Carryover budget to support ongoing city projects without tax increase
Kelowna City Council has approved a $48.4 million carryover budget for 2025 during its March 10 meeting. The allocated funds will support ongoing operating and capital projects initially approved in previous years but not yet completed.
Major projects covered by these funds will proceed uninterrupted, with no impact on this year’s property taxes. The budget utilizes funds already accumulated through taxes, user fees, grants, and other revenue sources.
The tax demand for 2025 aligns with the preliminary budget set by the council in December 2024, projecting a 4.34 percent increase that translates to an additional $107.80 for the average property tax.
While Kelowna maintains one of the province’s lowest tax rates, investments are significant, with nearly 47 percent of the $887.7 million budget earmarked for enhancing public safety, utilities, transportation, and recreation facilities.
In 2024, Kelowna shifted to a cash flow model for project funding, spreading the financial load of large projects over multiple years. This approach aligns project spending with annual revenue collection.
Melanie Antunes, Financial Planning Manager, emphasized the benefits of this budgeting method: ‘Our goal is to stabilize tax demand while funding projects based on annual deliverables, reducing the necessity of carrying project funds yearly.’
From 2024 to 2025, Kelowna successfully decreased its carryover budget by 83 percent, dropping from $279 million to $48.4 million. The city aims to lower this further by 2026 with the full implementation of cash flow budgeting.
The final budget review slated for April 28 will confirm the exact tax increase, with property tax notices expected in late May. Homeowners can apply for the provincial Home Owner Grant, and taxes are due by July 2 to avert late fees.
For further details on the 2025 preliminary and carryover budget, residents can visit kelowna.ca/budget.