Council Approves City’s 2023 Financial Plan
News Release
Kelowna Council approved the City’s final 2023 Financial Plan on Monday, April 24. The adopted tax demand, which was set at 3.78 per cent, includes the introduction of a one-per-cent public safety levy to fund the addition of six new RCMP members, four firefighters and four bylaw officers.
Based on the City portion of an average residential property tax bill in Kelowna, the 3.78 per cent increase translates to an additional $86.42 per year or $7.20 a month. Of the City’s $780 million total 2023 budget, taxation revenue will account for approximately 23 per cent ($176.6 million).
The annual property tax rate 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. The City’s self-funding business operations, which have no impact to the taxpayer, include Kelowna International Airport and its water utility, parking and solid waste services.
“Each year, staff and Council are tasked with balancing the community’s interest in maintaining existing levels of services while planning for significant infrastructure needs,” said City Manager Doug Gilchrist. “Building economic resiliency into our financial management and business practices has enabled us to respond to the external economic pressures while keeping the tax rate as low as possible.”
Of the $176.6 million total taxation demand, Community Safety represents the largest investment at 34%, followed by Infrastructure (33%) and the Fire Department (13%). New 2023 investments for the City include $22 million in water, wastewater, and stormwater protection projects and $31 million in parks and public spaces infrastructure projects. Other priority investment areas include transportation infrastructure, social wellness to address issues such as homelessness and challenges related to affordable housing, protecting the natural environment, addressing climate action through the reduction of greenhouse gas emissions, and digital transformation to improve operational efficiencies.
“Managing a near $780 million City budget is a complex process that is influenced by many different needs and factors,” said Melanie Antunes, Manager, Financial Planning. “Ultimately, it’s about building a great city and high quality of life. That’s why it’s so important that we work together to establish our collective goals as a community.”
In the 2022 Citizen Survey, 75 per cent of residents said they receive good value for their municipal tax dollars and the majority, 80 per cent, said they are satisfied with the overall level and quality of services provided by the City.
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 4 and 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 this year 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 gov.bc.ca/homeownergrant.
The City has received the Government Finance Officers Association’s Distinguished Budget Presentation Award for 21 years in a row. The award recognizes achievement in meeting the highest principles of governmental budgeting.
To learn more about the 2023 budget and sign up for budget e-bulletins, visit kelowna.ca/budget.
