Council has until the end of May to finalize the budget
Following today’s (Thursday) all-day provisional 2020 budget deliberations, Kelowna City Council has approved a provisional 4.15 per cent overall taxation demand increase. This includes a 2.33 per cent increase for general municipal tax demand increase and a 1.82 per cent infrastructure levy increase which was previously approved in the 2019 budget.
A 4.15 per cent increase means an $86 increase, or $7.17 per month, for the City portion on an average single-detached home tax bill in Kelowna. City taxes are only one portion of a property tax bill, which also includes other amounts the City collects on behalf of the Province, the Regional District, school and library levies.
“We are committed to strong financial management and being accountable to public funds,” said George King, Financial Planning Manager. “Council has approved the provisional budget which prioritizes keeping taxation demand as low as possible, while ensuring we keep pace with the cost increases required to maintain existing levels of service and support our rapidly growing community. Most budget requests, 69 per cent, are funded from sources other than taxation such as fees, reserves and grants.”
In the most recent Citizen Survey, 79 per cent of residents shared they receive very/fairly good value for their municipal tax dollars and the majority, 87 per cent, continue to say they are satisfied with the overall quality of services provided by the City.
The taxation impact in the 2020 budget is $151.3 million, which is an $8.8 million increase over last year. The anticipated $2.9 million in new construction revenue directly offsets taxation, as such, the net taxation increase impact ends up being $5.92 million, or a 4.15 per cent increase. Overall, taxation accounts for 31 per cent of the needed revenue for 2020. Going forward, the infrastructure levy will generate $5.6 million annually to help bridge the infrastructure deficit identified in the 10-Year Capital Plan.
“Our budget process supports delivering results outlined in Council’s priorities, as well as advancing the community’s Imagine Kelowna vision,” said King. “Making sure the public feels safe, creating great public spaces, embracing diverse transportation options, supporting innovation and economic resiliency, and protecting our environment by taking action in the face of climate change are all reflected within the 2020 budget.”
Community safety represents the largest operating budget investment for 2020 at $38.6 million. Bolstering safety resources, Council has approved the addition of 11 new RCMP officers as well as 14 safety-related civilian support positions – totaling $1.4 million.
Parks, animated spaces and recreation opportunities make for vibrant and healthy neighbourhoods. In 2020, $22.4 million is being invested in parks acquisition, development and improvements. The Parks Development Cost Charges program, launching this year, will see the accelerated development of Phase 1 of the Pandosy Waterfront Park, completion of Rutland’s Centennial Park as well as sports fields at the Ponds Community Park. Outside of the DCC program, Phase 2 of the City Park promenade will see walkway improvements, Sarson’s Beach Park will be expanded, Boyce Gyro Beach Park will be completed, and Glenmore Recreation Park will see off-side road improvements.
The largest 2020 budget request will have no taxation impact: Council approved $69.9 million for the Kelowna International Airport’s Soaring Beyond 2.5 Million Passengers Airport Improvement Fee program. This includes continued design and construction of the largest expansion to date, with phase 1 to be implemented over the next three years. The airport is an important economic generator for both our region and city and is entirely self-funded through user fees and charges.
In addition to investments in safety, parks and the airport, the 2020 budget includes:
Investing to support programs and initiatives to help address complex social issues so we can build on being a socially responsible and inclusive community. This includes $200,000 in funding to review housing for those with complex needs and for exploring optimization solutions of shelter services locations.
$20.5million in transportation capital expenditures to build on our balanced transportation network. The Lakeshore Road bridge over Bellevue Creek and KLO Road bridge over Mission Creek will be rehabilitated, the Ethel Street Active Transportation Corridor (ATC) will be extended to Raymer Road and construction of the Houghton ATC in Rutland will commence. Also included is our $3.7 million annual road resurfacing program.
Commitments to addressing climate change and environmental protection include adding up to eight electric vehicle charging stations downtown. We will also be investing $2.8 million in storm drainage upgrades and maintenance for increased flood protection along Mill Creek and culverts along Bertram Creek and Lakeshore Road.
City staff had proposed a 4.15 per cent overall taxation increase for Council’s consideration at the Dec. 9 Public Meeting. Council sets the provisional tax increase requirement after reviewing which projects to fund, and which projects to defer or cancel. Carryover requests will be presented to Council in March and the final tax demand increase will be decided by Council in April 2020.
