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GOVERNMENT FINANCE OFFICERS ASSOCIATION
PRESENTED TO
For the Fiscal Year Beginning January 01, 2025
Executive Director
Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Penticton, for its 2025-2029 Budget for the fiscal year beginning January 1, 2025. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device.
This award is valid for a period of 2025 only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
Wai
We acknowledge that our community is located on the traditional territory of the Syilx Okanagan People. We are thankful for the opportunity to live, work and play in this beautiful environment. Limlemt
Penticton has an abundance of natural beauty that is complemented by an ethos of being welcoming and inclusive
Based in the traditional and unceded territory of the Syilx people in the Okanagan Nation, Penticton is a thriving and growing community of more than 37,000.
From agrarian roots, Penticton has become a popular destination for tourists and for those looking for a place to call home. One of only two communities in the world situated between two lakes, Penticton has an abundance of natural beauty that is complemented by an ethos of being welcoming and inclusive.
As a bustling city, Penticton offers residents tremendous assets – including the South Okanagan Events Centre, the Community Centre, Cleland Theatre, the Trade and Convention Centre and a variety of parks and sports fields. Residents also enjoy state-of-the-art infrastructure, ensuring the quality of water is among the best anywhere, and benefit from being one of five municipalities in the province that operate its own electric utility.
For residents and visitors, Penticton has beaches, award-winning wineries and trails with stellar
views. The outdoor market, art galleries, skating at the outdoor rink, skiing or live events at the South Okanagan Events Centre means there’s always something to do. That’s even truer during the summer, every weekend is full – from the Ignite the Arts Festival to the Elvis Festival to PeachFest.
Underlying all of that is a commitment to sound, fiscal management that allows the City of Penticton to continue to invest in needed infrastructure and continue to ensure we’re a safe and resilient community.
The City is committed to informing the public on City projects and progress through a variety of means including the utility newsletter, Annual Report, news releases and service announcements, podcasts as well as social media. The City’s app is a source of information on upcoming events as well as highlights from Council meetings.
With the achievements accomplished during the first half of Council’s term and as they move into their final year of governing, Council has refocused their
The pages that follow infuse action into the City’s priorities and initiatives as we build a stronger Penticton
priorities through strategic planning to emphasize their commitment on the community being Safe & Resilient and Livable & Accessible. Safe & Resilient reflects Council’s commitment to creating a safe, supportive community through a balanced approach that addresses crime, assists vulnerable populations and builds long-term resilience. Livable & Accessible drives the City’s efforts to improve the quality of life for all residents through better housing solutions, accessible public spaces and safe streets, and inclusive community services.
How the City’s plans work together to achieve Council’s priorities:
The City has many plans that influence the budget, these include such documents as Council Priorities, infrastructure master plans, the Official Community Plan and Urban Forest Management Plan just to name a few. These documents are used to provide a framework for the establishment of service and project initiatives.
The pages that follow infuse action into the City’s priorities and initiatives as we build a stronger Penticton. It reaffirms our commitment to community safety and increased partnerships. It puts into action our plans to create attainable and affordable housing. It makes a commitment to creating an accessible and vibrant community for all.
The Community Charter requires the City to adopt a FiveYear Financial Plan each year prior to the adoption of the Property Tax Bylaw. This document reinforces prior year commitments included in previous financial plans while focussing on advancing Council’s strategic priorities.
It is my pleasure to submit the 2026-2030 Draft Financial and Corporate Business Plan (the Plan) for the City of Penticton. This Plan outlines the continued commitment to building a safe, inclusive, and thriving community, reflects Council’s strategic priorities, the City’s responsibility to deliver services that meet the evolving needs of residents, businesses and visitors while maintaining the fundamental principles of fiscal responsibility.
The City is proud to have received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the 2025-2029 Plan, recognizing our efforts to meet the highest standards in financial planning, transparency, and public communication. This recognition reflects our ongoing commitment to excellence in budgeting and accountability.
Building on recent milestones, such as the successful expansion of the Penticton Vees into the Western Hockey League (WHL), the City continues to invest in infrastructure and services that support community growth and wellbeing. The Plan first aims to maintain existing service levels as the baseline, then introduces limited enhancements to address growth, Council direction, legislative requirements, and risk mitigation. For 2026, the Plan includes the proposed construction of a new firehall to improve emergency response, increased resources for the Fire Department, RCMP, Bylaw, and Clean Team to maintain welcoming public spaces and expanded support for the 100 More Homes initiative to address housing affordability and stability.
These investments were guided by the results of the 2025 Community Survey with a focus on delivering key community services while contemplating the most cost-effective use of taxpayer funds. The City strives to balance service delivery with fiscal responsibility, ensuring Penticton remains a place where people feel safe, supported, and proud to call home.
Inflationary pressures around construction costs are being felt by municipalities across BC including external factors such as tariffs and climate-related weather events. The City continues to focus on asset management to anticipate and manage these rising costs and infrastructure needs into the future. A strategy to close the infrastructure funding gap for long term resilience will need to be contemplated in future years to mitigate the financial risks of cost escalations.
Community engagement is a key component during the budget process as the City strives to build and foster a shared and transparent understanding of the City’s financial position. The City takes proactive steps to share key budget details through a variety of methods, such as Shape Your City, as well as participating in Council’s Open House to better understand the community’s priorities for Penticton. We encourage residents to review the draft Plan and share their feedback as we work together to shape the future of our city.
This Plan is a direct reflection of Council’s continued focus on ensuring Penticton is a resilient, safe, livable, and accessible place for residents, businesses, and visitors.
General Manager of Corporate Services
Angela Campbell
October 21, 2025
Bylaw Services supported the Temporary Winter Shelter Safety Plan and conducted nearly 1,300 proactive patrols in the surrounding area
Bylaw Services engaged in public safety outreach and awareness including Jail Bail, Cops for Cancer, Pups of Public Safety, Cram the Cruiser, and Positive Ticketing Campaign
Tra c related calls increased from 277 in 2024 to 347 in 2025 (as of second quarter), representing a 25-percent increase
Bylaw Services sta eld-tested new technology to improve real-time communication, data access, and response coordination
Top ve calls for Bylaw Services as of 2025 second quarter: Safe Public Spaces Bylaw, Tra c Bylaw, Good Neighbour Bylaw, and Referrals and Partnerships
Bylaw Services conducted joint patrols with South Okanagan Women in Need Society (SOWINS)
Engaged in two (2) community clean-up projects with 100 More Homes
Bylaw O cers received recerti cation training in Naloxone administration, tra c control, rst aid, and use of force
Bylaw Services has proposed an increase in seasonal o cers from 17 to 17.6 as part of a Seasonal Safety Initiative for peak summer months
Records System to support Intelligence Led Responses
Leveraging technology for improved department operations Number of bylaw services sta per year.
Bylaw Services Sta ng Levels
Creation of an Emergency Management Hub on the City website for accessible information and preparedness tolls
Conducted Emergency Operations Centre training sessions for the City of Penticton, SnPink’tn (Penticton) Indian Band, and Regional District of the Okanagan Similkameen (RDOS)
Involved in planning and hosting ve local conferences including: Fire Prevention O cers Association of BC, Wild re Resiliency and Training Summit, BC Fire Training O cers Association, First Nations Emergency Services Society, and Fire Chiefs Association of BC Annual Conference & Fire Expo
Successfully launched the Hazard Risk Vulnerability Analysis (HRVA) project to assess local hazards, risks, and vulnerabilities to guide future emergency planning
Amendments to the Fire, Life, and Safety Bylaw are in progress
Continued development of a HRVA which emphasizes a comprehensive approach to mitigation, preparedness, response, and recovery
Wild re and FireSmart Planning and Mitigation Strategies to continue leadership in wild re risk reduction and community resilience
Additional two (2) re ghter positions proposed for the 2026 budget to maintain safe sta ng levels in the re suppression division
RCMP worked with City of Penticton on Anti-Racism Bylaw
Initiation of seasonal policing preparations, speci cally to review emergency management for natural and human-caused disasters. Progress advanced through specialized policing units
RCMP continue to increase proactive patrol hours for hot spot locations
Enhanced auto theft enforcement through IMPACT (Integrated Municipal Provincial Auto Crime Team) supported Penticton RCMP to deter auto crime and raise awareness for auto theft
Combined Forces Specialized Enforcement Unit (CFSEU) a specialized provincial support unit to o er uniformed enforcement during special events and long weekends
Integrated Crisis Response Team (ICRT) responded to 617 mental health calls by the end of the second quarter. ICRT has signi cantly reduced service calls, even for clients who are actively dealing with substance use disorders
Partnerships with Public Safety Team to assess risks and plan for extra enforcement for large community events
Proactive communications resulted in 162 social media posts and 20 news releases issued up to the second quarter of 2025. RCMP has more than doubled proactive media releases since May 2024
Successful implementation of Body Worn Camera program for front-line RCMP Members
Implementation of one of two Budget 2025 Crime Reviewer positions to support front line police operations with investigative oversight, improved quality of investigations, and data scoring
Community Policing conducted fraud/scam educational presentations for the community
Revamped the Community Safety O cer Youth Liaison position with RCMP Community Policing and Foundry
Cultural Awareness Training with the SnPink'tn (Penticton) Indian Band
RCMP Budget Items
Penticton RCMP has proposed an additional dedicated Crime Intelligence Analyst Civilian position to enhance police and public safety through providing accurate, timely, intelligence to aid in enforcement and disruption of criminal activity
Community Resilience Against Hate: partnership with SOICS (South Okanagan Immigrant and Community Services)
Active collaboration on the Youth Action Table
RCMP will partner with local agencies to raise awareness for domestic violence
Community Safety Unit Modernization: continuing work to enhance support for victims and vulnerable populations
Targeted strategies for repeat o ender management
IMPACT Unit to address auto theft and related crimes
Continued collaboration with public safety team and RDOS to advance preparedness for emergency response
per year.
This priority drives our e orts to improve the quality of life for all residents through better housing solutions, accessible public spaces and safe streets, and inclusive community services. This includes projects like a ordable housing developments, improvements to public parks, and new community programs that cater to diverse needs.
Penticton cares about community and accessibility. We continue to take steps to improve access for people of all abilities throughout our public spaces.
City Council is committed to proactively planning for deliberate growth, focusing on creating an inclusive, healthy, and vibrant community. The following details highlight achievements and proposed budget items to advance Council’s Livable & Accessible priority.
City nalized the Social Housing and Infrastructure Plan (SHIP), reinforcing its commitment to inclusive and sustainable community development
Economic Development launched the “Best Move Yet” marketing campaign, as part of our resident requirement initiatives
Launched round one of engagement for the Esplanade Master Plan
For the second quarter in 2025, there were a total of 438 housing starts in the community, trending higher than our 5 year average
Continued implementation of the Social Development Framework with over 30 actions underway
Construction continues on the Power Street Childcare Centre to add 80 net new childcare spaces for Penticton
Launched the new “Slow Down” device campaign as part of the Friendly Streets program
Build Canada Homes advocacy for increased local housing supply
Development Navigator: Accelerating Livable In ll Housing to assist early design reviews to support in ll densi cation projects
Finalization of Area Plan for Okanagan Lakeshore/Esplanade
Advancing Housing A ordability with four key projects: A ordable Housing Incentive Policies, City-Owned Land for Housing, Transit-Oriented Area Plans, and Implementation of SHIP
Development of a Downtown Area Plan
Achievements
Social Development worked closely with Emergency Management and City departments to develop the Extreme Weather Response Plan
Implementation of the CommuniTREE Plan the City’s Urban Forest Management Plan
Ellis 4 Dam improvements completed successfully to meet regulatory requirements and provide safe water retention and storage for the community
Utilization of a UBCM Disaster Risk Reduction –Climate Adaptation Grant for the new Gyro Park Cooling Hub which features accessible walkway, misters which double as decorative solar lighting at night
Expansion of the City’s water bottle ll stations to provide easy access to fresh drinking water
CommuniTREE Plan Advancement: support for canopy growth and climate resilience. One (1) additional Arborist position proposed for 2026 budget to be dedicated to advancing the tree planting goals in the Plan
KVR Trail Master Plan and Green Corridor Strategy to create a comprehensive green network and integrating existing green corridors, parks, trails, and open areas
Solar Feasibility and Implementation Project to o set municipal energy costs and reduce peak demand on the City’s electrical grid
BC Transit Future Network Restructure Plan is a multi-year strategic initiative aimed at enhancing public transit service levels, accessibility, and infrastructure across Penticton
Transportation Safety and Safe Routes to School with a continued commitment to improving transportation safety and accessibility for all road users
Growing Communities Grant Program supported projects for Leir House, Lawn Bowling, Skaha Park Pickleball Courts, Baseball Fields, and Safety Village refreshment
Skaha Splash Park construction was completed, and a grand opening ceremony was held on July 16, 2025
Council approved a new Parks Bylaw to set guidelines for park uses and introduced new rules for temporary overnight sheltering
Accessibility Committee reviewed election accessibility and updated the action log to re ect ndings
Two (2) new Mobi-Mats installed at Okanagan Lake and Skaha Lake beaches complementing the existing mat at Sudbury Beach
Council endorsed a Free Parking Policy for People with Disabilities and digital accessibility was enhanced through updates to the Road Closures webpage
Work continues on development of the Community Safety and Wellbeing Plan
71 events were supported by the City’s Events department from April – June 2025
Improvements to the Community Centre starting blocks in partnership with KISU Swim Club
Sportsplex Facility roof bubble recover project completed
Cleland Theatre lighting upgrade project commenced in summer 2025
Advancement of Civic Places and Spaces Priority #2: Arenas
Skating Forward: City Operations of Downtown Ice Rink
Event Strategy Review
Continued Investment in Accessibility Enhancements and Improvements at the Penticton Public Library
Innovate & Create: Makerspace Enhancements at the Penticton Public Library
Lakawanna Park Upgrades including accessible and inclusive splash pad equipment and play features
Lions Park Master Plan in response to 2025 Community Survey which identi ed investment in parks and sports elds as a top priority
Social Development led City support of cultural and equity initiatives including commemorating Red Dress Day, Indigenous Peoples Day, and Way Art installation
City of Penticton successfully collaborated with Health Canada and the Ooknakane Friendship Centre (OFC) to initiate the transfer of a Health Canada grant agreement from the City to OFC
Social Development collaborated with the Community Foundation to identify a suitable location for a future Food Hub
Social Development sta partnered with Ooknakane Friendship Centre, Penticton + Area Overdose Prevention Society, and Penticton & Area Access Centre to implement sector-wide “Cultivating Safe Spaces Framework” training led by Naqsmist Storytellers Inc.
City of Penticton was awarded the Chairman’s Award by the BC Economic Development Association (BCEDA) Summit, hosted in Penticton, for the City’s contributions over the past three (3) years
Economic Development partnered with the Chamber of Commerce to host a Business Climate Forum
Business Climate Survey conducted from March to April 2025 to identify actions for Council’s consideration
Revival of the “Love Local” campaign to support local businesses and services
Renewal of the Protocol Agreement between the City of Penticton and the SnPink’tn (Penticton) Indian Band
Penticton Ampli ed: Strategic Communications for Resident and Employer Attraction to strengthen Penticton’s regional and national identity and showcase the city
North Gateway - Penticton Trade & Convention Centre Hotel options
As we progress in Council’s 2022 – 2026 term, their commitment to fostering a Safe & Resilient and Livable & Accessible community for the residents of Penticton remains steadfast. Strategic initiatives are designed to enhance the quality of life, ensuring that our city is not only secure and robust but also inclusive and welcoming for all. The following table outlines the proposed division initiatives that will drive these priorities forward:
Enhance and protect the safety of all residents and visitors to Penticton.
Strategic support for coordinated encampment responses - Intergovernmental Relations will play a pivotal role in ensuring alignment across jurisdictions and amplifying local priorities
Voyent Alert! Emergency Communications Integration Project
Continuity planning for critical city services to ensure uninterrupted delivery of City Yards’ services in the event of a local or community emergency
Safety and security enhancements for the RCMP Detachment
Advancement of the Civic Places and Spaces Priority #1: Fire Hall Renewals
Improvements to water service resiliency and reliability continuing multi-year initiative advancing key Utilities’ projects including: PRV replacement, UV feasibility study for the Water Treatment Plant (WTP), Lakeshore Drive and Martin Street raw water main replacement, and Ridgedale Reservoir
Advanced Waste Water Treatment Plant (AWWTP) construction and commissioning to meet current and projected demands for our growing community
Transportation Safety and Safe Routes to School supporting a continued commitment for improving safety and accessibility for all road users
Extension of existing Memorandum of Understanding (MOU) with 100 More Homes Penticton building on a proven, collaborative model that addresses homelessness
Records system to support intelligence led responses to provide enhanced data collection and meeting regulatory and legal requirements for Peace Officers
Leveraging technology for improved department operations in Bylaw Services
Advancing Community Safety Wellbeing Plan (CSWB) which represents a comprehensive, multi-year roadmap to enhance public safety, social health, and community resilience
HEART (Homeless Encampment Action Response Team) & HEARTH (Homeless Encampment Action Response Temporary Housing) for Penticton to address homelessness and complex social issues through multi-sectoral partnerships
Enhance and protect the safety of all residents and visitors to Penticton.
Continued development of an HRVA for Penticton focusing on emergency mitigation, preparation, response, and recovery
Wildfire and FireSmart planning and mitigation strategies for continued leadership in wildfire risk reduction and community resilience
Continued advancement of the RCMP 2024 – 2027 Strategic Plan focusing on CONNECTING vulnerable people with appropriate supports, IMPACTING crime trends, ADVANCING preparedness for emergencies, and DRIVING results together
Proactively plan for deliberate growth; focused on an inclusive, healthy, safe and desirable place to live.
Advancement of the Civic Places and Spaces Priority #2: Preliminary Design on Twin Pad Arena
Skating Forward: City operations of the Downtown Ice Rink
Development Navigator: accelerating livable infill housing utilizing existing resources in the Building and Permitting departments to streamline and support projects that contribute to a more livable and accessible community
Penticton Amplified: strategic communications for resident and employer attraction
Finalization of the Area Plan for Okanagan Lakeshore/Esplanade
Advancing Housing Affordability through four key projects: affordable housing incentive policies, City-owned land for housing, Transit Oriented Area plans, and implementation of the Social Housing Infrastructure Plan (SHIP)
North Gateway: Penticton Trade and Convention Centre Hotel options
Lakawanna Park upgrades focused on accessibility enhancements, inclusivity, and recreational value for residents of all ages and abilities
KVR Trail Master Plan and Green Corridor Strategy which strives to integrate existing green corridors, parks, trails, and open areas throughout the City
Solar Feasibility and Implementation Project which identifies optimal locations for solar panel installations to offset municipal energy costs
Proactively plan for deliberate growth; focused on an inclusive, healthy, safe and desirable place to live.
BC Transit Network Restructure Plan aimed at enhancing public transit service levels, accessibility, and infrastructure access across Penticton
Continued investment in accessibility enhancements and improvements for the Penticton Public Library
Innovate & Create: Makerspace enhancements with cutting edge technology
Penticton Public Library reference and resource support for the business community to support both new and existing business owners
Advocacy work to attract the federal government’s Build Canada Homes program
Renewal of the Protocol Agreement between the City of Penticton and the SnPink’tn (Penticton) Indian Band
Event Strategy Review
Development of a Downtown Area Plan including future land use, infrastructure projects, public realm enhancements, community safety, and commercial needs
CommuniTREE Plan advancement: support for canopy growth and climate resilience
Penticton is a resilient and healthy waterfront city focused on safety, livability and vibrancy. The City of Penticton will serve its residents, businesses and visitors through organizational excellence, partnerships and provision of effective and community focused services.
Intergovernmental Liaison Strategy for priority advancement focused on advocacy, coordination, relationship-building, and amplifying local priorities
Conduct the 2026 Local General Election
Expansion of the Strategic Communications Program to advance a proactive and strategic framework for the City’s communication efforts
AI integration and IT modernization to enhance operational efficiency, strengthening cybersecurity, and data-driven decision making
CommuniTREE Plan Implementation - support for Canopy Growth and Climate Resilience – seeking Council’s support for an additional Arborist position dedicated to accelerating progress to the City’s canopy targets
KVR Trail Master Plan and Green Corridor Strategy –comprehensive plan to integrate existing green corridors, parks, trails, and open areas throughout the City
Solar Feasibility and Implementation Project – continued work to identify locations for solar panel installations to o set municipal energy costs and reduce peak demand
Continued collaboration with BC Transit to realize the Network Restructure Plan for Penticton
Sta -led comprehensive review of the Community Climate Action Plan
Building on success made in prior years the City is pleased to report the following achievements to advance the CCAP:
18 Level 2 public charging stations online in 2025
4 level 3 public charging stations online in 2025
52,850 kWH delivered by public charging stations from January–July 2025
Implementation of the Regional Waste Collection Contract introducing single-packer trucks to reduce recycling contamination and trips to the land ll, reducing GHG emissions
Construction completed for the Lake to Lake (L2L) AAA Bike Route
Construction commenced on Eckhardt Avenue to connect downtown, Pen Hi and KVRE to the bike network
RFP (Request for Proposals) for construction issued for the gap of Penticton Creek path, connecting from Government Street to Forestbrook Drive (construction in 2026)
E-Mobility Pilot Program RFP issued for shared e-scooter and e-bike rentals
RFP for construction issued for Manitoba Street multi-use path
Continuation of the Free Transit Under 24 program, as part of the Building Safer Communities grant funding
Council directed sta to complete a full consultation exercise to understand the impacts of zero carbon step code changes
Operation of the Bike Valet program to promote active transportation options for events throughout Penticton
May–August 2025 the program parked over 2,200 bikes at 26 events
In the divisional business plans, there are a total of thirteen (13) significant budget increases, the financial implication of these initiatives are contained within the financial plan. The list below summarizes these requests for new operating funding. For details on these increases and how they support Council’s priorities and benefit the community and City operations, please see the corresponding department pages.
Works Two (2) additional Works Maintenance III roles to reduce current gaps for the City’s Clean Team
(net)
Our demographics shape the needs of the community and guide our policies and plans. The following is a selection of interesting statistics about the demographics of the Penticton community taken from the 2021 Census.
Population
37,000
Persons who identify as First Nations, Metis and/or Inuit and/or those who report having membership in a First Nation or Indian Band 2,420
Education
PENTICTON
1,725 km2
See
Each year, the City updates its Financial Plan and goes through a budget process to determine how much it will need to spend on an annual basis to:
Maintain current levels of service (base operating budget)
Incorporate service level enhancements or reductions
Incorporate new operating initiatives
There are ve parts to the Financial Plan and each part has at least one operating budget and capital budget.
In addition to the utilities, the City also provides the following ser vices through the General Fund:
Fund capital projects
In addition to services provided by the four utilities, residents also receive the following services through the General Fund
The City receives funding for these services and capital projects from the following sources:
Taxation
Provincial/Federal Grants
Utility User Fees
Electrical Dividend
As part of updating the Financial Plan, the City considers what funds are required to maintain or enhance these services. This may result in increases to property taxes or utility rates. The City plans for stable, ongoing tax rate increases to fund in ation, ensure sustainable services, and plan for current and future community needs. This approach provides citizens and businesses the ability to anticipate future expenditures.
BC Assessment determines the assessed value of Penticton properties based on a valuation date of July 1st of each year. Assessment notices are mailed by BC Assessment in January and contain assessed value, property classi cation and tax exemption status. In the spring, the City sets its property tax rates for each of the nine property classes and applies the applicable rate, to property assessed values, less the value of any applicable tax exemptions.
A notice from BC Assessment showing an increase in the value of a property does not equate to what the City of Penticton tax rate will be, as property assessments are only one part of what the City uses to calculate municipal property tax rates each year. When the City sets their budget for the upcoming year, it includes the amount of revenue that will be collected through property taxes. This amount is xed and does not change because of assessed value changes.
Property assessment values may go up or down but the city-wide total property taxes collected will always equal the amount budgeted for.
Property tax changes are driven by how much a property value changes relative to the average change in the community. The most important factor is not how much an assessed value has changed, but how the assessed value has changed relative to the average change for that property class in the City.
A property is currently assessed at $630,000, based on a valuation date of July 1 last year. The previous assessed value was $450,000. The property increased 40% in value, while the average increase for that property class is 30%.
Since the property increased more than the average, there likely be an increase in property taxes.
taxing agencies
TO THE AVERAGE Change for Property Class
THAN AVERAGE Change for Property Class
The City also collects taxes on behalf of other taxing authorities. These include the Regional District of Okanagan Similkameen, the Okanagan-Similkameen Regional Hospital District, BC Assessment, the Municipal Finance Authority and School District 67. Changes in overall property tax amounts may be related to increases or decreases in rates for those authorities.
In compiling the City’s Financial Plan, there are many factors that impact operating revenues and expenses and ultimately the taxation rate. For 2026, the key impacts include:
Investment in Community Safety Resources
Investment in the Vibrancy and Culture of the Community
In ationary Costs
Previously approved Council investments incorporated into 2026 include:
Vibrancy and Culture Investment
Supporting the Vees transition to a WHL team
Community Safety Investment
2 RCMP o cers (2025 budget)
1 Fire ghter (2023 budget)
2.6%
2.0% Community Safety Investment
1.7%
The Draft 2026–2030 Financial and Corporate Business Plan includes a proposed tax rate of 6.26%. The following chart shows the Estimated Monthly Increases for property taxes. The estimates are based on the average residential or commercial property.
Residents average annual increase of $144 per year, based on an average annual property assessment of $644,947 (2025)
As the City’s residential properties cover a wide range of values additional estimates have been provided for properties valued at $500k (37% of properties are valued at <=$500k) and $1M (11% of properties are valued at >=$1M).
Businesses average annual increase of $559 per year, based on an average annual property assessment of $1,429,658 (2025)
value $500k $1M
The below chart demonstrates the adopted increase for utility rates, based on the average residential or commercial property.
Tax Competitiveness 2025
Residential Taxes & Charges Comparison
Penticton continues to have one of the lowest total residential taxes and charges (comparable utilities) in the region.
Tax Multiplier Comparisons 2025
The Business Tax Multiplier (BTM) is the rate that businesses are charged in comparison to the residential rate. When setting the BTM, Council is able to shift the distribution of taxes between residential and commercial.
The following charts provide a summary of the key parts of this year’s proposed budget.
The City’s budget outlines the money that will be raised and spent within the Financial Plan timeframe. This Plan aligns with the City’s strategic priorities with the services we deliver to residents every day. It also determines what infrastructure investments will take place.
The capital budget is used for long term investments like infrastructure and facilities. Infrastructure is the term that refers to the equipment and structures the City owns which help make Penticton a safe, connected and livable community.
The capital budget is the City’s plan to purchase, build, maintain, repair and replace assets including infrastructure. Capital assets also directly and indirectly impact the City’s operating budget as funds are needed to cover day-to-day operating expenses associated with the asset.
The operating budget covers the day-to-day expenses required to deliver services to residents. These costs return year-after-year and include items like sta wages, o ce supplies and utilities.
The operating budget is the City’s plan to deliver services to the community and cover day-to-day operating costs to maintain City assets.
The following diagram illustrates the relationship between the capital and operating budgets.
of its life to continue
provide existing services.
Like many cities, Penticton is challenged to fund the increasing costs to maintain, replace and extend the life of its aging infrastructure with replacement costs continuing to rise.
The City has identi ed a potential $405M in major projects, of which $207M is projected to be funded over the next 5 years. These projects will be funded partially through grants, and DCCs and the remainder of an estimated $60.6M funded by debt nancing. Additional projects may be identi ed for debt nancing as they are prioritized and moved from unfunded to funded projects. Debt nancing is used strategically to maintain the City’s nancial strength and stability. Debt nancing will only be undertaken in compliance with the relevant sections of the Community Charter and related regulations.
Forecasted external borrowing for funded and unfunded projects over the next ve years is included in the graph below:
Asset management plays a vital role in ensuring that the City is fully optimizing its assets and amenities. The City owns approximately $1.4 billion in assets as detailed below:
Under the Community Charter legislation, 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% of the total revenues for the previous year (some exclusions apply). The City’s 2024 debt nancing ratio was 2.7%, with the additional borrowing on the funded projects, the debt nancing ratio will uctuate over the next ve years between 2.8% and 5.6%. In 2026 the City remains in a healthy position to take on additional debt to nance its capital needs.
Asset management planning allows municipalities to stretch capital and operating dollars by helping to make well-informed, evidence-based decisions. It’s about making the right infrastructure investments in the right places, at the right time to meet the required levels of service in the most cost-e ective manner for the present and future needs.
The following projects highlight some of the City's funded capital initiatives, including ongoing multi-year projects. For detailed project overviews, refer to the Capital Plan Supplemental Schedules. To review all 2026 - 2030 capital projects, consult the Capital Plan.
FA-59 Civic Places & Spaces – Fire Hall Renewals (Multi-Year Project $38.6M)
FA-124 SOEC – Jumbotron & Scoreboard (2026 $1.2M)
Transportation Network Highlights
TN-TC-03 Crosswalk Improvement Program (2026-2030 $2.8M)
TN-IR-01 Pavement Management Rehabilitation Program (2026-2030 $6.8M)
TN-TC-04 Safe Routes to School (2026-2030 $0.8M)
TN-AT-03 Sidewalk Network Improvements (2026-2030 $3.1M)
Water & Sanitary Sewer Network Highlights
SC-IR-01 Aging Sanitary Sewer Infrastructure Renewal (2026-2030 $5.9M)
WD-IR-02 Aging & Undersized Water Infrastructure Renewals (2026-2030 $8.7M)
CP-08 Community Park – McNicoll (2026-2027 $0.7M)
NBHB-06 Neighbourhood Park – McGregor (2026-2027 $0.8M)
Capital spending refers to the funds used to acquire, build, maintain, or replace City assets and amenities, such as land, buildings, and equipment. Annually, the City allocates funds to reserves to fund future capital projects, as well as actively pursuing capital grant and funding opportunities from various agencies.
UTILITY RATES & FEES: These funds support projects speci c to individual utilities for which amounts are collected on utility bills. Supported projects can include replacement and renewal activities, service expansion due to growth, and even the introduction of new facilities or services. These funds are needed to ensure the City can continue delivering services to existing ratepayers.
ELECTRIC DIVIDEND: These funds are collected as a return on investment from the City's Electrical operations and support a wide variety of general capital projects, such as renewing roads, parks and facilities infrastructure.
GRANT FUNDING & RECOVERIES: Grants come in two forms: upfront funding with follow-up reporting (e.g., Canada-Community Building Fund) or reimbursement of expenses once a project is completed. Recoveries are amounts contributed by third parties toward the total cost of a speci c project.
DEVELOPMENT COST CHARGES (DCCS): These are fees levied on projects to fund the expansion of services necessitated by growth. For instance, DCCs nance water mains in new subdivisions. Without the development, these infrastructure expansions would be unnecessary.
EQUIPMENT REPLACEMENT RESERVE: This reserve funds projects to replace existing equipment such as vehicles, machinery, and IT hardware. Annual amounts are transferred into this reserve over the life of each asset, ensuring funds are set aside for when replacement is due.
OTHER RESERVES: The City's Reserve Policy outlines various funds earmarked for speci c types of capital projects. These reserves draw from multiple sources, as detailed in the policy appendix.
EXTERNAL DEBT FINANCING: This involves borrowing funds from external sources to nance major capital projects when internal reserves are insu cient. External debt is generally used for large infrastructure projects with long lifespans, ensuring that future residents who bene t from these facilities also contribute to their cost through property taxes or user fees that service the debt.
Emergency Operations Centre. These upgrades will replace outdated and undersized infrastructure with modern, purpose-built facilities that meet today’s standards for emergency response, re ghter health and safety, and community resilience.
The project responds to priorities identi ed in the City’s Civic Places and Spaces strategy and re ects years of planning, technical analysis, and community input. It will improve emergency response times, provide safer working conditions for re ghters, and ensure the City is prepared for future emergencies.
The project will be delivered using an Integrated Project Delivery (IPD) model, which brings together architects, contractors, and City sta under a single agreement to ensure collaboration, cost certainty, and shared accountability.
The Fire Hall Renewal project aims to replace and modernize aging facilities with safer, more functional spaces that better support emergency response and the people who rely on it.
The Fire Hall Renewal plan makes e cient use of City-owned land and existing assets by repurposing the existing Fire Hall Headquarters into a satellite hall and locating the new, larger Fire Hall Headquarters on available City-owned land at the Fire Hall #2 site.
Built today, for tomorrow. The project adds approximately 22,000 sq. ft. of much needed space for Fire Services to ensure that this critical service continues to meet the needs of our community as it grows.
The total investment is estimated at $38 million with Council endorsing a grant application for up to $7 million in funding, through the Strategic Priorities Fund.
Debt servicing costs are estimated to total $3 million annually, which would require 5-to-6-percent of taxation revenues to cover the payments. Should the City be successful in its grant application, these gures should be revised accordingly.
To keep everything in good working order, we should be investing $13.6 million every year in renewal projects. Currently, we’re investing only $3.2 million per year, less than one quarter of what is needed. This shortfall means we risk delaying projects until assets fail, which often leads to higher repair costs and service interruptions.
The price of construction and materials has increased sharply in recent years. For example, a re truck that cost $600,000 fteen years ago now costs over $2 million to replace. Delaying investment in capital reserves will increase the future funding gap, leading to higher costs for taxpayers
Penticton owns and maintains approx. $1.4 billion worth of infrastructure, including roads, buildings, parks, vehicles, and utilities. Infrastructure is the foundation of daily life — safe drinking water, re halls, arenas, roads, playgrounds and more.
The General Fund, which covers facilities, transportation, parks, and eet, makes up $598 million of that total. These assets are the backbone of our community. Many of our facilities were built in the 1960s and ’70s and are now reaching the end of their lifespan.
Without planned replacement and renewal, these services decline, and costs to repair or replace them rise sharply.
City of Penticton
Infrastructure Investment supports the City of Penticton’s strategic priority objectives
The City of Penticton is a connected, resilient and healthy waterfront city focused on safety, livability and vibrancy. VISION
The City of Penticton will proactively plan for deliberate growth, focusing on creating an inclusive, healthy, and vibrant community. LIVEABLE & ACCESSIBLE
At the June 24, 2025 Council meeting, Sta provided the results of the SRNA. This assessment included the top ranked areas for investment in community amenities including trails and pathways, ice arenas/dry oor facilities, large span multi-sport facilities, indoor eld facilities and grass sports elds. Some of these items are associated with rehabilitation or replacement of existing assets, while others are related to new requests from the community. Funding of $1M was allocated from the Growing Communities Funds, however the required investments into these areas would require signi cant future funds.
The results of the 2025 Community Survey were also presented at the June 24, 2025 Council meeting. Similar to the results for the SRNA, the public prioritized the investment into parks and sports elds, along with several other capital related areas, in the top 5, see results below.
Office of the City Manager
Mayor & Council
Office of the City Manager
Intergovernmental Relations
Corporate Services
Finance
Procurement & Inventory
Communications & Public Engagement
Legislative Services
Information Technology & Digital Transformation
Human Resources & Safety
Municipal RCMP
Community Services
Facilities
Recreation, Arts & Culture
Penticton Museum & Archives
Land Administration
Penticton Public Library
Infrastructure
Energy & Environment (Electric Utility, Climate Action & Solid Waste)
Engineering
Public Works (Roads, Parks & Fleet)
Utilities (Distribution, Collection, Water & Wastewater)
Development Services
Planning & Licensing
Building & Permitting
Housing & Policy Initiatives
Development Engineering
Economic Development
Public Safety & Partnerships
Bylaw Services
Social Development
Penticton Fire Department
Fire Chief’s Office
Suppression
Prevention
Training
Emergency Management
RCMP
In order to support City Council and the needs of the community, the City is led by the City Manager with support from the City’s general managers, supervisors and managers, and union staff. The majority of City services are provided by five major divisions: Corporate Services, Community Services, Infrastructure, Development Services, and Public Safety & Partnerships, each with a number of departments. Stand alone services include Fire Services, contracted policing services through the RCMP, arms-length services offered through the Penticton Public Library, and the operations of the South Okanagan Events Centre provided by OVG 360 (Oak View Group).
Colours align with sections within this Business Plan
The City has a diverse workforce with unique challenges and strives to provide economical and effective services using public resources the best way possible with each department committed to providing services and supporting the operations of the City. While the City works hard to maintain its existing staffing levels, increasing workload, sports and cultural events, as well as a growth in our community have necessitated proposed increases in a number of departments.
The full-time equivalent staffing levels and proposed increases from 2025 to 2026 are reflected below:
*Positions not included in municipal staffing totals.
All new positions and personnel changes are required to be supported by a business case. The business case includes the problem purpose and opportunity, deliverables, cost/benefit analysis, risk assessment and alternative solutions. Each request must support either Council’s or operational priorities ensuring divisions are making changes in services to address the community needs.
The City of Penticton is responsible for funding 90-percent of the RCMP contract to provide policing services for residents.
To meet service level requirements due to weather impacts, third party service requests, sports and cultural events or other community needs, City divisions may choose to utilize existing seasonal staff or contract services out depending on staff/contractor availability as well as budget considerations.
Full-time equivalent (FTE) is the industry standard to reflect staffing levels for local government. One FTE is equivalent to one staff working full-time.
DIVISION OVERVIEW
The City Manager leads this division, which provides a range of services that require close cooperation with internal and external customers to facilitate initiatives.
MAYOR & COUNCIL
OFFICE OF THE CITY MANAGER
The City of Penticton Council is the locally elected governing body responsible for guiding the City’s economic, social, and environmental well-being. Accountable to residents, Council set strategic direction and provides leadership to ensure the City delivers high-quality services. Working closely with the City Manager, Council ensures that community needs are met while promoting long-term sustainability and growth.
The City Manager is appointed by and is directly accountable to Mayor and Council. As Council’s only employee, the City Manager is responsible for the day-to-day operations and administration of the City and oversight of its departments in accordance with the objectives, policies, and plans approved by Council. The City Manager:
Provides strategic support for Council Priorities: leads Council’s priority setting process, orientation, and education opportunities. This office provides updates to Council and the community on the progress of Council’s strategic priorities through quarterly reporting, which includes statistics, data, and trends both tied to Council’s Safe & Resilient and Livable & Accessible priorities.
Oversees Council logistics and event support: the City Manager’s office provides administrative support to the Mayor and Council, including serving as first point of contact for community members, scheduling, correspondence management, and project coordination.
Mayor and Council are asked to attend over one hundred events annually, ranging from speaking engagements to photo opportunities, and relationship building with event organizers and participants. The City Manager’s office leads logistical support for Council and Communications with event organizers, ensuring collaboration and coordination for Council’s participation in community activations each year.
Ensures City departments provide outstanding and efficient service: the City Manager’s office manages the City Budget, supervises City personnel and departments, ensures the effective delivery of public services, and acts as a liaison between Council and the public.
Leads excellence in organizational culture: the City Manager’s office ensures that all departments are committed to open communication, integrity, and professionalism to build public trust through excellence in all that we do as an organization. The City of Penticton embraces modernization, innovation, and adaptability to meet the evolving needs of our community, fostering a culture of engagement and purpose.
Organizational Cultural Values are built into performance management plans for employees, ensuring the high expectations of the community are met annually.
Intergovernmental Relations (IGR) is responsible for advancing the City of Penticton’s interests in Indigenous relations and advocacy through strategic engagement with provincial, federal, Indigenous, and regional governments. This focus area ensures that municipal priorities related to intergovernmental advocacy, funding negotiations, and policy development are effectively represented.
The City is dedicated to a corporate culture that better understands the cultural sensitivities of the SnPink’tn (Penticton) Indian Band, strengthening our relationship through a foundation of trust and respect. IGR is the primary contact for government-to-government relationships including the SnPink’tn (Penticton) Indian Band and the province.
The Office of the City Manager division consists of 3 FTE.
INTERGOVERNMENTAL RELATIONS
Intergovernmental Liaison Strategy for Priority Advancement
Intergovernmental Relations (IGR) component of the City Manager’s office is responsible for advancing the City of Penticton’s interests in Indigenous relations and advocacy through strategic engagement with provincial, federal, regional, and Indigenous governments. This role supports the City Manager and Senior Leadership team to ensure that Council's priorities related to intergovernmental advocacy, funding negotiations, and policy development are effectively represented.
Key highlights:
Advocacy and Coordination: conduct a gap analysis of existing processes to identify new opportunities and risks for City projects and strategic priorities
Relationship-Building: exploring ways for other levels of government and Indigenous governments to collaborate with the City of Penticton on partnerships, new program development, infrastructure investments, and emerging initiatives
Amplifying Local Priorities: building policy synergies with other local governments to advocate on key issues facing local and Indigenous governments
Priority: City Mission, Vision & Values
Estimated Completion: Ongoing initiative
INTERGOVERNMENTAL RELATIONS
Strategic Support for Coordinated Encampment Responses
As part of the City’s advancement of the HEART and HEARTH program, IGR will play a pivotal role in ensuring alignment across jurisdictions and magnifying local priorities. IGR will function as a strategic conduit between Mayor and Council and other levels of government, fostering collaboration with Indigenous governments and raising awareness of Penticton’s homelessness-related challenges at the provincial and federal levels.
Through advocacy, coordination, and relationship-building, IGR will help secure policy support and the resources necessary to advance a compassionate and effective response to encampments and homelessness.
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
In alignment with recommendations from the City’s Social Housing and Infrastructure Plan (SHIP), this initiative identifies City-owned land to support a housing pilot-project aimed at increasing access to affordable and attainable housing. The project focus on advocacy to the federal Build Canada Homes (BCH) program, which reintroduces the federal government as a direct developer of housing.
This initiative advocates for increased local housing supply, reduction of development barriers, and alignment between national housing efforts to build faster, smarter, and more sustainably with the City of Penticton’s housing goals.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
INTERGOVERNMENTAL RELATIONS
Renewal of the Protocol Agreement between the City of Penticton and SnPink’tn (Penticton) Indian Band
This initiative supports the renewal of the 2004 Protocol Agreement between the City of Penticton and SnPink’tn (Penticton) Indian Band, with a renewed focus in 2026 on deepening government-to-government relations and advancing shared priorities.
Key areas of emphasis include Indigenous place naming, alignment with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the Truth and Reconciliation Commission (TRC) Calls to Action, cultural representation, and heritage preservation.
The renewed agreement will serve as a foundation for respectful collaboration, policy alignment, and community-building between the City and SnPink’tn Indian Band. .
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
DIVISION OVERVIEW
GENERAL MANAGER’S OFFICE
The Corporate Services Division works as a strategic partner with departments throughout the City to ensure effective delivery of services and programs by providing financial, human resources, information technology, legislative, procurement and communication services. We are responsible for the overall financial administration of the City and collection of all City revenues.
The General Manager is also the City’s Chief Financial Officer and the Chief Risk Officer responsible for administering the risk management and insurance program.
The Finance department offers accounting, budgeting, financial analysis, and revenue and collections services for the City. Finance staff provide transactional services, financial analysis, and relevant reporting to both internal and external users to support decision-making. Additionally, controls are maintained to safeguard the City’s financial resources. The Finance department collaborates with all City departments to develop a five-year financial plan and ensures compliance with the plan's spending guidelines. Finance also oversees the City’s grant program and funding agreements. Service fees and taxes are collected and managed within this department, including the City’s electricity, water, and sewer charges and property taxes.
PROCUREMENT & INVENTORY
COMMUNICATIONS & PUBLIC ENGAGEMENT
The Procurement and Inventory department provides centralized procurement services for the acquisition of goods and services. The City’s Procurement Policy, legislation, and trade agreements establish the overall direction and general principles that the City follows in the procurement of goods and services. The established fair and transparent competitive process allows all suppliers an equal opportunity to do business with the City of Penticton. This department manages the City’s inventory through a consistent and effective service delivery model, and ensures the appropriate disposal of City assets when they reach their end-of-life cycle.
The Communications and Public Engagement department provides strategic communications and engagement services that are essential to achieving the City’s business objectives, building the City’s reputation with many audiences, and connecting work to the values and concerns of the community and Council priorities. This department is responsible for ensuring the City communicates with facts and clarity, acts with empathy, and provides truthful, unbiased, and reliable information in a timely manner across all our channels.
LEGISLATIVE SERVICES
INFORMATION TECHNOLOGY & DIGITAL TRANSFORMATION
The Legislative Services department carries out a wide variety of statutory responsibilities and ensures City decision-making processes maintain transparency, accountability, integrity, and accessibility. Managing statutory notification processes, prepare, maintain and provide access to records of City business, including Council agendas, minutes, bylaws, and policies. Responsible for the conduct of local government elections.
The Information Technology and Digital Transformation department is responsible for providing technical support to all City departments. This department helps maintain and manage complex computer systems, networks, and software programs, which are essential for the City’s day-to-day operations. The department ensures that City data and information are protected from security threats, in compliance with various laws and regulations. The GIS department is responsible for managing and analyzing spatial data to support various functions within the municipality through specialized maps and apps. GIS is also critical to the effectiveness of the City’s emergency operation centre.
The Human Resources and Safety department manages corporate programs related to employee and labour relations, recruitment, compensation, performance management, policy compliance, employee engagement, safety and well-being, training, and benefits administration. The HR and Safety department supports the City’s people resources and organizational objectives, facilitates training, and ensures compliance with legal regulations and industry standards, oversees and negotiates the renewal of four collective agreements, and manages relationships with three union organizations representing City staff.
Rounding out this division are the Municipal RCMP staff, who provide an integral service to the RCMP Members and further support overall community safety. Municipal staff support policing operations through electronic file management and disclosure, victim services program operation, exhibit management, crime analysis, digital forensics, community policing, custodial guards and restorative justice programs. Municipal RCMP staff work under the direction of the Penticton RCMP. Costs for the Municipal RCMP staff are included in the RCMP department budget.
The Corporate Services division consists of 81 FTE.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Corporate Services division:
GENERAL MANAGER’S OFFICE
City Yards Continuity Planning – Emergency Operations Readiness
Building on the foundational work completed to-date through the City’s Business Continuity Plans, this initiative will be led by the General Manager’s Office and guided by the Business Continuity Steering Committee. The focus for 2026 is to develop and implement updated processes that ensure the uninterrupted delivery of City Yards operational services in the event of a local or community emergency.
Key objectives and priorities include:
Risk Assessment and Scenario Planning: identifying vulnerabilities specific to City Yards operations and developing response protocols for various emergency services
Continuity Process Development: establishing clear procedures for service recovery, staff safety, and operational coordination during disruptions
Cross-Departmental Coordination: engaging key departments to align recovery priorities and resource planning
Training and Awareness: delivering targeted training and tabletop exercises to ensure staff readiness and familiarity with continuity protocols
Integration with City-Wide Plans: alignment with continuity strategies and broader municipal emergency response frameworks
Priority: Safe & Resilient
Estimated Completion: Fall 2026
COMMUNICATIONS & ENGAGEMENT
Expansion of Strategic Communications Program
This is a continuing multi-year initiative designed to evolve City of Penticton’s communication efforts from a reactive, tactical model to a proactive, strategic framework. Key components include:
Strategic Shift: transitioning from strictly tactical communications and marketing activities to a focus on strategic planning and delivery
Citizen Sentiment Monitoring: establishing a process to monitor and collect citizen data and sentiment, which includes Calls for Service, media coverage, social media activity, engagement platform analytics, and research and survey data
Corporate Communications Framework: developing a proactive communications strategy for the organization
Organizational Alignment: reviewing the corporate communications function and structure to better support organizational goals and Council Priorities
Priority: City Vision, Mission and Culture
Estimated Completion: Ongoing initiative
Voyent Alert! - Emergency Communications & Alert System Integration
In partnership with the City’s Emergency Management Program, the Communications and Engagement department will promote the Voyent Alert! Emergency notification system to ensure timely, accurate, and location-specific emergency notifications for improved community safety and municipal operations.
Project highlights:
Increase Awareness: expanded communications campaign to increase citizen and employee enrollment in the recently launched emergency notification system
Expanded System Integration and Support: Voyent Alert!: ensure employee enrollment to increase notifications and organizational training and operational readiness across municipal departments
Emergency Communications Planning: integration of the Voyent Alert! Program with existing emergency response plans
Regional Coordination: identifying opportunities for increased collaboration between local governments, emergency responders and Indigenous partners
Training and Support
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
LEGISLATIVE SERVICES
Conduct the 2026 General Local Election
In accordance with the Local Government Act, the general local election will be held on October 17, 2026. Residents will have an opportunity to vote for a mayor and six (6) members of Council. Staff will ensure the election is well planned and conducted in a transparent manner to ensure the community has confidence in the outcome of the election results.
Priority: Vision, Mission & Culture
Estimated Completion: Fall 2026
This initiative advances the City’s digital transformation strategy by integrating artificial intelligence (AI) tools and modernizing IT infrastructure. Project goals include enhancing operational efficiency, strengthening cybersecurity, and improving service delivery through automation and data-driven decision-making.
Priority: Vision, Mission & Culture
Estimated Completion: Ongoing initiative
The Community Services division, led by the General Manager, takes a strategic approach to support all facets of community health and safety. Our work is focused on activities and actions that enable citizens to have a high quality of life. Our Facilities department ensures City-owned buildings operate at optimum efficiency for service and program delivery. The Recreation, Arts and Culture department welcomes visitors to our many recreation facilities and parks, where we deliver a wide range of recreation programs and services for people of all ages. Rounding out this division is Land Administration which is responsible for over 500 City-owned properties as well as facilitating land-related agreements and providing legal research title and company searches for all City departments.
The Facilities department is responsible for maintaining approximately 680,000 square feet of City-owned buildings, comprised of public use facilities, residential homes, and office complexes. As outlined in the Civic Places and Spaces Asset and Amenity Management Plan, these assets are aging at an unsustainable rate and require significant investment or replacement in the coming years. The department encompasses a broad spectrum of services and competencies required to assure the built environment performs the functions for which the facilities were designed and constructed. The Facilities department is tasked with the day-to-day activities necessary to maintain buildings (including systems and equipment) so occupants and members of the public can utilize the facilities as they were intended.
The Recreation, Arts and Culture department promotes and contributes to a healthy community and enhances the quality of life for Penticton residents and visitors through planning, management, and delivery of recreation, aquatics, events, and festivals as well as active living opportunities. This department partners with volunteers, community members, and private sector providers to support recreation and wellness opportunities in our city.
Penticton Museum and Archives provides exhibits, displays, and programs that interpret and showcase the unique history of Penticton and the surrounding area. Temporary exhibits bring a wide variety of topics to the Museum, while permanent exhibits tell the story of Penticton from its earliest days as an Indigenous village to the present day. The Museum also collects, catalogues, and stores approximately 20,000 unique artifacts that bear witness to our collective past. The Archives is also a repository for documents, records, and the administrative histories of community groups and organizations that have defined and shaped the community. It is a valuable source of engineering and land use maps and planning documents frequently referenced by local companies, individuals, and other City departments.
The Land Administration department is responsible for more than 500 City-owned properties. The department handles all land-related transactions including purchases and sales, regulatory land-use, and various types of contractual agreements while ensuring that the legal requirements of the Community Charter are met. The Land Administration department prepares and manages agreements for residential tenancies, leases and licenses to use, beach vendors, concessions, and food trucks operating under the City’s Mobile Vending program. This department is also responsible for preparing and registering Right of Way agreements in the Land Title Office, Net Metering agreements for solar energy, Crown Leases/License of Occupation, and legal research, as well as title and company searches for all City departments.
In 2026, the Community Services division is proposing an increase in FTE from 55 to 56 staff to support expanded operational demands across City facilities. An additional Facilities Maintenance I position is proposed to meet service requirements tied to increased usage at the Community Centre and the inclusion of new assets such as the Downtown Rink, Power Street Childcare Centre and Kings Park Washrooms / Change Rooms. The additional position will improve facility cleanliness, ensure professional standards compliance, provide enhanced scheduling flexibility, and support expanded hours and assets.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Community Services Division services:
MUSEUM & ARCHIVES
Archival Visits and Requests
LAND ADMINISTRATION
GENERAL MANAGER’S OFFICE
Advancement of the Civic Places and Spaces Priority #1: Fire Hall Renewals
Work continues to realize the new fire hall headquarters at Fire Hall #2 site on Dawson Avenue and a renovation to the existing fire hall headquarters at Fire Hall #1 to serve as a satellite hall with the Emergency Operations Centre.
The new Fire Hall Headquarters will be delivered through an Integrated Project Delivery (IPD) method. Work planned for 2026 includes assembly of the IPD team and completing the validation report for Council approval. Construction will be set to commence shortly after approval of the validation report.
This is a multi-year continuing project.
See page 45 for more details and Capital Plan on page 279.
Priority: Safe & Resilient
Estimated Completion: 2028
GENERAL MANAGER’S OFFICE
Advancement of the Civic Places and Spaces Priority #2: Arenas
Work in 2026 will continue to advance the 2021 Asset and Amenity Management Plan which identified aging infrastructure at McLaren and Memorial Arenas as a long-term risk. The twin arena concept aligns with Council’s Livable and Accessible priority and supports community recreation, accessibility, and operational efficiency.
The preliminary design work will be undertaken for a twin arena concept focusing on:
Site analysis and feasibility
Conceptual design
Public engagement
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
FACILITIES
Safety and Security Enhancements for the RCMP Detachment
Continuing from improvements made in 2025, the RCMP Detachment will receive security enhancements with improvements to reception, parking, and processing areas.
Priority: Safe & Resilient
Estimated Completion: Fall 2026
In support of Council’s Livable and Accessible priority, the City of Penticton will assume full operational responsibility for the downtown ice rink, previously managed by Activate Penticton, a local non-profit. This transition ensures long-term sustainability of the facility while enhancing public access to inclusive, barrier-free recreation. The initiative will formalize City oversight of programming, special events, and integrate the rink into broader civic recreation planning.
By embedding the rink within municipal operations, the City strengthens its commitment to safe, equitable, and community-driven public spaces that foster wellness and seasonal engagement downtown.
Priority: Livable & Accessible
Estimated Completion: Spring 2026
Event Strategy Review
In response to an evolving event landscape along with changing tourism and economic dynamics in our community, the City of Penticton will undertake an Event Strategy Review. The review will include a current state assessment, engagement and consultation with community partners, and an analysis of available data. Results of the review will inform future planning and decision-making on how the City should look to invest in events that support our local economy and enhance community vibrancy.
Priority: Livable & Accessible
Estimated Completion: December 2026
City Operations of Downtown Rink
An additional Facilities Maintenance I position is proposed to meet service requirements tied to increased usage at the Community Centre and the inclusion of new assets such as the Downtown Rink, Power St Childcare Centre and Kings Park Washroom / Change Rooms. $60,000
By embedding the rink within municipal operations, the City strengthens its commitment to safe, equitable, and community-driven public spaces that foster wellness and seasonal engagement downtown. $47,000
DIVISION OVERVIEW
The Penticton Public Library provides free library services to residents of the City of Penticton, including but not limited to physical and digital collections for loan, literacybased programing for all ages, research advisory services, public access computers and study space, and a delivery service for our homebound residents. Day-to-day operations are led by the Chief Librarian with the strategic goals and priorities being governed by a Board which consists of a City Councillor and eight-to-ten citizens. The Library’s collection of materials contains more than 150,000 items in print, digital, and downloadable content. Provision of programming and services for the very young to the young-at-heart including baby and toddler story time, LEGO club, Teen Summer Takeover Challenges, After Dark Book Club, and the Ultimate Book Nerd annual reading challenge. We also proctor exams, offer reference services for research, and participate in several province wide initiatives including the inter-library loan program.
The Penticton Library has 14.8 FTE.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Penticton Public Library’s services:
PENTICTON LIBRARY
Continued Investment in Accessibility Enhancements and Improvements
Utilizing the Provincial Library’s Enhancement grant, the Library Board has approved a multi-year plan for improvements to the library to support all patrons to enjoy and access the Library.
This work will improve the accessibility of the Library’s collection, replace aging stacks, and enhance the comfort and enjoyment of the Library for all library users in our community.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
PENTICTON LIBRARY
Innovate & Create: Makerspace Enhancements
Since its launch in 2024, the Penticton Library Makerspace has empowered patrons to transform artwork into tangible creations using sublimation printing and heat press technology. Building on this success, the Makerspace will introduce UV printing capabilities through the eufyMake E1 desktop printer, a consumer-friendly innovation that unlocks new creative possibilities.
Highlights Include:
Enhance Makerspace Offerings: with cutting-edge technology
Increase Patron Engagement: through skill-based workshops tailored to beginner, intermediate, and advanced users
Position the Library as a Leader: in accessible, community-driven innovation
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
PENTICTON LIBRARY
Reference and Resource Support for the Business Community
The Penticton Public Library is expanding its role as a community hub by offering tailored informational resources to support both new and existing business owners.
Utilizing existing staffing resources, the Library will deliver curated collections that help patrons explore business development strategies, financial planning, market research, and regulatory requirements. This initiative is designed to foster local innovation, support economic resilience, and promote inclusive access to business knowledge.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
DIVISION OVERVIEW
The Infrastructure division, led by the General Manager, is responsible for overseeing many of the City’s operations that enable our residents to go about their daily lives. Our division is responsible for planning, designing, constructing, operating, and maintaining City infrastructure assets including the electrical distribution system, roads, bridges, parks, beaches, water treatment and distribution networks, and sewer collection and treatment systems. We also collect garbage and recycling, set utility rates, and manage the City’s contract with BC Transit.
PUBLIC WORKS
UTILITIES
The Public Works department includes the Roads Branch, Parks Branch, and the Fleet Branch. Public Works staff manage the roads, sidewalks, lanes, bridges, transit, compost site, and sign maintenance in our community, as well as the parks and cemeteries. To help support these services, the department also manages the City’s fleet of vehicles, including RCMP.
The Utilities department includes the Distribution and Collections Branch, the Water Treatment Plant and the Advanced Waste Water Treatment Plant. Utilities staff help keep the community safe by providing clean drinking water, a reliable sanitary sewer system, and storm water drainage system. This department also provides irrigation water to the agricultural areas and operates and maintains City-owned dams.
ENERGY & ENVIRONMENT
The Energy and Environment department includes the Electric Utility and the Environment Branch. The City of Penticton owns and operates the Electric Utility, providing service to residential, commercial, and industrial customers. Electric Utility staff are responsible for overseeing operations, maintenance, and ongoing improvements of the electrical distribution system. The department also manages electrical meters, traffic signals, and street lighting. The Environment Branch is responsible for sustainability initiatives such as the Community Climate Action Plan and Corporate Energy and Emissions Plan, as well as solid waste and recycling collection and outreach.
The Engineering department is responsible for planning, designing, and executing construction contracts for any planned upgrades, expansions, or changes to the City’s transportation network and underground utility systems. If there is an event or construction related road closure within Penticton, the Engineering department is involved in the traffic management plan and the issuance of a Road Closure Permit. ENGINEERING
For 2026, the Infrastructure division is proposing an increase in FTE from 126 to 130 staff.
The Parks department is seeking one (1) additional Arborist position to fully meet the service levels set out in the Urban Forest Management Plan (UFMP) – CommuniTREE Plan, specifically to achieve a Green Future. The Arborist role would be responsible to ensure compliance with the proposed Tree Protection Bylaw on public and private lands, assess tree health, manage risks, and support long-term urban forestry health.
The Energy and Environment department is seeking support for an Electrical Engineer position. This position is required to support compliance with the Engineering and Geoscientists of BC (EGBC) Permit to Practice regulations as well as the Professional Practice Management Plan (PPMP) which includes quality management, peer reviews of engineering documentation, and setting industry protocols.
The Public Works department is seeking Council’s support for two (2) Works Maintenance III roles from seasonal to full-time to reduce current gaps for the City’s Clean Team. The Clean Team works with Bylaw Services to maintain City public spaces to the expected standard of cleanliness. The increase in staffing resources will allow the Clean Team to fully support Public Works with regular maintenance tasks including: transit stop and garbage can cleaning; power washing sidewalks, walkways and bridges; and general support to Roads and Drainage during the spring/summer event season.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Infrastructure division.
Crack Sealing (Lineal Metres)* *Interim
Asphalt Replaced (Metres
Transportation OCP Target: KMs of Separated Bike Lanes, Trails, and Multi-Use Pathways
**Interim operational impact due to Penticton PRV Project.
WATER TREATMENT PLANT (WTP)
WTP Treated Water Turbidity Measurements. Regulation to always be under 0.3 NTUs
WTP Treated Water Turbidity Measurements. Regulation to always be under 0.1 NTUs
WTP Water Quality Monitoring and Regulatory Compliance. Percentage of total samples meeting compliance with regulations
Volume of Raw Irrigation Water (Chemical-Free): Cost Effective Service Deliver to Growers
of Non-Compliances Per Year for AWWTP
Tonnes N and % of Nitrogen (N) Removed Through AWWTP Processes
Tonnes of P and % Removal of Phosphorus (P) Removed Through AWWTP Processes
Volume Reclaimed* for Golf Course/Sports Field Watering
* Reduces peak demand for irrigation water customers. Extends life of current distribution and treatment infrastructure
ENERGY & ENVIRONMENT
Delivered by Public EV Charging Stations
KWH Delivered by Fleet EV Charging Stations
Number of Charging Sessions Delivered by Public EV Charging Stations
(System Average Interruption Frequency Index)
PUBLIC WORKS - PARKS
CommuniTREE Plan Implementation – Support for Canopy Growth and Climate Resilience
Building on foundational work completed in 2024 and 2025, this initiative supports the long-term implementation of Penticton’s Urban Forest Management Plan (UFMP): CommuniTREE Plan. Led by the Parks department, the project aims to increase the City’s urban forest canopy by 18% by 2045 and 25% by 2085, contributing to climate resilience, biodiversity, and community well-being.
For 2026, the department is seeking an additional Arborist position dedicated to accelerating the progress towards the City’s canopy targets and climate resilience goals.
Highlights:
Expansion of tree planting programs in priority neighbourhoods
Integration of canopy targets into development and infrastructure planning
Community engagement and stewardship programs to support tree care and education
Monitoring and reporting framework to track canopy growth and health
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
Continuing multi-year project being led by the Parks department, this initiative enters its construction phase in fall 2025 following a comprehensive community engagement program completed in 2024/2025. The project focuses on revitalizing public park spaces to enhance accessibility, inclusivity, and recreational value for residents of all ages and abilities, while supporting the future growth in the area.
Project Highlights:
Accessible and Inclusive Water Play Area: the redesigned water play plaza will provide year-round play opportunities, featuring a modern, sensory-friendly splash pad designed for a wide range of ages and mobility needs
Playground Equipment Replacement: the project will involve removal of aging infrastructure and installation of new, CSA-compliant play structures that support physical development and inclusive play. The new playground will include a large tree structure in the central play area that utilizes vertical play, varied play options, and a dedicated ramp to welcome all abilities of play. Additionally, it also features an expanded play area, which features a fitness zone to accommodate older children
Parks Amenity Upgrades: the new park will feature cast-in-place concrete, rubber surfacing, and engineered wood-fibre to enhance accessibility, while protecting existing trees. Upgrades will also include improved seating, pathways, and signage to ensure barrier-free access and comfort for all users. Benches, tables, and other park amenities will be strategically placed for caregivers and visitors to comfortably watch children play
Safety Enhancements: playground entries will be redesigned for improved visibility and safer community connections and access
Priority: Livable & Accessible
Estimated Completion: Spring 2026
KVR Trail Master Plan and Green Corridor Strategy
This is a continuing multi-year initiative. Master Plan work and public engagement began in 2025. Goals of the project include creating a comprehensive green network by integrating existing green corridors, parks, trails, and open areas throughout the City. The strategy will also:
Identify key improvements for trail infrastructure and access
Explore ideas for wayfinding, amenities, and safety
Highlight opportunities for community events, storytelling, and heritage
Consider how the trail connects across neighborhoods, nature, and landmarks
Provide an action plan for future investment and stewardship
The KVR action plan will provide a clear framework for development and implementation as well as prioritizing projects and improvements in alignment with community priorities.
Priority: Livable & Accessible
Estimated Completion: Fall 2026
Improvements to Water Service Resiliency and Reliability
Penticton’s water supply and treatment services are committed to long-term strategies to improve water service resiliency and accommodate community growth.
Specific projects for 2026 include:
Pressure Reducing Valve (PRV) Replacement – this project is essential to provide consistent pressure for the City’s water system. A new high capacity PRV will be built at the Duncan Avenue Reservoir with the overall goal of reducing unplanned service interruptions, increasing flow capacity and improved customer satisfaction with water pressure and reliability. This is an on-going multi-year initiative
UV Feasibility Study for the Water Treatment Plant (WTP) – for 2026 UV technology options will be assessed for integration within existing infrastructure at the WTP. UV disinfection has many benefits including expanded lifecycle of existing infrastructure, increases to plant output, and is a supplemental barrier to improve water quality and meet evolving regulatory standards. This is an on-going multi-year initiative
Lakeshore Drive and Martin Street Water Main Replacement – this project addresses recurring failures and capacity limitations on the existing intake system, which is critical for supplying untreated water to the WTP and for irrigation purposes. Design work for the project was completed in 2025 with construction scheduled to begin in 2026
Ridgedale Reservoir – Upgrades to the Ridgedale Avenue Booster Station and Reservoir will play a critical role in maintaining consistent water pressure and supply for residential and commercial users. The project strengthens system reliability during peak demand and emergency events. Additionally, the project supports the City’s proactive asset management goals
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
Advanced Waste Water Treatment Plant (AWWTP) Construction and Commissioning
The City of Penticton continues its multi-year investment in the AWWTP to ensure long-term reliability, safety, and environmental performance of this critical infrastructure.
Originally launched in 2023, the project is being delivered through a collaborative governance model that includes involvement with the SnPink’tn (Penticton) Indian Band and the Province of British Columbia.
In 2026, the project will enter a key phase of construction and commissioning, with several major components being installed or restored to enhance treatment capacity and operational resilience.
The AWWTP is essential to protecting public health and supporting community growth. These upgrades will:
Extend the life of aging infrastructure
Improve treatment performance and regulatory compliance
Reduce the risk of service disruptions and environmental impacts
Priority: Safe & Resilient
Estimated Completion: Fall 2026
ENERGY & ENVIRONMENT – SUSTAINABILITY
Solar Feasibility and Implementation Project
Expanding on work completed in 2025, the City will continue conducting feasibility studies to identify optimal locations for solar panel installations. These installations aim to offset municipal energy costs and reduce peak demand on the City’s electric grid, supporting long-term sustainability and infrastructure resilience.
Specific project deliverables for 2026 include:
Community Engagement: launch targeted outreach to residents and key partners to gather input on solar priorities, educate on benefits, and build public support for clean energy investments
Joint Partnership Exploration: assess opportunities for collaboration with other local and Indigenous governments to co-invest in solar infrastructure and shared benefits
Site Identification and Technical Assessments: conduct engineering and environmental reviews of candidate sites, including rooftops and municipal lands
Integration Planning: align solar deployment with existing infrastructure upgrades and asset management plans to maximize cost-efficiency and operational impact
Priority: Livable & Accessible
Estimated Completion: Ongoing Initiative
$(5,215,222) $(6,985,330) $(1,770,108)
Public Works
Staffing Resources to Meet Service Levels
Two (2) Works Maintenance III roles from seasonal to full-time to reduce current gaps for the City’s Clean Team.
Parks Staffing Resources to Meet Services Levels
Staffing Resources to Meet
Additional operating budget is proposed to meet the green canopy goals of the CommuniTREE Plan as well as one (1) additional dedicated additional arborist position to lead recommendations of the CommuniTREE - Urban Forest Management Plan (UFMP).
One (1) Electrical Engineer position to support compliance with the Engineering and Geoscientists of BC (EGBC) Permit to Practice regulations as well as the Professional Practice Management Plan (PPMP).
$108,000
Development Services serves the community by supporting positive community growth. The Economic Development department collaborates closely with businesses and key City partners to support economic growth, sports, and events. Housing and Policy Initiatives supports implementing tools at the local level to encourage housing development and affordability to meet identified housing needs. We work with the public, business and development community, and governmental and not-for profit organizations, to guide growth according to the City’s Official Community Plan (OCP).
Planning and Licensing manages land use policy and regulations with the goal of achieving a livable city with a high quality of life for all residents. This department is often the first point of contact for development in Penticton, and we ensure all development aligns with the City bylaws and policies, including the Official Community Plan and Zoning Bylaw. Planning and Licensing also oversees the City’s business, liquor, and cannabis licensing programs.
Building and Permitting issues permits to ensure that construction conforms to local zoning regulations and the BC Building Code minimum requirements. This department interacts regularly with residents, local businesses, and other key partners, providing information and education on how to meet City and provincial regulations, and enforcing these requirements as needed through inspection and monitoring. Building and Permitting also oversees the City’s Short-Term Rental and the civic file information systems.
HOUSING & POLICY INITIATIVES
DEVELOPMENT ENGINEERING
This function was established in 2024 to support implementing local tools to support Council’s priorities around housing development and affordability. Housing and Policy Initiatives works in close partnership with other departments to oversee the Official Community Plan and neighbourhood planning initiatives. This department seeks grant opportunities and ensures alignment with policy direction from higher levels of government while working closely with the local housing industry, including non-profit organizations.
Working in close partnerships with the Planning, Building, and Engineering departments, Development Engineering ensures that infrastructure in new development meets established standards and conforms to City bylaws. This department serves as a liaison between Public Works and Penticton’s development and design community.
ECONOMIC DEVELOPMENT
Economic Development builds and enhances Penticton’s economic well-being. This department collaborates with local businesses, investors, organizations, agencies, and community leaders to identify opportunities to support economic growth. Economic Development supports key City partnerships with the Downtown Penticton Business Improvement Association (DPBIA), Penticton Industrial Development Association, Penticton & Wine Country Chamber of Commerce, Travel Penticton, and YYF Penticton Airport as well as collaboration with other governmental economic development organizations including the RDOS and SnPink’tn (Penticton) Indian Band. Economic Development strives to promote the city as an event destination and contributes to a healthy and vibrant community by attracting, developing, and facilitating festivals and sporting events.
The Development Services division includes 24.5 FTE.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Development Services division:
Of the Total Residential Units Created, Number of Units Created Supporting Housing Targets in the City’s Official Community Plan
BUILDING & PERMITTING
Development Navigator: Accelerating Livable Infill Housing
This initiative focuses on utilizing existing resources in the Building and Permitting departments to assist with early design reviews in an effort to streamline and support infill densification projects that contribute to a more livable and accessible community. The service will focus on developments with two or more housing units per lot and assist developers through:
Early-Stage Project Design Review by City staff to proactively identify any project issues particularly when Development Permits are not required
Bridging Information Gaps and offering just-in-time education on evolving provincial and municipal regulations
Clarify Application Requirements to reduce permit issuance timelines
Facilitating Focused Conversations between developers and staff, to align goals for the development community and the City
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
ECONOMIC DEVELOPMENT
Penticton Amplified: Strategic Communications for Resident and Employer Attraction
This initiative will explore marketing options focused on resident and business attraction campaigns and programs for the City of Penticton. The goal is a cohesive and strategic communications program that unifies and amplifies the City’s key economic and community-building efforts, including: Start Here, Welcome Home, and Love Local.
Through a shared narrative and targeted outreach, the initiative will strengthen Penticton’s regional and national identity, support resident recruitment, and showcase the city as a vibrant, inclusive, and opportunity-rich place to live, work, and invest.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
HOUSING & POLICY INITIATIVES
Finalization of Area Plan for Okanagan Lakeshore / Esplanade
This multi-year initiative will deliver a comprehensive Area Plan for the Okanagan Lakeshore/Esplanade, with the final plan scheduled for Council presentation in early 2026. The plan will provide strategic direction on future land use, environmental stewardship, and public access along this iconic waterfront corridor. Highlights:
Extensive Public Engagement was completed in 2025, through two rounds of consultation, including walkshops and surveys, to ensure inclusive and representative input
Interdepartmental Collaboration across Infrastructure and Community Service divisions to align trail and walkway enhancements with accessibility goals and meeting the needs of all users
Integration with the KVR Master Plan and Green Corridor Strategy to ensure cohesive planning across adjacent networks
Environmental and Archaeological Assessments to guide responsible and informed land use decisions
Consideration of Marina Operations and Existing Lease Agreements
Opportunities for Cultural and Environmental Inclusion recognizing points of significance and supporting reconciliation and ecological integrity
This is a continuing multi-year project.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
HOUSING & POLICY INITIATIVES
Advancing Housing Affordability
This initiative supports the City’s commitment to increasing housing affordability and availability across the housing continuum by advancing four key projects:
Affordable Housing Incentive Policies: development of a policy framework to encourage the creation of affordable housing through targeted incentives, regulatory tools, and partnerships with non-profit and private sector housing providers
City-Owned Land for Housing: continued identification of City-owned lands suitable for residential development, with a focus on maximizing public benefit and delivering diverse housing options
Transit-Oriented Area Plans: creation of area plans for key transit corridors to support higher-density, mixed-use development that aligns with sustainable transportation goals and enhances livability
Implementation of the Social Housing and Infrastructure Plan (SHIP): operationalizing the recommendations of SHIP to guide investment, partnerships, and service delivery in support of vulnerable populations
Together these projects form a coordinated strategy to address housing needs, reduce barriers to development, and ensure Penticton remains a livable and inclusive community.
Priority: Livable & Accessible
Estimated Completion: Ongoing initiative
A comprehensive plan for the downtown area including future land use, infrastructure projects, public realm enhancements, community safety, transportation, parking, and commercial/business needs. The plan would incorporate actions on multiple initiatives underway in the downtown, including housing development, parking needs, Nanaimo Square upgrades, public safety initiatives, active transportation, and upgrades to Main Street and other key corridors.
This is a multi-year initiative.
Priority: Livable & Accessible
Estimated Completion: December 2027
ECONOMIC DEVELOPMENT
North Gateway – Penticton Trade and Convention Centre Hotel Options
In response to a Council motion to explore the option of an attached hotel to the Penticton Trade and Convention Centre (PTCC). Public input into the project will be captured during the 2026 General Election. Economic Development will lead this work.
Priority: Livable & Accessible
Estimated Completion: Ongoing Initiative
Housing and Policy Initiatives
Advancing Housing Affordability
This initiative supports the City’s commitment to increasing housing affordability and availability across the housing continuum.
Explore the option of an attached hotel to the PTCC.
$120,000 Economic Development North Gateway: Penticton Trade and Convention Centre Hotel Options
Development of a Downtown Area Plan
A comprehensive plan for the downtown area including future land use, infrastructure projects, public realm enhancements, community safety, transportation, parking, and commercial/business needs.
$75,000
$100,000
DIVISION OVERVIEW
Public Safety and Partnerships division oversees Social Development and Bylaw Services and works closely with the RCMP and Fire Department on joint initiatives. The General Manager is responsible for leading multi-sector initiatives that promote community wellbeing and public safety, in partnership with the social sector, business community, and provincial/ federal partners.
BYLAW SERVICES
SOCIAL
DEVELOPMENT
Bylaw Services support and uphold City bylaws, with the primary goals of ensuring public safety, maintaining community standards and managing behavioural and social nuisance issues. The Department is committed to delivering professional bylaw education and enforcement in a timely and effective manner. Bylaw Officers are committed to ongoing and continuous learning to maintain adherence with current best practices to best serve the community. Bylaw Services manages the delivery of animal control through contracted services.
The Social Development Department’s primary goal is to support Penticton's safety and well-being by working with partners on housing, mental health and wellness supports, homelessness, supports for people who use substances, child care and food security. The work is guided by a Social Development Framework, which offers a structure that assists with coordinating the activities, communications, community alignment, relationships and assets that spur social change through meaningful and proactive leadership to the social services sector.
For the 2026 budget, the Public Safety and Partnerships division is proposing an increase in FTE from 20.0 to 20.6 staff.
Bylaw Services had identified a need for additional relief Bylaw Enforcement Officer (BEO) resources from May –August annually. The department is seeing a year-over-year increase in calls during this time, and the additional relief BEO resource will ensure that the department can meet the level of service expected from the community.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Public Safety and Partnerships division:
available for July–December 2024 only due to a change in reporting practices
GENERAL MANAGER’S OFFICE
Extension of Existing Memorandum of Understanding (MOU) with 100 More Homes
To support a safe, resilient, and inclusive community, staff recommend that Council extend and expand the City’s partnership with 100 More Homes Penticton (100MH). This initiative builds on a proven, collaborative model that addresses homelessness through coordinated service delivery, housing navigation, and community-based solutions.
The City’s existing MOU with 100MH Penticton (2022–2025) has formalized a successful partnership that has contributed to improved housing stability and service coordination for vulnerable residents. This initiative supports a Safe and Resilient community through proactive partnerships and community-based responses to homelessness and housing insecurity.
Priority: Safe & Resilient
Estimated Completion: Spring 2026
GENERAL MANAGER’S OFFICE
Advancing Community Safety and Wellbeing Plan
Building on foundational work completed in 2025, this initiative will finalize Penticton’s Community Safety and Wellbeing (CSWB) Plan. Staff will seek Council’s endorsement of key deliverables that form a comprehensive, multi-year roadmap to strengthen public safety, social health, and community resilience.
In 2026, project efforts will focus on:
Finalizing the CSWB Framework: establishing measurable goals, timelines, and clear roles across departments.
Integrating Actions from the Social Development Framework: aligning ongoing and outstanding initiatives with wellbeing priorities and lived experience-informed strategies.
Strengthening Partnerships: deepening collaboration with the RCMP, Penticton Fire Department, Indigenous organizations, non-profits, and provincial agencies to deliver coordinated, culturally-informed responses.
Breaking Down Silos: implementing a collaborative governance model to support cross-departmental planning and shared accountability.
Future-Proofing the Safety Strategy: embedding flexibility, innovation, and responsiveness into the CSWB’s design to adapt to evolving community needs.
Leveraging Public Insights: using feedback from the 2024 Public Safety Survey and fall 2025 community engagements to ensure the plan reflects local priorities and expectations.
Priority: Safe & Resilient
Estimated completion: Ongoing Initiative
HEART
HEART and HEARTH is the Province’s encampment response program, through which local governments and the province agree to establish a multi-sector collaboration table (HEART) to lead encampment response and encampment prevention efforts, and deploy temporary housing (HEARTH) to increase the supply of emergency housing in community while permanent supply is built.
HEART (Homeless Encampment Action Response Team): a cross-sectoral working group that develops and implements decampment plans and encampment prevention efforts.
HEARTH (Homeless Encampment Action response Temporary Housing): funding for temporary transition housing and shelter options to support decampment.
This initiative supports the City’s commitment to addressing homelessness and complex social issues through muti-sector partnerships, and significant provincial investments.
If approved to move ahead, in 2026, the City will operationalize HEART and HEARTH as a core component of its Community Safety and Wellbeing Plan with the following focus areas:
Coordinated Encampment Response: led by multidisciplinary teams including municipal staff, Indigenous support workers, health authorities, and non-profit partners
Deployment of HEART Teams: to provide culturally-safe, trauma-informed outreach and service navigation for unhoused residents
Implementation of HEARTH housing solutions: including temporary and transitional housing options tailored to local needs
Integration with the Social Development Framework: ensuring alignment with existing municipal strategies and service gaps identified by the Social Development department
Strengthening Partnerships: with provincial agencies, Indigenous organizations, and invested partners to deliver inclusive, community-informed solutions
Ongoing Monitoring and Reporting to Council
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
BYLAW SERVICES
Records System to Support Intelligence Led Responses
The City is modernizing its Records Management System (RMS) for Bylaw Services to improve efficiency, transparency, and responsiveness. This strategic upgrade replaces outdated systems with a cloud-based, integrated platform that supports frontline staff and enhances service delivery. Paired with new in-vehicle laptops, the RMS will deliver key benefits:
Real-time access to case information, allowing officers to resolve complaints and enforcement actions more quickly.
Automated workflows that reduce administrative tasks, enabling staff to focus on community engagement and enforcement.
Mobile functionality, allowing officers to work directly from the field, improving visibility in the community, reporting accuracy and reducing delays.
Data analytics and dashboards that help prioritize resources based on trends and community needs, ensuring taxpayer dollars are used effectively.
Priority: Safe & Resilient
Estimated Completion: Spring 2026
BYLAW SERVICES
Leveraging Technologies for Improved Department Operations
Following a comparative technology study completed in 2025, the City will implement new hardware (laptops) and communication tools (radios) for Bylaw Officers in 2026 to improve operational efficiency and service delivery. This initiative focuses on reducing administrative delays by enabling officers to complete documentation directly in the field, concurrent with patrols and investigations.
Priority: Safe & Resilient
Estimated Completion: Spring 2026
Extension of Existing Memorandum of Understanding (MOU) with 100 More Homes
This initiative supports a Safe and Resilient community through proactive partnerships and community-based responses to homelessness and housing insecurity. $120,000 Bylaw Services Records System to Support Intelligence Led Responses
Securing a technology vendor with the ability to provide enhanced data collection and real time reporting, officer safety module, and for assistance meeting regulatory and legal requirements.
$60,000
Bylaw Services Staffing Resources to Meet Services Levels
Bylaw Services had identified a need for additional relief Bylaw Enforcement Officer (BEO) resources from May – August annually. The relief BEO resources will ensure the service level expected from the community is met. $72,000
DIVISION OVERVIEW
FIRE CHIEF’S OFFICE
The Penticton Fire Department (PFD) has been serving the community of Penticton and the Regional District since 1911. PFD is a composite department which has both career (full-time) and auxiliary (paid on-call) members working out of two stations located at 250 Nanaimo Avenue (Fire Hall #1) and 285 Dawson Avenue (Fire Hall #2).
Penticton’s Fire Chief, supported by a Deputy Fire Chief and an Assistant Fire Chief, oversees the overall operations of the fire department including suppression, prevention, training, and emergency management.
SUPPRESSION
The Suppression division provides a wide range of services that meet the expectations of the community and its many visitors, including fire suppression, pre-hospital medical emergency, and various types of rescues, including motor vehicle incident, industrial accidents, and technical rescue.
PREVENTION TRAINING
EMERGENCY MANAGEMENT
The Prevention division, led by the Assistant Fire Chief of Prevention, is responsible for building inspections, investigating fires, fire and life safety education, and the FireSmart program.
The Training division, led by Assistant Fire Chief of Training, is responsible for developing, implementing, and overseeing training programs to ensure firefighters are proficient in emergency response, safety protocols, and firefighting techniques.
The Emergency Management department, led by the Emergency Program Manager, is responsible for identifying and reducing risk, emergency preparedness, response and recovery for major emergency events including fires, floods, landslides, pandemics, and extreme weather. The department collaborates with various departments throughout the City as well as outside organizations to build relationships and capacity to comprehensively prepare for and respond to large-scale emergencies.
For the 2026 budget, the Penticton Fire Department (PFD) is proposing an increase in FTE from 50 to 52 staff. This increase will support the fire suppression division to maintain safe staffing levels on each shift: A, B, C, and D. The current staffing level of 40 firefighters does not allow us to maintain safe staffing levels using firefighters on the regular shift rotation. To account for this gap in staffing resources, the PFD has been relying on overtime to maintain safe staffing levels. Continued reliance on overtime increases the budget due to higher overtime rates and is not a sustainable long-term solution.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate overall longterm performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the Penticton Fire Department.
EMERGENCY MANAGEMENT
Continued Development of a Hazard Risk Vulnerability Analysis (HRVA)
The Emergency Management department will continue development of an HRVA in 2026. An HRVA is a foundational tool for identifying, assessing, and mitigating risks that could impact the safety and resilience of Penticton and neighbouring communities.
The HRVA is being undertaken in response to the Emergency Disaster Management Act (EDMA), which emphasizes a comprehensive approach to mitigation, preparedness, response and recovery.
Priority: Safe & Resilient
Estimated Completion: Winter 2026
PREVENTION DIVISION
Wildfire and FireSmart Planning and Mitigation Strategies
The Penticton Fire Department will continue leadership in wildfire risk reduction and community resilience through the advancement of FireSmart principles and targeted mitigation strategies.
Key focus areas for 2026 include:
Expansion of FireSmart education and outreach
Integration of wildfire risk data
Collaboration with neighbouring communities
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
Penticton Fire Department
DIVISION OVERVIEW
The core values of integrity, compassion, respect, and accountability are at the heart of our operations at the Penticton RCMP. Our mission is clear: to safeguard the public, uphold the rule of law, and maintain order in our community. Through vigilant investigations, proactive crime prevention measures, and empathetic assistance, we are dedicated to ensuring the security and welfare of all individuals. By fostering collaborative partnerships within the community, we strive to build trust and cultivate positive relationships. Whether conducting patrols, inquiries, engaging and supporting youth, and a diverse community, or providing aid during crises, we remain steadfast in our commitment to uphold our values, ensuring that each action reflects our dedication to serving with integrity and distinction.
The City of Penticton funds two categories of employees for the Penticton RCMP Detachment which includes 59 RCMP Members and 29 Municipal Staff.
For the 2026 budget, the RCMP is proposing an increase from 59 to 60 Members for a new dedicated Criminal Intelligence Analyst Civilian position for the City of Penticton. The Criminal Intelligence Analyst supports criminal investigations to enhance police and public safety through providing accurate, timely, intelligence to aid in enforcement and the disruption of criminal activities. This position provides additional support to the Officer in Charge by informing them on data related to crime statistics, trends and other additional business analytics. There is currently one Municipal Employee Criminal Intelligence Analyst position serving the entire Penticton South Okanagan Similkameen Regional detachment area. The additional position would directly support and enhance Criminal and Business Intelligence for the Penticton Detachment to most effectively use police resources to preserve peace, prevent crime, and apprehend criminals.
Key Performance Indicators (KPIs) provide a set of quantifiable measurements used to evaluate long-term performance. KPIs outline the City’s strategic, operational, and customer service achievements as well as allowing for comparison of services between municipalities.
The following table provides an overview of key indicators for the RCMP’s services:
was in development phase for 2024.
RCMP Advancement of the RCMP 2024 – 2027 Strategic Plan
In 2024, the Penticton RCMP finalized the 2024 – 2027 Strategic Plan “Connected for a Safer City” with four key areas of focus. The Penticton RCMP continues to advance its commitment to community safety and resilience through these focus areas. These initiatives reflect a collaborative, intelligence-led, and preparedness-focused approach to policing in our community.
1) Connect Vulnerable People with Appropriate Supports
Community Resilience Against Hate: in partnership with SOICS (South Okanagan Immigrant and Community Services), the RCMP is co-planning a one-day symposium titled “Listen, Learn, and Lead: Building Community Resilience Against Hate,” aimed at raising awareness and fostering dialogue around hate crimes
Youth Engagement: active collaboration on the Youth Action Table supporting early intervention and positive outcomes for at-risk youth
Domestic Violence Awareness: in response to identified community needs, the RCMP will partner with local agencies to raise awareness and educate residents on services available to those experiencing intimate partner violence
Community Safety Unit Modernization: ongoing work continues to advance the modernization of the Community Policing Victim Services branch, enhancing support for victims and vulnerable populations
2) Impact Crime Trends Through Intelligence-Led Strategies
Criminal Intelligence Analyst Business Case: an additional resource has been proposed through budget to reinforce the importance of data-driven policing. The RCMP continues to advocate for the Criminal Intelligence Analyst role to support strategic decision-making and resource deployment
Repeat Offender Management: targeted strategies are in place to monitor and manage repeat offenders, reducing recidivism and improving community safety
IMPACT Unit – Auto Theft Focus: the RCMP is leveraging provincial enforcement partnerships through the IMPACT unit to address auto theft and related crimes using innovative, intelligence-led approaches
3) Advance Preparedness for Natural And Human Caused Disasters
Emergency Preparedness Partnerships: continued collaboration with Penticton Fire Department and Regional District Okanagan Similkameen (RDOS) focused on joint-training, modernization efforts, and readiness for emergency response
Standard Operating Procedures (SOPs): SOPs are being updated to ensure police response protocols align with best practices for both natural and human-caused disasters
4) Drive results together
Regional and Provincial Partnerships: the RCMP is actively leveraging enforcement options through existing partnerships, such as IMPACT Unit, to enhance operational effectiveness
Community Collaboration: a strong commitment remains to both existing and new partnerships with community groups and agencies, fostering a safe and resilient environment for all residents and visitors
Shared Mission Across Detachment Teams: project-based policing continues across all business lines, supporting proactive and coordinated responses to emerging crime trends
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
Priority: Safe & Resilient
Estimated Completion: Ongoing initiative
Staffing Resources to Meet Service Levels Criminal Intelligence Analyst
Criminal Intelligence Analyst supports criminal investigations and enhances public safety through intelligence-led enforcement and disruption activities. Position directly supports Members to effectively use police resources, preserve peace, prevent crime, and apprehend criminals.
The City’s Five-Year Financial Plan (the Plan), is compiled based on the following financial basis, along with Council financial policies (summarized on pages 133–134), and legislative requirements. These are used as a framework to ensure proper fiscal accountability, long-term sustainability, and stewardship over the City’s funds.
In compliance with Section 165 of the Community Charter, within the City’s Five-Year Financial Plan, the total of proposed expenditures and transfers to other funds for a year must not exceed the total of proposed funding sources and transfers from other funds for the year and be balanced. Plan comparisons to previous years are required to be presented in conjunction with the City’s financial statements. The Plan aligns spending with Council and community priorities to provide valued services and programs; the authority to spend is provided exclusively through the Plan adopted by Council.
The budget is prepared on the modified accrual basis which combines aspects of the accrual basis and cash basis of accounting. The basis of budgeting differs from the City's audited Financial Statements that is prepared on the full
accrual basis of accounting under Public Sector Accounting Board (PSAB) guidelines. Revenues from transactions with performance obligations are recognized when (at a point in time) or as (over a period of time) the City satisfies the performance obligations. Expenses are recorded in the period in which the goods or services are acquired and the liability is incurred.
The City's audited financial statements are prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board. Revenues from transactions with performance obligations are recognized when (at a point in time) or as (over a period of time) the City satisfies the performance obligations. Expenses are recorded in the period in which the goods or services are acquired and the liability is incurred.
The City includes a budget for amortization expense, however does not collect a tax for this expense and therefore the Financial Plan Bylaw includes a transfer item for “Amortization offset”. The City’s financial statements include the amortization expense for actuals and budget but excludes the “amortization offset” as this is considered a transfer.
Debt revenue and expenses and principal repayments are included in the Financial Plan expenses and are listed separately on the Schedule A Summary, however for the City’s financial statements these are excluded from the Statement of Operations and instead are an increase or reduction to the Statement of Financial Position debt liabilities.
Capital expenses for capital projects are included in the Financial Plan, however, they are excluded from the City’s Statement of Operations and instead result in an increase to the City’s tangible capital assets on the Statement of Financial Position.
Any transfers to or from reserves and unappropriated surplus accounts as revenues or expenses to balance the Financial Plan are not included in the Statement of Operations in the City’s financial statements.
The City of Penticton is committed to long‐term sustainable financial planning, which involves identifying future challenges and opportunities through financial forecasting, analysis, and developing strategies to achieve financial stability. The City’s long‐term goal is to ensure there are consistently sufficient resources to deliver services that achieve the City’s budget priorities: Safe & Resilient and Livable & Accessible. The Divisions & Departments narrative sections in this document describe the department, goals, work plan, and performance measures used to support City priorities.
This overview summarizes the City’s long‐term financial plan that projects revenues, expenditures/expenses, and the financial position for the General and Utilities funds.
The City budgets for its funds and programs in five-year increments with the tables in this Plan including five years of projections for each major fund and department.
General fund revenues include property taxes, sales of services, other revenue, interest revenue, grants, development cost charges, and donations. Revenues are projected for future years based on several factors including the current year budget and current actual revenue received to date, in consideration of a five-year historical trend, as well as known changes. Tax base and other revenue drivers are adjusted based on factors
identified through internal reviews, construction and population changes, economic climate and trends, and operational shifts.
Key revenue assumptions used to develop the 2026 budget and long‐term budget include:
Annual property tax increase of 6.26% in 2026, and for 2027-2030 it is currently forecasted to balance each year’s budget. Overall, this is broken down by 2.6% in inflation, 2.0% in Community Safety investment and 1.7% in Community Livability investment, further detailed on page 36;
Annual property tax levy growth of $600,000 per year based on anticipated non-market change;
Solid Waste fees for 2026 have increased 4.9% overall based on the Council approved rate increase of 3% and anticipated growth, with 2027-2030 rate increase budgeted at a 3% increase annually.
Cemetery fees increases are incorporated at a 3% annually, for the years 2026-2030, which is recommended from the 2024 Cemetery Business Plan update;
Recreation and land management agreements are forecasting a 2% increase annually for each of the years 2026-2030.
Other fees and charges are reviewed annually and increased incrementally for inflation.
Storm utility revenues for 2026 overall are increasing 32%, based on Council approved 30% increase and anticipated growth. For 2027-2030 a 30% increase annually has been added, based on the most recent rate review (further explained in the Utility Fund section below);
Casino revenue budget decreased $400,000 in 2026 based on actual revenue being received. For 2027-2030, revenue will remain steady annually thereafter.
Expenditures include labour, operating and maintenance, and debt servicing costs, which are presented at the fund and department level in the five‐year budget. Labour expenditures are projected for future years starting with the 2025 budget as the base, and then applying cost drivers for salaries, wages and benefits, step increases, and contractual commitments from collective bargaining. Operating and maintenance expenditures are projected for future years starting from the 2025 budget, considering inflation, historical five-year actuals, known changes, and adjustments identified through internal reviews.
The overall annual increase in expenses for 2026 is 5.9 percent, for the General Fund departments the following expenditure assumptions were included:
Wages have increased based on the following assumptions:
CUPE employees’ 2026 annual increase is 3.25% based on the current contract and a 2% annual increase has been incorporated for 2027-2030, which will be adjusted once future contracts are negotiated.
IAFF employees’ contract ends in 2025, annual increases of 4.5% for 2026-2030 have been included until the new contract is negotiated.
Previously approved Council decisions impacting the 2026-2030 budget include:
In 2026 - two RCMP officers were approved through the 2025 Budget, one firefighter from the 2023 budget (4 firefighters approved over 4 years), and the costs associated with the Vees transition to the WHL.
In 2027-2030, transit expansion plans and potential debt borrowing for a new Fire Hall have been incorporated based on best known estimates.
Strategic Initiatives included in the 2026 budget total $1.37 million dollars and are detailed on pages 29-30 of this plan.
Utility revenues received are used to fund all aspects of each utility, including day-to-day operations, current capital needs, as well as investment into reserves for funding long-term infrastructure renewal. Rate reviews are completed, in conjunction with external consultants, approximately every 4 years to assess and recommend the future rate increases required for the long-term sustainability of each utility. The current rate review was completed in 2023 and provided recommended rates for 2024-2027, these rates have been used as a baseline for the 2026-2030 rate increases. The 2027-2030 rates will be updated upon completion of the next rate review. The assumptions in this year’s budget for each utility rate are:
Electric revenue for 2026 has been budgeted to increase by 3% overall, based on Council approved rate increase of 8%, offset by anticipated reduced consumption. Consumption varies year over year depending on weather extremes. For 2027-2030, the budgeted rate increase is 8% annually;
Sewer revenue for 2026 is budgeted to increase 7.9%, based on Council approved rate increase of 10.3%, offset by anticipated reduced usage. The 2027-2030 budgeted rate increase is 10.2% annually;
Water revenues for 2026 are budgeted for an increase of 9.0%, based on Council approved rate increase of 9.4%, offset by other revenue reductions. This rate is higher than the recommended rate review rate, as debt borrowing for a major capital upgrade was required that was unknown at the time of the 2023 rate review. For 2027-2030, a 9.4% increase annually has been budgeted.
Expenditures
Utility expenses include labour, operating and maintenance, and capital transfers for each utility fund which are presented at the fund level in the five‐year budget.
Wages have increased based on the following assumptions:
CUPE employees’ 2026 annual increase is 3.25% based on the current contract and a 2% increase for 20262030 which will be adjusted once future contracts are negotiated.
IBEW employees’ contract ended in 2023, annual increases of 4% for 2026-2030 have been forecasted, which will be adjusted once future contracts are negotiated.
The 2026 Financial Plan reflects continued investment into the community through safety and livability initiatives while maintaining a conservative, steady budget that has incorporated known impacts along with anticipated future opportunities. City staff strive to maintain consistent and stable tax increases and avoid the need for large one-time tax adjustments whilst ensuring long-term financial stability.
The financial plan process phases are detailed below:
Define The City seeks public input on a cyclical basis through a Citizen’s survey. That data is provided back to Council for their information prior to the process of setting strategic goals for the organization.
Compile Departments compile the Plan at a detailed level. Updates are made for inflationary items such as labour contracts, as well as operating expenditures, revenue and rates.
Review Senior leadership conducts a review of each department plan submissions. During this phase, Senior Leadership assesses other potential sources of funding in order to stabilize the tax rate. The Plan at this point of the process will be formalized in draft to present to Council.
Engagement In accordance with the Community Charter, the Financial Plan is available for public comment with the City providing various opportunities for public input.
Deliberate Once the public engagement period comes to an end, Council will be presented with a summary of the feedback received. Through the deliberation process Council reviews, amends, and approves in principle each divisional budget.
Adoption Council receives and approves the Five-Year Financial Plan Bylaw. The final reading of the Financial Plan Bylaw and the Tax Rates Bylaws must be adopted by Council prior to May 15 as required by the Community Charter
Monitor Reports are provided quarterly to Council with updates on the City’s financial position compared to the Plan as well as forecasted results to the end of each quarter. This regular monitoring gives Council oversight of the City’s financial situation ensuring transparency of City spending.
The City’s key steps and the approximate timing of the process are provided in a timeline on page 32.
Amendments to the Plan can occur throughout the year due to economic impacts, unforeseen circumstances or emerging opportunities. These amendments are approved by Council through specific reports brought to a Council Meeting or as part of the quarterly financial updates.
The City monitors its financial performance against its budget through a quarterly financial update that compares the original approved budget to amended budget and provides an annual forecast. Each budget area is reviewed to compare actual expenditures to the amended budget, and a forecast is projected for the year. This process provides Council and the public with an update on the forecasted spending in comparison with the Plan.
The Business Plan priorities are incorporated into the annual financial plan and linked to Council’s strategic priorities. The associated work items are reported to Council along with the financial plan update on a quarterly basis and are also posted to the City’s website. This review provides Council with a holistic view of the City’s activities and progress.
In compliance with Section 166 of the Community Charter, the City’s Five-Year Financial Plan must be available for public consultation prior to the plan being adopted. The City provides a public consultation period between the release of the Financial Plan and Council Deliberations, which is normally approximately 2–4 weeks with multiple options offered for gathering feedback.
The City operates under four major funds: General Fund, Electric Fund, Sewer Fund, and Water Fund, with the Storm Water utility being part of the General Fund in the Transportation Services section. All funds are included in both the budget and the audited financial statements.
GENERAL FUND
GENERAL GOVERNMENT
PROTECTIVE SERVICES
TRANSPORTATION SERVICES
DEVELOPMENT SERVICES
RECREATION & CULTURAL SERVICES
PUBLIC HEALTH & SAFETY
ENVIRONMENTAL
ELECTRIC FUND
ADVANCE WASTE WATER TREATMENT SEWER FUND
SEWER COLLECTION
WATER DISTRIBUTION WATER FUND
WATER TREATMENT PLANT
The City uses specific funds to account for its revenues and expenditures. The revenue in each fund may be spent only for the purpose specified in the fund. Each fund consists of three categories: operating, capital or reserves:
Operating funds are used for day-to-day operations.
Capital funds pay for physical assets with a life of more than two years.
Reserve funds accumulate revenue and interest, if applicable, that will be used in future years for capital, unexpected expenditures or specific projects.
All funds are appropriated for specific purposes as follows:
General Operating Fund – used to account for all general operating revenues and expenses of the municipality other than electric, water, and sewer operations.
Electric Operating Fund – provides for all revenues and expenses related to the operation of the electric distribution system. Revenues are collected through monthly electric billings based on volume utilized.
Water Operating Fund – provides for all revenues and expenses related to the operation of the municipal water system. Revenues are collected through water billing based on volume of water consumed.
Sewer Operating Fund – community sewage disposal system . Revenues are collected based on volume of water utilized, except from summer months where it moves to a set volume, to recognize irrigation usage.
General, Electric, Water and Sewer Capital Fund (Capital Programs) – used to account for all capital expenditures for each respective fund.
Reserves – specific purpose and accumulated surpluses available for future expenditures.
The City’s reserve funds assist with long term financial stability and financial planning. Adequate reserve funds provide financial flexibility, mitigate risks, weather uncertainties, and help ensure the ongoing viability and financial sustainability of the City. Reserve funds are also leveraged to enhance and sustain City infrastructure and assist in supporting programs and community services.
Statutory Reserves are established by Council and are restricted for a specific purpose. They represent monies set aside in accordance with either Council bylaws or by the requirement of provincial legislation. Interest earned on Statutory Reserves must be allocated to the specific Statutory Reserves that earned it.
Non-statutory Reserves are allocated based on the Reserve policy, which is approved by Council, often as part of an overall strategy for funding programs and services.
Mandatory Development Cost Charges (DCC's) are mandated per subsection 188 (2) (a) of the Community Charter, separate reserves need to be established for DCC collections and use, under section 566 of the Local Government Act.
The City’s reserves fund balances and forecast are shown as follows:
The level of fund balances is an indicator of the long-term sustainability and financial strength of the City. Strong fund balances afford Council the ongoing ability to maintain taxation stability, mitigate challenging economic times and to provide capital funding for typical City projects without incurring debt on the external markets. The change in the Reserve Funds and Reserves is mainly due to operating activities, external contributions, and
capital expenditures. As part of the financial planning process, utilization of reserves is reviewed to maintain optimal balances in each reserve per the Reserve Policy. The City is currently implementing strategies to build capital reserves for long term sustainability of assets in the future.
In 2026, capital projects reduce in anticipation of an upcoming significant project.
The following financial plan schedules detail the City's 5 year plan, with comparisons to historical years, and include:
Schedule A - consolidated summary of operating and capital budgets for all funds
Segment Summary - revenue and expenses by segment
General, Electric, Sewer and Water fund schedules
Separate segment summaries and individual department schedules
The City continues to focus on the short and long-term financial sustainability, which is governed by the following Council approved financial policies, as well as ensuring the City’s five-year financial plan, is balanced in accordance with Section 165 of the Community Charter. The total of proposed expenditures and transfers to other funds for a year must not exceed the total of proposed funding sources and transfers from other funds for the year.
Title:
Purpose, Overview and Scope of this Policy
Date Approved: May 2, 2023
The purpose of this policy is to ensure that debt is used strategically to maintain the City’s financial strength and stability by providing appropriate guidance for the use of debt financing. The use of debt can support the goal of providing adequate infrastructure, services, and resources to meet the community’s ongoing and emergent requirements.
Title:
Purpose, Overview and Scope of this Policy
Date Approved: December 12, 2023
The Electrical Dividend Policy governs the City’s calculation and utilization of the Electrical Dividend to improve clarity and transparency for both electric rate payers and property owners. The Electrical Dividend will contribute solely to the City’s General Capital Program.
Title:
Purpose, Overview and Scope of this Policy
Date Approved: June 24, 2025
The Financial Plan Process Policy defines the overall approach and philosophy to provide clarity and consistency in compiling the balanced five-year financial plan for operating, capital and carry forward budgets. The City’s financial and corporate business plan will support Council’s Strategic Priorities with a long-term perspective for fiscal sustainability.
Purpose, Overview and Scope of this Policy
Date Approved: July 3, 2018
The City strives to provide deliver affordable and sustainable services to the Community in a manner that takes into account the impact on the current taxpayers as well as effects into future generations.
The Financial Management Policy provides the blueprint for making sound financial decisions through changing conditions, and aims to provide clarity to staff, Council and the Community with respect to how financial decisions are made.
Title:
Purpose, Overview and Scope of this Policy
Date Approved: May 2, 2023
The Investment Policy governs the City’s investment program, which seeks to optimize risk-adjusted returns for the City’s investment portfolio. The City will invest its funds in a manner that will provide for the optimal blend of security and risk-adjusted returns, while meeting current and future cash flow demands and conforming to all statutory requirements.
Title:
Purpose, Overview and Scope of this Policy
Date Approved: December 12, 2023
The City’s Reserve Policy provides guidance and direction for the development, maintenance and use of the City’s reserve funds. All reserve and surplus funds must be established, maintained and used for a specified purpose as mandated within this policy, statute, or City bylaw including the financial plan.
This policy outlines the primary objectives of the City’s funds which are to ensure stable and predictable tax levies, focus on long-term financial stability, safeguard and maintain existing assets, provide for operating emergencies and finance new capital assets.
Purpose, Overview and Scope of this Policy
Date Approved: February 15, 2022
The Year End Surplus Policy governs the City’s treatment of fund surpluses as calculated in the annual financial statements. The policy ensures funds are set aside to address future City priorities while meeting statutory requirements by providing direction to staff on the distribution of the annual surplus for each fund.
General Government $ (66,554,168) $ (63,335,971) $ (61,154,147) $ (61,027,230) $ (64,282,446) $ (68,645,728) $ (73,543,077) $ (75,452,436) $ (77,776,113)
Protective Services
Transportation Services
Development Services
(4,672,347)(5,724,848)(5,582,468)(5,662,968) (5,606,550)(5,654,291)(5,713,463)(5,764,111)(5,821,278)
(4,104,867)(4,562,861)(5,010,167)(5,010,167) (5,740,801)(6,552,861)(7,599,359)(8,950,444)(10,697,306)
(1,779,391)(1,922,354)(1,955,536)(1,905,681) (1,776,891)(1,590,076)(1,607,270)(1,624,881)(1,642,924)
Recreation and Cultural Services(2,921,794)(3,424,044)(3,622,086)(3,616,086) (3,242,901)(3,238,434)(3,266,751)(3,295,633)(3,325,089)
Public Health and Safety (483,017)(562,254)(477,690)(477,690) (524,800)(540,544)(556,760)(573,465)(590,666)
Environment (3,312,190)(3,836,808)(3,239,690)(3,277,690) (3,398,850)(3,647,463)(3,708,780)(3,771,936)(3,836,987)
n d R e ve n ue (83,827,774) (83,369,140) (81,041,784) (80,977,512) (84,573,239) (89,869,397) (95,995,460) (99,432,906) (103,690,363)
Electrical Utility (45,453,405)(47,159,151)(51,784,235)(51,784,235) (53,378,295)(57,628,249)(62,218,141)(67,175,169)(72,528,700)
Sewer Utility (9,815,282)(10,875,535)(11,758,428)(11,785,048) (12,636,739)(13,776,447)(15,031,539)(16,413,767)(17,936,082)
Water Utility (10,689,407)(12,324,476)(11,689,739)(11,689,739) (12,721,730)(13,837,501)(15,058,154)(16,393,549)(17,854,471)
To t al Re ve n ue s (149,785,868) (153,728,302) (156,274,186) (156,236,534) (163,310,003) (175,111,594) (188,303,294) (199,415,391) (212,009,616)
n sfe r f ro m S t at u
COVID-19 Restart - (29,860) (30,200) (30,200)
Multi-Material BC (287,500)(287,500)(429,000)(429,000) (472,000)(474,140)(476,325)(365,000)(365,000) RCMP -
(690,000)- (1,125,000)(1,181,250)(1,240,313)(1,302,328)(1,367,445) OAP Reserve (40,000)-
Amortization Offset - Finance(8,778,828)(9,871,276)(8,779,000)(8,779,000) (9,875,000)(9,875,000)(9,875,000)(9,875,000)(9,875,000)
Amortization Offset - General Fleet (2,928,033)(3,226,439)(2,930,000)(2,930,000) (3,227,000)(3,227,000)(3,227,000)(3,227,000)(3,227,000)
Amortization Offset - Accretion(130,993)(457,816)(131,000)(131,000)
(37,661)(24,190)- -
Human Resources & Safety (14,972)(3,826)- -
Change 2025 budget to 2026 budget:
$ Change $(63,725)
% Change (6.42)%
(Slack Alley)
Dragonfly Pond Family Society
Jean Minguy Memorial Police Youth Academy 3,0003,000-
Valley Music Festival Society
Okanagan Valley Music Festival Society (PABC Event
15,00015,00015,00015,000 Pathways Addictions Resource
Nightingale Project (Event)
Rotary Club of Penticton (Ribfest) 6,869-
Royal Cdn Legion - Facility Rent 3,7924,3394,8004,800
Skaha Bluffs Park Watch Society 15,00015,465-
Penticton Paddle Sports Association (CORA)
Community Recreational Initiatives Society (Event)
Change 2025 budget to 2026 budget:
$ Change $41,583 % Change % 7.54
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $26k Increase for engagement and newsletters.
(8,182)(16,312)(9,500)(9,500) (9,500)(9,500)(9,500)(9,500)(9,500)
(25,873)(28,680)(43,900)(43,900)
(80,115)(83,479)(83,084)(83,084) (85,575)(86,418)(87,661)(88,929)(90,222) Fire Services (188,171)(142,719)(124,115)(124,115) (130,000)(130,514)(131,038)(131,573)(132,119)
General Capital - - (113,000)(113,000) (150,000)(150,000)(150,000)(150,000)(150,000)
General Government/Utility Overhead Credit (125,535)(147,455)(183,725)(183,725) (274,275)(274,275)(274,275)(274,275)(274,275)
Land Management
(268,774)(339,498)(351,791)(351,791) (222,295)(167,954)(168,628)(169,316)(170,020)
Library (134,726)(145,187)(112,020)(112,020) (94,884)(95,664)(112,659)(113,470)(114,296)
Museum (89,817)(96,791)(74,680)(74,680) (63,256)(63,775)(75,105)(75,645)(76,197)
Public Works - Cemetery - (1,439)(2,500)(2,500) (22,500)(2,500)(2,500)(2,500)(2,500)
Public Works - Fleet (51,274)(53,427)(53,174)(53,174) (54,768)(55,308)(56,103)(56,915)(57,742)
Parks (433,396)(414,316)(441,437)(441,437) (440,996)(444,331)(447,901)(451,543)(455,258)
Public Works - Roads &
Maintenance
(19,228)(20,035)(19,940)(19,940) (20,538)(20,740)(21,039)(21,343)(21,653)
RCMP (283,528)(263,243)(229,959)(229,959) (236,340)(220,585)(222,875)(225,210)(227,592)
Recreation (1,966,324)(2,098,072)(1,735,121)(1,735,121) (2,339,756)(2,341,191)(2,367,645)(2,394,628)(2,422,151)
Sewer Utility (67,296)(70,123)(69,791)(69,791)
Change 2025 budget to 2026 budget:
$ Change $(9,178)
% Change (1.06)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$189k Increase for addition of the Front St facility.
($44k) Decrease for the Bylaw facility being amalgamated back to City Hall.
$107k Increase for Outdoor Rink operation, including an additional Facility Maintenance position.
$20k Increase for Cemetery building repairs.
$385k Increase for Community Centre maintenance and cleaning due to increased usage and addition of Power Street Childcare Centre.
($112k) Decrease from 2025 for one time house demolitions.
Misc Recoveries (59,888)(97,688)-Gaming Revenue (1,843,249)(1,697,248)(2,000,000)(2,000,000) (1,600,000)(1,600,000)(1,600,000)(1,600,000)(1,600,000)
Traffic Fines - Municipal Portion(360,000)(377,000)(375,000)(375,000) (394,000)(394,000)(394,000)(394,000)(394,000) Other Revenue (75,000)(102,113)- - (32,000)(32,000)(32,000)(32,000)(32,000)
Debt Principal Payments 1,253,367949,378861,847861,847 739,157578,1321,295,0631,058,9841,045,048
Debt Principal Payments - Sewer543,155651,653651,653651,653 651,653651,653612,224918,807683,735
Debt Principal Payments - Water422,123586,619586,619586,619 1,153,014996,187996,187861,860730,891
(113,700)(113,700)(56,850)-
General Government/Utility Overhead Credit (1,191,823)(1,347,003)(1,336,418)(1,336,418) (1,496,911)(1,496,911)(1,496,911)(1,496,911)(1,496,911)
Principal Payments - - (861,847)(861,847) (739,157)(578,132)(1,295,063)(1,058,984)(1,045,048)
Public Works - Cemetery (72,500)(107,500)(107,500)(107,500) (107,500)(107,500)(107,500)-
Public Works - General (864)(1,112)(1,000)(1,000) (1,000)(1,000)(1,000)(1,000)(1,000)
Parks (141,633)(99,092)(46,146)(46,146) (36,440)(36,440)(22,790)-
Recreation (197,787)(209,317)(214,462)(214,462) (380,886)(331,926)(331,926)(288,926)(136,948)
Sewer Utility (1,037,930)(1,322,753)(1,452,253)(1,452,253) (1,452,253)(1,452,253)(1,371,874)(2,448,674)(1,926,602)
Water Utility (794,849)(1,112,870)(1,294,670)(1,294,670)
Change 2025 budget to 2026 budget:
$ Change $833,506
% Change % 87.12
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$400k Decrease in gaming revenue based on actual revenues being received.
$478k Increase in Operating Provision mainly for timing of 2025 approved RCMP members starting.
- Federal (137,960)(230,394)(240,000)(240,000) (240,000)(240,000)(240,000)(240,000)(240,000)
PILT - Provincial (306,397)(392,805)(450,000)(450,000) (450,000)(450,000)(450,000)(450,000)(450,000) To t al M u ni ci pa l Ta x a t i o n (43,005,823) (46,098,118) (50,526,736) (50,399,819)
DCC - Parks (87,826)(445,876)(225,000)(225,000) (230,000)(230,000)(230,000)(230,000)(230,000)
DCC - Roads (222,277)(959,103)(160,000)(160,000) (387,000)(387,000)(387,000)(387,000)(387,000)
DCC - Waste Water (73,978)(22,913)(135,000)(135,000) (95,000)(95,000)(95,000)(95,000)(95,000)
Equipment Sales Proceeds (25,332)(13,798)(40,000)(40,000) (40,000)(40,000)(40,000)(40,000)(40,000)
Franchise Fees (772,550)(754,181)(750,000)(750,000) (750,000)(750,000)(750,000)(750,000)(750,000)
Gas Tax Revenue (1,610,446)(1,742,928)(1,742,928)(1,742,928) (1,742,928)(1,812,645)(1,812,645)(1,812,645)(1,812,645)
Interest and Penalties (383,874)(506,794)(331,000)(331,000) (331,000)(331,000)(331,000)(331,000)(331,000)
Investment Income (8,007,908)(8,102,397)(3,860,000)(3,860,000) (3,860,000)(3,860,000)(3,860,000)(3,860,000)(3,860,000)
Misc Grants (18,400)(18,400)(20,000)(20,000) (20,000)(20,000)(20,000)(20,000)(20,000)
Misc Recoveries (616,609)(474,995)(278,853)(278,853) (293,853)(293,853)(293,853)(293,853)(293,853)
OAP Revenue (339,719)(239,598)(250,000)(250,000) (250,000)(250,000)(250,000)(250,000)(250,000)
B.I.A. Levy (316,124)(326,442)(328,290)(328,290) (345,000)(345,000)(345,000)(345,000)(345,000)
School Tax Levy - Res (13,426,632)(13,992,312)(13,996,205)(13,996,205) (14,275,000)(14,275,000)(14,275,000)(14,275,000)(14,275,000)
School Tax Levy - Non Res (6,001,498)(6,902,722)(7,009,893)(7,009,893) (7,693,000)(7,693,000)(7,693,000)(7,693,000)(7,693,000)
Hospital Levy (2,573,998)(2,815,785)(2,830,520)(2,830,520) (3,198,200)(3,198,200)(3,198,200)(3,198,200)(3,198,200)
BCAA Levy (531,493)(564,378)(565,730)(565,730) (590,235)(590,235)(590,235)(590,235)(590,235)
MFA Levy (2,971)(3,088)(3,000)(3,000) (3,120)(3,120)(3,120)(3,120)(3,120)
Regional District Levy (1,775,973)(2,152,003)(2,129,205)(2,129,205) (2,360,082)(2,360,082)(2,360,082)(2,360,082)(2,360,082)
SIR Parcel Tax Levy (20,436)(18,385)(18,385)(18,385) (17,900)(17,900)(17,900)(17,900)(17,900)
SIR Levy (229,802)(249,325)(249,570)(249,570) (269,000)(269,000)(269,000)(269,000)(269,000)
911 Levy (469,585)(513,337)(518,640)(518,640) (506,635)(506,635)(506,635)(506,635)(506,635)
Hotel Room Tax (MRDT) (1,160,097)(1,214,335)(1,000,000)(1,000,000) (1,000,000)(1,000,000)(1,000,000)(1,000,000)(1,000,000)
Electric (1,485,896)(1,593,393)(1,628,259)(1,628,259) (1,783,305)(1,783,305)(1,783,305)(1,783,305)(1,783,305)
Library (188,800)(188,800)(188,800)(188,800) (188,800)(188,800)(188,800)(188,800)(188,800)
Operating Transfers (1,321,930)(1,531,205)(1,314,778)(1,314,778) (1,522,548)(1,522,548)(1,522,548)(1,522,548)(1,522,548)
Facilities - RCMP (56,100)(57,222)(58,365)(58,365) (59,500)(60,690)(61,904)(63,142)(64,405)
Sewer Utility (955,292)(1,016,824)(1,151,685)(1,151,685) (1,150,659)(1,150,659)(1,150,659)(1,150,659)(1,150,659) Storm Water (80,000)(81,000)(82,000)(82,000) (83,000)(83,000)(83,000)(83,000)(83,000)
(30,000)(30,000)(30,000)(30,000) (30,000)(30,000)(30,000)(30,000)(30,000)
Climate Action (187,908)(257,803)(226,000)(226,000) (209,083)(209,083)(209,083)(209,083)(209,083) Grants - (29,860)(30,200)(30,200)
(255,000)(255,000) (275,000)(100,000)-
(1,748,177)(1,792,088)(1,551,077)(1,551,077) (1,468,960)(1,120,000)(820,000)(520,000)(520,000)
General Surplus - - (395,085)(1,109,246)
Multi-Material BC (287,500)(287,500)(429,000)(429,000)
(690,000)- (1,125,000)(1,181,250)(1,240,313)(1,302,328)(1,367,445) Amortization Offset (8,778,828)(9,871,276)(8,779,000)(8,779,000) (9,875,000)(9,875,000)(9,875,000)(9,875,000)(9,875,000)
Change 2025 budget to 2026 budget: $ Change $(2,267,335) % Change (4.43)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($3.1M) Increased revenue for 6.26% property tax increase.
($600k) Non-Market Change estimate for 2026.
(6,069)(2,957)(2,500)(2,500) (2,500)(2,500)(2,500)(2,500)(2,500)
(12,353)(21,670)(15,000)(15,000) (15,000)(15,000)(15,000)(15,000)(15,000)
(932)- - -
(5,563)(1,180)(5,000)(5,000) (5,000)(5,000)(5,000)(5,000)(5,000) Sewer
(5,280)(19,843)(24,400)(24,400) (26,000)(26,000)(26,000)(26,000)(26,000)
(6,743)(21,149)(24,400)(24,400) (26,000)(26,000)(26,000)(26,000)(26,000) Water
Change 2025 budget to 2026 budget:
$ Change $78,839
% Change % 8.69
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$10k Increase for legal budget.
$11k Increase for safety licenses.
Accounting (10,916)(15,817)(16,000)(16,000) (16,000)(16,000)(16,000)(16,000)(16,000)
Building and License (54,482)(49,220)(55,000)(55,000) (55,000)(55,000)(55,000)(55,000)(55,000)
Bylaw Enforcement (4,489)(6,971)(3,950)(3,950) (63,950)(63,950)(63,950)(63,950)(63,950)
Communications (35,871)(21,847)(55,000)(55,000) (55,000)(55,000)(55,000)(55,000)(55,000)
Development Services (20,833)(10,602)(9,321)(9,321) (12,300)(12,300)(12,300)(12,300)(12,300)
Electric (12,860)(16,516)(23,000)(23,000) (26,500)(27,250)(28,023)(28,818)(29,638)
Engineering Services (43,508)(46,880)(50,000)(50,000) (50,000)(50,000)(50,000)(50,000)(50,000)
Facilities (158,477)(40,187)(40,000)(40,000) (40,000)(40,000)(40,000)(40,000)(40,000)
Fire Services (14,354)(8,636)(23,000)(36,000) (38,000)(38,000)(38,000)(38,000)(38,000)
General Government/Utility Overhead Credit (551,171)(586,700)(602,867)(602,867) (638,639)(638,639)(638,639)(638,639)(638,639)
Human Resources & Safety (14,673)(16,380)(17,000)(17,000) (17,000)(17,000)(17,000)(17,000)(17,000)
Land Management (219)(414)-Legislative Services (516)(41,115)(32,000)(32,000) (30,000)(30,000)(30,000)(30,000)(30,000)
Mayor and Council (74)- -
Museum (2,845)(2,282)(2,500)(2,500) (2,500)(2,500)(2,500)(2,500)(2,500)
Operations (2,729)-
Procurement (34,269)(27,143)(40,500)(40,500) (30,500)(22,500)(22,500)(22,500)(22,500)
Public Works - Fleet (8,419)(12,699)(7,175)(7,175) (7,175)(7,175)(7,175)(7,175)(7,175)
Public Works - General (8,579)(3,875)(6,695)(6,695) (7,300)(7,300)(7,300)(7,300)(7,300)
(33,012)(33,970)(35,966)(35,966) (37,100)(37,700)(38,312)(38,936)(39,573) Revenue and Collections (7,201)(3,363)(7,950)(2,650) (2,703)(2,757)(2,812)(2,868)(2,926) Sewer Utility (1,382)(1,459)(3,560)(3,560) (3,560)(3,560)(3,560)(3,560)(3,560) Water Utility (356)(8,271)(8,700)(8,700) (8,700)(8,700)(8,700)(8,700)(8,700) To t al A ll o cat i on s Ou t (1,021,235) (955,538) (1,040,184) (1,047,884) (1,141,927) (1,135,331) (1,136,771) (1,138,246) (1,139,761)
Change 2025 budget to 2026 budget:
$ Change $240,160 % Change % 8.15
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$110k Increase for licensing and migration of accounting software to Cloud.
$30k Increase for equipment maintenance licenses.
$21k Increase for communication system annual costs.
Change 2025 budget to 2026 budget:
$ Change $44,207
% Change % 7.14
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$100k Increase for election, which is offset by transfer from Election Reserve.
($60k) Decrease in legal to match 5 year average.
Change 2025 budget to 2026 budget:
Change 2025 budget to 2026 budget: $ Change $22,173
Change 2025 budget to 2026 budget:
$ Change $(26,539)
% Change (7.14)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($39k) Decrease for one time purchase in 2025 for racking in new storage area.
Contributions (100)(50)- -
Change 2025 budget to 2026 budget:
$ Change $23,255
% Change % 15.62
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($25k) Decrease in postage costs.
Animal Control $(114,051)$(107,470)$(117,000)$(117,000) $ (117,000)$(117,000)$(117,000)$(117,000)$(117,000)
Building and License (1,987,831)(2,671,074)(2,487,000)(2,487,000) (2,543,350)(2,591,091)(2,650,263)(2,700,911)(2,758,078)
Bylaw Services (918,970)(1,109,152)(1,143,000)(1,140,000) (1,180,700)(1,180,700)(1,180,700)(1,180,700)(1,180,700) Fire Services (1,124,025)(1,109,320)(1,213,500)(1,313,500) (1,149,500)(1,149,500)(1,149,500)(1,149,500)(1,149,500) RCMP (527,470)(727,832)(621,968)(605,468) (616,000)(616,000)(616,000)(616,000)(616,000)
Change 2025 budget to 2026 budget: $ Change $6,768
(1,691,350)(1,739,091)(1,798,263)(1,848,911)(1,906,078)
(1,987,831)
Change 2025 budget to 2026 budget: $ Change $43,709
Change 2025 budget to 2026 budget:
$ Change $150,988 % Change % 12.52
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$28k Reduction in ticket revenues based on actual revenues received.
($21k) Decrease for lease for amalgamation of Bylaw back to City Hall.
$72k Increase for 2 additional Bylaw Officer seasonal positions.
$60k Increase for new call tracking system.
Emergency Recoveries$(55,534)$(21,625)$(25,000)$(25,000) $ (25,000)$(25,000)$(25,000)$(25,000)$(25,000)
Misc Recoveries (39,852)(40,402)(10,000)(10,000) (10,000)(10,000)(10,000)(10,000)(10,000) Mutual Aid/Service Contracts(874,979)(869,938)(880,000)(880,000) (910,000)(910,000)(910,000)(910,000)(910,000)
Misc Grants (70,693)(7,000)- -
Permitting Fees (2,104)(3,769)(6,500)(6,500) (4,500)(4,500)(4,500)(4,500)(4,500)
Provincial Grants (80,863)(166,586)(292,000)(392,000)
Change 2025 budget to 2026 budget:
$ Change $608,582
% Change % 6.76
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $234k Increase for 2 additional firefighter positions.
Change 2025 forecast to 2026 budget: $ Change $(98,400) % Change (26.51)%
Changes in net operating budget from 2025 forecast to 2026 budget are primarily due to:
($38k) Reduction for Remote Guard Project reducing for final year.
($75k) Reduction for Community Wellness initiative complete in 2025.
Change 2025 budget to 2026 budget:
$ Change $369,135 % Change % 2.40
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $152k Increase for 1 RCMP Crime Analyst member..
Public Works - Fleet $(2,129,326)$(2,316,945)$(2,314,680)$(2,314,680) $ (2,471,430)$(2,504,213)$(2,537,651)$(2,571,758)$(2,606,548)
Public Works - General (27,074)(21,563)-Storm Water (1,182,807)(1,511,321)(1,964,700)(1,964,700) (2,597,590)(3,376,867)(4,389,927)(5,706,905)(7,418,977)
Street Lighting (22)- -Traffic Control (6,351)(6,099)- -
(16,000)(8,500)(15,000)(15,000) (14,300) (24,000)(14,100)(15,300)(15,400)
1,2493,5154,5004,500
4,5004,5004,5004,5004,500
RCMP Fleet Recoveries (73,886)(64,980)(49,000)(49,000) (49,980)(50,980)(51,999)(53,039)(54,100) Fleet Hourly Charges (1,437,603)(1,558,106)(1,558,000)(1,558,000) (1,589,160)(1,620,943)(1,653,362)(1,686,429)(1,720,158) Fleet Pool Charges (533,669)(649,060)(677,680)(677,680) (832,290)(832,290)(832,290)(832,290)(832,290) Other Revenue (39,207)(44,799)(30,000)(30,000)
(2,129,326) (2,316,945)
Building and License
(33,000)(32,500)(32,500)(32,500) (39,000)(39,000)(39,000)(39,000)(39,000)
Bylaw Enforcement (49,500)(62,423)(61,000)(61,000) (61,000)(61,000)(61,000)(61,000)(61,000)
Legislative Services (11,000)(13,000)(13,000)(13,000) (13,000)(13,000)(13,000)(13,000)(13,000)
Electric (66,560)(72,600)(109,860)(109,860) (118,410)(118,410)(118,410)(118,410)(118,410)
Engineering Services
(11,000)(13,000)(13,000)(13,000) (13,000)(13,000)(13,000)(13,000)(13,000)
Facilities (73,000)(80,000)(80,000)(80,000) (73,500)(73,500)(73,500)(73,500)(73,500)
Fire Services (412,277)(453,755)(420,000)(420,000) (475,000)(475,000)(475,000)(475,000)(475,000)
Information Technology (5,500)(6,500)(6,500)(6,500) (6,500)(6,500)(6,500)(6,500)(6,500)
Public Works - General (38,399)(41,432)(39,840)(39,840) (41,400)(41,400)(41,400)(41,400)(41,400)
Parks (61,000)(100,000)(105,250)(105,250) (113,160)(113,160)(113,160)(113,160)(113,160)
Public Works - Roads & Maintenance -
(66,000)(66,000)(66,000)(66,000)(66,000)
Public Works - Solid Waste Disposal (5,500)(6,500)(6,500)(6,500) (6,500)(6,500)(6,500)(6,500)(6,500)
Procurement (6,000)(6,000)(6,000)(6,000) (13,000)(13,000)(13,000)(13,000)(13,000)
Change 2025 budget to 2026 budget: $ Change $181,937
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($100k) Decrease in budgeted fuel.
Public Works - Cemetery (11,564)(11,768)(9,851)(9,851) (10,349)(10,513)(10,682)(10,857)(11,037)
Public Works - Fleet (30,517)(30,985)(46,632)(46,632) (49,027)(49,804)(50,606)(51,434)(52,289)
Parks (37,004)(47,073)(59,106)(59,106) (62,092)(63,076)(64,092)(65,141)(66,223)
Public Works - Roads & Maintenance (243,401)(254,800)(264,768)(264,768) (283,415)(287,913)(292,557)(297,353)(302,304)
Public Works - Solid Waste Disposal (42,132)- - - -----
Public Works - Transit (37,912)(53,075)(50,240)(50,240) (53,853)(54,707)(55,588)(56,497)(57,437)
Sewer Utility (249,191)(272,215)(321,280)(321,280) (334,188)(339,482)(344,949)(350,594)(356,422)
Storm Water (92,031)(98,040)(115,093)(115,093) (120,955)(122,872)(124,850)(126,893)(129,003) Water Utility (364,754)(393,070)(438,300)(438,300) (456,844)(464,081)(471,555)(479,271)(487,238)
Repairs & Maintenance - Roads and Related Infrastructure1,639,4601,718,4871,789,0851,789,085 1,915,9881,934,8071,954,0021,973,5941,993,575 Salaries and Wages - 50,825-Small Equipment,
Change 2025 budget to 2026 budget:
$ Change $196,198 % Change % 5.95
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $108k Increase for 2 Works Maintenance positions to shift from seasonal to full time.
Change 2025 budget to 2026 budget:
$ Change $(571,913) % Change (45.88)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($633k) Revenue increase for a 30% rate increase and anticipated growth per the utility rate review offset by transfer to reserve.
Change 2025 budget to 2026 budget:
$ Change $(85,180)
% Change (18.78)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($100k) Decrease in lighting projects.
Change 2025 budget to 2026 budget:
$ Change $(64,626) % Change (23.92)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($70k) Decrease for change in methodology for annual licensing.
Change 2025 budget to 2026 budget:
$ Change $259,650 % Change % 14.87
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $204k Increase for service contract increase.
Change 2025 budget to 2026 budget:
$ Change $(209,561)
% Change (14.42)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$100k Increase for Council directed Downtown Plan.
($315k) Decrease for completion of housing initiatives that were grant funded.
Change 2025 budget to 2026 budget:
$ Change $(68,000) % Change (24.77)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($140) Decrease for Okanagan Lakeshore/Esplanade Area Plan completed in 2025. $75k Increase for North Gateway Plan.
Change 2025 budget to 2026 budget:
$ Change $(200,365)
% Change (62.73)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($35k) Increase in revenue for additional rental opportunities.
($120k) Decrease in facilities costs mainly related to demolitions.
Change 2025 budget to 2026 budget:
$ Change $(41,294)
% Change (7.88)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($50k) Revenue reduction due to provincial legislation changes.
Library $(298,573)$(334,081)$(616,406)$(616,406) $ (317,653)$(285,426)$(285,426)$(285,426)$(285,426) Museum (99,308)(38,066)(86,500)(86,500) (37,500)(37,500)(37,500)(37,500)(37,500)
(129,399)(231,866)-Recreation (2,156,842)(2,557,158)(2,369,433)(2,363,433) (2,631,700)(2,655,540)(2,679,858)(2,704,662)(2,729,958) SOEC Complex (237,672)(262,873)(549,747)(549,747) (256,048)(259,968)(263,967)(268,045)(272,205)
1,803,1031,976,2432,303,7192,303,719 2,077,2772,062,6822,096,8662,115,2102,133,920
Change 2025 budget to 2026 budget:
$ Change $72,311
% Change % 4.29
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: $129k Salary increases for contract negotiations and inflationary increases.
Revenue and expenses have equally decreased for a one time grant ending of $234k and one time donations of $87k in 2025.
Change 2025 budget to 2026 budget: $ Change $6,272
Change % 1.77
Change 2025 budget to 2026 budget:
$ Change $285,684
% Change % 6.70
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$152k Increase for additional Arborist position and continued implementation of the Urban Forest Management Plan.
$125k Increase for new agreement to maintain school fields for recently closed schools.
Aquatics $(791,180)$(1,007,408)$(949,700)$(949,700) $ (1,020,000)$(1,021,500)$(1,023,030)$(1,024,591)$(1,026,182)
Facility Rentals (864,835)(1,017,326)(908,884)(908,884) (1,035,000)(1,052,500)(1,070,350)(1,088,558)(1,107,127)
Misc Recoveries (54,759)(70,865)(137,700)(137,700) (137,700)(137,700)(137,700)(137,700)(137,700)
Misc Grants - - (12,300)(12,300)
Programs (446,068)(461,559)(360,849)(354,849) (439,000)(443,840)(448,778)(453,813)(458,949)
(2,156,842) (2,557,158) (2,369,433) (2,363,433) (2,631,700)
Aquatics 616,258904,231844,000844,000 1,092,0001,113,3501,135,1271,157,3401,179,996
Change 2025 budget to 2026 budget:
$ Change $821,550
% Change % 28.21
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($262k) Additional revenue for higher usage and increased hours.
$248k Increase for additional program offerings.
$165k Increase for increased debt borrowing costs for updated borrowing rates.
$605k Increased facility operating costs for increased cleaning and maintenance due to increased usage and additional recreation facilities (Power Street Childcare Centre, Kings Park Change Rooms).
Change 2025 budget to 2026 budget:
$ Change $869,741 % Change % 43.17
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
$500k Increase for additional costs for Vees contract.
$271k One time marketing agreement revenue received in 2025.
Change 2025 budget to 2026 budget:
Change 2025 budget to 2026 budget: $ Change $(78,510) % Change (11.06)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($156k) Increase in user fees.
$43k Increase over 2025 for Solid Waste Coordinator, which is funded by the Multi-Material BC Reserve.
Change 2025 budget to 2026 budget:
$ Change $9,943 % Change % 3.07
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
In 2024 City received funding for 3 years, which is transferred to reserve to fund future year initiatives.
2026 Climate Action Initiatives are reserve funded and include:
- Food waste accelerator fund $35k
- Clean Air update $25k
- Blue skies transportation fund $30k
- Solar Study $20k
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R ev e n ue
Electric User Fees
$(43,955,676)$(45,317,005)$(51,283,232)$(51,283,232) $ (52,834,420)$(57,061,174)$(61,626,068)$(66,556,156)$(71,880,652)
Energy Retrofit Loan Program(44,636)(17,787)(74,305)(74,305) (71,375)(71,375)(71,375)(71,375)(71,375)
Misc Revenue (153,019)(180,576)(164,698)(164,698) (194,500)(195,460)(196,439)(197,438)(198,457)
Other Contributions (918,038)(1,271,707)- -
Pole Rental (235,523)(246,951)(262,000)(262,000) (278,000)(300,240)(324,259)(350,200)(378,216)
Service Recoveries (146,513)(125,125)- -
Tra n sfe r f ro m S urpl u s/ Re s erv e s
Tra n sfe r f ro m S t at u t o ry
R es erv e s
Electric Capital (4,013,720)(4,697,011)- -
To t al Tra a nsf e r fro m S t a t ut o ry
R es erv e s (4,013,720) (4,697,011) - -
Tra n sfe r f ro m No n - S t at u t o ry
R es erv e s
Electric Surplus (1,963,107)(1,226,803)(4,008,683)(4,008,683) (4,534,333)(3,502,577)(2,272,165)(733,275)1,065,949
General Surplus (346,009)(390,732)(740,000)(740,000) (740,000)(740,000)(740,000)(740,000)(740,000) Amortization Offset (2,683,052)(2,047,518)(2,685,000)(2,685,000) (2,050,000)(2,050,000)(2,050,000)(2,050,000)(2,050,000)
Change 2025 budget to 2026 budget:
$ Change $(1,055,050) % Change (17.27)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($1.6M) Increase in electric revenue for 2026 average rate increase of 8.0%, offset by lower consumption.
$1.0M Increase in electrical purchase costs offset by lower consumption.
($110k) Reduced technical assistance costs.
$114k Increase for new Electric Engineer position.
DCC - Water $(157,423)$(530,965)$(200,000)$(200,000) $ (200,000)$(200,000)$(200,000)$(200,000)$(200,000)
Irrigation Revenue (355,704)(377,275)(400,000)(400,000) (425,000)(425,000)(425,000)(425,000)(425,000)
Misc. Water Recoveries (167,595)(178,285)(209,739)(209,739) (184,830)(184,830)(184,830)(184,830)(184,830)
Other Contributions (399,756)(822,858)- -
Sale of Water (9,582,271)(10,384,006)(10,858,000)(10,858,000) (11,877,900)(12,993,671)(14,214,324)(15,549,719)(17,010,641)
Service Recoveries (7,382)(9,227)(7,000)(7,000) (9,000)(9,000)(9,000)(9,000)(9,000)
Service Recoveries (19,276)(21,860)(15,000)(15,000) (25,000)(25,000)(25,000)(25,000)(25,000)
t al Re ve n ue s (10,689,407) (12,324,476) (11,689,739) (11,689,739)
4,50030,000-
Tra n sfe r f ro m D CC
Tra n sfe r f ro m S t at u t o ry
R es erv e s Water Capital (3,905,493)(3,063,909)- -
To t al Tra a nsf e r F ro m S t at u t o ry R es erv e s (3,905,493) (3,063,909) -
Tra n sfe r f ro m No n - S t at u t o ry
R es erv e s
Water Surplus - -(1,274,470)(1,488,370) (1,316,741)(181,994)- -
Change 2025 budget to 2026 budget: $ Change $57,771
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to:
($1.0M) Increased revenues for an average 9.4% water user fee increase, offset by lower consumption.
$909k Increase in debt for Ellis 4 dam borrowing.
$100k Increase in debt interest for existing borrowing.
Change 2025 budget to 2026 budget:
Irrigation Revenue $(355,704)$(377,275)$(400,000)$(400,000) $ (425,000)$(425,000)$(425,000)$(425,000)$(425,000)
Misc. Water Recoveries (155,814)(132,329)(174,909)(174,909) (150,000)(150,000)(150,000)(150,000)(150,000)
Sale of Water (9,582,271)(10,384,006)(10,858,000)(10,858,000) (11,877,900)(12,993,671)(14,214,324)(15,549,719)(17,010,641)
Service Recoveries (7,382)(9,227)(7,000)(7,000) (9,000)(9,000)(9,000)(9,000)(9,000)
Change 2025 budget to 2026 budget:
$ Change $(1,099,579) %
(13.21)%
DCC - Waste Water (494,451)(889,379)(750,000)(750,000) (750,000)(750,000)(750,000)(750,000)(750,000)
Misc Grants (155,777)(173,697)(152,338)(152,338) (175,000)(175,000)(175,000)(175,000)(175,000)
Misc Sewer Recoveries (545,494)(557,837)(559,090)(585,710) (631,739)(642,307)(653,087)(664,083)(675,300)
Other Contributions (172,641)(163,972)-Sewer User Fees (8,432,281)(9,074,399)(10,297,000)(10,297,000) (11,080,000)(12,209,140)(13,453,452)(14,824,684)(16,335,782)
Sewer Capital (2,544,890)(2,184,598)- -
To t al Tra nsf e r fro m S t a t ut o ry R es erv
es erv e s Sewer Surplus - - (658,127)(493,625)
To t al Tra nsf e rs fro m
Change 2025 budget to 2026 budget:
$ Change $(615,980)
% Change (15.30)%
Changes in net operating budget from 2025 budget to 2026 budget are primarily due to: ($888k) Increase in sewer user fees for an average rate increase of 10.3%.
Change 2025 budget to 2026 budget:
$(13,515)
(1.39)%
Contributions (24,021)-
Change 2025 budget to 2026 budget:
Change $(891,763)
The City of Penticton, like many cities, is challenged to maintain, replace and extend the life of its aging infrastructure. Asset management and master plans assist in determining priorities for investment with an aim to provide sustainable services to the community.
The City’s capital structure includes seven segments: General Government Services, Protective Services, Fleet, Transportation, Roads & Utilities, Parks, Energy & Environment, and Treatment Plants. Funding for projects within these segments comes from a variety of sources including utility reserves, grants, borrowing, the electrical dividend and general capital reserves.
The capital budget is presented in two ways: by segment and by fund. The segment view outlines total project costs for each functional area of the City. The fund view presents the same projects categorized by funding source— general, electric, sewer, or water.
The projects detailed in this financial plan are guided by the City’s asset management program as well as planned investments to support the continued growth of the community.
The development of the Capital Plan requires extensive coordination with all applicable City departments. This process starts in the second quarter of the year and ensures that initiatives meet the City’s long-term vision as well as Council’s Priorities.
Project costs are estimated based on project expenditures including consideration of inflationary impacts, market conditions and other factors. These estimates are based on current assumptions and are subject to change, these may be amended during the year to reflect updated costs.
All capital submissions have been evaluated to ensure alignment with the City’s guidelines for tangible capital assets, if they do, they are further evaluated based on the minimum thresholds on the next table:
Where submissions were deemed to not meet the tangible capital asset thresholds, requests were included in the operating budget.
Capital requests are categorized into three types: renew, growth, and new. "Renew" refers to the replacement of an existing capital asset. "Growth" indicates a project eligible for development cost charge funding. "New" denotes a new asset that will provide additional services.
Capital requests are prioritized to guide funding decisions and work planning. The table below outlines five priority levels for categorizing capital projects, from vital to discretionary. This system helps ensure the maintenance of critical infrastructure and core services while considering strategic goals, operational efficiency, and funding constraints.
Vital A vital priority to maintain key infrastructure or delivery of core services. Exclusion of this project increases risk to the municipality in the short term (1-2 years).
Essential
Strategic
Optimal
Discretionary
An essential priority to maintain key infrastructure or delivery of core services. Exclusion of this project increases risk to the municipality in the medium term (3-5 years).
Capital works that have been specifically identified in the strategic plan or represents an increase in the capacity to achieve Council's strategic goals.
Capital works that optimize the infrastructure network and improve the effectiveness and efficiency of core services.
Capital works that have not been identified in the strategic or any master plans. Represents no risk to the municipality if it is not approved.
Council has approved several financial policies—including the Financial Management Policy, Reserve Policy, Debt Management Policy, and Electrical Dividend Policy—which guide decision-making and funding strategies. The City exercises prudence with reserve funding to safeguard the municipality's current and future financial viability. A graph below illustrates the various capital funding sources used in the annual capital plan.
2026 Capital Funding
Electric Fund Water Fund
Dividend Sewer Fund
Asset Sustainability Reserve
External Debt Financing
Storm Water, General Fund
Equipment Replacement Reserve
Canada-Community Building Fund
General Capital Reserve
DCC Roads & Highways Reserve
DCC Parks Reserve
DCC Sanitary Sewer Reserve
Future annual operating and maintenance costs include new ongoing costs associated with new or upgraded assets such as utilities, maintenance, custodial, etc. Impacts on operating costs from the capital program are incorporated into the City’s operating budgets as projects are completed.
In the past decade, the City has managed its capital investment with minimal external debt financing. This approach has reduced the overall impact to taxpayers, provided flexibility in times of financial crisis, built long-term sustainability and reduced overall borrowing costs. However, given the substantial level of capital investment anticipated over the next few years due to the aging of infrastructure and community growth, debt financing will be required to bridge cash flow gaps.
The City has used long-term borrowing to fund infrastructure projects that support growth in the community and that are repaid by Development Cost Charges (DCCs) collections. This borrowing may precede development and the use of long-term borrowing spreads the payment stream over a similar time frame to match the revenue stream. This ensures that these assets will be paid for by future DCC’s, rather than increasing taxes.
Current outstanding long-term debt at the end of 2024 totals $21M, and is forecasted to be $35M at the end of 2025. A trend of the City’s debt can be found on page 42.
The long-term debt principal and interest payments (in millions) for the City are as follows:
The Community Charter Section 174 and BC Regulations 254/2004 defines the debt limit for the City, which sets the total liability servicing limit at 25% of specific municipal revenues of the City for the previous year.
The City's combined external and internal total liability servicing limit should be maintained according to the limits set out in the City's Financial Management Policy.
S u m m ary y o f C ap i ta l P ro j e c ts
G e n e ra l G ov ern m e n t S e rv i ce s
P ro t ec t i v e S erv i ce s
Fl ee t
Tr a n sp o rt a t i on , Ro a d s & Ut i li t i e s
P a rk s
E n erg y & E n v i ro n m en t
Tr ea t m en t P l a n t s
FLT-9430ESSENTIAL Aerator (Replace Unit 9430)
FLT-52ESSENTIAL Aerial Truck (Replace Unit 52)
FLT-732ESSENTIAL Aerial Truck (Replace Unit 732)
FLT-49ESSENTIAL Arborist Truck (Replace Unit 49)
FLT-58ESSENTIAL Backhoe (Replace Unit 58)
FLT-71ESSENTIAL Backhoe (Replace Unit 71)
FLT-9413ESSENTIAL Barge Engine (Replace Unit 9413)
FLT-98AESSENTIAL Beach Cleaner (Replace Unit 98A)
FLT-75ESSENTIAL Boom Truck (Replace Unit 75)
FLT-B201ESSENTIAL Bush Truck (Replace Unit B-201)
Bush Truck (Replace Unit B-202)
Overseeder (Replace Unit 9460)
Snow Plows/Sanders/Blades (Replace Unit 86)
FLT-9425ESSENTIAL Sprayer (Replace Unit 9425)
FLT-77AESSENTIAL Street Sweeper (Replace Unit 77A)
FLT-756ESSENTIAL Tandem Dump Truck (Replace Unit 756)
Tandem Dump Truck (Replace Unit 91)
FLT-48ESSENTIAL Tractor (Replace Unit 48)
FLT-62ESSENTIAL Tractor (Replace Unit 62)
AWWTP-LWMP12ESSENTIAL Dewatering Cake Bin Room
AWWTP-LWMP10ESSENTIAL FOG Sump Structural Assessment & Repair
AWWTP-LWMP14ESSENTIAL Fourth Tertiary Filter Installation
AWWTP-LWMP03ESSENTIAL Instrumentation Upgrades
NMLR Pumps, Headworks, Bioreactor Gates & Third Secondary Clarifier
CAPITAL TYPE: RENEW
PROJECT SUMMARY:
The basic function of a water distribution system is to transport the water from the treatment facility to the customer. In addition, distribution systems may also provide storage, as well as provide flow and pressure adequate for fire protection. The role of sanitary sewer systems is to get wastewater to treatment plants without any of it leaking from the pipes or overflowing from manholes. Leaks and overflows can both contaminate groundwater and nearby water sources.
2026:
Water: Westminster Avenue from Cambie to Middle Bench (plus side streets) with sidewalk construction on Westminster.
Sanitary Sewer: McKenzie/McGraw Area relining (a “no dig” trenchless process where new epoxy-saturated pipe tubing is inserted to existing pipes, inflated, and cured in place).
CAPITAL TYPE: RENEW
CAPITAL PRIORITY: STRATEGIC
PROJECT SUMMARY:
In 2024, following thorough site analysis, Council approved a plan to build a new Fire Hall Headquarters at the Dawson Avenue location, while converting our existing facility at Nanaimo Avenue into a satellite station with better emergency response capabilities.
The preliminary design of the Fire Hall Headquarters was completed in March 2025. The design features a 2-storey mass timber building with 4 tandem fire apparatus bays, 8 dormitories, and a 4storey structural steel frame hose tower—totaling approximately 27,000 square feet. The Headquarters will house Fire Administration offices, including the Emergency Management Program and Fire Prevention teams. It will provide suitable operational space for training, equipment maintenance, decontamination, communications, and gear storage, while ensuring appropriate living quarters for firefighters during their 24-hour shifts.
This project will be delivered using the Integrated Project Delivery (IPD) method, which brings together the owner, architect, and contractors under one agreement. This collaborative approach prevents change orders, creates predictable outcomes, and ensures the team shares both responsibility and success.
Following the completion of the new Headquarters, we will continue our commitment to emergency response by transforming the Nanaimo Avenue facility. This $1M investment will create a specialized satellite station with improved living quarters, modernized operational spaces, and a dedicated Emergency Operations Centre for coordinating responses during critical incidents.
CAPITAL TYPE: RENEW
CAPITAL PRIORITY: STRATEGIC
PROJECT SUMMARY:
This project proposes the renewal of the aging irrigation system at McNicoll Park Rugby Site, which is approaching 40 years old. The system has exceeded its expected lifecycle and now presents significant operational and maintenance challenges for the Parks Department.
Repairs and troubleshooting have become frequent and costly, straining limited maintenance budgets and reducing irrigation efficiency. Additionally, opportunities for water conservation and operational savings remain largely untapped due to the outdated infrastructure. As part of the renewal, the existing turf areas will be upgraded to accommodate the new irrigation layout and improve field conditions, and the cinder track will be assessed. The project will cover approximately 21,500 m² of turf area, including converting the 2,975 m² track area to turf.
The planning and design will take place in 2026, followed by construction in 2027. This investment aligns with the City’s asset management strategy and supports the long-term sustainability of Penticton’s park infrastructure.
PROJECT SUMMARY:
The Crosswalk Improvement Program funds infrastructure upgrades for safer street crossings for all road users. It covers design, specifications, material procurement, and construction for crossing location improvements. The program includes curb extensions, signal upgrades, raised crosswalks, new signalization options (such as lead pedestrian intervals), and rapid flashing beacons. Safe crossings are essential to community connectivity, safety, and livability.
We aim to enhance pedestrian and cyclist safety through two objectives: 1) reducing accidents by installing pedestrian signals, crosswalks, refuge islands, and improving lighting and signage; and 2) ensuring accessibility by following the Transportation Association of Canada (TAC) and BC Active Transportation Guide standards to create crossings safe for children, elderly, and disabled individuals.
Currently, the City has 26 requests for new crosswalks in various locations around the City. Over the next few years, the City plans to review and address the following locations:
2026: Vancouver & Abbott (existing); Duncan & OK College (existing), 1 new (location TBD).
2027: KVR Trail & Edmonton (existing) & Main; Duncan & Moosejaw (existing), 1 new (location TBD).
CAPITAL TYPE: RENEW
CAPITAL PRIORITY: STRATEGIC
PROJECT SUMMARY:
McGregor Park, one of Penticton’s oldest neighbourhood parks, constructed in the early 1980s, needs renewal due to the aged assets in the park. The park’s infrastructure lacks aesthetic appeal and functionality, with significant deterioration evident throughout its infrastructure. As a result, it no longer meets current standards for accessibility, safety, and provides limited recreational value.
McGregor Park is near the old Parkway School site and although Parkway is now a closed school, it still has community value in the park and recreation assets that exist today. As part of the site investigation for McGregor Park, consideration will be given to the need to complement what is available from the parks and recreation context at the adjacent park and recreational properties.
Public engagement will be conducted in 2026 with the neighbourhood to discuss future needs of the park and help shape the vision for the renewed park. The proposed budget for 2027 is an estimate only, as the scope will be determined through the 2026 engagement and review of neighboring park and recreation assets. The proposed upgrades are in line with the Parks and Recreation Masterplan asset renewal guidelines, recommending replacement cycles of 20 years for playgrounds. The planning and design will take place in 2026, followed by construction in 2027.
CAPITAL TYPE: RENEW
CAPITAL PRIORITY: ESSENTIAL
PROJECT SUMMARY:
The Pavement Rehabilitation Program is an improvement initiative that focuses on comprehensive pavement rehabilitation through assessment, repair identification, and implementation of measures to enhance safety and functionality. The objective is to extend pavement service life and improve structural capacity through strategic resurfacing, restoration, and rehabilitation techniques.
Over the next few years, the City plans to review and address the following roads:
CAPITAL PRIORITY: STRATEGIC
The City is enhancing safety around schools and playgrounds through the Safe Routes to School program. This initiative aims to create a secure environment for students to walk, wheel, and roll to school. The process involves collaborating with the entire school community to identify ways to make active travel safer and more accessible.
The safe route plans for both Columbia and Skaha Lake elementary have been completed and recommended changes to Manitoba Street to support the relocation of Carmi to KVR Elementary are in the process of being implemented. The planning process is also currently underway for Wiltse and Queen’s Park elementary.
In 2026, the City will be supporting the implementation of measures recommended in the Wiltse and Queen’s Park elementary plans, along with other low-cost projects from all plans.
PROJECT SUMMARY:
Sidewalks play a crucial role in urban life. They serve as pathways for pedestrians, improving connectivity, encouraging walking and support transit users. Additionally, sidewalks function as public spaces, activating streets both socially and economically. Investing in safe, accessible, and wellmaintained sidewalks is essential for cities. The City has an annual program which prioritizes project areas each year. Plans for upcoming years include: 2026:
Manitoba Street Multiuse Path, Penticton Avenue to Duncan Avenue, 730 meters 2027:
Phoenix Avenue, 70 meters
Cornwall Drive, Cornwall Court to Baskin Street, 287 meters
McKenzie Street, Kinney Avenue to McGraw Street, 621 meters
CAPITAL TYPE: RENEW
CAPITAL PRIORITY: ESSENTIAL
PROJECT SUMMARY:
This project will replace the outdated jumbotron and scoreboard system at the South Okanagan Events Centre (SOEC) in Penticton. The current display technology is obsolete and requires upgrading to meet modern standards for sports and entertainment venues.
The SOEC, Penticton's premier venue, hosts hockey games, concerts, and conventions. A new jumbotron and scoreboard system will enhance the spectator experience, boost the venue's competitiveness, and strengthen its position in the regional market.
This upgrade will deliver higher resolution displays that improve the spectator’s experience while increasing reliability and reducing maintenance costs. The new system will provide greater flexibility for advertising and sponsorship opportunities, which will result in increased revenue generation and help the venue remain competitive in attracting events. This improvement also aligns with the City's asset management strategy for recreational facilities.
u m m ary y o f C ap i ta l P ro j e c ts
Projectsareidentifiedwithestimatedcostsatahigh-levelandhavenotbeenfullyscopedorquotednorhastheyearoftheprojectbeen determined.Thepurposeofthislistingistoprovidevisibilitytopotentialadditionalcapitalneedsbeyondthoseincludedorfundedwithinthis planandthereisnointenttobeginthesewithoutapprovedfunding.Pleasenotethatthislistisnotexhaustiveanddoesnotincludeallprojects thatmayexistincludingthosewithinmasterplanswithnoestimatedcostsassociated.
Between May 20 and June 1, 2025, the City of Penticton invited residents to participate in the latest edition of the Community Survey. This initiative asked residents to evaluate City services and share their perspectives on the City’s strategic direction. Conducted every few years, the survey provides valuable insights into community sentiment and helps guide Council’s priorities – building on the last survey conducted in 2023.
A total of 1,635 residents took part in the 2025 survey, offering feedback that informs both operational planning and budget decisions. The full results are available at www.shapeyourcitypenticton.ca where you can explore how the community rated the current state of Council priorities and City services.
The 2025 Community Survey results determined areas for Council's focus in their commitment to their priorities of Safe & Resilient and Livable & Accessible. These strategic pillars reflect the community's desire for secure, inclusive, and vibrant Penticton.
for each of the measures were converted into an Overall Average Rating to allow for comparisons
Residents were asked to consider how the City should respond to the increasing costs of delivering services, maintaining and replacing infrastructure, and advancing community priorities. Participants ranked six potential approaches, providing valuable insight into the community’s preferences for balancing affordability, sustainability, and service quality. These responses help guide Council’s decision-making as we plan for a resilient and financially responsible future.
Encourage growth to share costs across a larger tax base (2.61)
Increase fees to pass on costs to users (2.89)
Increase taxes to maintain service at current levels (3.49)
Increase taxes to enhance or expand services (3.85) Reduce services to reduce taxes (4.28)
The 2025 Community Survey results reaffirm Council’s commitment to priorities that residents value most: Safe & Resilient and Livable & Accessible. These strategic pillars reflect the community’s desire for a secure, inclusive, and vibrant Penticton.
Reduce crime and enhance safety
Balanced response to safety and livability
SAFE & RESILIENT
Facilitate support for public safety and partnerships
Preparedness and resiliency
Support attainable and accessible housing
Minimize environmental impact and adapt to climate change
LIVABLE & ACCESSIBLE
Support community vibrancy and culture
Community building partnerships
Scores for each of the measures were converted into an Overall Average Rating to allow for comparisons
Survey participants were invited to identify their top priorities from a list of areas where the City could focus future investments. The top selections – chosen by more than half of respondents – included parks and sports fields, community cleanliness, fire and emergency response, sanitary sewer, and storm water. These results help guide Council’s budget decisions and ensure investments align with what matters most to the community.
Parks and sports elds
Community cleanliness
Fire and emergency response
Sanitary sewer
Storm sewer
Drinking water quality
Electric utility
Police services
Recreation programs
Arts and culture
Facilities management and maintenance
Library
Museum
Bike lanes and sidewalks
Road maintenance
PENTICTON is located on the ancestral territory of the Syilx/Okanagan people. Its name, from the Interior Salish word snpinktkn, is commonly translated as “a place to stay forever,” or more accurately, “a place where people live year-round.”
Life in Penticton is about easy access to all the things that matter most. It’s about lakes, trails, bike routes, and other recreational activities outside your door. It’s a simpler life, with long sunny days and friendly faces greeting you hello.
The City’s START HERE 2024 Campaign captured the following:
1,725 km2
Penticton's economy is diverse, balancing traditional strengths in agriculture and manufacturing with public services (healthcare, government, and education) and a growing innovation sector, including tech, and a vibrant culinary scene.
The city is experiencing signi cant growth, driven by an increasing population, and was recognized as one of Canada's most livable cities according to the Globe and Mail's 2024 rankings
Visit our website for more details: www.penticton.ca/startherepenticton/latestupdates/ penticton-ranks-ninth-most-livable-city-canada
Penticton is an entrepreneurial city, where big ideas can turn into big business. It’s the hub of British Columbia’s Okanagan-Similkameen region, with more than 3,600 businesses serving 100,000 people throughout the region.
Getting to Penticton is easy, with access to major highways and the U.S. border. Penticton airport o ers direct ights to Vancouver and Calgary and has easy access to the Kelowna International Airport for international ights.
Ű 100MH 100 More Homes Penticton
Ű AWWTP Advanced Waste Water Treatment Plant
Ű BCA BC Assessment
Ű BCEDA BC Economic Development Association
Ű BCH Build Canada Homes
Ű BEO Bylaw Enforcement Officer
Ű BTM Business Tax Multiplier
Ű CCAP Community Climate Action Plan
Ű CDSA Controlled Drugs and Substances Act
Ű CEEP Corporate Energy and Emissions Plan
Ű CFSEU Combined Forces Specialized Enforcement Unit
Ű CMHC Canada Mortgage and Housing Corporation
Ű CPI Consumer Price Index
Ű CPTED Crime Prevention Through Environmental Design
Ű CSA Canadian Standards Association
Ű CSWB Community Safety and Wellbeing Plan
Ű CUPE Canadian Union of Public Employees
Ű DCC Development Cost Charge
Ű DPBIA Downtown Penticton Business Improvement Association
Ű EDMA Emergency Disaster and Management Act
Ű EGBC Engineering and Geoscientists of BC
Ű FOIPPA Freedom of Information and Protection of Privacy Act
Ű FTE Full Time Equivalent
Ű GFOA Government Finance Officers Association
Ű HEART Homeless Encampment Action Response Team
Ű HEARTH Homeless Encampment Action Response Temporary Housing
Ű HRVA Hazard Risk Vulnerability Analysis
Ű IAFF International Association of Fire Fighters
Ű IBEW International Brotherhood of Electric Workers
Ű ICBC Insurance Corporation of British Columbia
Ű ICRT Integrated Crisis Response Team
Ű IGR Intergovernmental Relations
Ű IMPACT Integrated Municipal Provincial Auto Crime Team
Ű IPD Integrated Project Delivery
Ű KVR Kettle Valley Rail
Ű LGA Local Government Act
Ű LGMA Local Government Management Association
Ű L.I.F.E. Leisure Involvement for Everyone
Ű MFA Municipal Finance Authority
Ű MIA Municipal Insurance Association
Ű NTU Nephelometric Turbidity Unit
Ű OBWB Okanagan Basin Water Board
Ű OCP Official Community Plan
Ű OFC Ooknakane Friendship Centre
Ű OVG Oak View Group
Ű PFD Penticton Fire Department
Ű PPMP Professional Practice Management Plan
Ű PRV Pressure Reducing Valve
Ű PSAB Public Sector Accounting Board
Ű PSCT Property Standards and Compliance Team
Ű PTCC Penticton Trade & Convention Centre
Ű RCMP Royal Canadian Mounted Police
Ű RDOS Regional District of Okanagan Similkameen
Ű RMS Records Management System
Ű SAIDI System Average Interruption Duration Index
Ű SAIFI System Average Interruption Frequency Index
Ű SHIP Social Housing and Infrastructure Plan
Ű SILGA Southern Interior Local Government Association
Ű SOEC South Okanagan Events Centre
Ű SOICS South Okanagan Immigrant and Community Services
Ű SOWINS South Okanagan Women in Need Society
Ű SRNA Sport & Recreation Needs Assessment
Ű TRC Truth and Reconciliation Commission
Ű UBCM Union of British Columbia Municipalities
Ű UFMP Urban Forest Management Plan
Ű UNDRIP United Nations Declaration on the Rights of Indigenous Peoples
Ű WTP Water Treatment Plant
Ű Accrual basis of accounting
Ű Accumulated surplus
Ű Amortization
Ű Appropriation
Ű Balanced budget
Ű Base budget
Ű Capital assets
Ű Capital expenditure
Ű Carryforward
Ű Community Charter
Ű Cost Centre
Ű Capital project
Ű Discretionary grant
Ű Electric dividend
Ű Debenture
A method of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent.
The balance in a fund that represents the accumulative excess in revenues over expenditures from prior years which has not been set aside for specific purpose.
Is the gradual reduction of debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity.
Term used to refer to the setting aside of monies into a reserve account or fund.
A plan of financial operations where revenues and transfers from all sources equal all expenses and transfers.
The initial budget that provides for the existing levels of service in the current year.
Is a long-term asset that is not purchased or sold in the normal course of business. Generally, it includes fixed assets.
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.
The process of transferring something from one period, stage or situation to another. Involves moving unused funds or balances to the next financial period.
The Provincial Legislation conveying many of the powers and responsibility to the City.
Within the City’s reporting structure a cost center refers to a specific director, manager, supervisor or division (see Department/Division/Branch).
Major construction acquisition or renovation/renewal activities, which add value to the City's capital assets or significantly increase their useful life.
Each year the City awards discretionary grants to organizations for the purpose of providing funding under general guidelines established by policy.
The funds that are collected through electrical user fees that recognize return on the City's investment for operating an electrical utility and are transferred from the Electrical Fund to the General Capital Fund.
A form of long-term corporate debt that is not secured by the pledge of specific assets.
Ű Depreciation
Ű Expenditure
Ű Financial Plan
Ű Fund
Ű Fund balance
Accounting method used to allocate the cost of a tangible or physical asset over its useful life.
The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service or settling a loss.
A Financial Plan is required each year under section 165 of the Community Charter, for the operating year and four following years, to authorize by bylaw the planned revenues and expenditures. The terms financial plan, and budget are often used interchangeably.
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.
The combined total of revenues, expenditures, debt payments, debt proceeds, and inter fund transfers for a specific fund.
Ű Infrastructure Facilities and improvements such as buildings, roads, sidewalks, storm drainage, waterworks, sanitary sewer systems.
Ű Modified accrual basis
Ű Official Community Plan
Modified accrual accounting recognizes revenues when they become available and measurable and with a few exceptions, recognizes expenditures when liabilities are incurred.
OCP is intended to define the vision of the community – how the community sees itself growing and developing in the future and ultimately what kind of place the community wants Penticton to be.
Ű Property taxation
Ű Reserve account
Ű Statutory reserve
Ű Non-Statutory reserve
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.
Part of the Accumulated Surplus that has been earmarked for future operating or capital expenditures.
A reserve fund is established by bylaw for a specified purpose as per the Community Charter.
A reserve fund is for a specified purpose but not established by bylaw.
Ű Utility
The City owns three utilities: electric, water, and wastewater. Storm 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.
