Kelowna poised for historic $1B budget

British ColumbiaThe City of Kelowna is set to join the $1-billion club with its 2026 budget, which focuses on “stability and progress” while keeping a tax increase below five per cent, according to city staff. Kelowna’s proposed 4.47% tax increase keeps it among B.C.’s lowest, according to city staffBrady Strachan · CBC News · Posted: Dec 04, 2025 11:17 AM EST | Last Updated: 4 hours agoListen to this articleEstimated 3 minutesThe audio version of this article is generated by text-to-speech, a technology based on artificial intelligence.City council began 2026 budget deliberations at Kelowna City Hall on Thursday. (Thomas Popyk/CBC)The City of Kelowna is set to join the $1-billion club with its 2026 budget, which focuses on “stability and progress” while keeping a tax increase below five per cent, according to city staff.Projected at $1.052 billion, the 2026 budget marks the first time the city of just over 165,000 residents will reach a 10-digit spending plan.Kelowna, one of the fastest-growing municipalities in B.C, is set to begin budget deliberations on Thursday at city hall. Tourists in Kelowna, B.C., spending carefully, opting for experiences Months after displacement, Kelowna tenants feel forgotten as UBC construction continues With more than 75 per cent of the city’s projected revenue coming from user fees, reserves and other sources, Kelowna is projecting a 4.47 per cent tax increase. That works out to an extra $116 per year for the average homeowner, according to city staff.With an estimated 165,907 residents in 2025, Kelowna has been one of the fastest growing municipalities in B.C. in recent years. (City of Kelowna)”[The budget] reflects council’s commitment to delivering on the priorities that matter most to residents, such as community safety, housing, transportation, sustainability, and economic growth, while at the same time keeping taxes low and predictable,” said city manager Doug Gilchrist in a written statement. Kelowna tiny home success rate lower than mayor claims, B.C. Housing report reveals Kelowna, B.C., is the 1st Canadian city recognized by UNESCO for its food and cuisine In a presentation at city council this week ahead of Thursday’s deliberations, finance manager Joe Sass told city council Kelowna plans to draw from the city’s healthy reserve funds. Sass said this will help pay for more police officers, add nearly 30 full-time equivalent city staff positions and fund major capital projects, including construction of the new Parkinson Recreation Centre, while keeping taxes low at a time when many B.C. municipalities are projecting double-digit increases. “Our tax rate is 15 per cent below average comparable communities and [I’m] really happy with the service levels we offer,” Sass said.”I am quite confident that we can say that we are demonstrating value in the City of Kelowna, at least relative to our peers, and we will continue to aim to do so.” The fastest growing population centres in Canada are in B.C. — but they’re not in Metro Vancouver Kelowna, B.C., hosts the largest RCMP detachment in Canada — but it’s pondering a future without the force Other investments include improvements in infrastructure, including to roads, parks and facilities, the city said in its written statement. Kelowna is also investing in cybersecurity and digital tools with the intention to improve services for residents.At city council this week, Mayor Tom Dyas thanked Sass and other financial staff for delivering a plan to grow the city while keeping taxes low.”Part of our job within this community is to make this community a better place by that capital delivery,” Dyas said.”If that is a little bit more transit, if that is more of a park, if that’s bringing more recreation events to our community … it’s keen for us to bring those to our community.” Dyas and other members of city council are set to begin deliberations on the 2026 budget Thursday morning at Kelowna City Hall. ABOUT THE AUTHORBrady Strachan is a CBC reporter based in Kelowna, B.C. Besides Kelowna, Strachan has covered stories for CBC News in Winnipeg, Brandon, Vancouver and internationally. Follow his tweets @BradyStrachan