelowna, a city recognized as one of the fastest-growing municipalities in British Columbia. Residents are eager to see how this historic budget will shape the future of their community.

Stay tuned for updates as Kelowna City Council deliberates on this transformative budget plan, a significant step forward for one of Canada’s most dynamic cities.