Kelowna property tax hike slashed

A proposed 2020 property tax increase for Kelowna residents has been slashed to 2.05 percent from 4.15 percent due to financial pressures that many residents are currently facing as a result of the COVID-19 pandemic.

The amended final 2020 Financial Plan was approved by city council on Monday.

The combined 2.05 per cent increase means the owner of a single-family home with an average assessed value of $676,100 in Kelowna will pay an annual increase of $43 in municipal taxes instead of the $86 approved in the provisional budget.

The City says the tax rate cut means it will have to reduce planned spending for new capital projects, defer or eliminate new positions and reduce operational budgets across departments.

“This year, the annual budget prioritizes keeping the taxation demand as low as possible while ensuring we can maintain essential services and continue to invest in important projects that will make a difference for our residents,” said Genelle Davidson, divisional director of Financial Services. “We are taking action to support our residents where we can as we work towards financial stability and eventually, economic recovery.”

She said anticipated revenue declines will be addressed with a combination of cost reductions, one-time funding from reserves and borrowing if necessary.

The City’s net 2020 operating budget is $148.8 million.

Residents will receive their property tax notices in late May.