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2025 FINANCIAL PLAN

CITY OF KELOWNA

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2025 FINANCIAL PLAN

CITY OF KELOWNA

TABLE OF CONTENTS About this document......................................... 2025 Council Changes .......................................

5 6

INTRODUCTION & OVERVIEW Message from the City Manager ....................... Territory acknowledgement ............................. Award for Financial Reporting .......................... Our Community ................................................. Our City .............................................................. Our Citizens ....................................................... Imagine Kelowna ............................................... Council Priorities ............................................... Budget highlights .............................................. Budget at a glance ....................................... Budgeting by priority .................................. Capital project by location .......................... Property taxation & major contracts ..........

8 10 11 12 13 14 16 18 21 21 22 27 28

STRONG FINANCIAL MANAGEMENT The City & its divisions ...................................... Budget process .................................................. Public input .................................................. Budget development................................... Budget cycle & timeline .............................. Basis of accounting/budgeting.......................... Policies ............................................................... Financial planning policies .......................... Revenue & expenditure policies .................. Investment & cash management policies ... Capital strategies ......................................... Funds & departmental relationship .................. Municipal funds ........................................... Reserve & fund equity ....................................... Debt management ............................................ Operating full-time equivalent (FTE) positions summary ............................................

30 31 31 31 31 34 35 35 36 37 37 38 38 40 43

SERVICE AREA BUDGET Service Area Summary ....................................... Airport ................................................................. Community Safety & Bylaw ............................... Police Services & RCMP...................................... Fire Safety ........................................................... Wastewater Utility .............................................. Stormwater & Flood Protection ......................... Water Utility ....................................................... Solid Waste & Landfill ........................................ Transportation .................................................... Transit ................................................................. Parks ................................................................... Sport & Recreation ............................................. Arts & Culture ..................................................... Community Development .................................. Development Services ........................................ Development Planning ....................................... Parking ................................................................ Partnerships Office ............................................. Governance & Leadership .................................. Enabling Services ................................................

65 77 93 105 116 128 141 154 168 179 201 212 231 244 255 266 274 280 289 299 307

CARRYOVER BUDGET Report to Council ............................................... 341 Carryover request three-year comparison ........ 343 Summary of multi-year requests ....................... 346 Summary of other requests................................ 348 Carryover request details ............................ 351

FINANCIAL SUMMARIES Financial Plan Summary ....................................

2025 FINANCIAL PLAN

CITY OF KELOWNA

FINAL BUDGET Report to Council .............................................. 379 Financial summaries ......................................... 381 Analysis of tax demand ............................... 381 Financial Plan summary .............................. 382 Analysis of total revenues ........................... 383 Analysis of total expenditures ..................... 384 Use of tax dollar by service area ................. 385 Ongoing budget impacts ............................ 386 Summary of requests ....................................... 387 Final request details .......................................... 388

FIVE-YEAR FINANCIAL PLAN Financial Plan ..................................................... Revenue sources & trends ................................. Five-Year Financial Plan summaries ................ Tax Impact Summary .................................. General Revenue ......................................... Service Based Summary.............................. Net Expenditures ......................................... Airport.......................................................... Arts & Culture .............................................. Community Development........................... Community Safety & Bylaw ........................ Development Planning................................ Development Services ................................ Enabling Services ........................................ Fire Safety.................................................... Governance & Leadership ........................... Parking ......................................................... Parks ............................................................ Partnerships Office ...................................... Police Services & RCMP .............................. Solid Waste & Landfill ................................. Sport & Recreation ...................................... Stormwater & Flood Protection .................. Transit .......................................................... Transportation ............................................. Wastewater Utility ...................................... Water Utility ................................................

393 394 399 400 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422

APPENDIX Supplemental information ................................ Statistics ............................................................ Glossary ............................................................. Acronyms & Abbreviations ...............................

II IV VII X

2025 FINANCIAL PLAN

CITY OF KELOWNA

About this Document About this document is intended to provide a basic understanding of the Financial Plan and briefly describe the contents of each major section of this document. The Financial Plan provides detailed funding requirements over the next five years and serves as a policy document, financial plan, operations guide, and communications tool. 2025 Council changes The Financial Plan Volumes are presented to Council as a recommendation from the City Manager. During budget deliberations, Council may choose to make changes to the presented budget resulting in a revised gross taxation demand and property owner impact for the year. This page summarizes all changes made by Council. Introduction & overview This section provides an introductory message from the City Manager outlining the priorities and challenges considered in the development of the 2025 Financial Plan. An overview of Our Community, Our City, and Our Citizens tells the story of what makes Kelowna a desirable place to live. Budget highlights provide a summary of how we budget for and deliver on Council and Corporate priorities. Strong financial management This section discusses the City of Kelowna’s organizational structure, funds, debt, strategies and policies, and goes into detail about the budget process.

amounts from other taxing jurisdictions. This plan is mandated by the Community Charter to be approved by bylaw annually before May 15 prior to the annual property tax bylaw adoption. Five-Year Financial Plan The Five-Year Financial Plan is mandated by the Community Charter to include a planning period of five years, the first being the year in which the plan is specified to come into force and the following four years. Appendix Supplemental information including the City’s Citizen Survey results, Official Community Plan and Indicators Report, Community Trends report and various statistical information are provided for the reader. All reports are also available on kelowna.ca. For clarity of terms throughout the Financial Plan, a glossary and acronyms list is provided.

Financial summaries This section presents a financial analysis of tax requirements, revenues, and expenditures. Service area budget The Financial Plan is structured by service area and consists of three main components: operating budgets, which reflect the total costs of delivering City services offset by direct revenues; enabling services operating budgets, which highlight the support costs required to provide services to the community; and capital budgets, which outline the annual capital investments allocated to each service. Each service area section includes service descriptions, activities planned for the budget year, performance metrics and a budget overview presenting information for the completed 2023 year, the estimated/ revised 2024 year and the proposed/Preliminary 2025 year. Following that are the individual budget requests being presented to Council for consideration. Carryovers & Final Budget Unfinished projects that require budget to be moved to the next fiscal year are presented to Council in March, as part of the Carryover Budget – Volume 2. Final Budget – Volume 3 is presented in April and includes final adjustments to the Financial Plan and the requisition

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Council Changes The Financial Plan Volumes are presented to Council as a recommendation from the City Manager. During budget deliberations, Council may choose to make changes to the presented budget resulting in a revised gross taxation demand and property owner impact for the year. This page summarizes all changes made by Council in the three budget volumes. This page will be updated after each Financial Plan Volume is approved by Council.

Analysis of tax demand ($ thousands)

2025 Taxation demand New construction tax revenue Net property owner impact Municipal Impact Public Safety Levy Impact

Proposed Approved Preliminary Preliminary Budget Budget 204,764 204,714 (5,200) (5,200) 4.36 % 4.34 % 3.36 % 3.34 % 1.00 % 1.00 %

Proposed Carryover Budget 204,714 (5,200) 4.34 % 3.34 % 1.00 %

Approved Carryover Budget 204,714 (5,200) 4.34 % 3.34 % 1.00 %

Proposed Final Budget 204,274 (4,760) 4.34 % 3.34 % 1.00 %

Approved Final Budget 204,274 (4,760) 4.34 % 3.34 % 1.00 %

Items added/deleted by Council – Preliminary Budget – Volume 1 Service Area Operating requests Community Safety & Bylaw Community Safety & Bylaw Stormwater & Flood protection Transportation Enabling Services Operating total Capital requests Parking

Title

Change

Increase/ (Decrease)

Bylaw Enforcement Officer (x2)

P2 to P1

104

151,000

—

ON-GOING

Bylaw Services Enforcement P2 to P1 Coordinator Stormwater Utility Business Case P1 to P2 Phase 3 Snow Clearing and Ice Control Service P2 to P1 Enhancements Community Events Calendar P1 to P2

104

50,000

—

ON-GOING

149

(125,000)

—

ONE-TIME

199

375,000

—

ONE-TIME

327

(50,000) 401,000

*South Pandosy Parkade

288

—

— 401,000

— (50,000)

Scope

Capital total Total operating & capital changes

Tax ON-GOING/ Demand ONE-TIME

(50,000) ON-GOING (50,000)

ON-GOING

*South Pandosy parkade request was decreased from a total project cost of $15M over four years to $500k in 2025 for design work only.

Items added/deleted by Council - Carryover Budget - Volume 2 No change to proposed budget volume by Council.

Items added/deleted by Council - Final Budget - Volume 3 No change to proposed budget volume by Council.

2025 FINANCIAL PLAN

CITY OF KELOWNA

INTRODUCTION & OVERVIEW

2025 FINANCIAL PLAN

CITY OF KELOWNA

A MESSAGE FROM THE CITY MANAGER A year after the City of Kelowna introduced a more transparent way to budget, I am honored to present the proposed 2025 Financial Plan to Council. Our service-based budgeting approach enables us to meet our community’s current needs while continuing to shape Kelowna as a City of the Future. Service-based budgeting is an innovative way to break down costs by service rather than department, allowing the City to organize spending in areas that matter to citizens regardless of the structure of municipal government. This approach not only improves financial planning between departments but also empowers Council and residents to understand the value and true cost of the services we provide – and ultimately evaluate how well tax dollars are spent. Ensuring good value for tax dollars is a top priority for the Council and City staff, especially during times of high inflation and tightening family budgets. Our City’s auditing team plays a crucial role in this effort by meticulously monitoring the performance of all business units to guarantee they provide significant value to citizens. I am pleased to report that our 2024 Citizen Survey showed a six-percentage point increase in respondents’ satisfaction with City services since the last survey in 2022. I extend my sincere appreciation to all City staff who helped us achieve this milestone. Our focus on quality service delivery and responsible fiscal management is at the core of what we do. This year, with a view to enhance the accessibility and transparency of our Financial Plan, we are presenting the combined operating and capital budgets together under each service area. This improved layout offers a comprehensive view of our investments in tangible assets such as buildings and equipment, as well as the budget needed to make them productive. The 2025 Financial Plan also improves our ability to estimate tax demand for multi-year capital projects based on the cash flow in each budget year. Not only does this improve financial planning and reduce the carryover burden, it also stabilizes the tax rate from year to year. Budget and investment decisions are responsive to the challenges and opportunities facing our rapidly evolving city. By 2040, we anticipate that Kelowna’s population will grow by approximately 37%, according to the latest provincial statistics. In response, our budget makes accelerated investments in capital projects—more than doubling the annual rate of investment from prior years—to help us meet the demands of tomorrow while making the most of our purchasing power today. Key investment areas include transit and transportation, recreation facilities, buildings and parks, the airport, and critical water-related infrastructure. Our budget is also responsive to cost pressures beyond our control. High interest rates have resulted in lower revenues from development fees. Emergency services like fire and police have seen increased demand given provincial policy changes to ambulance services. And our costs for contracted RCMP and provincial transit services have also steeply increased.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Despite these pressures, our funding priorities continue to be shaped by guiding documents like the Imagine Kelowna vision, citizen surveys, the Official Community Plan and other strategic plans, as well as key objectives outlined in Council Priorities (2023-2026). These priorities include Crime and Safety, Affordable Housing, Homelessness, Transportation, Agriculture, Climate and the Environment, and the Economy, for which progress is reported regularly. Beyond supporting essential services that contribute to everyday quality of life and maintain the City’s growth, the 2025 Financial Plan prioritizes investments in: •

Community safety through added staff and training resources for fire, police, and bylaw services, as well as enhancements to facilities and systems.

•

Housing supports through expanded overnight sheltering facilities, improved approval efficiencies and greater development density.

•

Active and road transportation through expanded transit facilities and connectivity, improved rider comfort, new trail and road infrastructure as part of a significant roads bundle and repairs, and street lighting.

•

Sustainability initiatives that prioritize energy efficient retrofits for buildings and lighting, updated standards for new construction, replacement of aging fleet vehicles with electric, increasing the urban tree canopy, and other innovations that prepare the City to deliver services to a growing population.

•

Economic development by accelerating capital investments in buildings, spaces, and infrastructure, continuing to expand airport and recreation facilities, and reviewing the City’s efforts into strengthening business investment in the region.

•

Digital transformation measures to improve citizen access to services and government operational efficiency and cybersecurity.

As City Manager, I believe our strategic ability to make sound financial decisions for the collective good is one of our greatest strengths — and our greatest responsibility. Some key highlights of this year’s Financial Plan include: keeping community safety top of mind by adding increased funding for new positions in RCMP, Bylaw, and Fire; addressing housing issues by expanding the capacity of our outdoor shelter area and continuing to promote housing density; making important investments in roadway infrastructure, transit, and active transportation corridors to improve safety, connectivity and rider comfort; and commencement of some of the most ambitious capital and infrastructure projects, including a new protective services building and the Building a Stronger Kelowna suite of multi-use facilities – leveraging partnership investments from other agencies and levels of government. The City of Kelowna is committed to fiscal responsibility. With only 25 per cent of the budget reliant on tax revenues, the remaining 75 per cent is generated through user fees collected from residents and visitors alike, sustainably funded business units like the Kelowna International Airport and parking, as well as grants and investments from other levels of government, drawing on City reserves, and partnerships with community and business groups. As we continue building the City of the Future, I am pleased to present Council with the proposed City of Kelowna preliminary budget for 2025. The Financial Plan reflects our collective commitment to strong financial management, careful spending, and investments in services and projects that will create a strong future for our rapidly growing community.

— Doug Gilchrist, City Manager

2025 FINANCIAL PLAN

CITY OF KELOWNA

TERRITORY ACKNOWLEDGMENT We acknowledge that our community is located on the traditional, ancestral, unceded territory of the syilx/ Okanagan people.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Award for Financial Reporting The Government Finance Officers Association (GFOA) has presented a Distinguished Budget Presentation Award to City of Kelowna, British Columbia, for its 2024 Annual Budget for the fiscal year beginning January 1, 2024. This award represents a significant achievement as it reflects the commitment of the City of Kelowna and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, a governmental unit must satisfy national recognized guidelines for effective budget presentation. These guidelines are designed to assess how well the budget services as a policy document, a financial plan, an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our 2025 budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. The City of Kelowna has received the GFOA Distinguished Budget Presentation Award for 23 consecutive years.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Lifestyle Located along the sandy shores of Okanagan Lake in the heart of the Okanagan Valley, Kelowna is a four-season playground welcoming over two million visitors annually from around the world. With its proximity to water, beaches, hiking trails, ski hills, golf courses and the Okanagan Rail Trail, it’s a city that embraces outdoor adventure and an active lifestyle all year long. With over 40 wineries within a 20-minute drive, Kelowna is at the centre of the world-renowned Okanagan wine country and fruit growing industry. It is home to award-winning microbreweries, distilleries, and cideries deeply rooted in the local agricultural history, and its bustling urban centre offers a passionate farm to table network, outdoor markets, live music scene, galleries, theatre and unique shopping boutiques. The majority of citizens (86 per cent) rate the quality of life in Kelowna as good or very good thanks to active/recreational opportunities, safety, its accessible location, job opportunities, and great weather. Growth Kelowna is rapidly evolving, becoming a more urban and dynamic region. During the 2016 to 2021 census period, Kelowna’s population increased by 13.5 per cent, making it one of the fastest growing cities in B.C. and one of the fastest growing metropolitan areas in the country. Building permits have also shown significant growth, first exceeding $1 billion in 2021 and nearly doubling to $1.8 billion in 2023. By 2040, the population of Kelowna is expected to grow by nearly 38 per cent. Jobs Kelowna is an economic powerhouse, home to robust traditional sectors like agriculture and construction, and burgeoning new sectors such as information technology. The city also boasts a diverse economy that also includes manufacturing, tourism, aviation and health care. Kelowna is homebase for over 650 technology companies with over $1.67 billion in economic output, according to Accelerate Okanagan, while tourism generates $2.4 billion according to Tourism Kelowna. Airport Kelowna International Airport (YLW) is the largest municipally owned and operated airport in Canada. YLW does not utilize municipal taxes as it is self-funded through user fees and charges. The aviation sector is essential for Canada’s postpandemic recovery of revenue generation for local businesses, maintaining and creating jobs for residents, and encouraging investment in the local community. Each year, YLW pays a portion of its revenue to the City of Kelowna which helps to reduce taxes paid by residents. Education Kelowna is a hub of academic and trades training excellence. It is home to the Okanagan campus of the University of British Columbia, one of the world top public universities, and Okanagan College’s largest campus. Together, the two postsecondary schools welcome nearly 30,000 students per year. Health Kelowna offers world-class, state-of-the-art medical facilities offering the highest quality patient care. Interior Health Authority, headquartered in downtown Kelowna, and the Kelowna General Hospital serve as the leading health centre for the B.C. Interior, and a teaching hub for the UBC Okanagan medical school.

2025 FINANCIAL PLAN

CITY OF KELOWNA

The City of Kelowna is a city of the future. It is open to new opportunities, business and new ideas from diverse residents. The organization is led by Mayor and Council, our dedicated City Manager. More than 1,000 employees deliver quality services to ensure our city is safe, vibrant and sustainable. As a fiscally responsible municipality, the City provides core services, maintains existing infrastructure and builds new amenities when needed. The public is kept informed of City projects and progress through an array of publications, including the monthly City Views digital newsletter, the Annual Report, as well as news releases and social media. In addition, the user-friendly and mobileresponsive kelowna.ca website allows residents to place service requests and stay informed. Mayor and Council The City of Kelowna is governed by an elected Mayor and eight Councillors for a four-year term (2022-2026). Led by Mayor Tom Dyas, Kelowna City Council is committed to building on the momentum of past Councils and being open for opportunity through community engagement and partnerships. It is consistent and transparent in decisions, creating a favourable environment for customer service, development and business in Kelowna. Top row: Councillors Luke Stack and Mohini Singh, Mayor Tom Dyas, Councillors Maxine DeHart and Charlie Hodge. Seated: Councillors Ron Cannan, Loyal Wooldridge, Gord Lovegrove and Rick Webber.

2025 FINANCIAL PLAN

CITY OF KELOWNA

The 2024 City of Kelowna Citizen Survey helped gauge public satisfaction with municipal programs and services, providing insights into citizens’ priorities. For information, see Appendix A.

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 FINANCIAL PLAN

CITY OF KELOWNA

At-a-glance In 2018, we are a city in transition and Imagine Kelowna is the community’s vision for how to thrive in the face of unprecedented growth and change. The result of almost 4,000 resident contributions, this is a vision created by our community, for our community. We need to be agile, resilient and unafraid to do things differently. The community has made it clear that as we grow, we need to look out for one another and protect the stunning environment that sustains us. In 2040, Kelowna is a thriving mid-sized city that welcomes people from all backgrounds. We want to build a successful community that honours our rich heritage and also respects the natural wonders that contribute to our identity. As a place with deep agricultural roots, Kelowna understands the need to protect our environment, manage growth and be resilient as our future unfolds. We want a community that: •

puts people first: We try to balance the needs of everybody in our decision making. We recognize that inclusivity and diversity makes us a stronger and more innovative community.

•

values its history: We celebrate our heritage, and learn from our past to reconcile it with a better, more inclusive future we see for ourselves.

•

encourages curiosity and creativity: We learn continuously to respond and adapt to rapid change. We find innovative ways to meet social, economic and environmental challenges and opportunities. recognizes the changing roles of individuals, businesses, governments and community organizations: The well-being of our city is a shared responsibility and everyone needs to do their part to seize opportunities for improvement.

Principles

Principles and goals The following principles and goals work together as a system to help the community achieve its vision. Principle 1 – Collaborative: A community where people of all backgrounds work together to meet collective challenges. Goal: Engage with the Okanagan’s traditional past and heritage as foundations for building a fair and equitable community. We will honour our rich heritage while also following the lead of our local Indigenous communities towards a path of reconciliation. Goal: Nurture a culture of entrepreneurship and collaboration. Entrepreneurship is weaved into Kelowna’s cultural fabric, making our community more creative, collaborative and better able to meet the challenges of the future. Goal: Foster resident-driven solutions. We unleash our community’s hidden talents to solve the tough challenges of the future.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Draft principles and goals Principle 2 – Smarter: A community willing to learn, adapt and grow so we can thrive amid rapid change.

Principle 4 – Responsible: A community where decisions are made ethically and where social and environmental concerns are prioritized.

Goal: Support innovation that helps drive inclusive prosperity.

Goal: Concentrate on growing vibrant urban centres and limit urban sprawl.

We are building a nimble and resilient economy that doesn’t leave anyone behind.

Denser neighbourhoods make our city healthier, more sustainable and easier to get around. They make more financial sense, too.

Goal: Take action and be resilient in the face of climate change.

Goal: Preserve Okanagan Lake as a shared resource.

We will seize the opportunity to face climate change head-on for a hopeful and sustainable future. Goal: Build healthy neighbourhoods that support a variety of households, income levels and life stages. Everyone in our community should be able to find stable and appropriate housing. Principle 3 – Connected: A community where residents are connected to their neighbours, their city and the wider world. Goal: Embrace diverse transportation options to shift away from our car-centric culture. Making it easy for people to choose non-driving options protects the beauty of Kelowna and makes getting around more enjoyable. Goal: Create great public spaces that bring people together. We need great public gathering places like parks, plazas and community centres where people can meet and connect with others. Goal: Provide opportunities for people of all ages, abilities and identities. We all benefit when everyone in the community has access to economic, recreational and social opportunities. Goal: Cultivate an accessible and engaging arts and culture scene. Everyone can find something that interests them to engage in, from grassroots initiatives to professional endeavours.

Okanagan Lake is the jewel that makes Kelowna sparkle. Goal: Strengthen the protection of our land, water and air resources. Our stunning environment is the foundation that all of our other aspirations stand on. Goal: Protect agricultural land and promote sustainable farming. Supporting agriculture helps ensure food security while preserving vital green infrastructure.

Now what? Under the banner of Imagine Next, the City will use Imagine Kelowna to help shape its priorities and provide the foundation for future strategies and projects such as the Official Community Plan (Our City as we Grow), the Transportation Master Plan (Our City as we Move), Intelligent City Strategy, and many others. The Imagine Kelowna goals are also aligned with the United Nation’s Sustainable Development Goals, linking what we are doing locally with larger global efforts to shift the world onto a more equitable, sustainable and resilient path. However, Imagine Next doesn’t only involve the City. It also provides direction to our entire community to change the way we work together, how we make decisions, and how we engage with residents. Ultimately, Imagine Kelowna is the community’s vision to ensure a vibrant and resilient future. It is up to all of us to imagine what’s next and help make Imagine Kelowna a reality. Stay informed about Imagine Kelowna by subscribing to eupdates or get involved by visiting imagine.kelowna.ca.

2025 FINANCIAL PLAN

CITY OF KELOWNA

COUNCIL PRIORITIES The 2023-2026 Council Priorities identify the strategic shifts, improvements and changes that are important to Council, the community, and the organization. The approach is designed to take immediate action on what is important to residents and guide the City’s business planning and investment decisions. It outlines seven priority areas and 26 actions to increase citizens’ quality of life. Council receives a public progress report on the priorities every six, 12 and 18 months. To see the progress on each priority, visit kelowna.ca/councilpriorities.

Crime & Safety

Transportation

Council Priority Actions

• Advance implementation of Mayor's Task Force on Crime Reduction recommendations, including Business Improvement Area support. • Reduce property crime, including break and enters and theft. • Demonstrate effectiveness of visibility on high-risk traffic behaviour (e.g. speeding, texting) and crime. • Support retention of current policy restricting use of drugs in public spaces. • Partner with ministries responsible for mental health and addictions on initiatives (e.g. Community Safety Plan) that improve local conditions, including alternative response models and advocacy.

• Complete the functional design of the Hwy 33 multimodal traffic corridor and propose a partnership delivery model to the Province. • Secure funding for a new transit operation centre. • Enhance traffic safety (e.g. traffic calming and pedestrian infrastructure). • Explore alternative modes of transportation between UBCO/YLW and downtown (e.g. light rail). • Improve transit service including expanding the transit pass program (e.g. Community Upass). • Improve traffic flow and capacity on major road networks (e.g. roads bundle).

Affordable Housing

Agriculture Council Priority Actions Council Priority Actions • Meet provincial/local affordable housing targets with support from the Province. • Complete Housing Action Plan including incentive options. • Partner on the creation of low-cost housing pilot project. • Investigating options to protect renters impacted by redevelopment projects and protect existing rental stock.

Homelessness Council Priority Actions • Advocate for a regional care facility (e.g. Red Fish Healing Center model). • Complete the delivery of tiny home units committed to by the Province. • Facilitate a purpose-built permanent shelter with 'wrapup' supports and graduated housing options. • Assess feasibility of care and delivery models such as a multi-care site.

• Protect agricultural lands. • Continue to ensure farmland is used for permitted uses. • Ensure sufficient & high-quality agriculture water supply.

Climate & Environment Council Priority Actions • Complete the Climate Resilient Kelowna Strategy. • Continue to include 'Climate Lens' in decision making to assess mitigation and adaptation. • Increase urban tree canopy (e.g. tree-lined medians). • Pilot energy concierge program to enable retrofits in buildings.

Economy Council Priority Actions • Seek opportunities to enhance economic diversification • Attract new employment and support existing business growth • Assess the City's supply of employment lands • Consider the City's investment into economic development.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Plans & Strategies How City Plans Work Together

Plans that Influence the Budget

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measurement Performance Measurement City of Kelowna has a corporate-wide performance measurement program that is integrated into the Annual Financial Plan in accordance with the BC Community Charter. We believe that measuring and reporting on performance is foundational to responsible management. Performance measurement is used to: •

• •

•

Assess and communicate the value provided to citizens through our services including the performance measures contained in the Annual Financial Plan. Make transparent and defensible decisions about where to prioritize tax revenue. Demonstrate progress on Council priorities, corporate priorities and significant city plans such as the Official Community Plan and Transportation Master Plan through interactive progress reports. Compare how well we deliver services and the cost of services compared to other cities through industry and municipal benchmarking programs.

•

Regular use and monitoring of internally facing management and financial data to identify highperforming areas, detect issues early and make informed decisions to improve outcomes.

In 2024 the City participated in the Municipal Benchmark Network Canada program for the first time, which allows us to assess how we’re doing compared to 10 other cities on 25 services. Data on 2023 services was available in September 2024 and a subset of that information is presented in the 2025 Financial Plan as part of the performance measures for services areas. It’s expected that more comparative data will be presented publicly as we assess the utility and our confidence in the data.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget Highlights Budget at a glance The City of Kelowna acts as a steward of public funds on behalf of our residents and makes the right choices to protect our city and community. We do this by having a clear set of priorities based on our community led Imagine Kelowna vision, solid master plans and a firm dedication to active financial management. This is supported through continuous and consistent progress reporting, showing how the City is implementing priority Imagine Kelowna actions. Public reporting not only invites useful feedback and input from the community, it shows Council’s commitment to transparency, accountability and providing value to residents. The City of Kelowna has traditionally used an organizational approach to presenting the annual budget whereby each division or department budget was presented to Council based on the organizational structure of the day. This sometimescaused confusion when departments were moved between the different divisions or new divisions were set up as part of reorganizations. It also made it difficult to present the cost of services that are delivered across multiple divisions. Further, the connection between the service levels observed by citizens was not necessarily tied to the budget presentation in a meaningful way. With citizens increasingly holding municipalities accountable for the cost of services provided, the 2024 Financial Plan was redesigned under a Service Based Budgeting methodology, with services and associated service levels being determined through Council’s priorities, and the City’s strategic plan. Under this approach, budget is created and presented around the service being delivered to the community, rather than departments and divisions under which the organization is structured. The 2025 Financial Plan takes this restructuring one step further by combining the capital program with the operating program in each service area. This merging of these programs provides additional insights for Council and the Community as together, they provide a comprehensive view of the service area, highlighting how operational expenses may impact capital projects and vice versa. Presenting these budgets together enhances transparency, showing potential trade-offs between maintaining current operations and investing in future assets. It also helps highlight interdependencies, such as how operational efficiencies could free up funds for capital investments or how capital projects might reduce future operating costs.

2025 priorities Each year, the City of Kelowna identifies priorities to address emerging challenges and opportunities, aligning elected officials, municipal staff, and the community around shared goals like infrastructure improvements, public safety, and environmental sustainability. Highlighting these priorities in the Financial Plan enhances transparency and accountability by demonstrating how taxpayer dollars are allocated and providing context for key decisions. This approach fosters trust and collaboration by helping the community understand the trade-offs involved in the budgeting process. Challenges in 2025 include economic factors such as high inflation, increased emergency service costs, and declining development fee revenues due to high interest rates. Policy challenges involve rising demand for emergency services driven by provincial ambulance policy changes, along with pressures to address public safety and housing shortages. Additionally, Kelowna's rapidly growing population—projected to increase by 37% by 2040—places significant strain on infrastructure, transit, and housing. To address these issues, a range of measures are being implemented. The adoption of service-based budgeting aims to improve transparency, efficiency, and financial planning. In response to population growth, the City plans to accelerate infrastructure investments, doubling the annual rate of capital expenditures. Increased funding for fire, police, and bylaw services is prioritized, along with investments in housing initiatives, such as expanded shelter facilities and streamlined approval processes for higher-density development. Sustainability efforts include energy-efficient building retrofits, fleet electrification, and urban forestry. Additionally, the City is advancing its digital transformation to enhance citizen access to services and improve government efficiency. Annual priorities for the upcoming budget year differ from the current year, reflecting a greater focus on long-term infrastructure investments and immediate solutions to housing and safety concerns. While ongoing goals like community safety and sustainability remain central, there is now an increased emphasis on accelerating capital projects and leveraging partnerships to meet the demands of rapid growth.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budgeting by priority Each budget request must indicate the Council or Corporate priority that it is best aligned with. Council priorities identify where residents and City Council want to see a difference in our community. Corporate priorities identify what is needed to be a high-performance organization and be able to deliver services and value to residents. Listed below by Council and Corporate Priority, are some of the exciting programs and projects being requested in 2025.

Crime and Safety Council Priority Actions: 1. Advance implementation of Mayor’s Task Force on Crime Reduction recommendations, including Business Improvement Area support 2. Reduce property crime; including break and enters and theft 3. Demonstrate effectiveness of visibility on high-risk traffic behaviour (e.g. speeding, texting) and crime 4. Support retention of current policy restricting use of drugs in public spaces 5. Partner with ministries responsible for mental health and addictions on initiatives (i.e. Community Safety Plan) that improve local conditions, including alternative response models and advocacy Operating requests: The 2025 Crime & Safety Operating Requests for Kelowna outline key initiatives to address public safety and crime reduction. Funding is proposed to advance recommendations from the Mayor’s Task Force on Crime Reduction, including reducing property crimes, enforcing traffic safety, and collaborating with mental health and addiction programs. A Senior Bylaw Officer position is requested to manage complex cases, enhance interagency collaboration, and support a new Property Action Team. Additional funding is sought for two Bylaw Enforcement Officers to address property-related issues, including compliance with evolving legislation and increasing enforcement demands. To support the growing population and increasing caseloads, seven new RCMP officers and a Criminal Intelligence Analyst are proposed, aimed at enhancing community policing and crime prevention through data-driven strategies. The budget also includes resources for maintaining security systems and addressing capacity constraints, with a new technician and necessary equipment to ensure reliable operation of critical infrastructure. Further funding is requested to sustain overnight outdoor sheltering sites, addressing legal obligations and providing sanitation, security, and crime prevention measures. Additionally, a review of Kelowna’s police services is proposed to evaluate resource allocation and service models, building on a prior study to guide future operational improvements. These measures collectively support Kelowna’s commitment to enhancing public safety and meeting Council’s crime and safety priorities. Capital requests: The 2025 Crime & Safety Capital Requests for Kelowna include two significant projects. First, funding is requested for the Glenmore Protective Services Building, which will include new fire hall facilities, protective services training areas, site development, and the demolition of the current Fire Hall #5, with the land being returned to agricultural use. Second, improvements to the Queensway Transit area are planned to address security concerns and support the city’s growth. These upgrades include enhancements to Bennett Plaza, transit operations, security infrastructure, bicycle storage, public washrooms, and mobility hubs. Traffic flow updates, art installations, and patio expansions are also included.

Affordable Housing Council Priority Actions: 1. Meet provincial/local affordable housing targets with support from the Province 2. Complete Housing Action Plan including incentive options 3. Partner on the creation of a low-cost affordable housing pilot project 4. Investigate options to protect renters impacted by redevelopment projects and protect existing rental stock Operating requests: The Strategic Land Development Projects department drives the City’s Official Community Plan and corporate goals through innovative real estate strategies. With the objective to have improved housing supply to meet the community’s

2025 FINANCIAL PLAN

CITY OF KELOWNA

needs, budget is requested for professional services like legal advice, appraisals, and design work, with costs typically recouped through redevelopment and property sales.

Homelessness Council Priority Actions: 1. Advocate for a regional care facility (e.g. Red Fish Healing Center model) 2. Complete the delivery of tiny home units committed to by the Province 3. Facilitate a purpose-built permanent shelter with ‘wrap-around’ supports and graduated housing options 4. Assess feasibility of care and delivery models such as a multi-care site There are no operating or capital requests for this priority in 2025.

Transportation Council Priority Actions: 1. Complete the functional design of the Hwy 33 multi-modal traffic corridor and propose a partnership delivery model to the Province 2. Secure funding for a new transit operations centre 3. Enhance traffic safety (e.g. traffic calming and pedestrian infrastructure) 4. Explore alternative modes of transportation between UBCO/YLW and downtown (e.g. light rail) 5. Improve transit service including expanding the transit pass program (e.g. Community U-Pass) 6. Improve traffic flow and capacity on major road networks (e.g. roads bundle) Operating requests: The 2025 Transportation Operating Requests focus on advancing key transit and mobility initiatives. Funding is proposed for a consultant to support Council's advocacy efforts, beginning with a strategic campaign for the Highway 33 multi-modal corridor. Additional budget is requested for transit operations to address rising costs, adopt new technologies like the Umo electronic fare system, transition to electric buses, and expand the transit maintenance facility, with phased funding to mitigate tax impacts. Planning for the Hollywood Transit Centre continues with budget allocated for design coordination and site servicing, supporting grant applications under the Federal Public Transit Fund. A transit fare review is planned to assess rates, equitybased fare options, and community access, alongside a mandatory U-Pass referendum. Lastly, funding is sought to implement the Safe Mobility Action Plan, aiming to reduce traffic injuries and fatalities through education, traffic signal updates, bylaw changes, and speed control measures. Capital requests: The 2025 Transit Capital Requests focus on improving transit exchanges. Projects include reconfiguring the Mission Recreation Transit Exchange to enhance rider comfort and reduce delays, expanding the Okanagan College Exchange with additional bays and better integration with active transportation, and upgrading the Rutland Exchange with new bays, parkand-ride facilities, and a mobility hub. These initiatives, developed with BC Transit, aim to improve capacity and connectivity. Roads capital projects focus on enhancing connectivity, safety, and capacity across Kelowna. Key initiatives include intersection upgrades at Springfield/Benvoulin/Dilworth, extensions for Burtch Road and Clement Avenue, and active transportation improvements along Glenmore Road and Lakeshore Road. Projects also involve extending Commonwealth and Frost Roads, upgrading the KLO Road bridge, and improving Hollywood and Stewart Roads. Additional plans include Spall Road enhancements for the Parkinson Recreation Centre and extending Sutherland Road to support Landmark area development. These upgrades aim to support growth, improve access, and accommodate multi-modal travel with necessary planning, design, construction, and land acquisition. Funding is requested for two active transportation projects. One involves creating north-south protected bike lanes through Downtown Kelowna, connecting key locations like the Bertram Multiuse Overpass and the Cawston ATC. This will enhance cycling access, especially for the new UBCO campus. The second project is the Rutland Neighbourhood Bikeway, which will

2025 FINANCIAL PLAN

CITY OF KELOWNA

develop two phases connecting various areas in Rutland. Both projects will include design, land acquisition, and construction.

Agriculture Council Priority Actions: 1. Protect agricultural lands 2. Continue to ensure farmland is used for permitted uses 3. Ensure sufficient & high-quality agricultural water supply Capital requests: Non-potable water is used to support the agricultural industry in Kelowna. Budget is requested to ensure consistent irrigation and fire protection services for City customers using this water system. This annual program includes renewing critical infrastructure such as mainlines, hydrants, pump stations, reservoirs, and pressure reducing valves (PRVs) to maintain reliable service.

Climate and Environment Council Priority Actions: 1. Complete the Climate Resilient Kelowna Strategy 2. Continue to include ‘Climate Lens’ in decision making to assess mitigation and adaptation 3. Increase urban tree canopy (e.g. tree-lined medians) 4. Pilot energy concierge program to enable retrofits in buildings Operating requests: The 2025 climate and environment operating requests focus on two major projects. The first is wildfire fuel mitigation, which aims to reduce wildfire risk and improve forest health by removing high-threat vegetation in natural areas, with a 10-year plan to address 606 hectares. The second is the Water Efficiency Program, which includes hiring a Water Efficiency Coordinator to implement conservation programs, monitor water usage, and educate the public to reduce water consumption. Capital requests: The 2025 climate and environment capital requests include several sustainability initiatives. The Airport Carbon Neutral Initiatives aim to help the airport reach carbon neutrality by 2030, with funds requested for electrification strategy design, electric equipment, infrastructure, and solar installation. The LED Lighting Upgrades will replace obsolete lighting at various City locations with more energy-efficient options. Additionally, Electric Vehicle Infrastructure Installation is planned to support Fleet Services' green initiatives, involving the procurement and installation of electrical infrastructure and chargers, guided by the Green Fleet Strategy.

Economy Council Priority Actions: 1. Seek opportunities to enhance economic diversification 2. Attract new employment and support existing business growth 3. Assess the City’s supply of employment lands 4. Consider the City’s investment into economic development Operating requests: The 2025 operating requests include several initiatives to enhance Kelowna's growth and development. The Economic Development Strategy aims to review and evaluate regional economic strategies, identify municipal support programs for businesses, and clarify the City’s role in economic development efforts. Events Procurement and Delivery seeks additional staff resources to manage the growing number of outdoor events, including major events like the 2025 Montana's Brier and the 2026 BC Summer Games. The budget requests a new Community Development Coordinator to help with event procurement and delivery. Finally, the Airport Strategic Enhancements request funding for four key positions to support the

2025 FINANCIAL PLAN

CITY OF KELOWNA

airport's strategic goals, including capital projects, project coordination, and commercial development, in line with the Airport's 5-Year Human Resources Plan. Capital requests: The 2025 Council Priority Economy Capital Requests include several key infrastructure projects at Kelowna International Airport (YLW), such as the continuation of the terminal building expansion, upgrades to airside equipment and lighting, and pavement rehabilitation. Additional requests focus on expanding childcare facilities, enabling works for a new hotel and parkade, and flood protection along Mill Creek. There's also funding for the development of marine facilities, including docks and moorage buoys, to enhance public services at Kelowna's waterfront. These projects support economic growth and airport expansion.

Our People Corporate Priority: 1. Leadership everywhere Leadership and management are two different things. Leadership is about seeing opportunities to make things better, influencing how we approach work and deliver our services, and supporting our colleagues along the way. Leaders motivate others to achieve something new or make something better. Our people take charge of their learning and growth, and are well-supported by their managers and the organization. Operating requests: The Staff Development and Retention Program focuses on retaining and developing Kelowna's workforce of over 1,200 employees. The budget supports staff training, recognition, and an in-house Local Government Certificate Program in partnership with Capilano University. This initiative aims to reduce turnover and ensure a skilled, qualified workforce to meet the City's growing demands.

Digital Transformation Corporate Priority: 1. Making it easier to do business with the City, and within the City 2. Using data to make decisions It should be convenient and easy for residents to do business with the city online. Internal business processes and systems should be efficient, and we strive to automate services where we can so staff can work on higher value activities. In-person service will remain an important part of our customer service experience. Operating requests: The 2025 digital transformation budget focuses on improving operational efficiency and public services through innovative technologies. Key initiatives include adding a Business Systems Analyst to the GIS team, strengthening project management for strategic alignment, and hiring a Police Services Disclosure Specialist to meet disclosure requirements. Additional resources are requested for an Innovation Consultant to enhance digital customer service, such as AI assistants, and for the implementation of Microsoft Fabric to simplify data analytics. A community events calendar will centralize event information, and funding for privacy consulting will ensure data protection during the digital transition. These efforts aim to improve both internal operations and public-facing services while prioritizing data security.

Active Financial Management Corporate Priority: 1. More proactive & agile budgeting 2. Minimize reliance on taxes Residents expect good value from their tax dollars. All staff have a responsibility to be efficient in delivering services and reducing lower value activities where possible. We also strive to grow our non-tax revenue in specific areas through mechanisms like the ‘user-pay principle’, grants, partnerships, or business unit investment.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Operating requests: The 2025 Active Financial Management Operating Requests include two initiatives. First, budget is requested to develop a Partnership Development Strategy, building on the 2024 Partnerships Policy, to guide high-impact community partnerships aligned with City and Council priorities. Second, funding is requested to continue Phase 3 of the Stormwater Utility Business Case, focusing on implementation and change management. This phase will involve bylaw development, a revenue framework, public engagement, and change management, dependent on Council decisions.

Other Corporate Priority: 1. Deliver core services to residents Many requests for budget are directly aligned with Corporate and Council priorities but some are requested to continue to maintain service levels in core programs, services, and infrastructure. Operating requests: Maintaining the delivery of core services to residents is crucial for ensuring the well-being, safety, and quality of life of the community. Essential services like public safety, clean water, waste management, and transportation support daily activities, contribute to public health, and help maintain a functioning society, while disruptions can lead to increased risks, dissatisfaction, and economic setbacks. The 2025 budget includes several requests to maintain delivery of core services to residents including Parking Services Planning to manage increasing parking demands, and Park Maintenance to maintain new and redesigned parks. Increased investment is requested for Pavement Crack Sealing to extend road lifespan and reduce costly repairs, as well as in Water Operations to maintain water systems and meet regulatory requirements. Capital requests: Maintaining capital infrastructure is essential for ensuring safety, reliability, and cost efficiency, while also supporting economic growth and quality of life. Regular upkeep supports sustainability by minimizing environmental impacts and helps cities prepare for future growth, ensuring infrastructure can meet rising demands. The 2025 budget includes requests for various annual capital programs. These programs cover the replacement of outdated equipment, improvements to parking and park facilities, solid waste management, and wastewater treatment. The funds are aimed at ensuring efficient and reliable services for city customers.

Capital projects by location The capital plan works to create vibrant urban centres, a balanced transportation network and an inclusive community. Infrastructure projects improve and maintain outdoor spaces, buildings, active transportation networks, utilities, roads and bridges. New in the Financial Plan is a graphical presentation of the 2025 Capital projects. This map view allows the reader to easily see what construction is planned for during the year and where it will occur. Further details can be found on the Current capital projects website.

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 FINANCIAL PLAN

CITY OF KELOWNA

Property taxation and major contracts Property taxation The annual property taxation demand is the difference between net operating and capital expenditure requirements and the revenues generated by the City. It is the amount of money the City needs to collect from property owners for the operations, maintenance and capital improvements planned for the fiscal year. The net property owner impact is the annual property taxation demand less additional tax revenue generated through new construction. Taxation Revenue from new construction is based on Preliminary Assessment Roll information from BC Assessment (BCA). New construction revenues are used to reduce the overall net property owner impact. In 2025, the new construction revenue is estimated to be $5.2 million. The finalized new construction assessment value will be available from BCA in the second quarter of 2025 and will be reflected in the Final Budget volume of the Financial Plan. It is important to note that while it is possible to project the average property tax increase using the overall assessment base and the revenues required to operate the City, the impact on each individual property owner will vary depending on the relationship of their assessment change to the average. Further analysis will be required when BCA provides the Revised Assessment Roll in the second quarter of 2025. For 2025, the overall taxation demand has increased from $191.2 million to $204.8 million, which includes general revenue, net operating and capital. Taking into consideration the revenue generated from new construction, the average impact on existing property owners is 4.36 per cent. Salaries, wages and fringe benefits A significant portion of the annual operating budget is for staffing. The City of Kelowna has four collective agreements for municipal staff: • CUPE Local 338 – collective agreement ratified in 2023 for the term 2024 to 2025 • IAFF Local 953 – collective agreement was renewed in 2022 for 2020 to 2024 • CUPE Local 338 - Airport – collective agreement was ratified in 2022 for the term 2020 to 2026 • IBEW Local 213 – collective agreement ratified in 2021 for the term 2020 to 2024 Fringe benefit load factors are reviewed annually and are reflected throughout the divisional operating budgets. RCMP contract The current RCMP collective agreement expires on March 31, 2025. The 2025 General Fund Police contract staffing is at 244 members. Reserve funding is being used as a budget tool to manage anticipated surpluses from the RCMP contract. These reserve funds will only be utilized if the RCMP contract strength is fully met. The average cost per member is estimated at $236k for 2025.

2025 FINANCIAL PLAN

CITY OF KELOWNA

STRONG FINANCIAL MANAGEMENT

2025 FINANCIAL PLAN

CITY OF KELOWNA

STRONG FINANCIAL MANAGEMENT THE CITY & ITS DIVISIONS The City of Kelowna is governed by an elected Mayor and eight Councillors for a four-year term (2022 – 2026). City Council, which represents the City at large and our residents, has one employee – the City Manager – who administers City operations. A eleven-member Senior Leadership Team reports to the City Manager, representing all lines of business for the City and, by extension, all contracted services.

2025 FINANCIAL PLAN

BUDGET PROCESS City plans that influence the budget include: • • • • • • •

Council Priorities Official Community Plan 10-Year Capital Plan 2030 Infrastructure Plan 20-Year Servicing Plan Imagine Kelowna - Community Vision Community Trends report

Input from City staff, City Council, outside agencies funded by the City, citizens, various City committees, and guidance from the Imagine Kelowna community vision, all helps to build a solid annual and five-year financial plan that meets the needs of our growing community.

Public input Public input is gathered in a variety of ways. Citizens are able to provide input through Imagine Kelowna, citizen surveys, the elected mayor and council members, and public council meetings. All of which allow for the public to engage in the decision-making process for their city, voicing concerns and recommendations for their community. Imagine Kelowna is the result of an 18-month long conversation with over 4,000 resident contributions about the future of our City. It is the vision, principles and goals created by our community, for our community. The principles and goals of Imagine Kelowna guide the development of plans such as the Official Community Plan, the Transportation Master Plan and other initiatives, and draw on the rich data of public input and research that was compiled through the extensive engagement process. The vision of Imagine Kelowna will unify strategies and projects that already exist or are underway to make sure they work together to build the kind of community Kelowna residents want. The Citizen Survey is conducted to determine how satisfied the public is with municipal programs and services, and to learn citizens’ service priorities. Responses are weighted by age, gender, and city-wide distribution to accurately reflect Kelowna’s population. Results are benchmarked against other local governments. Insights gained by this research help us make important decisions regarding planning, budgeting, and service improvements. The City strives to balance the needs of all citizens in decision making and offers engagement opportunities to our communities to gather feedback and ideas on everything from community vision to park design.

CITY OF KELOWNA

Engagement activities include surveys, focus groups, online discussion forums, information sessions and virtual panels.

Budget development The City of Kelowna’s annual budget aims for a balance between setting a reasonable tax rate and delivering services expected by residents and businesses. As the City is limited by the amount of resources available, the budget helps in determining which objectives have the highest priority and will produce the greatest positive impact in our community. Every year City Council, the City Manager and City staff work together to develop the annual budget. Several plans are used as the basis for the development of the Financial Plan, including the Official Community Plan (OCP), 2030 Infrastructure Plan, 20-year Servicing Plan, 10-year Capital Plan and Council Priorities. Linking to strategic plans All operating and capital requests strive to support Council and Corporate Priorities and therefore, have been specifically linked to a Strategic Direction and Result Statement. General Managers and Divisional Directors have outlined the activities that will be undertaken in the current year to support the Council and Corporate Priorities. These activities can be found in the first few pages of each service area section and are tied back to a specific priority. Through the use of service work plans, the City will embark on a purposeful effort to effectively coordinate human and financial resources to achieve the priorities as set by Council and the community.

Budget cycle & timeline The City uses a line item approach to budgeting within service areas. Base budgets are subject to annual review and scrutiny to identify need in relation to approved service level requirements. A year-round process The City’s budget cycle is a near year-round process with the fiscal year beginning January 1 and ending December 31, guided by the requirements of the Community Charter as described in Section 165 and Section 166. The City Manager and Council meet in June each year to determine priority areas for the following budget year. This information is shared with all service areas to assist with the preparation of goals and objectives, and the review and analysis of budget requirements to ensure they align with Council priorities.

2025 FINANCIAL PLAN

CITY OF KELOWNA

In September, each budget request is carefully reviewed, and a recommended priority is assigned by the Budget Review Team. This evaluation considers human resources and financial impacts, as well as opportunities for digital transformation and risk mitigation. Following this review, the recommended prioritization is presented to the City Manager. The City Manager and Financial Planning team then meet with each service area to discuss their performance metrics and requested enhancements. This discussion and the accompanying information enable the City Manager to finalize the prioritization of budget requests to be included in the Preliminary Budget Volume 1, which is prepared for deliberation and adoption by Council in December. Projects not completed in the previous year are presented to Council, as part of the Carryover Budget – Volume 2, in March after accounts are finalized through the year-end process. The City is in the process of transitioning from full project budgeting to cash flow budgeting. Cash flow budgeting is preferred over full project budgeting as it focuses on the timing of cash inflows and outflows, ensuring that an organization has the liquidity to meet its financial obligations as they arise, and aligning annual property tax collection with anticipated spending. By focusing on the timing of cash inflows and outflows, cash flow budgeting allows organizations to monitor and adjust budgets in real-time, based on actual performance, which can help manage rising costs caused by inflation. Cash flow budgeting also allows for more informed decisions about funding, borrowing, or adjusting operational strategies. This level of insight helps prevent cash shortages or surpluses, and supports better financial planning. As we mature into this new methodology, it is expected that the number of carryover projects will be significantly reduced. Final adjustments to the Financial Plan, including requisition amounts from other taxing jurisdictions, are presented to Council in late April as part of the Final Budget – Volume 3. These three volumes combined make up the annual Financial Plan and is the first year of the City’s Five-Year Financial Plan. The Five-Year Financial Plan and the associated Tax Rate Bylaws must be adopted by May 15 each year. Budget transfers & amendments As per section 165 (2) of the Community Charter, the Financial Plan may be amended by bylaw at any time. Budget amendment reports are presented to Council each quarter with the last quarter including an amendment of the annual bylaw. Council Policies 261 & 262 ensure that the City’s overall internal control objectives are maintained and that there are no material changes to the original budget approved by Council. Appropriate approvals and back-up documentation are required for all transfer or amendment requests.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget transfers involve the re-allocation of existing approved budget and do not change the overall budget total. Budget amendments do increase the City’s budget total but must include a funding source other than taxation. Council approval is required to cancel an approved project or to add a new program or project over $200k. 2025 budget calendar Description 2024

Prioritization There are two priority levels used for budget requests: •

• Required Date

Council receives and adopts the annual update to the 10-Year Capital Plan

Sep. 9

Establish City priorities for the 2025 budget year, based on discussion with Council & City Manager

Jun. 26

City Manager meets with each service area to review prioritization of all capital and operating requests

Oct. 16-17

Council receives overview presentation of the 2025 Preliminary Budget

Dec. 2

Council reviews and adopts the 2025 Preliminary Budget – Volume 1

Dec. 5

2025 Council reviews and adopts Carryover Budget – Volume 2

Mar. 17

Council reviews and adopts Final Budget – Volume 3 and the Five-Year Financial Plan 2025-2029

Apr. 28

Priority 1 (P1) items include budget requests that are essential to maintain current service quality or suggest improvements to enhance service levels. These items have been included as part of the recommended budget. Priority 2 (P2) items include budget requests intended to enhance service levels but are not recommended in the effort to maintain an acceptable general taxation demand or utility user rate.

P1 requests are included in the service area totals but the P2 requests are not. The priority of each budget request is shown on the top right-hand corner of the request. Operating requests are shown as one-, two- or three-year financial impacts and are marked as ongoing or one-time. Changes in years two or three of ongoing requests are automatically added to the base budget of those years. Capital project budgets are presented in full as part of the request summary of each service area with the cash flow expectations detailed by year. All capital budgets are presented and approved annually, with project amendments made as part of the annual update to the 10-Year Capital Plan. All capital submissions have been evaluated to ensure alignment with Council Policy No. 342 Tangible Capital Assets. Operating impacts of capital requests are included with the related capital request. When a vehicle or equipment is required as part of a new position, the capital cost is presented in the operating request and will be transferred to the capital program upon Council approval.

2025 FINANCIAL PLAN

CITY OF KELOWNA

BASIS OF ACCOUNTING/BUDGETING Basis of accounting Definition The basis of accounting refers to the methodology under which revenues and expenditures are recorded and reported in the financial statements. Specifically, as it relates to the timing of measuring and recording of transactions, regardless of the measurement focus applied. The focus within the budget process is that all interfund transactions are budgeted, but in the financial statements all material interfund transactions and balances are eliminated in preparation of the consolidated financial statements. Accrual basis of accounting City of Kelowna revenues and expenditures are recognized on an accrual basis of accounting. Revenues are recognized in the accounting period in which the transaction or event occurred that gave rise to the revenue. Expenses are recognized in the accounting period in which the goods or services were acquired, or a liability was incurred. •

•

• •

Inventory is valued at the lower of cost, determined principally on a weighted average and specific item basis, or replacement cost Portfolio investments that are quoted on an active market are recorded at their fair market value. All other investments are recorded at cost. Tangible capital assets on the consolidated statement of financial position will be shown at the net book value (cost, less amortization, less disposal) Tangible capital assets will be impaired if required Amortization, gain or loss on disposal, and writedowns of tangible capital assets will be a charge against annual income

Basis of budgeting The basis of budgeting is on the modified accrual basis. The acquisition of capital assets and the repayment of long-term debt are considered as expenditures in Municipal Fund Accounting and are required to be included in the Financial Plan. Revenues are budgeted in the year they become measurable and available to finance expenditures. Proceeds from borrowing are considered to be revenues. Proceeds from the sale of assets are considered to be revenues and the related gain or loss is not.

2025 FINANCIAL PLAN

POLICIES The City of Kelowna is committed to a regular review and updating of the following Council & Corporate policies that guide the preparation of the Financial Plan.

Financial planning policies Balanced Budget | The Financial Plan is developed for the City of Kelowna to operate within its means. Each department is expected to operate within the limits of the financial resources identified, maintaining a balanced budget for the year. The Utility Funds will have planned deficits some years based on large capital projects in that year. When over-expenditures are known, the department must first investigate transfer of budget from other sources within their area. Use of surplus or reserve accounts is available under special circumstances to cover budget shortfalls. Long Range Planning | The Community Charter mandates that a Five-Year Financial Plan is prepared. The plan must contain current year operating and capital costs along with projected future costs and revenues. The plan is adopted by bylaw in May after Final Budget requests are approved by Council. The 20-Year Servicing Plan and the 2030 Infrastructure Plan sets the direction for infrastructure investment to 2030. The Council approved 10-Year Capital Plan is guided by the direction set in the 2030 Infrastructure Plan and is updated annually to be responsive and practical. The annual capital program is directed by the 10-Year Capital Plan but is responsive to emerging issues and priorities. The planning horizon for the 10-Year Capital Plan referenced in this document is 2025 – 2034. Long-term financial models are developed for the utilities to ensure that rates and fees are set at a level that allows the funds to be selfsupporting (without taxation assistance). There is a strong link between the various plans as they flow from the future, into the current year requirements. Asset Inventory | Civic facilities are reviewed on an annual basis to determine the requirements for maintaining the asset. Funding is included in the base operating budget in the Facilities Department which supports repair and maintenance projects. The amount included in the base is reviewed annually to ensure it is adequate to address the facilities requirements.

CITY OF KELOWNA

Water, wastewater and storm water systems are reviewed annually to determine the priority for replacement of the older infrastructure. Heritage Building Tax Incentive Program | The City of Kelowna is committed to the ongoing restoration, rehabilitation and maintenance of buildings on its “Heritage Register.” It is acknowledged that the restoration, rehabilitation and structural maintenance of heritage buildings and particularly agricultural, commercial, industrial and institutional buildings can be costly and cost prohibitive for some property owners. The Heritage Building Tax Incentive policy has been created in order to encourage the restoration and rehabilitation of agricultural, commercial, industrial and institutional buildings listed on the City’s Heritage Register. Tangible Capital Asset | The PSAB (Public Sector Accounting Board) Section PS 3150 outlines standards on how to account for and report tangible capital assets in government financial statements. The Tangible Capital Asset Policy promotes sound corporate management of capital assets and complies with the Public Sector Accounting Board (PSAB). Department requests are measured against Tangible Asset Criteria and where they do not meet the criteria, are reported as operating expenses of the current year.

Asset Category Land Land Improvement

Useful Life (in years) No Amortization

Minimum Threshold

15-60

$50,000

Capitalize

Buildings Building Improvement Machinery and Equipment

40-75

$100,000

10-40

$100,000

$10,000

IT Infrastructure

$10,000

Infrastructure

20-100

$100,000

A portion of the road network is assessed each year under the Pavement Management Program. The condition assessment is updated and a listing of priority road improvements for the next five years is prepared. Works are coordinated with the various utilities to provide the most cost-effective service with the least disruption on the community.

2025 FINANCIAL PLAN

Revenue & expenditure policies Revenue | A diversity of revenue sources is encouraged, and appropriate recovery levels should be established for municipal services. The level of community resources that the City dedicates toward municipal services should be directly related to the extent of benefit to the community and the City’s ability to pay. Higher rates of cost recovery for certain services will be achieved by charging fair market value for services when it is appropriate to do so and by using prudent cost control measures. Fees and charges should be reviewed annually for the level of cost recovery and reasons for not recovering full costs should be identified and explained. One-time revenues should not be used for ongoing costs except in the case of startup costs for a new program. These programs should be carefully reviewed and justified through the budget process. Expenditure | Regular monthly, quarterly and annual financial reports are prepared that compare the actual revenues and expenditures to budgeted amounts. These reports are distributed to management at various times of the year and presented to Council quarterly. Budget must be in place for all expenditures at the Division level for operating costs and at the program level for capital projects. An expenditure may be made for an emergency that was not contemplated in the financial plan, but the plan must be amended, as soon as practical, to include the expenditure and the funding source. Debt | All borrowing, debt, or liabilities must adhere to legislative requirements and comply with the relevant Community Charter regulations. Debt must only be undertaken if it balances sustainability, flexibility and will not be used to fund current operating expenses. Debt is one component of the capital financing structure and must be integrated into realistic long-term financial plans. The maximum debt servicing should not exceed 15 per cent of City own source revenues or 8 per cent of annual tax demand and cannot exceed debt servicing limits established by the Province.

CITY OF KELOWNA

Surplus Allocation | Any surplus generated in a year will be allocated to reserves as recommended by the City’s Audit Committee. Consideration is given to the requirements identified in the 2030 Infrastructure Plan, the area where the surplus was generated, future capital requirements, or to offset funding shortfalls from other anticipated funding sources. The City will maintain an accumulated surplus account within the general fund of three per cent of the previous year’s taxation requirement to assist with the expenses of unforeseen emergencies and to ensure a continued strong financial position. Tax Exemption | The Community Charter states that a council may exempt land or improvements, or both, from taxation. The City of Kelowna recognizes the significant value of volunteers, volunteer groups and agencies to the spiritual, educational, social, cultural, and physical wellbeing of the community. A permissive tax exemption is a means for Council to support organizations within the community that further Council’s objective to enhance the quality of life while delivering services economically to the citizens of Kelowna. The Permissive Tax Exemption Policy is intended to provide clarity, consistency and certainty to the municipality, the public and prospective applicants. Tax Distribution | The Community Charter states that the financial plan must set out the objectives and policies of the municipality in relation to the distribution of property value taxes among the property classes that may be subject to the taxes. The Tax Distribution Policy establishes the methodology for the distribution of taxation demand among property classes to reflect the assessment changes in property market values.

Reserves | Council Policy 384 provides guidance for the responsibility of reserve oversight and the use of reserves to support the goal of providing adequate infrastructure, services, and resources to meet community requirements, and to aid in the financial sustainability of the City. Both statutory and non-statutory reserves will be maintained to achieve policy objectives to acquire, replace, and renew major capital assets; to ensure stable, predictable tax and utility levies; to minimize the financial impact of unusual and unexpected events; to achieve long-term financial stability; to balance the costs of maintaining sufficient reserve levels to current and future taxpayers.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Investment & cash management policies The City will maintain sufficient short term liquid assets to enable it to meet its annual operating budget as required. Due to the uncertain nature of future expenses, the portfolio will focus on high quality, liquid securities. The goal is to maximize the investment return on the fund, while ensuring that the liquidity, quality and diversification requirements are satisfied. The primary performance objective is to achieve a rate of return greater than the Canada Consumer Price Index for all items. Additionally, the fund’s performance should match or exceed the Municipal Finance Authority of BC Shortterm Bond Fund and Money Market Fund for the same period. Permitted investments in the fund are eligible securities defined in Section 183 of the Community Charter and investments in internally financed City of Kelowna projects. The portfolio of invested funds will be diversified into AAA, AA, or A rating investments and is restricted to a maximum of 60% A rated investments. Maximum exposure to a single government (Government of Canada, BC MFA, Provincial, and Municipal) or corporation, as a per cent of the total portfolio will be as follows: Rating AAA AA A

Government 70% 50% 30%

Corporation 40% 30% 20%

In addition, the maximum exposure for a single internally financed project is 15 per cent of the total portfolio and the maximum exposure for all internally financed projects is 30 per cent of the total portfolio. Funds will also not be borrowed to acquire securities or otherwise deal in margin trading. Reports on the fund’s performance will be provided annually to Council in the first quarter of the following year and will include investment information on: cash assets relating to cash flow demands of the City, the City Cemetery Care Maintenance Funds and the Endowment Fund.

Capital strategies Previous Councils approved the following 10 major corporate strategies to provide direction for long term capital plans. ▪

Park Acquisition Strategy | This plan provides for the park land acquisition standard of 2.2 hectares per thousand of population and the acquisition of natural space by means other than cash outlay.

▪

Parks Development Strategy | Parks development costs will be a function of the capital allocation deemed reasonable annually

▪

and are to be shared by the community and development cost charge fees. Waterfront Amenities Strategy | An annual allocation is provided for some waterfront land acquisitions, but the emphasis is on private enterprise or community contributions to develop other amenities. Major Recreational Facilities Strategy | Major recreational/cultural facilities are budgeted with substantial emphasis on funding from public private partnerships, public sector partnering and other contributions. Pay-as-you-go capital and reserve funding will be required to minimize long-term debt financing. Civic Buildings Strategy | Buildings will be planned and constructed as required, subject to funding availability, with a focus on Public Private Partnerships in the development of these future civic buildings. Pavement Management Strategy | Annual general revenue contributions are to increase from the baseline of $1.9 million over the 10-year program to achieve an overall roads condition of 73 out of 100. Storm Drainage Retrofit Strategy | Annual general revenue contribution of $1.6 million to this program over the 10-year plan. Generation/Disposition of Surplus Strategy | $1.0 million is to be allocated to reserves each year from annual surplus in order to mitigate the need for abnormal tax increases or incurring of new debt and to provide for capital expenditure opportunities which might otherwise require an alternative approval and/or referendum process. Capital Pay-As-You-Go Strategy | 40 per cent of new construction taxation revenue each year is to be allocated to capital, increasing the percentage of capital to Municipal Taxation to a maximum of 30 per cent. Debt Management Strategy | The existing strategy of using alternative funding for discretionary expenditures, capitalizing on debt reduction opportunities and using short term borrowing has been maintained. Maximum debt servicing should not exceed 15 per cent of City own source revenues or 8 per cent of annual tax demand.

2025 FINANCIAL PLAN

CITY OF KELOWNA

FUNDS & DEPARTMENTAL RELATIONSHIP Municipal funds The City’s resources and operations are separated into various funds. Each fund is a separate fiscal and accounting entity organized by their intended purpose. They are segregated to comply with finance related legal and contractual provisions. The use of these funds is restricted by the Community Charter and associated municipal bylaws. The following funds are used for accounting and financial reporting purposes: General Fund | This is the largest fund and covers all municipal operations aside from the utilities and airport funds. This fund is not allowed to operate at a deficit. The difference between annual expenditures and other revenues generated by the fund forms the annual property tax levy.

Wastewater Fund | This fund provides for the capital construction, operation, and maintenance of wastewater treatment including sewer mains, lift stations and treatment facilities. Revenues generated in this fund, or prior years’ surplus, must be sufficient to offset all operating and capital costs of this utility on an annual basis.

Water Fund | This fund provides for the capital construction, operation, and maintenance of a water utility within specific areas of the City not served by water districts. Revenues within this fund, or prior years’ surplus, must be sufficient to cover all operating and capital costs of this utility on an annual basis.

Airport Fund | The Kelowna International Airport operates within this fund, and is responsible for capital construction and ongoing administration, operation, and maintenance. This fund is required to be self-sufficient so that revenues generated must offset all operating and capital expenditures.

The following table lists the City’s service areas and the funds they use: General Fund Airport Arts & Culture ü Community Development ü Community Safety & Bylaw ü Development Planning ü Development Services ü Fire Safety ü Governance & Leadership ü Parking ü Parks ü Partnerships Office ü Police Services & RCMP ü Solid Waste & Landfill ü Sport & Recreation ü Stormwater & Flood Protection ü Transit ü Transportation ü Wastewater Utility Water Utility Enabling Services ü

Water Fund

Wastewater Fund

Airport Fund

ü ü

2025 FINANCIAL PLAN

CITY OF KELOWNA

Revenues used for projects in these funds may also come from the City’s Statutory Reserve Funds: Land Sales Reserve Fund | This fund was established in accordance with Provincial Legislation. Sales proceeds from all properties disposed of by the City are required to be placed in this reserve fund. Council may, by bylaw, use this fund to purchase land for general municipal or utility purposes. Parking Reserve Fund | This fund was established to provide funds to purchase land for parking lots, develop onstreet parking and to construct parking lots or parkades. The General Fund contributes net revenues from the operations of parking lots, parkades and parking meters to the Parking Reserve Fund. Both the revenues and expenditures relating to the collection and use of these funds will be found in the General Fund Financial Plan. Capital Works, Machinery and Equipment Reserve Fund | This reserve fund was established by the City to provide funds for such items as the purchase of replacement equipment, retirement of capital debt and replacement of cemetery property. Revenue for this reserve is provided from various sources within the General and Utility Funds. The estimated amounts of the revenue to be contributed may be found in the General or Utilities Funds Financial Plans along with the budgeted use of these funds. Density Bonusing for Public Amenities and Streetscape Reserve Fund | This fund was established to hold payments associated with the density bonus provisions of Zoning Bylaw 12375. These funds will be utilized for urbanization and streetscape amenities, including sidewalks, curb and gutter, drainage, landscaping, street furniture, bus pullouts, improved on-street parking design and other boulevard streetscape components. Septic Removal Specified Area Reserve Fund | This fund is to hold and manage the funds collected for the design and construction of sanitary sewer connection area projects, which are identified in Sewer Connection Area Prioritization Bylaw No. 12343. Non-statutory reserves | The City of Kelowna also maintains reserves for future expenditures. These are nonstatutory reserves (reserve funds are ‘statutory’ reserves) which represent a contribution of surplus for specific purposes. In the financial plan the use of these reserves for future expenditures is shown under ‘Accumulated Surplus’ for either revenues or expenditures. Deferred Development Cost Charges | Development Cost Charges are collected to provide funding for required expansion of parkland acquisition and development, roads, water works, sewer works, wastewater treatment, and drainage infrastructure resulting from new development. Monies collected may only be used for the specific purpose and in the specific area for which the funds were collected. The financial plan budget for the use of these funds will be reflected in the appropriate fund.

2025 FINANCIAL PLAN

CITY OF KELOWNA

RESERVES & FUND EQUITY Council Policy No. 384, Financial Reserves, was adopted in July 2021. This policy provides guidance for the responsibility of reserve oversight and the use of reserves to support the goal of providing adequate infrastructure, services, and resources to meet community requirements, and to aid in the financial sustainability of the City. Both statutory and non-statutory reserves will be maintained to achieve policy objectives to acquire, replace, and renew major capital assets; to ensure stable, predictable tax and utility levies; to minimize the financial impact of unusual and unexpected events; to achieve long-term financial stability; to balance the costs of maintaining sufficient reserve levels to current and future taxpayers; and to fund asset retirement obligations. The following are audited reserve and fund equity balances as at December 31, 2023 and projected balances to the end of 2025. The 2025 projected balances assume all 2024 budgeted projects will be completed and funded in that year, however, some of the larger projects may take several years to complete and the actual reserve balance at the end of 2024 and 2025 may be higher than indicated. Actual Balance 2023

Projected Balance 2024

5,251 120,095 100,906 186,462 412,714

5,251 118,445 73,668 109,018 306,383

— — 2,849 52,376

— (1,650) (14,332) (114,009)

5,251 116,795 62,184 47,385 231,616

48,810 19,188 17,771 85,770

41,951 9,332 10,492 61,775

— — 508

(8,930) — (2,901)

33,021 9,332 8,099 50,452

13,222 27,277 174 40,673

13,131 25,441 174 38,746

497 3,542 —

(8,502) (3,850) —

5,125 25,134 174 30,433

2,407 51,978 54,385 Total Reserves & Fund equity 593,541 Development Cost Charges 213,684 *Fund equity is also referred to as accumulated surplus Note: Totals may not add due to rounding.

2,407 23,840 26,248 433,151 188,608

— 112,407

— (121,120)

172,179 37,000

(275,295) (80,988)

2,407 15,127 17,534 330,035 144,620

($ thousands) General Fund Fund Equity Endowment Reserve Fund Reserves for Future Expenditures Statutory Reserve Fund Wastewater Fund Fund Equity Reserves for Future Expenditures Statutory Reserve Fund Water Fund Fund Equity Reserves for Future Expenditures Statutory Reserve Fund Airport Fund Fund Equity Reserves for Future Expenditures

Projected Projected 2025 2025 contributions appropriations

Projected Balance 2025

2025 FINANCIAL PLAN

CITY OF KELOWNA

Reserve & fund equity summary by type The Development Cost Charges (DCC) are shown separately from other reserves and fund equity as they are revenues received for specific projects and cannot be used for any other expenditures. Some of the deferred DCC balances include a receivable portion which is not available for use at December 31, 2025. Major projects being funded by DCC reserves in the 2025 preliminary budget include DCC Parkland acquisition, Recreational park development (Glenmore and Parkinson sites), road corridor improvements along Burtch Road, Glenmore Road, Frost Road, Hollywood Road North, KLO Road, Lakeshore Road, and the Highway 33 to Clement Extension, and Wastewater system upgrades. Statutory Reserve Funds are reserves earmarked for a specified purpose by Council pursuant to section 188(2) of the Community Charter. Reserve Funds are established through Council bylaw and use must align with the established purpose. The 2025 accelerated capital program relies heavily on statutory reserves funds. Major projects included in the 2025 preliminary budget consist of the KLO Bridge replacement, funded for a total of $3.7 million, Mill creek flood protection, funded for a total of $3.2 million, Prospera Place improvements, funded for a total of $2.1 million, MNP Place roof replacement, funded for a total of $2 million from the Community Works, Machinery & Equipment Fund reserves. Significant investment is also planned for Sewer Connection Areas funded $2.9 million from the Septic Removal Specified Area Fund reserve. General reserves, or reserves for future expenditures, have more flexibility of use. The 2025 preliminary budget is requesting to use these reserves to fund various 2025 budget requests such as the H2O Centre improvements of $1.5 million, Mission recreation transit exchange and Mobility hub of $750k, and to offset reduced revenue expectations in Development Planning of $2.5 million.

2025 FINANCIAL PLAN

CITY OF KELOWNA

The table below presents the same reserves, fund equity, and projected balances, categorized by service area or fund. As part of the transition to Service-Based Budgeting, the City’s reserves have been realigned to reflect this new structure. This allocation ensures funding for emergent events, rate stabilization, and one-time projects within each service area. Capital reserves have been consolidated into a reduced number of reserves and moved under the Capital Works, Machinery & Equipment Reserve Fund. This new structure provides stabilization,flexibility, and enhances process efficiency.

($ thousands) General Fund Equity General Reserves Arts & Culture Community Development Community Safety & Bylaw Development Planning Development Services Fire Safety Governance & Leadership Parks Partnerships Office Police Services & RCMP Sport & Recreation Stormwater & Flood Protection Transit Transportation Enabling Services *Special General Reserves subtotal

Actual Balance 2023

Projected Balance 2024

Contribution to reserve

Budget expend

Projected Balance 2025

5,251

—

5,251

164,125

658 1,658 500 150 3,480 3,280 1,278 1,212 8,169 8,000 9,365 200 2,997 1,346 12,299 19,076 78,919

288 419 — — — 512 — — — — 701 — 307 — 507 116 2,849

(30) — — — (2,500) (92) — (804) (1,808) — (1,825) (225) (3,468) (725) (2,801) (55) (14,332)

916 2,078 500 150 980 3,699 1,278 408 6,361 8,000 8,241 (25) (164) 621 10,005 19,137 67,435

Statutory Land 15,095 10,650 1,098 (1,900) 9,848 Parking 14,996 14,075 2,572 (3,648) 12,999 Capital Works, Machinery & Equipment 106,400 89,332 48,748 (108,461) 29,618 Density Bonus for Public Amenities & Streetscape 529 529 — — 529 Septic Removal Specified Area 9,420 5,099 466 (2,901) 2,664 Statutory Reserves subtotal 146,439 119,684 52,884 (116,910) 55,659 Endowment Fund Reserves 120,095 118,445 — (1,650) 116,795 Wastewater Reserve/Fund Equity 67,998 51,283 — (8,930) 42,353 Water Reserve/Fund Equity 40,499 38,572 4,039 (12,352) 30,259 Airport Reserve/Fund Equity 54,385 26,248 112,407 (121,120) 17,534 Total Reserves & Fund equity 593,541 433,151 172,179 (275,295) 330,035 Development Cost Charges 213,684 188,608 37,000 (80,988) 144,620 *Special Reserves include the Multipurpose Facility Investment reserve which contains the funds committed by the City for investment into the downtown multi-purpose facility (Prospera Place), and the Growing Communities Fund which contains grant funds received from the provincial government. Note: Totals may not add due to rounding.

2025 FINANCIAL PLAN

CITY OF KELOWNA

DEBT MANAGEMENT The City of Kelowna has various options available to obtain, through borrowing, funds necessary to acquire assets. Debt financing will only be undertaken in compliance with the relevant sections of the Community Charter and related regulations. Policy has been established to ensure that debt financing is used strategically to maintain the City’s financial strength and stability. The following section describes each borrowing option, the City’s legal limits, and the estimated outstanding debt balances at December 31, 2025. Under the Community Charter (C.C.) legislation, the Provincial regulations establish a limit based on the cost of servicing the aggregate liabilities of the municipality. The cost of servicing the liabilities cannot exceed 25 per cent of the total revenues for the previous year (excluding revenue received for another taxing jurisdiction, tax sharing revenues paid to another municipality, revenue from the disposition of assets, Federal or Provincial conditional grants such as water/sewer infrastructure grants and Municipal Finance Authority actuarial adjustments). To further ensure debt affordability and sustainability, the City of Kelowna debt policy also includes internal municipal debt limits of 15 per cent of City own source revenues and 8 per cent of annual tax levy revenues for tax supported debt. The City of Kelowna does not issue bonds. Borrowings are done through the Municipal Finance Authority which has a triple A rating.

General Fund debt servicing costs Net Debt Servicing Costs are budgeted at $4.9 million in 2025. The current net general debt (including internal financing) as a percentage of taxation demand is 2.4 per cent in 2025, as compared to 2.6 per cent of taxation demand in 2024. Long Term Debenture (C.C. Section 174 & 179) Long Term Debenture borrowing involves the repayment of both principal and interest over a period not to exceed 30 years. Debenture borrowing for most long-term needs requires the assent of electors through an alternative approval process and/ or the passing of a referendum.

2025 FINANCIAL PLAN

CITY OF KELOWNA

The outstanding debenture borrowing for all funds for 2025 ($ thousands) is: 2024 Total Estimated General capital fund Borrowing Balance Police Facilities 41,360 27,403 Library Parkade Ext. & Memorial Parkade 15,000 9,500 Lawrence Ave LAS 345 206 Mission Aquatic Center 29,500 6,124 Okanagan Gymnastics 800 163 General capital fund sub-total 87,005 43,396

Water capital fund South Okanagan Mission Irrigation District Local Area Service Aspen Rd. Specified Area Poplar Point Pump Station Upgrade Fischer Road Water Specified Area Cedar Creek Pump Station Water capital fund sub-total

2024 Total Estimated Borrowing Balance 441 406 48 2,000 297 7,577 10,363

36 878 79 2,024 3,423

Wastewater capital fund Brand´s Creek Treatment Plant Clifton Road Sewer Specified Area Country Rhodes Specified Area Fischer Road Sewer Specified Area Okaview Specified Area Rutland Sewer Specified Area Wastewater capital fund sub-total

2024 Total Estimated Borrowing Balance 3,800 640 267 71 435 116 2,021 540 638 44 6,822 469 13,984 1,880

Airport capital fund Airport Expansion Airport capital fund sub-total

2024 Total Estimated Borrowing Balance 22,000 4,997 22,000 4,997

Total debenture debt

133,352

53,696

Interest 1,129 413 14 1,159 31 2,746

2025 Estimated Actuarial Balance 483 25,450 192 8,777 5 189 825 4,199 22 110 1,528 38,725

Principal 17

Interest 15

2025 Estimated Actuarial Balance 1 388

2 74 10 254 357

2 29 13 326 384

Principal 1,471 530 12 1,100 30 3,143

— 39 9 222 271

34 765 61 1,547 2,795

Interest 56 11 19 87 6 62 241

2025 Estimated Actuarial Balance 111 326 8 55 13 89 59 413 18 — 191 — 399 882

Principal 1,897 1,897

Interest 584 584

2025 Estimated Actuarial Balance 557 2,543 557 2,543

5,997

3,955

Principal 204 9 15 68 26 278 599

2,755

44,944

Liabilities Beyond the Current Year (C.C. Section 175) Under an agreement, Council may incur a liability payable after the current year as long as it is not a debenture debt and the liability does not exceed the life expectancy of the activity. If the agreement is for longer than five years or contains a right of renewal that could exceed five years, an alternative approval process must be provided. This borrowing method is used by the City of Kelowna to secure the purchase of land from a vendor. Short Term Borrowing (C.C. Section 178) Short Term Borrowing is used to undertake minor capital works programs and must be repaid over a period not to exceed five years. The City of Kelowna's short-term borrowing legal capacity is approximately $8.3 million based on $50 per capita and a 2025 population estimate of 166,000. The City uses this borrowing method for the upgrade or construction of facilities and the purchase and development of parks. There are no projects currently funded through short term borrowing.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Revenue Anticipation Borrowing (C.C. Section 177) Operating loans may be required to meet current expenditures pending receipt of taxation revenue. This most often occurs in the few months prior to the annual July due date for tax payment and is repaid once tax revenue is received. To transact operating loans, a Revenue Anticipation Borrowing Bylaw must be approved by Council and is limited to 75 per cent of all property taxes imposed for all purposes in the preceding year. Loan Guarantees & Commitments (C.C. Section 179) The City of Kelowna has a loan guarantee in place with the YMCA of Southern Interior BC for the Kelowna Family Y Centre. The remainder of the debt under guarantee is $379k as of January 2025. Internal financing The City of Kelowna may borrow funds from its own general reserves with repayment of principal and interest in order to finance capital projects. This may relate to projects that are pending debenture issues and require interim financing or to projects that make use of reserve funds not required in the near future. There is no statutory limit to this borrowing as it is offset by existing reserve balances. The outstanding internal financing for all funds for 2025 ($ thousands) is: Total Borrowing 9,606 9,606

2024 Estimated Balance 1,874 1,874

Total Borrowing 13,037

2024 Estimated Balance 8,977

13,037

8,977

Wastewater capital fund Rutland Sanitary Sewer Local Area Service Wastewater capital fund sub-total

Total Borrowing 2,708 2,708

2024 Estimated Balance 406 406

Airport capital fund Enterprise Rental Car Kiosk Airport capital fund sub-total

Total Borrowing 73 73

2024 Estimated Balance 36 36

25,424

11,293

General capital fund South Perimeter Road General capital fund sub-total

Water capital fund South East Kelowna Irrigation District Local Area Service Water capital fund sub-total

Total internal financing

Interest — —

2025 Estimated Balance — —

Principal 467

Interest 297

2025 Estimated Balance 8,510

467

297

8,510

Interest 117 117

2025 Estimated Balance 271 271

Principal 8 8

Interest — —

2025 Estimated Balance 29 29

2,483

414

8,810

Principal 1,874 1,874

Principal 135 135

Internal financing is also used in the Development Cost Charge program where a deficit in one reserve can be temporarily offset by a surplus in another reserve. Repayment to the reserve includes any interest charge. Borrowing over the next five years will be determined by the 10 Year Capital Plan. Further detailed debt repayment information for 2025 and future years is illustrated on the following pages.

2025 FINANCIAL PLAN

CITY OF KELOWNA

10 Year Debt Repayment Schedule ($ thousands) 2025

2026

2027

2028

2029

2030

2031

2032

2033

General Fund Debenture Principal Interest Total Expenditures Recoveries Net Debenture Debt

3,143 2,746 5,889 (1,037) 4,852

4,228 3,831 8,059 (3,207) 4,852

10,143 9,746 19,889 (6,050) 13,839

14,400 13,962 28,362 (8,393) 19,969

17,588 17,131 34,719 (8,005) 26,714

20,475 20,018 40,494 (8,984) 31,510

21,158 20,701 41,859 (9,091) 32,768

21,753 21,296 43,049 (9,199) 33,850

21,753 21,296 43,049 (9,310) 33,739

21,753 21,296 43,049 (9,423) 33,626

264,964 264,051 529,016 (133,612) 395,404

Water Fund Debenture Principal Interest Total Expenditures Recoveries Net Debenture Debt

357 384 741 (58) 683

618 571 1,188 (35) 1,153

880 833 1,713 (35) 1,678

968 921 1,888 (35) 1,853

964 961 1,925 (35) 1,890

13,077 13,050 26,127 (263) 25,865

Wastewater Fund Debenture Principal Interest Total Expenditures Recoveries Net Debenture Debt

599 241 840 (840) —

295 173 468 (468) —

91 117 209 (209) —

350 350 700 (700) —

700 700 1,400 (1,400) —

1,330 1,330 2,660 (2,660) —

18,900 18,900 37,800 (37,800) —

1,258 333 1,590 (1,590) — 5,535

698 112 810 (810) — 14,522

1,680 1,680 3,360 (3,360) — 20,653

1,680 1,680 3,360 (3,360) — 27,867

1,680 1,680 3,360 (3,360) — 33,188

1,680 1,680 3,360 (3,360) — 34,621

1,680 1,680 3,360 (3,360) — 35,740

1,680 1,680 3,360 (3,360) — 35,629

1,680 1,680 3,360 (3,360) — 35,516

21,840 21,840 43,680 (43,680) — 421,268

Airport Fund Debenture Principal 1,897 Interest 584 Total Expenditures 2,481 Recoveries (AIF Revenue) (2,481) Net Debenture Debt — Total net debt payment 5,535 Note: Totals may not add due to rounding

2034 Remaining

2025 FINANCIAL PLAN

CITY OF KELOWNA

Five-year net debt repayment ($ thousands) Over the next five years, the City of Kelowna's net debt in the general fund is expected to increase, primarily due to the "Building Stronger Kelowna" initiative. This plan encompasses the redevelopment of the Parkinson Recreation Centre, the establishment of new activity centres in Glenmore and Mission, and the optimization of Rutland sports fields. These projects, as part of the city's broader effort to enhance community recreational and wellness facilities, are detailed in City of Kelowna's 10-Year Capital Plan. Debt financing is also required for the expansion of the Kelowna International Airport terminal building. The below graph shows the different funds debt, net of recoveries.

30,000

Total net debt ($ thousands)

25,000 20,000 15,000 10,000 5,000 0 2025

2026 General Fund

2027 Water Fund

2028

Wastewater Fund

2029

Airport Fund

Taxation funded debt ($ millions) Council policy has set internal debt limits based on debt servicing costs at 15 per cent of City own source revenues, and 8 per cent of annual tax levy revenues for tax supported debt. Net debt repayment for 2025 will be 2.4 per cent and is anticipated to reach a maximum of 12.0 per cent over the next six years; decreasing to 11.2 per cent by 2034. Should debt servicing costs rise as anticipated, an update to the existing Council policy will be necessary prior to authorizing the additional debt. The following chart illustrates the annual debt repayment and the percent of taxation for the next 10 years:

15.0%

Debt serviceing cost ($ millions)

11.2% 30 10.0% 20 5.0% 10

Debt as a percentage of tax supported debt

12.0%

0.0% 2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

Year Cost of debt repayment

Debt payment as % of tax demand

2025 FINANCIAL PLAN

CITY OF KELOWNA

Existing debt – all funds The maximum annual debt a municipality can undertake is capped at 25 per cent of its previous year's revenue. BC municipalities report financial data annually to the Ministry of Municipal Affairs using the Local Government Data Entry (LGDE) system. This system calculates the Liability Servicing Limit (LSL), ensuring municipalities adhere to borrowing limits set by the Community Charter. Although the City's financial data has been submitted, the official LSL calculation has yet to be released. Based on 2023 revenues reported to the Ministry, our calculations estimate a current LSL of $101.8 million. Of this, $33.2 million has already been utilized, leaving an available borrowing capacity of $68.6 million. The $33.2 million includes approved debt capacity, with $11.6 million allocated to servicing costs (principal and interest) and the remaining $21.6 million tied to guarantees, commitments, and approved but unissued borrowings. Using current Municipal Finance Authority (MFA) lending rates and a 15-year repayment term, the unused borrowing capacity of $68.6 million translates to an approximate borrowing potential of $747 million for 2025. The chart below illustrates borrowing allocations across various funds, with the solid line indicating the maximum borrowing limit.

Debt ($ millions)

Max Capacity $920M – $1,130M 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

Based on current estimated borrowing rates General Fund

Water Fund

Wastewater Fund

Airport

Note: Totals may not add due to rounding.

2025 FINANCIAL PLAN

CITY OF KELOWNA

OPERATING FULL-TIME EQUIVALENT (FTE) POSITION SUMMARY The City of Kelowna requires that all new positions and changes to existing salaried or wage personnel, both permanent and temporary, be supported by a business case. The business case must include the reason for the request, a cost/benefit analysis, the recommended funding source, other alternatives considered and the organizational impact. Below is a visual representation of all 2025 operating budgeted FTEs for the City of Kelowna by Service area, if all priority one position requests included in this budget volume are approved by City Council. Airport

65.0

Arts & Culture

15.4

Community Development

18.7

Community Safety & Bylaw

49.1

Development Planning

19.2

Development Services

52.0

Enabling Services

259.1

Fire Safety

160.2

Governance & Leadership

30.0

Parking

12.9

Parks

59.8

Partnerships Office

8.0

Police Services & RCMP

107.7

Solid Waste & Landfill

32.1

Sport & Recreation

101.3

Stormwater & Flood Protection

10.3

Transit

1.4

Transportation

82.1

Wastewater Utility

57.7

Water Utility

54.4

2025 FINANCIAL PLAN

CITY OF KELOWNA

The following table provides operating FTE counts for the 2023 budget,2023 actuals, 2024 revised budget and the proposed 2025 preliminary budget. It further details these positions by separating them into the payroll groups of mayor and council, management, union hourly and union salary.

Full-time Equivalent (FTE) Summary Budget 2023

Actual 2023

Revised 2024

Preliminary 2025

21.0 2.0 31.0 54.0

19.9 5.0 31.5 56.4

27.5 2.0 31.5 61.0

29.5 2.0 33.5 65.0

3.0 9.0 1.0 13.0

3.0 8.8 1.0 12.8

3.0 10.4 1.0 14.4

3.0 10.9 1.5 15.4

5.5 2.7 6.0 14.2

5.3 1.8 7.3 14.4

7.0 2.7 8.0 17.7

7.0 3.7 8.0 18.7

4.0 25.3 7.2 36.5

5.9 30.4 6.8 43.1

4.5 31.1 9.0 44.6

5.0 34.6 9.5 49.1

3.0 1.2 17.0 21.2

2.4 5.8 15.0 23.2

3.0 1.9 16.0 20.9

3.0 0.2 16.0 19.2

5.0 0.0 44.5 49.5

4.5 2.2 40.4 47.1

6.5 0.0 45.0 51.5

7.0 0.0 45.0 52.0

84.7 39.9 129.7 254.3

78.7 39.9 112.0 230.6

86.5 41.3 124.7 252.5

90.0 43.3 125.8 259.1

7.0 1.7 141.0 149.7

7.2 1.6 154.3 163.1

7.0 1.7 145.5 154.2

7.0 1.7 151.5 160.2

Airport Management Union Hourly Union Salary Arts & Culture Management Union Hourly Union Salary Community Development Management Union Hourly Union Salary Community Safety & Bylaw Management Union Hourly Union Salary Development Planning Management Union Hourly Union Salary Development Services Management Union Hourly Union Salary Enabling Services Management Union Hourly Union Salary Fire Safety Management Union Hourly Union Salary

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget 2023

Actual 2023

Revised 2024

Preliminary 2025

10.0 9.0 0.5 5.5 25.0

10.2 9.0 0.1 4.9 24.2

13.0 9.0 0.5 6.0 28.5

14.0 9.0 0.5 6.5 30.0

Management Union Hourly Union Salary

1.0 5.5 4.0 10.5

0.9 4.9 2.6 8.4

1.5 6.4 4.0 11.9

2.0 6.4 4.5 12.9

Management Union Hourly Union Salary

5.0 41.7 1.0 47.7

5.5 50.7 3.9 60.1

8.3 46.5 4.0 58.8

8.8 47.0 4.0 59.8

5.0 1.0 — 6.0

4.3 — 0.6 4.9

5.0 — 1.8 6.8

5.0 — 3.0 8.0

23.5 4.3 72.5 100.3

19.3 8.4 58.2 85.9

25.0 3.7 74.5 103.2

25.5 4.2 78.0 107.7

3.9 24.7 4.3 32.9

3.8 24.7 4.2 32.7

3.9 23.4 4.3 31.6

3.9 23.9 4.3 32.1

4.0 68.9 — 72.9

5.8 73.8 7.7 87.3

5.0 86.5 9.0 100.5

5.0 87.3 9.0 101.3

1.6 8.3 1.4 11.3

1.8 7.4 1.6 10.8

1.5 7.4 1.4 10.3

— — — —

1.0 — 1.0 2.0

0.5 — 0.4 0.9

0.5 — 0.9 1.4

continued Governance & Leadership Management Mayor & Council Union Hourly Union Salary Parking

Parks

Partnerships Office Management Union Hourly Union Salary Police Services & RCMP Management Union Hourly Union Salary Solid Waste & Landfill Management Union Hourly Union Salary Sport & Recreation Management Union Hourly Union Salary Stormwater & Flood Protection Management Union Hourly Union Salary Transit Management Union Hourly Union Salary

2025 FINANCIAL PLAN

continued Transportation Management Union Hourly Union Salary Wastewater Utility Management Union Hourly Union Salary Water Utility Management Union Hourly Union Salary Total full-time equivalent positions (all funds) Note: Totals may not add due to rounding

CITY OF KELOWNA

Budget 2023

Actual 2023

Revised 2024

Preliminary 2025

10.7 45.1 8.4 64.2

8.4 57.0 8.7 74.1

11.2 59.0 8.5 78.7

11.6 62.0 8.5 82.1

5.2 42.4 7.4 55.0

5.3 39.4 5.3 50.0

5.2 44.1 7.4 56.7

5.2 45.1 7.4 57.7

4.3 38.1 4.5 46.9 1065.1

4.9 39.1 4.6 48.6 1079.7

4.3 43.9 4.5 52.7 1157.4

4.3 45.1 5.0 54.4 1196.4

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating full-time equivalent (FTE) position changes Each year position counts change with the addition, reduction, or movement of positions. The narrative below explains the changes that have been made, or are being requested, for 2025 by each division/department.

Full-Time Equivalents Summary Airport Addition 2.0 FTE for the Airport - Non-AIF Operations operating request Addition 2.0 FTE for the Airport Strategic Enhancements request Arts & Culture Addition 1.0 FTE for annualization of 2024 operating requests Community Development Reduction 1.0 FTE for annualization of 2023 operating requests Addition 2.0 FTE for annualization of 2024 operating requests Community Safety & Bylaw Addition 2.5 FTE for annualization of 2024 operating requests Addition 0.5 FTE for the Mayor's Task Force operating request Addition 0.5 FTE for the Senior Bylaw Officer operating request Addition 1.0 FTE for the Bylaw Enforcement Officer (x2) operating request Development Planning Reduction 1.7 FTE for annualization of 2024 operating requests Development Services Addition 0.5 FTE for annualization of 2024 operating requests Enabling Services Addition 3.6 FTE for annualization of 2024 operating requests Reduction 0.5 FTE for HR Coordinator term position Addition 0.5 FTE for the Geographic Information System Enhancement operating request Addition 0.5 FTE for the Digital Customer Service Enhancement operating request Addition 1.0 FTE for the Transformation Office operating request Addition 0.5 FTE for the Electrical System Reliability and Maintenance Enhancement operating request Addition 0.5 FTE for the Security and Access Systems Maintenance Enhancement operating request Addition 0.5 FTE for the Facilities Maintenance and Operations Enhancement operating request Fire Safety Addition 3.5 FTE for annualization of 2024 operating requests Addition 2.0 FTE for the Firefighters (4) - Public Safety Levy operating request Addition 0.5 FTE for the Assistant Fire Training Officer operating request Governance & Leadership Addition 1.5 FTE for annualization of 2024 operating requests Parking Addition 0.5 FTE for annualization of 2024 operating requests Addition 0.5 FTE for the Parking Services Planning operating request Parks Addition 0.5 FTE for annualization of 2024 operating requests Addition 0.5 FTE for the Park Maintenance operating request Partnerships Office Addition 1.2 FTE for annualization of 2024 operating requests

2025 FINANCIAL PLAN

CITY OF KELOWNA

Police Services & RCMP Addition 1.5 FTE for annualization of 2024 operating requests Addition 0.5 FTE for the Police Services Disclosure Specialist operating request Addition 1.5 FTE for the Police Services Calls Support operating request Addition 1.0 FTE for the Mayor's Task Force operating request Solid Waste & Landfill Addition 0.5 FTE for the Solid Waste Equipment operating linked to capital request Sport & Recreation Addition 0.2 FTE for annualization of 2023 operating requests Addition 0.3 FTE for annualization of 2024 operating requests Addition 0.3 FTE for the Events Procurement and Delivery operating request Transit Addition 0.5 FTE for annualization of 2024 operating requests Transportation Addition 1.0 FTE for annualization of 2023 operating requests Addition 0.3 FTE for annualization of 2024 operating requests Reduction 1.0 FTE for Traffic Programmer 3 year term Addition 0.6 FTE for the Crack Sealing Pavement operating request Addition 0.5 FTE for the Gravel Operations Enhancements operating request Addition 0.3 FTE for the Road Network operating linked to capital request Addition 1.7 FTE for the Permitting Operations Service Enhancements operating request Wastewater Utility Addition 1.0 FTE for the Wastewater Vacuum Truck and Building operating linked to capital request Water Utility Addition 0.5 FTE for the Water Efficiency Program Enhancements operating request Reduction 0.1 FTE for the Water Distribution Operations Enhancements operating request Addition 1.3 FTE for the Water Operations - Growth operating request

2025 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL SUMMARIES

2025 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL SUMMARIES FINANCIAL PLAN SUMMARY The City of Kelowna’s proposed total 2025 annual budget is $839 million when including all funds. The following table reports the actual results for the year ending 2023, the revised budget as of October 2024, and the proposed preliminary budget for the 2025 Financial Plan year.

$ thousands Revenue Property tax Parcel tax Fees and charges Grant Other revenue Transfer from reserve Special (Stat reserve) funds Development cost charges Accumulated surplus Total revenue Expenditure Salaries and wages Material and other Contract services Debt service Capital expenditure Transfer to reserve Special (Stat reserve) funds Development cost charges Accumulated surplus Total expenditure Total surplus (deficit) Surplus breakdown General fund Utility fund

Actual 2023

Revised 2024

Preliminary 2025

176,631 4,544 191,916 28,131 52,206

191,220 4,441 181,761 44,864 57,760

204,764 4,368 192,914 33,076 84,944

35,926 40,776 190,087 720,217

83,992 61,375 223,379 848,793

102,812 80,988 135,025 838,892

119,222 90,071 103,331 11,657 174,161

130,545 108,336 109,951 11,180 415,457

143,838 106,173 122,754 10,766 371,511

44,136 3,221 167,297 713,096

32,556 0 40,767 848,793

35,714 0 48,135 838,892

7,121

225 6,897

0 0

Note: Totals may not add due to rounding

2025 FINANCIAL PLAN

CITY OF KELOWNA

Revenue by fund The City operates under four funds. The table below presents the dollar value of the revenue budget for each fund, separating the operating and capital information for the proposed Financial Plan year. The graph illustrates the 2025 revenues for each fund, visually depicting the comparison between each one.

$ thousands

Actual 2023

Revised 2024

Preliminary 2025

Operating General 566,169 542,767 355,869 Airport 82,452 206,046 74,546 Wastewater 42,059 64,108 18,132 Water 29,537 35,872 18,834 Subtotal 467,381 Total 720,217 848,793 Note: Totals may not add due to rounding

Capital 224,796 88,318 38,789 19,608 371,511 838,892

General 69% Airport 19% Wastewater 7% Water 5%

Total $ 838.9 M

Revenue by source The City of Kelowna has multiple revenue sources including property taxes that are levied on property owners based on the municipal taxation demand; parcel taxes which are levied through bylaw on properties receiving a specific service; fees & charges for public services like water, parking, and building permits and fines for things like bylaw infractions; grants are funds awarded to the City by various grantors to be used for a specific purpose; other revenues that includes interest revenue, provincial gaming funds, and service revenue from other governments; and transfers from reserve which are predominately made up of previous years’ surplus funds. The graph below presents the same operating and capital revenue information as above at the revenue source detail level.

Revenue by source $400 $350

Millions

$300 $250 $200 $150 $100 $50 $0 Property tax

Parcel tax

Actual 2023

Fees and charges

Revised 2024

Grant

Other revenue

Transfer from reserve

Preliminary 2025

2025 FINANCIAL PLAN

CITY OF KELOWNA

Expenditures by fund BC municipalities are mandated to have a balanced budget by provincial legislation. The table below reports the dollar value of the expenditure budget for each fund, separating the operating and capital information for the proposed 2025 Financial Plan year matching the revenues presented in the previous section. The graph below illustrates the comparison between funds of the expenditure budget for 2025, matching the revenue graph.

$ thousands

Actual 2023

Revised 2024

Preliminary 2025 Operating

Capital

General 69% Airport 19%

General

565,945

542,767

355,869

224,796

Airport

82,452

206,046

74,546

88,318

Wastewater

38,121

64,108

18,132

38,789

Water

26,578

35,872

18,834

19,608

467,381

371,511

Subtotal Total

713,096

848,793

Wastewater 7% Water 5%

838,892

Note: Totals may not add due to rounding

Total

$838.9M

Expenditures by type The City’s expenditures can be grouped in the following categories: salaries & wages, materials & other, contract services, debt servicing, capital expenditures, and transfers to reserve which are primarily made up of expected profits generated by profit centres operating within the City to be used for things like future capital requirements and to fund emergent events. The table below presents the same total operating and capital expenditures information as above for each expenditure type.

Expenditures by type $450 $400 $350

Millions

$300 $250 $200 $150 $100 $50 $0 Salaries and wages

Material and other Actual 2023

Contract services Revised 2024

Debt service

Capital expenditure

Transfer to reserve

Preliminary 2025

2025 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of operating and capital expenditures The table below lists the various operating service areas and capital groups of the City and presents their individual budgets by expenditure and revenue. In cases where the reserve use is in a credit position, service area surpluses are expected and are being recommended to be contributed to reserve for future use. When the reserve use is in a debit position, reserve funds from previous years are being recommended to be used to fund projects in the 2025 budget. The result is the taxation requirement for each operating service area and capital group.

$ thousands Airport Arts & Culture Community Development Community Safety & Bylaw Development Planning Development Services Enabling Services Fire Safety Governance & Leadership Parking Parks Partnerships Office Police Services & RCMP Solid Waste & Landfill Sport & Recreation Stormwater & Flood Protection Transit Transportation Wastewater Utility Water Utility Total operating and capital

Operating Capital expenditure expenditure 33,902 88,318 4,482 1,874 3,688 0 8,340 0 2,673 0 6,785 0 78,173 33,391 30,388 5,798 4,529 0 5,286 2,000 15,735 49,794 1,960 0 69,610 0 17,465 10,850 16,842 25,943 2,405 11,336 37,218 2,858 17,256 80,952 16,612 38,789 14,690 19,608 388,037 371,511

Revenue 67,515 1,742 325 211 830 9,962 61,337 5,249 65 9,403 8,677 244 6,953 28,169 30,062 3,032 26,784 3,181 32,815 24,564 321,121

Reserve 54,705 1,616 (300) 0 0 2,500 9,690 2,481 0 (467) 40,926 298 3,893 345 236 8,739 3,860 72,819 22,586 9,734 233,663

Taxation Taxation % 0 0% 2,998 1% 3,662 2% 8,128 4% 1,843 1% (5,678) (3)% 40,537 20 % 28,456 14 % 4,464 2% (1,650) (1)% 15,925 8% 1,419 1% 58,764 29 % (200) 0% 12,486 6% 1,970 1% 9,432 5% 22,208 11 % 0 0% 0 0% 204,764 100 %

Note: Totals may not add due to rounding

2025 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of taxation demand The result of the taxation requirement detailed above is an increase to the net taxation demand of $13.54 million, a 7.08 per cent increase over 2024. This is reduced by the expected new construction tax revenue estimated to be $5.20 million in 2025 to bring the total net property owner impact to 4.36 per cent. This increase includes $1.91 million, a 1 per cent increase over 2024, for the 2023 Council approved Public Safety Levy. Revised 2024

$ thousands

Preliminary 2025

Change

% change

Taxation demand

191,220

204,764

13,544

7.08%

New construction tax revenue

(6,260)

(5,200)

1,060

(16.93%)

Net property owner impact

4.72%

4.36%

Municipal impact

3.72%

3.36%

Public Safety Levy impact

1.00%

(0.36%)

Note: Totals may not add due to rounding

Tax-supported operations by service area The 2025 Financial Plan uses service-based reporting. There are two types of service areas in the City of Kelowna, community services and enabling services. A community service is a service that is provided directly to the community, and an enabling service is a support service provided internally that enables the community services to be provided. As the community services could not be provided without internal support, the enabling services net operating budget has been allocated to each community service. Not all service areas require taxation funding. The graph and table below shows the community service areas that do require taxation funding, and the amount of taxation used in 2023, budgeted to use in 2024, and is recommended to be budgeted for 2025.

Net tax-supported operations by service area $70,000 $60,000 $50,000

Thousands

$40,000 $30,000 $20,000 $10,000 $0 $(10,000)

& CS

Actual 2023

ing rk a P

Revised 2024

s rk Pa

PO PS

M RC

P SW

t. sit or an sp Tr n a Tr

Preliminary 2025

2025 FINANCIAL PLAN

CITY OF KELOWNA

$ thousands Arts & Culture Community Development Community Safety & Bylaw Development Planning Development Services Fire Safety Governance & Leadership Parking Parks Partnerships Office Police Services & RCMP Solid Waste & Landfill Sport & Recreation Stormwater & Flood Protection Transit Transportation

(A & C) (CD) (CS & B) (DP) (DS) (FS) (G & L) (Parking) (Parks) (PO) (PS & RCMP) (SW & L) (S & R) (S & FP) (Transit) (Transport.)

Total service area net expenditures

Actual 2023 3,201 3,559 6,262 2,037 (12,139) 28,531 4,019 (150) 26,376 868 57,341 4,327 12,475 4,735 10,207 24,756

Revised 2024 3,341 4,171 6,913 2,067 (5,315) 30,354 5,317 (1,150) 24,616 1,301 59,930 (200) 14,365 5,427 13,173 26,912

Preliminary 2025 3,643 4,035 8,972 2,115 (4,993) 32,120 4,922 (1,650) 22,557 1,617 65,810 (200) 16,815 3,360 13,490 32,152

176,407

191,220

204,764

Note: Totals may not add due to rounding

Tax-supported Enabling Services excluding general revenue All enabling service areas require taxation funding. The graph and table below illustrate the taxation used in 2023, budgeted to use in 2024, and is recommended to be budgeted for 2025 for the enabling service areas. These amounts are included in the community services information above.

Net tax-supported Enabling Services $16,000 $14,000

Thousands

$12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Ad

in m

il Bu

g di n

s m m o C

Actual 2023

e Fle

Revised 2024

D IC

Preliminary 2025

*2023 surplus allocation has been removed

2025 FINANCIAL PLAN

CITY OF KELOWNA

$ thousands Administration Communications Corporate Strategy & Performance Debt and Other Facilities Financial Services Fleet Services Human Resources Information Technology Internal Construction Delivery Legislated Services Real Estate Risk Management Senior Leadership

Actual 2023 1,432 1,592 630 17,832 11,932 973 354 3,250 8,784 1,124 — 856 4,323 2,478

Revised 2024 2,275 1,686 714 8,203 11,597 7,878 50 4,706 10,315 1,621 — 2,278 4,279 2,300

Preliminary 2025 2,527 1,766 747 5,784 13,644 8,465 50 5,100 10,213 1,684 — 2,140 4,692 2,619

Total Enabling Services net expenditures

55,560

57,900

59,430

Note: Totals may not add due to rounding

General revenue General revenues are revenues that are not specifically attributable to or generated by any particular City of Kelowna service area. The graph and the table following summarizes the City’s general revenues by type for amounts received in 2023, budgeted to use in 2024, and is recommended to be budgeted for 2025.

General revenue $12,000 $10,000

Thousands

$8,000 $6,000 $4,000 $2,000 $0 $(2,000) Licences

Franchise fee

Actual 2023

Interest & penalties

Miscellaneous revenues

Revised 2024

Federal contributions

Provincial contributions (Inc. traffic fine revenue)

Taxes - private utilities (1% in Lieu)

Preliminary 2025

2025 FINANCIAL PLAN

CITY OF KELOWNA

The table below details the dollar value of City’s general revenues (by type) and includes property taxation revenue.

$ thousands Licences Franchise fee Interest & penalties Miscellaneous revenues Federal contributions Provincial contributions (Inc. traffic fine revenue) Taxes - private utilities (1% in Lieu) Total general revenues

Actual 2023 1 2,157 8,862 (1,426) 150 2,228 2,456 14,428

Revised 2024 3 2,024 10,787 127 150 2,153 2,680 17,925

Preliminary 2025 3 2,265 10,837 804 147 2,174 2,663 18,893

Property taxation

176,631

191,220

204,764

Total general revenues & taxation

191,059

209,145

223,657

Note: Totals may not add due to rounding

Ongoing impacts - general fund Below is a projection of the net property owner impacts over the next five years using the best information available at the time of preparation of the Preliminary Budget volume. This projection will be updated for the Final Budget volume in April of 2025 and additional details on projections will be provided. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. For the years after 2025, budgets have been adjusted for current one-time projects, changes in operating budgets from previously approved requests, new capital projects included in the Council endorsed 10 Year Capital Plan, growth and/or inflationary rates, and other key assumptions. Although this forward-looking information is based on what is believed to be reasonable assumptions, there can be no assurance that this information will prove to be accurate as actual results and future events could differ materially from the anticipated information contained in this forecast. $ thousands Taxation demand New construction tax revenue Net property owner impact Municipal impact Public Safety Levy impact

2025 204,764 (5,200) 4.36 % 3.36% 1.00%

2026 218,345 (4,006) 4.68 % 3.68% 1.00%

2027 233,162 (3,960) 4.97 % 3.97% 1.00%

2028 248,839 (4,177) 4.93 % 3.93% 1.00%

2029 265,557 (4,408) 4.95 % 3.95% 1.00%

Note: Totals may not add due to rounding

2025 FINANCIAL PLAN

CITY OF KELOWNA

SERVICE AREA BUDGET

2025 FINANCIAL PLAN

CITY OF KELOWNA

SERVICE AREA BUDGET SERVICE AREA SUMMARY The City’s service area budgets are influenced and guided by strategic direction provided by City Council, the community and corporate leadership. This direction is communicated through plans and priorities such as capital plans, master plans, Council and Corporate priorities, the annual action plan, and service area, department and divisional plans. In 2024, the City adopted the service-based budgeting approach, organizing the budget by service areas rather than by departments or divisions. This format helps readers clearly understand the services provided, their associated costs, and the trade-offs involved when prioritizing one service over another. This method enhances transparency, accountability, and fiscal flexibility, offering greater insight into how, where, and when the City allocates its limited resources to address various needs. It also improves reporting and communication by showing how tax dollars and other revenue sources are spent, fostering more meaningful discussions about service levels. For 2025, the Financial Plan integrates the capital and operating programs within each service area, providing additional insights for both Council and the community. This comprehensive view highlights the interplay between operational expenses and capital projects, offering a clearer understanding of how they influence each other. The service areas highlighted in this budget volume were chosen to reflect the broad scope of services delivered directly to the community. These range from essential functions like public safety, utilities, and infrastructure maintenance to community-focused offerings such as parks, recreation, and transportation. Each service directly impacts and benefits residents. Departments that support multiple community services—such as Financial Services, Human Resources, Information Technology, and Facilities Capital—are categorized as Enabling Services. The overall budget for Enabling Services is proportionally allocated across all direct community service areas. This approach ensures a transparent presentation of the comprehensive costs associated with each service. To enhance transparency, detailed financial information for Enabling Services is provided in a dedicated section of this budget volume, offering stakeholders a clear understanding of their role in supporting the City's service delivery.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Reading the service area sections Each service area section begins with a cover page outlining the following: the service's goal and community benefits, the primary customers and partners, the services delivered, key objectives, and the strategic plans that guide the service. This introduction is followed by performance measures, presented through a mix of narratives and graphs, to illustrate how the service area is performing. These measures include the service's goals or targets and, where available, comparative data from other municipalities for context. Each section details the activities within the service area and their alignment with Council and Corporate priorities. Key accomplishments and ongoing improvement initiatives are highlighted, showcasing progress and efforts to enhance service delivery. Finally, the section concludes with a financial summary, outlining projected expenditures and the recommended funding strategy to support the service. Following the introduction section are the individual budget requests being presented to Council for approval. These are presented in the order of priority one operating, priority one capital and then priority two operating if applicable. The recommended priority of each budget request is shown on the top right corner of the request. Priority one items are budget requests that are being requested to maintain current service levels or to enhance them. These items have been included as part of the recommended budget. Priority two items include budget requests intended to enhance service levels but are not being recommended in an effort to maintain an acceptable general taxation demand or utility user rate.

2025 Budget requests The 2025 Financial Plan includes 61 operating and 115 capital priority one requests for a total of $386.1 million of expenditure budget. Eight priority two requests are included for Council consideration. The funding strategy being recommended includes a combination of reserves, development cost charges, borrowing, property taxes, utility fees, grants, and other smaller revenue sources. Each budget request is categorized into two categories; maintain and enhance. Maintain requests are the budgets requested to maintain current service levels. Additional budget may be required to address factors such as inflation, growth of the community, infrastructure investments for equipment replacement or the maintenance of existing infrastructure. Enhance requests are the budgets requested to increase or improve the service level such as the addition of a new program offering, or new infrastructure. The assigned category can be found at the top right-hand side of each budget request. In the 2025 Financial Plan, operating and capital requests total $386.1 million. Requests to maintain current service levels makes up 20 per cent of these 2025 requests at $77.4 million. Enhanced service requests makes up $308.7 million which is 80 per cent of the total request expenditures.

Request type

Enhance 80% Maintain 20%

Total $386.1M If a capital project has an operating impact, such as additional maintenance, the operating budget is presented as part of the capital request. If an operating request has a capital impact, such as a vehicle required for a new position, the capital cost is presented as part of the operating request.

2025 FINANCIAL PLAN

CITY OF KELOWNA

The following table provides a summary of the operating and capital priority one and priority two requests highlighting the amount coming from taxation versus other funding sources. Other funding sources could include reserves, user fees, grants, or community/developer contributions. ($ thousands) Funded from Airport Arts & Culture Community Development Community Safety & Bylaw Development Planning Development Services Enabling Services Fire Safety Governance & Leadership Parking Parks Partnerships Office Police Services & RCMP Solid Waste & Landfill Sport & Recreation Stormwater & Flood Protection Transit Transportation Wastewater Utility Water Utility

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Priority 1 Other Taxation Sources — $ 91,226 $ — $ 1,874 $ — $ — $ 506 $ — $ — $ — $ — $ — $ 7,845 $ 27,600 $ 225 $ 5,798 $ 65 $ — $ — $ 2,106 $ 2,662 $ 48,344 $ — $ 75 $ 264 $ — $ — $ 11,041 $ 3 $ 25,970 $ — $ 11,711 $ — $ 8,239 $ 7,258 $ 74,162 $ — $ 39,232 $ — $ 19,922 $

Total 91,226 $ 1,874 $ — $ 506 $ — $ — $ 35,445 $ 6,023 $ 65 $ 2,106 $ 51,006 $ 75 $ 264 $ 11,041 $ 25,973 $ 11,711 $ 8,239 $ 81,420 $ 39,232 $ 19,922 $

18,827 $

386,126 $

367,299 $

Priority 2 Other Taxation Sources — $ — $ 100 $ — $ — $ — $ 201 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 200 $ — $ — $ — $ 64 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 570 $ — $ — $ — $ — $ — $ 1,135 $

— $

Total — 100 — 201 — — — — — — 200 — 64 — — — — 570 — — 1,135

Note: Totals may not add due to rounding

The following graphic provides a visual summary of the funding strategy being proposed for the priority one requests including taxation, reserves, grant funding, revenues and utility funds (user fees).

Funding Strategy - Priority 1 requests Reserve $211.4M DCC Reserve $80.2M Borrow $31.3M Property taxation $18.8M Utility $17.3M Grant $16.1M Other Revenue $11.0M

Total 386.1M

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Airport Airport Improvement Fees Airport - Non-AIF Operations Airport Strategic Enhancements Airport Operating Requests Priority 1 Total

2025 — 2,665 244 2,908

2026 — 2,473 475 2,948

2027 — 2,473 475 2,948

2028 — 2,473 475 2,948

2029 — 2,473 475 2,948

Community Safety & Bylaw Senior Bylaw Officer Kelowna Detachment & Police Services Resource Review-Public Safety Levy Mayor's Task Force - Redeployment Outdoor Overnight Sheltering Bylaw Enforcement Officer (x2) Community Safety & Bylaw Operating Requests Priority 1 Total

2025 169 —

2026 163 —

2027 163 —

2028 163 —

2029 163 —

— 100 236 506

— 200 277 640

— 300 277 740

Police Services & RCMP RCMP Regular Members (7) - Public Safety Levy Police Service Calls Support Intelligence Analyst (Criminal) RCMP Police Services Disclosure Specialist Police Services & RCMP Operating Requests Priority 1 Total

2025 — 147 64 52 264

2026 — 292 236 104 632

2027 — 292 236 104 632

2028 — 292 236 104 632

2029 — 292 236 104 632

Fire Safety Firefighters (4) - Public Safety Levy Assistant Fire Training Officer KFD Live Fire Training Fire Safety Operating Requests Priority 1 Total

2025 — 99 126 225

2026 — 176 126 302

2027 — 176 — 176

2028 — 176 — 176

2029 — 176 — 176

Wastewater Utility Wastewater Collection Operations - Growth Wastewater Treatment Planning Operating and Maintenance Impacts from Capital Requests Wastewater Utility Operating Requests Priority 1 Total

2025 26 325 92

2026 26 — 176

2027 26 — 176

2028 26 — 176

2029 26 — 176

443

202

Stormwater & Flood Protection Stormwater Management - Redeployment Stormwater Utility Business Case - Phase 3 Stormwater Basin Plan - Brandts-Glenmore Basin Stormwater & Flood Protection Operating Requests Priority 1 Total

2025 — 125 250 375

2026 — — — —

2027 — — — —

2028 — — — —

2029 — — — —

2025 FINANCIAL PLAN

CITY OF KELOWNA

Water Utility Water Operations - Growth Water Efficiency Program Enhancements Water Distribution Operations Enhancements Water Utility Operating Requests Priority 1 Total

2025 153 61 100 314

2026 272 119 100 491

2027 272 119 100 491

2028 272 119 100 491

2029 272 119 100 491

Solid Waste & Landfill Landfill Operations Maintenance Operating and Maintenance Impacts from Capital Requests Solid Waste & Landfill Operating Requests Priority 1 Total

2025 140 51

2026 — 101

2027 — 101

2028 — 101

2029 — 101

191

101

Transportation Gravel Operations Enhancements Permitting Operations Service Enhancements Crack Sealing Pavement Safe Mobility Action Plan Implementation Operating and Maintenance Impacts from Capital Requests Transportation Operating Requests Priority 1 Total

2025 46 172 125 75 50

2026 92 172 125 — 50

2027 92 172 125 — 50

2028 92 172 125 — 50

2029 92 172 125 — 50

468

389

Transit Transit Operations Hollywood Transit Centre Planning Transit Fare Review Transit Planning Software - Redeployment Transit Operating Requests Priority 1 Total

2025 5,226 125 30 — 5,381

2026 5,226 — — — 5,226

2027 5,226 — — — 5,226

2028 5,226 — — — 5,226

2029 5,226 — — — 5,226

Parks Parks Planning Program - Redeployment Median Improvement Program Park Maintenance Wildfire Fuel Mitigation Parks Operating Requests Priority 1 Total

2025 80 600 132 400 1,212

2026 80 600 106 500 1,286

2027 80 600 106 600 1,386

2028 80 600 106 600 1,386

2029 80 600 106 600 1,386

Sport & Recreation Events Procurement and Delivery Operating and Maintenance Impacts from Capital Requests Sport & Recreation Operating Requests Priority 1 Total

2025 27 3

2026 76 13

2027 76 13

2028 76 13

2029 76 13

Parking Parking Services Planning Parking Study for Recreation Parks and Facilities Phase 2 Parking Operating Requests Priority 1 Total

2025 56 50

2026 111 —

2027 111 —

2028 111 —

2029 111 —

106

111

2025 FINANCIAL PLAN

CITY OF KELOWNA

Partnership Office Council Advocacy Priorities Strategic Development - Redeployment Partnership Development Strategy, Framework and Collateral Economic Development Strategy - Redeployment Partnership Office Operating Requests Priority 1 Total

2025 —

2026 —

2027 —

2028 —

2029 —

—

— 75

— —

Governance & Leadership Privacy Impact Assessments Governance & Leadership Operating Requests Priority 1 Total

2025 65 65

2026 65 65

2027 65 65

2028 65 65

2029 65 65

Enabling Services Electrical System Reliability and Maintenance Enhancement Security and Access Systems Maintenance Enhancement Facilities Maintenance and Operations Enhancement Facilities Planning Program - Redeployment Facilities Total Transformation Office - Redeployment Financial Services Total Staff Development and Retention Program Human Resources Total Microsoft Fabric Implementation Geographic Information System Enhancement Digital Customer Service Enhancement Information Technology Total Strategic Land Development Projects Real Estate Total Digital Transformation Legal Expense Community Events Calendar Accelerated Capital Program Support Redeployment Senior Leadership Total Enabling Services Operating Requests Priority 1 Total

2025 140

2026 106

2027 106

2028 106

2029 106

140

106

126

109 453 — — 185 185 100 62 54 216 100 100 1,000 50 50 —

109 446 — — 185 185 — 124 107 231 — — — 100 50 —

109 446 — — 185 185 — 124 107 231 — — — 150 50 —

1,100 2,054

150 1,011

200 1,061

Operating Requests Priority 1 Total

14,615

13,493

13,617

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Requests ($ thousands) Priority 1 Airport Programs Airport - Airside Pavement Rehabilitation & Airport - Airside Equipment Airport - Lifecycle Replacement & Upgrades Airport - Loading Bridges Airport - Carbon Neutral Initiatives Airport - Land Development Projects Airport - Airport Terminal Building Expansion Phase 1 Airport - Combined Operations Building Airport - Airside Lighting and Supporting Infrastructure Airport - Mill Creek Flood Protection Airport - Hotel and Parkade Enabling Works Airport - Child Care Facility Expansion Airport Capital Requests Priority 1 Total Fire Safety Programs Fire Communications Systems Fire Vehicles & Equipment Projects NG911 Implementation Glenmore Protective Services Building Fire Safety Capital Requests Priority 1 Total Wastewater Utility Programs Wastewater Network & Facilities Wastewater Treatment Projects Frost Rd Upgrades (with utilities) Hydro-Vac Disposal Facility KLO Bridge Replacement (with utilities) Sewer Connection Areas Wastewater System Upgrades WWTF Expansion * Wastewater Vacuum Truck and Building Wastewater Utility Capital Requests Priority 1 Stormwater & Flood Protection Programs Stormwater Network & Facilities Stormwater Quality

2025

2026

2027

2028

2029

10,251 3,973 5,641 707 1,229 113

2,874 519 969 2,368 4,501 —

15,590 3,427 3,901 247 2,959 —

15,862 4,454 771 2,828 100 —

16,952 1,648 1,610 2,938 100 —

Total Project 128,467

39,642

26,624

5,920

4,477

—

24,300 8,950

11,250 8,710

3,800 —

— —

5,103 4,600 2,550 173,970

871 3,381 2,550 88,318

1,650 — — 43,305

2,367 — — 34,411

— — — 28,492

— — — 23,248

2025

2026

2027

2028

2029

102 1,091

850 854

552 204

11 3,717

11 2,806

1,905 2,700 5,798

1,905 9,450 13,059

— 12,150 12,906

— 14,700 18,428

— — 2,817

2025

2026

2027

2028

2029

4,637 4,500

5,488 4,250

9,950 3,000

8,707 2,000

8,086 2,000

100 250 800 6,958 19,794 500 1,250 38,789

— 1,000 200 2,981 11,764 500 — 26,183

— 1,250 — 380 1,600 1,000 — 17,180

— — — — — 10,000 — 20,707

— — — — 300 10,000 — 20,386

2025

2026

2027

2028

2029

3,177 219

4,690 360

4,300 500

5,950 400

3,700 500

Total Project 3,810 39,000 42,810

Total Project 100 2,500 1,000 25,196 41,775 40,000 1,250 111,821

2025 FINANCIAL PLAN

Projects Frost Rd Upgrades (with utilities) Mill Creek Flood Protection Stormwater System Upgrades Stormwater & Flood Protection Capital Requests Priority 1 Total Water Utility Programs Non-Potable Water Network & Facilities Potable Water Network & Facilities Water Treatment Projects Frost Rd Upgrades (with utilities) GEID Integration KLO Bridge Replacement (with utilities) Non-Potable System Upgrades Potable Water System Upgrades Water Utility Capital Requests Priority 1 Total Solid Waste & Landfill Programs * Solid Waste Equipment Solid Waste Infrastructure & Facilities Projects Composting System Expansion Surface Water Bypass Solid Waste & Landfill Capital Requests Priority 1 Total Transportation Programs Active Transportation Bridges * Road Network Projects Active Transportation - Bertram St Active Transportation - Rutland Neighbourhood Intersections - Springfield & Dilworth Roads - Burtch Rd Upgrades Roads - Commonwealth Rd (Hwy 97 - Jim Bailey) Upgrades Roads - Frost Rd Upgrades (with utilities) Roads - Glenmore Rd Upgrades Roads - Highway 33 to Clement Extension Roads - Hollywood Rd N Upgrades Roads - KLO Bridge Replacement (with utilities) Roads - Lakeshore Rd Upgrades

CITY OF KELOWNA

Total Project 750 51,395 12,380 64,525

750 7,080 110 11,336

— 14,800 990 20,840

— 10,950 300 16,050

— — 2,710 9,060

— — 5,470 9,670

2025

2026

2027

2028

2029

1,406 7,570 1,285

2,640 6,100 400

2,740 6,350 —

3,240 8,250 —

3,240 7,900 —

200 3,850 2,000 400 2,897 19,608

— 600 — 2,000 5,450 17,190

— — — 3,300 10,500 22,890

— — — — 7,450 18,940

— — — — 10,000 21,140

2025

2026

2027

2028

2029

1,150 4,250

1,050 4,200

450 4,150

450 1,885

450 1,860

700 4,750 10,850

3,000 — 8,250

3,700 350 8,650

500 4,750 7,585

1,300 — 3,610

2025

2026

2027

2028

2029

2,408 450 8,665

3,005 540 11,696

2,785 1,140 12,788

2,982 1,270 14,932

3,084 1,270 16,517

Total Project 8,489 2,000 10,945 58,079 13,229

1,620 1,000 2,472 12,355 313

6,869 1,000 2,150 29,939 1,474

— — 6,323 5,811 11,443

— — — 210 —

— — — — —

5,480 42,883 135,300 34,612 18,364 29,272

5,043 10,425 2,800 5,667 16,564 4,690

— 2,470 3,000 13,600 1,800 8,920

— 5,619 4,500 3,750 — 8,834

— 3,700 75,000 575 — —

— — 45,000 3,515 — —

Total Project 200 5,150 2,000 5,700 52,306 65,356

Total Project 9,200 9,850 19,050

2025 FINANCIAL PLAN

Roads - Parkinson Recreation Centre Road Improvements Roads - Stewart Rd Upgrades Roads - Sutherland Rd Upgrades Roads - Neighbourhood Street Urbanization Transportation Capital Requests Priority 1 Total Transit Programs Transit Projects Transit - Mission Recreation Transit Exchange & Mobility Hub Transit - Okanagan College Exchange Capacity Expansion Transit - Rutland Park & Ride, Mobility Hub, Operations Facility Transit Capital Requests Priority 1 Total Parks Programs Park Development Park Infrastructure & Facilities Parkland Acquisition Projects Ben Lee Park Burne Park Chichester Wetland Park City Park Cook Beach Park- Aqua Foreshore DeHart Park Glenmore Recreation Park Island Stage Rejuvenation Kelowna's Newest Waterfront Park Manhattan Point Park Mill Creek Linear Park Parkinson Recreation Park Queensway Improvements Rotary Beach Park Rutland Recreation Park Parks Capital Requests Priority 1 Total Sport & Recreation Programs * Recreational Park Infrastructure & Facilities Projects Community Activity Centres - Glenmore Activity Centre

CITY OF KELOWNA

3,290

400

2,537

—

9,842 51,534 5,150 428,469

800 130 5,150 80,952

— 5,150 — 94,150

— — — 62,993

280 4,038 — 102,986

4,632 4,800 — 78,818

2025

2026

2027

2028

2029

616

944

1,503

1,767

3,014

Total Project 3,750

750

1,000

2,000

—

2,300

500

800

1,000

—

2,992

992

1,000

—

9,042

2,858

3,744

5,503

1,767

3,014

2025

2026

2027

2028

2029

447 3,211 20,823

172 2,423 21,618

3,261 1,181 20,823

172 2,828 15,180

3,261 1,159 14,385

250 1,000 195 740 150 1,818 9,500 1,000 608 235 300 4,116 800 708 3,893 49,794

— 1,300 195 1,365 937 402 3,000 600 1,156 235 1,119 14,409 50 1,122 3,406 53,509

— 591 3,496 6,307 2,288 134 7,000 — 196 2,827 1,000 18,523 50 600 811 69,088

— — — 8,280 300 — 7,000 — — 1,413 1,119 4,115 — — — 40,407

— — — 3,750 — — 3,500 — — — 1,000 — — — — 27,055

2025

2026

2027

2028

2029

205

—

2,415

8,454

10,870

2,415

—

Total Project 1,086 3,311 3,886 30,765 3,575 11,480 41,270 1,650 2,060 4,915 8,727 41,162 900 2,470 8,360 165,617

Total Project 24,229

2025 FINANCIAL PLAN

Community Activity Centres - Mission Activity Centre Community Activity Centres - Activity Centre at Rutland Lions Park Parkinson Recreation Centre Redevelopment Mission Recreation Park Sport & Recreation Capital Requests Priority 1

CITY OF KELOWNA

27,784

2,750

9,626

12,378

2,750

—

22,800

1,140

7,980

10,260

2,280

189,100 5,543 269,456

18,660 773 25,943

65,230 3,140 87,590

84,000 1,570 116,798

18,660 — 34,085

— — 2,280

2025

2026

2027

2028

2029

569 1,305 1,874

230 705 935

230 887 1,117

230 110 340

230 — 230

2025

2026

2027

2028

2029

1,500

600

2,100

600

2,100

500 2,000

1,500 2,100

6,500 8,600

6,500 7,100

— 2,100

2025

2026

2027

2028

2029

612 350 871 53 1,886 3,080 1,770 250 5,100 75 3,910 3,985 1,800 100 1,900

550 200 500 150 1,400 2,330 2,030 — 4,360 1,279 4,100 5,379 1,800 100 1,900

550 200 500 150 1,400 1,775 1,400 — 3,175 888 4,290 5,178 1,800 — 1,800

550 200 250 150 1,150 975 1,400 — 2,375 859 4,500 5,359 1,800 — 1,800

550 200 250 150 1,150 725 1,400 — 2,125 799 4,720 5,519 1,800 — 1,800

Total Project 16,700 4,650 1,025

1,761 450 125

1,103 2,000 450

7,837 2,000 450

4,310 200 —

— — —

1,500 4,350 2,050 5,270 1,500 7,245

500 1,350 100 2,674 400 7,000

500 1,625 850 1,960 400 200

500 1,225 1,000 335 200 —

— 150 100 — — —

— — — — — —

Arts & Culture Programs Community & Culture Facilities Placemaking Arts & Culture Capital Requests Priority 1 Total Parking Programs Parking Infrastructure & Facilities Projects South Pandosy Parkade Parking Capital Requests Priority 1 Total Enabling Services Programs Front Office Equipment IT Communications Systems Major Systems Projects Server & Data Storage Information Technology Programs Total Building Systems & Infrastructure Facilities Portfolio Planning Placemaking Facilities Programs Total Vehicles & Equipment - Growth Vehicles & Equipment - Renewal Fleet Programs Total General Land Acquisition Marine Facilities Real Estate Programs Total Projects Buildings Systems Renewal - City Hall Renewal Buildings Systems Renewal - Memorial Arena Buildings Systems Renewal - Sarson's Activity Centre Electric Vehicle Infrastructure Installation Enterprise Fire Hall #1 Improvements Gymnastics Centre (Rutland) Improvements H2O Centre Improvements LED Lighting Upgrades MNP Place Roof Replacement

Total Project 15,000 15,000

2025 FINANCIAL PLAN

Prospera Place Improvements Rutland Arena Improvements & Heatsharing w/ Kelowna Family Y Facilities Projects Total Cook Beach Park- Groyne & Pier Real Estate Projects Total Enabling Services Capital Requests Priority 1

CITY OF KELOWNA

8,060 7,345

3,960 2,025

3,600 775

400 4,500

— —

59,695 3,600 3,600 63,295

20,345 175 175 33,391

13,463 937 937 27,439

18,447 2,288 2,288 32,288

4,760 300 300 15,744

— — — 10,594

Capital Requests Priority 1 Total 371,511 398,294 * denotes capital request has operating & maintenance impacts linked to this request

408,474

305,641

204,962

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 2 Community Safety & Bylaw Bylaw Services Enforcement Coordinator Bylaw Enforcement Officer (x2) Community Safety & Bylaw Operating Requests Priority 2 Total

2025 50 151 201

2026 100 263 362

2027 100 263 362

2028 100 263 362

2029 100 263 362

Police Services & RCMP RCMP Regular Members Police Services & RCMP Operating Requests Priority 2 Total

2025 64 64

2026 236 236

2027 236 236

2028 236 236

2029 236 236

Transportation Waste Management Service Enhancement Redeployment Snow Clearing and Ice Control Service Enhancements Solar Light Replacement - Neighbourhood and Dog Parks Transportation Operating Requests Priority 2 Total

2025 145

2026 145

2027 145

2028 145

2029 145

375 50

538 50

620 50

570

732

815

Parks Canopy Coverage Expansion Planning Parks Operating Requests Priority 2 Total

2025 200 200

2026 300 300

2027 400 400

2028 400 400

2029 400 400

Arts & Culture Cultural District Vision and Business Planning Project Arts & Culture Operating Requests Priority 2 Total

2025 100 100

2026 — —

2027 — —

2028 — —

2029 — —

Operating Requests Priority 2 Total

1,135

1,631

1,813

2025 FINANCIAL PLAN

CITY OF KELOWNA

AIRPORT LED BY: AIRPORT CHIEF EXECUTIVE OFFICER

Our goal & community benefit: Our goal is to serve communities within the Okanagan Valley by being the economic engine for the region and providing high-quality facilities in a safe and costeffective manner while also ensuring the capability and flexibility to meet future changes in air transportation, technology, and operations.

Our customers: Our customers are the passengers who choose to fly through the Airport and the campus businesses that make this travel possible. In 2023, over 2.0 million passengers travelled through the Airport and passenger numbers are forecasted to continue to grow to an all-time high of over 2.1 million passengers in 2024.

Our partners: We partner with airlines, ride-sharing and car rental agencies, food and beverage providers, and other airport campus tenants to offer the best travel experience for our passengers. There are nearly 50 companies operating at the Airport, generating over 1,400 full-time jobs. Our partners also include our federal regulatory agencies Transport Canada, Nav Canada, the Canadian Air Transport Security Authority, and the Canada Border Services Agency, as well as organizations which provide contracted services critical to the operation, maintenance, and development of the Airport.

What we deliver: We are forecasting that we will serve over 2.1 million passengers in 2024 and currently offer more than 60 daily non-stop commercial flights with eight airlines (Air Canada, Air Canada Express/Jazz Aviation, Air North - Yukon’s Airline, Alaska Airlines, Central Mountain Air, Flair Airlines, Pacific Coastal Airlines, and WestJet). As the 10th busiest and the largest municipally owned airport in Canada, YLW’s total economic impact in 2014 was 4,545 jobs and $789 million in total economic output to the province of British Columbia.

Our key objectives: Our key objectives include: • • • •

Improve and innovate the way we plan and operate our business Lead and foster economic prosperity within the region Act in a financially sustainable & resilient manner Lead in the areas of safety, security, social responsibility, governance, and the environment

Our guiding plans: • •

Airport Master Plan 2045 Airport Strategic Plan

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Optimization and transformation Improve and innovate the way we plan and operate our business Number of optimization and transformation initiatives. Through implementation of digital and innovation transformation projects and initiatives, the Airport will increase efficiency and effectiveness of core business processes and procedures and optimization of the facility and its operations.

Performance measure 2 Financially responsible Act in a financially sustainable & resilient manner Aeronautical revenues per landed air carrier seat. Aeronautical fees and charges are determined strategically, consistent with the International Civil Aviation Organization guidelines, in order to balance revenue generation while positioning YLW as a competitive, low-cost airport to continue to attract air service routes and carriers which drives these revenues.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Driver of regional economic development Lead and foster economic prosperity within the region Annual number of passengers. As the 10th busiest airport in Canada and the 2nd largest airport in British Columbia, the Airport welcomed over 2 million passengers in 2023 and expects to see continued growth in 2024 and 2025, positioning the Airport as a regional economic gateway and driver of economic growth within the region.

Performance measure 4 Accountable leadership Lead in the areas of safety, security, social responsibility, governance, and the environment Airport Carbon Accreditation Level. The Airport is actively developing a comprehensive plan to significantly reduce its energy consumption and attain a Level 3 Carbon Accreditation by 2026, as part of the Airport’s commitment to achieve carbon neutrality by 2030.

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority:

Priorities

Activities

Crime & Safety

•

Transportation

•

Climate & Environment

•

Economy

•

Our People

•

# or % of residents who feel safe in Kelowna increases: ◦ Upgrading the airfield lighting and supporting infrastructure to high intensity to further improve safety ◦ Rehabilitation and enabling works for the expansion of Airside aprons and taxiways to further improve safety ◦ Use of AI and machine learning to improve efficiency and safety for aircraft operations ◦ Acquisition of a third Aircraft Rescue and Fire Fighting Response Truck to meet Federal regulations for a Category 7 level emergency response ◦ Continued partnership with Not in My City, including training to educate individuals working in aviation to identify and respond to signs of human trafficking Capacity and traffic flow is enhanced on major road corridors: ◦ Continue to engage with partners and stakeholders on potential road improvements leading to the Airport ◦ Continue to undertake innovative initiatives to make the flow of traffic within and out of the Airport more efficient More trips by alternative transportation modes: ◦ Continue to engage with partners and stakeholders on a potential off-campus shuttle service for those who work at the Airport Include a Climate Lens in City decision-making, ensuring we always consider climate impacts: ◦ Continued commitment to the Airport’s environmental goal of carbon neutrality by 2030 and net zero by 2040 ◦ Maintain Airport Carbon Accreditation Level II ◦ Implement carbon neutral initiatives, including geothermal development for the expansion of the Airport Terminal Building, engagement of the Campus Green Committee to work with stakeholders on reducing whole-campus emissions, and implementing Green Development Guidelines to guide sustainable building practices across the campus, targeting energy efficiency and renewal energy integration The number of businesses is increasing: ◦ Continued pursuit of commercial development opportunities in and around the Airport Priority sectors for economic diversification are supported: ◦ Expansion of the YLW Campus Child Care Facility to provide additional support and flexibility to working parents ◦ Forecasted passenger growth from 2.1 million in 2024 to 2.3 million in 2025 ◦ Retain and grow the air service options to YLW offering greater options to passengers and supporting the regional economy The opportunity for all employees, regardless of position or role, to learn and grow their leadership competencies is increasing: ◦ Continue to provide and support opportunities for professional development, mentorship, and growth opportunities

2025 FINANCIAL PLAN

Digital Transformation

CITY OF KELOWNA

•

Active Financial Management

•

Base Business

• • • • • • •

Digital tools are used to improve the online service experience and make processes more efficient: ◦ Conversion from airline proprietary computer equipment for checking in passengers to airport wide common use software and infrastructure to enhance flexibility and allow check in and gate counters to be used more efficiently by all the airlines ◦ Software upgrades and conversions to increase efficiencies in airport operations and improve passenger support and experience through the addition of an automated passenger information system, visual voice to text paging, and the automated conversion of voice to sign language on passenger display screens Data is used to inform decision making: ◦ New software implementation for enhanced data-driven Airport operations, building management, gate scheduling and check-in counter allocation based on real time aircraft arrival and departure information as well as the number of passengers and baggage arriving/departing at the facility during peak operations Enhance the budget process to improve alignment of financial resources with stated priorities and to present budgets that allow us to meet defined service levels (e.g. program budget): ◦ Monthly analysis for capital expenditures and operational revenues and spends, proactively identifying and managing variances and cost-saving opportunities ◦ Robust budgeting and financial modeling process performed to ensure effective and efficient operations, and that service levels are maintained and/or increased while remaining financially viable and in accordance with financial health targets Targeted projects to increase non-tax revenue are minimizing the City’s reliance on tax revenue: ◦ Continue to pursue commercial development opportunities to increase nonaeronautical revenues ◦ Continually review and ensure aeronautical fees and charges are aligned with International Civil Aviation Organization guidelines and the Airport’s low-cost business model Continue to raise the service level of all elements of the Airport Continue to increase air service routes and destinations Continue to pursue diverse commercial development and partnerships Continue construction work for the expansion of the Airport Terminal Building Commencement of the enabling works for the Apron 1 South Expansion Renewal of certain infrastructure in the Air Terminal Building to extend the useful life of the infrastructure Continue construction of the new Combined Operations Building

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: • • • • • •

•

Anticipated passenger growth to over 2.1 million passengers Continue construction work for the expansion of the Airport Terminal Building Increased air service frequency and destinations available to the travelling public, including new transborder and regional destinations Continue construction of the new Combined Operations Building Successfully awarded grant funding for expansion of the YLW Campus Child Care Facility Actioned several initiatives to work towards the Airport’s environmental goal of carbon neutrality by 2030, including hiring an Environment Manager to lead YLW’s environmental, sustainability and climate programs, Airport Terminal Building LED lighting conversion, expanding the use of EVs, expanding EV charging stations, replacing natural gas air handling units with electrical units, introducing renewable diesel as an alternative to conventional diesel for equipment, conducting a solar feasibility study to explore the adoption of solar energy on-site, implementing best practices in glycol de-icing to reduce environmental impacts, and developing Green Development Guidelines Introduced an additional Required Navigation Performance Authorization Required (RNP-AR) approach, providing an additional route for aircraft arriving into YLW, increasing reliability and reducing noise and greenhouse gas emissions

Continuous improvements: • • • • •

Renewal of certain infrastructure in the Air Terminal Building to extend the useful life of the infrastructure Rehabilitation of existing airside pavement and construction of new airside pavement to further improve the safety of aircraft and passengers Continuation of enabling works for preparation of the Airport hotel and parkade Continued investment in people Purchase of airside equipment

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Airport, $162.9M

Airport Capital $88.3M Airport Improvement Fees $33.2M Groundside $16.1M Airport Finance & Corporate $12.4M Terminal $7.4M Airside $5.3M Airport Policing $0.3M

Note: Totals may not add due to rounding

Total $162.9M

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results The Airport operates under a separate, self-sustaining fund. Any unused revenue generated each year is allocated to a reserve dedicated to future airport infrastructure investments. Revenues from the Airport Improvement Fee (AIF) program are kept in a separate reserve and exclusively used to fund AIF-specific infrastructure projects. Additionally, the Airport contributes $2.3 million annually to the general fund to support enabling services and offset property taxes.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023

Revised 2024

— 48,779 5,178 1,921 26,573 82,452

— 51,851 9,159 908 144,128 206,046

— — (6,794) — (136,412) (143,205)

6,167 14,875 1,492 2,489 25,451 31,153 825 82,452

7,990 16,749 1,710 2,490 143,112 33,003 992 206,046

(137) (2) — — (143,112) 46

19.9 5.0 31.5 56.4

27.5 2.0 31.5 61.0

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

Annualized Maintaining Budget Service

Enhancing Service

Preliminary 2025

— 8,069 726 848 2,013 11,655

— — 2,747 — 85,621 88,367

— 59,921 5,838 1,756 95,349 162,864

(143,205)

1,109 2,440 199 — 113 7,676 119 11,655

233 10 — — 88,205 (81) — 88,367

9,195 19,197 1,909 2,490 88,318 40,644 1,111 162,864

— — — —

1.0 — 1.0 2.0

29.5 2.0 33.5 65.0

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Airport capital $88.3M Transfers to reserve $40.6M

Transfers from reserve $95.3M Fees and charges $59.9M Grant $5.8M Other Revenue $1.8M

Material and other $19.2M Salaries and wages $9.2M Debt Service $2.5M Contract services $1.9M Enabling allocation $1.1M

Total $162.9M Note: Totals may not add due to rounding

Total $162.9M

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Airport Improvement Fees Airport - Non-AIF Operations Airport Strategic Enhancements

2025 — 2,665 244

2026 — 2,473 475

2027 — 2,473 475

2028 — 2,473 475

2029 — 2,473 475

Operating Requests Priority 1 Total

2,908

2,948

2025

2026

2027

2028

2029

10,251

2,874

15,590

15,862

16,952

3,973 5,641 707 1,229 113

519 969 2,368 4,501 —

3,427 3,901 247 2,959 —

4,454 771 2,828 100 —

1,648 1,610 2,938 100 —

Total Project 128,467

39,642

26,624

5,920

4,477

—

24,300 8,950

11,250 8,710

3,800 —

— —

5,103 4,600 2,550

871 3,381 2,550

1,650 — —

2,367 — —

— — —

173,970

88,318

43,305

34,411

28,492

23,248

2025 Capital Requests ($ thousands) Priority 1 Description Programs Airport - Airside Pavement Rehabilitation & Expansion Airport - Airside Equipment Airport - Lifecycle Replacement & Upgrades Airport - Loading Bridges Airport - Carbon Neutral Initiatives Airport - Land Development Projects Airport - Airport Terminal Building Expansion Phase 1 Airport - Combined Operations Building Airport - Airside Lighting and Supporting Infrastructure Airport - Mill Creek Flood Protection Airport - Hotel and Parkade Enabling Works Airport - Child Care Facility Expansion Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts linked to this request

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Airport

Priority 1

Title: Airport Improvement Fees Justification:

Maintain ON-GOING PRELIMINARY

The budget for the Airport Improvement Fee revenues is based on forecasted passenger numbers of 2.3M passengers in 2025. The 2024 budget was based on passenger numbers of 2.1M. There is also an increase in the Federal Airport Capital Infrastructure Program grant anticipated to be earned in 2025. Revenues are contributed to the Airport Improvement Fee Reserve. 2024 Base Budget: $25.9M

Strategic Direction:

Economy

Year

Cost

Reserve

Borrow

6,308,000

DCC Reserve —

2025

—

2026

—

6,308,000

2027

—

6,308,000

Grant

Utility

Taxation

—

Other Revenue (726,000) (5,582,000)

—

(726,000) (5,582,000)

—

(726,000) (5,582,000)

—

Service Area: Airport

Priority 1

Title: Airport - Non-AIF Operations Justification:

Maintain ON-GOING PRELIMINARY

The increase in budgeted Airport non-airport improvement fee (non-AIF) revenues and expenditures is based on the forecast that the Airport will have 2.3M passengers in 2025. The 2024 budget was based on 2.1M passengers. The Airport's budgeted non-AIF revenues exceed non-AIF budgeted operating expenditures by $1.0M. Revenues are contributed to, and expenditures are appropriated from, their respective Airport Airside, Terminal, and Groundside Reserves. Finance and Corporate Services revenues are contributed to, and expenditures appropriated from, the Airport Airside, Groundside and Terminal Reserves evenly.

Strategic Direction:

Economy

Year

Cost

Reserve

Borrow

Grant

(49,300)

DCC Reserve —

2025

2,664,600

2026 2027

Utility

Taxation

—

Other Revenue (2,615,300)

—

2,472,800

142,500

—

(2,615,300)

—

2,472,800

142,500

—

(2,615,300)

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Airport

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Airport Strategic Enhancements Justification:

The Airport aims to move forward with strategic priorities, business objectives and goals according to its official Strategic Plan. To achieve this, budget is requested for the hiring of an Airport Contracts Coordinator, Airport Communications Manager, Airport Commercial Technical Support Lead, and an Airport Technical Support Coordinator, in alignment with the Airport's 5-Year Human Resources Plan. These positions will provide the necessary capacity and skills to meet current and future requirements for: capital projects, project coordination, communications, revenue diversification, commercial development, and strategic guidance. These four positions would be funded equally from the Airside, Groundside and Terminal reserves.

Strategic Direction:

Economy

Year

Cost

Reserve

Borrow

Grant

(243,500)

DCC Reserve —

2025

243,500

2026 2027

Utility

Taxation

—

Other Revenue —

—

475,000

(475,000)

—

475,000

(475,000)

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Title: Airport - Airside Pavement Rehabilitation & Expansion Justification:

Enhance ONE-TIME PRELIMINARY

The Airport is requesting budget to design, construct, and complete enabling works for airside pavement rehabilitation (runway and apron 1) and the addition of new airside pavement (taxiway foxtrot and apron 1).

Strategic Direction: Year

Economy Cost

2025

Reserve

DCC Reserve —

10,251,000 (10,251,000)

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Priority 1

Title: Airport - Airside Equipment Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

The Airport is requesting budget for the purchase of airside equipment as part of the Soaring Beyond 2.5 million Passengers AIF Program. $2.7M of this budget request was previously approved by Council in 2024.

Strategic Direction: Year 2025

Economy Cost

Reserve

3,973,000

(3,973,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Title: Airport - Lifecycle Replacement & Upgrades Justification:

Enhance ONE-TIME PRELIMINARY

The Airport is requesting budget for capital improvements and upgrades to the airside, groundside and terminal infrastructure equipment. $0.7M of this budget request was previously approved by Council in 2023.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

5,641,000

(5,641,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Priority 1

Title: Airport - Loading Bridges Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

The Airport is requesting budget for the purchase and installation of a loading bridge, ramp, and ancillary equipment as part of the Soaring Beyond 2.5 million Passengers AIF Program.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

707,000

(707,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Title: Airport - Carbon Neutral Initiatives Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for carbon neutral initiatives at the Airport, which are aligned with the Airport's goal of being carbon neutral by 2030. 2025 initiatives include consultation and design for the Airport's electrification strategy, the purchase of electric equipment and infrastructure, and solar installation.

Strategic Direction:

Climate & Environment

Year

Cost

2025

1,229,000

Statutory Reserve (1,229,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Priority 1

Title: Airport - Land Development Justification:

Utility —

Reserve/ Taxation —

Maintain ONE-TIME PRELIMINARY

Budget is requested to relocate the Airport fire training area to accommodate future development of the Airport East Lands and facilitate commercial opportunities.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

113,000

(113,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Title: Airport - Airport Terminal Building Expansion Phase 1 Justification:

Enhance ONE-TIME PRELIMINARY

This budget approved by Council in 2020, 2022, and 2023 is to continue the expansion of the air terminal building under the Soaring Beyond 2.5 million Passengers AIF Program.

Strategic Direction: Year 2025

Economy Cost

Reserve

39,642,000 (39,642,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Utility

Taxation

—

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Airport - Combined Operations Building Justification:

This budget which was previously approved in 2022 and 2024, is to continue the expansion of the combined operations building under the Soaring Beyond 2.5 million Passengers AIF Program.

Strategic Direction: Year 2025

Economy Cost

Reserve

11,250,000 (11,250,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Airport - Airside Lighting and Supporting Infrastructure Justification:

This budget is to upgrade the airfield lighting and supporting infrastructure to high intensity to further improve safety under the Soaring Beyond 2.5 million Passengers AIF Program.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

8,710,000

(8,710,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Priority 1

Title: Airport - Mill Creek Flood Protection Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for design and construction associated with Mill Creek at the Airport, as part of the City of Kelowna's Mill Creek Flooding Mitigation plan.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

871,000

(661,000)

DCC Reserve —

Borrow

Grant

—

(210,000)

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Airport

Priority 1

Enhance ONE-TIME

Title:

Airport - Hotel and Parkade Enabling Works

PRELIMINARY

Justification: This budget, previously approved in 2022 and 2023 when the hotel and parkade subleases were approved, is to design and construct the services for the construction of the hotel and parkade.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

3,381,000

(3,381,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Airport

Other Revenue —

Utility

Taxation

—

Priority 1

Enhance ONE-TIME

Title:

Airport - Child Care Facility Expansion

PRELIMINARY

Justification: The budget to allow for the expansion of the Child Care Facility at the Kelowna International Airport was previously approved by Council in 2024. This expansion will provide an additional 24 child care spaces, helping to alleviate the significant waitlist and meet the needs of families working on the airport campus and surrounding community. The expansion is primarily funded through a grant from the BC Provincial Government's ChildCareBC New Spaces Fund and the remaining amount will be funded through the Airport's Groundside Reserve.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

2,550,000

(13,200)

DCC Reserve —

Borrow

Grant

—

(2,536,800)

Other Revenue —

Utility

Taxation

—

2025 FINANCIAL PLAN

CITY OF KELOWNA

COMMUNITY SAFETY & BYLAW LED BY: GENERAL MANAGER, PEOPLE & PROTECTIVE SERVICES

Our goal & community benefit: Our goal is to enhance community safety and maintain community bylaw standards for all through education, engagement, coordination, compliance and collaboration. With an increasing focus on innovation and evidence-based approaches, we work to uphold community bylaws, respond to crime and social issues in our community while leading multi-disciplinary initiatives (i.e. Community Safety Plan) to reduce criminality and victimization in the future.

Our customers: • • •

Residents and commercial businesses Visitors (est. ~2M annually) Other stakeholders and community partners

Our partners: We are a convener of community/governmental partners and stakeholders who are integral to community safety.

What we deliver: We deliver a balanced approach of education, prevention, intervention and enforcement to preserve and enhance safety – and sense of safety – in our community. Bylaw Services’ core mission is to maintain community standards with the aim of driving collaborative and multi-disciplinary strategies to reduce criminality, crime and victimization. Services provided include a General Duty Section to investigate complaints, a Community Response Unit providing visibility and response with partnering agencies for priority areas and issues, and the Community Safety Services Branch focused on crime prevention, crime reduction, and improving sense of safety for all who live, work and play in Kelowna.

Our key objectives: • • •

Preserve and enhance safety – and sense of safety – in our community Foster a predictable and respectful community for all citizens through bylaw education and compliance Enhance enforcement visibility, proactivity and responsiveness in priority areas, based on available data

Our guiding plans: •

Community Safety Plan

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Citizen satisfaction with Bylaw Service Data for this metric is collected through the bi-annual Citizen Survey. This measure helps gauge the level of community satisfaction with the type and level of services being provided by Bylaw Services. Expectations are that the satisfaction levels will increase commensurate with efforts to further resource, recruit, train and professionalize Bylaw Services.

Performance measure 2 Bylaw priority 1, 2 and 3 response times The timeliness of Bylaw Services responses to priority 1,2 and 3 calls for services is an important metric to monitor Bylaw Services Officer ability to respond to public demand and expectation of assurance to foundational community standards. Priority 1 calls are characterized as impact to public safety, and are generally related to mitigating the impact of outdoor sheltering (homelessness). Priority 2 calls are characterized as representing immediate concern for public health and safety including ensuring property (public and private) access for emergency services and may involve immediate action (i.e. towing). Priority 3 calls are nuisance related and files requiring extended times to investigate, but do not require immediate action. Continued resourcing commensurate with growth in population, service demand and emergent case law will enable maintenance of existing response times. The target for P1, P2 and P3 response times are four hours, 11 hours and 18 hours, respectively. At this point we are unable to provide accurate data given the limitations of the current record management system for Bylaw Services. The next generation system is currently in the final stages of procurement and is expected to be implemented in 2025.

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Average number of days to close priority 1, 2 and 3 Bylaw Service requests Most Bylaw Services investigations are complaint driven. Monitoring the number of hours (priority 1 and 2) or days (priority 3) to close a service request indicates the responsiveness and efficiency of service being provided to our citizens. At this point we are unable to provide accurate data given the limitations of the current record management system for Bylaw Services. The next generation system is currently in the final stages of procurement and is expected to be implemented in 2025.

Performance measure 4 Caseload (general duty, property action team and encampment response) Caseload is defined as the number of service requests per authorized strength. This represents the workload per officer and is often a better indicator of the demand for Bylaw Service than annual calls for service or population.

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety

•

• • • • • • Homelessness

• •

Agriculture

•

Our People

• •

Active Financial Management Base Business

• •

Ongoing implementation of Kelowna’s first Community Safety Plan of preventionfocused strategies and actionable initiatives to reduce crime and vulnerability in our community Continued participation in, and support for actions arising from, the Mayor’s Task Force on Crime Reduction Support for local Business Improvement Areas to reduce crime and improve sense of safety Development and implementation of a strategy to address property crime Continued leadership to advocate for system-based solutions to address underlying crime drivers (i.e., repeat offenders) Continued improvement in bylaw-based strategies to mediate the public impacts of social issues while maintaining base business Development and implementation of initiatives that respond to issues uncovered through the 2023 Community Safety Survey Continue to support a multi-agency effort to enable successful inclusion of housing with supports Mitigate the public-facing impacts of visible homelessness and illegal outdoor sheltering in collaboration with enforcement, health, social service and private notfor-profit community partners Develop and co-lead an inter-agency (Provincial Agricultural Land Commission Compliance and Enforcement) and multi-departmental team to address long standing and emergent concerns with ALR non-compliant entities Increase individual and departmental capacity through targeted engagement strategies and enhanced training/professional leadership development Development of initiatives that advance the physical and psychological health, safety and wellness of all CSD staff Optimize efficiency and effectiveness of resources both human and financial Further develop and monitor performance metrics for all branches to drive actions and deliver impactful and meaningful results

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: • • •

• •

Five Community Safety Plan (CSP) - Actions Teams have completed their work. An additional seven have been initiated and are in various stages. Second annual update presented to Council Supported Uptown Rutland Business Association (URBA) with the launch of their On-Call Pilot Project Developed and launched ‘Safe in 60’ video series with a focus on crime prevention in support of initiatives arising from the Mayor’s Task Force on Crime Reduction to increase resident accessibility and use of crime prevention through environmental design (CPTED) principles. On track to exceed the number of 2023 audits conducted Reviewed and adopted new outdoor sheltering management strategies including regular and ongoing as well as significant decampment operations Ongoing and continued expansion of connectedness and coordination with service providers responding to the impacts of rising outdoor sheltering

Continuous improvements: • • • • •

Enhanced training and professional development Innovation and effectiveness through research and “best practices” Increasing agility and resilience to address emergent issues Recruiting for the needs of today and tomorrow Refining organizational structures and processes

Budget Overview

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Community Safety & Bylaw, $9.2M

Bylaw Services $6.3M Community Safety $1.5M Community Safety Services $1.4M

Note: Totals may not add due to rounding

Total $9.2M

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Community Safety & Bylaw is a property tax funded service area. Revenues earned through bylaw fines are used to offset operating costs and reduce property taxation as much as possible.

Actual 2023

Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

6,262 208 1,851 — 392 8,713

6,913 229 442 — 952 8,535

571 — (442) — (952) (823)

453 (17) — — — 436

1,035 — — — — 1,035

8,972 211 — — — 9,183

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

4,662 2,768 74 — — 66 1,143 8,713

5,310 2,264 57 — — — 903 8,535

297 (965) — — — — (154) (823)

240 122 — — — — 74 436

252 743 20 — — — 20 1,035

6,099 2,164 77 — — — 843 9,183

Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

5.9 30.4 6.8 43.1

4.5 31.1 9.0 44.6

0.5 2.0 — 2.5

— — — —

— 1.5 0.5 2.0

5.0 34.6 9.5 49.1

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Salaries and wages $6.1M

Property tax $9.0M Fees and charges $0.2M

Material and other $2.2M Enabling allocation $0.8M Contract services $0.1M

Total $9.2M

Note: Totals may not add due to rounding

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Senior Bylaw Officer Kelowna Detachment & Police Services Resource Review-Public Safety Levy Mayor's Task Force - Redeployment Outdoor Overnight Sheltering Bylaw Enforcement Officer (x2)

2025 169 —

2026 163 —

2027 163 —

2028 163 —

2029 163 —

— 100 236

— 200 277

— 300 277

Operating Requests Priority 1 Total

506

640

740

2025 Capital Requests There are no 2025 Priority 1 Preliminary Capital budget requests for this service area.

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Community Safety & Bylaw

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Senior Bylaw Officer Justification:

Budget is requested for one Bylaw Services Senior Officer position to lead the expansion of front-line operations and interagency collaboration as part of the new Property Action Team in support of Council's Crime & Safety and Agriculture Priorities. This Senior Officer will also handle complex/sensitive Bylaw files, lead the Bylaw Officer Training & Development program, steward the introduction of a new Records Information Management System, and work with the Kelowna Security Operations Centre, RCMP and Community Safety Services Branch on emergent issues. Budget is also requested for one vehicle that will be moved into the capital program upon Council approval.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

169,400

2026 2027

Utility

Taxation

—

Other Revenue —

—

(169,400)

163,000

—

(163,000)

163,000

—

(163,000)

Service Area: Community Safety & Bylaw

Priority 1

Title: Kelowna Detachment & Police Services Resource Review-Public Safety Levy Justification:

Enhance ONE-TIME PRELIMINARY

Crime & Safety are a key priority for the public and Council, alike. Policing costs across communities are increasing significantly, representing one of the City's highest operational cost centres. In 2019, an external consultant conducted a comprehensive resource review of Kelowna Police Services. This report included a five-year outlook and numerous recommendations which largely drove police and municipal employee resourcing from 2019 to 2024. Budget is requested, funded from the Public Safety Levy, to conduct a similarly critical and comparative review of existing services and resource utilization, as well as a comparative analysis of police service delivery models. The estimated cost is based upon comparable reviews in other cities.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

100

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Community Safety & Bylaw

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Mayor's Task Force - Redeployment Justification:

The Mayor's Task Force on Crime Reduction was established to provide community-driven recommendations aimed at reducing crime and enhancing safety. As part of the task force recommendations, redeployment of Council Initiatives budget is requested to fund the following initiatives: Business Improvement Area Ambassador Program Two-year term Community Safety Advisor CPTED Preparation and Principles Application Enhanced Restorative Justice Initiatives Kelowna Gospel Mission Community Workshops Community Social Development Grants Two-year term Digital Media Coordinator

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Community Safety & Bylaw

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Outdoor Overnight Sheltering Justification:

Additional ongoing budget is requested to address the impacts associated with the increasing number of individuals sheltering outdoors. In compliance with legal obligations to not prohibit overnight sheltering in all public spaces for unhoused individuals, the City provides designated site(s) which includes portable washrooms, wash stations, security, and other services. This funding may also support the implementation of crime prevention initiatives as well as the ongoing identification, intervention, and remediation of unauthorized overnight sheltering locations throughout the city.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

100,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(100,000)

200,000

—

(200,000)

300,000

—

(300,000)

101

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Community Safety & Bylaw

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Bylaw Enforcement Officer (x2) Justification:

Budget is requested for two Bylaw Enforcement Officers to resource a team of officers dedicated to investigate and enforce complex property-related files including, Property Standards Compliance, Short Term Rental and Business Licencing enforcement files in support of City Council's Crime & Safety priority. As the City grows and provincial legislation evolves, there are an increasing number of reactive and proactive demands requiring more effort, inter-departmental and interagency collaboration to effectively enforce.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

236,200

2026 2027

Utility

Taxation

—

Other Revenue —

—

(236,200)

277,200

—

(277,200)

277,200

—

(277,200)

102

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 2 Description Bylaw Services Enforcement Coordinator Bylaw Enforcement Officer (x2) Operating Requests Priority 2 Total

2025 50 151 201

2026 100 263 362

2027 100 263 362

2028 100 263 362

2029 100 263 362

103

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Community Safety & Bylaw

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Bylaw Services Enforcement Coordinator Justification:

Budget is requested for a Bylaw Services Administration Coordinator to augment the current two-person team to sustain adequate and efficient response to public citizen calls for service, provide necessary support and leadership to the front office team, and to provide administrative leadership for growing tasks (i.e., training, assets/inventory, financial and performance metric monitoring and reporting) branch-wide. As Bylaw Services continues to evolve and expand service delivery to meet operational demands in support of Council's Crime & Safety and Homelessness priorities, there has been a commensurate increase administratively. If moved to a priority 1, this request would increase taxation demand in 2025 by 0.03 per cent.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

50,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(50,000)

99,600

—

(99,600)

99,600

—

(99,600)

Service Area: Community Safety & Bylaw

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Bylaw Enforcement Officer (x2) Justification:

Budget is requested for two Bylaw Enforcement Officers dedicated to encampment response with weighted effort in Rutland in support of City Council's Crime & Safety and Homelessness priorities. As city-wide impacts of social disorder continue to increase, there is a need to have dedicated resources in specific communities where the demand is greatest, four days per week. If moved to a priority 1, this request would increase taxation demand in 2025 by 0.08 per cent.

Strategic Direction: Year

Crime & Safety Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

151,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(151,000)

262,800

—

(262,800)

262,800

—

(262,800)

104

2025 FINANCIAL PLAN

CITY OF KELOWNA

POLICE SERVICES & RCMP LED BY: GENERAL MANAGER, PEOPLE & PROTECTIVE SERVICES

Our goal & community benefit: Our goal is to preserve and enhance safety – and sense of safety – in our community. We deliver 24/7 operational support services to the Royal Canadian Mounted Police (RCMP).

Our customers: • •

Community residents, commercial businesses and visitors Other stakeholders and community partners

Our partners: We work with community/governmental partners and stakeholders who are integral to community safety to support the provision of efficient and effective police services.

What we deliver: Police Services provides 24/7 operational support to the RCMP as part of its mandate to ensure public safety in our community. Services include information management, frontline supports, facility operations, quality assurance and all other administrative facets necessary for effective, efficient, and responsive policing in Kelowna.

Our key objectives: • • •

Support the preservation and enhancement of public safety – and sense of safety – in our community Support longer-term evidence-based initiatives to appropriately address upstream demands on police Initiate and implement innovative strategies to continuously improve the overall efficiency and effectiveness of the RCMP

Our guiding plans: • •

RCMP Strategic Plan Community Safety Plan

105

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Citizen satisfaction with police services Data for this metric is collected through the bi-annual Citizen Survey. This measure helps gauge the level of community satisfaction with the type and level of services being provided by the City’s contracted police agency. Expectations are that the satisfaction levels will increase commensurate with RCMP recruitment, resourcing, efficiency, investigative effectiveness, communications, accountability, and transparency toward public trust, as well as outreach/community policing efforts. The 2024 data highlights an improvement from the 2022 actual of 74 per cent.

Performance measure 2 Police priority 1,2 and 3 response times The timeliness of RCMP responses to priority 1, 2, 3 calls is an important metric to monitor police service delivery. Priority 1 calls are deemed very urgent and are typically a major incident or incident in progress that require immediate police protection. They can involve risk/loss of life and account for an estimated five per cent of all citizens calls for police service. Priority 2 calls are urgent and need to be dispatched as soon as possible as the potential for escalation of violence exists. Priority 3 calls tend to be more routine. While they do not require immediate police presence, they do need to be dispatched as soon as reasonably possible. Continued resourcing commensurate with growth in population, service demand and emergent case law will enable maintenance of existing response times. The target for P1, P2 and P3 response times are eight minutes, 10 minutes and 45 minutes, respectively.

106

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Citizen callbacks for police service calls RCMP communication with complainants to follow up on service provided is an important aspect of community policing. False alarms, abandoned calls for service, online reporting, assistance outside of public safety, and failure to appear, are not specified for follow up calls while all other file types should conclude with a callback.

Performance measure 4 Traffic safety: police enforcement interactions Council has prioritized the visibility of police enforcement as a key strategy to address high-risk traffic behaviours. Evidence supports that visible policing - including traffic checks - can reduce crime and traffic collisions. Enforcement activities – tracked through the issuance of violation tickets, warnings and notices/orders – are routinely reported by the RCMP to ensure accountability and alignment with traffic safety goals. However, operational demands, including resource-driven investigations, may temporarily reduce traffic enforcement capacity. Further, the need to maintain response times for P1, P2, P3 calls can affect resource allocation. Balancing operational priorities with traffic safety initiatives requires strategic resource management and flexible staffing.

107

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 5 Caseload Caseload is defined as the number of criminal code offences (excluding drugs & traffic offences) per authorized strength. This represents the workload per officer and is often a better indicator of the demand for police service than crime rate or population. Kelowna’s caseload routinely surpasses other communities with population of 15k+ in BC. In 2022, Kelowna had a caseload 44 per cent higher then other communities in BC with populations greater than 15,000; eighth highest caseload.

2025 Activities by priority: Priorities

Activities

Crime & Safety

• • • • • • • •

Our People

• •

Active Financial Management Base Business

• • •

Advance longer-term evidence-based initiatives to appropriately address upstream demands on police Continue to support implementation of the Community Safety Plan Support relevant actions arising from the Mayor’s Task Force on Crime Reduction Maintain current service levels, responsiveness, and visibility in priority areas (i.e., downtown and Rutland) Support efforts, as feasible, to enhance prevention and community-policing based initiatives, particularly in Business Improvement Areas In partnership with the City and stakeholders, co-develop and implement a property crime reduction strategy Continue to develop, implement, measure and provide provincial leadership in respect to strategies to reduce the impacts of repeat offenders in our community Continue to implement education and prevention-focused communications to increase public prevention and reporting of criminal activity Increase individual and departmental capacity through targeted engagement strategies and enhanced training/professional leadership development Development of initiatives that advance the physical and psychological health, safety and wellness of staff Develop and implement a quarterly RCMP contract performance dashboard Optimize efficiency and effectiveness of support services for Police Services Further develop and monitor performance metrics for all Police Services’ units to drive actions and deliver impactful and meaningful results

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2024 Key accomplishments: • • • • • • •

Augmented and re-staffed specialized policing units (i.e. Traffic and Community Safety Unit) Enhanced and prioritized the Repeat Violent Offending Intervention initiative Initiated coordination of the newly adopted Auxiliary Police Program Optimized police resource deployments through intelligence-led operations Developed and adopted enhanced reporting framework Augmented and invested in additional Police Service support personnel Continued cost recovery improvements for Regional RCMP and Police resources

Continuous improvements: • • • • • • • • •

Enhance recruitment and retention efforts to increase occupancy rates Continued review of processes to improve efficiencies Adoption of technology to improve the effectiveness of internal operations (body worn cameras to be introduced) Increase use of data-driven hotspot policing, including traffic enforcement Continued improvement of community safety concerns of diverse communities Provincial leader in best practices for repeat offender management Further adopt proven crime prevention approaches in Business Improvement Areas Promote and support the right providers for mental health, addiction care, and housing needs Advance the RCMP Auxiliary and SPEED WATCH Programs in Kelowna

Budget overview:

2025 Total Expenditure Budget Breakdown

2025 Total Expenditure Budget, $838.9M

Police Services & RCMP, $76.7M

Police Services Corporate Strategic $63.4M Police Operations Support $4.1M Police Information Management $2.4M Police Investigative Services $2.0M Police Quality Assurance $2.0M Police Client Services $1.6M Police Facility Operations $0.9M Police Services Operations $0.2M

Total $76.7M Note: Totals may not add due to rounding

109

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Police Services and RCMP are funded through property taxes. Revenues received from the Province via the Host Local Government program (gaming revenue) helps to offset the impact on taxpayers. Additionally, reserve funding is used as a budget tool to manage anticipated surpluses from the RCMP contract; however, these reserve funds will only be utilized if the RCMP contract strength is fully met.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

57,341 830 — 5,900 7,447 71,518

59,930 639 — 6,067 — 66,635

400 — — — — 400

4,664 24 — 223 3,893 8,804

817 — — — — 817

65,810 663 — 6,290 3,893 76,655

7,958 567 53,529 — — — 9,464 71,518

7,642 575 51,355 — — — 7,064 66,635

(1,322) (80) 2,606 — — — (804) 400

4,335 17 3,834 — — — 617 8,804

135 40 473 — — — 169 817

10,790 552 58,268 — — — 7,045 76,655

19.3 8.4 58.2

25.0 3.7 74.5

0.5 — 1.0

— — 1.5

— 0.5 1.0

25.5 4.2 78.0

85.9

103.2

1.5

107.7

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type

Property tax $65.8M

Contract services $58.3M

Other Revenue $6.3M

Salaries and wages $10.8M

Transfers from reserve $3.9M

Enabling allocation $7.0M

Fees and charges $0.7M

Material and other $0.6M

Total $76.7M

Note: Totals may not add due to rounding

110

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description RCMP Regular Members (7) - Public Safety Levy Police Service Calls Support Intelligence Analyst (Criminal) RCMP Police Services Disclosure Specialist

2025 — 147 64 52

2026 — 292 236 104

2027 — 292 236 104

2028 — 292 236 104

2029 — 292 236 104

Operating Requests Priority 1 Total

264

632

2025 Capital Requests There are no 2025 Priority 1 Preliminary Capital budget requests for this service area.

111

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Police Services & RCMP

Priority 1

Enhance ON-GOING PRELIMINARY

Title: RCMP Regular Members (7) - Public Safety Levy Justification:

Budget is request for seven Regular Members, funded from the Public Safety Levy, to keep pace with rapid population growth while also advancing service delivery in support of Council's Crime & Safety Priority. Caseloads remain higher than provincial averages and are aggravated by increased workloads arising from legislative changes in the justice system, and broadening expectations to complex social issues (ie: homelessness, mental health, substance use). Kelowna RCMP remain committed to Council's vision for improved community safety through enhanced visibility, responsiveness & proactive policing. A continued commitment to resource increases beyond population growth creates conditions to deliver higher service levels and to be optimally positioned to increase community safety for all who live, work and play in Kelowna.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Police Services & RCMP

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Police Service Calls Support Justification:

Budget is requested for three Records Clerks to support calls and ease pressure within the RCMP Detachment. In August 2023, an internal review of Operational Communication Centre (OCC) workload outlined that several call types (P2, P3 & P4) were being actioned by OCC counter to current policy. As these calls do not fall within their core mandate, it was directed that the Detachment assume responsibility of these calls. This additional workload has proven to be very impactful for the Information Management and Front Counter team. These additional three Records Clerks will ensure operational priorities can be met and service levels maintained.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

147,300

2026 2027

Utility

Taxation

—

Other Revenue —

—

(147,300)

292,200

—

(292,200)

292,200

—

(292,200)

112

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Police Services & RCMP

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Intelligence Analyst (Criminal) RCMP Justification:

Budget is requested for one Intelligence Analyst, as part of the RCMP contract, to directly impact public safety by supporting criminal investigations, deploying finite resources on people & places of greatest impact, informing crime prevention efforts & supporting operational decisions. To meet Council's Crime & Safety Priority, the four-person Crime & Intelligence Analysis Unit requires expansion of one Analyst to enhance the impact of the Unit which supports investigations and enables intelligence-led enforcement. This Unit also supports the Officer in Charge, who relies heavily on timely, accurate and analyzed data to inform policing decisions and reporting. Work includes tracking trends, providing timely data for Reports to Council, and supporting the Community Safety Services Branch as it relates to emerging and ongoing issues.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

64,100

2026 2027

Utility

Taxation

—

Other Revenue —

—

(64,100)

236,400

—

(236,400)

236,400

—

(236,400)

Service Area: Police Services & RCMP

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Police Services Disclosure Specialist Justification:

Budget is requested for one Disclosure Specialist to mitigate the risk of non-compliance with Crown Council. The current team of two are responsible for extracting material from investigative files to create disclosure packages. Requests increased 14 per cent and turnaround times for disclosure files has doubled between 2022 to 2023 and are expected to increase further with the introduction of body worn cameras. As part of the 2016 Jordon ruling, timelines must be met as Crown Counsel will no longer approve charges until substantial disclosure is provided. Packages must be delivered to investigating members within five to seven weeks for submission; an additional Police Services Disclosure Specialist will assist in meeting the timelines imposed.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

52,100

2026 2027

Utility

Taxation

—

Other Revenue —

—

(52,100)

103,800

—

(103,800)

103,800

—

(103,800)

113

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 2 Description RCMP Regular Members Operating Requests Priority 2 Total

2025 64

2026 236

2027 236

2028 236

2029 236

236

114

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Police Services & RCMP

Priority 2

Enhance ON-GOING PRELIMINARY

Title: RCMP Regular Members Justification:

The cost of an additional RCMP member requested funded from taxation. If moved to a priority 1, this request would increase taxation demand in 2025 by 0.03 per cent.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

64,100

2026 2027

Utility

Taxation

—

Other Revenue —

—

(64,100)

236,400

—

(236,400)

236,400

—

(236,400)

115

2025 FINANCIAL PLAN

CITY OF KELOWNA

FIRE SAFETY LED BY: GENERAL MANAGER, PEOPLE & PROTECTIVE SERVICES

Our goal & community benefit: Our goal is to provide effective fire protection and public safety services to all areas of the City of Kelowna. This includes fire suppression and rescue, fire prevention, fire safety inspections, public education, fire training, first medical responses, hazardous material response, specialty rescue, pre-incident planning, dispatch and emergency management.

Our customers: • • •

Residents of Kelowna and visitors to the community (Suppression Branch) Commercial and multi-family development proposals (Fire Prevention Branch) Fire departments across five regional districts (Dispatch)

Our partners: We work with local government, community groups, citizens and volunteers to provide public safety services.

What we deliver: Kelowna Fire Department (KFD) provides a number of services to the City of Kelowna and to the region. Along with fire suppression and rescue, we provide inspection services and input into new developments. Our dispatch centre serves over 70 fire departments across six regional districts. KFD specialty teams provide technical rescue, including high angle, tower crane, swift water, marine rescue and hazmat response across the Central Okanagan. In addition, KFD oversees the regional Emergency Program and hosts the region’s Emergency Operations Centre.

Our key objectives: Provide life safety for the residents of the City of Kelowna through fire suppression, rescue, dispatch, training, inspections, and public education.

Our guiding plans: •

2016-2030 KFD Strategic Plan

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2025 FINANCIAL PLAN

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Measuring performance: Performance measure 1 Fire and life safety inspections Company inspections are completed by on-duty firefighters from each station. The target is to complete 2,400 inspections across five stations. As on-duty crews see an increase in call volume, their capacity to complete inspections is reduced, increasing the backlog of inspections. Revisions to the Fire Safety Act from the Province in August 2024, will have a positive impact on the number of inspections to be completed. The reduction in inspections will come in the way of a risk-based inspection interval along with a self-assessment form for building owners, transferring some of the workload over to a more administrative role. However, based on growth and development as well as an increase in other duties/responsibilities such as fire investigation, fire incident pre-plans, and public education, inspections will continue to suffer. Even based on the anticipated reduction of inspections to be completed in 2025, it is still predicted KFD will not be able to complete all the required inspections.

Performance measure 2 Kelowna dispatch centre percentage of 911 calls answered The percentage of dispatch incidents answered within 10 seconds is based on the National Fire Protection Association (NFPA) standard. According to the NFPA standard, not all emergency calls should be included in this metric, as certain calls are exempt, such as technical rescues, hazardous material incidents, or those with mitigating circumstances like language barriers or large-scale disasters. Currently, exempted calls are included in the metric calculation, which significantly impacts percentages during large-scale events.

117

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Effective Response Time (ERT) Effective response time refers to how quickly the Kelowna Fire Department (KFD) can arrive at the scene of an emergency after being dispatched. The KFD has set specific goals for response times and resource allocation based on the type and severity of the incident and the location. Within the Permanent Growth Boundary (PGB), the goal is for the first fire truck to arrive within seven minutes and 40 seconds, 90 per cent of the time, for all types of emergencies. For areas outside the PGB, the goal is for the first fire truck to arrive within 11 minutes and 40 seconds, 90 per cent of the time. These goals ensure that the KFD can provide timely and effective responses to emergencies, enhancing safety and protection for the community. Effective Response Force (ERF) Kelowna Fire Department (KFD) Strategic Plan identifies the Effective Response Force (ERF) as the ability of the KFD to quickly assemble three fire engines and one Incident Commander, with a total of 13 personnel on scene, to a residential house fire to ensure effective firefighting and rescue operations. A typical residential fire response should ideally include at least 14-15 firefighters who perform essential tasks like fire attack, search and rescue, ventilation, water supply, and command. This staffing level is crucial for managing fires safely and efficiently, protecting lives and property, and ensuring that all critical tasks can be performed simultaneously without overburdening any single team. An adequate ERF allows the fire department to respond promptly and effectively to emergencies, thereby keeping the community safe.

118

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Performance measure 4 KFD suppression calls responded to KFD responded to 14,183 calls in 2023 and population was 162,095. This is 87.5 calls per 1,000 population in 2023 with future years showing growth in both population and incidents.

Performance measure 5 Firefighters on duty KFD had 23 firefighters on duty in 2023 with a population of 162,095 and that has increased to 25 firefighters on duty by mid 2024.

119

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety

• •

Homelessness

•

Climate & Environment

• •

Our People

•

Digital Transformation

• • • •

Active Financial Management

•

Continued participation in the Property Safety Compliance Team and other opportunities to integrate with partnering agencies such as police and bylaw Continued improvement of Effective Response Force (ERF) – the ability to quickly assemble three fire engines and one Incident Commander, with a total of 13 personnel on scene, to a residential house fire to ensure effective firefighting and rescue operations Engage with other stakeholders on safety for those experiencing homelessness, including fire safety education Continued focus on Wildland Urban Interface (WUI) response, including education around FireSmart KFD has partnered with UBCO on the Okanagan Wildfire Lab to advance wildfire research and training to enhance wildfire resilience and management Continued focus on wellness initiatives to ensure a safe and healthy working environment Working with GIS to improve mapping for major events, including interactive tools to share information real time Implementation of drones to support response Use recommendations of Master Plan to better use data to make informed decisions and set benchmarks The Okanagan Wildfire Lab project uses AI-powered sensors to help KFD improve fire monitoring and response Continue to review long term capital plans including fleet to ensure the best use of capital for mid to long term needs

2024 Key accomplishments: • • • • • • • •

Creation of KFD Facilities Master Plan, including benchmark and demand forecast analysis North Glenmore Emergency Response and facility planning Improved Effective Response Force with two additional firefighters at Fire Station 2 operating one squad downtown to improve Effective Response Time for the downtown core Introduction of a new Regional Marine Rescue Vessel to serve the regional rescue program Creation of the Wildfire Mitigation Branch with one full-time Captain, which has successfully improved the impact of FireSmart initiatives and enhanced community resilience against wildfires in Kelowna Addition of a new Incident Command Trailer to be utilized by Fire, Police, and Bylaw for large, complex emergency events Investment in training and equipment specifically for wildland-urban interface events, including Structure Protection Trailers, Engine Boss, Task Force Leader, and hands-on crew training Continued implementation within Dispatch of NG911

Continuous improvements: • • • • • • •

Modernization of the KFD Strategic Plan to provide a benchmark for the department across all services, staffing, and facilities Continued focus on specialized training, with an emphasis on responder safety Development of a long-term strategy specific to Fire Dispatch that includes the impacts of NG911 Expansion of the Wildfire Mitigation and FireSmart Initiatives for Kelowna residents and communities Continued enhancement of Wildfire Training and equipment Expansion of Firefighter Live Fire Training and Fire Officer development program Improvements in Effective Response Force and Effective Response Time

120

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Fire Safety, $41.3M

Fire Operations $28.4M Fire Safety Capital $5.8M Fire Communications & Emergency Management $3.7M Fire Department $1.8M Fire Mitigation $1.5M

Note: Totals may not add due to rounding

Total $41.3M

121

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Fire Safety is funded through property taxes. The City also provides Dispatch Services to several regional districts across the province, creating operational efficiencies that lower dispatch costs for Kelowna taxpayers and help reduce the overall tax burden. Annual reserve contributions are made to mitigate the financial impact of significant capital purchases.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

28,531 3,938 156 453 1,585 34,662

30,354 2,795 2,862 444 3,276 39,732

(458) — (2,853) — (3,276) (6,587)

2,010 72 1,908 20 1,193 5,204

214 — — — 2,700 2,914

32,120 2,867 1,917 464 3,893 41,262

24,861 1,850 276 — 1,672 1,647 4,356 34,662

26,065 1,905 206 — 5,923 1,586 4,046 39,732

375 (249) — — (5,923) — (790) (6,587)

1,832 118 10 — 3,098 (175) 321 5,204

126 — — — 2,700 — 88 2,914

28,398 1,774 216 — 5,798 1,412 3,665 41,262

7.2 1.6 154.3

7.0 1.7 145.5

— — 3.5

— — 2.5

— — —

7.0 1.7 151.5

163.1

154.2

3.5

2.5

—

160.2

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Salaries and wages $28.4M

Property tax $32.1M Fire Safety capital $5.8M Transfers from reserve $3.9M Enabling allocation $3.7M Fees and charges $2.9M Material and other $1.8M Grant $1.9M Transfers to reserve $1.4M Other revenue $0.5M Contract services $0.2M

Total $41.3M

Note: Totals may not add due to rounding

122

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Firefighters (4) - Public Safety Levy Assistant Fire Training Officer KFD Live Fire Training

2025 — 99 126

2026 — 176 126

2027 — 176 —

2028 — 176 —

2029 — 176 —

Operating Requests Priority 1 Total

225

302

176

2025

2026

2027

2028

2029

102 1,091

850 854

552 204

11 3,717

11 2,806

Total Project 3,810 39,000

1,905 2,700

1,905 9,450

— 12,150

— 14,700

— —

42,810

5,798

13,059

12,906

18,428

2,817

2025 Capital Requests ($ thousands) Priority 1 Description Programs Fire Communications Systems Fire Vehicles & Equipment Projects NG911 Implementation Glenmore Protective Services Building Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts included in the request

123

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Fire Safety

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Firefighters (4) - Public Safety Levy Justification:

Budget is requested for four firefighters, including incidental costs, funded from the Public Safety Levy. Incidents are forecasted to reach 17.8k by 2028 and population is expected to continue to grow. With current resources, the Kelowna Fire Department (KFD) is meeting its Incident Response Time target (nine minutes) 81.3 per cent of the time and it's Effective Response Force (ERF) time target (12 minutes) 55 per cent of the time. The staffing plan for KFD is to build minimum onshift staffing over time to improve both Response Time and Effective Response Force time.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Fire Safety

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Assistant Fire Training Officer Justification:

Budget is requested to add one Assistant Training Officer to address increasing training demands due to significant staffing growth. It is essential to ensure that all firefighters receive comprehensive and timely training, enhancing their proficiency in core skills and specialized disciplines. This staffing change will help maintain high training standards, reduce safety risks, and improve firefighter morale and retention. This addition is anticipated to reduce overtime expenses within the department.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

99,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(99,000)

176,200

—

(176,200)

176,200

—

(176,200)

124

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Fire Safety

Priority 1

Enhance ON-GOING PRELIMINARY

Title: KFD Live Fire Training Justification:

Budget is requested to send firefighters to the North Okanagan Training Centre for one day of live structural fire training. This type of training is important for members to ensure the highest level of safety and is required by section 32 of the Worksafe BC regulation, appropriate to the type of rescue or evacuation being provided. The National Fire Protection Association (NFPA) 1700 standard states that hands-on training should be provided to support the new policies, procedures, and guidelines and skills should progress from basic concept application to live-fire, multi-company drills. NFPA 1710 states members shall practice assigned skill sets on a regular basis but not less than annually. Cost includes facility rental, shift coverage overtime, and gear cleaning for approximately 130 operational firefighters.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

126,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(126,000)

126,000

—

(126,000)

—

125

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Fire Safety

Priority 1

Title: Fire Communications Systems Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for fire communications systems for the replacement of old communication equipment that is beyond its' service life, or the purchase of new communication equipment to meet current needs, or regulatory changes.

Strategic Direction:

Other

Year

Cost

Reserve

2025

102,000

(102,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Fire Safety

Other Revenue —

Priority 1

Title: Fire Vehicles & Equipment Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for fire vehicles and equipment for the replacement of old equipment/vehicles that are beyond its' service life, or the purchase of new equipment/vehicles to meet current needs, or regulatory changes.

Strategic Direction: Year 2025

Other Cost

Reserve

1,091,000

(1,091,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

126

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Fire Safety

Priority 1

Title: NG911 Implementation Justification:

Maintain ONE-TIME PRELIMINARY

The Union of BC Municipalities provided multi-year grant funding for the Next Generation 9-1-1 (NG 9-1-1) project to the City of Kelowna. Budget is requested to support all costs related to the mandatory transition to NG 9-1-1 technology by 2025. The provincial government delayed the date to 2025 as Canadian Radio-television and Telecommunications (CRTC) requirements were not finalized.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

2025

1,905,000

—

DCC Reserve —

Borrow

Grant

—

(1,905,000)

Service Area: Fire Safety

Other Revenue —

Priority 1

Title: Glenmore Protective Services Building Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for design and construction of the Glenmore Protective Services Building on John Hindle Drive. The scope includes new fire hall facilities, protective services training facilities, associated site works, the demolition of the of current Fire Hall #5 and it's eventual return to agricultural use.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

2025

2,700,000

(2,700,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

127

2025 FINANCIAL PLAN

CITY OF KELOWNA

WASTEWATER UTILITY LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: Protect Okanagan Lake, human health and our environment through efficient collection and effective treatment of wastewater. Without treatment, we expose Okanagan Lake to unnatural levels of nutrients and toxins, threatening public health, wildlife habitats, fisheries, tourism and recreation.

Our customers: •

All citizens, businesses and visitors to Kelowna ◦ Residential ◦ Commercial (e.g., restaurants, hotels) ◦ Industrial (e.g., breweries, wineries, food producers) ◦ Institutional (e.g., hospitals, schools)

Our partners: • • • •

Surrounding communities, including First Nations. Research from the University of British Columbia, consultants, and the National Benchmarking Initiative. Government agencies include Environment Canada, BC Centre for Disease Control, City of Vernon, and the Province. Biosolids customers, including the OgoGrow Composting Facility and the Ingerbelle Compost Facility.

What we deliver • • • • •

The City collects, on average, 37 million litres of water per day (ML/d), and routes it through over 650 km of buried mains by gravity and 44 sanitary lift stations to the wastewater treatment plant We operate a wastewater treatment facility that filters, removes nutrients and disinfects the finished product into a final high-quality effluent. The effluent is used for irrigation or immediate safe release to Okanagan Lake Many of the major components in the wastewater system are resilient to climate change and have redundancy in their backup processes that allow for quick repair while maintaining full time operation We have highly trained professional staff to reliably service the needs of a growing City 24 hours a day and 365 days per year We deliver competitive rates in comparison to other communities in the country

Our key objectives: • • • • •

Collecting wastewater from all urbanized areas of the City and route it safely to the wastewater treatment facility Effectively filter, treat and disinfect all wastewater to protect public health, the environment and Okanagan Lake Assure that policies are consistent across the valley to prevent discharge of sanitary wastewater to Okanagan Lake Sustain investment, resources and trained professional staff to service the needs of a growing city reliably for 24 hours a day and 365 days per year Rates that reflect these objectives, a reasonable Level of Service, and that are competitive with other communities

Our guiding plans: • • • •

Kelowna’s Water Security & Responsibility Plan (draft) 20-year Servicing Plan 10 Year Capital Plan 2040 Official Community Plan

128

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Treatment Capacity and Effectiveness The City of Kelowna’s wastewater treatment process effectively removes or reduces nutrients, toxins, soaps and other sanitary elements from being introduced to Okanagan Lake. Two of the more important elements we measure in our treated effluent are nitrogen and phosphorus. While nitrogen and phosphorus levels in Okanagan Lake are naturally low, higher nutrient levels in areas of the lake are the result of untreated wastewater and agricultural runoff. Extreme levels can lead to increased risk of algal blooms and lower oxygen levels for fish and plants, resulting in poor quality water for drinking water and recreation. Effective wastewater treatment reduces these risks.

Performance measure 1 Wastewater treatment total nitrogen annual average This measure is the annual total nitrogen discharge to Okanagan Lake from the wastewater treatment facility. The annual average permit limit is 6.0 mg/l as regulated by the Ministry of Environment and Climate Change. Continued limit exceedances will require process changes or upgrades at the plant.

Performance measure 2 Wastewater treatment total phosphorus annual average This measure is the annual total phosphorus discharge to Okanagan Lake from the wastewater treatment facility. The annual average permit limit is 0.25 mg/l as regulated by the Ministry of Environment and Climate Change. Continued limit exceedances will require process changes or upgrades at the plant.

129

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Wastewater utility is sustainably funded Identifies the ratio of capital reinvestment (renewal) divided by the current year estimated replacement value of infrastructure. Measure is in per cent. 0.8 per cent implies renewal rate would take 125 years to renew existing infrastructure. The long run target should range from 1.2 per cent to 1.5 per cent (67 to 83 year average infrastructure life). The current renewal rate is adequate given the relatively young age of the assets, but renewal will need to increase in the longer term as the system ages.

Performance measure 4 Residential rates are competitive Residential rates are competitive with other communities. Kelowna has one of the lowest wastewater rates within the valley. The average monthly rate among other communities in the Interior of B.C. is $43.32 (Vernon, West Kelowna, Lake Country, Penticton, and Kamloops).

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2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety

•

Affordable Housing

•

Climate & Environment

• •

Our People

•

• • Digital Transformation

•

Active Financial Management

•

• • Base Business

• •

Increased security measures at utility infrastructure to protect citizens utility investment Efficient and affordable wastewater service contributes to overall housing affordability Ongoing involvement with Provincial and Federal bodies, gathering and evaluating data for facility effluent and its effects on public health and the environment Continued teamwork with other municipalities reviewing facility operations and discussing optimization of similar facilities Every three years there is a confidential online employee engagement survey which is the first step in creating and fostering a workplace that offers purpose and inspires staff to achieve their best Utility leaders actively pursue and support staff training and development Ensure that all certified staff receive adequate training to maintain Provincial required certifications The team continues working towards the creation of online forms and data sheets which will streamline data entry and allow for easier information transfer for operational optimization Working with other groups within the City, the utility is supporting development of a central data warehouse which will allow users to have easier access to data for operations, modeling, and development. This project is slated for completion in late 2024. 2025 will see early implementation. CityWorks information is being used to create dashboards, these dashboard will eliminate repetitive and redundant work while supplying needed information across the organization. Continued work on alignment of utility operational budgets between different utility work groups allowing for a clearer view of operational spending and increased transparency for financial reporting Work continues on the development of dashboards linking operational and financial information to provide easy one stop for utility updates and information Continue to improve use of benchmarking for effective operations through ongoing participation in the Canadian Infrastructure Benchmarking Initiative Efficient, effective wastewater collection and treatment, protecting the public health and the environment and increasing effluent reuse Continue with effective renewal of end-of-life infrastructure

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2025 FINANCIAL PLAN

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2024 Key accomplishments: • • • • • • •

Continued community outreach and educational opportunities to inform customers about wastewater collection and treatment and the direct impact actions have on the utility, public health, and the environment Operational projects will be completed or are on-track for completion Environmental Operator Certified staff met all their continuing education required for Provincial Certification Added new collection mains and sewer connections for 31 residences previously on septic treatment in the Rio Drive/Terrace Drive area Completed the Burtch transmission relining project, the complete re-lining of 2.7 km of failing concrete sewer main from Enterprise Way to Byrns Road Allowed discharge of treated effluent from the District of Lake Country in the Jim Bailey Industrial Area Addressed urgent need to provide interim effluent disposal from an agricultural processor in the Regional District of Central Okanagan service area to support local agriculture

Continuous improvements: • • •

Utility staff are continually increasing levels of knowledge and using outreach opportunities to help keep them in tune with the latest treatment, collection and disposal of wastewater liquid and solids We are future focused and closely monitor our developing community and impacts of climate change and how those can affect the utility Increased nutrient loading at the treatment facility is still under review, this situation is not isolated to Kelowna and is being experienced at many other locations. Discussions and further exploration to address this issue are planned for 2025

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Wastewater Utility, $56.9M Wastewater Capital $38.8M Wastewater Treatment $7.5M Wastewater Collection $6.2M Biosolids $2.9M Water Quality & Customer Care - Wastewater $0.6M Utility Planning - Wastewater $0.4M Wastewater Construction $0.4M Infrastructure Delivery Wastewater $0.1M

Note: Totals may not add due to rounding

Total $56.9M

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2025 FINANCIAL PLAN

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Budget needed to achieve results The Wastewater Utility operates under a separate, self-sustaining fund. Any unused revenue generated each year is allocated to accumulated surplus and used to fund future wastewater infrastructure investments. The Wastewater Utility contributes $980 thousand annually to the general fund to support enabling services and offset property taxes.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

— 22,992 3,789 4,657 10,621 42,059

— 23,433 5,012 6,408 29,254 64,108

— — (4,850) (2,972) (29,185) (37,007)

— 1,159 (49) 681 4,381 6,172

— — 3,917 75 19,656 23,648

— 24,592 4,030 4,193 24,106 56,921

4,858 7,591 808 988 18,388 4,700 788 38,121

6,039 7,893 735 1,026 46,799 742 874 64,108

1 (643) (34) — (46,799) 33 (47,442)

257 23 2 (186) 4,500 820 107 5,524

87 430 — — 34,289 (75) — 34,732

6,384 7,704 703 840 38,789 1,520 980 56,921

5.3 39.4 5.3

5.2 44.1 7.4

— — —

— 1.0 —

5.2 45.1 7.4

50.0

56.7

—

1.0

57.7

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Wastewater capital $38.8M Material and other $7.7M

Fees and charges $24.6M Salaries and wages $6.4M Transfers from reserve $24.1M Transfers to reserve $1.5M Other Revenue $4.2M Enabling allocation $1.0M Grant $4.0M Debt service $0.8M Contract services $0.7M

Total $56.9M

Note: Totals may not add due to rounding

133

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Wastewater Collection Operations - Growth Wastewater Treatment Planning Operating and Maintenance Impacts from Capital Requests

2025 26 325 92

2026 26 — 176

2027 26 — 176

2028 26 — 176

2029 26 — 176

Operating Requests Priority 1 Total

443

202

2025

2026

2027

2028

2029

4,637 4,500

5,488 4,250

9,950 3,000

8,707 2,000

8,086 2,000

Total Project 100 2,500 1,000 25,196 41,775 40,000 1,250

100 250 800 6,958 19,794 500 1,250

— 1,000 200 2,981 11,764 500 —

— 1,250 — 380 1,600 1,000 —

— — — — — 10,000 —

— — — — 300 10,000 —

111,821

38,789

26,183

17,180

20,707

20,386

2025 Capital Requests ($ thousands) Priority 1 Description Programs Wastewater Network & Facilities Wastewater Treatment Projects Frost Rd Upgrades (with utilities) Hydro-Vac Disposal Facility KLO Bridge Replacement (with utilities) Sewer Connection Areas Wastewater System Upgrades WWTF Expansion * Wastewater Vacuum Truck and Building Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts included in the request

134

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Wastewater Utility

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Wastewater Collection Operations - Growth Justification:

The City of Kelowna's Wastewater collection system consists of 44 lift stations and over 650 km of pipes that service approximately 95 per cent of the Kelowna population. As the City grows, additional operation and maintenance budget is requested to maintain this 24 hour/day, 365 days/year service level.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

25,700

2026 2027

Utility

Taxation

—

Other Revenue —

—

(25,700)

—

25,700

—

(25,700)

—

25,700

—

(25,700)

—

Service Area: Wastewater Utility

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Wastewater Treatment Planning Justification:

Wastewater treatment protects Okanagan Lake and public health by preventing untreated wastewater from contaminating freshwater sources. To ensure the City is ready for future growth, budget is requested to update the Wastewater Master Plan and to complete a facility asset management assessment on the Brandt's Creek Tradewaste Treatment Facility, which is fully recovered by industry partners. These plans will update the sanitary water model, revising population figures, identifying growth areas for the next 20 years, and listing major projects and costs to ensure wastewater continues to meet regulatory standards and minimize impacts to Okanagan Lake.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

325,000

2026 2027

Utility

Taxation

—

Other Revenue (75,000)

—

(250,000)

—

135

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area:

Wastewater Utility

Priority 1

Title: Wastewater Network & Facilities Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program to ensure reliable wastewater service delivery for City customers connected to the sanitary collection system. Annual items for consideration will renew existing mainlines and lift stations.

Strategic Direction:

Other

Year

Cost

Reserve

2025

4,637,000

(2,830,000)

Service Area:

DCC Reserve (100,000)

Borrow

Grant

—

Wastewater Utility

Other Revenue —

Priority 1

Title: Wastewater Treatment Justification:

Utility

Taxation

(1,707,000)

—

Maintain ONE-TIME PRELIMINARY

Strategic Direction:

Other

Year

Cost

Reserve

2025

4,500,000

(4,450,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

(50,000)

—

136

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area:

Wastewater Utility

Priority 1

Title: Frost Rd Upgrades (with utilities) Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested to realign a section of existing sanitary sewer currently traversing along private property through a narrow right of way; moving it on to the road alignment of the soon to be completed Frost/Chute Lake Connection. A developer for 5000 Frost Road will also contribute a portion of the cost for the removal of the existing sanitary and its respective alignment that favors the development. This work aligns with other Transportation and Stormwater projects on Frost Road.

Strategic Direction:

Other

Year

Cost

Reserve

2025

100,000

(100,000)

Service Area:

Wastewater Utility

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Priority 1

Title: Hydro-Vac Disposal Facility Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for at least one new hydro-vac disposal facility to replace the existing evaporation pond at City yards. The old ponds are undersized to manage the large volumes of effluent from these large trucks. The City's fleet is growing regularly to meet the increasing importance of these machines to the community. Costs will include equipment and permitting.

Strategic Direction:

Other

Year

Cost

Reserve

2025

250,000

(250,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

137

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area:

Wastewater Utility

Priority 1

Title: KLO Bridge Replacement (with utilities) Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for sewer works required to connect the system through the new proposed KLO Bridge at Mission Creek. This will connect the Hall Road connection area by gravity across the bridge.

Strategic Direction:

Other

Year

Cost

Reserve

2025

800,000

(800,000)

Service Area:

Wastewater Utility

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Priority 1

Title: Sewer Connection Areas Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for work on the Belcarra, Central Rutland Sanitary and Chamberlain sewer connection areas. Customers will benefit from a safe, reliable, and environmentally sustainable wastewater collection, treatment and effluent disposal to Okanagan Lake. This work will connect over 550 properties.

Strategic Direction:

Other

Year

Cost

Reserve

2025

6,958,000

(3,041,000)

DCC Reserve —

Borrow

Grant

—

(3,917,000)

Other Revenue —

Utility

Taxation

—

138

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area:

Wastewater Utility

Priority 1

Title: Wastewater System Upgrades Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program to ensure reliable wastewater service delivery for City customers connected to the sanitary collection system. Annual items will upgrade existing or install new mainlines and lift stations including projects required to adequately service existing serviced population and projected growth.

Strategic Direction:

Other

Year

Cost

Reserve

DCC Reserve — (12,035,000)

2025

19,794,000

Service Area:

Wastewater Utility

Borrow

Grant

—

Other Revenue —

Utility

Taxation

(7,759,000)

—

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: WWTF Expansion Justification:

Budget is requested to install an additional treatment train to the existing biological nutrient removal process at the Raymer Wastewater Treatment Facility (WWTF). This expansion is part of the longer term plan to expand the existing site to its ultimate capacity. This additional process needs to address the changing influent loadings due to water conservation from more efficient water fixtures and appliances. The effluent quantity has remained the same for the best part of the last 10 years; however, the loading or concentration of the effluent has increased substantially. The trend suggests that the WWTF will need some help (an additional treatment train) to ensure Regulation is sustainably met in the long term. Preliminary budget estimates including a building expansion to accommodate growing staff.

Strategic Direction:

Other

Year

Cost

Reserve

2025

500,000

(500,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

139

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area:

Wastewater Utility

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Wastewater Vacuum Truck and Building Justification:

Growing and aging Wastewater and Stormwater infrastructure along with supporting other city department critical needs is preventing the Wastewater and Stormwater core work from being completed due to lack of available equipment. Budget is requested to add an additional vacuum truck, an equipment operator crew of two, and the associated costs of building expansion to accommodate the truck. This equipment and crew will allow for current needs of Wastewater and Stormwater to be supported, continue with critical support for other departments and increase resiliency in addressing increase stormwater quality and quantity (flooding) events.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,250,000

—

Operating Impacts: Year Cost

Reserve

2025 2026 2027

92,100 176,300 176,300

— — —

DCC Reserve —

Borrow

Grant

—

DCC Reserve — — —

Borrow

Grant

— — —

Other Revenue —

Other Revenue — — —

Utility

Taxation

(1,250,000)

—

Utility

Taxation

(92,100) (176,300) (176,300)

— — —

140

2025 FINANCIAL PLAN

CITY OF KELOWNA

STORMWATER & FLOOD PROTECTION LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goals & community benefit: •

•

Stormwater is effectively managed without negatively impacting riparian areas, infrastructure, property or Okanagan Lake. The community is resilient and resistant to lake and creek flooding.

Our customers: • • •

Residents Businesses Fish & wildlife

Our partners: • • • • •

Developers Okanagan Basin Water Board First Nations Regulators Private landowners

What we deliver: The City’s infrastructure captures and routes stormwater through minor and major systems to natural features like lakes, creeks, and ponds. Minor systems handle local rainstorm needs, while major systems such as curbed roads, channels, culverts, and storm ponds manage extreme storm events, protecting property and key infrastructure. Major systems also serve as a safety allowance for minor system impacts from climate change. Stormwater quality improvement activities are limited to cleaning and maintaining catch-basins, oil-grit separators, and major culvert outlet ponds. Engineered solutions are relied on in the new development process to reduce pollutants and fine sediment at the source. Studies continue on public stormwater ponds help understand nutrient loads and impacts on natural habitat development. Flood mitigation focuses on the Mill Creek Flood Protection project, with over $50 million allocated until 2027 for flood mitigation, adaptation, and fish passage projects. Operations and maintenance include debris management and situational repairs, with a need to better understand flooding mechanisms and risk. All flood protection design now includes creek and riparian health and support fish spawning. The City operates, maintains, and renews storm infrastructure to protect the public, infrastructure, and the environment. Staff are exploring the creation of a stormwater utility.

Our key objectives: • • • • • •

Safely route rain and snow to our natural systems Improve the quality of water entering Okanagan Lake and its contributing creeks, ponds and channels Protect people, property, key infrastructure and the environment from flooding Sustainable Investment – Assure stormwater asset renewal and operating budgets together are sustainable A sustainable utility that is resilient and well resourced Ensure the stormwater and flood protection sector is funded for the expected Level of Service

Our guiding plans: • • •

Kelowna Official Community Plan Kelowna Water Security & Responsibility Plan (draft) Area Stormwater Basin Plans

141

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Protect Okanagan Lake by minimizing contaminants in creeks Stormwater quality impact rating. Summary weighted average of stormwater quality in nine creeks sampled at 11 locations. Over 150 water quality samples per year. Quality compared to recreational water quality guidelines for dissolved oxygen, E. coli and turbidity using weighted averages based on size of creek. Less than 26 is considered good. 27-43 is fair and greater than 43 is poor.

Performance measure 2 Infrastructure is sustainably funded Identifies the ratio of capital reinvestment (renewal) divided by the current year estimated replacement value of "grey" stormwater infrastructure. Measure is in per cent. 0.5 per cent implies renewal rate would take 200 years to renew existing infrastructure. The current renewal rate is adequate given the relatively young age of the assets, but renewal will need to increase in the longer term as the system ages.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Catch basin servicing Target is 100 per cent of catch basins serviced each year. This level of service is performed to help ensure that the Stormwater systems are clear of debris which can potentially cause flooding situations and ensure functionality of downstream infrastructure and water quality discharging to the environment.

Performance measure 4 Oil grit separator servicing Target is 100 per cent of oil grit separators serviced each year. This level of service is performed to help ensure that the Stormwater systems are clear of debris which can potentially cause water quality concerns.

143

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Climate & Environment

• • •

Base Business

• • • • • • • • •

Mill Creek Flood Protection – Year 4 of the Disaster Mitigation and Adaptation Fund funded plan Diversion outlet works, Parkinson Park upgrades and design of works are included Woodhaven Research Project – UBCO: A commitment to support the 4-year Woodhaven Nature Conservancy Regional Park Community Research Project Stormwater Utility Business Case - Phase 2 works include a public engagement process and detailed rate structure analysis Containment Device Management and Cleaning Stormwater Facility and Dam Operations and Maintenance - New operations and maintenance needs for the Mill Creek diversion Stormwater Genset Operations and Maintenance – operations and maintenance, and parts for new genset at Avonlea storm lift station Improve resiliency and operations and maintenance for four stormwater lift stations Stormwater Operations Resiliency and Reliability Clifton Rd stormwater pond study Investigation to reconfigure two stormwater ponds on Clifton Rd Miscellaneous Drainage Program - Drainage complaint responses

144

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: •

•

Stormwater Infrastructure ◦ New Stormwater Dam and Dike Safety Program – Created an inventory, condition assessment program and prioritization of future improvements and renewals for all registered dams and dikes owned by the City ◦ Mill Creek Flood Protection ▪ Diversion - Complete ▪ Mill outlet to Mission Creek – Riffles (Reach 4) complete ▪ Burne Avenue flood protection – Flood protection components complete ▪ Bridge removals completed (three): Hardy Road (old Rail Trail), pedestrian bridge east of Dilworth Road, Rail spur bridge near Totem Rd ▪ Preliminary designs complete for Lindahl Road/Parkinson Recreation ▪ Coordinated Parkinson Recreation creek mitigation to BSK group for design and completion ▪ Operations inspections and maintenance – Complete ▪ Purchased 2 properties to expand Lindahl Park and Mill Creek mitigation options ◦ Redlich Pond Treatment Islands – Installed; monitoring continues ◦ Initiated conceptual design and site location for a new hydro-excavation (vac-truck effluent) dewatering facility Stormwater Planning, Data and Innovation ◦ Central Stormwater Basing Plan – Near completion ◦ Robert Lake stormwater bypass water license – Application submitted ◦ Rain gauges transferred from Water and Wastewater Supervisory Control and Data Acquisition (SCADA) Systems as part of developing public facing data ◦ New data warehouse construction - Complete ◦ Collected stormwater quality data from over 150 sites across the City. Developing dashboard for 2025 understanding stormwater quality across the City ◦ Stormwater Modeling – HEC-RAS and PCSWMM software ▪ Renewal and new components of Frost and Kildeer Roads to align with new Frost interconnection with Chute Lake Rd ▪ Renew functionality of the Southridge stormwater pond system Stormwater Utility ◦ Phase 1 Stormwater Utility Business Case and Implementation Plan – Complete ◦ Phase 2 Public engagement - complete

Continuous improvements: • • • •

Phase 2 - Stormwater Utility Business Case and Implementation Plan – On-going Development stormwater management plans – Process improvement with Development Services Stormwater planning for transportation planning Stormwater quality reporting in 2024

145

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Stormwater & Flood Protection, $15.1M

Stormwater & Flood Protection Capital $11.3M Utility Stormwater $1.9M Utility Planning $1.1M Water Quality & Customer Care General $0.7M

Note: Totals may not add due to rounding

Total $15.1M

146

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Stormwater & Flood Protection are funded through property taxes. Mill Creek Flood Protection work will continue in 2025, supported by funding from the Disaster Mitigation and Adaptation Fund. Additional capital funding is recommended to come from development cost charges and capital reserves. Annualized Maintaining Enhancing Preliminary $ thousands Actual 2023 Revised 2024 Budget Service Service 2025 Revenue budget: Property tax 4,735 5,427 (2,282) 183 33 3,360 Fees and charges 9 1 — — — 1 Grant 2,107 5,414 (5,414) — 2,832 2,832 Other revenue 600 501 (402) — 100 199 Transfers from reserve 6,385 9,391 (9,331) 3,177 5,502 8,739 Total revenue budget 13,836 20,733 (17,429) 3,360 8,467 15,131 Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

1,054 962 5 — 10,039 — 1,777 13,836

1,067 1,997 75 — 15,395 — 2,199 20,733

— (1,011) (60) — (15,395) — (963) (17,429)

46 14 — — 3,177 — 122 3,360

— 275 — — 8,159 — 33 8,467

1,114 1,276 15 — 11,336 — 1,390 15,131

1.8 7.4 1.6

1.5 7.4 1.4

— — —

1.5 7.4 1.4

10.8

10.3

—

10.3

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type

Transfers from reserve $8.7M

Stormwater & Flood Protection capital $11.3M

Property tax $3.4M

Enabling allocation $1.4M

Grant $2.8M

Material and other $1.3M

Other revenue $0.2M

Salaries and wages $1.1M

Total $15.1M

Note: Totals may not add due to rounding

147

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Stormwater Management - Redeployment Stormwater Utility Business Case - Phase 3 Stormwater Basin Plan - Brandts-Glenmore Basin

2025 — 125 250

2026 — — —

2027 — — —

2028 — — —

2029 — — —

Operating Requests Priority 1 Total

375

—

2025

2026

2027

2028

2029

3,177 219

4,690 360

4,300 500

5,950 400

3,700 500

2025 Capital Requests ($ thousands) Priority 1 Description Programs Stormwater Network & Facilities Stormwater Quality Projects Frost Rd Upgrades (with utilities) Mill Creek Flood Protection Stormwater System Upgrades

Total Project 750 51,395 12,380

750 7,080 110

— 14,800 990

— 10,950 300

— — 2,710

— — 5,470

Capital Request Priority 1 Total

64,525

11,336

20,840

16,050

9,060

9,670

* denotes capital request has operating & maintenance impacts included in the request

148

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Stormwater & Flood Protection

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Stormwater Management - Redeployment Justification:

The Stormwater and Flood Protection service area is responsible for managing the City's stormwater system to protect public and environmental health. Key duties include designing, maintaining, and upgrading infrastructure like storm drains, catch basins, detention ponds, and watercourses to manage runoff, prevent flooding, reduce erosion, and minimize pollutants entering local water bodies. To keep up with city growth, additional budget is required to operate and maintain new piping added to the system and for servicing of rain gauges that enable effective planning and stormwater management. This is funded from redeployment of existing budget.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Stormwater & Flood Protection

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Stormwater Utility Business Case - Phase 3 Justification:

Budget is requested to continue with the stormwater utility business case and implementation plan. Phase 3 (implementation and change management) builds on the work of phase 1 (completed in 2023) and phase 2 (ongoing). Phase 3 works include bylaw development, establishing a city-wide revenue framework, continued public engagement, and change management. Completion of this work will be contingent on planned Council presentations and resolutions in Q4 of 2024 and Q1 of 2025.

Strategic Direction:

Active Financial Management

Year

Cost

Reserve

Borrow

Grant

(125,000)

DCC Reserve —

2025

125,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

149

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Stormwater & Flood Protection

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Stormwater Basin Plan - Brandts-Glenmore Basin Justification:

Budget is requested for a Stormwater Management Plan (SWMP) to be developed for the urbanized area bound by the Glenmore Landfill to the north, Brandts Creek to the South, Okanagan Lake to the West, and Dilworth Mountain to the East. The basin hosts the entirety of Brandts Creek and associated tributaries. The Brandts Creek-Glenmore Area Basin includes three special planning areas identified in the 2040 Official Community Plan - North End Plan, Wilden Area Plan and the Glenmore Landfill Design, Operations and Closure Plan. This SWMP will help identify minor and major system infrastructure projects and water quality improvements to assist with future capital and development planning.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(150,000)

DCC Reserve —

2025

250,000

2026 2027

Utility

Taxation

(100,000)

Other Revenue —

—

150

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Stormwater & Flood Protection

Priority 1

Title: Stormwater Network & Facilities Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for stormwater network and facilities. Annual items for consideration may include, but are not limited to, critical stormwater service requests, major system upgrades from Basin Plans, offsite and oversize (development coordination) and stormwater linear asset renewal.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,177,000

(3,177,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Stormwater & Flood Protection

Other Revenue —

Priority 1

Title: Stormwater Quality Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program for stormwater quality. Annual items for consideration may include, but are not limited to, design and construction of new oil-grit separators and upgrades of critical stormwater management facilities.

Strategic Direction: Year 2025

Other Cost

Reserve

219,000

(219,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

151

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Stormwater & Flood Protection

Priority 1

Title: Frost Rd Upgrades (with utilities) Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested to construct storm network upgrades along Killdeer Road and Frost Road. The project addresses known local drainage issues along the existing and future alignment of Frost Road; and increases the storm system capacity to safely convey the base flows expected downstream of the upgraded Frazer Lake Dam, reconstructed in 2022.

Strategic Direction:

Other

Year

Cost

Reserve

2025

750,000

(750,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Stormwater & Flood Protection

Other Revenue —

Priority 1

Title: Mill Creek Flood Protection Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Funding is requested to continue the seven-year, DMAF-funded flood protection program, which includes several subprojects. These projects include, but are not limited to, flood resiliency upgrades at Kelowna International Airport and capacity upgrades to reduce flood risk throughout the lower reaches of Mill Creek with associated land purchases, all while improving riparian and fish habitat. The Parkinson Recreation Park - Mill Creek Restoration collaboration, aims to enhance flood conveyance, widen the creek channel, and improve riparian habitat, in coordination with the planned redevelopment of the Parkinson Recreation Centre.

Strategic Direction:

Other

Year

Cost

2025

7,080,000

Reserve

DCC Reserve (3,186,000) (1,062,000)

Borrow

Grant

—

(2,832,000)

Other Revenue —

Utility

Taxation

—

152

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Stormwater & Flood Protection

Priority 1

Title: Stormwater System Upgrades Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested to replace the existing stormwater main in Killdeer Rd with a larger diameter stormwater main to support growth in the area and increase system capacity downstream of Frazer Lake. The proposed system upgrade will also address ongoing operational issues related to root intrusion. These works are to be coordinated with planned developments in the neighbourhood, if possible.

Strategic Direction:

Other

Year

Cost

Reserve

2025

110,000

(110,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

153

2025 FINANCIAL PLAN

CITY OF KELOWNA

WATER UTILITY LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: All residents and water users in the City have a safe, affordable, resilient and sustainable supply of highquality drinking water and a reliable supply of water for agriculture.

Our customers (in our service area): • • • •

Residents, businesses and visitors Agricultural community Fire Department Other departments and organizations (including Interior Health Authority)

Our partners: • • • • •

Research partners with the University of British Columbia and the National Benchmarking Initiative Government agencies Glenmore Ellison Improvement District; Rutland Waterworks and Black Mountain Irrigation District, District of Lake Country Engineering firms, contractors, surrounding municipalities Okanagan Indian Band, Westbank First Nations and the Okanagan Nation Alliance

What we deliver: The City of Kelowna thrives in an arid environment with limited water supply. We share water resources with other communities, visitors, wildlife, and the natural environment. We safeguard a secure water supply that relies on public and personal responsibilities towards conservation, and partnerships with neighboring municipalities and First Nations. We respect all interests and needs. • The City Water Utility serves approximately 90,000 customers from water sourced from Okanagan Lake and provides non-potable water for irrigation in Southeast Kelowna from Hydraulic Creek • It delivers up to 139 million litres of water per day through a system of 549 km of buried pipe, five treatment & water pump stations, 20 booster stations, 25 potable reservoirs, 4 non-potable reservoirs, & 86 pressure reducing stations • The Utility operates and maintains 14 dams and five diversions in the upper Hydraulic Creek Watershed to provide water to the agricultural community in Southeast Kelowna • The Utility provides a sustainable investment regime and staff that are highly trained to reliably service the needs of a growing City 24 hours a day and 365 days per year

Our key objectives: • • • • • •

Protect all residents and visitors by supplying a safe supply of drinking water Assure that Okanagan Lake, its creeks, and aquifers are a safe and high-quality supply for all to share and use Ensure resiliency in operations and infrastructure to continue to provide high quality water Maintain and operate a reliable non-potable supply, where available, to agricultural customers Invest, operate, maintain & resource the utility effectively to mitigate service interruptions as they inevitably occur Rates that reflect these objectives, a reasonable Level of Service, and that are competitive with other communities

Our guiding plans: • • • •

Kelowna’s Official Community Plan 20-year Servicing Plan Kelowna’s Water Security and Responsibility Plan (draft) Water Supply Policy #383 and Water System Integration Policy #378

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Measuring performance: Performance measure 1 Water supplied by the Kelowna utility is safe The percentage of water quality tests conducted that meet the Canadian Drinking Water Quality Guidelines (CDWQG). An average of 6000 tests are conducted annually for physical, biological and chemical parameters at our treatment facilities and throughout the water distribution network.

Performance measure 2 We conserve our drinking water resource Per capita potable water production. Annual potable water produced divided by the population served. The goal is to continue to see this number decrease and lead the Okanagan Valley in water use efficiency. The Canadian average water use is shown by the yellow dashed line.

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Performance measure 3 Our water system is reliable Number of main breaks requiring repair each year. Total on potable and non-potable system. Increases in this measure demonstrate the impact of aging infrastructure.

Performance measure 4 Potable system renewal is sustainably funded Capital re-investment (renewal) / replacement value of potable system (%). The long range target should span from 1.2 per cent to 1.5 per cent (67 to 83 year average infrastructure life). The current renewal rate is adequate given the relatively young age of the assets, but renewal will need to increase in the longer term as the system ages.

156

2025 FINANCIAL PLAN

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Performance measure 5 Non-potable systems are sustainably funded Capital reinvestment (renewal) / replacement value of non-potable system (%). The long range target should span from 1.2 per cent to 1.5 per cent (67 to 83 year average infrastructure life). The current renewal rate is adequate given the relatively young age of the assets, but renewal will need to increase in the longer term as the system ages.

157

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CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety Affordable Housing Homelessness Transportation Agriculture Climate & Environment Our People

• • • • • • • •

Digital Transformation

•

Active Financial Management

• •

Base Business

•

Ensure water is available for firefighting Maintain affordable water rates Support drinking water facilities for all Coordinate infrastructure renewal effectively with transportation upgrades Support agriculture producers with a reliable and cost-effective supply system Protect the environment and be good environmental stewards Utility leaders actively pursue and support staff training and development Ensure that all certified staff receive adequate training to maintain Provincial required certifications Use technology as a tool to improve service delivery: ▪ CityWorks is an Asset Management tool that uses software to track time and resources to maintain assets ▪ A non-potable irrigation system dashboard was developed to permit real time access to storage and irrigation use ▪ Continue to build enhanced City data warehouse with more water data including customer water consumption ▪ Evaluate the Glenmore Ellison water system data availability and develop a plan to integrate into the City system at City standards Maintain a financially viable water utility through effective budgeting, expenditures and service delivery Continue to improve use of benchmarking for effective operations through ongoing participation in the Canadian Infrastructure Benchmarking Initiative Water Supply and Treatment: ▪ Upgrade computer controlling systems to allow effective operation of the systems ▪ Ultraviolet Light Disinfection Isolation valves at the three remaining pump stations ▪ Major Equipment Renewal: Install Variable Frequency Drive motors at Pump Stations ▪ Chlorine System Conversion from chlorine gas to hypochlorite – environmental safety ▪ Operational Improvements: Drainage improvements at reservoirs ▪ Renewal of Pressure Reducing Valve stations to renew the asset and eliminate confined space requirements for staff ▪ Non-Potable Supply: Improvements to Hydraulic Creek and McCulloch Spillway ▪ Turtle Lake Remediation: Improvement to both dams to return them to an acceptable functional level Water Distribution: ▪ Hydrant Maintenance and Improvement ▪ Air Valve Replacement Program: Annually replace valves on a prioritized basis ▪ Flushing Program Improvements to optimize program, water quality and service delivery

158

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: •

•

Ultraviolet Light Disinfection Facilities: A significant accomplishment was achieved within the Poplar Point UV facility to mitigate impacts from a UV lamp failure. The work was particularly challenging as the system had to remain functional during construction. This work will continue to be expanded to the remaining stations Turtle Lake Dams: Assessment and mitigation of a potential dam failure was completed in 2023. The lake was safely lowered to reduce the risk of failure and a project to remediate the dam is being planned. Dam assessment and monitoring continued to assist with the rehabilitation of the dams. Design of the remediation is expected to commence late in 2024 and continue into 2025 Summit Reservoir: One additional reservoir was constructed in 2024 to serve the north part of the City

Continuous improvements: •

Staff are committed to continuous improvement and assess our systems and infrastructure to look for improvement opportunities. ◦ Pressure Reducing Valve Condition Assessment and Program Development ◦ Non-Potable System Assessment ◦ Operator Training – Environmental Operators Certification Program, BC Water & Waste Association ◦ Asset Management training ◦ CityWorks development and implementation ◦ Risk Assessment and contingency planning for critical assets and systems (telemetry and communications) ◦ Council approval and implementation of a holistic Water Security and Responsibility Plan ◦ Interconnectivity planning with Improvement Districts

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Water Utility, $38.4M

Water Capital $19.6M Water Operations $8.1M Pumpstations - Water $5.9M Utility - Water $1.8M Water Quality & Customer Care Water $1.5M Water Construction $1.2M Utility Planning - Water $0.3M Infrastructure Delivery - Water $0.1M

Note: Totals may not add due to rounding

Total $38.4M

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results The Water Utility operates under a separate, self-sustaining fund. Any unused revenue generated each year is allocated to accumulated surplus and funds future water infrastructure investments. Revenues collected through the Water Quality Enhancement fee are kept in a separate reserve and exclusively used to fund water quality enhancement projects. The Water Utility contributes $865 thousand annually to the general fund to support enabling services and offset property taxes. $ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

— 19,464 8 1,981 8,083 29,537

— 20,866 2,992 3,843 8,171 35,872

— (150) (2,992) (63) (8,000) (11,204)

— (395) — 463 4,359 4,427

— — — — 9,347 9,347

— 20,321 — 4,243 13,877 38,442

4,623 6,712 123 647 7,125 6,610 738 26,578

5,339 8,270 191 743 16,548 4,050 732 35,872

— (1,231) 39 — (16,548) 33 — (17,707)

354 (40) 2 (1) 10,261 60 133 10,769

49 112 — — 9,347 — — 9,508

5,741 7,111 232 741 19,608 4,144 865 38,442

4.9 39.1 4.6

4.3 43.9 4.5

— — —

— 1.3 —

— (0.1) 0.5

4.3 45.1 5.0

48.6

52.7

—

1.3

0.4

54.4

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Water capital $19.6M Material and other $7.1M

Fees and charges $20.3M Transfers from reserve $13.9M Other Revenue $4.2M

Salaries and wages $5.7M Transfers to reserve $4.1M Enabling allocation $0.9M Debt service $0.7M Contract services $0.2M

Total $38.4M

Note: Totals may not add due to rounding

160

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Water Operations - Growth Water Efficiency Program Enhancements Water Distribution Operations Enhancements Redeployment

2025 153 61 100

2026 272 119 100

2027 272 119 100

2028 272 119 100

2029 272 119 100

Operating Requests Priority 1 Total

314

491

2025

2026

2027

2028

2029

1,406 7,570 1,285

2,640 6,100 400

2,740 6,350 —

3,240 8,250 —

3,240 7,900 —

Total Project 200 5,150 2,000 5,700 52,306

200 3,850 2,000 400 2,897

— 600 — 2,000 5,450

— — — 3,300 10,500

— — — — 7,450

— — — — 10,000

65,356

19,608

17,190

22,890

18,940

21,140

2025 Capital Requests ($ thousands) Priority 1 Description Programs Non-Potable Water Network & Facilities Potable Water Network & Facilities Water Treatment Projects Frost Rd Upgrades (with utilities) GEID Integration KLO Bridge Replacement (with utilities) Non-Potable System Upgrades Potable Water System Upgrades Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts included in the request

161

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Water Utility

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Water Operations - Growth Justification:

Budget is requested to maintain established service levels and continue to meet regulatory requirements for water operations in response to growth and infrastructure aging. This includes an additional Instrumentation/Electrical Technician position to operate, maintain, and repair the water monitoring and control systems that manage over 21,000 data points at 216 sites, and a Water Supply Operator III position.

Strategic Direction: Year

Other Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

153,200

2026 2027

Utility

Taxation

—

Other Revenue —

—

(153,200)

—

271,700

—

(271,700)

—

271,700

—

(271,700)

—

Service Area: Water Utility

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Water Efficiency Program Enhancements Justification:

Kelowna has one of the highest rates of water use per person in Canada. To enhance the City's water conservation program and support City Council's priority of addressing Climate and Environmental change, budget is requested for a Water Efficiency Coordinator. This specialized position will help the department to implement water conservation and efficiency programs, monitor water usage and leakage, and educate utility customers, agricultural producers, and staff on best practices with the goal of reducing water usage in the community.

Strategic Direction: Year

Climate & Environment

Cost

Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

60,900

—

(60,900)

—

2026

119,200

—

(119,200)

—

2027

119,200

—

(119,200)

—

162

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Water Utility

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Water Distribution Operations Enhancements - Redeployment Justification:

Budget is requested to develop programs to improve worker safety, operational efficiencies, and fire hydrant protection, which are vital for maintaining the water distribution system. These initiatives include upgrading air valves to eliminate confined spaces, adding automatic flushers to reduce manual flushing, and protecting or repairing hydrants. These measures will help ensure the reliable operation and maintenance of the City's water infrastructure as well as increase worker safety. This $129k budget is partially funded from a redeployment of $29k existing budget.

Strategic Direction: Year

Cost

Agriculture Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

100,000

—

(100,000)

—

2026

100,000

—

(100,000)

—

2027

100,000

—

(100,000)

—

163

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Water Utility

Priority 1

Title: Non-Potable Water Network & Facilities Justification:

Maintain ONE-TIME PRELIMINARY

Strategic Direction:

Agriculture

Year

Cost

Reserve

2025

1,406,000

(1,406,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Water Utility

Other Revenue —

Priority 1

Title: Potable Water Network & Facilities Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program to ensure reliable safe drinking water service delivery and fire protection for City customers connected to the potable system. Annual items for consideration will renew existing mainlines, hydrants, pump stations, reservoirs, and pressure reducing valves (PRVs).

Strategic Direction:

Other

Year

Cost

Reserve

2025

7,570,000

(1,739,300)

DCC Reserve (100,000)

Borrow

Grant

—

Other Revenue (150,000)

Utility

Taxation

(5,580,700)

—

164

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Water Utility

Priority 1

Title: Water Treatment Justification:

Maintain ONE-TIME PRELIMINARY

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,285,000

(1,285,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Water Utility

Other Revenue —

Priority 1

Title: Frost Rd Upgrades (with utilities) Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to supplement a transportation capital project to connect Frost Road with Chute Lake Rd. The new mainline will be installed within the Frost roundabout and extension, and decommission or relocate aging watermain and blow offs. Hydrants will be added for more fire flow coverage.

Strategic Direction:

Other

Year

Cost

Reserve

2025

200,000

(200,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

165

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Water Utility

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: GEID Integration Justification:

Budget is requested for this project to ensure reliable water service delivery and fire protection for all customers connected to the Glenmore Ellison Improvement District (GEID) water system. This work was previously identified by GEID and recognized here as part the City water utility integration process.

Strategic Direction: Year 2025

Cost 3,850,000

Other Reserve

DCC Reserve

(3,850,000)

Borrow —

Grant —

Other Revenue —

Service Area: Water Utility

Utility —

Taxation —

Priority 1

—

Enhance ONE-TIME PRELIMINARY

Title: KLO Bridge Replacement (with utilities) Justification:

Budget is requested for the 2025 component of the Water System Resiliency and Interconnection Program that was started in 2024 for design to coordinate with the KLO Bridge Replacement project through Transportation. The project completes the interconnection of the potable system in South East Kelowna Irrigation District (SEKID). The project includes a connecting water main, a pressure reducing valve station and the future site of a booster station to supply water uphill to Dall Reservoir and provide resiliency to Hall Rd and SEKID users.

Strategic Direction: Year 2025

Cost 2,000,000

Other Reserve (2,000,000)

DCC Reserve

Borrow —

Grant —

Other Revenue —

Utility —

Taxation —

—

166

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Water Utility

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Non-Potable System Upgrades Justification:

Budget is requested for this annual program to ensure reliable irrigation water service delivery and fire protection for City customers connected to the non-potable system. Annual items for consideration will upgrade existing or install new mainlines, hydrants, pump stations, reservoirs, and pressure reducing valves (PRVs). These upgrades address gaps in resiliency that threaten critical operational and regulatory needs by adding operational capacity. It assures water can be delivered effectively during the critical peak summer periods when vineyards, orchards and market crops require that resilient water supply.

Strategic Direction: Year 2025

Cost 400,000

Other Reserve

DCC Reserve

(400,000)

Borrow —

Grant —

Other Revenue —

Service Area: Water Utility

Utility —

Taxation —

Priority 1

—

Enhance ONE-TIME PRELIMINARY

Title: Potable Water System Upgrades Justification:

Budget is requested for this annual program to ensure reliable safe drinking water service delivery and fire protection for City customers connected to the potable system. Annual items will upgrade existing or install new mainlines, hydrants, pump stations, reservoirs, and pressure reducing valves (PRVs). These upgrades increase level of service to meet Bylaw 7900 requirements for commercial and multi-family buildings.

Strategic Direction: Year 2025

Cost 2,897,000

Other Reserve

DCC Borrow Reserve (1,472,000) (1,425,000)

Grant —

Other Revenue —

Utility —

Taxation —

—

167

2025 FINANCIAL PLAN

CITY OF KELOWNA

SOLID WASTE & LANDFILL LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: Our goal is to plan, design, manage, operate, and maintain the essential services of the Glenmore Landfill as well as deliver efficient, cost-effective waste collection services for over 42,000 homes in the City. Collection and safe disposal of recyclables, compostables, and solid waste is critical in our community. For disposal services, we proudly serve the communities in the Regional District of Central Okanagan and Big White. The current fill plan allows us to extend the life of the Landfill rather than looking at new landfill locations or shipping waste out of the region for disposal – costly alternatives – and provides flexibility for the future.

Our customers: • • • • • •

Residents and citizens Commercial haulers Construction companies Private developers Other City departments Other Municipal Governments

Our partners: We work with the BC Ministry of Environment and Climate Change Strategy, WorksafeBC, the University of British Columbia, the Regional District of Central Okanagan and member municipalities, utility companies, our collection contractor, and waste reduction officers to provide sustainable services.

What we deliver: We provide garbage, recycling and yard waste collection services to over 42,000 households in the City. At the landfill, we offer a variety of disposal options on site including recycling, organic materials, and household/commercial waste in our solid waste disposal facility for residents within the Regional District of Central Okanagan. We produce and sell OgoGrow and GlenGrow compost as soil amendments. We also manage landfill gas as landfills are being recognized as a source of valuable energy, providing renewable natural gas for 700 homes through FortisBC. Landfill operations are 7 days per week, 362 days per year, to allow residents and haulers to access waste management on their preferred schedules.

Our key objectives: •

• • •

Protect the environment through delivery of safe and efficient waste processing and disposal services at the City’s waste management facilities by complying with regulatory requirements and continually improving assets and operations in response to service demand Provide safe and reliable collection services for residential curbside programs by adjusting to demand, continually improving service performance, investing in technology and responding to growth Continue supporting the community to reduce and manage their waste responsibly by working with regional partners and providing community-wide waste management programs Enable Kelowna to move towards zero waste and a more circular economy by improving access to and participation in waste reduction and diversion through communications, education, enforcement and engagement with customers

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Our guiding plans: • • •

2020 Regional District of Central Okanagan Solid Waste Management Plan 2023 Glenmore Landfill Design, Operations and Closure Plan 10-Year Capital Plan

Measuring performance: Performance measure 1 Regional per capita waste landfilled The Landfill provides regional waste management services for the entire Central Okanagan. Measure is the tonnage of waste buried divided by the estimated population of the Regional District of Central Okanagan and Big White (total service area). Waste generation rates around natural disasters are variable and may increase disposal for short terms. Demolition and construction wastes contribute 35 – 42 per cent of the wastes increasing waste disposal variability depending on rate of development. The goal is to minimize disposal of waste.

Performance measure 2 Curbside waste collected per household Curbside waste collected in kg /Kelowna household serviced (residential curbside cart program). The City works with the Regional District of Central Okanagan to implement additional waste reduction and diversion activities.

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2025 FINANCIAL PLAN

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Performance measure 3 Reduce GHG by using or destroying landfill gas Volume of landfill gas managed by landfill flare or converted to Renewable Natural Gas by Fortis (millions m3). Wildfires damaged the landfill gas collection system in 2023 resulting in decreased recovery while damage is repaired through 2024. Total volumes of landfill gas collected should increase over time as the system continues to grow with the Landfill.

Performance measure 4 Organics diversion Tonnage of organic material including yard waste, branches, clean wood, logs and stumps managed at the Landfill (tonnes). The Landfill diverts approximately 30 per cent of the wastes received at the site, and this waste diversion saves landfill airspace, provides waste based raw materials, and compost that provides nutrients to the region.

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2025 FINANCIAL PLAN

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Performance measure 5 Curbside program is cost effective Cost per property serviced for residential garbage, yard waste and recycling collection and management. Rate adjustments are primarily due to increased hauling costs and cart replacement costs.

Performance Measure 6 Garbage tipping fee per tonne Garbage tipping fee ($ per tonne). Rates are reviewed and set based on a 25-year Financial Model to ensure that the landfill site is sustainably funded for future capital work and closure.

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2025 Activities by priority: Priorities

Activities

Crime & Safety Affordable Housing

• •

Homelessness

•

Agriculture

•

Climate & Environment

• •

Our People

• • • •

Digital Transformation

Active Financial Management Base Business

• • • • •

Public and staff safety is a paramount concern of all waste management sites Efficient and cost-effective waste management allows for lower costs to residents as well as lower site preparation and building costs Continue to mitigate public unsightliness by providing waste and debris disposal in support of Community Safety Compost operations continue to provide cost effective soil amendments and organic matter back to agriculture to offset chemical fertilizers Provide continued environmental stewardship and minimize GHG emissions Managing water, air, and land-based pollution with proactive and sound waste management techniques Continue to promote staff development and opportunities to learn Working as One Team by assisting other City departments Refine “Oscar”, the online chatbot assistant Implementation of online appointment system for receiving selected wastes to streamline processes Review of rates and costs ensure that waste management is sustainably funded for possible rate adjustment in 2026 Complete Area 3 Liner installation, and begin to utilize this area. Continue ancillary work around new Aerated Static Pile composting facility Complete final design and begin construction of the Surface Water Bypass to ensure minimize stormwater at the landfill site Expand operations to manage additional waste and recoverable materials from Infill Housing activities

2024 Key accomplishments: • • • • •

Worked with Water, Roads, Parks and the Cemetery on a Civic Operations staff rotation to provide cross training and learning opportunities Completed the first phase of construction for the Aerated Static Pile compost system for Glengrow operations Area 3 landfill liner construction and Sliver Fill projects in 2024 and planned filling expansions in 2025 Completed site landfill gas repairs and remedial earthworks to mitigate the damage from the 2023 McDougall Creek wildfires Implemented majority of recommendations from 2023 Design, Operations and Closure Plans and ancillary reports

Continuous improvements: • • • • •

Design and RFP underway for end-of-life flare replacement Studies for leachate pre-treatment and potential facility construction in 2026 Working with FortisBC to expand and better integrate their renewable natural gas system into landfill operations Planning for next phases of the Aerated Static Pile compost system Improvements to site by expanding waste recovery operations, preparation of structural fill for capital projects, and composting operations

172

2025 FINANCIAL PLAN

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Budget overview: 2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Solid Waste & Landfill, $38.8M

Solid Waste $27.5M Solid Waste & Landfill Capital $10.9M Solid Waste Management $0.5M

Note: Totals may not add due to rounding Total $38.8M

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2025 FINANCIAL PLAN

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Budget needed to achieve results The Solid Waste & Landfill service is a self-sustaining operation within the general fund. Any unused revenue generated each year is allocated to a reserve dedicated to future infrastructure investments. Solid Waste & Landfill operations contributes $200k annually to offset property taxation funds required for enabling and other community services such as Transportation and Parks. Annualized Maintaining Enhancing Preliminary $ thousands Actual 2023 Revised 2024 Budget Service Service 2025 Revenue budget: Property tax 4,327 (200) — — — (200) Fees and charges 24,911 24,818 — 1,791 — 26,609 Grant — — — — — — Other revenue 1,167 1,601 (43) 3 — 1,561 Transfers from reserve 10,125 22,362 (22,354) 5,392 5,450 10,850 Total revenue budget 40,530 48,581 (22,397) 7,185 5,450 38,819 Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

3,423 825 6,836 — 14,964 13,740 743 40,530

3,403 6,603 6,317 — 22,203 9,285 770 48,581

— (189) — — (22,203) (6) — (22,397)

196 61 90 — 5,400 1,325 114 7,185

— 100 — — 5,450 (100) — 5,450

3,598 6,575 6,407 — 10,850 10,505 884 38,819

3.8 24.7 4.2

3.9 23.4 4.3

— — —

— 0.5 —

— — —

3.9 23.9 4.3

32.7

31.6

—

0.5

—

32.1

Note: Totals may not add due to rounding The difference between the two graphs below is the $200k surplus earned by this service area that is used to offset taxation funds required for other community services areas and infrastructure such as Parks, Sports & Recreation, and Community Safety.

Funding strategy

Expenditure by type Solid Waste & Landfill capital $10.9M Transfers to reserve $10.5M

Fees and charges $26.6M Material and other $6.6M Transfers from reserve $10.9M Contract services $6.4M Other revenue $1.6M Salaries and wages $3.6M Enabling allocation $0.9M

Total $39.0M

Total $38.8M

Note: Totals may not add due to rounding

174

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Landfill Operations Maintenance Operating and Maintenance Impacts from Capital Requests

2025 140 51

2026 — 101

2027 — 101

2028 — 101

2029 — 101

Operating Requests Priority 1 Total

191

101

2025

2026

2027

2028

2029

1,150 4,250

1,050 4,200

450 4,150

450 1,885

450 1,860

Total Project 9,200 9,850

700 4,750

3,000 —

3,700 350

500 4,750

1,300 —

19,050

10,850

8,250

8,650

7,585

3,610

2025 Capital Requests ($ thousands) Priority 1 Description Programs * Solid Waste Equipment Solid Waste Infrastructure & Facilities Projects Composting System Expansion Surface Water Bypass Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts linked to this request

175

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Solid Waste & Landfill

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Landfill Operations Maintenance Justification:

The Landfill offers various disposal options including recycling and household/commercial waste for residents within the Central Okanagan Regional District and operates 7 days a week. To maintain this level of service, annual maintenance is required. Budget is requested for two projects in 2025. The first is to retrofit piping and relocate the existing leachate pumps from inside the current lift station to an above ground kiosk, improving staff safety and access to the pumps. The second is to perform sandblasting and repainting of the landfill scale vehicle decks and railings to maintain and extend the life of this asset.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(140,000)

DCC Reserve —

2025

140,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

176

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Solid Waste & Landfill

Priority 1

Title: Solid Waste Equipment Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for solid waste equipment. Annual items for consideration may include, but are not limited to, replacing end of life equipment, purchasing new equipment to meet future demands and advances in technology and the purchase of automated collection curbside carts. Included in this request is the addition of a new loader and Equipment Operator IV to respond to increased waste production and diversion activities at the landfill. This new loader and staff will primarily work with material handling for managing increased drywall recycling, scrap metal sorting and concrete/asphalt storage and sales.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,150,000

(1,150,000)

Operating Impacts: Year 2025 2026 2027

Cost

Reserve

50,500 100,900 100,900

(50,500) (100,900) (100,900)

DCC Reserve —

Borrow

Grant

—

DCC Reserve — — —

Borrow

Grant

— — —

Service Area: Solid Waste & Landfill

Other Revenue —

Utility

Taxation

—

Other Revenue — — —

Utility

Taxation

— — —

Priority 1

Title: Solid Waste Infrastructure & Facilities Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for solid waste infrastructure and facilities. Annual items for consideration may include, but are not limited to, site works and investigations, progressive closure and landfill gas and leachate recirculation laterals.

Strategic Direction: Year 2025

Other Cost

Reserve

4,250,000

(4,250,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

177

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Solid Waste & Landfill

Priority 1

Title: Composting System Expansion Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for construction of the second Primary Area Static Pile composting system. The project includes all design, servicing, handling area and completion of the neighbouring inorganics area.

Strategic Direction:

Other

Year

Cost

Reserve

2025

700,000

(700,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Solid Waste & Landfill

Other Revenue —

Priority 1

Title: Surface Water Bypass Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for a multi-phase stormwater bypass system, which is currently designed and awaiting Ministerial approvals for new water licenses. Phase one of this project includes a 2.6-km piped bypass from the Glenmore Landfill to Brandt's Creek. This project is included in the Design, Operation, and Closure Plan for the Glenmore Landfill. As an additional project component, the piped bypass provides an opportunity to address historical flood challenges in the Robert Lake Basin. Phase two is a continuation of the work from Phase one, and involves landfill capital improvements to capture stormwater within an ever-changing facility. This includes collecting subsurface flow from McKinley seepage and local groundwater conditions. Schedule is contingent on provincial permitting and the acquisition of a statutory right of way.

Strategic Direction:

Other

Year

Cost

Reserve

2025

4,750,000

(4,750,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

178

2025 FINANCIAL PLAN

CITY OF KELOWNA

TRANSPORTATION LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: Kelowna aims to become a city where people and places are conveniently connected by diverse transportation options, which is the vision in our 2040 Transportation Master Plan (TMP). We are working to keep Kelowna moving as our community grows by doubling transit ridership, quadrupling trips by bike, and reducing per capita distance driven 20 per cent by 2040. Recognizing that transportation impacts many aspects of life in Kelowna, the TMP identified the following 12 goals: improving travel choices, optimize travel times, enhance travel affordability, foster a growing economy, enhance urban centres, be innovative and flexible, improve safety, protect the environment, ensure value for public investment, improve health, promote inclusive transportation, and support livable communities. More detailed information on progress towards the City’s transportation goals is published in the 2040 Transportation Master Plan - Progress report.

Our customers: Our customers are all who live, work, and play in Kelowna.

Our partners: We work with our residents, community organizations, and other levels of government to ensure our transportation network keeps up with our growing community.

What we deliver: We help prepare transportation projects across all modes for delivery, from strategic planning through final design. We develop transportation plans, policies, corridor studies, and design capital projects to help develop our multi-modal transportation system. We also maintain over 800 kilometres of streets that accommodate over 300,000 trips per day, operate and maintain the transportation network, deliver traffic calming, transportation demand management, regional transportation education and encouragement programs, and our shared micromobility program. We monitor our progress toward meeting our transportation targets and goals and report out annually.

Our key objectives: •

Deliver and maintain a high-quality transportation system that keeps Kelowna moving, as we grow.

Our guiding plans: • • • • •

Imagine Kelowna 2040 Official Community Plan 2040 Transportation Master Plan Central Okanagan Regional Transportation Plan Pedestrian/Bicycle Master Plan

179

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Traffic safety Traffic collisions have significant impacts on people’s lives. A notable drop in collisions resulting in injury or fatality (injury collisions) was measured in previous years between 11.3 injury collisions per 1,000 residents in 2021 to 9.2 injury collisions per 1,000 residents in 2023 (ICBC data). A total of 9.6 injury collisions per 1,000 residents is estimated for 2024 and 9.4 for 2025. In 2024 we started developing a Safe Mobility Action Plan that will identify key actions to reduce the number of injuries and fatalities on our roadways. The Action Plan will look at safety related to all modes of travel and involve working with community partners to improve safety outcomes.

Performance measure 2 Traffic delays Reliable travel times are important for our quality of life. In 2020, we began tracking travel times on 85 routes between key destinations. We defined a moderate delay as 50 per cent longer than the overnight travel time. Moderate delays are three to six minutes for most routes. In 2022 and 2023, 47 per cent of the routes we tracked had moderate or greater delays in the afternoon peak. In 2024, 48 per cent of routes had delays. Based on this mild upward trend, 49 per cent of routes are expected to have delays in 2025.

180

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Access to sidewalks Many streets in the Core Area were built without sidewalks. A lack of safe and accessible sidewalks is a barrier for people to walk. The long-term goal is to have a sidewalk on both sides of major roads, and at least on one side of quieter neighbourhood streets, with a target of 80 per cent completion by 2065. By this standard, the sidewalk completeness in the Core Area is forecasted to be 62.7 per cent in 2025. We are prioritizing locations to fill the sidewalk gaps in the Core Area based on busy roads, near parks, and around schools. 2025 will also be the first year of the updated Neighbourhood Street Urbanization Program, a new funding and delivery model to accelerate progress on adding sidewalks as neighbourhoods grow.

Performance measure 4 Access to bike routes Biking is an affordable alternative to driving. Being close to primary bike routes like protected bike lanes and multi-use pathways makes it easier for households to live car-free or car-light. Roughly 29 per cent of all residents are within 400m of the primary bike network. This is an increase from 27 per cent the previous year and 22 per cent in 2022. According to the 2040 Transportation Master Plan, the target is for 50 per cent of residents to be within 400m of the primary bike network by the year 2040. Looking ahead, the Rutland Neighbourhood Bikeway project is expected to increase this share to 30 per cent of residents.

181

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 5 Pavement quality Keeping roads in good condition is important for safety and goods movement. Timely preventative maintenance can avoid more costly repairs in the future. The pavement condition index (PCI) is a score between 0 and 100 that indicates the general condition of roads in Kelowna. An average score of 60 or higher is a common target for Canadian municipalities. A rating between 40-60 is considered Fair, and between 60-80 is considered Good. Kelowna’s estimated PCI for 2024 is 67, up from 66 in 2023. We are currently working on a 10-year forecast to understand how pavement condition could change based on different investment and action strategies.

Performance measure 6 Winter maintenance Clearing snow and ice from roads, pathways, and bus stops keeps them functional and safe. Standards for snow clearing are set by Council Policy #332 with top priority streets being cleared within eight hours of an end of a storm. These timelines were met 93 per cent of the time in 2022, and 95 per cent of the time in 2023 (although this was a light winter, making achieving standards atypical). The estimated performance in 2024 is 95 per cent with a target of 95 per cent in 2025. Unexpected and hard to predict weather patterns can cause volatility in winter road maintenance and make this performance measure a challenge to track.

182

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priorities: Priorities

Activities

Transportation

• • • • • • • •

• • • • Climate & Environment Our People

• •

Digital Transformation

• • •

Active Financial Management

• • •

•

Continue planning and design for key road projects (Highway 33/Clement Extension, Commonwealth Rd, and Burtch Rd) Construction of Frost Rd and Chute Lake Rd Roundabout Construction of Glenmore Rd upgrades in conjunction with wastewater trunk connection Replacement of the KLO Bridge over Mission Creek, including a new roundabout at KLO and Spiers Rd Improvements to Stewart Rd West, including upgrades to the intersections of Stewart/Bedford and Bedford/Swamp/Casorso Continue to advance the progressive design-build of Hollywood Rd and Burtch Rd extension Continue reviewing projects which can be added to the Transportation Accelerator Program (TAP) Highway 97 Strategic Corridor Review with the Ministry of Transportation and Infrastructure (MoTI) to continue the next steps of planning and protecting for the long-term goal of dedicated transit lanes on Highway 97 in Kelowna Expand the bike network with design for the Bertram Active Transportation Corridor and construction of the first section of the Rutland Neighborhood Bikeway Continued development and implementation of a Transportation Safety Strategy (Safe Mobility Action Plan) Continued development of a Transportation Accessibility Strategy Urbanization of three local streets as part of the new Neighbourhood Street Urbanization Program Continuation of Employer Commute Trip Reduction Program Pilot Focus on training and professional development to provide opportunities to learn and grow Continue the Travel Demand Model Update to allow for enhanced decision making Continued tracking of travel time using cloud-based data Continue optimizing our existing roads by piloting innovative traffic detection technology at intersections On-going review of the 10-Year Capital Plan to ensure alignment of financial resources with corporate priorities Continue delivering select projects with City resources to control time, cost, and quality where feasible Continuation of the Transportation Accelerator Program to deliver more projects faster, optimizing the use of Development Cost Charges (DCCs), reducing the impact of inflation and maximizing the purchasing power of our reserves Continued pursuit of grants

183

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: •

• • •

Expanded the bike network with construction of the Sutherland Active Transportation Corridor (ATC) (Ethel to Burtch), Glenmore ATC (Dallas to Yates), Leckie ATC (Mission Creek to Rail Trail). Upgraded bike lanes on Springfield and Burtch in coordination with repaving Completion of the Bertram Overpass, connecting Downtown with Central Green across Harvey. The overpass will form part of the future Bertram ATC, planned for construction in 2025/26 New traffic signals at Frost Rd/Gordon Dr and Clifton/Rio Dr. Safety improvements at the intersections of Spall/ Springfield and Richter/KLO Installed seven new crosswalk rectangular rapid flashing beacons (RRFBs) and completed crosswalk designs for four more projects planned for 2025. Constructed three sidewalk improvement projects and added crosswalk curb extensions through the safe routes to school program Delivered seven traffic calming projects. Completed consultation and design for the Hollydell Neighbourhood Traffic Calming Project with delivery planned for 2025 Relocation and upgrades to utilities in preparation for the replacement of the KLO bridge over Mission Creek in 2025 Pavement resurfacing on 16km of roadways, including sections of Gordon Dr, Springfield, Glenmore, Sutherland, and Leckie roads. Repaving in coordination with other capital and utility projects and crack sealing on 12km of roads to extend the lifespan of existing pavement

Continuous improvements: • • • •

Optimization of our existing roads by piloting innovative traffic detection technology at intersections Initiated the Transportation Accelerator Program to deliver more projects faster Delivered select projects with City resources to control time, cost and quality Continued tracking of travel times using cloud-based data

Budget overview:

2025Total Expenditure Budget Breakdown

2025 Total Expenditure Budget, $838.9M

Transportation, $108.4M Transportation Capital $81.0M Roads $14.3M Traffic Signals & Systems $4.8M Traffic Operations $3.6M Transportation Engineering $2.0M Westside Gravel Pit $1.0M Strategic Transportation Planning $0.7M Integrated Transportation $0.7M Roadways Operations $0.3M

Note: Totals may not add due to rounding

Total $108.4M

184

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Transportation is funded through property taxes. Revenues earned through road permits and gravel sales help to offset the impact on taxpayers. The 2025 accelerated capital program is funded through development cost charges, capital reserves, and taxation. Annualized Maintaining Enhancing Preliminary $ thousands Actual 2023 Revised 2024 Budget Service Service 2025 Revenue budget: Property tax 24,756 26,912 (3,079) 4,458 3,860 32,152 Fees and charges 3,032 3,960 (2,518) 546 268 2,257 Grant 1,470 796 (796) — — — Other revenue 5,384 1,317 (805) 12 400 924 Transfers from reserve 23,538 48,748 (48,673) 7,603 65,416 73,094 Total revenue budget 58,180 81,733 (55,870) 12,620 69,944 108,427 Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

7,051 8,068 443 — 34,501 676 7,441 58,180

7,979 8,487 836 — 55,313 503 8,615 81,733

135 (871) (40) — (55,313) — 220 (55,870)

310 159 (15) — 11,523 (228) 871 12,620

216 61 — — 69,429 — 238 69,944

8,639 7,836 781 — 80,952 275 9,944 108,427

8.4 57.0 8.7

11.2 59.0 8.5

0.4 0.9 —

— (0.1) —

— 2.2 —

11.6 62.0 8.5

74.1

78.7

1.3

(0.1)

2.2

82.1

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Transportation capital $81.0M

Transfers from reserve $73.1M

Enabling allocation $9.9M

Property tax $32.2M

Salaries and wages $8.6M

Fees and charges $2.3M

Material and other $7.8M

Other Revenue $0.9M

Contract services $0.8M Transfers to reserve $0.3M

Total $108.4M

Note: Totals may not add due to rounding

185

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Gravel Operations Enhancements Permitting Operations Service Enhancements Crack Sealing Pavement Safe Mobility Action Plan Implementation Operating and Maintenance Impacts from Capital Requests

2025 46 172 125 75 50

2026 92 172 125 — 50

2027 92 172 125 — 50

2028 92 172 125 — 50

2029 92 172 125 — 50

Operating Requests Priority 1 Total

468

439

2025

2026

2027

2028

2029

2,408 450 8,665

3,005 540 11,696

2,785 1,140 12,788

2,982 1,270 14,932

3,084 1,270 16,517

Total Project 8,489 2,000 10,945

1,620 1,000 2,472

6,869 1,000 2,150

— — 6,323

— — —

58,079 13,229

12,355 313

29,939 1,474

5,811 11,443

210 —

— —

5,480 42,883 135,300 34,612 18,364 29,272 3,290

5,043 10,425 2,800 5,667 16,564 4,690 400

— 2,470 3,000 13,600 1,800 8,920 2,537

— 5,619 4,500 3,750 — 8,834 —

— 3,700 75,000 575 — — —

— — 45,000 3,515 — — —

9,842 51,534 5,150 428,469

800 130 5,150 80,952

— 5,150 — 94,150

— — — 62,993

280 4,038 — 102,986

4,632 4,800 — 78,818

2025 Capital Requests ($ thousands) Priority 1 Description Programs Active Transportation Bridges * Road Network Projects Active Transportation - Bertram St Active Transportation - Rutland Neighbourhood Intersections - Springfield & Dilworth Improvements Roads - Burtch Rd Upgrades Roads - Commonwealth Rd (Hwy 97 - Jim Bailey) Upgrades Roads - Frost Rd Upgrades (with utilities) Roads - Glenmore Rd Upgrades Roads - Highway 33 to Clement Extension Roads - Hollywood Rd N Upgrades Roads - KLO Bridge Replacement (with utilities) Roads - Lakeshore Rd Upgrades Roads - Parkinson Recreation Centre Road Improvements Roads - Stewart Rd Upgrades Roads - Sutherland Rd Upgrades Roads - Neighbourhood Street Urbanization Capital Request Priority 1 Total

* denotes capital request has operating & maintenance impacts linked to this request

186

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transportation

Priority 1

Title: Gravel Operations Enhancements Justification:

Enhance ON-GOING PRELIMINARY

The City of Kelowna provides essential gravel operations services to both external and internal customers. In 2024, a pilot program was launched aimed at enhancing service delivery for external clients and supplying aggregate for internal City projects. This initiative has resulted in significant benefits, including increased sales, faster project completions, and substantial cost savings by utilizing gravel sourced directly from the internal facility. To build on this success, budget is requested for a permanent Equipment Operator IV position to ensure the continued efficiency and effectiveness of the operations.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

46,400

2026 2027

Utility

Taxation

—

Other Revenue (46,400)

—

92,300

—

(92,300)

—

92,300

—

(92,300)

—

Service Area: Transportation

Priority 1

Title: Permitting Operations Service Enhancements Justification:

Enhance ON-GOING PRELIMINARY

The City's Permitting Operations have grown significantly in volume and complexity, requiring a stable and effective Traffic Programmer workforce. A full-time Traffic Programmer position was established as a 3-year term in 2021. It has proven highly effective in generating substantial revenue and achieving significant cost avoidance by preventing damages to City infrastructure. An 8-month term position was introduced in 2024 to manage increasing workload. Budget is requested to convert the 3-year term position to a permanent role and continue the 8-month term position to respond to growing demands, avoid backlogs, and maintain high service levels. These roles will enhance operational efficiency, protect public safety and infrastructure, and support the City's economic development by facilitating timely and effective permit processing.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

171,500

2026 2027

Utility

Taxation

—

Other Revenue (221,500)

—

50,000

171,500

—

(221,500)

—

50,000

171,500

—

(221,500)

—

50,000

187

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transportation

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Crack Sealing Pavement Justification:

As the City of Kelowna continues to expand the network of paved roads and face the challenges posed by rising temperatures, pavement maintenance efforts are imperative. The hotter temperatures experienced have accelerated wear and tear on pavements, leading to an increased need for proactive maintenance. Budget is requested for pavement crack sealing. Crack sealing plays a crucial role in extending the lifespan of roads by preventing moisture penetration, reducing pavement deterioration, and minimizing the need for more costly repairs down the line. By addressing cracks early, the City can preserve the integrity of the infrastructure and ensure safe and efficient travel for residents.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

125,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(125,000)

125,000

—

(125,000)

125,000

—

(125,000)

Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Safe Mobility Action Plan Implementation Justification:

The Safe Mobility Action Plan is scheduled for completion in the first quarter of 2025. The objective of the plan is to decrease fatalities and injuries on Kelowna's streets by utilizing data and community feedback. Budget is requested in 2025 to implement key initiatives of the plan, including education campaigns, updating bylaws, changing traffic signal operations, and piloting new speed control measures to improve safety for all road users.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

75,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(75,000)

—

188

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Title: Active Transportation Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for active transportation. Annual items for consideration may include, but are not limited to, bicycle network improvements, crosswalk safety, signals and flashers, safe routes to school and sidewalk and bikeway renewal. Individual project components may include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

2,408,000

(2,408,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Bridges Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for bridge rehabilitation and renewal. This program undertakes inspections and repairs on the City's bridges to maintain their structural integrity and extend their service life.

Strategic Direction:

Other

Year

Cost

Reserve

2025

450,000

(450,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

189

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Title: Road Network Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for road network improvements. Annual items for consideration may include, but are not limited to, traffic calming, road renewal, road safety improvements, street lighting renewal, intersection capacity improvements, traffic signals and roundabouts. Individual project components may include design, land acquisition and construction. Also included in this request is the purchase of two speed reader board units that display and record associated speed data to enhance traffic control.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

8,665,000

(4,269,000)

Operating Impacts: Year 2025 2026 2027

Cost

Reserve

50,000 50,000 50,000

— — —

DCC Reserve (476,000)

Borrow

Grant

—

DCC Reserve — — —

Borrow

Grant

— — —

Service Area: Transportation

Other Revenue (475,000)

Utility

Taxation

—

(3,445,000)

Other Revenue — — —

Utility

Taxation

— — —

(50,000) (50,000) (50,000)

Priority 1

Title: Active Transportation - Bertram St Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this active transportation project that will develop new north-south protected bike lanes through Downtown linking the Bertram Multiuse Overpass, Leon/Lawrence ATC (future) and Cawston ATC. The Bertram ATC will facilitate increased north-south cycling in Downtown and provide an alternative all ages and abilities route to the Waterfront Walkway. This active transportation facility will support development in the Downtown, including the new UBCO campus. Project components may include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

1,620,000

(1,085,000)

DCC Reserve (535,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

190

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Title: Active Transportation - Rutland Neighbourhood Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for phase 1 of the bikeway (Houghton ATC to Hartman Rd) and phase 2 (Hartman Rd to Klassen Rd via Friesen Rd). The Rutland Neighbourhood Bikeway was selected to be Kelowna's first neighbourhood bikeway. The route was chosen with consideration of existing and future bike infrastructure, community benefits, feedback from the 2023 Neighbourhood Bikeways Study, and key elements of what makes a good neighbourhood bikeway demonstration corridor. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

1,000,000

(1,000,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Intersections - Springfield & Dilworth Improvements Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Part of the major intersection capacity and road safety DCC programs, this project will upgrade the intersection of Springfield / Benvoulin / Dilworth. These annual DCC road programs target capacity and safety improvements at key intersections on the major road network. Approaches and adjacent intersections will also see changes to support improvements. Budget is requested for the design, land acquisition and construction of the Springfield and Dilworth intersection improvement, including capacity upgrades, multi-modal improvements to address capacity/safety issues and accommodate active transportation and transit users.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

2,472,000

(1,088,000)

DCC Reserve (1,384,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

191

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Title: Roads - Burtch Rd Upgrades Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the Burtch Rd extension project which will create a continuous north/south corridor between Glenmore Rd and KLO Rd. The project includes upgrades along existing segments of Burtch Rd, a new section of arterial roadway between Byrns Rd and KLO Rd, and considers a future extension to Benvoulin Rd. The project supports development and population growth in the south of Kelowna. Project components include design, construction and land acquisition.

Strategic Direction:

Transportation

Year

Cost

2025

12,355,000

Reserve

DCC Reserve (3,292,000) (9,063,000)

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Utility

Taxation

—

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - Commonwealth Rd (Hwy 97 - Jim Bailey) Upgrades Justification:

Budget is requested to upgrade and extend Commonwealth Rd as a major arterial between Highway 97 and Jim Bailey Rd. Proposed improvements include intersection upgrades at Highway 97 (by Ministry of Transportation and Infrastructure), improvements along Commonwealth Rd, eastward extension across and connecting to Okanagan Rail Trail and reconfiguration of the Jim Bailey Rd/Cres. intersection. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

313,000

(63,000)

DCC Reserve (250,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

192

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - Frost Rd Upgrades (with utilities) Justification:

Budget is requested to extend Frost Rd as a minor arterial between Killdeer Rd and Chute Lake Rd, including a new roundabout at Chute Lake Rd, Frost Rd, and Okaview Rd. Separately, a nearby development project will add a traffic signal at the intersection of Frost Rd and Gordon Rd. This new connection will make travel between the Lakeshore Rd and Gordon Rd corridors easier and improve access to schools and services. Project components include land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

5,043,000

(808,000)

DCC Reserve (4,235,000)

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Roads - Glenmore Rd Upgrades Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for improvements along the Glenmore Rd corridor. At the south end of the corridor, development of an active transportation corridor between Glenmeadows Rd and the Okanagan Rail Trail will link existing walking and biking facilities in the Glenmore valley to the rest of the City's active transportation network. Between Union Rd and John Hindle Dr, intersection improvements and widening will increase vehicle capacity and extend existing multiuse pathways on Glenmore Rd and John Hindle Dr. Between John Hindle Dr and the Lake Country boundary alignment, access, intersection and shouldering upgrades will improve the safety performance of this busy rural corridor. Project components include planning, design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

10,425,000

—

DCC Reserve (6,737,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

(3,688,000)

193

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - Highway 33 to Clement Extension Justification:

Budget is requested to extend Clement Ave from Spall to Highway 33 as a major arterial with at-grade intersections at Spall Rd, Hardy St, Dilworth Rd and Highway 33. This new link will increase people-moving capacity through the Midtown area in conjunction with future planned traffic and transit improvements along Highway 97. Realignment of the Okanagan Rail Trail and coordination with Mill Creek Flood improvements will be required. Project components include planning, design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

2,800,000

(448,000)

DCC Reserve (2,352,000)

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Roads - Hollywood Rd N Upgrades Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to upgrade and extend Hollywood Rd N from John Hindle Dr to Sexsmith Rd. Improvements include development of a suburban major arterial roadway and intersection upgrades at Sexsmith Rd, Academy Way and John Hindle Dr. This is one of a series of projects planned to develop Hollywood Rd N as a continuous arterial corridor between Airport Way and Highway 97. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

2025

5,667,000

Reserve

DCC Reserve (1,459,000) (4,208,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

194

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - KLO Bridge Replacement (with utilities) Justification:

Budget is requested for replacement of the KLO Rd bridge over Mission Creek. The new bridge will provide reliable vehicle access to South East Kelowna, will meet current flood and environmental requirements, and enhance walking and cycling facilities including the Mission Creek Greenway. This project will be delivered concurrently with the McCulloch Area DCC (KLO/Hall/Spiers) project that addresses the approaches of the bridge, including a new roundabout at KLO and Spiers roads. Project components include land acquisition and construction.

Strategic Direction: Year 2025

Transportation Cost

Reserve

16,564,000 (12,889,000)

DCC Reserve (3,675,000)

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Roads - Lakeshore Rd Upgrades Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to make improvements along the Lakeshore Rd corridor. Improvements include roadway urbanization from Lanfranco Rd to Cook Rd coordinated with a major utility replacement project and adjacent developments. A gap in the Lakeshore Rd Active Transportation Corridor (ATC) will also be addressed at Rotary Beach Park. From Lexington Dr to DeHart Rd, roadway urbanization and extension of the ATC will link existing facilities to the north and south. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

4,690,000

(1,414,000)

DCC Reserve (3,276,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

195

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - Parkinson Recreation Centre Road Improvements Justification:

Budget is requested for improvements along Spall Rd between Bernard Ave and Highway 97 to support redevelopment of the Parkinson Recreation Centre. Improvements include turn lane upgrades at Highway 97, intersection upgrades at Parkinson Way, bus stop and active transportation corridor upgrades. Project components include design and construction, and may include land acquisition.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

400,000

—

DCC Reserve —

Borrow

Grant

(400,000)

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Roads - Stewart Rd Upgrades Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to improve traffic flow and safety on Stewart Rd between Crawford Rd and DeHart Rd. The corridor inherits a number of sub-standard road alignments and geometric challenges. Improvements are required due to continued growth in the Upper Mission. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

800,000

(184,000)

DCC Reserve (616,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

196

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transportation

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Roads - Sutherland Rd Upgrades Justification:

Budget is requested for the extension of Sutherland Rd from Burtch Rd to Kirschner Rd as a urban centre arterial, with a two-way protected bike lane on the north side. This new street provides improved east-west connectivity into the Landmark area and facilitates new development in the area. The project was identified in the Capri-Landmark Urban Centre Plan and Transportation Master Plan. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

130,000

(22,000)

DCC Reserve (108,000)

Borrow

Grant

—

Service Area: Transportation

Other Revenue —

Priority 1

Title: Roads - Neighbourhood Street Urbanization Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for the new neighbourhood street urbanization program that will upgrade existing local streets in areas with significant infill development. Initial projects will prioritize locations with recent infill development, missing infrastructure, increasing street use, existing deferred revenue, high walking and biking activity, opportunities for capital project coordination and projected future growth. Individual project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

5,150,000

(5,150,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

197

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 2 Description Waste Management Service Enhancement Redeployment Snow Clearing and Ice Control Service Enhancements Solar Light Replacement - Neighbourhood and Dog Parks Operating Requests Priority 2 Total

2025 145

2026 145

2027 145

2028 145

2029 145

375

538

620

570

732

815

198

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transportation

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Waste Management Service Enhancement - Redeployment Justification:

Budget is requested to enhance waste management service delivery. For over two years the City has successfully managed this service, demonstrating that insourcing can deliver a reliable, higher quality service at a lower cost compared to external contractors. It also allows for flexibility to provide increased service in underserved areas. To date, this service has been performed by five term Equipment Operator I positions. Formalizing four of these positions into full-time roles will enhance operational stability, while extending service in Rutland from seasonal to year-round. The retention of one 8-month term position will provide flexibility to handle seasonal demand fluctuations. This $404.6k budget is partially funded from a redeployment of $260k existing budget. This request would increase taxation demand in 2025 by 0.08 per cent.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

144,600

2026 2027

Utility

Taxation

—

Other Revenue —

—

(144,600)

144,600

—

(144,600)

144,600

—

(144,600)

Service Area: Transportation

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Snow Clearing and Ice Control Service Enhancements Justification:

City of Kelowna provides snow clearing and ice control services to exempt sidewalks, pathways and active transportation corridors. The established service standard of clearing within 24 hours following a snowfall, outlined in Council Policy 332, is currently not being met. Budget is requested to rent additional equipment and retain seasonal staff in order to fully staff and equip each of the 10 sidewalk zones across the City. Budget is also requested to increase the current grader fleet for roadway snow clearing and ice control services from two units to four to improve response times across Priority 1 roads. If moved to a priority 1, this request would increase taxation demand in 2025 by 0.2 per cent.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

375,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(375,000)

537,500

—

(537,500)

620,000

—

(620,000)

199

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transportation

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Solar Light Replacement - Neighbourhood and Dog Parks Justification:

Budget is requested for a four-year program to install and maintain new solar lights in local dog parks and neighbourhood parks, as the current solar lights are at the end of their life cycle. This funding will enhance safety by improving visibility, extend the usability of these areas after dark, and support environmental sustainability through the use of renewable energy. The allocation will cover the costs of high-quality solar lights, professional installation, and ongoing maintenance, ensuring a well-lit and welcoming community environment for residents and their pets. If moved to a priority 1, this request would increase taxation demand in 2025 by 0.03 per cent.

Strategic Direction:

Climate & Environment

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

50,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(50,000)

50,000

—

(50,000)

50,000

—

(50,000)

200

2025 FINANCIAL PLAN

CITY OF KELOWNA

TRANSIT LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: Our goal is to provide fast and reliable transit service to our community. Transit provides numerous benefits to the community including an affordable transportation option that helps reduce congestion and emissions, as our community grows.

Our customers: Our customers are all transit patrons who live, work and play in Kelowna.

Our partners: We work with BC Transit and our regional government partners (West Kelowna, Westbank First Nation, Peachland, and Lake Country) to deliver affordable transit service, including HandyDart.

What we deliver: We provide service annually with 28 routes, 100 buses and over 215,000 hours in the Central Okanagan. We work in liaison with BC Transit on contract administration, service planning, and provide a variety of transit pass options to enable access to transit for everyone in our community.

Our key objectives: • • • •

Attract new riders Deliver operational excellence Improve transit sustainability Improve custom transit utilization

Our guiding plans: • • • • •

Imagine Kelowna Regional Transportation Plan Transportation Master Plan Central Okanagan Transit Future Plan Transit Future Action Plan

201

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Transit ridership Transit is an efficient way to move more people in our limited road space. It helps reduce congestion and emissions and is a great alternative to driving for longer trips. Ridership tracks how many people use transit and shows us how much it's being used. The Transportation Master Plan (TMP) aims to double transit ridership by 2040, reaching approximately 12 million riders annually. In 2023, ridership grew beyond pre-pandemic levels, increasing from 5.97 million in 2019 to 6.11 million and is trending in the desired direction to meet the 2040 target.

Performance measure 2 Resident satisfaction This measure reflects the overall public perception of transit based on our Citizen Surveys. Resident satisfaction with public transit increased from 56 per cent in 2022 to 61 per cent in 2023. This increase likely reflects the improvements made to service after the pandemic. The aim is to achieve 75 per cent customer satisfaction, as outlined within the Central Okanagan Transit Service Guidelines. The proposed service expansions detailed in the Transit Improvement Program are expected to increase customer satisfaction further and support meeting this target.

202

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 On-time performance On-time performance tells us how often buses arrive on schedule, which is important for people to trust and rely on transit. A trip is considered on time if it departs no more than three minutes late or one minute early. The estimated on-time performance is 73 per cent in 2024. Data prior to 2022 is unavailable as the full implementation of Next Ride 2.2, which tracks this, was not in place yet. The aim is to achieve on-time departures 70 per cent of the time, with 80 per cent on-time departures for local coverage routes, as per The Central Okanagan Transit Service Guidelines.

Performance measure 4 Transit service Investing in new transit services is essential for sustaining and expanding a successful transit system in Kelowna. In 2023, approximately 210,000 hours of service were provided in the Kelowna Regional Transit System, with about 170,000 hours within Kelowna. This equates to 1.04 hours of transit service available per person in Kelowna, representing a slight decline from previous years, likely due to rapid population growth. The closest Municipal Benchmarking Network Canada (MNBC) comparator community based on service area population, achieved 1.17 service hours per capita in 2023. The Kelowna Regional Transit System as a whole reached 1.17, while the City of Kelowna reached 1.04. The City of Kelowna aspires to increase this figure to 1.19 by 2028. The investments proposed in the Transit Improvement Program will help us move toward our target.

203

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety

•

Transportation

• • •

Climate & Environment

• • • •

Our People Active Financial Management

• • •

Upgrades being designed for three transit exchanges include provisions for CCTV coverage Construction of Hardy Street Operations Centre enhancements Continued master planning and completion of Agricultural Land Reserve exclusion for the Transit Operation and Maintenance Facility at Hollywood Road Implementing transit service improvements (on-time performance and service expansions) Construction of transit exchanges at Okanagan College and Rutland Detailed design of the Mission transit exchange Canada Public Transit Fund planning and application Continued participation in BC Transit’s first pilot of on-demand service in Crawford area Enhanced focus on staff development to provide opportunities to learn and grow Conduct a comprehensive fare review Continued pursuit of grants including the Canada Public Transit Fund

204

2025 FINANCIAL PLAN

CITY OF KELOWNA

2024 Key accomplishments: • • • • • • •

Achieved record-level transit ridership, forecasted at 6.45 million rides in 2024 Constructed four new bus stops, upgraded eight existing stops, added three new shelters Began implementing service improvements proposed in the Rutland Local Area Transit Plan completed in 2023 Advanced project development for the future new Hollywood Transit Centre Completed design of enhancements at the Hardy Transit Centre in preparation for 2025 construction Successfully launched the Umo fare collection system in the Kelowna region Increased access to transit for equity-deserving groups through a United Way partnership

Continuous improvements: • • • • •

Maximizing capacity from existing resources while planning for future growth Continuing participation in the OnDemand transit service pilot Advancing plans for high-order transit and transit priority infrastructure Preparing for the introduction of battery electric buses in the Kelowna Regional Transit System Collaborating with the Ministry of Transportation and Infrastructure and regional transit partners to plan the future enhanced transit services in the region

Budget overview:

2025 Total Expenditure Budget Breakdown

2025 Total Expenditure Budget, $838.9M

Transit, $44.4M

Kelowna Regional Transit $41.3M Transit Capital $2.9M

Note: Totals may not add due to rounding

Total $44.4M

205

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results The provincial government, through BC Transit, covers approximately half of the transit contract costs. The remaining expenses are funded through a combination of transit fares, advertising revenue, and property taxes. In 2025, reserve funding will serve as a budget tool to address anticipated surpluses in the transit contract. However, these reserve funds will only be accessed if revenues fall short of covering all expenses.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

10,207 7,969 10,879 18 126 29,200

13,173 8,018 14,013 — 1,010 36,214

(174) 27 — — (356) (503)

377 — — — 616 993

113 743 2,884 1,100 2,897 7,736

13,490 8,788 16,896 1,100 4,167 44,441

285 732 23,836 — — 555 3,792 29,200

283 953 30,865 — — 307 3,806 36,214

54 (288) (68) — — — (201) (503)

16 2 4 — 616 — 356 993

— 171 5,226 — 2,242 — 97 7,736

353 838 36,027 — 2,858 307 4,058 44,441

1.0 — 1.0

0.5 — 0.4

— — 0.5

— — —

0.5 — 0.9

2.0

0.9

0.5

—

1.4

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Contract services $36.0M

Grant $16.9M Enabling allocation $4.1M Property tax $13.5M Transit capital $2.9M Fees and charges $8.8M Material and other $0.8M Transfers from reserve $4.2M Salaries and wages $0.4M Other Revenue $1.1M Transfers to reserve $0.3M

Total $ 44.4 M

Total $

44.4 M

Note: Totals may not add due to rounding

206

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Transit Operations Hollywood Transit Centre Planning Transit Fare Review Transit Planning Software - Redeployment

2025 5,226 125 30 —

2026 5,226 — — —

2027 5,226 — — —

2028 5,226 — — —

2029 5,226 — — —

Operating Requests Priority 1 Total

5,381

5,226

2025

2026

2027

2028

2029

2025 Capital Requests ($ thousands) Priority 1 Description Programs Transit Projects Transit - Mission Recreation Transit Exchange & Mobility Hub Transit - Okanagan College Exchange Capacity Transit - Rutland Park & Ride, Mobility Hub, Operations Facility Capital Request Priority 1 Total

616

944

1,503

1,767

3,014

Total Project 3,750

750

1,000

2,000

—

2,300 2,992

500 992

800 1,000

1,000 1,000

— —

9,042

2,858

3,744

5,503

1,767

3,014

* denotes capital request has operating & maintenance impacts included in the request

207

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transit

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Transit Operations Justification:

Budget is requested to reflect the anticipated changes in transit operations such as adoption of new technology (Umo electronic fare system), the transition to electric buses, and expansion of the existing transit maintenance facility. As well, reflects financial pressures due to rising fuel costs, lease fees, and rising administrative expenses. Increasing ridership revenue is helping to offset these cost increases but additional funding is required. A combination of previous year surpluses and remaining Safe Restart grant funding is recommended to be used to phase in the property tax impact of this increase over the next three years allowing time for the City to complete a transit fare review.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

(900,000)

DCC Reserve —

2025

5,226,200

2026 2027

Utility

Taxation

(2,483,500)

Other Revenue (1,842,700)

—

5,226,200

(500,000)

—

(2,483,500)

(1,542,700)

—

(700,000)

5,226,200

(400,000)

—

(2,483,500)

(1,342,700)

—

(1,000,000)

Service Area: Transit

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Hollywood Transit Centre Planning Justification:

Budget is requested in order to support the continuation of design of a new transit operations centre as well as to progress site servicing planning. This project will be lead by BC Transit in coordination with Infrastructure BC whom are undertaking the design. This budget request will also support the formulation of an Integrated Regional Plan (IRP) required for grant applications to the Federal Canada Public Transit Fund (CPTF). The effort will be a cost-sharing initiative with BC Transit and may also be supported by additional federal funding.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

(125,000)

DCC Reserve —

2025

125,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

208

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Transit

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Transit Fare Review Justification:

Budget is requested to facilitate a comprehensive review of transit fares, evaluating current rates, service costs, community fare programs, and historical revenue and ridership trends, and cover the coordination of a mandatory U-Pass referendum required under the U-Pass agreement when the pass rate is proposed to change. Additionally, it will support a feasibility study on equity-based transit fares, exploring eligibility requirements, operational and administrative implications, budget considerations, and stakeholder engagement. The goal of equity-based fare programs is to enhance transit access for those most in need, thereby improving their access to community services, employment opportunities, and social wellness initiatives.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

(30,000)

DCC Reserve —

2025

30,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Transit

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Transit Planning Software - Redeployment Justification:

Budget is requested, funded from redeployment of existing budget, to fund an annual subscription for transit planning software to provide enhanced capabilities to efficiently and effectively develop and analyze network structure and service level options. This software aids in data-based, nimble decision making helping to optimize the transit system and the service it provides to the community. The software will be used to support planning within the Central Okanagan Integrated Transportation Network (COITN) program, exploration of new services (including potential future on-demand services) in neighborhoods such as Clifton Road area and others, and support analysis for the Pandosy-Richter study and ongoing planning for Kelowna's North End.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

209

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transit

Priority 1

Title: Transit Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for transit. Annual items for consideration may include, but are not limited to, new bus stop and amenity improvements, upgrades to existing bus stops and land acquisition for new bus stops. Improvements associated with local area plan changes are also included. Individual project components may include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

616,000

(616,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Transit

Other Revenue —

Priority 1

Title: Transit - Mission Recreation Transit Exchange & Mobility Hub Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to reconfigure the Mission Rec Exchange to improve rider comfort and reduce bus delays, operating costs and conflicts with other facility users. Anticipated improvements include a potential mobility hub and relocated exchange within the existing parking lot and improved access to Gordon Dr. This project is being developed in coordination with BC Transit. Project components include design and construction.

Strategic Direction: Year 2025

Transportation Cost

Reserve

750,000

(750,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

210

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Transit

Priority 1

Title: Transit - Okanagan College Exchange Capacity Expansion Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested to reconfigure and add transit bay at the Okanagan College Transit Exchange to increase exchange capacity and address ongoing operating issues. Anticipated improvements include relocation of an existing bay, an additional bay, shelters, rider amenities, stronger active transportation links and better integration adjacent Okanagan College buildings. This project is being developed in coordination with Okanagan College and BC Transit. Project components include design, land acquisition and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

500,000

(100,000)

DCC Reserve —

Borrow

Grant

—

(400,000)

Service Area: Transit

Other Revenue —

Priority 1

Title: Transit - Rutland Park & Ride, Mobility Hub, Operations Facility Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to complete detailed design and construction of improvements at the Rutland Transit Exchange. Improvements will address existing operating issues, future service expansions and improve access between transit and other travel modes. Upgrades to the exchange include construction of a driver washroom/admin facility, an additional transit bay, park and ride parking, and a bicycle parking / micro mobility hub. This project is being developed in coordination with BC Transit. Project components include design and construction.

Strategic Direction:

Transportation

Year

Cost

Reserve

2025

992,000

(992,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

211

2025 FINANCIAL PLAN

CITY OF KELOWNA

PARKS LED BY: GENERAL MANAGER, INFRASTRUCTURE

Our goal & community benefit: Our goal is to manage, operate and maintain the City's parks in a sustainable manner meeting community need. Currently, Parks is creating a master plan which will guide the expansion, development, and operations of its parks system as the City grows. Our parks support a resilient and active city by providing equitable access to a diverse recreational and cultural experiences.

Our customers: • • • •

Residents, tourists and visitors People of all ages and abilities User groups, sports members Athletes at all ages and stages of development

Our partners: We work with our citizens, and industry professionals to create and maintain the recreational and cultural activities in the community.

What we deliver: We provide the guide in making both long-range and short-term decisions about the parks system. We also provide the financial strategy needed to support and sustain the City’s portfolios of parks, open spaces and natural areas. We provide a phased implementation strategy for improving existing parks and public shorelines, unfunded but Council-approved parks as well as the acquisition, location, and/or development of future parks. Park Services maintains 250 hectares of sport and park land, 692 hectares of managed natural areas, and 132 hectares of low management natural areas.

Our key objectives: •

•

A vibrant community ◦ Public parks are clean and safe spaces for the public ◦ Ensure parks, beaches, playgrounds and natural park areas are managed long term ◦ A healthy community ◦ Well maintained trails and natural areas ◦ Growing a healthy tree canopy An engaged team ◦ Staff are connected and informed ◦ Resources and training are available

Our guiding plans: • • • • • •

Imagine Kelowna Parks Master Plan (under development) Community for All – Healthy City Strategy Kelowna Community Sport Plan (2019) Kelowna Event Strategy (2022) Council and Corporate Priorities

212

2025 FINANCIAL PLAN

CITY OF KELOWNA

Measuring performance: Performance measure 1 Park user satisfaction with Parks This metric helps determine whether the department is fulfilling its mandate to provide high-quality recreation programs and spaces for its citizens and users. Measured by: Biennial online survey. OCP 2040 Objective 10.3. Ensure parks reflect their unique natural and cultural context. OCP 2040 Objective 1.14. Provide safe, walkable, Core Area neighbourhoods that are connected to key designations. OCP2040 Objective 14.2. Preserve and enhance biodiversity and landscape diversity, integrating and connecting ecological networks throughout the City.

Performance measure 2 Service requests specific to inquiries regarding service Tracking the number of service requests that relate to service levels within existing parks and City road right of way. Annual tracking of requests relating to level of service. Measured by: Analyzing Cityworks service requests on types of requests, locations, and time to close. OCP 2040 Objective 13.2. Ensure fiscally responsible management of existing and proposed infrastructure.

213

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 3 Trees sold through Neighbourwoods The Neighbourwoods Program, which offers discounted trees to Kelowna residents, is a crucial performance measure designed to enhance green spaces and promote environmental sustainability. Recently, the sales targets have been increased to 1,000 trees in 2024 and 1,500 in 2025 to further encourage community participation and boost sales. This initiative not only fosters engagement and stewardship but also aligns with the City Council's priority of improving urban greenery. By achieving these targets, we aim to create a healthier ecosystem, beautify the city, and instill a sense of pride among residents, contributing to a more sustainable and vibrant Kelowna.

2025 Activities by priority: Priorities

Activities

Crime & Safety

•

Homelessness Climate & Environment

• • • • • • • • • •

Our People Digital Transformation

Active Financial Management

• •

Develop staff safety protocols and documentation for community-based program/ service delivery Help to reduce impact by continuing to provide clean safe public spaces Protect and restore natural areas (riparian areas and forests) Continue to grow healthy urban canopy Provide safe natural areas for the public to enjoy Develop and maintain green infrastructure throughout the City Develop a long-term Divisional staffing model and succession plan Promote and deliver staff engagement and growth initiatives Using data to make informed decisions Embrace innovation to increase turf maintenance practices Continue integration and implementation of the City Works program into Parks Operations, providing greater clarity of responsibilities and assets Continued implementation of service-based budget to ensure that the associated infrastructure, maintenance, and operating costs are explained Continue to provide financially responsible public-maintained parks

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2024 Key accomplishments: • • • • •

Completed 3,933 Parks Services service requests in 2023 Sold 820 Neighbourwoods Trees to Kelowna residents, an increase of 320 over 2023 The Greenhouse grew 55,000 annual plants for placement throughout the City The Greenhouse added 200 planters for placement throughout City urban areas and highways Renewed a total of 16 acres of parkland irrigation at Rotary Beach, Ben Lee Park, East Kelowna ballfields, and Truswell Park

Continuous Improvements: • • • • •

Creation of an updated Asset Management Plan for parks, playgrounds, and associated infrastructure to identify an inventory of required works to be completed for the lifespan of each park, associated costs and timelines Continued conversion of irrigation control systems to Rainbird IQ4 Improving irrigation flow sensing Fully implemented robot line painter in all recreation parks Prepared Apple Bowl to host Canadian Premier League soccer game

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Parks Services, $72.7M Parks Capital $49.8M Parks & Beaches $12.0M Urban Forestry $5.4M Parks Services $2.1M Cemetery $2.1M Parks Planning & Design $1.4M

Note: Totals may not add due to rounding

Total $72.7M

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Budget needed to achieve results Parks services are primarily funded through property taxes, except for the Kelowna Memorial Park Cemetery, which operates on revenue generated through fees and charges. The Parks 2025 capital program is supported by a combination of funding sources, including grants, debt financing, developer contributions, capital reserves, and taxation.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

Revised Annualized Maintaining 2024 Budget Service

Enhancing Preliminary Service 2025

26,376 2,701 970 (671) 34,421 63,796

24,616 1,286 168 1,764 50,547 78,380

(5,658) — (168) (1,541) (50,426) (57,793)

1,410 217 — — 2,944 4,572

2,189 — 1,000 5,951 38,432 47,572

22,557 1,503 1,000 6,174 41,497 72,731

5,544 2,955 5,249 — 41,715 410 7,922 63,796

5,379 3,641 5,798 — 54,886 409 8,267 78,380

93 (465) (160) — (54,886) — (2,375) (57,793)

281 67 20 — 3,461 161 581 4,572

— 680 400 — 46,333 — 159 47,572

5,753 3,924 6,058 — 49,794 570 6,632 72,731

5.5 50.7 3.9 60.1

8.3 46.5 4.0 58.8

0.5 — — 0.5

— 0.5 — 0.5

— — — —

8.8 47.0 4.0 59.8

Operating FTE positions: Management Union hourly Union salary Total operating FTE positions Note: Totals may not add due to rounding

Funding strategy Transfers from reserve $41.5M Property tax $22.6M

Expenditure by type Parks capital $49.8M Enabling allocation $6.6M Contract services $6.1M

Other revenue $6.2M Salaries and wages $5.8M Fees and charges $1.5M Material and other $3.9M Grant $1.0M

Total $72.7M

Transfers to reserve $0.6M

Total $

72.7 M

Note: Totals may not add due to rounding

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2025 Operating Requests ($ thousands) Priority 1 Description Parks Planning Program - Redeployment Median Improvement Program Park Maintenance Wildfire Fuel Mitigation

2025 80 600 132 400

2026 80 600 106 500

2027 80 600 106 600

2028 80 600 106 600

2029 80 600 106 600

Operating Requests Priority 1 Total

1,212

1,286

1,386

2025

2026

2027

2028

2029

447 3,211 20,823

172 2,423 21,618

3,261 1,181 20,823

172 2,828 15,180

3,261 1,159 14,385

2025 Capital Requests ($ thousands) Priority 1 Description Programs Park Development Park Infrastructure & Facilities Parkland Acquisition Projects Ben Lee Park Burne Park Chichester Wetland Park City Park Cook Beach Park- Aqua Foreshore DeHart Park Glenmore Recreation Park Island Stage Rejuvenation Kelowna's Newest Waterfront Park Manhattan Point Park Mill Creek Linear Park Parkinson Recreation Park Queensway Improvements Rotary Beach Park Rutland Recreation Park

Total Project 1,086 3,311 3,886 30,765 3,575 11,480 41,270 1,650 2,060 4,915 8,727 41,162 900 2,470 8,360

250 1,000 195 740 150 1,818 9,500 1,000 608 235 300 4,116 800 708 3,893

— 1,300 195 1,365 937 402 3,000 600 1,156 235 1,119 14,409 50 1,122 3,406

— 591 3,496 6,307 2,288 134 7,000 — 196 2,827 1,000 18,523 50 600 811

— — — 8,280 300 — 7,000 — — 1,413 1,119 4,115 — — —

— — — 3,750 — — 3,500 — — — 1,000 — — — —

Capital Request Priority 1 Total

165,617

49,794

53,509

69,088

40,407

27,055

* denotes capital request has operating & maintenance impacts linked to this request

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2025 Operating Request Details Service Area: Parks

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Parks Planning Program - Redeployment Justification:

The Parks Planning & Design department specializes in designing, developing, and managing outdoor spaces that enhance community recreation for our growing community, with an emphasis on accessible, sustainable, and inclusive parks that promote healthy living, environmental conservation, and community connection. Budget is requested for an annual planning program to ensure parks planning stays aligned with evolving community needs to support informed decisionmaking. With significant capital upgrades planned for all four main recreation parks from 2025 to 2027, budget in 2025 will be used to oversee and ensure that the planning processes across these parks are harmonized, in addition to strategic planning for the Recreation Avenue site. This $100k budget is partially funded from a redeployment of $20k existing budget.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

80,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(80,000)

80,000

—

(80,000)

80,000

—

(80,000)

Service Area: Parks

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Median Improvement Program Justification:

The Parks department used grant funding to start the median improvement program in 2024 with the goal to convert current hard scaped medians into medians with suitable trees, in line with the City's Sustainable Urban Forestry Strategy. These changes will result in clean well-maintained medians while significantly adding to the urban tree canopy. Given the success of the trial program, sites for 2025 and 2026 have been identified and draft designs completed, including associated greenhouse operations and improvements for propagation and maintenance. Ongoing budget is requested to continue this program with a focus on the medians along the Highway 97 corridor.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(400,000)

DCC Reserve —

2025

600,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(200,000)

600,000

(200,000)

—

(400,000)

600,000

—

(600,000)

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2025 Operating Request Details Service Area: Parks

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Park Maintenance Justification:

The City of Kelowna's Parks Department manages and maintains Kelowna's public parks, natural areas, beaches, trails, and urban forests to provide accessible, high-quality green spaces for residents and visitors. With the redesign of Ballou Park and the Knox Mountain Crown Lookouts, and addition of the new parks Tall Grass Park, Fawn Run Park, Truswell Park, Burne Ave Park, and University Heights Park, additional budget is required to maintain these parks at the current service level. This request is for one Groundsperson II position and one vehicle that will be moved into the capital program upon Council approval.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

131,800

2026 2027

Utility

Taxation

—

Other Revenue —

—

(131,800)

105,500

—

(105,500)

105,500

—

(105,500)

Service Area: Parks

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Wildfire Fuel Mitigation Justification:

Council recently adopted the Sustainable Urban Forest Strategy which identifies the need to plan and execute the removal of high wildfire threat fuel in natural parks and spaces in the City. One action identified in the strategy is to continue and expand wildfire fuel mitigation in public spaces as outlined in the Community Wildfire Protection Plan to reduce wildfire risk as well as improve forest health. Kelowna currently has 606 hectares of either High Threat and/or areas identified as High Priority in the 2021 Community Wildfire Protection Plan. Natural areas require frequent maintenance work to reduce wildfire threat. Budget is requested to complete this work over the next 10 years. Grant opportunities will continue to be explored as they arise.

Strategic Direction:

Climate & Environment

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

400,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(400,000)

500,000

—

(500,000)

600,000

—

(600,000)

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2025 Capital Request Details Service Area: Parks

Priority 1

Title: Park Development Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program for both the design and construction of neighbourhood parks throughout the City to meet the demands of population growth.

Strategic Direction:

Other

Year

Cost

Reserve

2025

447,000

(294,000)

DCC Reserve (153,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Park Infrastructure & Facilities Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program to maintain and enhance park infrastructure and facilities. Annual items for consideration may include, but are not limited to, parks washrooms, accessibility improvements, irrigation renewal, playgrounds and other park improvements.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,211,000

(2,711,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

(500,000)

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2025 Capital Request Details Service Area: Parks

Priority 1

Title: Parkland Acquisition Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the acquisition of land for future use as neighbourhood, community, city-wide, recreation and linear type parks. This is in accordance with the 20-year Servicing Plan and DCC reserve funding. Budget is also requested for acquisition of natural areas that fall outside of the 20-year Servicing Plan and DCC program.

Strategic Direction:

Other

Year

Cost

2025

20,823,000

Reserve

DCC Reserve (941,000) (18,532,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Ben Lee Park Justification:

Utility

Taxation

—

(1,350,000)

Maintain ONE-TIME PRELIMINARY

Budget is requested to replace end of life equipment at Ben Lee Park for the spray park system.

Strategic Direction:

Other

Year

Cost

Reserve

2025

250,000

(250,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Title: Burne Park Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the construction of Burne Park, which has been identified as the next priority within the DCC neighbourhood park program.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,000,000

(380,000)

DCC Reserve (620,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Chichester Wetland Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for the design and construction of trails in the recently acquired portion of Chichester Wetland Park.

Strategic Direction:

Other

Year

Cost

Reserve

2025

195,000

(90,000)

DCC Reserve (105,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Title: City Park Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for design and construction of the final section of waterfront walkway in City Park, as well as improvements to the City Park waterfront in this section. Budget is also requested for design and construction of the of waterfront walkway in Kerry Park, as well as improvements to the Kerry Park waterfront.

Strategic Direction:

Other

Year

Cost

Reserve

2025

740,000

(325,000)

DCC Reserve (415,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Utility

Taxation

—

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Cook Beach Park- Aqua Foreshore Justification:

Budget is requested for the development of the waterfront walkway (aqua foreshore) adjacent to the Cook Rd boat launch.

Strategic Direction:

Other

Year

Cost

Reserve

2025

150,000

(150,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: DeHart Park Justification:

Budget is requested for the continued construction of DeHart Park as well as the washroom and skatepark at the park.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,818,000

(491,000)

DCC Reserve (1,327,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Glenmore Recreation Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for the continued construction at the Glenmore Recreation Park in parallel with the construction of the new activity centre.

Strategic Direction:

Other

Year

Cost

2025

9,500,000

Reserve

DCC Reserve (5,415,000) (4,085,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Island Stage Rejuvenation Justification: Budget is requested for the continued work on the island stage rejuvenation.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,000,000

—

DCC Reserve —

Borrow

Grant

—

(1,000,000)

Service Area: Parks

Other Revenue —

Priority 1

Title: Kelowna's Newest Waterfront Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for construction of frontage, shoreline changes, and landscaping around Kelowna's newest waterfront park. Offsite frontage deferred and to be coordinated with Kelowna Paddle Centre building. The design and construction of the new facility will be funded by the Kelowna Paddle Centre.

Strategic Direction:

Other

Year

Cost

Reserve

2025

608,000

(249,000)

DCC Reserve (359,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Manhattan Point Park Justification:

Budget is requested for the design and construction of Manhattan Point park. The pier, wharf and retaining walls at Manhattan Point were all badly damaged during the 2017 flooding, however they were ineligible for Provincial assistance funding. The park was closed for safety reasons and the pier and wharf were assessed as being beyond reasonable repair.

Strategic Direction:

Other

Year

Cost

Reserve

2025

235,000

(42,000)

DCC Reserve (193,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Mill Creek Linear Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for the annual program of trail construction for Mill Creek Linear Park.

Strategic Direction:

Other

Year

Cost

Reserve

2025

300,000

(33,000)

DCC Reserve (267,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Parkinson Recreation Park Justification:

Budget is requested for the design and construction of layout changes and improvements to Parkinson Recreation Park in association with the construction of the new recreation centre. This project is valuable for ensuring a superior user experience, fostering community well-being, and remaining competitive in a dynamic recreational landscape.

Strategic Direction:

Other

Year

Cost

Reserve

2025

4,116,000

—

DCC Borrow Reserve (2,058,000) (2,058,000)

Grant —

Service Area: Parks

Other Revenue —

Priority 1

Title: Queensway Improvements Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is being requested for the Queensway Transit area, which needs to be upgraded to meet the current and future demands of our growing City. This project will address security concerns and enhance its operating condition. Programs/ initiatives that are in scope: Updating Bennett Plaza, Transit OPS/Security Building, bicycle repair/storage, public washroom, mobility hub (i.e. Uber/Taxi/Micro Mobility), traffic flow updates (i.e. Pandosy), ArtWalk Extension, Patio Program Extension, etc. A consultant is currently working on a plan that will identify, sequence and stage the various initiatives for 2025/2026 and 2027. Plan is to be completed by Mid-October 2024.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

2025

800,000

(800,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Parks

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Rotary Beach Park Justification:

Budget is requested for improvements at Rotary Beach Park. These include the demolition of 3684 Lakeshore Dr and expansion of Rotary Beach Park over two lots. As well as replacement of Rotary Beach Park washroom and adjacent eating area.

Strategic Direction:

Other

Year

Cost

Reserve

2025

708,000

(580,000)

DCC Reserve (128,000)

Borrow

Grant

—

Service Area: Parks

Other Revenue —

Priority 1

Title: Rutland Recreation Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

The current City inventory of multi-use fields is heavily subscribed and at capacity. Budget is requested for the proposed realignment of the existing fields and other amenities to create an additional field, add at least one and potentially two artificial turf fields.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,893,000

—

DCC Reserve —

Borrow

Grant

(3,893,000)

—

Other Revenue —

Utility

Taxation

—

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2025 Operating Requests ($ thousands) Priority 2 Description Canopy Coverage Expansion Planning Operating Requests Priority 2 Total

2025 200 200

2026 300 300

2027 400 400

2028 400 400

2029 400 400

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2025 Operating Request Details Service Area: Parks

Priority 2

Enhance ON-GOING PRELIMINARY

Title: Canopy Coverage Expansion Planning Justification:

City Council adopted the Sustainable Urban Forest Strategy to enhance the City's tree canopy management program. Urban street trees require frequent maintenance to improve and maintain tree and canopy health. The strategy includes developing a 10-year planting plan, expanding the City's tree partnership program, funding more street tree planting, increasing urban tree service levels, expanding the bareroot nursery, and growing Kelowna's NeighbourWoods program. The goal is to plant 80,000 trees over the next two decades to meet canopy targets and adapt to climate change. Budget is requested for the next 10 years, and grant opportunities will be explored. Without additional resources, staff cannot meet the service levels and actions outlined in the strategy. This request would increase taxation demand in 2025 by 0.1 per cent.

Strategic Direction: Year

Climate & Environment Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

200,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(200,000)

300,000

—

(300,000)

400,000

—

(400,000)

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SPORT & RECREATION LED BY: DIVISIONAL DIRECTOR, ACTIVE LIVING & CULTURE

Our goal & community benefit: Our goal is to increase sport, recreation and active living opportunities for all, improve the health and well-being of our citizens and enhance the overall quality of life within our community. The benefits of sport and recreation initiatives cannot be overstated. The benefits include enhancing mental, physical and social well-being, help to build strong families and healthy communities, improve quality of life, provide significant economic stimulus and contribute to community growth and development. High quality, accessible sport and recreation opportunities are a fundamental human need in all ages and stages of life and integral to a well-functioning society.

Our customers: We serve a variety of individuals and organizations to ensure that sport and recreation programs and services are available and accessible to all. • Residents of Kelowna and across the Central Okanagan • People of all ages and abilities • Equity-deserving groups • School boards and educational institutions • Social, community and sport organizations • Visitors to the region • Athletes at all ages and stages of development • Neighbourhoods • Other City of Kelowna business units

Our partners: We work with various local organizations, other levels of government and the public/ private sector to develop mutually beneficial relationships. • Recreation facility and program partners • Not-for-profit service organizations (e.g., BGC Okanagan, KCR) • Recreation providers (e.g., YMCA, Sport organizations, accessibility advocates) • Public institutions (e.g., SD23, UBC Okanagan, Interior Health Authority) • Regional, provincial, and national governing bodies (e.g., BCRPA, ViaSport, Childcare Advocacy groups) • Private service delivery organizations (e.g., Daycare organizations, health & wellness) • Other City of Kelowna business units

What we deliver: We provide a wide range of programs and services helping to enrich the lives of people in our community. The delivery model involves the direct provision, support and facilitation of community-based programs, activities and events that engage, activate and connect people. Our key focus areas include promoting a healthy, active and inclusive community; reducing barriers to participation in sport & recreation; building neighbourhood connections; animating parks and public spaces; supporting an integrated sport system; maintaining sports fields, courts and related infrastructure; and developing a vibrant events sector.

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Our key objectives: •

•

A vibrant community ◦ Public spaces are animated ◦ Strong program delivery model that leverages strategic partnerships A healthy community ◦ Systems and services are aligned ◦ Residents are thriving and resilient ◦ Great cities are made up of strong neighbourhoods An equitable and inclusive community ◦ Practices and processes prioritize equity and inclusion ◦ Financial assistance programs to remove participation barriers An engaged team ◦ Staff are connected and informed ◦ Resources and training are available An exceptional Infrastructure program ◦ Infrastructure is available and well-maintained ◦ Innovative approaches and eco-friendly practices are explored and/or implemented

Our guiding plans: • • • • • • • •

Imagine Kelowna Official Community Plan (2040) Kelowna Community Sport Plan (2019) Kelowna Event Strategy (2022) Indoor Recreation Facility Strategy (2023) Community for All – Healthy City Strategy Conditions of Use and Allocation Guidelines Parks Master Plan (under development)

Measuring performance: Performance measure 1 Grass sports parks area The presence of sports parks contributes to the quality of life within a community by promoting physical activity and supporting a healthy lifestyle. This metric is measured by the area of grass sports fields (playing areas and immediate surrounds) provided in hectares per 1,000 residents. Compared to other municipalities in British Columbia, the City of Kelowna is ranked mid-range, slightly below the provincial average. The audited data is collected by Yardstick, parks and recreation benchmarking, with a stringent review to ensure consistent reporting by the various municipalities across Canada.

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Performance measure 2 Citizen satisfaction — recreation facilities and programs Every two years, the Citizen Survey is carried out to assess public satisfaction with municipal programs and services. It is crucial for residents to have access to sports and recreational activities. Evaluating resident satisfaction with City-provided sport and recreation facilities and programs assists in guiding decisions related to planning, budgeting, and service standards. The aim is for Kelowna residents to be content with the sport and recreation amenities and programs offered by the City of Kelowna.

Performance Measure 3 Sport and recreation participation Engaging in sport and recreation programs offers numerous routes to improved individual health, while fostering a healthier, more interconnected, and resilient community. By delivering a wide variety of programs tailored to the interests and needs of residents, participation rates rise along with community health and vitality. The objective is for Kelowna residents to actively participate in the City of Kelowna's sport and recreation programs annually.

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Performance measure 4 Tournaments and events Tournaments and events hold significant importance for a city's operations. They not only infuse energy and liveliness into the community but also serve as instruments to promote the city's goals and influence residents' perceptions of their environment. The advantages of hosting tournaments and events are numerous, including the creation of vibrant and secure spaces, economic stimulation, showcasing natural features, promoting active lifestyles, and encouraging repeat visits. The City aims to adopt a proactive stance on event hosting by securing tournaments and events; aiding the growth of existing ones; and ensuring the availability of well-maintained outdoor event areas and tournament-ready sports fields. The objective is to foster a dynamic and balanced mix of tournaments and events that boost local engagement and attract tourists.

Performance measure 5 Sports facility capacity hours Sport and recreation facilities play a crucial role in enhancing the quality of life within a community, promoting residents' health, and supporting the community's economic and environmental sustainability. Ensuring these amenities are wellmaintained and accessible to the public is essential. The aim is to optimize the use of these facilities, maintain adequate public access, and anticipate future needs. Presently, our arenas and sports fields are functioning close to capacity, while our stadiums are functioning beyond capacity.

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2025 Activities by priority: Priorities

Activities

Crime & Safety

• •

Climate & Environment

•

Economy

•

Our People

•

Digital Transformation

• •

• • •

Active Financial Management

•

Base Business

•

• • • • •

• •

Continue building the Block Connector network to enhance sense of safety and connectedness among neighbours Further develop staff safety protocols and documentation for community-based program/service delivery Complete an irrigation audit and system operation test of 30 sites in conjunction with grant funding from Okanagan Basin Water Board Advance post-procurement plans for Major Events: 2025 Montana’s Brier, 2025 Canadian Country Music Awards, and 2026 BC Summer Games - these events boost the community by encouraging both participants and spectators to invest in our local economy Promote and deliver staff engagement and growth initiatives through training and development opportunities Update the long-term Divisional staffing model and succession plan Implement and execute technological advancements through Sport League apps and a community wide events calendar to improve customer service and program delivery efficiencies Explore digital options to promote events, activities and programs in an innovative and effective way Further innovate operations to increase turf maintenance practices Continue integration and implementation of the CityWorks program into Recreation Facility Operations, providing greater clarity of responsibilities and assets Continue the development and rollout of a benefits-based investment model for fees and charges to ensure that the associated infrastructure, maintenance, and operating costs associated with the City’s recreation and cultural programs and services are fairly allocated to all customers Continue to support the Neighbourhood Association (NA) pilot program which aims to grow the capacity of Kelowna's NAs to help deepen community relationships. The pilot program’s completion is anticipated for Q4 of 2025. Advance implementation plans of the Apple Race Series (Triathlon/Marathon) Refine and update the 10-year Major Events Procurement plan, the Civic Event Framework and the portfolio of events that are produced or funded by the City Work with Strategic Recreation Facility partners to renew lease agreements, fulfill all associated terms and conditions, and support operations and program delivery Advance partnership plans with UBCO, Okanagan College, Tennis Clubs of Canada and Kelowna Disc Golf Conduct a five-year review and Impact Report of the Kelowna Community Sport Plan, and develop performance indicators/measures for both the Sport Plan and Kelowna Event Strategy Continue to enhance and improve the overall turf quality of our sports fields and optimize the use of existing equipment Further develop plans and processes related to service delivery expansion for programming, rentals, community use, and facility operations to manage multiple new program sites, expanded membership services, and childcare operations related to the Building a Stronger Kelowna suite of projects

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2024 Key accomplishments: • • • • • • • • •

• • • •

Responded to the Child Care Needs assessment through the development of partnerships as well as functional facility plans for Glenmore Activity Centre, Mission Activity Centre and Rutland Lion’s Park Activity Centre Worked with BSK design team on base program requirements and validation process for future Parkinson Recreation Centre building and site Continued offering the Rec & Ride pass, in partnership with BC Transit, which saw almost 450 children and youth gain access to Parkinson Recreation Centre and the Kelowna Regional Transit System during July and August Initiated the development of an Accessibility Plan and feedback mechanism to identify and remove accessibility barriers with guidance from the Accessibility Advisory Committee Developed and implemented the Neighbourhood Association Affiliation pilot project, to support five neighbourhood associations across the City Reestablished the Apple Triathlon and Okanagan International Marathon as part of the Apple Race Series portfolio Developed an enhanced Sport Leagues playoff and tournament format to support effective program delivery and improved customer service Advancement of facility development through grant funding and external contributions at Waterfront Park - Island Stage, Edith Gay Park – baseball fields, and Glenmore Recreation Park – sports field lighting Procured hosting-rights for the 2025 Canadian Country Music Awards, partnered with the Kelowna Rockets for a bid submission to host the 2026 Memorial Cup and hosted the inaugural Canadian Premier League game at the Apple Bowl Continued strengthening the Block Connector program to enhance neighbourhood connections, safety, and emergency preparedness Facilitated the participation of local non-profit organizations in the ‘Future Adaptability and Sustainability Program’ and ‘Rebound Conference’ Completed infield renovations on Lombardy fields 3 and 4 Continued to provide high quality sports fields to meet tournament and recreation user needs, including the implementation of robotic line painting at all Recreation parks

Continuous improvements: • •

• • • • • • • •

Event Services expansion to assist with the processes related to major event procurement, post-procurement development, and successful event delivery Further develop and refine the benefits-based approach to setting fees and charges for services offered throughout Active Living & Culture. This approach helps to guide the evaluation and revision of existing policies and practices to ensure alignment with corporate financial strategies Advance the Recreation Contractor program to encourage recruitment and instructor retention Continue to refine and monitor service area performance through financial metrics, programming metrics and benchmarks Advance new partnership opportunities while refining management of existing facility, operating, and program agreements Continuing work with provincial partners and key stakeholders on a Quality Sport Program in Kelowna Ongoing implementation of the Kelowna Community Sport Plan, Event Strategy, and Major Events Activation Review and revise the facility-based Advisory Committee structure to reflect up-to-date practices with a continued focus on effective support and advocacy for Sport Advance service-based budgeting and setting service levels for sports fields Revamp irrigation and turf maintenance procedures to accommodate new ball diamonds and sports field

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Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Sport & Recreation, $47.9M

Sport & Recreation Capital $25.9M Sport & Event Services $9.1M Sportsfield & Irrigation $5.2M Community & Neighbourhood Services $4.8M Administration & Business Services $1.5M Recreation Services $1.4M

Note: Totals may not add due to rounding

Total $47.9M

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Budget needed to achieve results Sport and Recreation services are primarily funded through property taxes, with approximately 30 per cent of the costs covered by user fees and charges. The 2025 capital program is financed through a combination of debt financing and capital reserves.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

12,475 4,726 171 79 494 17,944

14,365 4,628 165 78 676 19,912

1,750 38 — — (618) 1,170

595 159 — 2 17 773

106 27 — 24,965 978 26,076

16,815 4,852 165 25,046 1,053 47,931

7,267 4,334 2,993 — — 1,125 2,225 17,944

8,608 4,832 3,591 — — 862 2,019 19,912

40 (712) 15 — — — 1,828 1,170

366 46 27 — — (45) 379 773

26 4 — — 25,943 — 104 26,076

9,039 4,169 3,633 — 25,943 817 4,329 47,931

5.8 73.8 7.7

5.0 86.5 9.0

— 0.5 —

— — —

— 0.3 —

5.0 87.3 9.0

87.3

100.5

0.5

—

0.3

101.3

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Sport & Recreation capital $25.9M

Other revenue $25.0M Salaries and wages $9.0M Property tax $16.8M Enabling allocation $4.3M Fees and charges $4.9M Material and other $4.2M Transfers from reserve $1.1M Contract services $3.6M Grant $0.2M Transfers to reserve $0.8M

Total $47.9M Note: Totals may not add due to rounding

Total $

47.9 M

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2025 Operating Requests ($ thousands) Priority 1 Description Events Procurement and Delivery Operating and Maintenance Impacts from Capital Requests Operating Requests Priority 1 Total

2025 27 3

2026 76 13

2027 76 13

2028 76 13

2029 76 13

2025

2026

2027

2028

2029

2025 Capital Requests ($ thousands) Priority 1 Description Programs * Recreational Park Infrastructure & Facilities Projects Community Activity Centres - Glenmore Activity Centre Community Activity Centres - Mission Activity Centre Community Activity Centres - Activity Centre at Rutland Lions Park Parkinson Recreation Centre Redevelopment Mission Recreation Park Capital Request Priority 1 Total

205

—

Total Project 24,229

2,415

8,454

10,870

2,415

—

27,784

2,750

9,626

12,378

2,750

—

22,800

1,140

7,980

10,260

2,280

189,100 5,543

18,660 773

65,230 3,140

84,000 1,570

18,660 —

— —

269,456

25,943

87,590

116,798

34,085

2,280

* denotes capital request has operating & maintenance impacts included in the request

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2025 Operating Request Details Service Area: Sport & Recreation

Priority 1

Title: Events Procurement and Delivery Justification:

Enhance ON-GOING PRELIMINARY

The number of permitted outdoor events has steadily risen over the past three years, increasing approximately 19 per cent to 186 events in 2024. Additionally, several major events have been procured in that timeframe including the Montana's Brier (2025) the Canadian Country Music Awards (2025) and the BC Summer Games (2026), with others being actively pursued. The Event Services branch is seeking additional staff resources to assist with the processes related to major event procurement, post-procurement development, and successful event delivery. To effectively meet these objectives, budget is requested for one Community Development Coordinator position to assist in the procurement and development of new large scale, participant-based or spectator major events.

Strategic Direction:

Economy

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

27,100

2026 2027

Utility

Taxation

—

Other Revenue (27,100)

—

76,100

—

(76,100)

—

76,100

—

(76,100)

—

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2025 Capital Request Details Service Area: Sport & Recreation

Priority 1

Title: Recreational Park Infrastructure & Facilities Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program to maintain and enhance park infrastructure and facilities that is beyond its service life, or the purchase of new equipment to meet current needs or regulatory changes. Annual items for consideration may include, but are not limited to, recreational services equipment and fixtures, bleachers, netting and batting cages.

Strategic Direction:

Other

Year

Cost

Reserve

2025

205,000

(205,000)

Cost

Reserve

2,500 12,500 12,500

— — —

Operating Impacts: Year 2025 2026 2027

DCC Reserve —

Borrow

Grant

—

DCC Reserve — — —

Borrow

Grant

— — —

Service Area: Sport & Recreation

Other Revenue —

Utility

Taxation

—

Other Revenue — — —

Utility

Taxation

— — —

(2,500) (12,500) (12,500)

Priority 1

Title: Community Activity Centres - Glenmore Activity Centre Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the building of a new activity centre in Glenmore Recreation Park as part of the Building a Stronger Kelowna initiative. Project includes design and new build; associated site works and childcare centre.

Strategic Direction: Year 2025

Other Cost

Reserve

2,415,000

—

DCC Reserve —

Borrow

Grant

(2,415,000)

—

Other Revenue —

Utility

Taxation

—

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2025 Capital Request Details Service Area: Sport & Recreation

Priority 1

Title: Community Activity Centres - Mission Activity Centre Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the building of a new activity centre in Mission Recreation Park as part of the Building a Stronger Kelowna initiative. Project includes design and new build; associated site works and childcare centre.

Strategic Direction:

Other

Year

Cost

Reserve

2025

2,750,000

—

DCC Reserve —

Borrow

Grant

(2,750,000)

—

Service Area: Sport & Recreation

Other Revenue —

Priority 1

Title: Community Activity Centres - Activity Centre at Rutland Lions Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for the construction of a new activity centre at Rutland Lions Park, on the site of the 155 Gray Road leased facility that was destroyed by fire. This $22.8 million project includes design, site preparation, and construction, and will be partially funded by insurance proceeds. In addition, the City has applied for grant funding under the ChildCareBC New Spaces Fund. If successful, the funds will be used to add a childcare centre to the new facility. This project will be managed in coordination with the Building a Stronger Kelowna initiative.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,140,000

—

DCC Reserve —

Borrow

Grant

(1,140,000)

—

Other Revenue —

Utility

Taxation

—

242

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2025 Capital Request Details Service Area: Sport & Recreation

Priority 1

Title: Parkinson Recreation Centre Redevelopment Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for the replacement recreation centre at Parkinson Recreation Park, as part of the Building a Stronger Kelowna initiative. The facility is intended to become the jewel of the recreational facilities portfolio, while preserving Parkinson Recreation Centre's tradition of offering a warm, welcoming and safe environment for all.

Strategic Direction:

Other

Year

Cost

Reserve

2025

18,660,000

—

DCC Borrow Reserve — (18,660,000)

Grant —

Service Area: Sport & Recreation

Other Revenue —

Priority 1

Title: Mission Recreation Park Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for improvements to Mission Recreation Park. These include the design and construction of a central plaza, youth park, and children's play area as the heart and focal point of the park connected to the rest of the park with an enhanced trail system, as well as replacing end of life LED stadium lighting at the softball complex.

Strategic Direction:

Other

Year

Cost

Reserve

2025

773,000

(459,000)

DCC Reserve (314,000)

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

243

2025 FINANCIAL PLAN

CITY OF KELOWNA

ARTS & CULTURE LED BY: DIVISIONAL DIRECTOR, ACTIVE LIVING & CULTURE

Our goal & community benefit: Our goal is to be a community with a rich variety of highquality arts, culture and heritage experiences that embraces and celebrates diversity, is open and welcoming to all. We foster innovation, attract, and retain people in our workforce and proactively encourage the discovery of new experiences and art forms. We showcase our histories through our people, activities, buildings, landscapes, and stories while tackling challenges critically and creatively. We are leaders in building collaborations and increasing quality of life for future generations. We do this by investing in infrastructure, artists, and non-profit organizations.

Our customers: • • • • • • • •

Residents of Kelowna and across the Central Okanagan Visitors to the region Emerging, aspiring, and established artists and artist collectives Local arts, culture, and heritage organizations Promoters, presenters, and touring artists Audiences Cultural grants program applicants and recipients Other City of Kelowna business units

Our partners: We work with various local organizations, other levels of government and the public/ private sector to develop mutually beneficial relationships. • Local arts, culture, and heritage organizations • syilx/ Okanagan, Metis and urban Indigenous elders, community leaders, organizations, and artists • Strategic facility partners (Rotary Centre for the Arts, Kelowna Art Gallery, Kelowna Museums Society) • Intercultural community groups and members • Local post secondary institutions • Funders, business sector and community capacity builders • Regional, provincial, and national arts service organizations • Cultural grant program recipients • Kelowna Community Theatre volunteers • Other City of Kelowna business units

What we deliver: We facilitate the delivery of programs and services that support cultural development in the community. This includes oversight of cultural policies and plans, organizing special events and convenings, maintaining healthy partnerships with cultural facility operators, community organizations and professional and emerging artists, administering grant programs, and operating the Kelowna Community Theatre (KCT). We create a welcoming and inclusive destination for cultural tourism and art exhibition within Kelowna’s Cultural District. We collaborate with our partners and other City business units on advancing action on Truth and Reconciliation and transforming systems that create barriers to equitable, diverse, and inclusive participation in our community.

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Our key objectives: • • • • •

Foster deliberate investments of time, money and people into demonstrated outcomes Use new and traditional approaches for enhancing the availability, affordability, and accessibility of spaces for culture Animate the community with a blend of programs, services and events that promote artistic excellence and share Kelowna’s history Build on the creative sector’s ability to respond to changing demands and new opportunities Promote ongoing interactions between people, sectors and disciplines

Our guiding plans: • • • • • •

Imagine Kelowna Official Community Plan 2040 2020-2025 Cultural Plan Weaving our Collective Threads: Offering a pathway for syilx creativity within the City of Kelowna Cultural Facilities Master Plan Council and Corporate Priorities

Measuring Performance

Performance measure 1 Arts & Culture investment per capita The per capita investment in Arts & Culture by the City demonstrates the City’s commitment in advancing the cultural vision of the community, as articulated in the Cultural Plan. A $25 per capita investment has been a long-established industry benchmark for municipal investment in Arts & Culture. The City’s goal is to maintain a minimum investment equal to the benchmark, recognizing that it has not been increased in many years to account for inflationary costs. As our population continues to increase, investment will need to keep pace.

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Performance measure 2 Leveraged investment in Arts & Culture Local non-profit Arts & Culture organizations leverage each dollar invested by the City to generate alternative sources of revenue including other grants, sponsorships, funding from other levels of government and earned revenue. This indicator demonstrates the importance of the initial investment in sector sustainability and increased funding diversity with organizations. The goal is to achieve an ongoing increase in the leverage dollars while continuing to grow the direct economic impact of the creative sector of Kelowna.

Performance measure 3 Average Arts & Culture attendance per resident This indicator provides an average count of cultural programs and events that a resident may attend annually. It encompasses only those programs and events that receive support through City grants. This metric aids in understanding whether participation in Kelowna’s creative sector is evolving over time. By using an average attendance per resident, this measure mitigates the population growth bias that can often skew total participation figures. The objective is to achieve a continuous increase in the number of cultural activities attended by the average resident in Kelowna.

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Performance measure 4 Kelowna Community Theatre average fill rate The fill rate at Kelowna Community Theatre refers to the percentage of tickets sold to mainstage performances compared with the capacity available for audiences at Kelowna Community Theatre. The rate provides one indicator that the shows being offered are of interest to community members and that shows are right sized for the venue type. Additionally, increased fill rates will typically mean non-tax based revenues for theatre operations are increasing. The goal would be to maximize the average fill rate while balancing our goal for cultural development by supporting less popular genres and emerging performers.

Performance measure 5 Kelowna Community Theatre facility capacity The Kelowna Community Theatre facility capacity considers the total number of days available for mainstage theatre rentals compared with the number of days rented. The rate provides an indicator of the current usage of the facility and our capacity to increase non-tax-based rental revenue in future years. The theatre is generally considered to be operating at or near capacity. The goal would be to maximize theatre rentals and eventually achieve closer to 100 per cent of available rental days.

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2025 Activities by priority: Priorities

Activities

Climate & Environment

•

Economy

• •

Our People

•

• Digital Transformation

•

Active Financial Management Base Business

• •

Apply a thematic lens to the Art@KCT Program to bring focus to and to encourage thoughtful dialogue on the issues of climate & environment Develop a Cultural District Business Plan that leverages the value of a thriving arts and culture sector Update to the 2019 Economic Impact Assessment in preparation for the new Cultural Plan Development Continued progress of the Kelowna Community Theatre Centre of Excellence partnership for the advancement of Theatre Technician recruitment and training (multi-year) Development of the formalized ‘Learning Journey’ program for City of Kelowna employees working to advance knowledge and action toward Truth and Reconciliation (multi-year) Completion of the future resourcing plan including a long-term staffing model and succession plan for Cultural Services Development of a community calendar platform to encourage the community to participate more broadly in arts, culture and heritage events and activities throughout the community Expansion of ticketing into the community through the newly launched ‘theboxoffice.ca’ and added satellite ticket services Activating the arts, culture, and heritage sector through a variety of communitybased supports, services and programs that enhance the vibrancy and wellbeing of the community Operations of the Kelowna Community Theatre and community box office services Building collaborations and partnerships with local Indigenous communities, leaders, and organizations toward meaningful reconciliation actions

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2024 Key accomplishments: • • • •

•

• •

Implemented a new Winter Banner Program along Water Street featuring 27 poles of three designs and four companion designs created by local artists Hosted a community-to-community forum in support of the Memorandum of Understanding with Westbank First Nation to open dialogue and renew relationships towards a shared future agreement Invested over $690,000 in technology upgrades at KCT including a high-resolution projector and dynamic lighting console Advocated to key Provincial and Federal stakeholders concerning the MacDougall Creek wildfire impact on current and future sustainability of local arts events and organizations to help open the dialogue on the impact of largescale disasters on cultural events Hosted the largest iteration of the annual local nonprofit governance and capacity building conference (ReImagine) which supported an audience of 240, represented 135 non-profit organizations, offered 16 educational sessions, and 22 dynamic speakers each representing diverse areas of expertise, including industry leaders and community builders Introduced the Volunteer Incentive Program (VIP) to recognize over 160 volunteers providing over 14,500 hours of essential theatre front of house operations Launched ‘theboxoffice.ca’ in Q4 as the new website to expand community ticketing services

Continuous improvements: • • • • • •

Ongoing implementation of the 2020-2025 Cultural Plan and Cultural Facilities Master Plan Provide sector support through responsive granting programs and capacity building activities Continuous assessment of audience experience at KCT through specialty concession options, enhanced marketing and ticket promotions, and the Art@KCT exhibitions Ongoing support to build knowledge and act on key principles of equity, diversity and inclusion and Truth & Reconciliation through many training opportunities for staff Utilize arts and culture as a conduit to reflect, respond and drive systems level change Provide support to the Mayor’s Task Force on a new Performing Arts Centre through collaboration with the community and user groups

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Arts & Culture, $7.3M

Cultural Services $3.2M Community Theatre $2.2M Arts & Culture Capital $1.9M

Note: Totals may not add due to rounding

Total $7.3M

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2025 FINANCIAL PLAN

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Budget needed to achieve results Arts & Culture are primarily funded through property taxes, with approximately 37 per cent of the costs covered by revenues from concession sales, facility rentals and ticket administration fees from the Kelowna Community Theatre box office. Additionally, the theatre collects a $2 Capital Improvement Fee (CIF) on ticket sales to fund future upgrades and maintenance. These CIF revenues are reserved until required for specific projects.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

3,201 1,564 — — 37 4,802

3,341 1,577 — — 200 5,118

90 84 — — (200) (26)

197 80 — — 599 876

15 — — — 1,305 1,320

3,643 1,742 — — 1,904 7,288

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

1,164 858 1,805 — — 392 584 4,802

1,444 977 1,870 — — 320 508 5,118

81 (193) 20 — — — 65 (26)

67 98 118 — 569 (32) 56 876

— — — — 1,305 — 15 1,320

1,592 882 2,008 — 1,874 288 645 7,288

Operating FTE positions: Management Union hourly Unionoperating salary FTE Total positions

3.0 8.8 1.0 12.8

3.0 10.4 1.0 14.4

— 0.5 0.5 1.0

— — — —

3.0 10.9 1.5 15.4

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Contract services $2.0M Arts & Culture capital $1.9M

Property tax $3.6M Salaries and wages $1.6M Transfers from reserve $1.9M Material and other $0.9M Fees and charges $1.7M Enabling allocation $0.6M Transfers to reserve $0.3M

Total $7.3M

Note: Totals may not add due to rounding

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2025 FINANCIAL PLAN

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2025 Operating Requests There are no 2025 Priority 1 Preliminary Operating budget requests for this service area.

2025 Capital Requests ($ thousands) Priority 1 Description Programs Community & Culture Facilities Placemaking

2025

2026

2027

2028

2029

569 1,305

230 705

230 887

230 110

230 —

Capital Request Priority 1 Total

1,874

935

1,117

340

230

* denotes capital request has operating & maintenance impacts included in the request

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2025 Capital Request Details Service Area: Arts & Culture

Priority 1

Title: Community & Culture Facilities Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program of the replacement of old equipment that is beyond its service life, or the purchase of new equipment to meet current needs, or regulatory changes. This equipment is for any of the Cultural facilities, including: Kelowna Community Theatre, Art Gallery, Rotary Centre for the Arts, and others.

Strategic Direction:

Other

Year

Cost

Reserve

2025

569,000

(569,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Arts & Culture

Other Revenue —

Priority 1

Title: Placemaking Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program to plan, design, and install art, monuments, signage or other significant pieces that inspire and deepen the connection of people to places in parks and open spaces.

Strategic Direction: Year 2025

Other Cost

Reserve

1,305,000

(1,305,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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2025 Operating Requests ($ thousands) Priority 2 Description Cultural District Vision and Business Planning Operating Requests Priority 2 Total

2025 100 100

2026 — —

2027 — —

2028 — —

2029 — —

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2025 Operating Request Details Service Area: Arts & Culture

Priority 2

Enhance ONE-TIME PRELIMINARY

Title: Cultural District Vision and Business Planning Project Justification:

Kelowna's Cultural District, established in the 1990's, is a walkable hub that contains the majority of Kelowna's cultural institutions and a growing assortment of artistic experiences. Budget is requested for a Cultural District Vision and Business Planning project. In alignment with the Cultural Plan, an opportunity exists to leverage the value of a thriving Cultural District through a shared vision with the community and cultural stakeholders, brand recognition, placemaking activities, strategic decisions about the possibilities of the area including exploration of possible partnerships and planned programming and infrastructure enhancements. Residents, area businesses, developers, artists and visitors will benefit from articulating this shared vision for the future. This request would increase taxation demand in 2025 by 0.05 per cent.

Strategic Direction:

Active Financial Management

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

100,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(100,000)

—

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2025 FINANCIAL PLAN

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COMMUNITY DEVELOPMENT LED BY: DIVISIONAL DIRECTOR, PLANNING, CLIMATE SUSTAINABILITY & DEVELOPMENT

Our goal & community benefit: Our goal is to provide long-term planning, sustainability and development-related services to our community. By 2040, the community vision is to be a thriving mid-sized city that welcomes people from all backgrounds. We want to build a successful community that honours our rich heritage and also respects the natural wonders that contribute to our identity. As a place with deep agricultural roots, Kelowna understands the need to protect the environment, manage growth and be resilient as our future unfolds. The 2040 Official Community Plan (OCP) is a foundational plan to help realize this vision by leveraging growth to make our community more resilient and inclusive and to enhance the quality of life for all Kelowna citizens.

Our customers: • • • • • • •

All of our community, both current and future generations Vulnerable populations, including lived & living experience, individuals experiencing homelessness, Indigenous community Business owners Social serving sector Industry members and investors Other City departments Council

Our partners: We work with our citizens, various local organizations, other levels of government and the private sector to build our community.

What we deliver: We develop leading-edge planning policies based on extensive research in land use, housing, built and natural environments, heritage, and data analytics to build a foundation for strong and diverse neighbourhoods. We set the course for Kelowna’s future by anticipating trends, understanding best practices and shaping innovative policies for short and long-term community goals. Our team works to balance development with considerations of climate change and protection of the natural environment. To do so, we develop and implement policies and programs to reduce community greenhouse gas (GHG) emissions, build climate resilience, protect and restore the City’s natural ecosystems, and shift to a circular economy. We also work with other departments at the City to embed climate and environmental considerations into corporate initiatives. Social Development closely monitors social issue trends and provides strategic advice and to respond to unmet and emerging social issues. This group also aims to increase the capacity of various community organizations to contribute to a whole-systems social approach that responds to emerging community need.

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Our key growth management objectives: • • • •

Develop and manage the City’s growth strategy through implementation of and regular updates to our Official Community Plan Strategically monitor the City’s growth strategy to measure progress towards achieving long-term goals and objectives Update and develop new neighbourhood and area plans to ensure that growth and development is being guided in a way that enhances quality of life for residents Create a favourable policy environment to ensure that housing needs of all Kelowna residents are met through affordable, accessible and diverse housing options

Our key social development objectives: • • • •

Drive lasting change through evidence-based approaches to social development to achieve sustainable equity and belonging Support and connect local change makers to facilitate collective action among diverse leaders to solve major community challenges, i.e., homelessness Remove barriers so all citizens can journey toward their full potential Advance opportunities and advocacy for upstream initiatives and investments within the City, the sector, and the broader community

Our key climate and environment objectives: • • • •

Lead efforts to reduce community greenhouse gas emissions in line with community targets Develop policies and programs that build resilience to local climate hazards (e.g., floods, wildfires, extreme heat) Develop policies and programs to ensure growth is balanced with protection and restoration of the City's natural ecosystems Expand the urban tree canopy in line with community targets

Our guiding plans: • • • • • • • • • • •

Imagine Kelowna 2040 Official Community Plan Transportation Master Plan Healthy Housing Strategy Community Climate Action Plan Sustainable Urban Forest Strategy Agriculture Plan Urban Centre and Local Area Plans Journey Home Strategy Community Safety Plan Clean Air Strategy

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Measuring performance: Performance measure 1 Delivering housing supply This measure shows the number of new homes built, compared to official housing targets. This is an anchor measure that is vital in understanding whether enough new homes are being built to meet the needs of a growing population. Adequate housing supply is a foundation to a healthy housing system. Without enough new homes to meet growing demand, any actions to address housing affordability and homelessness are made much more difficult. Housing targets were just recently established, with tracking beginning in July of 2024. However, the first months of data indicate a positive outlook for new home completions. New home completions appear to be on track to meet the first year’s targets. Staff are developing a Housing Action Plan to identify new actions and strategies to improve the community’s housing outcomes, with a particular focus on City initiatives. Many of these initiatives will work to improve the community’s ability to meet or exceed our housing targets. Housing target years are from July 1st – June 30th. Official housing target cumulative totals are listed below. The targeted annual number of occupancy permits required to meet the cumulative totals are shown on the graph. • • • • •

Year 1 Cumulative Target: 1,363 Year 2 Cumulative Target: 2,856 Year 3 Cumulative Target: 4,545 Year 4 Cumulative Target: 6,496 Year 5 Cumulative Target: 8,774

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Performance measure 2 Provide diverse housing options This measure shows the share of total new homes that were issued building permits that were in apartment buildings as compared to ground-oriented housing options (e.g., townhomes, detached homes). A resilient community has a wide variety of housing options available to meet the needs of residents at different price points and different life stages. Recent years have seen a more significant shift towards multi-unit housing, particularly in the form of low-rise apartments, providing a more balanced offering. These forms of housing are typically less costly than single detached housing and come in a larger variety of sizes, configurations and price points. Elevated levels of apartment construction have been observed in recent years. High levels of apartment housing construction are expected to continue to drive the housing market for the coming year. However, overall levels of housing construction are expected to decline from 2022/23 peak levels as broader macro-economic conditions weigh on the housing market. Staff are continuing to review process, regulatory options, incentives (e.g., tax exemptions) and programs (e.g., Middle Income Housing Partnership) to make multi-unit housing easier and more affordable. Revised targets for housing variety are being developed to reflect revised growth projections and updated Housing Needs Assessment as required by new provincial legislation. A new target will be incorporated into the updated Official Community Plan in 2025.

Performance measure 3 Individuals transitioning from HEARTH sites to supportive or market housing The City, through an MOU with the Province and its Homelessness Encampment Response Temporary Housing (HEARTH) program has provided 180 units of temporary housing to help people transition out of homelessness. Temporary Transitional Housing | City of Kelowna

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Performance measure 4 Expanding the urban tree canopy Urban forest tree canopy coverage, a measure of tree coverage in cities, is estimated as the per cent of land covered by trees when viewed from above. Tree canopy coverage for five Growth Strategy Districts was measured against established targets to reflect different development patterns and growth projections expected within each district. Increasing the urban tree canopy is a desired result of the Climate & Environment Council Priority. An expanded urban forest is desirable because trees provide many benefits, like cooling the urban heat island, filtering polluted air and water, diverting floods, and improving people's physical and mental health. Baseline tree canopy coverage data was established in 2023 using LiDAR and imagery to map individual tree canopies. Canopy coverage varies by district, with lower coverage in highly developed areas such as the Gateway District (10 per cent), Urban Centres (12 per cent) and the Core Area (15 per cent), and higher coverage in Suburban (20 per cent) and Rural (27 per cent) areas. The Sustainable Urban Forest Strategy proposes that by 2050, canopy cover should reach:20 per cent in Urban Centres and the Core Area, 25 per cent in Suburban and Rural areas, and 15 per cent in the Gateway. Staff recently completed the Sustainable Urban Forest Strategy, which outlines actions to expand the urban forest.

Performance measure 5 Social development grants distributed in community Community Social Development grants are available to registered non-profit, Kelowna-based organizations that make an impact on the social well-being and resiliency of the community. The goal is to make funding available to organizations offering services or programs with the goal of generating, promoting or accelerating socially beneficial services or programs in Kelowna. Strategic investments in diverse, equity seeking agencies and programs help to build a strong and resilient community.

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Performance measure 6 People experiencing unsheltered homelessness Housing is a fundamental social determinant of health, which can prevent ill health and support well-being and community inclusion. The experience of homelessness impacts not only one’s individual health, but also community functioning and the wellness of all. Understanding the inflows and outflows of homelessness in Kelowna is key to informing appropriate policy development, advocacy efforts and a coordinated response. As we work towards achieving real time, person-specific data, Bylaw Services continues to conduct a daily count of the number of people sheltering outside in key locations across the community. While this information does not reflect a point-in-time count for the City as a whole, it provides an opportunity to monitor trends and changes in community needs. When comparing the average number of people sheltering outside in October 2022 (167) and October 2023 (238),the result is a 43 per cent increase.

Performance measure 7 Focusing growth in urban centres and the core area This measure shows the share of total new homes that are being built in the Urban Centres and Core Area compared to the rest of the city (Gateway, Suburban Neighbourhoods and Rural Lands). The Official Community Plan (OCP) targets 73 per cent of future residential growth to be located in the five Urban Centres and the Core Area. This allows the City to grow in an economically and environmentally responsible way, while avoiding urban sprawl. This number is anticipated to fluctuate above and below the target from year to year, with an anticipated increase later in the OCP’s lifespan. The share of growth over the past few years has increased significantly, but with development slowing, staff will be monitoring shifts in the coming years.

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2025 Activities by priority: Priorities

Activities

Crime & Safety Affordable Housing

• • • • • •

Homelessness

• • • • • •

Transportation

•

Agriculture

• •

Climate & Environment

• • • • • • •

Economy

•

Base Business

• • • • •

Participate in the implementation of the Community Safety Plan Implement the updated Housing Action Plan Complete the first official Housing Targets Report Complete the first two projects in the Middle Income Housing Partnership to Building Permit stage Deliver progress reporting on Official Community Plan housing policy Update the Official Community Plan to incorporate new housing targets and align with Provincial Legislation Revise housing targets through the Urban Centres Framework Oversee the roll out of 60 rapid safety net housing units to bridge people from shelters to permanent housing Implement an ‘every door is the right door’ approach to connect people with appropriate housing and supports Enhance data utilization and collection through a unified information management system for housing and shelter providers Advance opportunities & advocacy for upstream initiatives & investments within the City, the sector & broader community In response to the Mayor’s Task Force recommendation, expand the Community Social Development Grant program to support existing treatment and recovery programs Advance new policy direction and zoning regulations to support housing along Transit Supportive Corridors Update the Agricultural Land Use Inventory (ALUI) dataset Complete an agricultural signage program Implement priority initiatives of the Climate Resilient Kelowna Strategy Implement priority initiatives of the Sustainable Urban Forest Strategy Continue to develop and expand criteria to apply a climate lens to development applications and capital planning Finalize a strategy outlining Kelowna’s approach to adopt the higher steps of Energy Step Code and Zero Carbon Step Code Develop a strategy to monitor sensitive ecosystems Continue to expand the public electric vehicle charging network and seek funding opportunities to reduce costs Expand the Home Energy Navigator Program to support homeowners through the complicated retrofit journey Develop new policy direction and targets for employment growth in Urban Centres through the Urban Centres Framework Deliver progress reporting on industrial, office and retail vacancy rates Update the Official Community Plan as required by Provincial Legislation Advance the Urban Centres Framework to guide and prioritize urban centre planning efforts Implement the North End Neighborhood Plan alongside the Mill Site Area Redevelopment Plan Expand on growth strategy data for more robust data analytics

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2024 Key accomplishments: Growth Management • • • • • • • • • • • • • •

Coordinated the effort to meet new provincial housing legislation Implemented new Fast-Track for Infill Housing program, including public education and AI integration via chatbot Supported the roll-out of provincial housing targets at the local level Hosted the Infill Housing Symposium and Middle School events to support residents and industry interested in participating in developing infill housing Support housing-related infrastructure investments totaling $830,000 Provided over $3 million in grants as an incentive to new non-market affordable housing projects, resulting in grants for over 300 units of affordable housing Updated the Housing Needs Assessment to meet provincial standards Developed a new Housing Action Plan alongside the Social Development team to coordinate major actions that will improve housing outcomes in the community Hosted a series of major public and industry education events related to infill housing, including the Infill Housing Symposium and Middle School Delivered the second annual Official Community Plan and Transportation Master Plan Progress Report Delivered the North End Plan for Council’s consideration Delivered the Urban Centres Framework Community Trends Report Initiated the development of jobs and employment estimates and projections to inform future planning efforts Launched the Transit Supportive Corridor planning process

Climate and Environment • • • • • • • • •

Completed the Climate Resilient Kelowna Strategy Completed the Sustainable Urban Forest Strategy Supported the completion of the regional Sensitive Ecosystem Inventory Initiated the Home Energy Navigator Pilot Program to engage and support homeowners throughout their retrofit journey Implemented Electric Vehicle Ready charging requirements for new residential developments Continued to expand the public electric vehicle charging network (e.g., new stations at the Pandosy Street Lot) Launched a green business certification program in partnership with GreenStep Solutions Developed initial criteria for applying a climate lens for rezoning applications, with additional criteria and applications planned in the future Implemented active transportation and transit projects in line with the Transportation Master Plan (TMP) to support emissions reduction efforts. More information on transportation projects completed in 2024 can be found in the Transportation section of this financial plan.

Social Development • • • • • •

Established 120 new units of rapid safety net housing units through the HEART and HEARTH program Advanced Indigenous PEER Navigator Program and Indigenous Harm Reduction Team in partnership with community agencies Supported the expansion of the Emergency Transit Assistance Program to provide increased equitable transit accessibility for community members Complex care beds opened as a result of advocacy Advanced the Kelowna Food Innovation Project including establishing three pilot action oriented projects to address food insecurity Signed a two year partnership agreement with the Central Okanagan Foundation to improve data quality and sources necessary to inform planning and increase flow within the shelter and housing system

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Continuous improvements: • • • •

• •

•

• • •

•

Improve data quality and data sources to establish better measurement of needs and progress related to housing and homelessness Refined and adapted ModelCity to develop a new residential growth scenario, using new tools and considerations Complete review of the City’s Social Development Grants to ensure alignment with Council priorities and community needs Enhance proactive planning as it relates to extreme weather responses, with a line of sight on the needs of community, early detection of the trends in homelessness, movement patterns for outdoor sheltering, gaps and/ or overlaps in services, and funding requirements and sources Key Performance Indicators (KPI): establish KPIs that can be used to inform decision making and track progress on environmental initiatives (e.g., KPIs related to climate resilience and adaptation) Communication and Awareness: ensure others in the organization and community are aware of the existence and purpose of Climate Action & Environment Department by establishing an interdepartmental Climate Action Team to ensure implementation of climate-related initiatives across the organization Applying a Climate Lens: leverage City data to drive evidence-based decision making by initiating the development of 'ModelCity Climate' that can determine environmental/climate impacts in the community at a more granular level Examining new tools and technology to gather data and development statistics that will enable us to improve processes, systems, and monitoring Improving data inputs into ModelCity, so that staff across numerous business units have access to future growth scenarios to make evidence-based decisions/recommendations Modernizing the City's traditional planning processes to be nimbler and more responsive to a changing and evolving context. The Urban Centres Framework is an example of proactively examining future growth needs across all Urban Centres that will streamline and condense the individual Urban Centre plans in future years Innovative AI use to improve development applications

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Community Development, $4.4M

Social Development $1.6M Housing Policy and Programs $1.2M Long Range Policy Planning $0.8M Climate Action & Environmental Stewardship $0.8M

Note: Totals may not add due to rounding

Total $4.4M

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Budget needed to achieve results Community Development is funded through property taxes, with partial financial support from the Regional District of the Central Okanagan for regional air quality programs. Grant funding from FortisBC further supplements the budget, specifically for energy improvement initiatives.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

3,559 32 1,099 171 339 5,201

4,171 10 544 370 1,743 6,837

(201) — (443) (204) (1,743) (2,590)

21 (10) — 58 — 70

44 — — — — 44

4,035 — 101 224 — 4,361

1,788 1,718 685 — — 371 638 5,201

2,164 3,269 413 — — 300 692 6,837

106 (2,093) (243) — — — (360) (2,590)

104 (66) (1) — — — 33 70

— 35 — — — — 9 44

2,373 1,144 170 — — 300 373 4,361

5.3 1.8 7.3

7.0 2.7 8.0

— 1.0 —

— — —

7.0 3.7 8.0

14.4

17.7

1.0

—

18.7

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Salaries and wages $2.4M Property tax $4.0M

Material and other $1.1M

Other revenue$0.2M

Enabling allocation $0.4M

Grant $0.1M

Transfers to reserve $0.3M Contract services $0.2M

Total $4.4M

Note: Totals may not add due to rounding

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2025 Operating and Capital Request Details This service area has no Priority 1, 2025 budget requests

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DEVELOPMENT SERVICES LED BY: DIVISIONAL DIRECTOR, PLANNING, CLIMATE SUSTAINABILITY & DEVELOPMENT

Our goal & community benefit: Our purpose is to provide compliance reviews on building and civil infrastructure plans, permits, and business licences, as well as provide inspection oversight during the construction/development process.

Our customers: • • • • •

Builders, plumbers, and contractors Business owners Architects, engineers, and building designers Realtors, lawyers, and other registered professionals Property owners

Our partners: We work with our citizens, licenced builders, engineers, third party service and utility agencies, industry associations, and other levels of government.

What we deliver: We develop and implement operational policies, processes, and practices to ensure compliance with bylaws, codes, regulations, and Council policies with respect to building/development approvals and business licensing in the City. These rules govern the development process for road construction, utilities installation, building construction, and the licensing of businesses in buildings through to completion and occupancy.

Our key objectives: • • • • •

Provide excellence in customer service Inspect permitted activities for compliance with approved plans Review applications for civil infrastructure design and construction for compliance Promote new business and contribute to our vibrant community Review business licence applications for compliance with the zoning bylaw and other relevant bylaws

Our guiding plans: • • • •

Municipal Bylaws: Building, Subdivision and Development Servicing, Zoning & Business Licensing Area Structure Plans Urban Centre Plans Official Community Plan

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Measuring performance: Performance measure 1 Inspections completed within 24 hours of request The Development Services Department has a goal to complete 96 per cent of building, plumbing & gas inspections within 24 hours of booking. This ensures excellence in customer service and assists projects to progress without unnecessary delays between stages of construction.

Performance measure 2 Single family dwelling building permits processed and issued within 10 days The Development Services Department completes 96 per cent of Single Family Dwelling building permit packages for constructions that provide one or two dwelling units within 10 business days of a complete application. These stats are monitored through a third party, the International Accreditation Service, to help us achieve exemplary customer service.

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Performance measure 3 Fast track program permits issued within two days The City of Kelowna is the leading community to run the Fast Track Program, issuing smaller building permit subtypes that do not require an in-depth review within two business days of complete application for permits such as: garage, secondary suite, addition, etc. These stats are also monitored through the third party auditing organization, the International Accreditation Service, assisting us to excel in our exemplary customer service and effectively promote better business.

Performance measure 4 New business licences issued within two weeks The Business Licensing team is focused on continuing to provide excellent customer service to the growing business community in Kelowna. This department aims to process 85 per cent of new business licence applications in two weeks or less. Over the past four years, the Business Licensing team has seen year-over-year increases in the number of business licences issued in under two weeks.

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Performance measure 5 Utility and building permit drawings reviewed within two weeks of submission Applications reviewed by Development Engineering correlate with higher value, complex projects with on-site engineering requirements. These add value by giving confidence in the systems that support citizens’ dwellings and workplaces in meeting established engineering standards. These reviews vary significantly in complexity, however, the target is to have 80 per cent of all projects reviewed within two weeks of submission.

Performance measure 6 Engineering drawings approved within two submissions Reduced number of submissions required to achieve design approval indicates that the Development Engineering department has set clear requirements and provides high-quality, comprehensive, integrated, and accurate reviews early in the development process. This gives cost certainty for developers and results in fast approval and reduced costs for development. While drawing applications vary in complexity, Development Engineering aims to have 75 per cent of all drawing applications approved for construction within one re-submission (two total submissions).

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2025 Activities by priority: Priorities

Activities

Crime & Safety

• • • • •

Affordable Housing

Homelessness

•

Transportation

• •

Climate & Environment

• • •

Economy

•

Our People

•

Digital Transformation

• • • •

Active Financial Management Base Business

• • • •

Support the operations of the Property Standards & Compliance team Collaborate to prepare a comprehensive approach on Community Fire Safety Collaborate with Bylaws Enforcement Department to create process efficiencies Expedite permit process and approval times for affordable housing Develop additional tools to facilitate predictable and lower development costs for affordable housing Work with third party agencies to expedite and find solutions for permitting temporary housing Deploy streetscape urbanization program to complete streets in high growth areas of Kelowna’s core Support the operation of the Agricultural Standards Compliance Team to reduce conflicting land uses on farm land Continue to provide incentives for mid-stage blower door testing New software and processes to further reduce our carbon footprint Collaborate with external and internal stakeholders promote grants and incentives for greener homes Continue to look for efficiencies in the business licence system to promote small business growth in the City Formalized monthly training sessions to help staff stay current on best practice and meet regulatory requirements for continuing education Digital Plan review process with 24/7 service delivery Support for AI chat bot RSM customer application portal Continue to adapt the CityWorks Permitting, Licensing and Land Management (PLL) software Fine tune business licence fees Work with Long-Range Planning to address infrastructure priorities in conjunction with the Infill Challenge to help support responsible densification Update internal templates to improve standardization and automation through our workflow to increase efficiency and improve consistency and quality of work As the first community in all of Canada to be accredited by the International Accreditation Service, we will continue to maintain accreditation status for the building permitting branch

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2024 Key accomplishments: • • • • • •

Obtained the annual renewal of permitting branch accreditation from International Accreditation Service Replacement of Business Licence (BL) Bylaw No. 7878. The result is a new streamlined BL Bylaw that is more modern and user-friendly Improvement to the online business licence application process to drive more online applications and support 24/7 service delivery Implemented the new CityWorks PLL permitting software Enhanced the Property Information Request application process using a digital tool to create greater efficiencies Improvements to the Addressing process through digital transformation

Continuous improvements: • • • • • •

Update Building Bylaw and improve online application process Update the Addressing Bylaw Transitioning to digital plan submission and review Continued automation of internal business processes Advancing efforts to integrate AI and automation into daily processes Accept all forms of payment at One Window

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Development Services, $7.5M

Building & Permitting $2.4M Building Inspections $2.2M Development Engineering $1.4M Business Licence $1.2M Development Services $0.4M

Note: Totals may not add due to rounding

Total $7.5M

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Budget needed to achieve results Development Services is a revenue-generating service area with revenue from activities such as permitting, licensing, and development fees used not only to cover operating costs but also to contribute to broader municipal planning efforts. However, significant revenue declines are anticipated in 2025 due to regulatory changes affecting short-term rentals, reduced cannabis licensing fees, and a slowdown in construction activity, which impacts building permit income. These fluctuations are expected, and reserves have been established to cushion the financial impact. In 2025, these reserves will be used as a temporary measure to balance the budget until market conditions improve. Annualized Maintaining Enhancing Preliminary $ thousands Actual 2023 Revised 2024 Budget Service Service 2025 Revenue budget: Property tax (12,139) (5,315) (167) 473 16 (4,993) Fees and charges 18,294 12,603 64 (2,704) — 9,962 Grant — — — — — — Other revenue — — — — — — Transfers from reserve — 20 (20) 2,500 — 2,500 Total revenue budget 6,155 7,308 (123) 268 16 7,470 Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

4,852 405 84 — — — 814 6,155

5,756 714 62 — — — 776 7,308

65 (21) — — — — (167) (123)

251 (80) 38 — — — 60 268

— — — — — — 16 16

6,071 613 100 — — — 685 7,470

4.5 2.2 40.4

6.5 — 45.0

0.5 — —

— — —

7.0 — 45.0

47.1

51.5

0.5

—

52.0

Note: Totals may not add due to rounding The difference between the two graphs below is the $5.0 million surplus earned by this service area that is used to offset taxation funds required for other community services areas and infrastructure such as Buildings, Transportation, and Community Development.

Funding strategy

Expenditure by type Salaries and wages $6.1M

Fees and charges $10.0M

Enabling allocation $0.7M

Transfers from reserve $2.5M

Material and other $0.6M Contract services $0.1M

Total $12.5M Note: Totals may not add due to rounding

Total $ 7.5 M

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2025 Operating and Capital Request Details This service area has no Priority 1, 2025 budget requests

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DEVELOPMENT PLANNING LED BY: DIVISIONAL DIRECTOR, PLANNING, CLIMATE SUSTAINABILITY & DEVELOPMENT

Our goal & community benefit: Our goal is to provide land use planning and growthrelated direction to the community. The Official Community Plan (OCP) focuses on slowing the outward growth of suburban neighbourhoods, this protects the rural/agricultural lands and environmentally sensitive areas while reducing the amount of new infrastructure that is needed to service growth. Urban centres are prioritized for residential and mixed-use growth.

Our customers: • • • •

Developers, architects, engineers, and planners Builders and contractors Property owners Residents

Our partners: We partner with internal City departments including Development Services, Real Estate Services and Parks Planning. We partner with external partners including the Urban Development Institute, Canadian Home Builders Associations, Utility Providers, and residents’ associations.

What we deliver: We review and process land use and development permit applications and provide advice and information on planning processes to Council and the public. We also promote, implement, and advocate for change that moves the City towards the Kelowna envisioned by Imagine Kelowna and the policy direction of the OCP.

Our key objectives: • • •

Review various applications related to land use change and form and character analysis against Council endorsed regulations and policies Maintain and update regulations, policies, and processes to ensure a streamlined and efficient development application process Prioritize Council, corporate and divisional priorities, such as affordable housing, protecting agriculture and climate/ environment

Our guiding plans: • • • • • •

Official Community Plan Zoning Bylaw Subdivision and Development Servicing Bylaw Development Cost Charge Bylaw Development Application Fees Bylaw Development Application and Heritage Procedures Bylaw

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Measuring performance: Performance measure 1 Development Permit (DP) applications that utilized the existing zone The planning, development and permitting of land and buildings requires the City to balance an efficient development application process with growth management. Development planning pre-zones areas of the City to direct growth and target densities in locations that support the vision in the Official Community Plan. This reduces the time and costs associated with land development and permitting, which supports affordability for housing and businesses. The aim is for 80 per cent of development applications to utilize the existing zone.

Performance measure 2 Development application streamlined approvals Development application timelines play an important role in addressing housing supply and affordability. Shorter timelines support market responsiveness to housing and commercial supply and demand. Developers of residential and commercial property prefer to invest in communities where approval timelines are transparent, reliable, and standardized. The target is for 50 per cent of development applications to be approved through a streamlined approval process.

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Performance measure 3 Residential building permits in growth districts While the Official Community Plan (OCP) provides growth estimates in different areas of the City, development may be faster or slower based on market trends. Monitoring this rate of growth in our urban center helps to make informed decisions about investments in infrastructure, such as transportation and utility servicing, as well as when to initiate urban centre plans. The OCP target is 73 per cent of building permits issued in growth districts.

2025 Activities by priority: Priorities

Activities

Affordable Housing Homelessness

• • •

Implement actions to achieve Housing Accelerator Fund targets Continue to implement and monitor housing related policy and legislation Support City/community sheltering initiatives

Transportation

•

Support the review of transit supportive corridors for additional land use density

Agriculture

• • • • •

Prioritize enforcement efforts for non-farm uses on agricultural lands Explore opportunities to support and house farm labour Lead and coordinate the implementation of the Climate Resilient Kelowna Plan Support the development of a Climate Lens to review land use change applications Implement projects related to Divisional Strategic Plan and Council/Corporate Priorities

Digital Transformation

• •

Active Financial Management

•

Implement CityWorks Permitting, Licensing and Land Management (PLL) Continue implementation and business expansion of KAI chatbot to planning applications Monitor Development Application Fee bylaw to ensure updated bylaw is functioning as intended Monitor density bonus programs and fine tune as necessary Review financial impact of Business Licence Bylaw update Continue to identify and act on opportunities to streamline the development application process for housing delivery

Climate & Environment Our People

Base Business

• • •

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2024 Key accomplishments: • • • • • • • • • •

First municipality in BC to have implemented Bills 44 and 47 in 2024 Reorganized the Development Planning Department to improve service delivery and approvals Updated Procedures Bylaw to increase delegated authority to streamline development approvals Separated rezoning and development applications to reduce upfront costs to new development and housing Neighbourhood Notification, Council policy 367 reviewed and updated Liquor Licensing Policy 359 reviewed and updated to reduce approval timelines for applicants Initiated review of Parking Bylaw to align with Bill 16 in 2025 Initiated review to modernize Signs Bylaw Reviewed and updated Development Application Fees Bylaw Council endorsed development concept for the Mill Site

Continuous improvements: • • • • • • • • •

Incremental changes to development application process to integrate with CityWorks adoption Quarterly amendment packages to Zoning Bylaw and/or OCP to improve accuracy and consistency Updated/streamlined tree inventory procedure for infill developments Improved/updated landscape enhancement standards Updated Planning & Development website Linked MapViewer to updated Planning and Development website Created PDF directory of Development Planning department’s geographic focus areas Held seasonal workshops with development and design community throughout the year to communicate the continuous improvements Development Planning was working on Implemented a delegated development variance permit program to speed up some development application types

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Development Planning, $2.9M

Urban Planning Management $1.3M Suburban and Rural Planning $0.8M Development Planning $0.6M Development Planning North $0.2M

Note: Totals may not add due to rounding

Total $2.9M

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Budget needed to achieve results Development Planning is primarily funded through property taxes, with additional revenue from development permits providing an offset to overall costs.

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

2,037 734 — 27 98 2,896

2,067 830 — — 153 3,050

(83) — — — (153) (235)

123 — — — — 123

7 — — — — 7

2,115 830 — — — 2,945

2,379 135 — — — — 383 2,896

2,528 198 — — — — 324 3,050

(123) (30) — — — — (83) (235)

106 (7) — — — — 24 123

— — — — — — 7 7

2,512 161 — — — — 272 2,945

2.4 5.8 15.0

3.0 1.9 16.0

— (1.7) —

— — —

3.0 0.2 16.0

23.2

20.9

(1.7)

—

19.2

Operating FTE positions: Management Union hourly Union salary Total operating FTE positions

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type

Salaries and wages $2.5M Property tax $2.1M Enabling allocation $0.3M Fees and charges $0.8M Material and other $0.2M

Total $2.9M

Note: Totals may not add due to rounding

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2025 Operating and Capital Request Details This service area has no Priority 1, 2025 budget requests

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PARKING LED BY: DIVISIONAL DIRECTOR, PARTNERSHIPS & INVESTMENTS

Our goal & community benefit: Our goal is to support Kelowna as a safe, vibrant, and sustainable community. Parking management is a key consideration when trying to strike a balance between convenience for citizens and visitors and providing a selffunded system that improves the availability of shortterm parking space.

Our customers: • • •

Community members Local businesses & employees Visitors & tourists

Our partners: We work with institutions, businesses, developers, contractors, equipment vendors, and other City departments to create, operate, adjust, and maintain our parking facilities, equipment, policies, rates, and bylaws.

What we deliver: Parking Services manages over 1,350 on-street pay parking spaces to create or maintain turnover in commercial areas, ensuring customer access to support businesses. In residential areas adjacent to commercial/institutional areas, we manage more than 200 on-street blocks where time limits or residential restrictions are in effect to maintain the integrity of neighbourhoods. We also operate the majority of off-street parking facilities in the City, including three parkades and 24 surface parking lots (approximately 3,200 spaces), that provide longer term employee and resident parking options. Our team also supports public access to electric vehicle (EV) charging through City-owned EV charging facilities, leads future parking planning, and manages the capital plan and related projects for the facilities we operate.

Our key objectives: The City-wide parking management strategy, endorsed by Council, is guided by a set of principles to ensure our parking system: • • • • •

Improves the availability of short-term parking spaces Continues to pay for itself so that general taxation is not impacted Offers customer service options for better customer interaction Provides a balanced transportation network for residents Works with institutions, businesses, and developers

Our guiding plans: • • • • • • •

Imagine Kelowna Official Community Plan Transportation Master Plan Downtown Area Parking Plan Hospital Area On-Street Parking Plan South Pandosy Area Parking Plan Parking Management Strategy

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Measuring performance: Performance measure 1 Revenue to cost ratio: operation of parking system The ratio of parking revenue to the cost of operating the parking system indicates the amount of revenue collected beyond associated expenses. This measure is crucial, as it confirms the parking system is operating in a self-funded manner, capable of supporting debt servicing and providing funding for future capital projects. The goal is to stay level or increase year-toyear in relation to the Canadian median. If the ratio decreases, it suggests expenses are rising faster than revenue, which could necessitate a rate increase beyond the annual CPI value. The Canadian municipal median per the Municipal Benchmarking Network was 1.22 in 2020, 1.17 for 2021 and 1.38 in 2022.

Performance measure 2 Peak capacity of pay parking stalls This measure reflects the peak capacity of managed pay parking stalls, both on- and off-street. As this number nears 100 per cent, it becomes necessary to reduce demand or increase inventory by developing/purchasing new facilities. A value of 60 per cent or less implies there is surplus capacity available, while a value exceeding 85 per cent signals that the parking system may be nearing capacity. In the parking sector, it is commonly accepted that an optimal occupancy rate is 85 per cent, ensuring that one to two spaces are available on each block to reduce the need for vehicles to circle in search of parking.

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Performance measure 3 Blocks with time limits or residential restrictions This measure reflects the number of blocks (sections of road between two intersecting streets) where time limits or residential restrictions are in effect. Once a restriction is implemented, active management and enforcement are necessary. There is no target for this measure and the number of blocks will increase with densification, necessitating additional staff and equipment to effectively manage.

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2025 Activities by priority: Priorities

Activities

Crime & Safety

• • •

Affordable Housing

•

Transportation

• •

• • Climate & Environment

• •

Economy

•

• Our People

•

Digital Transformation

•

• Active Financial Management

• •

Base Business

•

• •

Continue to focus on providing a safe, clean parking experience for our customers using Crime Prevention Through Environmental Design (CPTED) principles Provide support for the corporate security function and Kelowna Security Operations Center (KSOC) Continue renewal of older security cameras to enhance real-time monitoring and improve security for customers Continue to actively manage on-street parking in residential areas to support densification within urban centres while preserving the character of neighbourhoods Launch the design phase for a new parkade facility in the South Pandosy Urban Centre In partnership with Integrated Transportation, initiate development of a curb space management strategy to accommodate alternative uses, such as loading and pickup zones Re-launch development of an area parking plan for the Capri-Landmark Urban Centre Continue to optimize parking rates to reduce traffic congestion and promote the use of transit and alternative modes of transportation Continue expanding the City's public electric vehicle (EV) charging network to support EV adoption Set parking rates to manage occupancy, ensuring a few open spaces in each block, and share occupancy data to reduce emissions by minimizing traffic circling in search of available parking Continue to support the economic vitality and competitiveness of the City by providing adequate and convenient short- and long-term parking for residents, tourists, and businesses Generate revenue to be reinvested in parking infrastructure, transportation projects, and other public services Create a new Parking Analyst position to support a return to proactive planning and improve our ability to monitor and actively manage existing and future parking areas Identify a resource to manage the complex systems we use to operate parking and enforcement infrastructure, improve financial management and ensure compliance with policies and industry standards Continue updating the legacy Residential Parking Permit system to include online features, decrease permit misuse, and transition to virtual, license plate-based permits Continue the development of infrastructure to support an interactive parking map to share real-time parking occupancy and enhance the customer experience Leverage the Parking Analyst to identify new revenue opportunities and improve oversight of programs Continuously review and compare parking rates and fines to other municipalities, private operators, and institutions to maximize effectiveness Establish a street-level office to streamline all parking operations in one accessible location to more effectively address customer needs, increase service levels, and optimize collaboration between City and contracted staff Continue the multi-year asset renewal program for City parkades to ensure they achieve maximum life expectancy Review and reallocate existing staff to ensure the most efficient and effective use of resources

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2024 Key accomplishments: • • • • • • •

Contributed $1.15 million from parking revenues to reduce taxation Hired and onboarded a new Parking Services Supervisor Amended the Residential Parking Permit policy to align with provincial housing directives for increased density Initiated a multi-year project to refurbish older pay stations, including modem, credit card processing equipment and software upgrades, to extend their useful life Installed 10 additional public (Level 2) EV chargers in parkades and surface parking lots Successfully transitioned our parking enforcement licence plate recognition vehicles to fully electric (three City and two contractor operated) Invested an additional $300,000 in parkade restoration projects - focused on concrete and flashing repairs, protective coating and general waterproofing

Continuous improvements: • • • • •

Continue to utilize pilot projects to evaluate the effectiveness and usefulness of new technologies that may enhance our ability to manage parking and improve the customer experience Utilize cross training and reallocation of existing staff resources, combined with new positions, to improve response times to service requests and areas of concern Reallocate enforcement resources to target areas where issues have been identified or complaints received Review operating model/governance for parking to improve efficiency Continuously enhance the collection of parking data to support analysis, decision making, and information sharing

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Parking, $9.9M

Parking Services $7.9M Parking Capital $2.0M

Note: Totals may not add due to rounding

Total $9.9M

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Budget needed to achieve results Parking Services is a self-sustaining operation within the general fund. Any unused revenue generated each year is allocated to reserves dedicated to future infrastructure investments. Parking operations contributes $1.65 million annually to offset property taxation funds required for enabling and other community services such as Transportation and Transit.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

(150) 9,785 — — 3 9,638

(1,150) 8,500 — 10 117 7,478

0 — — — (117) (117)

(500) 893 — — 1,580 1,973

0 — — — 550 550

(1,650) 9,393 — 10 2,130 9,884

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

896 1,302 1,479 — — 5,746 214 9,638

1,124 1,685 1,997 — — 2,464 207 7,478

51 (117) — — — (50) — (117)

106 18 111 — 1,500 183 54 1,973

— 50 — — 500 — — 550

1,281 1,636 2,108 — 2,000 2,597 262 9,884

Operating FTE positions: Management Union hourly Union salary FTE Total operating positions

0.9 4.9 2.6 8.4

1.5 6.4 4.0 11.9

0.5 — — 0.5

— — 0.5 0.5

— — — —

2.0 6.4 4.5 12.9

Note: Totals may not add due to rounding

The difference between the two graphs below is the $1.65 million surplus earned by this service area that is used to offset taxation funds required for other community services areas and infrastructure such as Parks, Sports & Recreation, and Community Safety.

Funding strategy

Expenditure by type Transfers to reserve $2.6M Contract services $2.1M

Fees and charges $9.4M

Parking capital $2.0M

Transfers from reserve $2.1M

Material and other $1.6M Salaries and wages $1.3M Enabling allocation $0.3M

Total $11.5M

Total $9.9M

Note: Totals may not add due to rounding

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2025 Operating Requests ($ thousands) Priority 1 Description Parking Services Planning Parking Study for Recreation Parks and Facilities Phase 2 Operating Requests Priority 1 Total

2025 56 50

2026 111 —

2027 111 —

2028 111 —

2029 111 —

106

111

2025

2026

2027

2028

2029

1,500

600

2,100

600

2,100

2025 Capital Requests ($ thousands) Priority 1 Description Programs Parking Infrastructure & Facilities Projects South Pandosy Parkade

Total Project 15,000

500

1,500

6,500

—

Capital Request Priority 1 Total

15,000

2,000

2,100

8,600

7,100

2,100

* denotes capital request has operating & maintenance impacts included in the request

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2025 Operating Request Details Service Area: Parking

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Parking Services Planning Justification:

Budget is requested for a Parking Analyst/Planner position within the Parking Services Branch. Parking services demands have continued to increase in line with population growth. The addition of this analyst position will enable the service area to continue with proactive planning, and maintain strategic initiatives and engagement with stakeholders, including business associations.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(56,000)

DCC Reserve —

2025

56,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

111,300

(111,300)

—

111,300

(111,300)

—

Service Area: Parking

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Parking Study for Recreation Parks and Facilities - Phase 2 Justification:

Budget is requested for the upcoming phase of the recreation parks parking study. This study aims to introduce strategies to manage parking demand, especially during peak times. This will help the City maximize the use of capital assets and preserve important parkland for other amenities.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(50,000)

DCC Reserve —

2025

50,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

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2025 Capital Request Details Service Area: Parking

Priority 1

Title: Parking Infrastructure & Facilities Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program of parking infrastructure and facilities. Annual items for consideration may include, but are not limited to, major maintenance to parkades, electric vehicle infrastructure and strategic initiatives, parking equipment and new off street parking.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,500,000

(1,500,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Parking

Other Revenue —

Priority 1

Title: South Pandosy Parkade Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to allow for planning, design and construction of a new parking structure to enhance service levels in the South Pandosy town center, and to accommodate increasing density of the surrounding commercial and residential zones.

Strategic Direction: Year 2025

Other Cost

Reserve

500,000

(500,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

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PARTNERSHIPS OFFICE LED BY: DIVISIONAL DIRECTOR, PARTNERSHIPS & INVESTMENTS

Our goal & community benefit: Our goal is to facilitate partnerships that challenge the status quo of how civic services and capital are delivered. Through strategic partnerships, effective advocacy, robust grants management and innovative alternativerevenue approaches, we seek to increase the City’s nontax revenue, strengthen partnerships and influence policies that address community need to ensure Kelowna is a great place to live, work, play and invest in. We provide economic and social benefits by mobilizing Civic resources in a financially supportive way to our partners.

Our customers: • •

•

Citizens who benefit from our partnered projects Existing partners and potential partner organizations including academia/non-profits/ private sector Other levels of government

Our partners: We work with other levels of government, businesses, academia, and non-profits to support Council priorities and community goals.

What we deliver: We create partnerships with private industry, non-profits, public and government agencies to advance Council and Corporate priorities. We target grant programs and seek-out sponsorship and advertising opportunities that align with the City's values and priorities. We advise across divisions on innovative and entrepreneurial service delivery. Everything we do is aimed at diversifying the City's revenue sources beyond property taxes.

Our key objectives: •

•

Partnerships – We focus on building relationships and forming partnerships with a diverse array of external organizations, including businesses, non-profits, government agencies, and academic institutions. While each partnership is unique, they generally fall into one or more of the following categories: providing community facilities, programs, and services; operating and maintaining City-owned assets; and administering City funding. Through these collaborations, the City aims to enhance the quality of life for its residents and more effectively address community needs Grants – We strategically identify grant opportunities for City projects and initiatives. We work across the organization to secure and manage grants that advance Corporate and Council priorities. We are driven to leverage the financial contributions of Kelowna's taxpayers Intergovernmental Relations – We focus advocacy through fostering relationships with senior levels of government to advance investments and policy changes that support Council’s priorities and City projects. This ensures priority infrastructure and program initiatives are presented to provincial and federal ministers. As one of Canada’s fastest growing communities, advocacy work includes positioning Kelowna as a leading municipality and a strong partner for senior governments to invest in

Our guiding plans: • • • •

Imagine Kelowna Council and Corporate Priorities Council Advocacy Priorities Grants Strategy

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Measuring performance: Performance measure 1 Leverage ratio from Capital Opportunities and Partnership Fund To minimize reliance on tax revenue, the City allocates $1 million per year for emerging opportunities where partners’ dollars are leveraged to deliver services and infrastructure. The leverage ratio represents the proportion of external funding compared to the City's contribution from the partnership fund towards the overall project value. The target ratio is 2:1.

Performance measure 2 Success rate on grant applications based on 20 applications submitted per year Grants minimize the City’s reliance on tax revenues and allow us to leverage funding to complete infrastructure projects and programs for our growing community. The success rate of grant applications is an indication of the submission quality, our ongoing grant management practices, and relationships with other levels of government. The target is 50 per cent success rate.

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Performance measure 3 Successfully completed advocacy priorities through Minister meetings Advancing Council’s advocacy priorities by engaging in focused and strategic intergovernmental relations, underpinned by building strong relationships with other levels of government, including consistent and effective in-person meetings with provincial and federal ministers. The target is 1 per year.

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2025 Activities by priority: Priorities

Activities

Crime & Safety

•

Affordable Housing Homelessness

• • •

Transportation Agriculture Climate & Environment

• • • •

Economy

•

• Our People

•

Digital Transformation

• •

Active Financial Management

• • • •

Base Business

• • •

Advocacy to increase crown prosecutor resources locally to address repeat property offending Supporting the implementation of the Housing Accelerator Fund Advocacy for a regional Red Fish Healing Centre model for compassionate mandatory care Intergovernmental relations support for the completion of the HEART and HEARTH temporary shelter sites New transit operations centre advocacy and grant applications Highway 33-Clement multi-modal corridor extension advocacy Pursue grant funding for agricultural water projects Apply for Provincial and Federal grant applications supporting Climate and Environment initiatives Complete an Economic Development Options Review to identify municipal programs and services needed to meet the needs of Kelowna’s businesses and entrepreneurs Advance public-private partnerships opportunities, through advocacy for economic development at YLW Kelowna International Airport Look towards team expansion to increase impact, particularly in academic partnerships and agreements and leases Establish a Customer Relationship Management Platform for Senior Leadership and area managers Integrate a project management digital tool to manage the partnership development process Leverage new Partnership Coordinators staff to increase our ability to respond to grant requests Identify and address major sponsorship opportunities Identify and pursue high-impact partnership opportunities Revise Unsolicited Proposal Program to reflect a focused, active partnership development approach Actively promote partnership opportunities with the private sector Develop a Partnership Development Strategy and Framework to guide the active development of new partnerships at the City Established a new focus and strategy for Sponsorship and Advertising

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2024 Key accomplishments: • • • • • •

•

• • • • • •

Grant portfolio managing over $110 million in current contracts Kelowna shown as a leader through grant-funded programs including the Accelerating Housing Knowledge Sharing Series and SILGA award for the People PEER Navigator and Indigenous Harm Reduction Programs Groundbreaking with the Province for the Bertram Overpass project, supported by the Growing Communities Fund and the Canada Community Building Fund Celebration with Central Okanagan Minor Baseball Association on the success of the Jays Care funding to support upgrades to Edith Gay ball diamonds Updated Council’s Advocacy Priority Framework to identify top five advocacy priorities for the remainder of the term Provincial commitment and announcement with B.C.’s Ministry of Mental Health and Addictions for a new purposebuilt complex care and supportive housing facility at the Pacific Avenue site, completing Council’s complex care advocacy priority Delivering on the Provincial commitment through a Memorandum of Understanding for Kelowna to receive HEART & HEARTH Provincial support to create temporary shelter housing at three designated sites, with two sites built and operational and a third announced – completing Council’s new shelters with wraparound services advocacy priority Managed Kelowna’s delegation participation at the 2024 UBCM convention, resulting in meetings for Mayor and Council with six Provincial Cabinet Ministers, panel speaking opportunities and received a UBCM Community Excellence Award in the Asset Management category Successfully advocated for the Provincial commitment to advance the Bertram project that will see the addition of 112 below-market affordable rental units and an onsite childcare centre Meeting with the Prime Minister, the Hon. Justin Trudeau, for discussions on Council’s advocacy priorities Created a tracker for the Capital Opportunities and Partnership Fund, as well as an intake process for project submission Partnership with the Okanagan Regional Library for express branches at both the Glenmore Activity Centre and the redeveloped Parkinson Recreation Centre Partnership with Okanagan College on the new Recreation and Wellness Facility at their Kelowna Campus The Partnerships Office collaborated with national organizations on partnership opportunities

Continuous improvements: • • • • •

Expanded the Partnerships Office team with the hiring of two new Partnerships Coordinators and a Partnerships Development Coordinator UBCO Research committee continues to leverage collaboration and research grant opportunities that benefit our city Execution of Council’s revised advocacy priorities for 2023-2026 with evidence-based background materials Customer Relationship Management system recommendations are being finalized Policies and Procedures to guide Intergovernmental Relations and Partnerships portfolios

293

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Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Partnerships Office, $2.2M

Partnerships Office $2.0M Sponsorship & Advertising $0.2M

Note: Totals may not add due to rounding

Total $2.2M

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Budget needed to achieve results The Partnerships Office is primarily funded by property taxes, with advertising revenue partially offsetting its costs. The office also generates substantial revenue through grants and partnerships, which is directly allocated to specific projects. This approach reduces financial pressure on taxpayers by funding initiatives that benefit the community outside of property taxes.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

868 34 — — — 902

1,301 104 — 140 221 1,766

14 — — — 2 16

72 — — — — 72

230 — — — 75 305

1,617 104 — 140 298 2,159

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

671 111 — — — — 119 902

1,021 557 — — — — 188 1,766

110 (83) — — — — (11) 16

55 — — — — — 17 72

— 300 — — — — 5 305

1,186 774 — — — — 199 2,159

Operating FTE positions: Management Union hourly Union salary FTE Total operating positions

4.3 — 0.6 4.9

5.0 — 1.8 6.8

— — 1.2 1.2

— — — —

5.0 — 3.0 8.0

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type

Property tax $1.6M Salaries and wages $1.2M Transfers from reserve $0.3M Material and other $0.8M Fees and charges $0.1M Enabling allocation $0.2M Other revenue $0.1M

Total $2.2M

Note: Totals may not add due to rounding

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2025 Operating Requests ($ thousands) Priority 1 Description Council Advocacy Priorities Strategic Development - Redeployment Partnership Development Strategy, Framework and Collateral Economic Development Strategy - Redeployment Operating Requests Priority 1 Total

2025 —

2026 —

2027 —

2028 —

2029 —

—

2025 Capital Requests There are no 2025 Priority 1 Preliminary Capital budget requests for this service area.

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2025 Operating Request Details Service Area: Partnerships Office

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Council Advocacy Priorities Strategic Development - Redeployment Justification:

Budget is requested to engage a consultant for expertise and support in advancing the Council's Advocacy framework and priorities funded from a redeployment of Council strategic funds. This ongoing budget would ensure predictability for longterm advocacy efforts as priorities shift, especially during election cycles. In 2025, the initial funds will kickstart a strategic campaign for the Highway 33 multi-modal corridor, using an approach similar to the YLW integrated campaign.

Strategic Direction:

Transportation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Partnerships Office

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Partnership Development Strategy, Framework and Collateral Justification:

Budget is requested to create a Partnership Development Strategy, building on the 2024 Partnerships Policy. This Strategy will guide in identifying and managing partnerships aligned with City and Council priorities, aiming for high-impact value for the community. The accompanying Partnerships Framework will detail principles, tools, and processes for partnership development at the City of Kelowna, along with supporting materials. This initiative will be led by the City's partnerships staff, with consulting support.

Strategic Direction:

Active Financial Management

Year

Cost

Reserve

Borrow

Grant

(75,000)

DCC Reserve —

2025

75,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

297

2025 FINANCIAL PLAN

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2025 Operating Request Details Service Area: Partnerships Office

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Economic Development Strategy - Redeployment Justification:

Budget is requested for an Economic Development Options Review to address Council's new priority funded from a redeployment of Council strategic funds. This review will help the City evaluate current regional economic strategies, identify municipal programs needed for Kelowna's businesses, and outline a plan for economic development. It will also clarify the City's role in these initiatives and gauge the required advocacy with senior government and national organizations.

Strategic Direction:

Economy

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

298

2025 FINANCIAL PLAN

CITY OF KELOWNA

GOVERNANCE & LEADERSHIP LED BY: CITY CLERK

Our goal & community benefit: Our goal is to foster a culture of open government in the provision of corporate administrative services to Council, their committees, and the organization. We communicate opportunities for the public to engage with Council and learn about City governance, ensure public access to information and protection of privacy in accordance with provincial legislation and City policies.

Our customers: • • • •

Council Senior Leadership Team City of Kelowna employees Community members

Our partners: We partner with Council, divisions within the City, and various provincial ministries and agencies.

What we deliver: We provide council meeting management, corporate access to legal services, the management of corporate records and information, public access to records and protection of privacy, elector approval processes and general local elections as well as training for new and existing employees on governance. We are responsible for delivering the right infrastructure, skills, services, and processes to meet Council priorities and community goals.

Our key objectives: • • • • •

To advise on Council procedures and meet legislative requirements To promote good governance, clear direction, and legislative compliance through Council and corporate policy frameworks To manage physical and electronic records in accordance with the records and information management program To share information in timely and transparent ways through routine release and formal request processes To protect privacy and personal information with up to date plans, policies, procedures, and training

Our guiding plans: • •

Imagine Kelowna Provincial legislation

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Measuring performance: Performance measure 1 Council meetings & public hearings Council makes decisions about City plans, policies, and programs at Council meetings. The public may attend open meetings in-person or watch online, and may participate in public hearings in-person or online. Meeting recordings are posted to the City's website. Council meetings were held on 46 days in 2023 and it is expected meetings will be held on 48 days in 2024.

Performance measure 2 Council policies reviewed or created Relevant and current Council policies support good governance and provide clear direction for decision-making. An initiative is underway to review Council's 124 policies. It is expected 22 policies will be reviewed, created or rescinded in 2024 through the Council policy review process. The figure for 2025 is expected to remain stable at approximately 20.

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Performance measure 3 Days to address Mayor & Council correspondence Council receives over 2,500 pieces of correspondence annually. As Council spokesperson, the Mayor responds to correspondence submitted to Mayor & Council, with support from staff. Some correspondence is submitted for information only. We began to measure this metric in 2024 with use of a new reporting system.

Performance measure 4 FOI requests responding to within the legislated timeline The public may request access to information under the Freedom of Information and Protection of Privacy Act. Most requests are responded to within the initial required 30 days. The response timeline may be extended to 60 days or longer when needed. An estimated 95 per cent of requests will be responded to within the legislated timeline in 2024, with a target of 97 per cent in 2025.

301

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2025 Activities by priority: Priorities

Activities

Affordable Housing

•

Agriculture Our People

• •

Digital Transformation

• •

Base Business

• • • • •

•

Continue to interpret and implement changes to provincial land use legislation to refine policies and procedures that support the creation of more affordable housing Provide meeting management support for the Agricultural Advisory Committee Provide training for new and existing employees on governance, Council reports and procedures, access to information and protection of privacy, and records management Enhance support to develop and review privacy impact assessments that advance digital transformation and AI initiatives Support digital transformation and AI initiatives through oversight of privacy measures and guidance on responsible use Provide governance and meeting management to Council and their Committees and Task Forces, including agenda preparation, minutes, and statutory notices Draft regulatory bylaws for and provide policy and procedural advice to City departments Lead Council policy review and advance corporate policy development Conduct annual archiving and disposition of records across City business areas Advance records management in SharePoint and other electronic systems to ensure compliance with information and privacy legislation and to manage electronic records and information from creation to disposition Ensure public access to information and protection of privacy in accordance with provincial legislation and City policies

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2024 Key accomplishments: • • • •

Supported review and update of Council priorities for the 2022-2026 Council term Implemented a corporate administrative policy framework that guides how administrative policies are structured, developed, approved, and maintained Reviewed the Council Code of Conduct and Lobbyist Registry Moved older electronic records into SharePoint Online to support collaboration and compliance and to manage electronic records and information through their lifecycle

Continuous improvements: • • • • •

Provide input on provincial policy development with Ministry partners Advocate on Council priorities and key initiatives with the federal and provincial governments Provide governance and meeting management to committees and task forces Advise on bylaw and Council and administrative policy development through expanded policy function Provide guidance on privacy assessments that advance digital transformation and other priority initiatives

Budget overview:

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Governance & Leadership, $5.0M

City Manager $2.0M Legislative Service $1.1M Council $1.0M Records & Information $0.7M Mayor $0.2M

Note: Totals may not add due to rounding

Total $5.0M

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Budget needed to achieve results Governance & Leadership is primarily funded through property taxes, with a small portion of its costs offset by cost recovery revenue.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

4,019 3 — 55 4 4,082

5,317 10 — 55 6 5,388

(64) — — — (6) (70)

295 — — — — 295

(627) — — — — (627)

4,922 10 — 55 — 4,987

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

2,271 430 407 — — 500 473 4,082

2,822 1,552 442 — — — 572 5,388

151 (56) — — — — (165) (70)

257 (2) — — — — 40 295

— (637) — — — — 11 (627)

3,229 857 442 — — — 458 4,987

Operating FTE positions: Mayor and Council Management Union hourly Union salary Total operating FTE

9.0 10.2 0.1 4.9 24.2

9.0 13.0 0.5 6.0 28.5

— 1.0 — 0.5 1.5

— — — — —

9.0 14.0 0.5 6.5 30.0

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Salaries and wages $3.2M Property tax $4.9M

Material and other $0.9M

Other revenue $0.1M

Enabling allocation $0.5M Contract services $0.4M

Total $5.0M

Note: Totals may not add due to rounding

304

2025 FINANCIAL PLAN

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2025 Operating Requests ($ thousands) Priority 1 Description Privacy Impact Assessments Operating Requests Priority 1 Total

2025 65

2026 65

2027 65

2028 65

2029 65

2025 Capital Requests There are no 2025 Priority 1 Preliminary Capital budget requests for this service area.

305

2025 FINANCIAL PLAN

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2025 Operating Request Details Service Area: Governance & Leadership

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Privacy Impact Assessments Justification:

The City's digital transformation initiatives are accelerating the use of technology-based tools that make it easier for the public to access City services and improve the efficiency of internal processes. Initiatives that collect or use personal information need to be assessed to ensure protection of this information. Under the Freedom of Information and Protection of Privacy Act, a Privacy Impact Assessment (PIA) is required for new initiatives and significant changes to existing initiatives. Budget is requested for consulting services to support the drafting and review of PIA's. This reduces delays with initiative implementation and supports fulsome assessments. Consultant assistance mitigates the resource burden on staff and ensures the PIA is produced at a high standard to deliver robust privacy protection.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

65,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(65,000)

65,000

—

(65,000)

65,000

—

(65,000)

306

2025 FINANCIAL PLAN

CITY OF KELOWNA

ENABLING SERVICES LED BY: GENERAL MANAGER, CORPORATE SERVICES

Our goal & community benefit: Our goal is to assist City staff in providing municipal services to the community. We achieve this by offering leadership, guidance, systems, tools, and standards that support the delivery of services that help shape our community

Our customers: • • •

Council Senior Leadership Team City of Kelowna employees

Our partners: We work collaboratively with all internal divisions, as well with members of the public, council, and external agencies, to support the delivery of the City's services.

What we deliver: We deliver by ensuring the City attracts, retains, and develops the best quality public servants through training and development programs; providing convenient, accurate and timely access to City services and information through advanced communications, technology, and financial accountability; and fostering a culture of open government in the provision of corporate administrative services.

Our key objectives: Enabling Services provide support to the City's Community Service Areas by helping them to carry out their duties effectively. These support services include administrative support, facilities, communications, financial services, fleet services, human resources, information & technology services, infrastructure delivery, real estate & property management, risk management, senior leadership, and strategy & performance. • Communications provides strategic planning to inform, consult, involve, collaborate and empower internal and external audiences, as well as support those who are designated spokespeople for the City. • Corporate strategy & performance provides internal advisory services and facilitates the process to set corporate level strategy, monitor strategies and key projects and track and improve performance. • Facilities provide safe, operational and well-maintained facilities by focusing on best practices in building maintenance, asset management, and energy management. • Financial services are responsible for managing the City's finances and asset replacement, including budgeting, accounting, and financial reporting. • Fleet services are responsible for the procurement, management and maintenance of the vehicles and equipment used for various municipal services. • Human resources are responsible for managing the City's human resources, including hiring, training, and employee relations, as well as the development and implementation of the City’s corporate safety program. • Information technology provides direction, support and maintenance of the City’s information systems and technology infrastructure. • Infrastructure delivery manages the delivery of City infrastructure projects while ensuring compliance with Council approved policies and applicable Acts and regulations. • Real estate administers the City's land acquisition and disposition activities, including acquiring land for public use, such as parks and roads, as well as maintaining leases, licenses, contracts and agreements for the use of important City assets, and providing property management services for City-owned properties.

307

2025 FINANCIAL PLAN

• •

CITY OF KELOWNA

Risk management is responsible for the development, implementation, and administration of the City’s risk management and security programs. Senior leadership provides direction, oversight, support, and accountability for the various municipal departments and functions, and fosters a culture of collaboration, innovation, and excellence.

Our guiding plans: • • • • • • • • • • • • • • •

Communications Strategy Digital Transformation Strategy HR Strategic Plan Safety 8 Program Official Community Plan Strategic Energy Management Plan Five Year Financial Plan Ten Year Capital Plan Corporate Fleet Sustainability Policy Green Fleet Strategy Transportation Master Plan Building Master Plan Parks Master Plan Utilities Master Plan Enterprise Risk Management Framework

Measuring performance: Performance measure 1 Enabling percentage of total operating budget This performance measure tracks the percentage of enabling services compared to the total operating budget of the City. Capital expenditure budgets have been excluded due to the significant fluctuations year to year. The target of 25 per cent of expenditures ensures the City prioritizes core purpose by focusing resources on program delivery rather than overhead. This target promotes efficiency, accountability, and transparency, reassuring Council and the community that funds are being used effectively.

308

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 2 Deferred building capital renewal Deferred capital renewal refers to the postponed investments required for maintaining and renewing facility assets. If not addressed, this deferral accelerates asset deterioration, leading to compounding future capital costs, higher operational expenses, increased risk exposure, potential unplanned service disruptions, and a decline in service quality and customer satisfaction. As infrastructure continues to age, the backlog of deferred renewal grows annually, requiring strategic investments to mitigate further increases and maintain operational performance.

Performance measure 3 Buildings greenhouse gas emissions This performance measure tracks the total emissions generated by the buildings in the Facilities inventory, measured in metric tons of CO₂ equivalent (tCO₂e). This measure is crucial for advancing sustainability and climate action while reducing the City's carbon footprint. The aim is to consistently decrease emissions year over year, as targeted within the Strategic Energy Management Plan. This metric is to align with the figures presented for the Local Government Climate Action Program (LGCAP). To further reduce emissions, investments must be made in energy-efficient building upgrades, renewable energy sources, and enhanced operational practices.

309

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 4 Buildings preventative maintenance This performance measure tracks the ratio of preventative to reactive work orders. Increasing preventative maintenance is critical for achieving long-term cost savings, improving asset reliability, and operational efficiency. The current target is to meet industry standards, with around 70 per cent of work orders being preventative. To improve, we are investing in maintenance planning tools, staff training, and better asset monitoring to ensure timely work activities.

Performance measure 5 Total capital spend Annual capital spend is a key performance measure that reflects an organization’s investment in long-term assets and infrastructure. Tracking this metric over time helps identify trends and optimize budget allocation, supporting informed strategic decisions aligned with long-term goals.

310

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 6 Turnover rate The ability to retain staff is measured by analyzing our total turnover rates. Retaining staff ensures we have the talent to consistently provide quality services to the community. Our low turnover rate is attributed to the employee engagement efforts in relation to training, professional development and improved workplace culture.

Performance measure 7 Recruitment days Attracting and retaining staff is critical to ensuring delivery of services to our community is maintained. Creating efficiencies within the recruitment process has been a focus for Human Resources, including revision of our hiring policy, improving the candidate experience and leveraging technology and data to make smarter recruitment decisions.

311

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 8 Vacancy rate Filling vacant positions efficiently provides workforce stability. Our low vacancy rate is attributed to efficiencies within our recruitment process including improving approval workflows, and process visibility.

Performance measure 9 WorkSafeBC Experience Rating Experience rating is an adjusting percentage applied to the WorkSafeBC insurance base rate of the classification unit (CU) the City of Kelowna belongs to, Local Government and Related Operations. Each year, WorkSafeBC calculates a base rate, which reflects the historical cost of injuries in an industry. An experience rating discount or surcharge, based on a firm's health and safety record, is then applied to determine the net rate. Maintaining a negative experience rating means the corporation receives a deduction to the assessable amount. It also reflects that minimizing time loss injury claims and ensuring our employees return home each day healthy and safe is a corporate priority.

312

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 10 Communications channels Communications delivers strategy and tactics to help citizens learn about City programs, services and initiatives. The growth of the City’s communication channels signals that citizens and interested parties value the information provided by the City and the City invests in the optimal channels to reach its audiences.

Performance measure 11 Online service availability We are increasing the number of services available online and the quality of the online experience so residents can access services and information online when it's convenient for them. The number of questions asked to voice and chat assistants shows citizen uptake of online services and allows us to direct investments in technology and business process improvements.

313

2025 FINANCIAL PLAN

CITY OF KELOWNA

Performance measure 12 Process automation As part of our commitment to provide value and operate efficiently, the City is regularly automating manual and paperbased processes using technology including AI. The cost and staff time savings are redeployed to higher value work and reduce new resource requests.

Performance measure 13 Financial indicators Key annual financial health indicators compared other municipalities throughout the province, specifically those with populations over 100,000 as well as within the Okanagan. The comparative data is provided by the province and is updated to 2022. The ratios presented for Kelowna are from 2023. The key annual financial health indicators used are: • Tax burden per capita: Measures property taxation revenue collected per City of Kelowna citizen • Debt level per capita: Measures how much debt the City of Kelowna has per citizen • Annual surplus per capita: Measures the City’s annual surplus per citizen. This metric indicates opportunity to add service capacity within existing taxation levels

314

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Activities by priority: Priorities

Activities

Crime & Safety

• •

Affordable Housing Homelessness

• • • •

• Climate & Environment

• • •

Economy

•

Our People

• • • • • • • •

Digital Transformation

•

• •

•

Install and maintain security cameras and alarm systems technologies in public buildings and areas to deter crime and assist law enforcement. Implement design strategies that enhance the safety of public areas by improving sightlines, eliminating hiding spots, and creating well-defined spaces. Land acquisition for affordable housing projects Develop and implement a new below market housing model Work with partners to identify a site that is suitably located and zoned for Kelowna’s first purpose-built shelters Work with Province, Interior Health Authority, and not-for-profit organizations to map out Campus Care model as noted under Mayor’s Task Force on Crime Reduction Provide operational technical support for electrical, domestic water, and CCTV services at outdoor sheltering locations Annual energy modernization program to identify inefficient systems within facilities and modernize them with GHG and energy reduction projects High performance building policy development to ensure all new buildings and major renovations are energy efficient Prioritize green infrastructure (i.e. renewable energy systems, efficient public transit, sustainable drainage solutions) to reduce carbon emissions, enhance resilience to climate impacts and protect natural ecosystems Initiated seven Request for Qualification packages for market release for a range of consulting and contractor master agreements Work to ensure office furniture is regularly serviced and renewed to promote a productive, healthy and efficient working environment for staff Actively renew end-of-life heating, ventilation, air conditioning, and lighting systems to provide optimal indoor environment for occupants Actively identify and address life safety concerns, including fall protection and fire protection systems to keep staff, contractors and occupants safe Communicate and implement our mental health strategy, design performance measures to track objectives Conduct an inclusive benefits review to identify opportunities to enhance programs Analyze safety KPIs to measure and track progress to reduce employee injury and enhance corporate safety culture Continue to review and strengthen a variety of workplace initiatives Optimize and automate processes to enhance efficiency and boost employee satisfaction Implement smart systems and technology such as automated lighting, HVAC automation, and security systems, to improve operational efficiency, reduce energy usage, and provide real-time data for decision-making Utilize computerized maintenance management systems (CMMS) to track maintenance, manage assets, and optimize resource allocation more efficiently Utilize energy consumption monitoring software to enable real-time tracking of energy use, identifying inefficiencies, and optimize utility reduction opportunities through data analysis Expected pilot of AI tools to help automate communications workflows and increase capacity for more

315

2025 FINANCIAL PLAN

Active Financial Management

CITY OF KELOWNA

• • • •

• • • Base Business

• • • • • • •

Redeployed $2.8 million of existing base budget to address key Council and Corporate priorities, reducing the financial impact on taxpayers Completed capital plan financing strategy, focusing on reducing the “infrastructure deficit” Continued development of KPIs, focus on benchmarking, and dashboards Continue to implement preventive maintenance activities to avoid costly emergency repairs, extend the lifespan of building assets, and reduce unforeseen expenses Invest in energy-efficient systems, such as LED lighting, HVAC upgrades, and renewable energy sources (e.g., solar panels), to lower utility costs Using condition assessment software to track the condition and performance of building assets, plan for timely renewals to avoid costly shutdowns and repairs Actively pursue grants, rebates, or government funding programs for building renewal projects Routine building maintenance and repairs, and preventative maintenance program Contract management and coordination for various contracted services Ongoing security system, building access, and building technology management of facilities Ongoing energy management / consumption monitoring Ongoing building condition assessments and analysis to inform long term strategies and capital plans. Ongoing integration of asset management and energy management initiatives and workplans Develop Real Estate Department Strategic Plan

2024 Key accomplishments: • • • • • • •

• • • • • • • • • • •

Secured $2.46 million in grant funding for energy upgrades at H2O Issued the Facilities Technical Building Standard V1.0 – Guidelines for the construction of City Owned Facilities Capital delivery strategy through master agreements and Infrastructure Delivery integration Supported the opening of 180 units of transitional housing to provide shelter for people living without homes in Kelowna Views of videos on City of Kelowna channels surpassed 1.6 million views – a 5x increase from previous years Automated the staff business case process for hiring managers and approvers, improving approval workflows, and process visibility to all stakeholders ͏Continued implementation of the Diversity Equity and Inclusion (DEI) strategy included offering online foundational DEI training to leaders, and updates to annual performance review programs with more inclusive language, and a guide for leaders and staff Selected and implemented new safety management system (SMS) application to enhance corporation's injury prevention safety risk management efforts Achieved 94 per cent on 2024 Certificate of Recognition (CoR) safety audit Increased number of staff scholarships awarded by 70 per cent, contributing to the corporate priority Leadership Everywhere Kick-off of the Building Stronger Kelowna project, being delivered through the Integrated Project Deliver (IPD) process Completion of the Sutherland and Leckie Active Transportation Corridors, Mill Creek Diversion Upgrading project, and Burtch Trunk Sewer trenchless lining project Awarded development funding for the delivery of 68 affordable housing units on City land via Provincially led Community Housing Fund Coordinated development and implementation of Middle Income Housing Model (MIHP) to facilitate below market housing Acquired six parcels of land (approx. 1.16 acres) that will lease to two future affordable housing opportunities Award for Innovative Asset Management from Government Finance Officers Association Enhanced security for City staff and property through shifting to a hybrid staffing model and technology use Improved waterfront safety and pollution prevention, removed 101 unauthorized buoys and 10 vessels hazardous to the environment

316

2025 FINANCIAL PLAN

CITY OF KELOWNA

Continuous improvements: • • • • • • • • •

Increased opportunities for contract management development Implement energy-efficient systems to reduce utility costs and carbon footprint Use of integrated data to forecast maintenance needs and reduce unplanned repairs and associated costs Continue to advance our mental health strategy by developing an action plan and mental health strategy framework Creating new omni channel AI public facing supports that culminate in an AI311 Service Streamline infrastructure project management processes to improve quality and reduce delays and costs, and implement project management software to enhance planning and execution Improve communication and collaboration with community members, contractors, and other stakeholders to ensure infrastructure projects meet public needs and expectations Expand risk management and security connections to further integrate key principles enterprise wide Enhance capacity for recovery of expenses caused by third-parties through partnerships, use of fees and regulatory tools

Budget overview

2025 Total Expenditure Budget Breakdown 2025 Total Expenditure Budget, $838.9M

Enabling Services, $133.3M

Financial Services $44.3M Capital Expenditure $33.4M Fleet Services $11.6M Facilities $11.6M Information Technology $10.5M Human Resources $5.2M Risk Management $5.1M Other $3.7M Administration $3.1M Senior Leadership $2.9M Communications $1.9M

Note: Totals may not add due to rounding

Total $133.3M

317

2025 FINANCIAL PLAN

CITY OF KELOWNA

Budget needed to achieve results Enabling Services is a group of essential, varied services that support the delivery of programs and operations to the community. These services ensure the effective functioning of municipal operations and contribute to the overall quality of life for residents. These services are funded through a mix of sources, including property taxes, operating and capital reserves, internal and external cost recoveries, investment interest, grants, penalties and fines, traffic fine revenue sharing, and property rental income.

$ thousands Revenue budget: Property tax Fees and charges Grant Other revenue Transfers from reserve Total revenue budget

Actual 2023 Revised 2024

Annualized Budget

Maintaining Service

Enhancing Service

Preliminary 2025

41,131 22,901 31,930 43,325 136,517 275,804

39,975 16,611 7,669 38,825 51,822 154,902

(3,961) 166 (3,103) (3,189) (45,975) (56,062)

3,552 2,550 — 1,633 21,432 29,166

971 — 100 75 4,196 5,342

40,537 19,326 4,667 37,343 31,475 133,349

Expenditure budget: Salaries and wages Material and other Contract services Debt service Capital expenditure Transfers to reserve Enabling allocation Total expenditure budget

27,445 40,089 3,209 7,533 20,305 177,223 — 275,804

28,582 39,245 3,431 6,922 55,277 21,446 — 154,902

1,287 (2,380) 62 — (55,277) 246 — (56,062)

937 (914) 58 (227) 29,220 93 — 29,166

(317) 1,438 50 — 4,171 — — 5,342

30,489 37,389 3,601 6,695 33,391 21,785 — 133,349

Operating FTE positions: Management Union hourly Union salary FTE Total operating positions

78.7 39.9 112.0 230.6

86.5 41.3 124.7 252.5

1.5 2.6 0.6 4.7

— (1.6) — (1.6)

2.0 1.0 0.5 3.5

90.0 43.3 125.8 259.1

Note: Totals may not add due to rounding

Funding strategy

Expenditure by type Material and other $37.4M

Property tax $40.5M Capital expenditure $33.4M Other revenue $37.3M Salaries and wages $30.5M Transfers from reserve $31.5M Transfers to reserve $21.8M Fees and charges $19.3M Debt service $6.7M Grant $4.7M Contract services $3.6M

Total $133.3M

Note: Totals may not add due to rounding

318

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Requests ($ thousands) Priority 1 Description Electrical System Reliability and Maintenance Enhancement Security and Access Systems Maintenance Enhancement Facilities Maintenance and Operations Enhancement Facilities Planning Program - Redeployment Facilities Total Transformation Office - Redeployment Financial Services Total Staff Development and Retention Program Human Resources Total Microsoft Fabric Implementation Geographic Information System Enhancement Digital Customer Service Enhancement Information Technology Total Strategic Land Development Projects Real Estate Total Digital Transformation Legal Expense Community Events Calendar Accelerated Capital Program Support Redeployment Senior Leadership Total Operating Requests Priority 1 Total

2025 140

2026 106

2027 106

2028 106

2029 106

140

106

126

109 453 — — 185 185 100 62 54 216 100 100 1,000 50 50 —

109 446 — — 185 185 — 124 107 231 — — — 100 50 —

109 446 — — 185 185 — 124 107 231 — — — 150 50 —

1,100 2,054

150 1,011

200 1,061

319

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Requests ($ thousands) Priority 1 Description Programs Front Office Equipment IT Communications Systems Major Systems Projects Server & Data Storage Information Technology Programs Total Building Systems & Infrastructure Facilities Portfolio Planning Placemaking Facilities Programs Total Vehicles & Equipment - Growth Vehicles & Equipment - Renewal Fleet Programs Total General Land Acquisition Marine Facilities Real Estate Programs Total Projects Buildings Systems Renewal - City Hall Renewal Buildings Systems Renewal - Memorial Arena Buildings Systems Renewal - Sarson's Activity Centre Electric Vehicle Infrastructure Installation Enterprise Fire Hall #1 Improvements Gymnastics Centre (Rutland) Improvements H2O Centre Improvements LED Lighting Upgrades MNP Place Roof Replacement Prospera Place Improvements Rutland Arena Improvements & Heatsharing w/ Kelowna Family Y Facilities Projects Total Cook Beach Park- Groyne & Pier Real Estate Projects Total Capital Request Priority 1 Total

2025

2026

2027

2028

2029

612 350 871 53 1,886 3,080 1,770 250 5,100 75 3,910 3,985 1,800 100 1,900

550 200 500 150 1,400 2,330 2,030 — 4,360 1,279 4,100 5,379 1,800 100 1,900

550 200 500 150 1,400 1,775 1,400 — 3,175 888 4,290 5,178 1,800 — 1,800

550 200 250 150 1,150 975 1,400 — 2,375 859 4,500 5,359 1,800 — 1,800

550 200 250 150 1,150 725 1,400 — 2,125 799 4,720 5,519 1,800 — 1,800

Total Project 16,700 4,650 1,025

1,761 450 125

1,103 2,000 450

7,837 2,000 450

4,310 200 —

— — —

1,500 4,350 2,050 5,270 1,500 7,245 8,060 7,345

500 1,350 100 2,674 400 7,000 3,960 2,025

500 1,625 850 1,960 400 200 3,600 775

500 1,225 1,000 335 200 — 400 4,500

— 150 100 — — — — —

— — — — — — — —

59,695 3,600 3,600 63,295

20,345 175 175 33,391

13,463 937 937 27,439

18,447 2,288 2,288 32,288

4,760 300 300 15,744

— — — 10,594

* denotes capital request has operating & maintenance impacts linked to this request

320

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Electrical System Reliability and Maintenance Enhancement Justification:

The Electrical team's portfolio of facilities, assets, and infrastructure has expanded considerably in recent years and is projected to continue growing. In addition to this growth, aging infrastructure, deferred system renewal, and increased vandalism have intensified resource requirements resulting in significant pressure on the team's capacity. Budget is requested for one additional Electrical Technician to help reestablish essential service levels, and one vehicle that will be moved into the capital program upon Council approval. The position will address critical operational demands, support effective asset management, enhance electric vehicle infrastructure and fleet electrification, and advance capital projects while building essential staff redundancy.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

139,900

2026 2027

Utility

Taxation

—

Other Revenue —

—

(139,900)

105,500

—

(105,500)

105,500

—

(105,500)

Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Security and Access Systems Maintenance Enhancement Justification:

The Security & Access branch has experienced significant growth in the assets they service, and capacity constraints have resulted in deferred maintenance, shortened system lifespans, and outdated software. Additional resources are essential to ensure proper maintenance of existing security and access systems. Budget is requested to add one Security & Access Technician who will design, install, maintain, and repair systems across City facilities, supporting Risk Management, Community Safety, Bylaw, and the RCMP. This addition will enable the department to provide a baseline level of service, meet regulatory standards, control costs, and ensure the reliable operation of critical systems such as CCTV, Security, and Access. Budget is also requested for one vehicle that will be moved into the capital program upon Council approval.

Strategic Direction:

Crime & Safety

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

139,700

2026 2027

Utility

Taxation

—

Other Revenue —

—

(139,700)

105,500

—

(105,500)

105,500

—

(105,500)

321

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Facilities Maintenance and Operations Enhancement Justification:

Budget is requested for a Facilities Maintenance Supervisor position to oversee operations to ensure safe, clean and wellmaintained facilities. The supervisor will lead a team of skilled tradespeople responsible for maintaining and repairing City buildings and infrastructure, ensuring the highest standards of safety and compliance. Additionally, the position will support the department's ability to streamline operations, improve service delivery and implement effective preventative maintenance strategies.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

64,800

2026 2027

Utility

Taxation

—

Other Revenue —

—

(64,800)

125,500

—

(125,500)

125,500

—

(125,500)

Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Facilities Planning Program - Redeployment Justification:

The Facilities Planning & Design department is responsible for planning, designing and optimizing physical spaces for our community. These facilities enable the City to provide all types of services including sport and recreation, fire safety, and community safety. As the city grows, continued planning is essential for adaptability, efficiency, and responsiveness to current needs. Budget is requested for an annual planning program to ensure facility planning stays aligned with evolving regulations, demographics, and industry standards to support informed decision-making. Work in 2025 will include an update to the staff accommodation plan, to incorporate changes in staff growth and policy. This $150k budget is partially funded from a redeployment of $41k existing budget.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

109,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(109,000)

109,000

—

(109,000)

109,000

—

(109,000)

322

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Transformation Office - Redeployment Justification:

The Transformation Office drives organizational change by aligning initiatives with long-term goals and ensures effective execution of strategic projects. Focused on Corporate Services and HR, it also supports the entire organization by prioritizing high-value projects and developing governance frameworks for key initiatives. Benefits include streamlined project delivery, improved operational performance and optimized resource allocation. It aligns organizational plans with execution, ensuring efficient resource distribution, adherence to project scope and budgets, and enhanced planning. Budget is requested for resourcing to support project management, frameworks, process reviews, consultations, change management and training to support informed decision making and drive results. This is funded from redeployment of existing budget.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Enabling Services

Priority 1

Maintain ON-GOING PRELIMINARY

Title: Staff Development and Retention Program Justification:

The City of Kelowna employs more than 1,200 people across various departments. These staff are the driving force behind the City's operations, innovation, and success and have a direct impact on achieving Council and Corporate priorities. As the city continues to grow, internal staff retention and development is vital. Developing staff internally to fill vacant positions is cost effective and helps ensure continuity of City services. Additional budget is requested for staff development and recognition which is essential to avoid employee turnover and to ensure the City can fill positions with qualified staff. This request will also enable an in-house Local Government Certificate Program through Capilano University and will provide practical skills and professional credentials for local government roles.

Strategic Direction:

Our People

Year

Cost

Reserve

Borrow

Grant

(3,600)

DCC Reserve —

2025

184,850

2026 2027

Utility

Taxation

—

Other Revenue —

—

(5,150)

(176,100)

184,850

(3,600)

—

(5,150)

(176,100)

184,850

(3,600)

—

(5,150)

(176,100)

323

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Microsoft Fabric Implementation Justification:

Microsoft Fabric is an end-to-end analytics and data platform designed for enterprises that require a unified solution. It encompasses data movement, processing, ingestion, transformation, real-time event routing, and report building. It offers a comprehensive suite of services including Data Engineering, Data Factory, Data Science, Real-Time Analytics, Data Warehouse, and Databases. This request will build upon the work undertaken in 2024 that saw the McCulloch Reservoir Demand Dashboard transitioned to Fabric and a Strategic Roadmap that articulates the implementation of Fabric across the organization. Fabric will bring simplicity and integration to solutions and allow for more staff to work within complex data without significant support and resources.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

(100,000)

DCC Reserve —

2025

100,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Geographic Information System Enhancement Justification:

Budget is requested to include a Business Systems Analyst to the Geographic Information System (GIS) team. This role will manage GIS operations and deliver advanced GIS and analytic solutions for the City. The role will leverage technological advancements to further automate and improve upon process while supporting the corporation in achieving its Council priorities by delivering high-quality, accurate and trusted data for making informed business decisions.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

62,200

2026 2027

Utility

Taxation

—

Other Revenue —

—

(62,200)

124,100

—

(124,100)

124,100

—

(124,100)

324

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Digital Customer Service Enhancement Justification:

Budget is requested for a second Innovation Consultant to expand and improve customer service delivery by developing and implementing artificial intelligence resources, such as digital assistants and the future City-wide 311 service. Innovation Consultants support the organization on its digital transformation journey through initiatives and projects that promote and build capacity for human centered design, collaborative problem solving and digital literacy.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

53,700

2026 2027

Utility

Taxation

—

Other Revenue —

—

(53,700)

106,500

—

(106,500)

106,500

—

(106,500)

Service Area: Enabling Services

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Strategic Land Development Projects Justification:

The mandate of the department involves achieving the Official Community Plan and corporate objectives through innovative real estate strategies. Several initiatives have been identified that could bring social, economic, environmental, and cultural benefits to the City. To implement many of these projects, budget is requested for expenses related to legal advice, property appraisal, urban design, surveying, and other professional services. These costs are frequently recouped through redevelopment and disposition.

Strategic Direction:

Affordable Housing

Year

Cost

Reserve

Borrow

Grant

(100,000)

DCC Reserve —

2025

100,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

325

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Digital Transformation Justification:

Digital transformation enables organizations to stay competitive, responsive, and resilient in an increasingly digital world. Continued integration of digital technologies will allow the City to streamline processes, improve citizen experiences, and drive innovation. This investment allows for data-driven decisions and enhanced productivity and operational efficiency, fostering a culture of continuous improvement and preparing the City to leverage future technologies, ultimately leading to future cost savings.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

(1,000,000)

DCC Reserve —

2025

1,000,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Legal Expense Justification:

The City uses external legal services to provide advice, prepare legal documents, and represent the City as needed. Budget is requested to increase the legal budget based on the past three years of actual costs. In addition to base business needs, innovative City initiatives and priorities continue to require more in-depth legal review and advice, including partnerships and capital infrastructure delivery. Additionally, legal representation is needed on more files. Legal services also support public safety efforts through the City's Property Standards Compliance Team and major bylaw enforcement files.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

50,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(50,000)

100,000

—

(100,000)

150,000

—

(150,000)

326

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Operating Request Details Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Community Events Calendar Justification:

Budget is requested to support the implementation and ongoing execution of a community wide event calendar program. This program, when launched, will serve as a centralized one-stop hub for finding events in the Kelowna area, enhancing public engagement for both tourists and residents by streamlining access to cultural, recreational, business, and community activities. The funding will be used for policy development, platform adoption by the community, implementation strategies, promotion to local event organizers and outreach to community subscribers. Program success will allow event organizers to share the diversity of events and activities happening more broadly in the community and community members to attend.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

50,000

2026 2027

Utility

Taxation

—

Other Revenue —

—

(50,000)

50,000

—

(50,000)

50,000

—

(50,000)

Service Area: Enabling Services

Priority 1

Enhance ON-GOING PRELIMINARY

Title: Accelerated Capital Program Support - Redeployment Justification:

On September 9, 2024, City Council adopted the 10-Year Capital Plan 2025-2034 accelerated capital program focused on addressing infrastructure needs, urban development, and sustainability to support growth, improved services, and asset renewal. This $2.57 billion plan includes significant investments in infrastructure, parks, and transportation to enhance the quality of life for residents. For this plan to be successful, additional resources will be required. These resources will be added when necessary, with funding predominantly through capital project budgets with any operating impacts funded through redeployment of existing budget.

Strategic Direction:

Other

Year

Cost

Reserve

Borrow

Grant

—

DCC Reserve —

2025

—

2026 2027

Utility

Taxation

—

Other Revenue —

—

327

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Title: Front Office Equipment Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for front office equipment. As work patterns shift, a mobile-friendly setting for information workers is vital. Annual items for consideration may include, but are not limited to, purchasing and renewing staff computers, devices, meeting systems as well as software, Microsoft licensing, and cybersecurity.

Strategic Direction:

Other

Year

Cost

Reserve

2025

612,000

(612,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: IT Communications Systems Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for IT communications systems. Annual items for consideration may include, but are not limited to, upgrade existing networking, security and communications equipment such as network switches, firewalls, wireless access points, fibre optic service lines, networking and security software, and phone system upgrades.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

2025

350,000

(350,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

328

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Title: Major Systems Projects Justification:

Enhance ONE-TIME PRELIMINARY

Budget is requested for this annual program for major systems. Annual items for consideration may include, but are not limited to, modernization of legacy applications, analytic solutions, and dashboards. The City has over 200 legacy systems, data analytics solutions, and dashboards to help with better decision making that are at or reaching end-of-life.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

2025

871,000

(871,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: Server & Data Storage Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program for server and data storage. Annual items for consideration may include, but are not limited to, advance the implementation of disaster recovery infrastructure and aids the cyber security program in safeguarding the City's digital assets.

Strategic Direction:

Digital Transformation

Year

Cost

Reserve

2025

53,000

(53,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

329

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Title: Building Systems & Infrastructure Justification:

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program of building systems and infrastructure. Annual items for consideration may include, but are not limited to, replacing end of life equipment, energy efficiency improvements and general building renewal items.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,080,000

(2,930,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: Facilities Portfolio Planning Justification:

Utility

Taxation

(150,000)

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for this annual program to support strategic internal improvements in all municipal facilities. Annual items include: renovations, fit-out improvements in lease spaces, furniture renewal, and feasibility studies. Budget is also requested to fund programs/projects that are developed in partnership with community groups, sports groups, other organizations or developers, or for the pursuit of grant opportunities.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,770,000

(770,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

(1,000,000)

330

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Title: Placemaking Justification:

Enhance ONE-TIME PRELIMINARY

Strategic Direction:

Other

Year

Cost

Reserve

2025

250,000

(250,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Utility

Taxation

—

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Vehicles & Equipment - Growth Justification:

Budget is requested for this annual program for growth vehicles which is for additional equipment to support increased expectations for service and maintenance, growth, and regulatory requirements. Zero emission vehicles will be selected where viable/possible.

Strategic Direction:

Other

Year

Cost

Reserve

2025

75,000

—

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

(75,000)

—

331

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Vehicles & Equipment - Renewal Justification:

Budget is requested for this annual program for vehicle/equipment renewal which replaces end of life vehicle/equipment for various City departments. Unit replacement considers equipment type, seasonal use and equipment condition. Electric or Zero Emission Vehicles will be selected where viable/possible.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,910,000

(3,910,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: General Land Acquisition Justification:

Utility

Taxation

—

Enhance ONE-TIME PRELIMINARY

Budget is requested to purchase lands that are of strategic value and in alignment with the City of Kelowna's Land Strategy. Potential considerations in the purchase of specific lands include facilitating land assemblies in conjunction with other city assets, creating a revenue-generating land bank, and enhancing the City's ability to revitalize and redevelop areas within our community. Land purchases can be used to address the ever-increasing, complex challenges of our community, making it imperative that the City continue to capitalize on opportunities as they come available.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,800,000

(800,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

(1,000,000)

332

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Marine Facilities Justification:

The development and oversight of a comprehensive marine facility program is needed to deliver consistent, professional, and safe amenities and services at the city's public docks, boat launches, moorage buoys and other community foreshore / marine interests. Budget is requested for the initial planning and design of this program.

Strategic Direction:

Economy

Year

Cost

Reserve

2025

100,000

(100,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: Buildings Systems Renewal - City Hall Renewal Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for buildings systems renewals at City Hall. Some of the renewal items include envelope, HVAC and mechanical.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,761,000

(1,761,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

333

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Buildings Systems Renewal - Memorial Arena Justification:

Budget is requested for buildings systems renewals at Memorial Arena. Some of the renewal items include HVAC and electrical.

Strategic Direction:

Other

Year

Cost

Reserve

2025

450,000

(450,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: Buildings Systems Renewal - Sarson's Activity Centre Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested to replace end of life building system renewal items including energy upgrades at Sarson's Activity Centre.

Strategic Direction:

Other

Year

Cost

Reserve

2025

125,000

(125,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

334

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Electric Vehicle Infrastructure Installation Justification:

Budget is requested to install electric vehicle infrastructure to support the operations of Fleet Services. This includes design and procurement of electrical infrastructure and chargers. Work will be based off of the Green Fleet Strategy and supporting infrastructure assessment.

Strategic Direction:

Climate & Environment

Year

Cost

Reserve

2025

500,000

(500,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: Enterprise Fire Hall #1 Improvements Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for upgrades at the Enterprise Fire Hall. These upgrades will include mechanical, security, and vehicle storage.

Strategic Direction:

Other

Year

Cost

Reserve

2025

1,350,000

(1,350,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

335

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Gymnastics Centre (Rutland) Improvements Justification: Budget is requested to replace the end of life HVAC system at the Gymnastics Centre.

Strategic Direction:

Other

Year

Cost

Reserve

2025

100,000

(100,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: H2O Centre Improvements Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested for end of life equipment replacements at the H2O Centre including locker renewals and energy modernization.

Strategic Direction:

Other

Year

Cost

Reserve

2025

2,674,000

(2,674,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

336

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: LED Lighting Upgrades Justification: Budget is requested for obsolete lighting at various locations throughout the City.

Strategic Direction:

Climate & Environment

Year

Cost

Reserve

2025

400,000

(400,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Priority 1

Title: MNP Place Roof Replacement Justification:

Utility

Taxation

—

Maintain ONE-TIME PRELIMINARY

Budget is requested to replace end of life roof system at MNP Place. The new roof will include increased insulation where feasible to help meet energy performance targets.

Strategic Direction:

Other

Year

Cost

Reserve

2025

7,000,000

(2,000,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

(5,000,000)

337

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Maintain ONE-TIME PRELIMINARY

Title: Prospera Place Improvements Justification:

Budget is requested for end of life equipment replacements at Prospera Place. Items included for renewal/improvements include HVAC, mechanical, roofing and upgrades relating to the Memorial Cup bid.

Strategic Direction:

Other

Year

Cost

Reserve

2025

3,960,000

(3,960,000)

DCC Reserve —

Borrow

Grant

—

Service Area: Enabling Services

Other Revenue —

Utility

Taxation

—

Priority 1

Maintain ONE-TIME

Title:

Rutland Arena Improvements & Heatsharing w/Kelowna Family Justification: Y

PRELIMINARY

Budget is requested for end of life equipment replacements at Rutland Arena and Kelowna Family Y. These improvements would look to establish a heat recovery and sharing opportunity between Rutland Arena and the Family Y.

Strategic Direction:

Other

Year

Cost

Reserve

2025

2,025,000

(2,025,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

338

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Capital Request Details Service Area: Enabling Services

Priority 1

Enhance ONE-TIME PRELIMINARY

Title: Cook Beach Park- Groyne & Pier Justification:

Budget is requested for the design and construction of a new groyne and pier at the Cook Rd boat launch, pending Provincial permits.

Strategic Direction:

Other

Year

Cost

Reserve

2025

175,000

(175,000)

DCC Reserve —

Borrow

Grant

—

Other Revenue —

Utility

Taxation

—

339

2025 FINANCIAL PLAN

CITY OF KELOWNA

340

2025 FINANCIAL PLAN

CITY OF KELOWNA

Report to Council Date:

March 10, 2025

To:

Council

From:

City Manager

Subject:

2025 Financial Plan – Carryover Budget - Volume 2

Department:

Financial Planning

Recommendation: THAT the 2025 Financial Plan be increased by $4,918,600 for operating carryover projects and $43,508,000 for capital carryover projects as summarized in the 2025 Financial Plan – Carryover Budget – Volume 2. Purpose: To present the 2025 Financial Plan – Carryover Budget - Volume 2 to Council for approval and inclusion into the 2025 Financial Plan. Background: The operating and capital projects listed in the 2025 Financial Plan – Carryover Budget – Volume 2 represent projects that were not completed in 2024 or were originally planned to be completed over multiple years. These projects were previously approved by Council, and therefore do not add to the taxation demand for 2025. Funding sources for these projects include reserves, debt, utility, and other contributions, including grants. The City is in the process of transitioning from full project budgeting to cash flow budgeting. Cash flow budgeting focuses on the timing of cash inflows and outflows, ensuring that an organization has the liquidity to meet its financial obligations as they arise, and aligns annual property tax collection with anticipated spending. As this new methodology is adopted, it is expected that the number of carryover projects will be significantly reduced. Corporate financial policy and guidelines were established in 2021 to provide a consistent framework for an incomplete operating and/or capital project budget to be considered for carryover into the following budget year, where funding is available. This policy applies to all operating and capital budget items whose underspending in a budget year is a result of timing, scope change, or is a multi-year undertaking and is requiring a carryover to the following budget year to complete the project. This underspending, if not carried forward into the following budget year, would not allow for the completion of the project and the lapsed funding would flow into the City’s annual surplus. To be eligible for budget carryover a request must be justified and meet one of the following criteria: • • • • • • •

Design Option: A one-time operating or capital project that is waiting for a design decision or is being re-scoped due to a change in circumstances. External Event: A one-time operating or capital project that is delayed due to an unanticipated external event. Multi-Year: A one-time operating or capital project that is planned over multiple years and has been identified as such in the original budget request. Scheduling: A one-time operating or capital project that is delayed due to internal scheduling conflicts. Awaiting Grant Information: A one-time operating or capital project that is on hold pending grant approval. Program: An operating or capital project that is part of a larger annual program that has a list of projects that exceed the annual budget. Council Approved: An operating project with a base budget that has been approved by Council to be used as funding for a project on a one-time basis.

341

2025 FINANCIAL PLAN

•

CITY OF KELOWNA

Policy: An operating project with a base budget that has a Council-endorsed policy to support a carryover.

For 2025, the carryover criteria Multi-Year makes up 40 per cent of the overall carryover counts, representing projects previously approved to be completed over multiple years. With respect to the remainder of the projects, 33 per cent are projects delayed by unanticipated external events including contractor delays, 23 per cent were delayed due to internal scheduling challenges, 3 per cent caused by design delays, and 1 per cent are Council approved or have a policy that direct the carryover of remaining budget. A detailed discussion of projects included in this volume is not planned. Should Council have questions regarding any specific carryover and would like it discussed at the March 10, 2025 meeting, please advise the City Manager in advance and he will arrange for a service area representative to attend the Council meeting. Considerations applicable to this report: Financial/Budgetary Considerations: A consolidated 2025-2029 Five-Year Financial Plan will be brought to Council for adoption by bylaw at Final Budget on April 28, 2025. This will precede adoption of the 2025 property tax bylaw, in accordance with Section 165 of the Community Charter. Considerations not applicable to this report: Legal/Statutory Authority: Legal/Statutory Procedural Requirements: Existing Policy: External Agency/Public Comments: Communications Comments: Submitted by: M. Antunes, CPA, Financial Planning Manager

Approved for inclusion: J. Sass, CPA, CA, General Manager Corporate Services Attachments: Attachment A: 2025 Financial Plan – Carryover Budget – Volume 2 Attachment B: 2025 Financial Plan – Carryover Budget – Volume 2 Presentation

342

2025 FINANCIAL PLAN

CITY OF KELOWNA

CARRYOVER BUDGET The Carryover budget volume represents the incomplete projects, due to various reasons, from the 2024 budget year. These incomplete projects are being requested for carryover to 2025 with the intention of completion, or continuation in the case of multiple year projects. The total value of the 2025 Carryover volume is $48.4 million, increasing the 2025 operating program by $4.9 million and capital program by $43.5 million with no effect on taxation as these projects were previously approved by Council.

CARRYOVER REQUEST THREE-YEAR COMPARISON ($ millions) The City is transitioning from full project budgeting to cash flow budgeting. Starting in 2025, multi-year projects will have annual budgets based on planned cash flows instead of requesting full project budgets upfront and carrying them over yearly for the duration of the project. The 2025 Carryover value has decreased from 2024, particularly in the capital requests. As this new budget method is adopted, carryover projects are expected to decrease further. The table below splits the last three years of carryovers between operating and capital. Total Carryover

2025

2024

2023

$48M

$279M

$237M

Operating

$5M = 10%

$9M = 3%

$19M = 8%

Capital

$44M = 90%

$270M = 97%

$218M = 92%

CARRYOVER PROJECTS BY REASON TYPE There are several reasons why operating and capital projects are requested to be carried over. Corporate financial policy requires all budget carryover requests to meet one of the following criteria.

External Event A one-time operating or capital project delayed due to an unanticipated external event, the event was beyond City control and includes an expectation the project is to continue in the next year with a completion date. Examples of 2025 carryover projects with the External Event reason code include DeHart Park at $4.0 million, Bertram Multiuse Overpass at $3.5 million, and Non-Potable Water Network & Facilities at $3.2 million.

Design Option A one-time operating or capital project that is waiting for a design decision or is being re-scoped due to a change in circumstances. The 2025 carryover projects with the Design Option reason code include Potable Water Network & Facilities at $220,000, Capital Planning Process Review at $49,000 and Non-Potable Improvements at $46,000.

343

2025 FINANCIAL PLAN

CITY OF KELOWNA

Multi-Year A one-time operating or capital project that is planned to be completed over multiple years and has been identified as such in the original budget request. The adoption of cash flow budgeting is expected to have the greatest impact on multi-year carryovers. Examples of 2025 carryover projects with the Multi-Year reason code category include Wastewater System Upgrades at $3.3 million, Burne Park at $2.4 million, and Wastewater Network & Facilities at $1.8 million.

Scheduling Demands A one-time operating or capital project that is delayed due to internal scheduling conflicts. Examples of 2025 carryover projects with the Scheduling Demands reason code category include Solid Waste Infrastructure & Facilities at $2.8 million and Equipment and Vehicle (Growth) at $1.7 million.

Awaiting Grant Information A one-time operating or capital project that is on hold pending grant approval. There are no 2025 carryover projects on hold due to grant funding approval.

Program An operating or capital project that is part of a larger annual program that has a list of projects that exceed the annual budget. There are no 2025 carryover projects with the Program reason code category.

Council Approved An operating project with a base budget that has been approved by Council to be used as funding for a project on a one-time basis. There are no 2025 carryover projects with the Council Approved reason code category.

Policy An operating project with a base budget that has a Council endorsed policy to support a carryover. The 2025 carryover projects with the Policy reason code category include Event Support Policy at $193,000. The graph below displays the carryover reason types by percentage of total number of carryover requests for 2025. The Multi-Year carryover category makes up the greatest proportion of requests, due to many large projects requiring more than one year to complete. External Event was the second most common reason for carryover, largely due to supply chain issues including contractor availability or capacity constraints. Carryover Reason Codes

Multi-Year 40% External Event 33% Scheduling Demands 23% Design Option 3% Council Approved or Policy 1%

Total Requests: 87

344

2025 FINANCIAL PLAN

CITY OF KELOWNA

The funding sources for carryover requests align with the funding source of the previously approved projects and do not impact taxation demand.The graph below displays the funding strategy of 2025 carryover requests by total dollar value of each funding type. General, statutory, and DCC reserve funding accounts for a total of 89 per cent of the total carryover dollar value, with the remainder being funded by grants, revenue, utility funds, and borrowing. Funding Strategy

Reserve 73% DCC Reserve 16% Grant 8% Other Revenue 1% Utility 1% Borrow 1%

Total:

$48.4M

345

2025 FINANCIAL PLAN

CITY OF KELOWNA

SUMMARY OF MULTI-YEAR REQUESTS The City is in the process of transitioning from full project budgeting to cash flow budgeting, meaning that annual budgets for multi-year projects are based on cash flow in each budget year rather than budgeted in full in the first year. This has significantly reduced the multi-year carryover requests for 2025. The details of multi-year carryover requests are not presented in the Financial Plan as they were identified as multi-year projects when the original request was approved by Council. Multi-year operating and capital projects requested for carryover in 2025 are summarized in the table below. Project Amount

2025 Carryover Multi-Year Requests Airport Airport - Hotel and Parkade Enabling Works Airport - Lifecycle Replacement & Upgrades Airport Total

$ 482,000 $ 1,240,000 $ 1,722,000

Community Safety & Bylaw Community Safety Plan Implementation Building Safer Communities Grant Outdoor Overnight Sheltering Community Safety & Bylaw Total

$ $ $ $

Fire Safety NG911 Implementation Fire Safety Total

$ $

Funding Original Expected Operating/ Source Budget Year Completion Capital RES RES

2022 2020

2025 2025

Capital Capital

445,100 189,500 276,400 911,000

RES GRA RES/OTH

2021 2022 2021

2027 2026 2025

Operating Operating Operating

716,000 716,000

GRA

2023

2026

Capital

Wastewater Utility Wastewater Network & Facilities Wastewater System Upgrades Wastewater Treatment Wastewater Utility Total

$ 1,763,000 $ 3,328,000 $ 784,000 $ 5,875,000

RES RES/DCC RES/OTH

2024 2024 2021

2025 2026 2025

Capital Capital Capital

Stormwater & Flood Protection Area Based Water Management Plan Stormwater & Flood Protection Total

$ $

100,000 100,000

RES/UTIL

2020

2025

Operating

Water Utility Water Supply Wildfire Mitigation Potable Water System Upgrades Water Utility Total

$ 25,500 $ 843,000 $ 868,500

RES RES/DCC

2024 2024

2025 2025

Operating Capital

Solid Waste & Landfill Composting System Expansion Solid Waste & Landfill Total

$ 1,189,000 $ 1,189,000

RES

2023

2025

Capital

$ $

74,700 99,400

RES RES

2023 2024

2025 2026

Operating Operating

$ 77,700 $ 100,000 $ 90,600 $ 1,134,000 $ 1,576,400

RES RES OTH RES/DCC

2024 2023 2024 2024

2025 2025 2025 2025

Operating Operating Operating Capital

Transportation Pandosy Richter Study Employer Commute Trip Reduction Program Pilot Implementation Transportation Accessibility Strategy Downtown Transportation Review Travel Demand Model Update - Phase I Road Network Transportation Total

346

2025 FINANCIAL PLAN

CITY OF KELOWNA

Transit YLW Transit Hub Transit Total

$ $

44,000 44,000

RES

2024

2025

Capital

Parks 2024 CRI Firesmart Community Funding Burne Park Rutland Recreation Park Parks Total

$ 50,600 $ 2,359,000 $ 311,000 $ 2,720,600

GRA RES/DCC BOR

2024 2023 2024

2025 2027 2026

Operating Capital Capital

GRA

2024

2026

Operating

Arts & Culture Accessibility and Disability Justice (ADJ) Competency Training Arts & Culture Total

18,000

Community Development Climate and Environment Initiatives Urban Center Planning Framework Community Development Total

$ $ $

433,600 146,000 579,600

RES GRA

2024 2023

2026 2025

Operating Operating

Enabling Services Asset Management Consulting Support Next Generation 911 Initiative Diversity, Equity & Inclusion Strategic Facilities Master Plan Prospera Place Partnership Initiative Strategic Land Development Projects Apple Bowl Improvements Island Stage Rejuvenation Enabling Services Total

$ 67,500 $ 45,000 $ 100,000 $ 205,000 $ 147,300 $ 72,700 $ 53,000 $ 687,000 $ 1,377,500

RES/UTIL GRA RES RES RES RES RES RES/GRA

2023 2023 2024 2021 2024 2024 2023 2023

2026 2025 2025 2025 2025 2025 2025 2025

Operating Operating Operating Operating Operating Operating Capital Capital

Total multi-year projects

$17,697,600

Funding Source Legend: RES = Reserve

GRA = Grant

DCC = Development Cost Charge Reserve

OTH = Other Revenue

BOR = Borrow

UTIL = Utility

PAGE 347

2025 FINANCIAL PLAN

CITY OF KELOWNA

SUMMARY OF OTHER REQUESTS Operating and capital projects requested for carryover in 2025 with reason codes other than Multi-year are summarized in the table below and subsequently presented in detail. 2025 Carryover Requests Airport Airport - Terminal Lifecycle Replacement & Upgrades Airport - Carbon Neutral Initiatives Airport Total

Project Amount

Funding Original Expected Operating/ Source Budget Year Completion Capital

$ 1,355,000

RES

2024

2025

Capital

$ 175,000 $ 1,530,000

RES

2024

2025

Capital

Fire Safety Fire Vehicles & Equipment Fire Safety Total

$ $

16,000 16,000

RES

2024

2025

Capital

Wastewater Utility Commonage - Leachate Reuse Commonage Odour Management Plan Update Wastewater Utility Total

$ $ $

83,200 25,000 108,200

RES/OTH RES/OTH

2024 2023

2025 2025

Operating Operating

Stormwater & Flood Protection Clifton Rd Stormwater Pond Study Stormwater Utility Business Case - Phase 2 Stormwater Basin Plan - Central Area Stormwater & Flood Protection Total

$ $ $ $

29,900 135,200 25,400 190,500

RES RES RES

2024 2024 2023

2025 2025 2025

Operating Operating Operating

Water Utility HVAC Improvements - Water Supply Shop Non-Potable Improvements Pump Station & Reservoir Improvements Non-Potable Water Network & Facilities Potable Water Network & Facilities Water Utility Total

$ 50,000 $ 45,600 $ 215,700 $ 3,237,000 $ 220,000 $ 3,768,300

RES RES RES RES/GRA RES

2024 2024 2024 2020 2024

2025 2025 2025 2026 2026

Operating Operating Operating Capital Capital

Solid Waste & Landfill Solid Waste Infrastructure & Facilities Solid Waste & Landfill Total

$ 2,849,000 $ 2,849,000

RES

2024

2025

Capital

357,000 66,000

RES/DCC RES/DCC

2024 2022

2025 2025

Capital Capital

$ 3,453,000 $ 1,261,000 $ 183,000 $ 200,000 $ 228,000 $ 170,000 $ 5,918,000

RES RES/DCC RES/DCC RES/DCC RES/DCC RES

2020 2022 2023 2022 2023 2023

2025 2025 2025 2025 2025 2025

Capital Capital Capital Capital Capital Capital

Transportation Active Transportation - Abbott St Active Transportation - Ethel St (Rail Trail Cawston) Bertram Multiuse Overpass Roads - Frost Rd Upgrades (w/utilities) Roads - Glenmore Rd Upgrades Roads - Richter St Upgrades Roads - Sutherland Rd Upgrades Active Transportation - Casorso 3 Transportation Total

$ $

348

2025 FINANCIAL PLAN

CITY OF KELOWNA

Parks Greenhouse Expansion Hwy 97 & McCurdy Rd Tree Planting Parks Masterplan Cook Road Boat Launch - Provincial Approvals Parkland Acquisition City Park DeHart Park Kelowna's Newest Waterfront Park Mission Recreation Park Park Infrastructure & Facilities Parks Total

$ 33,000 RES $ 75,400 RES $ 65,800 RES $ 23,300 OTH $ 2,377,000 RES/DCC $ 1,373,000 RES $ 4,041,000 RES/DCC $ 1,973,000 RES/DCC $ 519,000 RES $ 384,000 RES/GRA/OTH $10,864,500

2024 2022 2024 2022 2024 2024 2022 2024 2021 2024

2025 2025 2025 2025 2025 2026 2025 2026 2025 2026

Operating Operating Operating Operating Capital Capital Capital Capital Capital Capital

Sports & Recreation Event Support Policy Sports & Recreation Total

$ $

192,700 192,700

RES

2020

2025

Operating

61,000

RES/GRA

2022

2025

Operating

61,000

40,000

RES

2022

2025

Operating

76,400

RES

2024

2025

Operating

$ $

477,000 593,400

RES

2024

2025

Capital

$ $

106,100 106,100

RES

2024

2025

Operating

$ $ $ $

9,500 83,100 61,000 50,000

UTIL RES/UTIL RES/UTIL RES

2017 2018 2022 2024

2025 2026 2025 2026

Operating Operating Operating Operating

69,600

RES/GRA

2023

2025

Operating

51,100

RES

2024

2025

Operating

21,000

RES

2020

2025

Operating

$ 381,600 $ 94,400 $ 49,000 $ 1,660,000 $ 37,000

RES GRA RES RES/UTIL RES

2022 2024 2022 2024 2024

2025 2025 2025 2025 2025

Operating Operating Operating Capital Capital

Arts & Culture Indigenous Community Engagement Framework Arts & Culture Total Parking Curb Space Management Strategy Development Recreation Parks and Facilities & CapriLandmark Parking Studies Parking Infrastructure & Facilities Parking Total Partnership Office Partnerships Office Consulting Partnership Office Total Enabling Services Kelowna Integrated Water Asset Management 20 Year Servicing Plan and DCC Bylaw Update 2040 Infrastructure Plan Consulting Support Fleet Repair Garage - Hardy St. Facility Upgrades Accessibility Improvements at Okanagan Heritage Museum Furniture & Equipment - City Hall & Police Services Building Provision of Shelter Services - Optimization of Physical Locations 4690 Hwy 97 Agricultural Considerations Housing Accelerator Grant Program Capital Planning Process Review Equipment and Vehicle (Growth) Building Systems & Infrastructure

349

2025 FINANCIAL PLAN

CITY OF KELOWNA

Server & Data Storage Major Systems Property Acquisition Enabling Services Total

$ 342,000 $ 468,000 $ 1,154,000 $ 4,531,300

Total projects

$30,729,000

RES RES RES

2024 2024 2024

2025 2025 2025

Capital Capital Capital

Funding Source Legend: RES = Reserve

GRA = Grant

DCC = Development Cost Charge Reserve

OTH = Other Revenue

BOR = Borrow

UTIL = Utility

350

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Airport

Reason:

EXT EVENT CAPITAL CARRYOVER

Title: Airport - Terminal Lifecycle Replacement & Upgrades Justification: Five Airport Terminal Building improvement projects were not completed in 2024 due to contractor capacity restraints, supply chain issues, and competing priorities. A carryover is requested to allow for finalizing the installation of the first phase roof top unit replacement, delivery and installation of the second phase of the roof top unit replacement, baggage belt upgrades, PC virtualization, and to receive delivery of critical inventory.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

2,640,000 975,000 310,000 1,355,000

Strategic Direction:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

1,355,000

Service Area:

Expected Completion:

Reserve DCC Reserve (1,355,000)

—

Borrow

Grant

Other Revenue

Utility

—

Airport

Reason:

SCHED CAPITAL CARRYOVER

Title: Airport - Carbon Neutral Initiatives Justification: A carryover is requested to complete the installation of phase 2 of the air terminal building LED lighting upgrades and of the level one vehicle charging stations in the Airport's valet lots, aligned with the Airport's goal to be carbon neutral by 2030. These projects were not completed before the end of the year due to peak period operational constraints.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction: Year 2025

936,000 733,000 28,000 175,000

Expected Completion:

Dec 2025

Climate & Environment - Reduce corporate and community GHG emissions Other Cost Reserve DCC Reserve Borrow Grant Revenue 175,000

(175,000)

—

Utility —

351

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Fire Safety

Reason:

EXT EVENT CAPITAL CARRYOVER

Title: Fire Vehicles & Equipment Justification: Carryover is requested to outfit a 2024 fire vehicle with ancillary equipment. Work was not completed in 2024 due to timing of receiving the equipment.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

101,000 85,000 — 16,000

Strategic Direction:

Mar 2025

Other - Supports Base Business

Year

Cost

2025

16,000

Service Area:

Expected Completion:

Reserve DCC Reserve (16,000)

—

Borrow

Grant

Other Revenue

Utility

—

Wastewater Utility

Reason:

SCHED OPERATING CARRYOVER

Title: Commonage - Leachate Reuse Justification: Carryover is requested to continue the planning and design work for the Regional Biosolids Commonage facility beneficial leachate reuse project. The project has been delayed due to internal scheduling challenges. The preliminary design was completed in 2024, and detailed design work is planned for 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

90,000 6,800 — 83,200

Strategic Direction:

Expected Completion:

Dec 2025

Climate & Environment -Protect and restore natural areas

Year

Cost

2025

83,200

Reserve DCC Reserve (55,500)

—

Borrow

Grant

Other Revenue

Utility

—

(27,700)

—

352

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Wastewater Utility

Reason:

EXT EVENT OPERATING CARRYOVER

Title: Commonage Odour Management Plan Update Justification: Carryover is requested for the Odour Management Plan Update which is a Ministry of Environment Permit Requirement. It must follow an odour monitoring system renewal, which was impacted by supply chain issues in previous years, causing a delay in initiating this project. The contractor experienced unforeseen challenges that slowed work in 2024. A draft plan is anticipated in early 2025, with final completion also expected in 2025. The cost is shared with the City of Vernon and the City's Wastewater Utility.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

43,000 3,200 14,800 25,000

Strategic Direction:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

25,000

Service Area:

Expected

Reserve DCC Reserve (16,600)

—

Borrow

Grant

Other Revenue

Utility

—

(8,400)

—

Stormwater & Flood Protection

Reason:

SCHED OPERATING CARRYOVER

Title: Clifton Rd Stormwater Pond Study Justification: Carryover is requested to continue the investigation of the possibility of reconfiguring two stormwater ponds at the intersection of Clifton Rd and Highpointe Dr that was not completed in 2024 due to scheduling challenges. A 2025 capital budget request was approved as part of the 2025 Preliminary Budget volume for construction of the proposed reconfiguration.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

30,000 100 — 29,900

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

29,900

Reserve DCC Reserve (29,900)

—

Borrow

Grant

Other Revenue

Utility

—

353

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Stormwater & Flood Protection

Reason:

Title:

Stormwater Utility Business Case - Phase 2

SCHED OPERATING CARRYOVER

Justification: Carryover is requested to continue with the stormwater utility business case and implementation, focusing on community alignment, public engagement, and a detailed rate structure analysis. A workshop with Council is scheduled for March 2025 to decide the project's future, with potential additional budget consideration through a 2025 budget amendment.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Expected Completion:

Dec 2025

Active Financial Management -Increase non-tax revenues to minimize the reliance on taxes Other Cost Reserve DCC Reserve Borrow Grant Revenue Utility

Strategic Direction: Year 2025

334,700 199,500 — 135,200

135,200

(135,200)

Service Area:

Stormwater & Flood Protection

Title:

Stormwater Basin Plan - Central Area

—

Reason:

— EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested for the completion of this planning project that supports urban development efforts and ensures that localized flooding is avoided. The final report is expected by Q2 of 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested: Strategic Direction: Year 2025

178,900 153,500 — 25,400

Expected Completion:

Jul 2025

Climate & Environment -Include climate impact lens in City decision making Other Cost Reserve DCC Reserve Borrow Grant Revenue 25,400

(25,400)

—

Utility —

354

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Water Utility

Reason:

Title:

HVAC Improvements - Water Supply Shop

SCHED OPERATING CARRYOVER

Justification: Carryover is requested for the purchase and installation of HVAC equipment to ensure proper cooling of the Water Supply Shop to ensure a proper working environment for staff and potential for flexible workspaces. Project was delayed in 2024 due to other higher priority projects taking precedence. Resourcing is now available and project completion is anticipated by Q4 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

50,000 — — 50,000

Strategic Direction:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

50,000

Service Area:

Expected Completion:

Reserve DCC Reserve (50,000)

—

Borrow

Grant

Other Revenue

Utility

—

Water Utility

Reason:

DESIGNOPT OPERATING CARRYOVER

Title: Non-Potable Improvements Justification: Carryover is requested to continue consulting services and design work due to scope change on the McCulloch Spillway channel maintenance project. This project is to increase efficiency of water released from McCullough lake and ensure that the McCullough spillway is appropriately restored to insure dam safety. In addition, regulatory and water management efficiency work continues on the Hydraulic Creek intake bypass project with anticipated completion Q4 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

135,000 89,400 — 45,600

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

45,600

Reserve DCC Reserve (45,600)

—

Borrow

Grant

Other Revenue

Utility

—

355

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Water Utility

Reason:

Title:

Pump Station & Reservoir Improvements

EXT EVENT OPERATING CARRYOVER

Justification: A carryover is requested to facilitate the completion of multiple pump station and reservoir projects. The Timberline and Rio Reservoir electrical upgrade projects have been delayed due to property and easement-related issues. The Grainger Reservoir drain work will be completed as part of the capital reservoir upgrade project, while the Dilworth altitude valve project has been prolonged due to delays in delivery of replacement hatches necessary for project completion.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

219,400 3,700 — 215,700

Strategic Direction:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

215,700

Service Area:

Expected Completion:

Reserve DCC Reserve (215,700)

—

Borrow

Grant

Other Revenue

Utility

—

Water Utility

Reason:

EXT EVENT CAPITAL CARRYOVER

Title: Non-Potable Water Network & Facilities Justification: Carryover is requested for this annual program to ensure reliable irrigation water service delivery and fire protection for City customers connected to the non-potable system. Carryover items for consideration may include, but are not limited to, renew existing mainlines, hydrants, pump stations, reservoirs, dams and pressure reducing valves (PRVs). Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

3,510,000 273,000 — 3,237,000

Strategic Direction:

Expected Completion:

Jul 2026

Other - Supports Base Business

Year

Cost

2025

3,237,000

Reserve DCC Reserve (517,000)

—

Borrow

Grant

Other Revenue

Utility

—

(2,720,000)

—

356

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Water Utility

Reason:

Title:

Potable Water Network & Facilities

DESIGNOPT CAPITAL CARRYOVER

Justification: Carryover is requested for this annual program to ensure reliable safe drinking water service delivery and fire protection for City customers connected to the potable system. Carryover items for consideration may include, but are not limited to, renew existing mainlines, hydrants, pump stations, reservoirs, and pressure reducing valves (PRVs). Work was not completed in 2024 due to design options.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

400,000 30,000 150,000 220,000

Strategic Direction:

Dec 2026

Other - Supports Base Business

Year

Cost

2025

220,000

Service Area:

Expected Completion:

Reserve DCC Reserve (220,000)

—

Borrow

Grant

Other Revenue

Utility

—

Solid Waste & Landfill

Reason:

SCHED CAPITAL CARRYOVER

Title: Solid Waste Infrastructure & Facilities Justification: Carryover is requested for this annual program for solid waste infrastructure and facilities. Carryover items include, but are not limited to, site works and investigations, progressive closure and landfill gas and leachate recirculation laterals. Work was not completed in 2024 due to internal scheduling challenges.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

3,568,000 719,000 — 2,849,000

Strategic Direction:

Expected Completion:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

2,849,000

Reserve DCC Reserve (2,849,000)

—

Borrow

Grant

Other Revenue

Utility

—

357

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Transportation

Reason:

Title:

Active Transportation - Abbott St

SCHED CAPITAL CARRYOVER

Justification: Carryover is requested to complete the design of the Abbott Active Transportation Corridor from Cedar Ave to Walnut St and for small-scale land acquisitions between Walnut St and Watt Rd. Construction in 2025 will allow coordination with adjacent park frontage upgrades. Work was not completed in 2024 because of internal scheduling.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

454,000 97,000 — 357,000

Strategic Direction:

Expected Completion:

Dec 2025

Transportation - More trips by alternative transportation modes

Year

Cost

2025

357,000

Reserve DCC Reserve (273,000)

Borrow

Grant

Other Revenue

Utility

—

(84,000)

Service Area:

Transportation

Reason:

Title:

Active Transportation - Ethel St (Rail Trail - Cawston)

SCHED CAPITAL CARRYOVER

Justification: Carryover is requested to complete the detailed design of the Ethel Active Transportation Corridor between Cawston St and the Okanagan Rail Trail. Work was not completed in 2024 because of internal scheduling.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

83,000 17,000 — 66,000

Strategic Direction:

Expected Completion:

Sep 2025

Transportation - More trips by alternative transportation modes

Year

Cost

2025

66,000

Reserve DCC Reserve (57,000)

(9,000)

Borrow

Grant

Other Revenue

Utility

—

358

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Transportation

Reason:

Title:

Bertram Multiuse Overpass

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested to complete the construction of the Bertram Multiuse Overpass. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

10,928,000 7,475,000 — 3,453,000

Strategic Direction:

Expected Completion:

Jun 2025

Transportation - More trips by alternative transportation modes

Year

Cost

2025

3,453,000

Reserve DCC Reserve (3,453,000)

—

Service Area:

Transportation

Title:

Roads - Frost Rd Upgrades (w/utilities)

Borrow

Grant

Other Revenue

Utility

—

Reason:

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for this project to complete the construction of Frost Rd (Killdeer to Chute Lake) including a new roundabout at Chute Lake Rd. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction: Year 2025

1,985,000 724,000 — 1,261,000

Expected Completion:

Dec 2025

Transportation - Capacity and traffic flow is enhanced on major road corridors Other Cost Reserve DCC Reserve Borrow Grant Revenue 1,261,000

(202,000)

(1,059,000)

—

Utility —

359

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Transportation

Reason:

Title:

Roads - Glenmore Rd Upgrades

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested to complete the Glenmore Active Transportation Corridor (Dallas to Yates). Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

1,315,000 1,132,000 — 183,000

Strategic Direction:

Expected Completion:

Mar 2025

Transportation - More trips by alternative transportation modes

Year

Cost

2025

183,000

Reserve DCC Reserve (148,000)

Service Area:

Transportation

Title:

Roads - Richter St Upgrades

(35,000)

Borrow

Grant

Other Revenue

Utility

—

Reason:

SCHED CAPITAL CARRYOVER

Justification: Carryover is requested to undertake preliminary design for the Richter Corridor. Work is expected to commence following the completion of the Richter Corridor Study. Work was not completed in 2024 because of internal scheduling.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction: Year 2025

200,000 — — 200,000

Expected Completion:

Dec 2025

Transportation - Capacity and traffic flow is enhanced on major road corridors Other Cost Reserve DCC Reserve Borrow Grant Revenue 200,000

(45,000)

(155,000)

—

Utility —

360

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Transportation

Reason:

Title:

Roads - Sutherland Rd Upgrades

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested to continue designing the Sutherland Avenue extension between Mill Creek and Spall. Work was not completed in 2024 because of additional stakeholder engagement.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction:

Expected Completion:

Dec 2025

Transportation - Capacity and traffic flow is enhanced on major road corridors Other Cost Reserve DCC Reserve Borrow Grant Revenue

Year 2025

525,000 297,000 — 228,000

228,000

(48,000)

Service Area:

Transportation

Title:

Active Transportation - Casorso 3

(180,000)

—

Utility

—

Reason:

— EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested to complete the construction at Casorso 3 (KLO Rd - Lanfranco Rd) active transportation corridor. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

539,000 369,000 — 170,000

Strategic Direction:

Expected Completion:

Apr 2025

Transportation - More trips by alternative transportation modes

Year

Cost

2025

170,000

Reserve DCC Reserve (170,000)

—

Borrow

Grant

Other Revenue

Utility

—

361

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parks

Reason:

Title:

Greenhouse Expansion

SCHED OPERATING CARRYOVER

Justification: Carryover is requested for the installation of temporary fencing and a water service to expand staging and assembly areas outside of the Parks yard, to support the forecasted expansion of greenhouse operations. Scheduling challenges delayed the start of this project, which is now underway and expected to be completed in Q1 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

33,000 — — 33,000

Strategic Direction:

Expected Completion:

Mar 2025

Other -Supports Base Business

Year

Cost

2025

33,000

Reserve DCC Reserve (33,000)

Service Area:

Parks

Title:

Hwy 97 & McCurdy Rd Tree Planting

—

Borrow

Grant

Other Revenue

Utility

—

Reason:

SCHED OPERATING CARRYOVER

Justification: Carryover is requested for the Hwy 97 Tree Planting & Black Mountain Tree Planting projects. There was a delay in securing contractors for these projects, which are now in progress expected to be completed in Q1 of 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction: Year 2025

75,500 100 — 75,400

Expected Completion:

Mar 2025

Climate & Environment -Include climate impact lens in City decision making Other Cost Reserve DCC Reserve Borrow Grant Revenue 75,400

(75,400)

—

Utility —

362

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parks

Reason:

Title:

Parks Masterplan

EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested to continue work on the final stage of the Parks Masterplan. Progress was delayed in 2024 due to provincial legislative changes and rapid growth, requiring new population and residential growth predictions. Revised numbers for the Parks Master Plan were received in late 2024. The remaining work includes updating the parks model based on new data and addressing urban core park deficiencies. The project is expected to be completed by December 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

75,000 9,200 — 65,800

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

65,800

Reserve DCC Reserve (65,800)

—

Service Area:

Parks

Title:

Cook Road Boat Launch - Provincial Approvals

Borrow

Grant

Other Revenue

Utility

—

Reason:

EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested for ongoing consultant services associated with the Provincial approvals submitted for improvements to the Cook Road boat launch. This is a multi-year project relating to a complex Provincial Section 11 approval and a resolution is anticipated in 2025. Costs are shared with the partnering developer.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

72,600 49,300 — 23,300

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

23,300

Reserve DCC Reserve —

—

Borrow

Grant

Other Revenue

Utility

—

(23,300)

—

363

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parks

Reason:

Title:

Parkland Acquisition

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for parkland acquisitions initiated in late 2024 with completion dates in 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

7,472,000 5,095,000 — 2,377,000

Strategic Direction:

Expected Completion:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

2,377,000

Service Area:

Parks

Title:

City Park

Reserve DCC Reserve (261,000)

(2,116,000)

Borrow

Grant

Other Revenue

Utility

—

Reason:

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for multiple projects at City Park, including the dog run at City Park, Kerry Park improvements and City Park Phase 2 final clean up. Work was not completed in 2024 due to external contractor delays and weather.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

2,562,000 1,189,000 — 1,373,000

Strategic Direction:

Expected Completion:

Jun 2026

Other - Supports Base Business

Year

Cost

2025

1,373,000

Reserve DCC Reserve (1,373,000)

—

Borrow

Grant

Other Revenue

Utility

—

364

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parks

Reason:

EXT EVENT CAPITAL

Title:

DeHart Park

CARRYOVER

Justification: Carryover is requested to continue construction of DeHart Park which includes the washroom and pump track. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

11,180,000 7,139,000 — 4,041,000

Strategic Direction:

Sep 2025

Other - Supports Base Business

Year

Cost

2025

4,041,000

Service Area:

Expected Completion:

Reserve DCC Reserve (3,326,000)

(715,000)

Borrow

Grant

Other Revenue

Utility

—

Parks

Reason:

EXT EVENT CAPITAL CARRYOVER

Title: Kelowna's Newest Waterfront Park Justification: Carryover is requested for the continued work at Kelowna's Newest Waterfront Park which includes parks road frontage and completion of landscaping around the Kelowna Paddle Centre (KPC). Work was not completed in 2024 due to delays experienced by project partners.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

2,059,000 86,000 — 1,973,000

Strategic Direction:

Expected Completion:

Dec 2026

Other - Supports Base Business

Year

Cost

2025

1,973,000

Reserve DCC Reserve (1,360,000)

(613,000)

Borrow

Grant

Other Revenue

Utility

—

365

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parks

Reason:

Title:

Mission Recreation Park

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested to install protective netting at the Mission Recreation Park softball diamonds. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

2,634,000 2,115,000 — 519,000

Strategic Direction:

Expected Completion:

Apr 2025

Other - Supports Base Business

Year

Cost

2025

519,000

Reserve DCC Reserve (519,000)

Service Area:

Parks

Title:

Park Infrastructure & Facilities

—

Borrow

Grant

Other Revenue

Utility

—

Reason:

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for this annual program to maintain and enhance park infrastructure and facilities. Carryover items include, but are not limited to, parks washrooms, accessibility improvements, irrigation renewal, playgrounds and other park improvements. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

642,000 258,000 — 384,000

Strategic Direction:

Expected Completion:

Dec 2026

Other - Supports Base Business

Year

Cost

2025

384,000

Reserve DCC Reserve (337,000)

—

Borrow

Grant

Other Revenue

Utility

—

(36,000)

(11,000)

—

366

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Sport & Recreation

Reason:

Title:

Event Support Policy

BASE POL OPERATING CARRYOVER

Justification: Per the Event Support Policy No. 381, funds not expended in a focus area in any given year will be automatically carried over and retained for use in the same focus area in the subsequent year.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

192,700 — — 192,700

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

192,700

Reserve DCC Reserve (192,700)

—

Service Area:

Arts & Culture

Title:

Indigenous Community Engagement Framework

Borrow

Grant

Other Revenue

Utility

—

Reason:

EXT EVENT OPERATING CARRYOVER

Justification: Throughout 2024, with the guidance of consultants and in collaboration with Westbank First Nation, significant progress has been made toward developing a Memorandum of Understanding (MOU) and a Commitment to Reconciliation. Activities undertaken included staff and council forums, as well as the development of a draft document. These foundational steps have set the stage for deeper engagement. The ongoing focus is on finalizing the MOU and creating a Commitment to Reconciliation that reflects the values of all parties involved. Delays in the project timeline have arisen due to the need for careful and respectful relationship-building.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

87,700 26,700 — 61,000

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

61,000

Reserve DCC Reserve (51,000)

—

Borrow

Grant

Other Revenue

Utility

—

(10,000)

—

367

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parking

Reason:

Title:

Curb Space Management Strategy - Development

SCHED OPERATING CARRYOVER

Justification: Carryover is requested to allow for development of a curb space management strategy. Staff were unable to launch this project in 2024 due to internal resource limitations and the reprioritization of projects. This strategy will support the effective management of curb space to enhance mobility and access for people and goods, particularly within town centres. In recent years, the demand for this space has continued to grow and broaden to accommodate new forms of mobility that require access.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

40,000 — — 40,000

Strategic Direction:

Expected Completion:

Dec 2025

Transportation -More trips by alternative transportation modes

Year

Cost

2025

40,000

Reserve DCC Reserve (40,000)

—

Borrow

Grant

Other Revenue

Utility

—

Service Area:

Parking

Reason:

Title:

Recreation Parks and Facilities & Capri-Landmark Parking Studies

SCHED OPERATING CARRYOVER

Justification: Phase 1 of the Parking study for recreation Parks and facilities is assessing increased parking demand at various city recreational facilities resulting from the Building a Stronger Kelowna (BSK) project bundle. It will recommend methods to manage demand, particularly during peak periods. The overall intent is to maximize the use of capital assets and protect valuable parkland for other amenities. This project was carried over to 2025 to better align with key milestones associated with BSK projects. The continuation of the parking study for the Capri-Landmark area is being done in conjunction with this project.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

76,800 400 — 76,400

Strategic Direction:

Expected Completion:

Dec 2025

Transportation -More trips by alternative transportation modes

Year

Cost

2025

76,400

Reserve DCC Reserve (76,400)

—

Borrow

Grant

Other Revenue

Utility

—

368

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Parking

Reason:

Title:

Parking Infrastructure & Facilities

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for this annual program of parking infrastructure and facilities. Carryover items for consideration may include, but are not limited to, major maintenance to parkades, electric vehicle infrastructure and strategic initiatives, parking equipment and new off street parking. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

1,128,000 517,000 134,000 477,000

Strategic Direction:

Expected Completion:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

477,000

Reserve DCC Reserve (477,000)

Service Area:

Partnerships Office

Title:

Partnerships Office Consulting

—

Borrow

Grant

Other Revenue

Utility

—

Reason:

SCHED OPERATING CARRYOVER

Justification: Carryover is requested for consulting services budget that was not utilized in 2024 due to scheduling conflicts, positions being filled late in the year and consulting contract delays. Significant projects are planned for 2025 including consulting services for UNESCO, MOU's and legal fees for significant partnerships, site analysis for strategic partnerships, P3 partnership exploration, strategy development for research development with academia partnerships and implementation strategies for current research partnerships. These projects are planned to commence in Q1/Q2 of 2025 with many consultants hired in contracts to start in early 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

448,100 342,000 — 106,100

Strategic Direction:

Expected Completion:

Sep 2025

Other -Supports Base Business

Year

Cost

2025

106,100

Reserve DCC Reserve (106,100)

—

Borrow

Grant

Other Revenue

Utility

—

369

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

Kelowna Integrated Water Asset Management

SCHED OPERATING CARRYOVER

Justification: Carryover is requested to continue collecting and updating the asset information. A consultant was retained in 2024 and work progressed but was not completed due to staffing challenges and shifting priorities. The remaining budget will be used to complete the final phase of updating the related asset inventories.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

26,000 16,500 — 9,500

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

9,500

Reserve DCC Reserve —

—

Service Area:

Enabling Services

Title:

20 Year Servicing Plan and DCC Bylaw Update

Borrow

Grant

Other Revenue

Utility

—

(9,500)

Reason:

EXT EVENT OPERATING CARRYOVER

Justification: These carryover funds from the previous DCC update will be used for an upcoming DCC update in 2025 to respond to new growth forecasts, infrastructure demand and changes to DCC legislation. This work was not completed in 2024 because new growth forecasts and clarification on legislation were not available.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

87,300 4,200 — 83,100

Strategic Direction:

Expected Completion:

Jun 2026

Other -Supports Base Business

Year

Cost

2025

83,100

Reserve DCC Reserve (76,200)

—

Borrow

Grant

Other Revenue

Utility

—

(6,900)

370

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

2040 Infrastructure Plan Consulting Support

SCHED OPERATING CARRYOVER

Justification: Carryover is requested to continue the work on the 2040 Infrastructure Plan. The 2040 Infrastructure Plan will be the City's updated asset management plan and set the direction for infrastructure investment until 2040. This is a multi-year project that was scheduled to be completed in 2024. Work was not completed due to staffing challenges and reprioritization of initiatives. Budget is for consultant support for this staff-led initiative to be completed in 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

92,200 31,200 — 61,000

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

61,000

Reserve DCC Reserve (45,800)

—

Service Area:

Enabling Services

Title:

Fleet Repair Garage - Hardy St. Facility Upgrades

Borrow

Grant

Other Revenue

Utility

—

(15,200)

Reason:

EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested to fund facility upgrades to the aging Fleet Repair shop space including safety and technology improvements. Work planned for 2024 was delayed due to longer than anticipated lead times for necessary parts and equipment and is expected to progress in 2025 with completion planned for Q4 2026.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

50,000 — — 50,000

Strategic Direction:

Expected Completion:

Dec 2026

Other -Supports Base Business

Year

Cost

2025

50,000

Reserve DCC Reserve (50,000)

—

Borrow

Grant

Other Revenue

Utility

—

371

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

Accessibility Improvements at Okanagan Heritage Museum

EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested to complete planned accessibility improvements at the Okanagan Heritage Museum. Delays occurred due to contractor availability. Completion is expected in Q2 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

109,600 40,000 — 69,600

Strategic Direction:

Expected Completion:

Jun 2025

Other -Supports Base Business

Year

Cost

2025

69,600

Reserve DCC Reserve (28,700)

—

Borrow

Grant

Other Revenue

Utility

—

(40,900)

—

Service Area:

Enabling Services

Reason:

Title:

Furniture & Equipment - City Hall & Police Services Building

EXT EVENT OPERATING CARRYOVER

Justification: Carryover is requested for workstations and furniture to support remaining new staff positions that were not filled in 2024. Expected completion Q3 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

113,000 61,900 — 51,100

Strategic Direction:

Expected Completion:

Sep 2025

Other -Supports Base Business

Year

Cost

2025

51,100

Reserve DCC Reserve (51,100)

—

Borrow

Grant

Other Revenue

Utility

—

372

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

EXT EVENT OPERATING

Title:

Provision of Shelter Services - Optimization of Physical Locations

CARRYOVER

Justification: The City is working with various organizations and community groups to improve the delivery of shelter services through coordinated efforts. Carryover is requested to allow continued exploration of land acquisition opportunities and related review of shelter site models and resource allocations.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

Strategic Direction:

Expected Completion:

Jun 2025

Homelessness -Fewer people living on streets with mental health and/or addictions Other Cost Reserve DCC Reserve Borrow Grant Revenue Utility

Year 2025

21,000 — — 21,000

21,000

(21,000)

Service Area:

Enabling Services

Title:

4690 Hwy 97 Agricultural Considerations

—

Reason:

— EXT EVENT OPERATING CARRYOVER

Justification: The City is planning several measures to address the agricultural impacts related to the proposed exclusion of Agricultural Land Reserve property at 4690 Hwy 97, to facilitate the construction of a new transit centre in partnership with BC Transit. The project has experienced delays related to archaeological assessments and procedural requirements, and is expected to be completed in 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

472,600 91,000 — 381,600

Strategic Direction:

Expected Completion:

Dec 2025

Transportation -More trips by alternative transportation modes

Year

Cost

2025

381,600

Reserve DCC Reserve (381,600)

—

Borrow

Grant

Other Revenue

Utility

—

373

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

Housing Accelerator Grant Program

SCHED OPERATING CARRYOVER

Justification: Various Housing Accelerator Fund (HAF) initiatives were approved by council during 2024. Multiple initiatives had unforeseen delays due to staff and partnership constraints. Carryover is requested to complete these initiatives.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

480,700 386,300 — 94,400

Strategic Direction:

Dec 2025

Affordable Housing -Increase affordable housing supply options

Year

Cost

2025

94,400

Service Area:

Expected Completion:

Reserve DCC Reserve —

—

Borrow

Grant

Other Revenue

Utility

—

(94,400)

—

Enabling Services

Reason:

DESIGNOPT OPERATING CARRYOVER

Title: Capital Planning Process Review Justification: Following the Value for Money Audit (VFM) in early 2024 that included recommendations for capital planning and delivery processes to increase the City's infrastructure delivery capacity, staff implemented internal improvements and monitored the changes through the entire capital planning cycle. This budget will be used to support recommended improvements from the VFM and incorporate lessons learned through the past capital planning cycle.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

50,000 1,000 — 49,000

Strategic Direction:

Expected Completion:

Dec 2025

Other -Supports Base Business

Year

Cost

2025

49,000

Reserve DCC Reserve (49,000)

—

Borrow

Grant

Other Revenue

Utility

—

374

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

SCHED CAPITAL

Title:

Equipment and Vehicle (Growth)

CARRYOVER

Justification: Carryover is requested for both equipment and vehicles that were approved in 2024 but will be invoiced and delivered in 2025. These were delayed for various reasons including internal scheduling, vendor availability, and review of design options. These are for Growth vehicles/equipment and ordering is often tied to timing of recruitment of new staff.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

1,660,000 — — 1,660,000

Strategic Direction:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

1,660,000

Service Area:

Expected Completion:

Reserve DCC Reserve (1,277,000)

—

Borrow

Grant

Other Revenue

Utility

—

(383,000)

Enabling Services

Reason:

EXT EVENT CAPITAL CARRYOVER

Title: Building Systems & Infrastructure Justification: Carryover is requested for this annual program of building systems and infrastructure. Carryover items for consideration may include, but are not limited to, replacing end of life equipment, energy efficiency improvements and general building renewal items. Work was not completed in 2024 because of external contractor delays.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

300,000 263,000 — 37,000

Strategic Direction:

Expected Completion:

Jun 2025

Other - Supports Base Business

Year

Cost

2025

37,000

Reserve DCC Reserve (37,000)

—

Borrow

Grant

Other Revenue

Utility

—

375

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

Server & Data Storage

SCHED CAPITAL CARRYOVER

Justification: Carryover is requested for this annual program for server and data storage. Carryover items for consideration may include, but are not limited to, advance the implementation of disaster recovery infrastructure and aids the cyber security program in safeguarding the City's digital assets. Work was not completed in 2024 because of internal scheduling.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

860,000 518,000 — 342,000

Strategic Direction:

Expected Completion:

Jun 2025

Other - Supports Base Business

Year

Cost

2025

342,000

Reserve DCC Reserve (342,000)

Service Area:

Enabling Services

Title:

Major Systems

—

Borrow

Grant

Other Revenue

Utility

—

Reason:

SCHED CAPITAL CARRYOVER

Justification: Carryover is requested for this annual program for major systems. Carryover items for consideration may include, but are not limited to, modernization of legacy applications, analytic solutions, and dashboards. Work was not completed in 2024 because of internal scheduling.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

1,372,000 904,000 — 468,000

Strategic Direction:

Expected Completion:

Dec 2025

Other - Supports Base Business

Year

Cost

2025

468,000

Reserve DCC Reserve (468,000)

—

Borrow

Grant

Other Revenue

Utility

—

376

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Carryover Request Details Service Area:

Enabling Services

Reason:

Title:

Property Acquisition

EXT EVENT CAPITAL CARRYOVER

Justification: Carryover is requested for property acquisitions initiated in late 2024 that were not completed until 2025.

2024 Budget: 2024 Expenditures: 2024 Budget Not Required: Carryover requested:

3,455,000 2,301,000 — 1,154,000

Strategic Direction:

Expected

Dec 2025

Other - Supports Base Business

Year

Cost

2025

1,154,000

Reserve DCC Reserve (1,154,000)

—

Borrow

Grant

Other Revenue

Utility

—

377

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 FINANCIAL PLAN

CITY OF KELOWNA

Report to Council Date:

April 28, 2025

To:

Council

From:

City Manager

Subject:

2025 Financial Plan – Final Budget Volume

Department:

Financial Services

Recommendation: THAT Council adopts the 2025-2029 Financial Plan. AND THAT Council approves the formulation of 2025 Property Tax Rates that will raise the required funds in 2025, from General Taxation, in the amount of $204,274,126 resulting in an average net property owner impact of 4.34 per cent. AND THAT Bylaw No. 12770 being the Five-Year Financial Plan 2025-2029 be advanced for reading consideration. AND THAT Bylaw No. 12771 being the Tax Structure Bylaw, 2025 be advanced for reading consideration. AND THAT Bylaw No. 12772 being the Annual Tax Rates Bylaw, 2025 be advanced for reading consideration. AND THAT Bylaw No. 12773 being the DCC Reserve Fund Expenditure Bylaw, 2025 be advanced for reading consideration. AND THAT Bylaw No. 12774 being the Sale of City Owned Land Reserve Fund Expenditure Bylaw, 2025 be advanced for reading consideration. AND THAT Bylaw No. 12775 being the Density Bonusing for Public Amenities and Streetscape Reserve Fund Expenditure Bylaw, 2025 be advanced for reading consideration. AND FURTHER THAT Bylaw No. 12776 being the Septic Removal Specified Area Reserve Fund Expenditure Bylaw, 2025 be advanced for reading consideration. Purpose: To present the 2025 Final Budget Volume submissions, the 2025-2029 Financial Plan, and related bylaws to Council for their consideration and approval. Background: Council approved the 2025 Financial Plan – Preliminary Volume on December 5, 2024 and the addition of the 2025 Financial Plan – Carryover Budget Volume on March 10, 2025. The 2025 Financial Plan - Final Budget Volume includes emergent, legislated or Council directed requests. The three volumes provide the 2025 portion of the 2025-2029 Five Year Financial Plan. Depending on the nature of the item being considered within Final Budget, the adjustments could cause the final tax demand to increase or decrease. The City of Kelowna’s strong financial management and clear budgeting practices continue to allow the delivery of essential services residents expect while maintaining, expanding, and building infrastructure that makes Kelowna a great place to live. The 2025 Final Budget as proposed, reflects a net municipal property tax increase of 4.34 per cent, which is unchanged from the Preliminary Budget tax requirement approved in December 2024.

PAGE 379

2025 FINANCIAL PLAN

CITY OF KELOWNA

A tax rate increase of 4.34 per cent means the owner of a residential property with an average assessed value of $970,134 will pay $2,592 which is an increase of $108 from the prior year for the municipal portion of their property taxes. Considerations applicable to this report: Legal/Statutory Authority: In Section 165 of the Community Charter regarding Financial Plans, adoption of a 5 Year Financial Plan bylaw is required prior to the annual property tax bylaw. Under the Annual Property Tax Bylaw Section 197 of the Community Charter, Council must establish tax rates by bylaw after adoption of the financial plan but before May 15th. Considerations not applicable to this report: Legal/Statutory Procedural Requirements Existing Policy Financial/Budgetary Considerations External Agency/Public Comments Communications Comments Submitted by: M. Antunes, Financial Planning Manager Approved for inclusion: J. Sass, General Manager, Corporate Services

Attachment: Attachment A: 2025 Financial Plan – Final Budget Volume Attachment B: 2025-2029 Five-Year Financial Plan

PAGE 380

2025 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL SUMMARIES The 2025 Final Budget Volume includes requests that are emergent, required by legislation or have been directed by City Council. This volume is consolidated with the first two volumes, 2025 Preliminary Volume and the 2025 Carryover Volume, to create the 2025 Financial Plan and the 2025-2029 Five-Year Financial Plan. The 2025 Financial Plan results in a Final Tax Demand of $204.3M. This represents a decrease of $440k relative to the Council approved 2025 Preliminary Financial Plan, and a decrease of $440k of taxation revenue from new construction. The impact to the average property owner is 4.34 per cent.

FINAL BUDGET SUMMARIES Analysis of tax demand The 2024 final tax demand was $191.2M and had a 4.72 per cent net property owner impact. The final 2025 taxation demand has increased by 6.83 per cent over 2024 for a total gross tax demand increase of $13.1M. $ thousands Taxation demand New construction tax revenue Net property owner impact Municipal impact Public Safety Levy impact

2024 191,220 (6,260) 4.72% 3.72% 1.00%

2025 204,274 (4,760) 4.34% 3.34% 1.00%

Change 13,054 1,500

% change 6.83% (23.96%) (0.38%) (0.38%) 0.00%

Note: Totals may not add due to rounding The tax demand established at Preliminary Budget was $204.7M. The estimated new construction revenue was $5.2M, based on BC Assessment preliminary roll information, resulting in a 4.34 per cent net property owner impact. Final new construction revenues, based on the revised assessment roll, decreased by $440k to $4.8M.The gross tax demand for Final Budget has decreased to $204.3M, resulting in a net property owner impact of 4.34 per cent. $ thousands 2025 Taxation demand New construction tax revenue Net property owner impact Municipal impact Public Safety Levy impact

Preliminary 204,714 (5,200) 4.34% 3.34% 1.00%

Final 204,274 (4,760) 4.34% 3.34% 1.00%

Change (440) 440

% change (0.21%) (8.46%) 0.00% 0.00% 0.00%

Note: Totals may not add due to rounding

PAGE 381

2025 FINANCIAL PLAN

CITY OF KELOWNA

Financial Plan summary The City of Kelowna’s total 2025 annual budget is $908.0M when including all funds. The following table reports the actual results for the year ending 2023, the revised budget as of October 2024, and the proposed final budget for the 2025 Financial Plan year.

Actual 2023

Revised 2024

Final 2025

176,631 4,544 188,302 28,131 63,145

191,220 4,441 179,043 44,864 68,337

204,274 4,368 198,594 37,180 95,132

36,935 40,776 189,078 727,542

89,078 61,375 218,293 856,652

122,341 88,870 157,209 907,968

119,222 97,396 103,331 11,657 174,161

130,545 116,196 109,951 11,180 415,457

146,371 122,397 122,830 11,070 420,154

44,136 3,221 167,297 720,421

32,556 — 40,767 856,652

35,724 — 49,421 907,968

7,121

—

225 6,897

Note: Totals may not add due to rounding Comparative figures have been reclassified to align with the current period's presentation.

PAGE 382

2025 FINANCIAL PLAN

CITY OF KELOWNA

Revenue by fund The total revenue budget is $908.0M with $487.8M from operating sources and $420.2M from capital sources. The table below presents the dollar value of the revenue budget for each of the City’s four funds. The proposed Financial Plan year is separated by operating and capital revenue, and includes the prior year’s carryover amounts. The graph illustrates the 2025 revenues for each fund, visually depicting the comparison between each one. Final 2025 Operating Capital General 573,495 550,626 369,045 255,277 Airport 82,452 206,046 74,546 93,820 Wastewater 42,059 64,108 18,452 44,664 Water 29,537 35,872 25,771 26,393 Subtotal 487,814 420,154 Total 727,542 856,652 907,968 Note: Totals may not add due to rounding $ thousands

Actual 2023

Revised 2024

General 68% Airport 19% Wastewater 7% Water 6%

Total $ 908.0 M

Comparative figures have been reclassified to align with the current period's presentation.

Revenue by source The graph below presents the same operating and capital revenue information as above at the revenue source detail level.

Revenue by source $400 $350

Millions

$300 $250 $200 $150 $100 $50 $0 Property tax

Parcel tax

Actual 2023

Fees and charges Revised 2024

Grant

Other revenue

Transfer from reserve

Final 2025

Comparative figures have been reclassified to align with the current period's presentation.

PAGE 383

2025 FINANCIAL PLAN

CITY OF KELOWNA

Expenditures by fund The total expenditure budget requirement is $908.0M with $487.8M for operating needs and $420.2M for the 2025 capital program. The table below summarizes the total operating and capital expenditures by fund. The proposed Financial Plan year separates operating and capital expenditures, and includes the prior year’s carryover amounts. The graph presents the allocation of the total 2025 expenditures between each fund.

$ thousands

Actual 2023

Revised 2024

Final 2025 Operating

Capital

General

573,270 550,626

369,045

255,277

Airport

82,452 206,046

74,546

93,820

Wastewater

38,121

64,108

18,452

44,664

Water

26,578

35,872

25,771

26,393

487,814

420,154 907,968

Subtotal Total

720,421 856,652

General 68% Airport 19% Wastewater 7% Water 6%

Note: Totals may not add due to rounding

Total $ 908.0 M

Comparative figures have been reclassified to align with the current period's presentation.

Expenditures by type The graph below presents the same total operating and capital information as above at the expenditure type level.

Expenditures by type $450 $400 $350

Millions

$300 $250 $200 $150 $100 $50 $0 Salaries and wages

Material and other

Contract services

Actual 2023

Revised 2024

Debt service

Capital expenditure

Transfer to reserve

Final 2025

Comparative figures have been reclassified to align with the current period's presentation.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Use of tax dollar by service area The table below highlights the cost by service area and the resulting total municipal taxes for the average residential property in Kelowna for 2025. Note the municipal portion of taxes does not include amounts collected on behalf of other taxing authorities or applicable business improvement areas such as: Regional District of Central Okanagan, BC Assessment, Okanagan Regional Library, Minister of Finance – School Tax, Downtown Kelowna Business Improvement Area or Uptown Rutland Business Improvement Area. The average assessed value of a residential property is $970,134 in 2025, as obtained from BC Assessment. The service area with the highest cost is Police Services & RCMP, at 28.8 per cent, followed by the Enabling Services at 19.6 per cent and Fire Safety at 13.9 per cent. Service Area

$ Cost

2025%

Arts & Culture

38.04

1.5%

Community Development

46.46

1.8%

Community Safety & Bylaw

105.67

4.1%

Development Planning

23.38

0.9%

Development Services

(72.03)

(2.8%)

Enabling Services

508.07

19.6%

Fire Safety

361.01

13.9%

Governance & Leadership

54.08

2.1%

Parking

(20.93)

(0.8%)

Parks

202.04

7.8%

Partnership Office

18.00

0.7%

Police Services & RCMP

745.53

28.8%

Solid Waste & Landfill

(2.54)

(0.1%)

Sport & Recreation

158.41

6.1%

Stormwater & Flood Protection

24.99

1.0%

Transit

119.66

4.6%

Transportation

281.75

10.9%

2,591.59

100.0%

Total

Based on the 2025 average residential property assessed property value of $970,134 Note: Totals may not add due to rounding

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Ongoing budget impacts Below is a projection of the next five years net property owner impacts using the best information available at the time of preparation for the Final Budget volume. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. For the years after 2025, budgets have been adjusted for current one-time projects, changes in operating budgets from previously approved requests, new capital projects included in the Council endorsed 10-Year Capital Plan, 2025-2034 (10YCP), growth and/or inflationary rates, and other key assumptions. Although this forward looking information is based on what is believed to be reasonable assumptions, there can be no assurance that this information will prove to be accurate as actual results and future events could differ materially from the anticipated information contained in this forecast. Specific assumptions in the preparation of the years 2026-2029 included in the forecasted increases below: • Growth rate of 1.40 per cent annually. • Inflation rate of 2 per cent for most operating expenses and certain revenues; and a combined growth and inflation rate of 3.5 per cent for certain targeted expenses. • MFA amortization schedules and estimated rates are used as a basis for projected principal and interest where applicable. • Approval to borrow for all priority one capital projects funded through debt as presented in the Council endorsed 10-Year Capital Plan, 2025-2034. • •

There is no change in current service levels except as provided for in the capital program. Reserve funding is used for one-time operating and capital programs to reduce the requirement for increased taxation.

Additional details on all assumptions are provided in the Five-Year Financial Plan (2025-2029). $ thousands

2025

2026

2027

2028

2029

Taxation demand

204,274

217,396

232,130

246,538

261,835

New construction tax revenue

(4,760)

(3,999)

(3,946)

(4,162)

(4,374)

Net property owner impact

4.34 %

4.47 %

4.96 %

4.41 %

4.43 %

Municipal Impact

3.34 %

3.47 %

3.96 %

3.41 %

3.43 %

Public Safety Levy Impact

1.00 %

Note: Totals may not add due to rounding For the City’s Five-Year forecast for all funds revenues and expenditures for 2025-2029 and detailed service area information see the Five-Year Financial Plan section of the 2025 Financial Plan.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

SUMMARY OF REQUESTS Final Budget - Priority 1 ($ thousands) Airport Airport - Canada Border Services Agency Expansion Airport - Terminal Base Building Servicing Airport Requests Total Water Utility Glenmore-Ellison 2025 Operating Budget Glenmore-Ellison 2025 Capital Budget Water Utility Requests Total

Project Amount

2025

2026

2027

2028

2029 Operating/ Capital

1,750

—

Capital

500 2,250

— —

Capital

2,485 2,485

5,032 2,485 7,517

5,032 — 5,032

Operating Capital

400 (10)

— (41)

Capital Operating

Solid Waste & Landfill Solid Waste Equipment Operating and Maintenance Impacts from Capital Requests Solid Waste & Landfill Requests Total

—

390

(41)

Governance & Leadership Rise Memorial Governance & Leadership Requests Total

75 75

— —

Operating

—

161,574

—

Operating

— — 161,574

— —

Operating

171,806

4,991

Enabling Services Transmission of Taxes - BIAs and Other Governments New Construction Revenue Update Enabling Services Requests Total Requests Total

PAGE 387

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Final Request Details Service Area:

Airport

Priority 1

Enhance CAPITAL ONE-TIME

Title:

Airport - Canada Border Services Agency Expansion

FINAL

Justification: A Core Service review of the Airport's customs facilities has identified a space shortcoming in meeting the required Canada Border Services Agency (CBSA) Functional Statement of Requirements (FSOR) standard. This emergent budget request is to facilitate an expansion of the customs secondary inspection facilities to meet the CBSA FSOR in order to maintain compliance with federal regulations and to accommodate the Airport's continued growth in international arriving flights and passenger levels.

Strategic Direction:

Crime & Safety - Public safety resources keep pace with growth

Year

Cost

Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

1,750,000

(1,750,000)

—

Service Area:

Airport

Priority 1

Enhance CAPITAL ONE-TIME

Title:

Airport - Terminal Base Building Servicing

FINAL

Justification: This emergent budget request is to provide the base building servicing for a new restaurant within the departures room in the expanded air terminal building and to facilitate the opening of the new restaurant to align with the completion of the terminal building expansion. The Airport's concessionaire tenant lease negotiations are nearing finalization, and discussions and due diligence have confirmed the viability of the location, which meets the circulation and seating requirements. This compelling opportunity will allow the Airport to generate additional non-aeronautical revenue and has an estimated payback period of under two years.

Strategic Direction: Year

Cost

2025

500,000

Economy - Priority sectors for economic diversification are supported DCC Other Reserve Borrow Grant Utility Taxation Reserve Revenue (500,000)

—

PAGE 388

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Final Request Details Service Area:

Water Utility

Priority 1

Enhance OPERATING ON-GOING

Title:

Glenmore-Ellison 2025 Operating Budget

FINAL

Justification: Budget is requested to include the transition of the Glenmore-Ellison Improvement District (GEID) operations in the 2025 Financial Plan. The GEID Base Budget was approved by a GEID Board resolution on Dec 12th, 2024. A Memorandum of Understanding was signed on March 12th, 2024, documenting an agreement for the transition of the Glenmore-Ellison Improvement District to the City of Kelowna. GEID was dissolved on January 1st, 2025, as per the Provincial Order-inCouncil #343/2024 approved on June 17th, 2024.

Strategic Direction:

Other -Supports Base Business

Year

Cost

Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

5,032,200

—

(6,269,100)

1,236,900

—

2026

5,032,200

—

(6,269,100)

1,236,900

—

2027

5,032,200

—

(6,269,100)

1,236,900

—

Service Area:

Water Utility

Priority 1

Enhance CAPITAL ONE-TIME

Title:

Glenmore-Ellison 2025 Capital Budget

FINAL

Justification: Budget is requested to ensure reliable water service delivery and fire protection for all customers connected to the Glenmore-Ellison Improvement District (GEID) water system. This work was identified by GEID. GEID was dissolved on January 1st, 2025 by the Provincial Order-in-Council as part of the transition to City of Kelowna.

Strategic Direction: Year

Cost

2025

2,485,000

Other - Supports Base Business DCC Reserve Borrow Grant Reserve (2,485,000)

—

Other Revenue

Utility

Taxation

—

PAGE 389

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Final Request Details Service Area:

Solid Waste & Landfill

Priority 1

Maintain CAPITAL ONE-TIME

Title:

Solid Waste Equipment

FINAL

Justification: Budget is requested to allow for the purchase of an electric loader for the Glenmore Landfill. In the 2025 Preliminary budget, $600k was approved for the purchase of a diesel loader. An additional $400k is requested for the electric loader, which is new in the fleet and was not available at the time of the original request. Typical lifetime of landfill loaders is 8 - 10 years, with the expected break even point on the total life cycle cost estimated at year 9. The electric loader would result in an estimated annual reduction of 62.69tCO2 in GHG emissions.

Strategic Direction:

Climate & Environment - Reduce corporate and community GHG emissions

Year

Cost

Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

400,000

(400,000)

—

Year

Cost

Reserve

DCC Reserve

Borrow

Grant

Other Revenue

Utility

Taxation

2025

(10,100)

10,100

—

2026

(40,500)

40,500

—

2027

(40,500)

40,500

—

Operating Impacts:

Service Area:

Governance & Leadership

Priority 1

Enhance OPERATING ONE-TIME

Title:

Rise Memorial

FINAL

Justification: Budget is requested to support the Rise Memorial Foundation's construction and installation of the Rise Memorial at Knowles Heritage Park scheduled for completion in July 2025. The memorial will commemorate the lives lost in the crane tower collapse, highlight the importance of worker safety, and bring public amenity enhancements to the park. This community-led initiative is supported through community fundraising, provincial grants and community partners. This additional funding ensures the project is able to be completed without delay and addresses shortfall.

Strategic Direction:

Other -Supports Base Business DCC Reserve Borrow Grant Reserve

Other Revenue

Utility

Taxation

—

Year

Cost

2025

75,000

(75,000)

—

2026

—

2027

—

PAGE 390

2025 FINANCIAL PLAN

CITY OF KELOWNA

2025 Final Request Details Service Area:

Enabling Services

Priority 1

Maintain OPERATING ONE-TIME

Title: Transmission of Taxes - BIAs and Other Governments FINAL Justification: To establish the receipt and disbursement of taxes to Business Improvement Areas (BIA) and other governments: Regional District of Central Okanagan (RDCO) ($17,373,600); SIR Mosquito Control ($196,500); RDCO SIR Land Levy ($834,000); RDCO SIR Parcel Tax ($268,200); BC Assessment Authority ($3,180,200); School Tax ($109,449,500); Additional School Tax ($3,822,300 - estimate); Kelowna Downtown BIA ($1,335,900); Uptown Rutland BIA ($245,400); Regional Hospital ($16,450,600); and Okanagan Regional Library ($8,417,700). The total amount to be collected for all other taxing authorities is $161,573,900.

Strategic Direction:

Other -Supports Base Business

Year

Cost

Reserve

DCC Reserve

Borrow

2025

161,573,900

—

2026

—

2027

—

Service Area:

Other Revenue

Utility

Taxation

—

— (161,573,900)

—

Grant

Enabling Services

Priority 1

Maintain OPERATING ONE-TIME

Title:

New Construction Revenue Update

FINAL

Justification: Recent updates to property assessed values from BC Assessment have revealed a decrease in new construction revenue, from $5.2M to $4.76M for the year 2025. To sustain a tax rate increase of 4.34%, reserve funding is requested to cover the gap and continue supporting the community's growth and development.

Strategic Direction:

Active Financial Management -Enhance the budget process to be more proactive and agile DCC Other Reserve Reserve Borrow Grant Revenue Utility Taxation

Year

Cost

2025

—

(440,000)

—

440,000

2026

—

2027

—

PAGE 391

2025 FINANCIAL PLAN

CITY OF KELOWNA

PAGE 392

2025 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL PLAN The City of Kelowna has developed a comprehensive Financial Plan providing a five-year summary of general revenues, operating expenditures, and capital expenditures to help guide the City throughout the next five years. Over the past year inflation has shown signs of stabilization and there has been an easing of interest rate pressure allowing for more predictable financial planning and investment decisions. However, recent changes in global trade policies have created a more volatile economic environment. These factors have added layers of complexity to financial management as they signal greater economic uncertainty which could lead to changes in growth, shifts in the labour market and inflationary impacts. In response to these challenges, it is essential to adopt a proactive approach to financial planning. This includes continuously monitoring economic indicators, adjusting budgets to reflect current realities, and exploring innovative ways to generate revenue. By doing so, we can ensure that we remain resilient in the face of economic uncertainties and continue to deliver essential services to the community. Our commitment to maintaining a stable tax rate while investing in growth is paramount. This stability provides a sense of security to residents and businesses, fostering a supportive environment for growth and development. Additionally, addressing social issues, supporting affordable housing initiatives, and improving transportation programs are critical components of our strategy. These efforts not only enhance the quality of life for our residents but also contribute to the overall economic vitality of our region. The Financial Plan attempts to provide a ‘snapshot’ of the future using current standards and service levels. The City is committed to delivering programs, services and infrastructure in a manner that respects the community vision identified through Imagine Kelowna. The community input received through Imagine Kelowna, the availability of funding from other sources (Federal, Provincial, and Community), the Official Community Plan, 20 Year Servicing Plan, the 2030 Infrastructure Plan and the 10-Year Capital Plan, all affect the programs included in the future years of the plan. The Council endorsed 10-Year Capital Plan, 2025-2034 and the 2030 Infrastructure Plan, have provided a guideline for future capital through to 2030 in this Financial Plan. The Financial Plan is intended to provide guidance and information upon which to base current and future expenditure decisions. It will aid in the understanding of the City’s financial position and financing capabilities over the next five years. The development of the Financial Plan follows the 2025 budget process which includes: • • •

Preliminary Budget – approved by Council December 5, 2024 Carryover Requests – approved by Council March 10, 2025 Final Budget – approved by Council on April 28, 2025

Although most of this plan is devoted to the Preliminary Budget details, the changes made by Council at Preliminary, Carryover, and Final Budget, together, provide the 2025 portion of the Financial Plan. For the years after 2025, the operating budget is adjusted for current one-time projects, approved prior year changes in operating requirements, new capital projects included in the Council endorsed 10-Year Capital Plan, growth and/or inflation factors depending on the nature of the revenue or expenditure, and other key assumptions. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. Future year assumptions are required to forecast general revenues, incremental operating expenditures to support new capital, debt servicing and ongoing departmental revenues and expenditures.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Assumptions used in the preparation of the years 2026 to 2029 in the Financial Plan projections include: • •

• • • •

An inflation rate of 2 per cent for most of the operating costs and for some revenues. The Bank of Canada aims to keep inflation at the 2 per cent midpoint of an inflation-control target range of 1-3 per cent. A growth rate of 1.47 per cent per year per the Official Community Plan was used for various revenues and expenditures and for incremental taxation revenue. Growth rates for the utilities are based on servicing expectations over the next five years which may include existing residential or commercial units. MFA amortization schedules and estimated rates are used as a basis for projected principal and interest where applicable. Approval to borrow for all priority one capital projects funded through debt as presented in the Council endorsed 10-Year Capital Plan, 2025-2034. There is no change in current service levels except as provided for in the capital program. Reserve funding is used for one-time operating and capital programs to reduce the requirement for increased taxation.

The Financial Plan summary can be found on page 399 and is used in the Financial Plan bylaw. The final column of the Financial Plan, years 2030 to 2032, is included at the request of the Ministry of Municipal Affairs and Housing for information to support the City of Kelowna’s 20 Year Servicing Plan.

REVENUE SOURCES & TRENDS SUMMARY The City defines financial strength and stability as “the ability to acquire and manage a portfolio of financial and physical assets that meet the current and future needs of our community.” The City uses strategies set out in this document to guide decision-making within the City to help to realize this goal and, ultimately, the vision for Kelowna. While some of these strategies focus on a particular component of the financial balance – revenues and costs – they are all interrelated and work together to provide a broad framework for managing the City’s overall finances.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Taxation The City strives to ensure property taxes are sufficient to meet the community’s short and long-term needs. Taxation is a major revenue source in the General Fund and accounts for 22 per cent of the 2025 Financial Plan’s total revenue estimate of $908.0M. Kelowna continues to be below the average taxes paid by property owners in British Columbia. Historical tax rate increases from 2021 to 2025 is shown in the graph below beside the projected increases for 2026 to 2029. Future year increases are estimated using projected growth, average inflation, annualization of budget requests previously approved by Council, capital projects included in the Council endorsed 10-Year Capital Plan, debt changes, and other key assumptions.

Net Property Owner Impact 2021 - 2029

Net Property Owner Impact % Increase

6.00% 4.96%

5.00%

4.72% 4.34% 4.04%

4.00%

3.94%

4.47%

4.41%

4.43%

2028

2029

3.78%

3.00%

2.00%

1.00%

0.00% 2021

2022

2023

2024

2025

2026

2027

Years Note: Rates presented in the graph above for years 2026 to 2029 have not been approved by Council and are subject to change.

The forecasted increases for 2026 to 2029 assumes approval to borrow for all priority one capital projects funded through debt as presented in the Council endorsed 10-Year Capital Plan, 2025-2034 (10YCP). Included in this plan with a significant impact is the borrowing for Building Stronger kelowna suite of projects. Parcel Taxes Parcel taxes are taxes levied through bylaw on the unit, frontage or area of a property that receive a specific service. The majority of the $4.4M in the 2025 Financial Plan parcel tax budget is made up of Water Utility parcel taxes and Sewer Specified Area debt recoveries.

Fees & Charges General fund Fees and charges are another way that the City of Kelowna raises revenues and is currently the third largest source of revenue for the general fund at 22 per cent. Fees and charges are useful because those that benefit from a service bear the cost of it. The City’s objective is to ensure user fees and charges are sufficient to meet the City’s needs.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

General fund fees & charges revenues can be attributed to several service areas: •

• • •

•

Development Planning and Development Services generate revenue in the form of development, subdivision, permit and inspection fees along with other service revenues. Most future fees and charges revenue in these service areas are estimated using growth projections alone as there is a direct relationship between development revenue and community growth. Solid Waste & Landfill generates the largest proportion of revenue from fees and charges through landfill tipping fees and waste collection charges. Parking generates revenues though parking fees throughout the City. Transit generates a large proportion of fees and charges through the transit service offered throughout the City. Future transit revenues are factored for growth to reflect the expected increase in service demand due to community growth. Sport & Recreation and Arts & Culture generate revenue from a wide variety of services including facility rentals and sales revenues along with program revenue and recreation facility use revenues. Estimates of future fees and charges revenue generation are factored for inflation and growth to recognize the expected increase in service demand due to community growth as well as recovery for program costs increases. Community Safety, Police Services & RCMP and Fire Safety service areas generate revenue through Bylaw fines, Police Services such as criminal record checks, and the sale of Fire Dispatch Services to other municipalities and regional districts within the Province. Estimates of future fees and charges for these areas are factored for inflation. Enabling Services generates revenues in rental fees from properties owned by the City. Future revenues have been factored by inflation alone as there is little anticipated growth in the inventory of these real estate assets. This service area also collects recovery revenue from customers. Additionally, Fleet Services is mapped to fees and charges through internal equipment charges but is a recovery revenue from other service areas. Parks revenue is collected through cemetery fees and recovery revenue. Estimates of future fees and charges revenue generation are factored for inflation.

Airport and Utility funds The Kelowna International Airport (YLW) is the largest municipally owned and operated airport in Canada. YLW operates on a financially self-sufficient basis generating all funding required for services and infrastructure from several sources including airport improvement fees, landing & terminal fees, and parking fees. Passenger numbers for the Airport are expected to increase to 2.3M in 2025. The City of Kelowna operates two utility funds: the Water Utility and the Wastewater Utility. • •

The Water Utility Includes in the 2025 Financial Plan a budgeted 6 per cent rate increase for water rates, 6 per cent for the Water Quality Enhancement Fee. The Wastewater Utility operates citywide. The 2025 Financial Plan budgeted a 2 per cent rate increase for wastewater rates. Future growth potential is limited by infrastructure cost and the availability of Provincial capital support funding. Future local service areas have been identified and the number of sewer customers and amount of revenue generated is scheduled to increase slightly over the next five years. Future revenue estimates are factored for both growth and inflation.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Borrowing Proceeds Debt is a common tool that municipalities use to finance capital expenditures over the medium and long term. Debt is viewed as a fair way of financing a project since those who are paying the principal and interest charges are benefiting from the service. The City strives to ensure debt financing is used strategically to maintain the City’s financial strength and stability. Future projects that are planned to be funded through borrowing as indicated in the Council endorsed 10-Year Capital Plan, 2025-2034, include: • • • • • • • • • • •

2026-2028: Building a Stronger Kelowna 2026 - 2031: Roads Bundle 2026 -2027: Airport Terminal Building Expansion 2027: Heat sharing for Rutland YMCA 2027: South Pandosy Parkade 2027 - 2028: Glenmore Protective Services Building 2028: Water Treatment Facility property acquisition 2028 - 2030: Potable water systems 2030: Wastewater Administration Building 2031 - 2032: New Downtown Parkade 2032: Orchard Park Transit Exchange

Reserves and Surplus Reserves Saving money for future projects and unexpected expenditures is an important planning consideration for the City of Kelowna. Reserves provide a financial mechanism for saving money to finance all or part of future infrastructure, equipment, and other requirements. Reserve funds can also provide a degree of financial stability, by reducing reliance on indebtedness to finance capital projects and acquisitions, or flexibility to leverage opportunities as they arise. This funding source is mainly used in the capital program for major works. A balance must be maintained between expenditure levels and reserve replenishment to ensure the sustainability of this funding source. The 2030 Infrastructure Plan relies on surplus funds being contributed to reserve on an annual basis. Reserve funding requirements vary significantly depending on the annual capital programs. In the 2025 Financial Plan, it is the largest source of funding at 41 per cent largely due to the addition of carryover budgets which are funded through reserves. Surplus Surplus funds generated in the General Fund, as well as the Utility Funds of Water and Wastewater, are contributed to the accumulated surplus annually. These funds are available to help with emergencies such as fires and floods.

Other sources General revenues General revenues include revenues not associated directly with any one City division or service. Examples of this revenue include investment interest, penalties on taxes and utility accounts, traffic fine revenue sharing and 1 per cent payment in lieu of taxes for private utilities. These revenues are anticipated to increase by growth and/or inflation in the coming years. Over the next five years, total general revenues are anticipated to increase by approximately 1.40 per cent annually 2026 to 2029. Government grants and contributions Grants are a useful tool in a municipality’s financial toolbox and can be used strategically to offset costs to taxpayers and ratepayers. However, a reliance on grants to fund capital projects and services will undermine a community’s ability to attain financial strength and stability. Grants in 2025 help to fund 4 per cent of the City’s overall budget. The City’s objective is to pragmatically leverage grant opportunities.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Significant grants in 2025 include the transit partnership with the Province of British Columbia which provides funding for conventional transit and custom transit costs, and the Federal Airport Capital Infrastructure grant. The City continues to receive funding from the Canada Community-Building Fund, formerly the federal Gas Tax Fund. This fund provides predictable, long-term and stable funding for investment in infrastructure and capacity building projects to local governments in British Columbia. In 2025, the City of Kelowna expects to receive $6.6M. The City of Kelowna will continue to apply for Federal and Provincial Grants during the year. Successful grants will be added to the 2025 Financial Plan through the budget amendment process.

Summary of revenue sources ($ thousands) The following graph summarizes the City's revenue sources by type. The years 2020 to 2024 are based on actual amounts received. Years 2025 to 2029 are forecasted values calculated using the assumptions discussed above. $900,000 $800,000 $700,000 $600,000

Fees and charges

$500,000

Other sources

$400,000

Property/parcel taxes

$300,000

Reserves and surplus Debenture/borrowing

$200,000 $100,000 $— 2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

PAGE 398

2025 FINANCIAL PLAN

CITY OF KELOWNA

Five-Year Financial Plan Summaries Financial Plan 2025-2029 $ thousands Revenue

2025

2026

2027

2028

2029

2030 - 2032

Property Value Tax Library Requisition Parcel Taxes Fees and Charges Borrowing Proceeds

204,274 8,418 4,368 198,594 31,627

217,396 8,586 1,962 195,235 165,000

232,130 8,758 5,037 202,500 166,400

246,538 8,933 3,697 209,989 84,684

261,835 9,112 2,428 216,831 47,500

849,770 27,885 6,236 626,822 90,700

Other Sources

92,267 539,547

76,330 664,509

81,266 696,091

76,810 630,651

73,710 611,417

225,380 1,826,793

Reserve Funds DCC Funds

122,341 88,870

107,525 69,434

99,661 74,303

111,205 67,860

71,947 48,841

130,449 113,693

Surplus/Reserve Accounts

157,209 368,421

54,877 231,835

79,291 253,255

84,242 263,307

59,372 180,159

178,495 422,637

Total Revenues

907,968

896,344

949,346

893,957

791,576

2,249,431

4,259 6,811

5,179 7,299

9,565 10,892

10,852 11,376

13,372 13,804

50,632 52,025

125,232 6,435 4,267 9,452 2,713 6,785 114,600 36,918 4,403 7,880 79,114 2,066 69,610 32,752 42,977 13,906 40,120 106,078 60,706 45,738 822,822

72,757 5,629 4,019 8,952 2,764 7,020 105,258 44,710 4,383 7,500 68,727 1,795 73,654 25,148 105,127 23,033 43,746 115,464 41,936 36,575 810,675

68,727 5,974 4,182 9,253 2,858 7,264 114,795 45,622 4,715 14,112 86,161 1,635 76,120 26,063 134,660 18,298 46,161 90,942 32,716 44,983 855,695

64,545 5,365 4,323 9,574 2,955 7,516 105,962 52,279 4,878 12,726 60,450 1,691 78,760 25,531 52,551 11,374 44,071 128,051 36,526 66,412 797,768

57,154 5,430 4,470 9,906 3,056 7,777 109,925 37,842 5,047 9,344 47,711 1,750 81,492 22,108 21,371 12,053 45,440 108,063 36,497 44,001 697,611

128,680 17,397 14,338 31,828 9,806 24,987 321,553 115,598 16,218 53,267 125,950 5,623 261,834 67,427 59,154 19,786 162,823 200,913 101,145 102,458 1,943,442

35,724 — 49,421 85,146

37,491 — 48,178 85,669

37,419 — 56,231 93,651

38,225 — 57,964 96,189

39,084 — 54,882 93,966

119,251 — 186,738 305,989

907,968

896,344

949,346

893,957

791,576

2,249,431

Transfer between Funds

Expenditures Municipal Debt Debt Interest Debt Principal Other Municipal Purposes Airport Arts & Culture Community Development Community Safety & Bylaw Development Planning Development Services Enabling Services Fire Safety Governance & Leadership Parking Parks Partnerships Office Police Services & RCMP Solid Waste & Landfill Sport & Recreation Stormwater & Flood Protection Transit Transportation Wastewater Water

Transfers between Funds Reserve Funds DCC Funds

Surplus/Reserve Accounts

Total Expenditures Note: Totals may not add due to rounding.

PAGE 399

2025 FINANCIAL PLAN

CITY OF KELOWNA

Tax Impact Summary $ thousands General revenues

2025 (18,893)

2026 (19,155)

2027 (19,424)

2028 (19,702)

2029 (19,987)

Net operating budget Pay-as-you-go capital

207,184 15,983

218,968 17,583

232,392 19,162

245,412 20,827

259,246 22,577

Taxation demand

204,274

217,396

232,130

246,538

261,835

New construction tax revenue

(4,760)

(3,999)

(3,946)

(4,162)

(4,374)

Municipal Impact Public Safety Levy Impact Net property owner impact

3.34 % 1.00 % 4.34 %

3.47 % 1.00 % 4.47 %

3.96 % 1.00 % 4.96 %

3.41 % 1.00 % 4.41 %

3.43 % 1.00 % 4.43 %

2025

2026

2027

2028

2029

3 3

2,265 2,265

2,344 2,344

2,425 2,425

2,509 2,509

2,596 2,596

9,867 250 1,900 135 (1,353) 38 10,837

9,867 254 1,928 137 (1,353) 38 10,871

9,867 257 1,956 139 (1,353) 38 10,905

9,867 261 1,985 141 (1,353) 38 10,940

9,867 265 2,014 143 (1,353) 38 10,975

40 25 944 (310) 699

41 25 965 (321) 710

43 25 986 (332) 722

44 25 1,008 (343) 734

46 25 1,031 (355) 747

147

150

153

156

159

523 1,651 419 200 (514) 2,279

533 1,675 427 200 (514) 2,322

544 1,699 436 200 (514) 2,365

555 1,724 445 200 (514) 2,410

566 1,750 454 200 (514) 2,455

2,663 18,893

2,755 19,155

2,851 19,424

2,950 19,702

3,052 19,987

204,274 223,167

217,396 236,551

232,130 251,554

246,538 266,239

261,835 281,823

General Revenue $ thousands Licences Dog Licences Franchise fee Fortis Gas Interest & penalties Interest on Investments Tax Arrears & Delinquent Penalties on Taxes Penalties Utility Accounts Interest on Performance deposits Interest on Accounts Receivable Miscellaneous revenues Work Order Administration Local Improvement Prepayments Discounts Earned & Misc Risk to Roll Federal contributions Grants in Lieu of Taxes Provincial contributions Grants in Lieu of Taxes Traffic Fine Revenue Sharing Climate Action Rev Incentive Certificate of Recognition Rebate Appropriation to Reserves Taxes - private utilities 1% in Lieu of Taxes Total General Revenues Property taxation Total General Revenue & taxation Note: Totals may not add due to rounding.

PAGE 400

2025 FINANCIAL PLAN

CITY OF KELOWNA

Service Based Summary Revenues/Expenditures by Year $ thousands Revenue Library Requisition Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

2025

2026

2027

2028

2029

(8,418) (4,368) (196,951) (179,424) (17,526) (106,644) (8,831) (41,502) (31,627) (10,172) (14,511) (368,421) (122,341) (88,870) (157,209)

(8,586) (1,962) (192,888) (143,825) (49,063) (224,522) (5,480) (31,411) (165,000) (10,114) (12,517) (231,835) (107,525) (69,434) (54,877)

(8,758) (5,037) (200,072) (151,177) (48,895) (230,670) (6,914) (34,622) (166,400) (10,185) (12,550) (253,255) (99,661) (74,303) (79,291)

(8,933) (3,697) (207,476) (156,030) (51,447) (144,305) (6,885) (29,674) (84,684) (10,256) (12,806) (263,307) (111,205) (67,860) (84,242)

(9,112) (2,428) (214,232) (161,406) (52,827) (103,822) (6,959) (25,966) (47,500) (10,329) (13,068) (180,159) (71,947) (48,841) (59,372)

Total Revenue

(684,801)

(659,793)

(697,793)

(627,718)

(509,754)

Expenditures Salaries and Wages Material and Other Contract Services Debt Interest Debt Principal Capital Expenditure Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

146,371 110,295 122,830 4,259 6,811 420,154 12,102 11,313 789 85,146 35,724 — 49,421

153,972 93,196 137,510 5,179 7,299 403,184 10,335 7,562 2,773 85,669 37,491 — 48,178

159,127 96,844 141,094 9,565 10,892 427,158 11,015 7,562 3,452 93,651 37,419 — 56,231

165,034 97,732 145,686 10,852 11,376 355,805 11,283 7,562 3,721 96,189 38,225 — 57,964

171,220 99,935 150,547 13,372 13,804 237,218 11,514 7,562 3,952 93,966 39,084 — 54,882

Total Expenditures

907,968

896,344

949,346

893,957

791,576

Net Expenditures Note: Totals may not add due to rounding.

223,167

236,551

251,554

266,239

281,823

PAGE 401

2025 FINANCIAL PLAN

CITY OF KELOWNA

Net expenditures by service 2025 Net Expenditure ($ thousands) 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000)

n e ent law ces ing ces ety hip ing rks fice MP n n it ill rt er er i i f s k po ltur n y C andf reatio tectio Trans rtatio ewat Wat Pa s Of R Air & Cu lopm & B t Serv Plan Serv ire Sa ader Par L t c & & spo Was ty Pr o hip es ve n F & Le Re s e ng nt ran ers ervic ast rt & lood Art ty De Safe opme pme nabli e T n t c W po i r y n E &F S un unit evel evelo Pa lice S olid na S ter o D ver D mm mm a P o o w G C Co rm Sto

Net Expenditure by Year $ thousands Airport Arts & Culture Community Development Community Safety & Bylaw Development Services Development Planning Enabling Services Fire Safety Governance & Leadership Parking Parks Partnerships Office Police Services & RCMP Solid Waste & Landfill Sport & Recreation Stormwater & Flood Protection Transit Transportation Wastewater Water Total Net Expenditures Note: Totals may not add due to rounding.

2025 — 2,998 3,662 8,329 (5,678) 1,843 58,940 28,456 4,263 (1,650) 15,925 1,419 58,764 (200) 12,486 1,970 9,432 22,208 — — 223,167

2026 — 3,088 3,987 8,733 (5,642) 1,905 62,430 29,610 4,317 (1,650) 16,944 1,322 62,660 (200) 12,836 2,033 10,765 23,412 — — 236,551

2027 — 3,214 4,143 9,026 (5,601) 1,969 69,691 30,562 4,647 (1,650) 17,944 1,378 64,974 (200) 13,005 2,098 11,734 24,620 — — 251,554

2028 — 3,345 4,278 9,339 (5,606) 2,036 76,859 31,580 4,809 (1,650) 18,672 1,428 67,458 (200) 13,422 2,164 12,426 25,879 — — 266,239

2029 — 3,480 4,417 9,663 (5,608) 2,104 84,640 32,634 4,977 (1,650) 19,428 1,480 70,031 (200) 13,853 2,233 13,148 27,191 — — 281,823

PAGE 402

2025 FINANCIAL PLAN

CITY OF KELOWNA

Airport Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (59,921) (57,597) (2,324) (7,594) (1,646) (5,838) — — — (100,851) — — (100,851) (168,366)

— (62,364) (29,233) (33,131) (47,828) (90) (7,628) (40,000) —

— (65,541) (33,011) (32,530) (14,719) (92) (6,517) (8,000) —

— (67,921) (33,669) (34,253) (5,179) (95) (4,975) — —

— (69,512) (34,340) (35,172) (2,322) (97) (2,116) — —

(3,173) — — (3,173) (113,366)

(26,913) — — (26,913) (107,172)

(31,699) — — (31,699) (104,799)

(22,928) — — (22,928) (94,763)

9,195 17,553 1,909 584 1,906 93,820 2,754 2,596 159 40,644 — — 40,644 168,366

9,332 6,237 10,854 333 1,258 43,583 2,751 — 2,751 39,018 — — 39,018 113,366

10,379 8,526 10,290 112 706 36,103 3,430 — 3,430 37,627 — — 37,627 107,172

11,052 7,400 10,375 — 8 32,019 3,699 — 3,699 40,246 — — 40,246 104,799

11,832 7,535 10,609 — 8 23,248 3,930 — 3,930 37,600 — — 37,600 94,763

—

(60,207)

35,844

10,714

8,547

14,672

Net Expenditures Surplus/(Deficit) (Included Above)

Note: Totals may not add due to rounding. The Surplus/(Deficit) is the overall surplus/(deficit) budgeted for the fund during the year.

PAGE 403

2025 FINANCIAL PLAN

CITY OF KELOWNA

Arts & Culture Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (1,742) (1,280) (462) (28) — (28) — — — (1,955) (1,480) — (475) (3,725)

— (1,863) (1,382) (482) — — — — — — (965) (738) — (227) (2,828)

— (1,900) (1,409) (491) — — — — — — (1,147) (882) — (265) (3,047)

— (1,938) (1,437) (501) — — — — — — (370) (269) — (101) (2,308)

— (1,977) (1,466) (511) — — — — — — (260) (182) — (78) (2,237)

1,592 961 2,008 — — 1,874 — — — 288 — — 288 6,723

1,684 912 2,098 — — 935 — — — 288 — — 288 5,917

1,742 944 2,171 — — 1,117 — — — 288 — — 288 6,261

1,803 976 2,246 — — 340 — — — 288 — — 288 5,653

1,865 1,010 2,324 — — 230 — — — 288 — — 288 5,717

2,998

3,088

3,214

3,345

3,480

Net Expenditures Note: Totals may not add due to rounding.

PAGE 404

2025 FINANCIAL PLAN

CITY OF KELOWNA

Community Development Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue Expenditures Salaries and Wages Material and Other Contract Services Debt Interest Debt Principal Capital Expenditure Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Expenditures Net Expenditures Note: Totals may not add due to rounding.

2025

2026

2027

2028

2029

— — — — (471) — (247) — (224) — (434) — — (434) (905)

— — — — (332) — (103) — (228) — — — — — (332)

— — — — (339) — (106) — (233) — — — — — (339)

— — — — (345) — (108) — (238) — — — — — (345)

— — — — (352) — (110) — (242) — — — — — (352)

2,373 1,620 170 — — — 104 104 — 300 300 — — 4,567

2,647 1,093 176 — — — 104 104 — 300 300 — — 4,319

2,738 1,157 182 — — — 104 104 — 300 300 — — 4,482

2,834 1,198 188 — — — 104 104 — 300 300 — — 4,623

2,932 1,239 195 — — — 104 104 — 300 300 — — 4,770

3,662

3,987

4,143

4,278

4,417

PAGE 405

2025 FINANCIAL PLAN

CITY OF KELOWNA

Community Safety & Bylaw Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (327) (160) (167) (190) — (190) — — — (606) — — (606) (1,122)

— (219) (166) (53) — — — — — — — — — — (219)

— (226) (171) (55) — — — — — — — — — — (226)

— (234) (177) (57) — — — — — — — — — — (234)

— (242) (183) (59) — — — — — — — — — — (242)

6,277 3,098 77 — — — — — — — — — — 9,452

6,939 1,934 80 — — — — — — — — — — 8,952

7,069 2,123 61 — — — — — — — — — — 9,253

7,314 2,196 63 — — — — — — — — — — 9,574

7,568 2,273 65 — — — — — — — — — — 9,906

8,329

8,733

9,026

9,339

9,663

Net Expenditures Note: Totals may not add due to rounding.

PAGE 406

2025 FINANCIAL PLAN

CITY OF KELOWNA

Development Planning Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue Expenditures Salaries and Wages Material and Other Contract Services Debt Interest Debt Principal Capital Expenditure Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Expenditures Net Expenditures Note: Totals may not add due to rounding.

2025

2026

2027

2028

2029

— (830) (830) — — — — — — — (40) — — (40) (870)

— (859) (859) — — — — — — — — — — — (859)

— (889) (889) — — — — — — — — — — — (889)

— (919) (919) — — — — — — — — — — — (919)

— (951) (951) — — — — — — — — — — — (951)

2,552 106 — — — — 55 55 — — — — — 2,713

2,599 110 — — — — 55 55 — — — — — 2,764

2,689 114 — — — — 55 55 — — — — — 2,858

2,782 118 — — — — 55 55 — — — — — 2,955

2,879 122 — — — — 55 55 — — — — — 3,056

1,843

1,905

1,969

2,036

2,104

PAGE 407

2025 FINANCIAL PLAN

CITY OF KELOWNA

Development Services Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (9,962) (9,962) — — — — — — — (2,500) — — (2,500) (12,462)

— (12,662) (12,662) — — — — — — — — — — — (12,662)

— (12,865) (12,865) — — — — — — — — — — — (12,865)

— (13,122) (13,122) — — — — — — — — — — — (13,122)

— (13,385) (13,385) — — — — — — — — — — — (13,385)

6,071 613 100 — — — — — — — — — — 6,785

6,282 635 103 — — — — — — — — — — 7,020

6,500 657 107 — — — — — — — — — — 7,264

6,726 679 111 — — — — — — — — — — 7,516

6,959 703 115 — — — — — — — — — — 7,777

(5,678)

(5,642)

(5,601)

(5,606)

(5,608)

Net Expenditures Note: Totals may not add due to rounding.

PAGE 408

2025 FINANCIAL PLAN

CITY OF KELOWNA

Enabling Services Revenues and Expenditures by Year $ thousands Revenue Library Requisition Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

(8,418) (141) (16,021) (11,215) (4,805) (21,108) (5,078) (513) — (5,664) (9,853) (37,138) (29,357) (795) (6,986) (82,826)

(8,586) (141) (16,436) (11,440) (4,996) (19,391) (5,078) (200) — (5,664) (8,449) (28,189) (22,581) (795) (4,813) (72,743)

(8,758) (141) (16,606) (11,440) (5,166) (35,841) (5,436) (204) (15,900) (5,664) (8,637) (21,903) (14,826) (795) (6,282) (83,249)

(8,933) (141) (17,392) (11,669) (5,723) (20,306) (5,625) (208) — (5,664) (8,810) (24,035) (19,632) (795) (3,608) (70,807)

(9,112) (141) (17,806) (11,902) (5,905) (20,682) (5,820) (212) — (5,664) (8,986) (25,006) (20,498) (795) (3,712) (72,746)

30,489 42,396 3,551 2,746 3,949 37,792 373 373 — 20,471 20,309 — 162 141,766

32,893 40,151 3,902 3,917 5,084 27,939 373 373 — 20,914 20,937 — (23) 135,173

34,098 40,956 3,796 8,592 9,533 35,573 373 373 — 20,019 20,792 — (773) 152,939

35,353 41,775 3,927 10,046 10,919 24,534 373 373 — 20,738 21,536 — (797) 147,666

36,644 42,610 4,027 12,567 13,347 26,271 373 373 — 21,547 22,345 — (797) 157,386

58,940

62,430

69,691

76,859

84,640

Net Expenditures Note: Totals may not add due to rounding.

PAGE 409

2025 FINANCIAL PLAN

CITY OF KELOWNA

Fire Safety Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (2,867) (698) (2,170) (3,097) — (2,633) — (464) — (3,909) (3,817) — (92) (9,874)

— (2,967) (722) (2,245) (486) — (12) — (473) — (13,059) (12,852) — (207) (16,512)

— (3,070) (747) (2,323) (6,495) — (12) (6,000) (483) — (6,906) (6,701) — (205) (16,471)

— (3,176) (773) (2,404) (10,505) — (13) (10,000) (493) — (8,428) (8,136) — (292) (22,110)

— (3,287) (800) (2,487) (515) — (13) — (502) — (2,817) (2,772) — (45) (6,619)

28,398 1,758 216 — — 6,530 16 16 — 1,412 900 — 512 38,329

29,688 1,723 224 — — 13,059 16 16 — 1,412 900 — 512 46,121

30,631 1,837 232 — — 12,906 16 16 — 1,412 900 — 512 47,033

31,694 1,901 240 — — 18,428 16 16 — 1,412 900 — 512 53,690

32,794 1,967 248 — — 2,817 16 16 — 1,412 900 — 512 39,253

28,456

29,610

30,562

31,580

32,634

Net Expenditures Note: Totals may not add due to rounding.

PAGE 410

2025 FINANCIAL PLAN

CITY OF KELOWNA

Governance & Leadership Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue Expenditures Salaries and Wages Material and Other Contract Services Debt Interest Debt Principal Capital Expenditure Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Expenditures Net Expenditures Note: Totals may not add due to rounding.

2025

2026

2027

2028

2029

— (10) (2) (8) (55) — — — — (55) (75) — — (75) (140)

— (10) (2) (8) (56) — — — — (56) — — — — (66)

— (10) (2) (8) (57) — — — — (57) — — — — (68)

— (11) (2) (9) (58) — — — — (58) — — — — (69)

— (11) (2) (9) (60) — — — — (60) — — — — (70)

3,229 731 442 — — — — — — — — — — 4,403

3,341 584 457 — — — — — — — — — — 4,383

3,457 784 473 — — — — — — — — — — 4,715

3,577 811 490 — — — — — — — — — — 4,878

3,702 839 506 — — — — — — — — — — 5,047

4,263

4,317

4,647

4,809

4,977

PAGE 411

2025 FINANCIAL PLAN

CITY OF KELOWNA

Parking Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (9,393) (9,361) (32) (10) — — — — (10) (2,724) (2,724) — — (12,127)

— (9,581) (9,548) (33) (11) — — — — (11) (2,236) (2,236) — — (11,827)

— (9,773) (9,739) (33) (6,511) — — (6,500) — (11) (2,236) (2,236) — — (18,519)

— (9,968) (9,934) (34) (11) — — — — (11) (7,236) (7,236) — — (17,215)

— (10,167) (10,133) (35) (11) — — — — (11) (3,736) (3,736) — — (13,914)

1,281 1,173 2,108 — — 2,477 841 841 — 2,597 2,597 — — 10,477

1,381 1,027 2,150 — — 2,100 841 841 — 2,677 2,677 — — 10,177

1,429 1,048 2,193 — — 8,600 841 841 — 2,757 2,757 — — 16,869

1,479 1,069 2,237 — — 7,100 841 841 — 2,838 2,838 — — 15,565

1,530 1,090 2,282 — — 3,600 841 841 — 2,921 2,921 — — 12,264

(1,650)

Net Expenditures Note: Totals may not add due to rounding.

PAGE 412

2025 FINANCIAL PLAN

CITY OF KELOWNA

Parks Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (1,503) (1,451) (52) (7,606) — (1,087) (6,262) — (258) (54,650) (19,979) (32,995) (1,676) (63,759)

— (1,555) (1,501) (54) (228) — — — — (228) (50,570) (34,164) (16,178) (229) (52,353)

— (1,609) (1,553) (56) (20,232) — — (20,000) — (232) (46,946) (29,777) (17,140) (29) (68,787)

— (1,665) (1,607) (58) (237) — — — — (237) (40,450) (26,145) (14,277) (29) (42,352)

— (1,722) (1,663) (60) (242) — — — — (242) (26,895) (17,348) (9,518) (29) (28,860)

5,761 4,007 6,184 — — 63,131 31 31 — 570 570 — — 79,684

6,018 3,986 6,390 — — 52,302 31 31 — 570 570 — — 69,297

6,227 4,125 6,719 — — 69,060 31 31 — 570 570 — — 86,731

6,443 4,268 6,952 — — 42,757 31 31 — 573 570 — 3 61,023

6,666 4,416 7,193 — — 29,405 31 31 — 577 570 — 7 48,288

15,925

16,944

17,944

18,672

19,428

Net Expenditures Note: Totals may not add due to rounding.

PAGE 413

2025 FINANCIAL PLAN

CITY OF KELOWNA

Partnerships Office Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (104) (100) (4) (140) — — — — (140) (404) — — (404) (648)

— (107) (103) (4) (143) — — — — (143) (223) — — (223) (473)

— (111) (107) (4) (146) — — — — (146) — — — — (256)

— (115) (111) (4) (149) — — — — (149) — — — — (263)

— (119) (115) (4) (152) — — — — (152) — — — — (270)

1,186 880 — — — — — — — — — — — 2,066

1,227 568 — — — — — — — — — — — 1,795

1,100 535 — — — — — — — — — — — 1,635

1,138 554 — — — — — — — — — — — 1,691

1,177 573 — — — — — — — — — — — 1,750

1,419

1,322

1,378

1,428

1,480

Net Expenditures Note: Totals may not add due to rounding.

PAGE 414

2025 FINANCIAL PLAN

CITY OF KELOWNA

Police Services & RCMP Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (663) (591) (72) (6,290) — (4,323) — (1,705) (262) (3,893) — — (3,893) (10,846)

— (686) (612) (74) (6,416) — (4,409) — (1,739) (267) (3,893) — — (3,893) (10,994)

— (709) (633) (77) (6,544) — (4,497) — (1,774) (273) (3,893) — — (3,893) (11,147)

— (734) (655) (79) (6,675) — (4,587) — (1,810) (278) (3,893) — — (3,893) (11,302)

— (759) (677) (82) (6,809) — (4,679) — (1,846) (284) (3,893) — — (3,893) (11,461)

10,790 542 58,268 — — — 10 10 — — — — — 69,610

11,368 519 61,757 — — — 10 10 — — — — — 73,654

11,673 536 63,900 — — — 10 10 — — — — — 76,120

12,078 554 66,118 — — — 10 10 — — — — — 78,760

12,498 572 68,412 — — — 10 10 — — — — — 81,492

58,764

62,660

64,974

67,458

70,031

Net Expenditures Note: Totals may not add due to rounding.

PAGE 415

2025 FINANCIAL PLAN

CITY OF KELOWNA

Solid Waste & Landfill Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (26,609) (21,825) (4,783) (1,561) — — — (1,050) (511) (15,297) (15,297) — — (43,467)

— (27,141) (22,262) (4,879) (1,592) — — — (1,071) (521) (8,250) (8,250) — — (36,983)

— (27,683) (22,707) (4,977) (1,624) — — — (1,092) (532) (8,650) (8,650) — — (37,957)

— (28,237) (23,161) (5,076) (1,656) — — — (1,114) (542) (7,585) (7,585) — — (37,479)

— (28,802) (23,624) (5,178) (1,690) — — — (1,137) (553) (3,610) (3,610) — — (34,101)

3,598 4,366 6,407 — — 15,288 3,093 3,093 — 10,515 10,515 — — 43,267

3,775 4,537 6,536 — — 8,250 2,049 2,049 — 11,635 11,635 — — 36,783

3,906 4,695 6,763 — — 8,650 2,049 2,049 — 11,695 11,695 — — 37,757

4,042 4,858 6,997 — — 7,585 2,049 2,049 — 11,748 11,748 — — 37,279

4,182 5,026 7,240 — — 3,610 2,049 2,049 — 11,794 11,794 — — 33,901

(200)

Net Expenditures Note: Totals may not add due to rounding.

PAGE 416

2025 FINANCIAL PLAN

CITY OF KELOWNA

Sport & Recreation Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (4,852) (3,527) (1,325) (25,211) — (165) (24,965) — (81) (1,246) (414) (314) (518) (31,308)

— (5,071) (3,679) (1,392) (85,250) — (168) (85,000) — (82) (2,787) (1,894) — (892) (93,108)

— (5,247) (3,807) (1,440) (100,255) — (172) (100,000) — (84) (16,970) (15,821) — (1,148) (122,472)

— (5,429) (3,939) (1,490) (4,945) — (175) (4,684) — (85) (29,573) (29,221) — (351) (39,946)

— (5,617) (4,075) (1,542) (266) — (179) — — (87) (2,452) (2,407) — (45) (8,335)

9,039 4,362 3,633 — — 25,943 — — — 817 — — 817 43,794

9,409 4,260 3,718 — — 87,740 — — — 817 — — 817 105,944

9,736 4,155 3,822 — — 116,948 — — — 817 — — 817 135,477

10,073 4,288 3,955 — — 34,235 — — — 817 — — 817 53,368

10,423 4,426 4,092 — — 2,430 — — — 817 — — 817 22,188

12,486

12,836

13,005

13,422

13,853

Net Expenditures Note: Totals may not add due to rounding.

PAGE 417

2025 FINANCIAL PLAN

CITY OF KELOWNA

Stormwater & Flood Protection Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (1) (1) — (3,106) — (2,832) — — (274) (8,830) (7,442) (1,062) (326) (11,936)

— (1) (1) — (99) — — — — (99) (20,900) (19,452) (1,388) (60) (21,000)

— (1) (1) — (99) — — — — (99) (16,100) (14,579) (1,471) (50) (16,200)

— (1) (1) — (99) — — — — (99) (9,110) (7,835) (1,225) (50) (9,210)

— (1) (1) — (99) — — — — (99) (9,720) (8,853) (817) (50) (9,820)

1,114 1,274 15 — — 11,336 167 167 — — — — — 13,906

1,153 858 16 — — 20,840 167 167 — — — — — 23,033

1,193 872 16 — — 16,050 167 167 — — — — — 18,298

1,234 897 17 — — 9,060 167 167 — — — — — 11,374

1,277 922 17 — — 9,670 167 167 — — — — — 12,053

1,970

2,033

2,098

2,164

2,233

Net Expenditures Note: Totals may not add due to rounding.

PAGE 418

2025 FINANCIAL PLAN

CITY OF KELOWNA

Transit Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (8,788) (8,239) (548) (17,996) — (16,896) — — (1,100) (4,211) (334) — (3,877) (30,995)

— (9,082) (8,525) (557) (18,400) — (17,584) — — (816) (5,807) (596) — (5,211) (33,288)

— (9,386) (8,821) (565) (18,698) — (18,074) — — (624) (6,651) (717) — (5,934) (34,735)

— (9,700) (9,127) (573) (18,570) — (17,934) — — (637) (3,682) (337) — (3,345) (31,952)

— (10,025) (9,444) (581) (18,928) — (18,278) — — (649) (3,646) (332) — (3,314) (32,599)

353 452 36,027 — — 2,902 387 387 — 307 — — 307 40,427

365 307 37,277 — — 5,410 387 387 — 307 — — 307 44,053

378 319 38,570 — — 6,508 387 387 — 307 — — 307 46,468

391 330 39,909 — — 3,055 387 387 — 307 — — 307 44,378

404 341 41,294 — — 3,014 387 387 — 307 — — 307 45,747

9,432

10,765

11,734

12,426

13,148

Net Expenditures Note: Totals may not add due to rounding.

PAGE 419

2025 FINANCIAL PLAN

CITY OF KELOWNA

Transportation Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

— (2,257) (1,575) (682) (1,015) — — (400) (91) (524) (80,873) (38,456) (38,756) (3,661) (84,145)

— (1,864) (1,169) (696) (40,535) — — (40,000) — (535) (49,866) (2,709) (47,097) (60) (92,265)

— (1,902) (1,192) (710) (10,546) — — (10,000) — (546) (54,021) (4,124) (49,897) — (66,468)

— (1,940) (1,216) (724) (55,557) — — (55,000) — (557) (44,750) (3,188) (41,562) — (102,246)

— (1,978) (1,240) (738) (40,568) — — (40,000) — (568) (38,321) (10,611) (27,710) — (80,867)

8,759 8,533 781 — — 88,004 — — — 275 25 — 250 106,352

8,986 8,041 783 — — 97,653 — — — 214 (36) — 250 115,677

9,298 8,259 811 — — 72,573 — — — 147 (103) — 250 91,089

9,621 8,546 839 — — 109,045 — — — 74 (176) — 250 128,126

9,955 8,843 869 — — 88,397 — — — (4) (254) — 250 108,059

22,208

23,412

24,620

25,879

27,191

Net Expenditures Note: Totals may not add due to rounding.

PAGE 420

2025 FINANCIAL PLAN

CITY OF KELOWNA

Wastewater Utility Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

(1,093) (24,592) (24,592) — (7,257) (1,163) (4,030) — (974) (1,090) (209) (3,041) (13,132) (14,002) (63,116)

— (23,316) (22,948) (368) (3,454) (253) (1,306) — (938) (957) (24,877) (2,053) (3,975) (18,849) (51,646)

(3,041) (24,214) (23,846) (368) (6,261) (1,325) (3,041) — (938) (957) (17,180) (1,347) (5,000) (10,833) (50,696)

(1,675) (25,148) (24,781) (368) (4,707) (1,104) (1,675) — (938) (990) (20,707) (1,623) (10,000) (9,084) (52,238)

(380) (26,423) (26,055) (368) (3,322) (980) (380) — (938) (1,025) (20,386) (1,598) (10,000) (8,788) (50,511)

6,384 6,591 703 241 599 44,664 2,363 1,989 374 1,570 508 — 1,062 63,116

6,696 6,352 729 241 599 26,183 1,976 1,976 — 8,870 508 — 8,362 51,646

6,696 6,134 729 173 295 17,180 1,976 1,976 — 17,511 508 — 17,003 50,696

6,929 6,160 754 117 91 20,707 1,976 1,976 — 15,503 508 — 14,995 52,238

7,169 6,186 780 117 91 20,386 1,976 1,976 — 13,805 508 — 13,297 50,511

—

1,062

1,047

1,035

956

1,172

Net Expenditures Surplus/(Deficit) (Included Above)

Note: Totals may not add due to rounding. The Surplus/(Deficit) is the overall surplus/(deficit) budgeted for the fund during the year.

PAGE 421

2025 FINANCIAL PLAN

CITY OF KELOWNA

Water Utility Revenues and Expenditures by Year $ thousands Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Borrowing Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue

2025

2026

2027

2028

2029

(3,135) (26,510) (26,419) (91) (3,909) (945) (2,720) — — (244) (18,611) — (1,816) (16,795) (52,164)

(1,821) (17,106) (17,013) (93) (303) (60) — — — (244) (17,040) — — (17,040) (36,270)

(1,855) (18,331) (18,238) (93) (2,304) (60) (2,000) — — (244) (23,740) — — (23,740) (46,230)

(1,881) (19,825) (19,731) (95) (15,305) (61) — (15,000) — (244) (31,790) — — (31,790) (68,801)

(1,908) (21,446) (21,349) (97) (7,806) (62) — (7,500) — (244) (16,490) — — (16,490) (47,649)

7,928 9,279 232 688 357 26,393 1,907 1,651 256 5,380 — — 5,380 52,164

8,187 9,362 260 688 357 17,190 1,576 1,553 22 (1,351) — — (1,351) 36,270

8,187 9,070 260 688 357 25,890 1,576 1,553 22 202 — — 202 46,230

8,472 9,155 269 688 357 46,940 1,576 1,553 22 1,344 — — 1,344 68,801

8,765 9,241 279 688 357 24,140 1,576 1,553 22 2,603 — — 2,603 47,649

—

1,342

—

177

430

691

Net Expenditures Surplus/(Deficit) (Included Above)

Note: Totals may not add due to rounding. The Surplus/(Deficit) is the overall surplus/(deficit) budgeted for the fund during the year.

PAGE 422

2025 FINANCIAL PLAN

CITY OF KELOWNA

APPENDIX

2025 FINANCIAL PLAN

CITY OF KELOWNA

APPENDIX SUPPLEMENTAL INFORMATION

Citizen Survey Results The Citizen Survey is conducted to determine how satisfied the public is with municipal programs and services, and to learn what citizens’ service priorities are. Responses are weighted by age, gender and city-wide distribution to accurately reflect Kelowna’s population. Results are benchmarked against other local governments. Insights gained by this research help us make important decisions regarding planning, budgeting and service improvements. Ipsos has conducted the Citizen Survey for the City in 2024, 2022, 2020, 2018, 2017, 2015 and 2012.

Citizens’ top three priorities for investment are addressing social issues, encouraging a diverse supply of housing, and traffic flow management. While all evaluated services are important to citizens, the services most important to our residents in 2022 include: Fire Services Drinking Water Quality

Full results can be found at kelowna.ca. Community Cleanliness Police Services Road Maintenance

The latest Citizen Survey reports that: • • • • • •

86% of citizens have a good quality of life 86% of citizens are satisfied with the overall level and quality of City services 89% of citizens agree that the City is inclusive and accepting of all 81% of citizens feel safe in the community 79% of citizens were satisfied with the customer service they received 73% of citizens believe they receive good value for their tax dollars

Areas of strength amongst City services include fire services, parks and sports fields, drinking water quality, recreational facilities and programs, snow clearing, road maintenance, and police services. Citizens are identified cultural facilities and bylaw services as secondary strengths. Areas for improvement include traffic flow management and community cleanliness, as well as growth management, public transit, adapting City operations and infrastructure to climate change, and bike lanes and pedestrian sidewalks. Citizens were also asked if they would prefer tax increases over service reductions:

Important issues for citizens include addressing social issues such as homelessness (41%), transportation (26%) and crime (12%).

PAGE II

2025 FINANCIAL PLAN

CITY OF KELOWNA

2040 OFFICIAL COMMUNITY PLAN

Our Kelowna as we Grow Kelowna is one of Canada’s fastest growing cities, with another 45,000 citizens expected by 2040. This growth will bring both opportunities and challenges that require us to plan strategically to ensure Kelowna remains prosperous, vibrant and resilient in the years to come. Our city’s approach to growth will be shaped by the recently adopted 2040 Official Community Plan (OCP), a guiding document which sets a strategic course for the next two decades. An OCP provides a decision-making framework for Council with policies and objectives aimed at growth management and issues related to housing, transportation, infrastructure, parks, economic development, and the natural and social environment. The 2040 OCP also strives to bring our community’s Imagine Kelowna vision of an equitable, inclusive, sustainable city to life. This will mean making smart choices about how and where we grow, protecting our environment, making meaningful progress towards Reconciliation, and ensuring that everybody who lives here can make a living, find suitable housing, and get around easily and safely. Building on the goals laid out in Imagine Kelowna, the Plan contains the following 10 Pillars:

The 2040 OCP includes updated land uses, mapping and policies to reflect these Pillars and clearly signal where development will be prioritized and supported with infrastructure and amenities. Now that the Plan has been adopted, putting it into action will require several key implementation actions throughout its lifespan. A comprehensive implementation table is being used to guide the timing and resourcing of OCP implementation actions, with due recognition of available budget and other work planning considerations.

PAGE III

2025 FINANCIAL PLAN

CITY OF KELOWNA

STATISTICS Top 10 corporate taxpayers 2024

2023

Rank

Business (owner) name

Type of property

Rank

Business (owner) name

McIntosh Properties Ltd

Shopping Mall

Type of property

FortisBC

Al Stober Construction Ltd

Electrical Utility

Commercial Building

Orchard Park Shopping Centre

Shopping Mall

FortisBC

Electrical Utility

Al Stober Construction Ltd

Commercial Building

Inland Natural Gas Co Ltd

Gas Utility

DHL No 48 Holdings Ltd

Multiple Types

Victor Projects Ltd

Multiple Types

McIntosh Properties Ltd

Shopping Mall

DHL No 48 Holdings Ltd

Aqua Resort Ltd

Multiple Types

Mission Group Holdings Ltd

Hotel & Convention Centre Commercial Building

RG Properties Ltd

Shopping Mall

Tolko Industries Ltd

Multiple Types

4231 Investment Ltd

Multiple Types

SRI Homes Inc

Multiple Types

Victor Projects Ltd

Multiple Types

RG Properties Ltd

Multiple Types

Dilworth Shopping Centre Ltd

Shopping Mall

Tax comparison analysis – 2023 & 2024 Business Assessed value

2023

2024

Difference

Change

2,302,400

2,664,998

362,598

15.75%

13,308

13,934

626

4.70%

7,667

9,034

1,367

17.83%

Municipal General Tax Levy School General Tax Levy Other Taxing Jurisdictions Regional District Levy

1,137

1,358

221

19.44%

Hospital Levy

1,076

1,245

169

15.71%

Library Levy

551

572

3.81%

BC Assessment Levy

222

257

15.77%

23,961

26,400

2,439

10.18%

Total Tax Levy Residential Assessed value

2023

2024

Difference

Change

1,009,350

983,130

(26,220)

(2.60%)

2,349

2,459

110

4.70%

Municipal General Tax Levy Public Safety Levy

4.70%

2,372

2,484

112

4.70%

181

192

6.00%

General Tax Levy

1,144

1,163

1.67%

Homeowner Grant

(770)

0.00%

374

393

5.12%

Regional District Levy

204

0.47%

Hospital Levy

193

188

(5)

(2.62%)

Library Levy

102

3.81%

BC Assessment

0.59%

Total Tax Levy

3,456

3,597

141

4.09%

Other Municipal User Fees Garbage Collection/Waste Reduction School

Other Taxing Jurisdictions

Note: Totals may not add due to rounding

PAGE IV

2025 FINANCIAL PLAN

CITY OF KELOWNA

Local Economy The City of Kelowna is the largest city in the Central Okanagan. It borders the beautiful Okanagan Lake and has the best of rural and urban lifestyles packed into one unique city. With a diverse economy supported by quality post-secondary institutions, Kelowna has become the main marketing and distribution centre of the Okanagan Valley. Kelowna also has a thriving arts and culture scene combined with all the outdoor activities that make the Central Okanagan a must-see tourism destination, as well as a popular place to live. Settled in 1879 and incorporated in 1905, Kelowna is known for its agriculture and forestry roots and has grown into a modern city.

Occupation North American Industry Classification System (NAICS) Construction Manufacturing Wholesale and retail trade Transportation and warehousing

1,528 1,621 1,224

1,805

Finance, insurance, real estate, rental and leasing Professional, scientific and technical services

1,145

Business, building and other support services 13

843 2,889

Educational services Health care and social assistance

2,837 1,099 1,572

1,434 709 1,943

Information, culture and recreation Accommodation and food services Public administration Other services (except public administration)

Statistics Canada. Table 14-10-0355-01 Employment by industry, monthly, seasonally adjusted and unadjusted, and trend-cycle, last 5 months (× 1,000)

Doing Business in the Community Development Incentives The City of Kelowna offers several developer incentives to encourage alignment with the City’s strategic priorities for urban development. Tax incentives are available for development in City Centre and Rutland Urban Centres, and grants and tax incentives are available to promote the development of purpose-built rental housing throughout Kelowna. Further information regarding development incentives in Kelowna may be found Kelowna.ca/homes & buildings/developers/ developer incentives Commercial Land The major commercial areas within Kelowna are the downtown, Highway 97, and Mission / South Pandosy districts. Kelowna’s 2040 Official Community Plan | City of Kelowna projects the need for 193,100 square metres of retail commercial space between 2021 and 2040. We also anticipate the need for 119,450 square metres of office space over the same period. The OCP emphasizes land re-use and densification over continued expansion into greenfield areas. Industrial Land There are 1,466 acres of existing zoned industrial land within Kelowna’s boundaries. Kelowna has also identified 1,867 acres of land designated for future industrial development in the 2040 Official Community Plan | City of Kelowna. Industrial vacancy rates are currently low, and the market is active and dynamic. For more information on the local economy, visit www.investkelowna.com. Source: Economic development | City of Kelowna

PAGE V

2025 FINANCIAL PLAN

CITY OF KELOWNA

Business licences

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019 2020

2021 2022

2023

Total of All Licences Issued

*The City of Kelowna stopped issuing secondary suite licences in 2017. The business licence stats are measured December 1st to December 1st due to business licence rollover.

Access to markets Kelowna’s central location provides the city with access to key markets, as well as their population base. Distance (km) to Kelowna from: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Vancouver – 457 Seattle – 579 Calgary – 612 Portland – 826 Saskatoon – 1,233 Salt Lake City – 1,614 San Francisco – 1,872 Winnipeg – 1,970 Los Angeles – 2,494 Denver – 3,215

PAGE VI

2025 FINANCIAL PLAN

CITY OF KELOWNA

GLOSSARY Accrual basis of accounting: A method of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Accumulated surplus: The balance in a fund that represents the cumulative excess in revenues over expenditures. This term also refers to reserve accounts. Activities: Details how Council, Corporate and Divisional priorities lead the work done at the divisional level; activities are work plans to be accomplished in the current year. Alternative approval process: To provide electors the opportunity to seek a vote on a particular matter being proposed by Council. Approval is obtained if fewer than 10% of eligible electors in the area submit elector response forms (formerly known as counter-petition process). Amortization: Is the gradual reduction of debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. Appropriation: Term used to refer to the setting aside of monies into a reserve account or fund. Balanced budget: Budgeted expenditures and transfers to funds are equal to budgeted revenues and transfers from funds. Base budget: The initial budget that provides for the existing levels of service in the current year. Capital assets: Is a long-term asset that is not purchased or sold in the normal course of business. Generally, it includes fixed assets. Capital expenditures: Expenditures of a non-operating or maintenance nature, such as costs to acquire equipment, land, buildings and costs associated with new infrastructure or improvements to existing infrastructure. Capital lease: Is a lease obligation that has to be capitalized on the balance sheet. Cost centre: Within the City’s reporting structure a cost center refers to a specific director, manager, supervisor or division (see Department/Division/Branch). Conditional grants: Grants (e.g. Federal and Provincial Government) that are dependent on annual approval and potentially limited in how they may be expended. Debenture: A form of long-term corporate debt that is not secured by the pledge of specific assets. Debt service: The amount of interest and payments due annually on long term debt. Deficit: An excess of expenditure over revenue. A loss in business operations. Division/Department/Branch: Part of the City’s organization structure. Divisions are the highest level grouping; departments are sections under the division and branches are sections under department. (i.e. Division – Financial Services; Department – Financial Planning; Branch – Budget). Depreciation: Accounting method used to allocate the cost of a tangible or physical asset over its useful life. Development Cost Charges (DCCs): Monies collected from land developers to offset some of the infrastructure expenditures required to service new development. Charges are intended to facilitate development by providing a method to finance capital projects related to water, sewer, drainage, roads and parkland acquisition. Expenditure: The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service or settling a loss. Expenditure reduction: A request to reduce an existing expenditure level.Fees and charges: A source of revenue generated by the activities, works or facilities undertaken or provided by or on behalf of the City.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Financial Plan: Section 165 of the Community Charter requires that a municipality must have a financial plan that is adopted annually, by bylaw, before the annual property tax bylaw is adopted. The financial plan may be amended by bylaw at any time and is for a period of 5 years. The financial plan identifies the revenue sources and the proposed expenditures to be incurred to meet the outlined objectives. Franchise fee: A charge made to a privately owned utility for the ongoing use of City property. Full-Time Equivalents (FTEs): A conversion measure to express all staffing (temporary, part-time, etc.) in terms of a common full-time denominator. Fund: A fiscal entity with revenues and expenses which are segregated for the purpose of carrying out a specific activity. The City has four main funds: general, water, wastewater, and airport. There are also various statutory reserve funds. General Fund: This fund is used to account for general operations and activities and includes most city departments except the enterprise funds of water, wastewater, and airport. The departmental activities in the general fund are funded wholly or in part by property taxes. General revenue: Refers to the revenues which are not specifically attributable to or generated by any particular department within the City’s reporting structure. Grants-in-lieu: Properties within a municipality that are owned by the Federal or Provincial governments are exempt from taxation. The City may receive a grant-in-lieu in place of a tax levy. Infrastructure: Facilities and improvements such as buildings, roads, sidewalks, storm drainage, waterworks, sanitary sewer systems. Internal control: Include policies and procedures that pertain to the maintenance of accurate and reasonably detailed records. Internal equipment revenue: Revenue generated from a charge against current operations for the use of a City vehicle or equipment. The charge is similar for a class of vehicles and is based on full recovery plus inflation. Local Government Act (LGA): Provincial legislation that provides authority for municipal expenditure and revenue collection. Some sections of the LGA have been replaced by the Community Charter. Modified accrual basis: Modified accrual accounting recognizes revenues when they become available and measurable and with a few exceptions, recognizes expenditures when liabilities are incurred. Official Community Plan (OCP): A City bylaw that defines policies for land use and development. Operating expenses: The cost for personnel, internal equipment, materials, contract services and transfers required for a department to function. Operating request: A request for operating budget that is required to provide a new service or expand an existing service beyond the current funding level. Operating revenue: Funds that the City receives as income to pay for ongoing operations. It includes such items as taxes, fees and charges from specific services, interest earnings, and grant revenues. Pay-as-you-go Capital: Capital expenditures that are financed from current year taxation revenues. Parcel tax: A tax imposed on the basis of a single amount for each parcel, the taxable area of the parcel, or the taxable frontage of a parcel. Property taxation: The process by which the City obtains the required funds to pay for the General Fund Operating and Capital expenditures of any given year not funded from another source. This is provided by a levy on each property of various classes within the municipality. Reserve account: Part of the Accumulated Surplus that has been earmarked for future operating or capital expenditures.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

Reserve Fund (statutory reserves): A reserve fund is established by Council by bylaw for a specified purpose that is within the powers of the municipality within the powers of the LGA or another Act. Revenue: Sources of income financing the operations of the City. Tradewaste Treatment Facility (TWTF): Wastewater treatment facility run by the City but charged back to specific commercial users. UPASS: A program where students pay a fee per semester that lets them use their student card as a bus pass. Utility: The City owns two utilities: water, and wastewater. The airport is also treated like a separate utility. These utilities pay for themselves through a separate revenue structure specific to each one that pays for their respective operating costs, debt servicing costs and capital projects not funded from other sources. Working capital: The excess of current assets over current liabilities.

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2025 FINANCIAL PLAN

CITY OF KELOWNA

ACRONYMS & ABBREVIATIONS AHLAS

Affordable Housing Land Acquisition Strategy

FCA

Facility Condition Assessment

Artificial Intelligence

FOI

Freedom of Information

AIF

Airport Improvement Fee

FTE

Full-time Equivalent

ALC

Active Living & Culture

GAAP

Generally Accepted Accounting Principles

ALR

Agricultural Land Reserve

GFOA

Government Finance Officers Association

AMCP

Asset Management and Capital Planning

GHG

Greenhouse Gas

AMS

Asset Management System

GIS

Geographical Information Systems

ASQ

Airport Service Quality

HAP

Heritage Application Permit

ATC

Active Transportation Corridor

Human Resources

BCA

BC Assessment

HVAC

Heating, Ventilation and Air Conditioning

BCRPA

IAFF

International Association of Fire Fighters

ICBC

Insurance Corporation of British Columbia

British Columbia Recreation and Parks Association Building Permit

ICG

International Children’s Games

C&E

Climate and Environment

ICIP

Investing in Canada Infrastructure Program

C.C.

Community Charter

IHA

Interior Health Authority

CAC

Child Advocacy Centre

Imagine Kelowna

CCTV

Closed-circuit television

IoT

Internet of Things

CLS

Corporate Land System

Information Services

CMHA

Canadian Mental Health Association

ITIL

Information Technology Infrastructure Library

COJHS

Central Okanagan Journey Home Society

COK

City of Kelowna

KCR KCT

Kelowna Community Resource Kelowna Community Theatre

COVID-19

Coronavirus Disease 2019

KFD

Kelowna Fire Department

CPIC

Canadian Police Information Centre

KMMFA

Kelowna Major Men’s Fastball Association

CPO

Community Policing Office

KPI

Key Performance Indicators

CPTED

Crime Prevention through Environmental Design

KSS

Kelowna Secondary School

CRTC

LAS

Local Area Service

LiDAR

Light Detection and Ranging

CSP

Canadian Radio-television and Telecommunications Corporate Strategy and Performance

LGCAP

Local Government Climate Action Program

CUPE

Canadian Union of Public Employees

LOA

Lease and Operating Agreement

CWME

Capital Works Machinery & Equipment – statutory reserve fund

MBL

Multiple Bottom Line

MEP

Major Events Program

Development Application Review

MFA

Municipal Finance Authority

DCC

Development Cost Charge

MoTI

Ministry of Transportation and Infrastructure

DKA

Downtown Kelowna Association

MOU

Memorandum of Understanding

DMAF

Disaster Mitigation Adaptation Fund

MUP

Multi-Use Path

DMAF

Disaster Mitigation and Adaption Fund

Neighbourhood Associations

DOCP

Design Operation and Closure Plan

NG911

Next Generation 911 compliant equipment

DVP

Development Variance Permit

NPS

Net Promoter Score

EOC

Emergency Operating Centre

NRCan

Natural Resources Canada

ERF

Effective Response Force

Okanagan College

ESS

Emergency Support Services

OCP

Official Community Plan

Electric Vehicle

DAR

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2025 FINANCIAL PLAN

CITY OF KELOWNA

ORT

Okanagan Rail Trail

TWTF

Trade Waste Treatment Facility

PAC

Performing Arts Centre

UBCM

Union of British Columbia Municipalities

PAWS

Pre-Authorized Withdrawal System

PBMP

Pedestrian & Bicycle Master Plan

PBMP

Pedestrian and Bicycle Master Plan

PCARD

Purchasing CardL

PEOPLE

Paid Employment Opportunities for People with Lived Experiences

PRC

Parkinson Recreation Centre

UBCO URBA UTV VFD WQA WWTF YLW

University of British Columbia Uptown Rutland Business Association Utility Vehicle Variable Frequency Drive Water Quality Advisory Wastewater Treatment Facility Kelowna International Airport

PRV

Pressure Reducing Valve

PSAB

Public Sector Accounting Board

PSAS

Public Sector Accounting Standards

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

RCMP

Royal Canadian Mounted Police

RDCO

Regional District of the Central Okanagan

RFI

Request for Information

RFP

Request for Proposal

RIM

Records & Information Management

ROI

Return on Investment

RRFB

Rectangular Rapid Flashing Beacons

S4L

Sport For Life

SCA

Sewer Connection Area

SCADA

Supervisory Control and Data Acquisition

SCBA

Self Contained Breathing Apparatus

SD23

School District No. 23

SEK

Southeast Kelowna

SEKID

Southeast Kelowna Irrigation District

SMART

Specific, Measurable, Achievable, Relevant, Timely

SMOR

Strategic Management Owned Report

SOMID

South Okanagan Mission Irrigation District

STPCO

Sustainable Transportation Partnership of the Central Okanagan

TAP

Transportation Accelerator Program

TCA

Tangible Capital Assets

TMP

Transportation Master Plan

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2025 FINANCIAL PLAN

CITY OF KELOWNA