Kelowna’s proposed 2026 budget surpasses $1B as council prepares for deliberations

The City of Kelowna is poised to cross a major financial milestone as its proposed 2026 budget climbs past $1 billion for the first time in the community’s history.

The spending plan, projected at $1.052 billion, reflects Kelowna’s rapid growth and its commitment to strengthening city services while keeping tax hikes moderate, according to staff. Council is scheduled to begin its budget deliberations Thursday at city hall.

With more than three-quarters of its revenue expected to come from sources other than property taxes—such as user fees and reserve funds—the city is proposing a 4.47% tax increase for 2026. Staff estimate that would add about $116 to the average homeowner’s annual bill.

City manager Doug Gilchrist said the budget emphasizes “stability and progress,” supporting priorities such as public safety, housing supply, transportation upgrades, economic development and sustainability, all while maintaining predictable tax levels.

Finance manager Joe Sass told council this week that drawing from Kelowna’s strong reserve balances will help the city expand staffing—including new police officers and nearly 30 additional full-time equivalent positions—while also advancing major capital projects. Those include the redevelopment of the Parkinson Recreation Centre and improvements to roads, parks and civic facilities.

Sass noted Kelowna’s property tax rate remains about 15% below comparable communities. “I am quite confident we are demonstrating value relative to our peers,” he said.

Kelowna’s population, estimated at roughly 165,900 in 2025, continues to grow at one of the fastest rates in the province. That growth is influencing city priorities, including investments in digital systems and cybersecurity to modernize service delivery.

Mayor Tom Dyas praised staff for producing a plan that balances affordability with the need to support a growing city. “Part of our job is to make this community a better place,” he said, highlighting recreation, transit expansion and community events as examples of upcoming improvements.

Council will begin formal deliberations on the 2026 financial plan Thursday morning.