City of Kelowna 2023 Financial Plan by City of Kelowna

FINANCIAL PLAN Kelowna, BC Canada Preliminary Budget

20 20223 Volume 1

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Financial Plan

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TABLE OF CONTENTS About this document ....................................... 5 2023 Council Changes ......................................6

INTRODUCTION & OVERVIEW Territory Acknowledgement ............................9 Message from the City Manager .................... 10 Award for Financial Reporting ........................ 12 Our Community ............................................. 13 Our City ......................................................... 14 Our Citizens ................................................... 15 Imagine Kelowna ........................................... 17 Priorities ........................................................ 19 Budget highlights ........................................... 23 Budget at a glance .................................... 23 Budgeting for Community Priorities ......... 25 General fund highlights ............................. 33 Airport and Utility fund highlights ............. 34

STRONG FINANCIAL MANAGEMENT Organizational chart ...................................... 37 Budget process .............................................. 38 Public Input ............................................... 38 Budget development ................................ 38 Budget cycle & timeline ............................ 38 Basis of accounting/budgeting ...................... 41 Financial principles & strategies .................... 42 Policies........................................................... 44 Financial planning policies ........................ 44 Revenue & expenditure policies ................ 44 Investment & cash management policies . 45 Capital strategies ..................................... 46 Funds & departmental relationship ............... 47 Municipal funds ........................................ 47 Reserve & fund equity .............................. 49 Debt management ................................... 52 Operating full-time equivalent (FTE) positions summary ........................................ 61

FINANCIAL SUMMARIES Financial Plan Summary ................................ 69 Analysis of tax demand ................................. 69 Revenues & expenditures .............................. 70

OPERATING BUDGET The City & its divisions .................................. 83 Operating budget summary .......................... 83 Summary of operating requests .................... 87 City Administration ....................................... 99 City Clerk .................................................... 105 Kelowna International Airport ..................... 113 Planning & Development ............................ 127 Partnerships & Investments ........................ 143 Infrastructure .............................................. 159 Water utility ............................................ 183 Wastewater utility ................................... 193 Active Living & Culture ................................ 203 Corporate & Protective Services ................... 217 Corporate Services ................................... 217 Community Safety ................................... 227 Fire Department ...................................... 239 Corporate Strategic Services ....................... 247 Financial Services ………. .............................. 261 General Revenues…………………….………… 273 Debt & Other ........................................... 277

CAPITAL BUDGET Capital budget summary ............................. 287 Capital funding summary ............................. 292 Capital investment operating impacts ......... 293 Summary of capital requests........................ 294 Airport ........................................................ 305 Fire .............................................................. 313 Information Services ....................................319 Real Estate & Parking .................................. 325 Building ....................................................... 333 Parks ............................................................343 Vehicle & Mobile Equipment ........................ 353 Transportation ............................................ 359 Water ...........................................................381 Wastewater .................................................393 Solid Waste ................................................. 401 Storm Drainage ...........................................411

CARRYOVER BUDGET Report to Council ......................................... 419 Carryover request three-year comparison .... 423 Summary of multi-year requests ................. 425 Summary of program requests .................... 427 Operating budget ........................................ 429 Summary of operating budgets............ 431 Operating request details .................... 437 Capital budget ............................................. 471 Summary of capital budgets ............... 473 Capital request details ......................... 482

FINAL BUDGET Report to Council ....................................... ..535 Financial summaries.................................... ..537 Analysis of tax demand .............................. ..537 General fund tax demand ............................ ..538 Utility funds – Final Budget ........................ ..538 Analysis of total revenues ........................... ..539 Analysis of total expenditures ..................... ..540 Use of tax dollar by service area .................. ..541 Ongoing budget impacts ............................ ..542 Financial Plan 2023-2027 ...............................543 Summary of Operating budgets ................. ..545 Operating request details ........................... ..547 Summary of capital budgets .........................553 Capital request details ................................ ..555

FINANCIAL PLAN Financial Plan ................................................. 563 Revenue sources & trends .............................. 564 Five-Year Financial Plan summary .................. 569 Operating summaries – General fund ............. 571 Operating summary – Utility funds................. 585 Capital summaries – General fund ................. 589 Capital summary – Utility funds ..................... 600

APPENDIX Supplemental information .............................. III Statistics ......................................................... VI Glossary .......................................................... XI Acronyms & Abbreviations .......................... XIV

2023 FINANCIAL PLAN

CITY OF KELOWNA

About this Document About this document is intended to provide a basic understanding of the Financial Plan and briefly describe the contents of each major section of this document. The Financial Plan provides detailed funding requirements over the next five years and serves as a policy document, operations guide, and communications tool. Council changes The Financial Plan Volumes are presented to Council as a recommendation from the City Manager. During budget deliberations, Council may choose to make changes to the presented budget resulting in a revised gross taxation demand and property owner impact for the year. This page summarizes all changes made by Council. Introduction & overview This section provides an introductory message from the City Manager outlining the priorities and challenges considered in the development of the Financial Plan. An overview of Our Community, Our City, and Our Citizens tells the story of what makes Kelowna a desirable place to live. Budget hightlights provide a summary of how we budget for and deliver on Council and Corporate priorities. Strong financial management This section discusses the City of Kelowna’s organizational structure, funds, debt, financial principles, strategies and policies, and goes into detail about the budget process. Financial summaries This section provides financial analysis of the tax demand, revenues and expenditures. The Financial Plan is made up of three main parts; General Revenues which are revenues not specifically attributable to or generated by any particular division, Operating Budgets which represent the total cost of operation offset by any direct revenues recognized in each division, and Capital Budgets which include capital requirements for the year summarized by capital cost centre and funding source. Operating budget This section starts with an overview of the City’s operating program and a full summary of all operating requests, followed by individual Division/Department sections that include organization charts and department descriptions; activities planned for the budget year; performance measures and a budget overview presenting information for year the completed year, the estimated/revised and the proposed/Preliminary year. This is followed by Priority One budget requests, included in budget totals, and then Priority Two, not included in budget totals, if applicable. Requests are shown in maintain, growth and new categories and contain a justification and the one‐ to three‐

year financial impact. Operating requests related to capital are included in the associated capital request and are marked on the operating summary with “CAP”. Operating requests with a vehicle or equipment capital impact are marked with a “V&E” on the summary sheet. Capital budget This section starts with financial analysis of the capital program including a list of operating impacts and a full summary of all capital requests. This is followed by individual capital cost centre sections that include detailed Priority One capital requests, and a summary of Priority Two requests if applicable. Capital requests are presented in the order of the Capital Plan reference number and marked as one of three types: renew, growth and new.Any operating impacts are included as part of the capital request and are marked with an “O&M” on the summary sheet. In cases where a vehicle or equipment is requested as part of a new position, the capital cost is presented as part of the operating request and marked on the capital summary with “OP”. Carryovers & Final Budget Multi‐year and unfinished projects that require budget to be moved to the next fiscal year are presented to Council in March, as part of the Carryover Budget–Volume . Final Budget – Volume is presented in April and includes final adjustments to the Financial Plan. This plan is mandated by the Community Charter to be approved by bylaw annually before May prior to the annual property tax bylaw adoption. Five‐Year Financial Plan The Five‐Year Financial Plan is mandated by the Community Charter to include a planning period of five years, the first being the year in which the plan is specified to come into force and the following years. Appendix Supplemental information including the City’s Citizen Survey results, Official Community Plan and Indicators Report, Community Trends report and various statistical information are provided for the reader. All reports are also available on kelowna.ca. For clarity of terms throughout the Financial Plan, a glossary and acronyms list is provided.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

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

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

Items added/deleted by Council – Final Budget – Volume Pending Council review.

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INTRODUCTION & OVERVIEW

2023 FINANCIAL PLAN

CITY OF KELOWNA

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

MESSAGE FROM THE CITY MANAGER I am pleased to present Council with the proposed City of Kelowna preliminary budget for 2023 and would like to convey my sincere appreciation to all City Staff who have practiced our corporate priority of Strong Financial Management in preparation of the budget that will be considered by City Council. On the heels of a pandemic and significant global economic change, I am proud to advise Council that our organization, in many ways, has never been stronger. Our secure financial position and fiscal innovation has served us well, enabling us to respond, adapt and rescale where necessary. We have healthy financial reserves, solid long-term investments, low debt, a moderate tax level, a strong asset management program, and we continue to generate 75 per cent of the City’s total revenue through sources other than annual taxation. While our pandemic recovery has been top of mind, the City’s growth also continues to heavily influence our financial decisions. Between 2016 and 2021, our city’s population increased 13.5 per cent, making it the fastest growing city in B.C., while having the third-fastest growing downtown in Canada. These and other economic indicators show Kelowna is thriving and investment in our city is more desirable than ever. However, with recent labour shortages, supply chain disruptions and an inflation rate not seen in almost 40 years, cities across Canada—and the residents and families that call them home—have faced challenges, financial and otherwise, since 2020. When faced with such challenges, our residents more than ever rely on the City to lean into our core principles and strategies for financial strength and stability, while we fulfill our mandate to serve the needs of a growing community and invest today for a strong Kelowna tomorrow. As City Manager, I believe our strategic ability to make sound financial decisions for the collective good of our community is one of our City’s greatest strengths—and our greatest responsibility. That ability is built on many things, including our staff and council’s commitment to our organizational values, to innovate to make things better, act as one team, serve proudly, and lead responsibly. However, at the core, it’s having a clear set of community priorities and Council approved strategies that guide our investment recommendations to Council. The Imagine Kelowna vision, the 2022 citizen survey, what we heard through the election, and our annual public progress reporting are all an integral part of prioritizing budget submissions. Every year, each budget brings with it unique challenges and opportunities. The proposed 2023 budget focuses on maintaining and expanding critical

infrastructure, and directing funding toward the highest needs of the community. Public safety continues to be a top priority for the City and residents. The federal government and National Police Federation recently negotiated a 24 per cent wage increase (retroactive to 2016), resulting in an estimated $12 million-plus impact to the City with annual ongoing wage increase costs. To help address this, and the increasing safety needs of the community, I am proposing the introduction of an annual one per cent public safety levy. If approved, the 2023 levy will be used to fund six additional RCMP members, two senior bylaw officers, and four fire fighters. The proposed levy would provide certainty to ongoing public safety funding for one of our highest community priorities and will allow for improved financial planning and forecasting for the future. Other investments in the proposed budget reflect the need to address growth, advance innovation and efficiency, and focus on the key priorities that have been identified through formal processes and the recent community conversation. The 2023 Financial Plan prioritizes: •

Financial prudence amid inflation to keep tax rate as low as possible

•

Protecting existing infrastructure and planning for a city of the future

•

Community safety to reduce risk, vulnerability and harm in our community

•

Social wellness to address issues such as homelessness and challenges related to affordable housing in our community

•

Transportation with a focus on active and alternative modes to help keep Kelowna moving, now and into the future

•

Digital transformation to improve operational efficiency, safeguard information, and make doing business with the City faster and easier

•

Protecting our natural environment and addressing climate action through the reduction of greenhouse gas emissions

As we welcome a new Council eager to work on the issues they heard through the election, we head into 2023 with energy and excitement. Guided by clear direction and our Imagine Kelowna principles, I am confident that working together, with the community, we will achieve the inclusive, welcoming, prosperous and sustainable future Kelowna residents deserve.

– Doug Gilchrist City Manager

2023 FINANCIAL PLAN

CITY OF KELOWNA

Award for Financial Reporting Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Kelowna, British Columbia, for its Annual Budget for the fiscal year beginning January 01, 2022. 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 one year only. We believe our 2023 budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. The City of Kelowna has received the GFOA Distinguished Budget Presentation Award for 21 consecutive years.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Our Community Lifestyle Located along the sandy shores of the Okanagan Lake, in the heart of the Okanagan Valley, Kelowna is a fourseason playground welcoming over two million visitors annually from around the world. With its proximity to water, beaches, hiking trails, ski hills, golf courses and the Okanagan Rail Trail, it’s a city that embraces outdoor adventure and an active lifestyle all year long. With over 40 wineries within a 20-minute drive, Kelowna is at the centre of the world-renowned Okanagan wine country and fruit growing industry. It is home to award-winning microbreweries, distilleries, and cideries deeply rooted in the local agricultural history, and its bustling urban centre offers a passionate farm to table network, outdoor markets, live music scene, galleries, theatre and unique shopping boutiques. Nearly all citizens (90 per cent) rate the quality of life in Kelowna as good or very good thanks to active/recreational opportunities, safety, its accessible location, job opportunities, and great weather. Growth Kelowna is rapidly evolving. Between 2016 and 2021, Kelowna’s population increased by 13.5 per cent making it the fastest growing city in B.C., while having the third-fastest growing downtown in Canada. As the twentieth largest metropolitan area in the country, it is becoming a more urban and dynamic city. By 2040, Kelowna is expected to be home to another 45,000 people. In 2021, for the first time, building permit values exceeded $1 billion. Jobs Kelowna is an economic powerhouse, home to robust traditional sectors like agriculture and construction, and burgeoning new sectors such as information technology. It is homebase for over 600 technology companies with over $1.8 billion in annual revenue, according to Accelerate Okanagan. The city boasts a diverse economy that also includes manufacturing, tourism, aviation and health care. Airport Kelowna International Airport (YLW) is the largest municipally owned and operated airport in Canada. YLW does not utilize municipal taxes as it is self-funded through user fees and charges. The aviation sector is essential for Canada’s post-pandemic recovery of revenue generation for local businesses, maintaining and creating jobs for residents, and encouraging investment in the local community. Each year YLW pays a portion of revenue to the City of Kelowna which helps to reduce taxes paid by residents. Education Kelowna is a hub of academic and trades training excellence. It is home to the Okanagan campus of the University of British Columbia, one of the world top public universities, and Okanagan College’s largest campus. Together, the two post-secondary schools welcome nearly 30,000 students a year. Health Kelowna offers world-class, state-of-the-art medical facilities offering the highest quality patient care. Interior Health Authority, headquartered in downtown Kelowna, and the Kelowna General Hospital serve as the leading health centre for the B.C. Interior, and a teaching hub for the UBC Okanagan medical school.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

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

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Our Citizens

The 2022 City of Kelowna Citizen Survey helped gauge public satisfaction with municipal programs and services, providing insights into citizens’ priorities. For information see Appendix A.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Kelowna on the Map

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The Vision At-a-glance

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

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

•

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

•

encourages curiosity and creativity: We learn continuously to respond and adapt to rapid change. We ffind innovative ways to meet social, economic and environmental challenges and opportunities.

•

recognizes the changing roles of individuals, businesses, governments and community organizations: The well-being of our city is a shared responsibility and everyone needs to do their part to seize opportunities for improvement.

Principles

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

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Draft principles and goals Principle 2 – Smarter: A community willing to learn, adapt and grow so we can thrive amid rapid change. Goal: Support innovation that helps drive inclusive prosperity. We are building a nimble and resilient economy that doesn’t leave anyone behind. Goal: Take action and be resilient in the face of climate change. We will seize the opportunity to face climate change headon for a hopeful and sustainable future. Goal: Build healthy neighbourhoods that support a variety of households, income levels and life stages. Everyone in our community should be able to find stable and appropriate housing.

Principle 3 – Connected: A community where residents are connected to their neighbours, their city and the wider world. Goal: Embrace diverse transportation options to shift away from our car-centric culture. Making it easy for people to choose non-driving options protects the beauty of Kelowna and makes getting around more enjoyable. Goal: Create great public spaces that bring people together. We need great public gathering places like parks, plazas and community centres where people can meet and connect with others. Goal: Provide opportunities for people of all ages, abilities and identities. We all benefit when everyone in the community has access to economic, recreational and social opportunities. Goal: Cultivate an accessible and engaging arts and culture scene. Everyone can find something that interests them to engage in, from grassroots initiatives to professional endeavours.

Principle 4 – Responsible: A community where decisions are made ethically and where social and environmental concerns are prioritized. Goal: Concentrate on growing vibrant urban centres and limit urban sprawl. Denser neighbourhoods make our city healthier, more sustainable and easier to get around. They make more financial sense, too. Goal: Preserve Okanagan Lake as a shared resource. Okanagan Lake is the jewel that makes Kelowna sparkle. Goal: Strengthen the protection of our land, water and air resources. Our stunning environment is the foundation that all of our other aspirations stand on. Goal: Protect agricultural land and promote sustainable farming. Supporting agriculture helps ensure food security while preserving vital green infrastructure.

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

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PRIORITIES Council Priorities 2023–2026 identifies the strategic shifts, improvements and changes that are important to Council, the community and organization. The approach is designed to take immediate action on what is important to residents and guide the City’s business planning and investment decisions. It outlines six priority areas and 22 actions to increase citizens’ quality of life. Council will receive a public progress report on the priorities every six, 12 and 18 months. To see the progress on the 26 result areas, visit kelowna.ca/councilpriorities.

Crime & Safety •

• • •

Develop a strategy to address property crime, including break-andenters and theft Provide local Business Improvement Areas support for urban centre safety issues Establish a safety task force with stakeholders Partner with provincial mental health and substance-use ministries to improve local conditions

Homelessness • • •

•

Advocate for additional complex care centres Explore partnership opportunities for alternative forms of sheltering Advocate for purpose-built permanent shelter with wrap-around supports and graduated-needs housing options Develop an emergency winter shelter program

Agriculture • • •

Facilitate the creation of a permanent home for the farmer's market Review the Agriculture Plan with respect to secondary uses Expand enforcement/bylaw officers

Affordable Housing • • •

Acquire city-owned land to build affordable housing Increase number of rental units with below-market rents Partner on the creation of a low-cost affordable housing pilot project

Transportation • • • • •

Explore alternative modes of transportation between UBCO/YLW and downtown Improve transit service including expanding the transit pass program Improve traffic flow and capacity on major road networks Complete the functional design of the Hwy 33 multi-modal traffic corridor Enhance traffic safety presence

Climate & Environment •

• •

Include climate lens in decision making to assess mitigation and adaptation Increase urban tree canopy Pilot an energy concierge program to enable retrofits in buildings

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Plans & Strategies How City Plans Work Together

Plans that Influence the Budget

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Action Plans & Measurement Action Plans Each year, City of Kelowna publishes its annual Action Plan. It identifies our most notable strategic and operational work to deliver results in response to Council Priorities.

management is inherent in good governance and management. It is both an integral part of how we work and key to achieving our desired results. Performance measures provide us the evidence of results that informs our management decisions and actions.

The action plan captures notable operational and infrastructure improvements and initiatives to provide a clear path forward. Based on the community led Imagine Kelowna vision and our long-range strategies and plans fed public engagement, the Action Plan is developed collaboratively by all divisions, and our organization as a whole is responsible for actioning and delivering on the items. While not an exhaustive list of projects, the Action Plan is an important part of our overall integrated strategy and corporate performance management process, which outlines how we set priorities, align the organization, execute the work, measure outcomes, and evaluate opportunities for improvement.

Summary of Projects and Initiatives The projects and initiatives included in Action Plan 2023 will represent work currently underway (multi-year, or not completed in the previous year) or planned to start sometime during the year. Many projects and initiatives will advance more than one priority area and/or result. All items will be linked directly back to Council Priorities, and our Corporate Results: Clear direction, People and Financial Management. For more information on the annual Action Plan visit kelowna.ca/actionplan. Performance Measurement City of Kelowna has a corporate-wide performance measurement program that is integrated into the annual Financial Plan and Annual Report in accordance with the Community Charter. Corporate performance

Performance measures are important for both external and internal stakeholders. Measuring our corporate performance allows us to evaluate our programs, services and processes to ensure that we are providing quality programs and services that best serves our citizens. Performance measures tell the story of results, improving visibility, transparency, and accountability. They build trust as they help citizens understand what difference the City is making and provides them with a tool to track and understand costs per service level. Performance measurement is also used by City staff as a tool for continuous improvement. Internal performance measures help staff better understand City priorities enabling quicker, well-reasoned decisions that will improve the value the City provides to the corporate community. Reporting divisional performance measures is a part of the City’s financial planning process and is included in the City of Kelowna Annual Financial Plan. The performance measures are directly linked to operational goals and/or Council priorities. At the end of 2021, the City reported that: • 29 results are trending in the right direction • 5 results show no change or it is the first year that data is available • 5 results are not trending in the right direction To view the annual interactive progress report, visit kelowna.ca/councilpriorities.

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BUDGET HIGHLIGHTS Budget at a glance The City of Kelowna is responsible for managing public funds on behalf of our residents and making the right decisions to safeguard our city and community. We do this by having a clear set of priorities based on our community‐led Imagine Kelowna vision, sound master plans and a steadfast commitment to strong financial management—the cornerstone principle of every decision made. This is backed by our annual online progress reporting showing how the City is actioning priority Imagine Kelowna processes. Public reporting not only welcomes valuable feedback and input from the community, it demonstrates Council’s commitment to transparency, accountability and providing value to residents. As we continue post‐pandemic recovery and navigating changing economic factors including inflation, interest rate pressures, labour shortages and supply chain challenges, the 2023 budget focuses on financial prudence amid inflation to keep the tax rate as low as possible and directing funding toward the highest needs of the community, including maintaining and expanding critical infrastructure for a rapidly growing community and addressing key community priorities.

2023 Priorities Financial Prudence Amid Inflation Keeping Tax Rate as Low as Possible Resilient financial management and innovation, strong asset management and Development Cost Charge (DCC) programs, healthy financial reserves, long‐term investments and low debt have helped us create stability and minimize the tax impact on our citizens amid complex global financial challenges. Once budget carryovers are approved, and the Financial Plan is finalized in April, only approximately 25 per cent of the City’s 2023 operating and capital costs will come from annual taxation. Revenue generated from sources such as self‐ funding business units, including Kelowna International Airport, the City’s water utility and solid waste operations, as well as grants and user fees contribute significantly to service delivery and our citizens’ quality of life. This, and the ability to utilize reserve funding to offset some of the impacts of inflation, and other economic pressures, including significant increases in service contracts, is helping to keep taxes as low as possible. Development Cost Charge revenue ( 32.5M) will fund over 26 projects, including the following:  Parkland acquisition  DeHart Park  Pandosy Waterfront Park – Phase 2  Glenmore Recreation Park – Phase 3  Sutherland 3 DCC (Mill Creek – Spall), Road 2023 projects supported by grants  Mill Creek Flood Protection 2,309,900 grant  Okanagan College Exchange Capacity Expansion 992,000 grant  KLO Mission Creak Sewer connection 660,000 grant Public Safety Levy Dedicated Funding for one of our Highest Community Priorities Public safety continues to be a top priority for the City and residents. The 2023 preliminary budget proposes the introduction of an annual one per cent public safety levy indexed to the greater of growth and inflation or one per cent of the previous years’ taxation demand. The proposed levy would provide a dedicated and predictable ongoing funding source for one of our highest community priorities and will allow for improved financial planning and forecasting for the future. The allocation recommendation is informed by an RCMP resource deficit highlighted in the Griffiths' 2019 Report and their strategic plan; community service growth needs identified by Bylaw Services and the Fire Department 203 Strategic Plan and 10‐year Capital Plan. This request follows the estimated 12 million‐plus impact to the City, with annual ongoing wage increase costs, as a result of the 24 per cent RCMP wage increase (retroactive to 2016) negotiated by the federal government and

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National Police Federation. Approval will maintain service delivery levels, enable more resources in the Community Safety Unit and improved strategic coordination with health and housing sectors. If approved, the 1,671,00 investment will fund the following positions and all associated costs:   

6 RCMP Members 2 Senior Bylaw Officers 4 Fire Fighters

Critical Infrastructure Planning for a City of the Future Between 2016 and 2021, Kelowna’s population increased 13.5 per cent, making it the fastest growing city in B.C., while having the third‐fastest growing downtown. In the next 20 years, we expect to welcome over 45,000 new residents. Protecting our existing critical infrastructure, and planning for the needs of our growing community is a key priority to ensure our residents and future generations have what they need to enjoy a high quality of life. The infrastructure levy introduced in 2019 has helped fund parks, transportation and storm drainage projects. The City's civic buildings and facilities are aging, and more investment is needed to renew critical assets. The current levy generates 5.6 million annually but is not indexed to inflation. The 2023 budget proposes to increase the levy annually by the three‐year average non‐residential construction price index, seven per cent for 2023. The City will invest 34.9 million in infrastructure renewal in 2023, including: • 1,400,000 in general building infrastructure renewal • 4,058,400 for vehicle/equipment renewal • 1,350,000 for Kelowna Family Y building renewal • 1,565,000 Airport Air Terminal Building Capital Replacement and improvements Digital Transformation To Advance Innovation, Efficiency and Safeguard Information As the world becomes increasingly more digital, the City is prioritizing continued investment in digital transformation to enhance customer experience and advance innovation, efficiency and safeguard information. With the introduction of website enhancements, chat and voice bots, electronic signatures, and digital assistants, doing business and communicating with the City will be faster, easier and more secure. With increasing Information Technology complexity, need for continual upgrades, and cyber threats, we will shift to the Network as a Service model to enhance security and service, while minimizing the need for capital expenditures related to operating a traditional on‐premises network. The digital transformation strategy will target highest value projects and focus on improving data driven decisions. 2023 budget requests that will support this transformation include:  1,621,200 for network as a service (seven‐year agreement)  150,000 for cybersecurity licensing  $50,000 for fibre optic service line

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Staffing All new positions and changes to existing salaried or wage personnel, both permanent and temporary, are required to be supported by a business case. The business case must include the reason for the request, a cost/benefit analysis, the recommended funding source, other alternatives considered and the organizational impact. Each request must also support Council | Corporate priorities ensuring Divisions are making a difference in services, programs and infrastructure that address our community’s needs. Each operating request includes a Strategic Direction selection that indicates the priority the new position is working towards. The 2023 Financial Plan contains requests for 33 new P1 staff positions requests that support moving Council | Corporate priorities forward while also delivering on the services residents expect. The new positions include 27 full‐time, one term, seven part‐time and a reduction of two part‐time positions that have been converted to full‐ time. The total 2023 taxation impacts on budget for these position changes is 2.4 million. The table to the above shows the total positions requested by each division/department and by position type.

Budgeting for community priorities Each operating request indicates strategic alignment with key focus areas. Listed below are a few highlighted 2023 budget requests. Community Safety While 81 per cent of residents feel safe in the community, we recognize there is much work to do. The 2021 progress report notes we are meeting our objective to use data and analysis to better understand the root causes and specific problems and deliver targeted responses. However, our property crime, petty crime and drug crime rates are not trending in the right direction. Bolstering safety resources is necessary to address emergent issues in the community and to keep up with the growth of our community. The 2023 budget prioritizes investments to reduce risk, vulnerability and crime in our community. Operating requests: Furthering the City’s commitment to address community safety needs, 75k is requested for two years to support the implementation of the Community Safety Plan and its 30 Action Projects. This will be funded from the reallocation from the existing operating Kelowna Youth and Family Services budget. Additional staffing: If Council approves the one percent public safety levy, it will fund:  Six additional RMCP members (SAFE)  Two senior bylaw officers (SAFE)  Four fire fighters (FD) The budget also proposes a new Community Safety Advisor (SAFE) position to oversee the Community Safety Plan implementation and two additional part‐time Bylaw Officers (SAFE) to support during the 12 peak summer weekends.

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Capital requests: Helping to assist our growing city’s safety infrastructure, 867k has been requested to design a new fire hall serving North Glenmore and areas further north of the City and 95k for scoping and designing the expansion of the Rutland Community Policing Office with both requests funded from reserves. Program requests for traffic safety initiatives include 150k, funded 75k from ICBC partnership funds, for road safety improvements for collision‐prone locations; 150k, funded 75k from reserves, for upgrades to existing and adding new crosswalks to make walking a more comfortable, safer and viable travel option for residents; and 150k for various neighbourhood traffic calming initiatives. Social & Inclusive Our community puts people first and we are playing an increasingly active role to address social issues. It is evident that Kelowna is experiencing significant growth and change. It’s vibrancy as a thriving urban centre attracts investment, tourism, and migration from near and far. Along with this growth come significant challenges as our most vulnerable citizens struggle to find their place. The Journey Home Strategy is Kelowna’s plan to address homelessness with a focus on ensuring everyone has a place to call home. The goal is to ensure a coordinated an easy to access system of care for those in Kelowna who have lost or a risk of losing their home. Operating requests: Continuing support for social & inclusion initiatives include 35k that will be used to consult with appropriate Indigenous leaders to meaningfully engage with the Indigenous People on a variety of community level planning projects, and 40k to conduct a review for recommendations regarding the ongoing implementation of the Journey Home Strategy, along with City commitments beyond 2023. Peer Navigators are people with lived experience who have been trained to support their peers by connecting them to services and healing in an approachable way. The Peer Navigator Program, originally grant funded, is being requested to continue at the Parkinson Recreation Centre using funding reallocated from the existing operating Kelowna Youth and Family Services budget. Additional staffing: Transitioning the Community Development Coordinator – Outdoor Shelter position (AL&C) from term to a permanent position will help to continue the ongoing leadership and coordination of outdoor sheltering/day use sites, sheltering strategy implementation, social support services, and mitigating community impacts. Transportation & Mobility The 2040 Transportation Master Plan will help us all work together toward a smarter and more responsible approach to transportation. It includes over 100 recommended actions that will help us maintain and renew our existing infrastructure, create fast and reliable transit, improve road connections, develop comfortable cycling routes, create walkable neighbourhoods, and help people use and enjoy new ways of getting around. This year’s budget continues to build on the success of delivering a balanced transportation network. Operating requests: Kelowna's Downtown Urban Centre is growing and evolving quickly. To support a livable, vibrant downtown without major road expansions it will be important to shift as many trips to biking, walking, transit and shared mobility as possible. 100k, with 25k funded from reserves, is requested to review the downtown centre to ensure intersection controls, crosswalks,

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secure bike parking, sidewalks, bicycle network, shared mobility, and transit amenities, are all working together to support the rapidly growing downtown. Capital requests: 6.5 million, with 5.6 million funded from reserves, is requested to advance active transportation networks across the city:  Abbott DCC (Cedar – Gyro) design and land acquisition  Bertram 1 DCC (Sutherland – Cawston) design  Casorso 3 DCC (Lanfranco – Barrera) construction  Glenmore 4 DCC (Kane – South Yates) construction  Houghton 2 DCC (Hollywood – Mugford) construction  Rail Trail to Greenway DCC design  Sutherland 1 Protected Bike Route (Lequime – Burtch) construction. Additional transportation and mobility improvements include construction of the Stewart Road West DCC Phase 2 for 3.3 million with 3.2 million funded from reserves, design and land acquisition budget of 6.2 million with 5.4 million in reserves funding to support the future Sutherland 3 Complete Street DCC project from west of Burtch to Dayton, and 1.2 million, with 1.1 million funded from a potential grant and reserves, is requested for the Okanagan College Transit Exchange design and facility improvements. Vibrant Neighbourhoods Over the next 20 years, roughly 73 per cent of Kelowna's growth will occur in the City's five Urban Centres and surrounding Core Area. In the coming years, detailed urban centre plans, with the OCP, are needed to determine the necessary land use, urban design, public improvements and transportation enhancements to realize the long‐term vision for each of the urban centres. Dedicated and committed resources are needed to plan for these multi‐year projects to ensure we are achieving all the desired attributes that growth. As we grow, so do the pressures for housing diversity and affordability. The recent period of rapid growth in population and resulting housing unaffordability has changed the housing landscape. A suite of activities is scheduled to gain understanding of the scale and nature of the unique housing challenges facing our community. This will culminate in the development of a new Housing Strategy with a suite of recommended actions to improve housing diversity and attainability across short and long term time horizons. The City has budgeted 75k to conduct a new Housing Needs Assessment (HNA), a land analysis to support the HNA that will evaluate the potential for public lands that are either vacant or underutilized to support affordable housing, and a new Housing Strategy that will be framed under a set of strategic housing objectives and targets with supporting actions needed to achieve them. In addition, with a newly created Infill and Housing Policy Manager, a more focused and concerted effort is being deployed to diversify housing stock for our community. This new program is intending to create a planning framework that proactively encourages housing in the right locations and form, to advance the City's growth strategy, address affordability, and utilize City assets and infrastructure in a fiscally responsible way. Operating requests: To further support vibrant neighborhoods, 52k is requested to make the downtown cleanup pilot partnership an ongoing initiative, 150k is requested to develop a comprehensive master plan for the Kelowna Fire Department to support the KFD Strategic Plan and build towards a set of metrics to manage growth funded from reserves, and 150k is requested for

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detailed urban centre plans to determine the necessary land use, urban design, public improvements and transportation enhancements to realize the long‐term vision for each of the urban centres as defined in the OCP funded 75k from reserves. Additional staffing: A Development Technician position (P&DS) is requested to facilitate the strengthening of Kelowna’s Urban Tree Canopy strategy, and a two‐year term Project Planning Coordinator position (P&DS), funded through development, is critical to deliver on new second tiered plans that include Neighborhood and Urban Center plans as included in the 2040 OCP. Capital requests: Supporting the creation of vibrant neighbourhoods,  17 million is requested for various DCC parkland acquisitions throughout the community funded 15 million from reserves  6.8 million is requested for construction of phase three of the Glenmore Recreation Park funded 3.7 million from reserves  3.9 million from reserves is requested to conclude the design of the Parkinson Recreation Park  150k from reserves is requested for the renewal of waterslide equipment at Ben Lee Park and the replacement of the ageing playground at Kinsmen Park Economic Resiliency Economic resiliency is the ability to adapt to changing market conditions. Through Imagine Kelowna, as part of the largest community conversation ever, our residents told us we need to be agile, resilient and unafraid to do things differently based on four principles: connected, collaborative, responsible and smarter. This year’s budget highlights the City’s commitment to strong financial management. Operating requests: To better meet departmental objectives, reduce deferred maintenance, avoid costly renewals, and maintain service levels, k is requested ongoing for building maintenance deficiency. Capital requests: Various building projects identified through condition assessments have been requested helping to ensuring building asset preservation for building envelope renewals; mechanical, electrical, plumbing renewals; renewal at H O and Kelowna Family Y. These projects total 2.8 million with 1 million funding from reserves. The roads renewal annual program has requested 3.3 million with 3.3 million funded from reserves to maintain and extend pavement life with locations prioritized by pavement condition, street function and traffic loading. Projects are coordinated with other capital and development projects to maximize pavement life. With nearly 70 per cent of the City’s preliminary budget funded from non‐property‐tax sources, the value of self‐funding operations such as the Kelowna International Airport (YLW) cannot be understated. YLW is a generator for regional and local economic activity. It is a connection point to larger urban centres (Kelowna, Vernon) but also to a vast array of smaller and rural communities in the interior of B.C. The aviation sector is essential for Canada’s post‐pandemic recovery for revenue generation for local businesses, maintaining and creating jobs and encouraging investments. Over the next 10 years, YLW will invest over 355 million in airport infrastructure and equipment, including the Air Terminal Building Expansion. Through strong financial and strategic growth management, YLW was successful in being financially prudent through the pandemic, which put it in a strong financial position for recovery. YLW is forecasting it will serve 2.1

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million passengers in 2023 compared to 1.7 million forecasted in 2022, resulting in an additional 11.6 million in forecasted revenue, excluding grants, in 2023 compared to 2022. The Airport is requesting 33.6 million funded from reserves to design, construct and make purchases for certain aspects of the Soaring Beyond 2.5 million Passengers AIF Program. Projects include: construction of the air terminal building expansion, airside pavement rehabilitation, purchases of new and replacement equipment and vehicles, and passenger boarding bridge programmable logic controller upgrades. The new Air Terminal Building will have the capacity to support increased travel, cargo, and air services growth will position YLW as the connection point that enables local businesses across the region to take flight. Environmental Protection The City of Kelowna’s new 2040 Official Community Plan and 2040 Transportation Master Plan are focused on protecting our natural environment and addressing climate action through the reduction of greenhouse gas emissions. Investments we make today will impact the quality of life of our future generations. In 2023 we will invest in active and alternate transportation to support reducing GHG emissions and take action on our commitments to environmental sustainability and protection. We will invest 1 million in stormwater improvements, a stormwater basin plan and 3 million wastewater mains and facilities renewal to help mitigate the impacts of flooding and climate change. Operating requests: To continue with Council’s focus on environmental protection, 390k from reserves is requested to implement the recommendations made through the Climate & Environment review with several initiatives in 2023, 240k from reserves is requested to continue climate action initiatives to support such things as BC Energy Step Code compliance, the BetterHomes BC municipal top up program, a climate intern to help reduce GHG emissions, and 200k is requested for a Stormwater Management Plan to be developed for the urbanized area bound by Mill Creek to the north, Mission Creek to the south, Okanagan lake to the west, and the Orchard Park area to the east funded 50k from reserves. Additional staffing: A new Utilities Construction Supervisor position (IN) and an eight‐month Source Control Co‐op position (W) will help with succession planning, workload balance and improved construction management at the Gully Road Construction yard and continue on‐going wastewater compliance monitoring through an extended Co‐op opportunity. Capital requests: Encouraging resiliency and adaptability to climate change requests include: 300k funded from reserves to continue expanding the electric vehicle charging stations in City owned parking lots and parkade facilities, 360k, with 25k in utility funding, is requested for the annual replacement of storm drainage mains, pump stations, and treatment facilities to continue providing a standard level of service, and 251k from reserves is requested for renewal and replacement of inefficient energy systems within City facilities, helping to reduce GHG and energy consumption. The Mill Creek Flood Protection project is requesting 5.8 million, with 2.3 million of grant and 2.9 million of reserves funding, to continue creating the conditions to safely pass a one in 200‐year flood event to Okanagan Lake. This project is part of a seven‐year plan that accesses Disaster Mitigation and Adaptation federal grant funding up to 22 million.

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Financial Management City of Kelowna practices continuous evaluation and improvement. In addition to working to increase non‐tax revenue to fund programs and services, we seek to understand the customer’s perspective and take action to ensure every touch point with citizens and our customers is of good value. If the service or activity is not achieving its intended outcome, we stop doing it; or we make it better by improving attributes like cost, quality, time, convenience and complexity. Operating requests: Changes to the Transit base operating cost adjustments include increased costs of 2.6 million offset with anticipated increased revenues of 3 million. Conventional and Community program revenue is expected to increase as ridership is anticipated to approach pre‐COVID levels offset with inflationary expense increases. Custom Transit program expenses are increasing largely due to operational inflationary increases. Additional staffing: The addition of a new Accountant position (IN) will help to support the financial functions of the Infrastructure Division. Clear Direction Clear direction is a key corporate priority informed by and delivered through cascading plans, all guided by our community’s Imagine Kelowna vision. We use divisional and department plans to focus our efforts on the most important changes and improvements we need to achieve and then conduct public reporting to demonstrate accountability and transparency and to ensure continuous learning and transformation. Through innovative thinking and sound decision making, and implementing more non‐traditional ideas, we are transforming services, processes and business activities to continually improve services and outcomes for our residents. Operating requests: Requests that support the City’s commitment to setting a clear direction include 150k for operational support of the British Columbia Urban Mayors’ Caucus with 140k funding from other member municipalities, 50k funded from reserves for the automation of record drawing intake and 121k from reserves for the timesheet and absences module in Unit4. Additional staffing: Additional staffing will help to implement digital opportunities to automate tasks, increase digital device examinations, improve efficiencies and transform processes:  Business Systems Analyst ‐ Digital Transformation Specialist position (CSS)  Police Services ‐ Digital Extraction Technician position (SAFE)  Police Services ‐ Administrative Assistant position (SAFE)  Policy Analyst position (CC) Capital requests: Supporting innovation and transforming process, the Information Services Major Systems Project is requesting 370k from reserves to fund data analytics solutions and dashboards to help with better decision making, as well as to continue automating and digitizing processes. Front Office Equipment program is requesting 503k for new workstation equipment, software purchases, licensing and cyber security initiatives.

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People City of Kelowna prioritizes building a workforce that is ready and able to fit into expanded roles and adapt to our rapidly changing environment. We work on complex problems as one team, tapping into the talent and specialized expertise across the organization and community, which brings different perspectives that lead to better planning, collective problem solving and win‐win solutions. We focus on employee engagement to drive performance and promote strong organizational values to generate the results our staff and community want to see. Operating requests: The City of Kelowna is committed to encouraging individuals from a variety of experiences and education levels to apply for vacancies in order to fully represent the community. To support the Diversity, Equity & Inclusive (DEI) Strategic Plan, 40k from reserve is requested to create specific criteria to for decision‐making around recruitment and career development processes, update key HR policies, development communication plans, and train leaders on how to lead with a DEI lens. Additional staffing: To help support growth in Airport Operations, the Airport Air Service Development Manager position (AIR), the Airport Development Services Manager position (AIR), and the Airport Operations Clerk position (AIR) are being requested for 2023. The Buildings Planning Supervisor position (P&I) and Mechanical Engineer ‐ Facilities position (P&I) requests are to provide strategic planning in the municipal building’s portfolio. Planning & Development is requesting a permanent Climate Action and Environment Stewardship Manager position as a result of the successful two‐year term position that bolstered the City’s Climate Change and Environmental Stewardship efforts. This position will implement recommendations related to aligning, prioritizing, and implementing additional measures related to the City's climate action and environmental stewardship efforts. Summer student positions increase capacity and coverage for hiring departments while providing interesting and meaningful work for students. With the goal of long‐term resource planning, the Communications department is requesting to create a summer student program of two Communications Summer Student positions (CSS) where students have the opportunity to work on interesting projects and have an impact in the community. The Water Fund is requesting a Water Quality Co‐op Student position (W) to work with the Water Technician in gathering, analyzing and reporting on the water quality safety of the drinking system. Other The City of Kelowna is responsible for providing all kinds of services and programs such as drinking water, fire and police services, transportation networks, underground utilities, and recreation facilities. Budget requests for many of these services are directly aligned with Corporate and Council priorities but some are required to continue to maintain current program and service levels and infrastructure renewal. Operating requests: Helping to maintain current programs and service levels, various operating requests have been submitted:  Corporate Strategic Services is requesting 150k to enhance security features to protect digital transformation  Infrastructure is requesting 587k for expected contract increases for parks, beaches and mowing maintenance agreements and 200k to maintain the roadway winter maintenance program’s services levels  Wastewater Operations is requesting 380k to increase the chemical, water flushing and repair budgets, funded from 35k from contributions and the remaining from the wastewater utility  Water Operations is requesting 164k for chemicals, repair parts and purchase services, funded from the water utility

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Additional staffing: Additional staffing will provide greater consistency and flexibility for day‐to‐day operations and build capacity due to growth.  Arenas & Stadiums Attendant Position (AL&C)  Asset Management System Manager Position (FS)  HR Coordinator Position (CS)  Senior Transportation Engineer Position (IN)  Wastewater Treatment Operator Position (WW)  Wastewater Co‐op Student Positions (WW)  Water Supply Millwright Position (W) Capital requests: Various capital projects have been requested by the capital programs:  Real Estate and Parking is requesting 2.7 million with 1.7 million funded from reserves for several preventative maintenance items at City owned parkades and funds to purchase land that meets the characteristics and parameters identified in the City of Kelowna's Land Strategy.  Building capital has requested 575k from reserves to replace existing docks at the Water Street Boat Launch and install a staging and moorage arm at the northern most launch dock.  Parks is requesting 538k from reserves for phase four of irrigation systems upgrades at the Kelowna Memorial Park Cemetery.  Solid Waste has requested 400k for new automated collection curbside carts, 2 million for electrical supply upgrades, 1.5 million for liner installation, 600k for relocating the existing wet well at the Glenmore Landfill, 6.1 million for stockpiles and reprocessing area relocation, and 600k for various smaller projects with all projects funded from reserves.  Fire capital is requesting 55k for an ATTACK Digital Fire Training System, 185k to support the implementation of Next Generation 911 (NG911) compliant equipment and 72k for the replacement of six sets of Self‐Contained Breathing Apparatus (SCBA) and fifteen air cylinders, all funded from reserves.  Vehicle and Mobile Equipment is requesting 4.1 million from reserves to replace 35 pieces of equipment and 472k funded from utility and taxation, for six new pieces of equipment for various divisions.  Airport is requesting 4.5 million for various capital improvements including Air Terminal Building office renovations and improvements, roof replacements, purchase of two bridge gantries, refurbishments at the Combined Operations Building, technology equipment improvements and small capital purchases with all projects funded from reserves.  Water is requesting 4.3 million for various renewal projects within the Water utility funded from reserves and the utility. 1.7 million funded from reserves and utility is requested for various projects including planning and design a transmission line and a new reservoir cell, new hydrants, design of the next phase for the Kelowna Water Integration Plan design process, creation of the Southeast Kelowna master plan, equipment purchases, and smaller projects relating to City growth.  Wastewater has requested 536k for sanitary sewer trunk design along Glenmore Rd and Lakeshore, . million for odour control media replacement at the Wastewater Treatment Facility funded and 7.6 million for various renewal projects in the wastewater system funded with projects funded from various sources including reserves, grants and the utility.

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General fund highlights Property taxation

The annual property taxation demand is the difference between net operating and capital expenditure requirements and the revenues generated by the City. It is the amount of money the City needs to collect from property owners for the operations, maintenance and capital improvements planned for the fiscal year. The net property owner impact is the annual property taxation demand less additional tax revenue generated through new construction. Taxation Revenue from new construction is based on Preliminary Assessment Roll information from BC Assessment net new general construction operating (BCA). New construction revenues are used to reduce the overall revenue revenue & capital net property owner impact. In 2023, the new construction revenue is estimated to be 1.7M. The finalized new construction assessment value will be available from BCA in the second quarter of 2023 and will be reflected in the Final Budget volume of the Financial Plan. net property owner impact

It is important to note that while it is possible to project the average property tax increase using the overall assessment base and the revenues required to operate the City, the impact on each individual property owner will vary depending on the relationship of their assessment change to the average. Further analysis will be required when BCA provides the Revised Assessment Roll in the second quarter of 2023. For 2023, the overall taxation demand has increased from 167.1 million to 175.5 million, which includes general revenue, net operating and capital. Taking into consideration the revenue generated from new construction, the average impact on existing property owners is 4.01 per cent. Other revenue sources that are used to help fund operating and capital programs include grants and reserves. Examples of other revenue sources in the 2023 Financial Plan are Development Cost Charge (DCC) Reserves, the Community Works Fund Reserve and the Disaster Mitigation and Adaptation Fund (DMAF) grant.

General Revenues General Revenues are revenues that are not specifically attributable to or generated by any particular City of Kelowna division. The General Revenue portion of the 2023 Financial Plan is projected to be 15.3 million which is a 3.1 million increase from 2022. The majority of the increase, 2.4 million, is attributable to growth in investment income resulting from the Bank of Canada increasing interest rates to rein in high inflation and implementing a new forward looking investment forecasting methodology. Other General Revenue increases include: 340k for interest and penalties; 37k for Federal and Provincial contributions; 317k for revenues received from utilities; and 6k for school site acquisition administration fees in 2023.

Salaries, wages and fringe benefits A significant portion of the annual operating budget is for staffing. The City of Kelowna has four collective agreements for municipal staff:  CUPE Local 338 – collective agreement ratified in 2019 for the term 2019 to 2023  IAFF Local 953 – collective agreement was renewed in 2022 for 2020 to 2024  CUPE Local 338 ‐ Airport – collective agreement was ratified in 2022 for the term 2020 to 2026  IBEW Local 213 – collective agreement ratified in 2021 for the term 2020 to 2024 Fringe benefit load factors are reviewed annually and are reflected throughout the divisional operating budgets.

RCMP contract The current RCMP collective agreement will expire on March 31, 2023. The General Fund Police contract staffing is at 222 members with a budgeted vacancy factor for 6 members. The average cost per member is estimated at 202.5k for 2023.

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Airport and utility fund highlights The City of Kelowna operates the Kelowna International Airport and two major utilities that provide water and wastewater services within the municipality. The Airport’s ongoing operations, maintenance and capital improvements are funded by user fees. The utilities are similar as they are funded entirely by user rates which are paid through annual parcel taxes and/or monthly user fees. Capital investments that are required for new, growth or renewal of infrastructure are identified in the 10‐Year Capital Plan.

Airport Kelowna International Airport (YLW) is the largest municipally owned and operated airport in Canada. YLW does not utilize municipal taxes as it is self‐funded through user fees and charges. The aviation sector is essential for Canada’s post‐ pandemic recovery of revenue generation for local businesses, maintaining and creating jobs for residents, and encouraging investment in the local community. Each year YLW pays a portion of revenue to the City of Kelowna which helps to reduce taxes paid by residents. Airport ‐ Financial Outlook – 2023 The 2023 gross revenues from Airport operations are projected to be 51.2 million. The total operating expenditures including debt repayments for Airport operations are projected to be 25.2 million. The total Airport Capital Program is 39.0 million funded from reserves. Remaining revenues of 26.0 million will be contributed to Airport reserves for future use. In 2023, it is anticipated the Airport fund surplus will remain unchanged.

Water utility The City of Kelowna’s Water Utility is one of four water providers for Kelowna residents. It sources its water from Okanagan Lake and provides water to just over half of the Kelowna population. Committed to protecting public, environmental and economic health, the Utility has adopted a source‐to‐tap water management approach that includes watershed protection, water quality monitoring, treatment, distribution system maintenance, cross‐connection control, and water‐use efficiency. Water Utility ‐ Financial Outlook ‐ 2023 In 2023, the Water Utility is budgeting for a 399k surplus. Operating revenues are projected at 21.3 million with approximately 13.0 million required to cover operating expenditures and debt repayment. Total capital expenditures are 6.0 million funded 4.3 million from current year utility revenues, 1.5 million from reserve allocations, and 150k from developer contributions. The Water utility is also contributing k to the General Fund capital request Fleet Growth. The anticipated accumulated surplus position at the end of 2023 for the Water utility is 9.9M.

Wastewater utility ‐ collection & treatment The Wastewater Utility provides a safe, reliable and efficient sanitary sewer collection system and treatment facility to ensure the protection of Okanagan Lake and the connected waterways. The Wastewater Treatment Facility serves approximately per cent of Kelowna’s population including residents, businesses, and industries, and is being expanded to reach un‐serviced areas and accommodate City growth. Wastewater Utility ‐ Financial Outlook ‐ 2023 The budgeted 2023 surplus for the Wastewater Utility is 2.7 million. Expected operating revenues are projected to be 25.1 million with approximately 14.7 million required to fund wastewater operating expenditures. The total Wastewater Capital Program is 9.4 million funded 7.4 million from current year utility revenues, 1.3 million from reserves, 660k from grants, and 37k from contributions. The Wastewater Utility is also contributing to the General Fund capital requests Linear Asset Renewal Projects for 25k and Fleet Growth for 20k. The anticipated accumulated surplus position at the end of 2023 for the Wastewater Utility is 55.7 million.

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STRONG FINANCIAL MANAGEMENT

2023 FINANCIAL PLAN

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STRONG FINANCIAL MANAGEMENT ORGANIZATIONAL CHART

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BUDGET PROCESS City plans that influence the budget include:  Council Priorities  Official Community Plan  10‐Year Capital Plan  2030 Infrastructure Plan  20‐Year Servicing Plan  Imagine Kelowna ‐ Community Vision  Community Trends report

CITY OF KELOWNA

The City strives to balance the needs of all citizens in decision making and offers engagement opportunites to our communities to gather feedback and ideas on everything from community vision to park design. Engagement activities include surveys, focus groups, online discussion forums, information sessions and virtual panels.

Budget development

Public input

The City of Kelowna’s annual budget aims for a balance between setting a reasonable tax rate and delivering services expected by residents and businesses. As the City is limited by the amount of resources available, the budget helps in determining which objectives have the highest priority and will produce the greatest positive impact in our community.

Public input is gathered in a variety of ways. Citizens are able to provide input through Imagine Kelowna, citizen surveys, the elected mayor and council members, and public council meetings. All of which allow for the pubic to engage in the decision‐making process for their city, voicing concerns and recommendations for their community.

Every year City Council, the City Manager and City staff work together to develop the annual budget. Several plans are used as the basis for the development of the Financial Plan, including the Official Community Plan (OCP), 2030 Infrastructure Plan, 20‐year Servicing Plan, 10‐year Capital Plan and Council Priorities.

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

Imagine Kelowna is the result of an 18‐month long conversation with over 4,000 resident contributions about the future of our City. It is the vision, principles and goals created by our community, for our community. The principles and goals of Imagine Kelowna guide the development of plans such as the Official Community Plan, the Transportation Master Plan and other initiatives, and draw on the rich data of public input and research that was compiled through the extensive engagement process. The vision of Imagine Kelowna will unify strategies and projects that already exist or are underway to make sure they work together to build the kind of community Kelowna residents want. The Citizen Survey is conducted to determine how satisfied the public is with municipal programs and services, and to learn citizens’ service priorities. Responses are weighted by age, gender and city‐wide distribution to accurately reflect Kelowna’s population. Results are benchmarked against other local governments. Insights gained by this research help us make important decisions regarding planning, budgeting and service improvements.

Linking to strategic plans All operating and capital requests strive to support Council | Corporate Priorities and therefore, have been specifically linked to a Strategic Direction and Result Statement. Divisional Directors have outlined the activities that will be undertaken in the current year to support the Council | Corporate Priorities. These activities can be found in the first few pages of each Division’s operating section and are tied back to a specific priority. Through the use of divisional work plans, the City will embark on a purposeful effort to effectively coordinate human and financial resources to achieve the priorities as set by Council and the community.

Budget cycle & timeline The City uses a line item approach to budgeting, supplemented with program budgets in operational, service‐oriented departments. Base budgets are subject to annual review and scrutiny to identify need in relation to approved service level requirements.

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A year‐round process The City budget cycle is a near year‐round process with the fiscal year begining January 1 and ending December 31, guided by the requirements of the Community Charter as described in Section 165 and Section 166. The City Manager and Council meet in June each year to determine priority areas for the following budget year. This information is shared with all divisions to assist with the preparation of divisional goals and objectives, and the review and analysis of budget requirements to ensure they align with Council priorities. In October, the City Manager meets with each division to go over budget adjustments and requests. After this review, requests are ranked on a City‐wide basis and reviewed by the Senior Leadership Team. The divisional information and budget requests are then consolidated into the Preliminary Budget ‐ Volume 1 and prepared for deliberation and adoption by Council in mid‐December. Projects not completed in the previous year are presented to Council, as part of the Carryover Budget – Volume 2, in March after accounts are finalized through the year‐end process. Final adjustments to the Financial Plan, including requisition amounts from other taxing jurisdictions, are presented to Council in late April as part of the Final Budget – Volume 3. These three volumes combined make up the annual Financial Plan and is the first year of the City’s Five‐Year Financial Plan. The Five Year Financial Plan and the associated Tax Rate Bylaws must be adopted by May 15 each year.

Budget transfers & amendments As per section 165 (2) of the Community Charter, the Financial Plan may be amended by bylaw at any time. A bylaw amendment is planned for April 2024 for changes to the Financial Plan for all year‐end requirements. Council Policies 261 & 262 cover budget transfer and amendment procedures. These policies ensure that the City’s overall internal control objectives are maintained and that there are no material changes to the original budget approved by Council. Appropriate approvals and back‐up documentation are required for all transfer or amendment requests.

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Budget transfers involve the re‐allocation of existing approved budget and do not change the overall budget total. Council approval is required to cancel an approved project or to add a new program or project. Budget amendments do increase the City’s budget total and all changes greater than 200k must be approved by Council prior to entry.

2023 budget calendar Description

Required Date

2022 Prepare capital requests for 2023 Financial Plan Establish City priorities for the 2023 budget year, based on discussion with Council & City Manager City Manager meets with each department to review and prioritize all capital and operating requests Council receives overview presentation of the 2023 Preliminary Budget Council reviews and adopts the 2023 Preliminary Budget – Volume 1 2023 Council reviews and adopts Carryover Budget – Volume 2 Council reviews and adopts Final Budget – Volume 3 and the Five‐Year Financial Plan 2023‐2027

June 16 June 29

Oct. 11‐13

Dec. 5 Dec. 8

Prioritization There are two priority levels used for operating requests:  Priority 1 (P1) items have been added to the budget and are typically required to introduce new programs, maintain a current level or standard of service, or support existing programs experiencing growth  Priority 2 (P2) items are the same types of request as P1; however, they have been omitted from the budget totals in order to present an acceptable level of general tax demand/utility user rate P1 requests are included in the division totals but the P2 requests are not. The priority of each operating request is included in the top right‐hand corner of the page. Requests are shown as one‐, two‐ or three‐year financial impacts and are marked as ongoing or one‐time costs. Changes in years two or three of ongoing requests are automatically made to the base budget of those years. Capital requests are also marked as P1 or P2. There are no ongoing capital requests. Multi‐year capital projects may be budgeted in their entirety or in phases.

March 20 April 24

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BASIS OF ACCOUNTING/BUDGETING Basis of accounting Definition The basis of accounting refers to when revenues and expenditures are recognized (recorded) in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The focus within the budget process is that all interfund transactions are budgeted, but in the financial statements all material interfund transactions and balances are eliminated in preparation of the consolidated financial statements.

Accrual basis of accounting City of Kelowna revenues and expenditures are recognized on an accrual basis of accounting. Revenues are recognized in the accounting period in which the transaction or event occurred that gave rise to the revenue. Expenses are recognized in the accounting period in which the goods or services were acquired and a liability is incurred.   

 

Inventory is valued at the lower of cost, determined principally on a weighted average and specific item basis, or replacement cost Portfolio investments are recorded at cost Tangible capital assets on the consolidated statement of financial position will be shown at the net book value (cost, less amortization, less disposal) Tangible capital assets will be impaired if required Amortization, gain or loss on disposal, and write‐ downs of tangible capital assets will be a charge against annual income

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

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Principles & Strategies

for Financial Strength & Stability

PRINCIPLES

SUFFICIENT. Revenues and expenses support the City’s service levels and long-term goals

PRAGMATIC. Financial decisions take measured risks while ensuring appropriate service levels are protected

TRANSPARENT. Financial strategies, plans and processes are accessible and visible

FLEXIBLE. Financial policies allow for opportunities and changing circumstances

BALANCED. Service levels are affordable and appropriate

STRATEGIES User Fees & Charges

Reserves & Surplus Funds

Assets - Renew

Everyone will pay a fair amount for the services they receive

The purpose of each reserve will be documented and reviewed regularly

The City will invest in existing infrastructure renewal in accordance with the long-term capital plan

Ongoing operating requests will not be funded from reserves

Funding for asset renewal will be balanced against service levels and risk tolerance

Services will be reasonably accessible by all citizens User fees will be transparent and easy to understand

Accumulated surplus will only be used as an emergency funding source

Life cycle costs should be managed through preventative maintenance and renewal strategies

Assets - New

Development Financing

Expenditures for new assets will be prioritized based on social, economic and environmental factors and life cycle cost implications

Developers will pay their fair share for growth-related infrastructure through DCCs and other tools

Emergent opportunities will be evaluated against existing priorities Investment in new assets should follow the long-term capital plan The decision-making process for new asset investment will be documented, transparent and clearly communicated to Council, staff and the community

Where appropriate, other funding can be used to provide additional capacity over and above the current OCP horizon Taxation-funded DCC’s through grant programs may be used to encourage economic development and community projects

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Principles & Strategies

for Financial Strength & Stability

STRATEGIES Partnership & Enterprise

Debt

Operations

The City will pragmatically partner with other entities to deliver community services and amenities

General Fund debt servicing costs will be maintained at or below a targeted level of annual taxation demand

All services, including new services, must be aligned with the City’s priorities and reviewed regularly

The City will explore access to new sources of capital and revenue streams The City will leverage the expertise of outside partners The City will leverage existing assets to attract private sector involvement Services from partnerships will be reviewed regularly to ensure the needs of the City continue to be met The City supports organizations within the community that enhance the quality of life

The City’s debt capacity will be preserved by limiting the use of debt to fund only one-time major capital projects If possible & when beneficial, debt will be paid down earlier Financing for less than a five-year term will be completed through internal financing Impacts on overall City debt levels from “self-funded” cost centres and Funds will be reviewed and understood

The full financial cost of service and staff requirements will be understood by Council and administration Future changes in operating costs, including personnel resourcing requirements, will be considered in long-term capital and financial planning Ongoing operating activities will only be funded through taxes, fees and charges

Property Taxation

Grants

Property taxes will remain as stable as possible over time

Grants will only be pursued for the City’s priority projects

Property taxes will be comparative with similar communities

Grant funding will not increase the scope of a project without Council endorsement

Increases to property taxes will be balanced among assessment classes Property tax information will be transparent and easy to understand Property taxes will reflect the infrastructure, services and service levels that the community believes are important

Annual project funding must be sufficient without conditional grants Long-term financial planning will rely on unconditional grant opportunities only

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

Financial planning policies Balanced Budget | The Financial Plan is developed for the City of Kelowna to operate within its means. Each department is expected to operate within the limits of the financial resources identified, maintaining a balanced budget for the year. The Utility Funds will have planned deficits some years based on large capital projects in that year. When over-expenditures are known the department must first investigate transfer of budget from other sources within their area. Use of surplus or reserve accounts is available under special circumstances to cover budget shortfalls. Long Range Planning | The Community Charter mandates that a Five-Year Financial Plan is prepared. The plan contains current year operating and capital costs along with projected future costs. It includes estimated operating costs and revenues of future capital improvements. The plan is adopted by bylaw in May after Final Budget requests are approved by Council. The 20-Year Servicing Plan and the 2030 Infrastructure Plan sets the direction for infrastructure investment to 2030. The Council endorsed 10-Year Capital Plan is guided by these plans but is updated annually to respond to emerging issues and priority changes. Ten-year models are developed for the utilities to ensure that rates and fees are set at a level that allows the funds to be selfsupporting (without taxation assistance). There is a strong link between the various plans as they flow from the future right into the current year requirements. Asset Inventory | Civic facilities are reviewed on an annual basis to determine the requirements for maintaining the asset. Funding is included in the base operating budget in Building Services which supports maintenance projects. The amount included in the base is reviewed annually to ensure it is adequate to address the facilities requirements. A portion of the road network is assessed each year under the Pavement Management Program. The condition assessment is updated and a listing of

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

Revenue & expenditure policies Revenue | A diversity of revenue sources is encouraged, and appropriate recovery levels should be established for municipal services. The level of community resources that the City dedicates toward municipal services should be directly related to the extent of benefit to the community and the City’s ability to pay. Higher rates of cost recovery for certain services will be achieved by charging fair market value for services when it is appropriate to do so and by using prudent cost control measures. Fees and charges should be reviewed annually for the level of cost recovery and reasons for not recovering full costs should be identified and explained.

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One-time revenues should not be used for ongoing costs except in the case of startup costs for a new program. These programs should be carefully reviewed and justified through the budget process. Expenditure | Regular monthly, quarterly and annual financial reports are prepared that compare the actual revenues and expenditures to budgeted amounts. These reports are distributed to management at various times of the year. Budget must be in place for all expenditures at the Division level for operating costs and at the program level for capital projects. An expenditure may be made for an emergency that was not contemplated in the financial plan, but the plan must be amended, as soon as practical, to include the expenditure and the funding source. Debt | All borrowing, debt, or liabilities must adhere to legislative requirements and comply with the relevant Community Charter regulations. Debt must only be undertaken if it balances sustainability, flexibility and will not be used to fund current operating expenses. Debt is one component of the capital financing structure and must be integrated into realistic long-term financial plans. For capital financing, it is preferred that the debt term be less than the probable life of the asset, if it is affordable. The maximum debt servicing should not exceed 15 per cent of City own source revenues or eight per cent of annual tax demand and cannot exceed debt servicing limits established by the Province. Reserves | Council Policy 384 provides guidance for the responsibility of reserve oversight and the use of reserves to support the goal of providing adequate infrastructure, services, and resources to meet community requirements, and to aid in the financial sustainability of the City. Both statutory and nonstatutory reserves will be maintained to achieve policy objectives to acquire, replace, and renew major capital assets; to ensure stable, predictable tax and utility levies; to minimize the financial impact of unusual and unexpected events; to achieve longterm financial stability; to balance the costs of maintaining sufficient reserve levels to current and future taxpayers and to fund asset retirement obligations. Surplus Allocation | Any surplus generated in a year will be allocated to reserves as recommended by the City’s Audit Committee. Consideration is given to the requirements identified in the 2030 Infrastructure Plan, the area where the surplus was generated,

CITY OF KELOWNA

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

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

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investments. Maximum exposure to a single government (Government of Canada, BC MFA, Provincial, and Municipal) or corporation, as a per cent of the total portfolio will be as follows: Rating AAA AA A

Government 70% 50% 30%

Corporation 40% 30% 20%

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

Capital strategies



Major Recreational Facilities Strategy | Major recreational/cultural facilities are budgeted with substantial emphasis on funding from public private partnerships, public sector partnering and other contributions. Pay-as-you-go capital and reserve funding will be required to minimize long-term debt financing.



Civic Buildings Strategy | Buildings will be planned and constructed as required, subject to funding availability, with a focus on Public Private Partnerships in the development of these future civic buildings.

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Pavement Management Strategy | Annual general revenue contributions are to increase from the baseline of $1.9M over the 10-year program to achieve an overall roads condition of 73 out of 100.



Storm Drainage Retrofit Strategy | Annual general revenue contribution of $1.6M to this program over the 10-year plan.



Generation/Disposition of Surplus Strategy | $1.0M is to be allocated to reserves each year from annual surplus in order to mitigate the need for abnormal tax increases or incurring of new debt and to provide for capital expenditure opportunities which might otherwise require an alternative approval and/or referendum process.

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Capital Pay-As-You-Go Strategy | 40 per cent of new construction taxation revenue each year is to be allocated to capital, increasing the percentage of capital to Municipal Taxation to a maximum of 30 per cent.



Debt Management Strategy | The existing strategy of using alternative funding for discretionary expenditures, capitalizing on debt reduction opportunities and using short term borrowing has been maintained. Maximum debt servicing should not exceed 15 per cent of City own source revenues or eight per cent of annual tax demand.

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

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



Parks Development Strategy | Parks development costs will be a function of the capital allocation deemed reasonable annually and are to be shared by the community rather than through increased development cost charge fees.



Waterfront Amenities Strategy | An annual allocation is provided for some waterfront land acquisitions, but the emphasis is on private enterprise or community contributions to develop other amenities.

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

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

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

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

The following table lists the City’s Divisions and the funds they use:

City Administration City Clerk Kelowna International Airport Planning & Development Services Partnerships & Investments Infrastructure Active Living & Culture Corporate & Protective Services Corporate Strategic Services Financial Services

General Fund

Water Fund

Wastewater Fund

Airport Fund

         



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2023 FINANCIAL PLAN

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

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2023 FINANCIAL PLAN

CITY OF KELOWNA

RESERVES & FUND EQUITY Council Policy No. 384, Financial Reserves, was adopted in July 2021. This policy provides guidance for the responsibility of reserve oversight and the use of reserves to support the goal of providing adequate infrastructure, services, and resources to meet community requirements, and to aid in the financial sustainability of the City. Both statutory and non-statutory reserves will be maintained to achieve policy objectives to acquire, replace, and renew major capital assets; to ensure stable, predictable tax and utility levies; to minimize the financial impact of unusual and unexpected events; to achieve long-term financial stability; to balance the costs of maintaining sufficient reserve levels to current and future taxpayers; and to fund asset retirement obligations. The following are audited reserve and fund equity balances at Dec. 31, 2021 and projected balances to the end of 2023. The 2023 projected balances assume all 2022 budgeted projects will be completed and funded in that year, however, some of the larger projects may take several years to complete and the reserve balance at the end of 2022 and 2023 may be higher than indicated. ($ thousands)

General Fund Fund Equity Legacy Reserve Reserves for Future Expenditures Statutory Reserve Fund Wastewater Fund Fund Equity Reserves for Future Expenditures Statutory Reserve Fund Water Fund Fund Equity Reserves for Future Expenditures Statutory Reserve Fund Airport Fund Fund Equity Reserves for Future Expenditures Total Reserves & Fund equity Development Cost Charges *Fund equity is also referred to as accumulated surplus Note: Totals may not add due to rounding.

Actual Balance 2021

Projected Balance 2022

Projected Balance 2023

4,852 105,324 130,833 104,206 345,216

4,852 107,881 90,000 74,516 277,250

4,852 111,189 86,483 68,778 271,302

51,502 16,544 15,000 83,046

53,037 8,326 11,470 72,833

55,710 8,583 11,429 75,722

9,963 22,871 165 32,999

9,467 22,114 165 31,746

9,866 24,911 165 34,941

2,407 34,405 36,812 498,074

2,407 38,489 40,896 422,724

2,407 34,728 37,135 419,100

124,585

128,256

145,163

Reserve & fund equity summary by type The Development Cost Charges (DCC) are shown separately from other reserves and fund equity as they are revenues received for specific projects and cannot be used for any other expenditures. Some of the deferred DCC balances include a receivable portion which is not available for use at Dec. 31, 2023. Major projects being funded

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2023 FINANCIAL PLAN

CITY OF KELOWNA

by DCC reserves in the 2023 Preliminary Budget include DCC Parkland Acquisition, park development at Dehart Park and Glenmore Recreation Park, and road development for Sutherland Road and Stewart Road West. Fund equity, also referred to as accumulated surplus, is made up of annual surplus funds. The Council adopted Principles & Strategies for Financial Strength and Stability document includes a strategy that restricts the use of these funds to emergencies such as fires and floods. There is no planned use of accumulated surplus in the 2023 Preliminary Budget. Statutory Reserve Funds are reserves earmarked for a specified purpose by Council pursuant to section 188(2) of the Community Charter. Reserve Funds are established through Council bylaw and use must align with the established purpose. Major projects included in the 2023 Preliminary Budget consist of the continuation of construction and electrical upgrades of the new aerated static pile included in the Landfill Design, Operations and Closure Plan, funded for $8.1M from the Sanitary Landfill reserve; Vehicle replacements, with emphasis on electric or zero emission replacements where possible, funded for $4.1M from the Vehicle and Equipment replacement reserve; Mill creek flood protection, funded for a total of $3.0M between the Infrastructure Levy reserve and the Future Capital project reserves. New in 2022 are two new statutory reserve funds, the Density Bonusing for Public Amenities and Streetscape Reserve Fund, and the Septic Removal Specified Area Reserve Fund. The Density Bonusing for Public Amenities and Streetscape Reserve Fund is to collect payments associated with proposed density bonus provisions of the new Zoning Bylaw 12375. These funds will be utilized for urbanization and streetscape amenities, including sidewalks, curb and gutter, drainage, landscaping, street furniture, bus pullouts, improved on-street parking design and other boulevard streetscape components. The Septic Removal Specified Area Reserve Fund is to hold and manage the funds collected for the design and construction of sanitary sewer connection area projects, which are identified in Sewer Connection Area Prioritization Bylaw No. 12343. General Reserves, or reserves for future expenditures, are not restricted by bylaw and therefore have more flexibility of use. The 2023 Preliminary Budget is requesting to use these reserves to fund various 2023 budget requests such as the design and replacement of a recreation center at Parkinson Recreation Park, funded $3.9M from the Major Recreation Facilities reserve; the implementation of the Climate and Environment Review recommendations as well as the Community Climate Action plan combined, funded for $630k from the Environmental resilience reserve.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

The table below presents the same reserves and fund equity balances and projected balances at a reserve type and category level, detailing the budgeted contributions and expenditures based on Priority one budget requests. ($ thousands)

Actual Balance

Projected balance

2021

2022

4,852

Planning Initiatives - Corporate

14,765

11,769

977

(1,725)

11,021

Major Facilities

16,521

12,263

1,210

(4,300)

9,173

Misc. Recreation Facilities

3,994

3,466

327

3,793

Park Development/Other Land

3,529

2,460

1,681

(312)

3,830

Upgrades/Mntc. Existing Assets

13,536

10,075

1,120

(1,451)

9,744

Operating Exp. Equalization

31,835

21,610

497

(855)

21,252

Operating Rev. Equalization

7,397

6,262

249

(301)

6,210

Transportation & Drainage Capital

12,102

8,025

442

(1,263)

7,203

Multipurpose Facility Investment*

7,014

7,162

236

7,398

Unspent Budget Reserve

20,140

6,910

(50)

6,860

General Reserves subtotal

130,833

90,000

6,739

(10,256)

86,483

Statutory (CWME, Land, Pkg, Cem)

119,371

86,151

32,094

(37,874)

80,371

Legacy Reserves

105,324

107,881

4,958

(1,650)

111,189

Wastewater Reserve/Fund Equity

68,046

61,363

2,930

64,293

Water Reserve/Fund Equity

32,834

31,581

4,237

(1,041)

34,777

Airport Reserve/Fund Equity

36,812

40,896

58,315

(62,076)

37,135

Total Reserves & Fund equity

498,074

422,724

109,273

(112,898)

419,100

General Fund Equity

Contribution to reserve

Budget expend

Projected balance 2023

General Reserves

Development Cost Charges 124,585 128,256 50,214 (33,306) 145,163 *The Multipurpose Facility Investment reserves contain the funds committed by the City for investment into the downtown multi-purpose facility (Prospera Place). Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

DEBT MANAGEMENT The City of Kelowna has various options available to obtain, through borrowing, funds necessary to acquire assets. Debt financing will only be undertaken in compliance with the relevant sections of the Community Charter and related regulations. Policy has been established to ensure that debt financing is used strategically to maintain the City’s financial strength and stability and aligns with the principles laid out in the Council adopted Principles & Strategies for Financial Strength and Stability document. The following section describes each borrowing option, the City’s legal limits, and the estimated outstanding debt balances at Dec. 31, 2023. Under the Community Charter (C.C.) legislation, the provincial regulations establish a limit based on the cost of servicing the aggregate liabilities of the municipality. The cost of servicing the liabilities cannot exceed 25 per cent of the total revenues for the previous year (excluding revenue received for another taxing jurisdiction, tax sharing revenues paid to another municipality, revenue from the disposition of assets, Federal or conditional grants such as water/sewer infrastructure grants and Municipal Finance Authority actuarial adjustments). To further ensure debt affordability and sustainability, the City of Kelowna debt policy also includes internal municipal debt limits of 15 per cent of City own source revenues and 8 per cent of annual tax levy revenues for tax supported debt. The City of Kelowna does not issue bonds. Borrowings are done through the Municipal Finance Authority which has a triple A rating.

General Fund debt servicing costs

Net Debt Servicing Costs are budgeted at $5M in 2023 (2.8 per cent of taxation demand). The current net general debt (including internal financing) as a percentage of taxation demand is 3.4 per cent in 2023, as compared to 2.7 per cent of taxation demand in 2022.

Long Term Debenture (C.C. Section 174 & 179)

Long Term Debenture borrowing involves the repayment of both principal and interest over a period not to exceed 30 years. The City of Kelowna has undertaken to limit the term on long-term borrowing to 20 years wherever possible. Debenture borrowing for most long-term needs requires the assent of electors through an alternative approval process and/or the passing of a referendum. The outstanding debenture borrowing for all funds at January 1st of each year ($ thousands) is: 2021 Balance 2022 Balance 2023 Est. Bal. General Capital Fund 61,145 56,770 52,270 Water Utility Capital Fund 5,250 4,725 4,617 Wastewater Utility Capital Fund 6,566 5,459 4,307 Airport Fund 14,062 11,904 9,675 Total debenture debt $87,023 $78,858 $70,868

Liabilities Beyond the Current Year (C.C. Section 175)

Under an agreement, Council may incur a liability payable after the current year as long as it is not a debenture debt and the liability does not exceed the life expectancy of the activity. If the agreement is for longer than five years or contains a right of renewal that could exceed five years, an alternative approval process must be provided. This borrowing method is used by the City of Kelowna to secure the purchase of land from a vendor.

Short Term Borrowing (C.C. Section 178)

Short Term Borrowing is used to undertake minor capital works programs and must be repaid over a period not to exceed five years. The City of Kelowna's short-term borrowing legal capacity is approximately $7.4M based on $50 per capita and a 2023 population estimate of 148,000. The City uses this borrowing method for the upgrade or construction of facilities and the purchase and development of parks. There are no projects currently funded through short term borrowing.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Revenue Anticipation Borrowing (C.C. Section 177)

Operating loans may be required to meet current expenditures pending receipt of taxation revenue. This most often occurs in the few months prior to the annual July due date for tax payment and is repaid once tax revenue is received. To transact operating loans, a Revenue Anticipation Borrowing By-Law must be approved by Council and is limited to 75 per cent of all property taxes imposed for all purposes in the preceding year.

Loan Guarantees & Commitments (C.C. Section 179)

The City of Kelowna has a loan guarantee in place for the Kelowna Family Y Centre ($700k).

Internal financing

The City of Kelowna may borrow funds from its own general reserves with repayment of principal and interest in order to finance capital projects. This may relate to projects that are pending debenture issues and require interim financing or to projects that make use of reserve funds not required in the near future. There is no statutory limit to this borrowing as it is offset by existing reserve balances. It is an effective financing tool, especially when investment interest is low. Use of statutory reserves is more restricted and is not designed for lending from one reserve fund to another. There is currently one capital project that is being internally financed and the estimated balance at the end of 2023 is: •

West Campus Lands - $2.7M

Internal financing is also used in the Development Cost Charge program where a deficit in one reserve can be temporarily offset by a surplus in another reserve. Repayment to the reserve includes any interest charge. Borrowing over the next five years will be determined by the 10 Year Capital Plan. Further detailed debt repayment information for 2023 and future years is illustrated on the following pages.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

10 Year Debt Repayment Schedule (in thousands) 2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

Remaining

General Fund Principal

3,142

4,800

6,679

7,995

6,932

6,865

7,083

102,186

Interest

2,714

4,694

8,384

11,419

12,743

11,639

11,731

11,880

207,288

Total Expenditures

5,856

7,836

13,185

18,098

20,738

18,571

18,596

18,963

309,474

Recoveries

(1,026)

(965)

(2,873)

Net Debenture Debt Other Debt

4,830

6,810

12,159

17,072

19,712

17,606

17,631

17,998

306,601

MFA Levy

282

Short Term Borrowing

150

3,600

4,991

6,971

12,319

17,232

19,872

17,767

17,792

18,159

310,483

Principal

359

358

357

183

Interest

276

275

274

150

Total Expenditures

635

632

631

138

333

Recoveries

(58)

(55)

(54)

(35)

(333)

Net Debenture Debt

577

103

Principal

841

735

924

1,160

2,887

2,660

38,480

Interest

399

658

1,231

2,662

3,847

3,652

50,989

Total Expenditures

1,240

1,393

2,155

3,822

6,735

6,312

89,469

Recoveries

(1,403)

(1,168)

(689)

(429)

Net Debenture Debt

(162)

225

1,466

3,393

6,306

6,312

89,469

Principal

1,897

2,501

4,707

4,147

3,449

3,622

3,794

3,880

4,484

18,109

Interest

584

738

1,614

2,085

1,864

1,796

1,883

1,949

2,124

2,278

8,059

Temporary Debt Mortgages TOTAL NET DEBT (General) Water Fund

Wastewater Fund

Airport Fund

Total Expenditures

2,481

2,635

4,114

6,792

6,011

5,245

5,505

5,743

6,005

6,762

26,168

Recoveries (AIF Revenue)

(2,481)

(2,635)

(4,114)

(6,792)

(6,011)

(5,245)

(5,505)

(5,743)

(6,005)

(6,762)

(26,168)

7,386

13,122

19,276

23,842

24,650

24,207

24,574

24,471

399,953

Net Debenture Debt

Total net debt payment 5,406 Note: Totals may not add due to rounding

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Five-year net debt repayment ($ thousands) Over the next five years, the City’s net debt in the general fund is expected to increase as the Parkinson Recreation Centre building is replaced and two new ice sheets and a full-size indoor soccer field is added to the Capital News Centre. Further details on these projects can be found in the 10-Year Capital Plan.

25,000 20,000 15,000 10,000 5,000 0 2023

2024

(5,000)

2025

General Fund

Water Fund

2026

2027

Wastewater Fund

Taxation funded debt ($ thousands) Council policy has set internal debt limits based on debt servicing costs at 15 per cent of City own source revenues, and 8 per cent of annual tax levy revenues for tax supported debt. Net debt repayment for 2023 will be 2.8 per cent and is anticipated to reach a maximum of 8.8 per cent over the next five years; decreasing to 6.8 per cent by 2032.

10.0%

$22 $20

9.0%

Debt servicing costs

$18

8.8%

8.0%

$16

7.0%

$14

6.8%

$12

6.0% 5.0%

$10

4.0%

3.0%

$6 $4

2.0%

1.0%

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

Year Cost of debt repayment

0.0%

Debt as a percentage of tax supported debt

The following chart illustrates the annual debt repayment and the per cent of taxation for the next 10 years:

Debt payment as % of tax demand

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Existing debt – all funds The maximum debt that can be undertaken by the City in a given year is based on 25 per cent of previous year revenues. Using 2021 revenues, the current liability servicing limit is $82.3M of which $12.6M of this capacity has been used, leaving an available capacity of $69.7M. While $12.6M represents approved debt capacity, the total debt servicing cost payable (principal and interest) is $12.5M. The balance of $0.1M represents guarantees and commitments as well as approved borrowings which have not been issued. Using current Municipal Finance Authority (MFA) lending rates and a 15-year repayment term the unused borrowing capacity of $69.7M for 2023 is approximately $714M. The following chart shows the borrowing by various funds and the maximum borrowing limit by the solid line.

1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0

Max Capacity $850M – $1,100M

2023

2024

2025

General Fund

2026

Water Fund

2027

2028

2029

2030

Wastewater Fund

2031

2032 Airport

Based on current estimated borrowing rates Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Debt charges analysis – General Fund ($ thousands)

Debentures Parkade Extension & Memorial Parkade MFA 133 Local Improvements - MFA 130 Chapman Parkade - MFA 78 Okanagan Gymnastics - MFA 102 Mission Aquatic Centre - MFA 102 & 104 Police Facilities Debenture recoveries Local Improvement Levies Kokanee Gymnastic - Appropriation to Major Facilities Res. Okanagan Gymnastics Parking Reserve Net debenture debt Short term borrowing MFA levy Net short term debt Temporary debt Mortgage payable Interest on prepaid taxes Bank charges/local improvements

Revised 2022

Preliminary 2023

943 22 215 45 1,667 2,600

943 22 0 61 2,230 2,600

(22) 0 4 (51) (1,158)

5,492

(22) 0 0 (61) (943)

(1,227) 4,265

(1,026) 4,830

11 11

84 125 56

5,856

125 56

265

181

Temporary debt - recovery Parking Reserve Transit

(15) (16)

Net temporary debt

234

150

4,510

4,991

Net debt - General

Dollar change Internal borrowing Total including internal financing

481

10.7%

4,510

4,991

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Debt charges analysis – Water Fund ($ thousands)

Debentures Specified Area 16 - Byrns Rd - MFA 80 Specified Area 18 - Lakeshore Rd - MFA 85 Specified Area 26 - Fisher Rd - MFA 104 Cedar Creek Pump Station - MFA 104 Poplar Point Pump Station - MFA 117 Local Service Area - Aspen Rd - MFA 146 Local Service Area - SOMID - MFA 157

Revised 2022

Preliminary 2023

2 1 19 474 132 3 7

2 1 19 474 103 3 32 639

Debenture recoveries Specified Areas Local Service Areas

(25) (7)

Temporary debt - recovery Net temporary debt Net debt - Water

(58) 577

Net short term debt Temporary debt

(22) (35) (33) 606

Net debenture debt Short term borrowing

635

0 0

606

577

Dollar change

(29)

-4.8%

Internal borrowing Net internal borrowing Total including internal financing

606

577

Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Debt charges analysis – Wastewater Fund ($ thousands)

Debentures Specified Area 20 - North Rutland - MFA 95 Specified Area 21A - McKenzie Bench - MFA 85 Specified Area 22A - Gerstmar - MFA 77 Specified Area 22B - Vista Rd - MFA 85 Specified Area 22C - Hein Rd - MFA 85 Specified Area 22D - Elwyn Rd - MFA 85 Specified Area 22E - Dease Rd - MFA 85 Specified Area 22F - Mills Rd - MFA 85 Specified Area 26 - Fisher Rd - MFA 104 Specified Area 28A - Okaview - MFA 95 Specified Area 29 - Campion Cambro - MFA 85 Specified Area 30 - Ackland - MFA 85 Specified Area 34 - Country Rhodes - MFA 104 Specified Area 36 - Clifton - MFA 104 Brandt's Creek Tradewaste Treatment - MFA 117

Revised 2022

Preliminary 2023

340 71 2 4 14 8 5 18 126 32 46 19 27 17 314

340 71 0 4 14 8 5 18 126 32 46 19 27 17 260 1,043

Debenture recoveries Specified Areas Okanagan Basin Water Board

(1,044) (183)

988 (988) (162)

(1,226) (183)

Net debenture debt

(1,151) (163)

Short term borrowing 0 Net temporary debt Net debt - Wastewater

0 0

(183)

(163)

Dollar change Internal borrowing Local Area Service - Rutland Internal borrowing recoveries Local Area Service - Rutland Net internal borrowing Total including internal financing Note: Totals may not add due to rounding

(20)

10.9%

252

(252)

(183)

(163)

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Debt charges analysis – Airport Fund ($ thousands)

Debentures Airport Expansion - MFA 133 Airport Expansion - MFA 137 Airport Expansion - MFA 139 Airport Expansion - MFA 141

Revised 2022

Preliminary 2023

846 389 325 922

846 389 325 922 2,481

Debenture recoveries AIF Revenue

(2,481)

Net short term debt Temporary debt Net temporary debt Net debt - Airport

(2,481) (2,481) 0

Net debenture debt Short term borrowing

Total including internal financing *Not included in budget Note: Totals may not add due to rounding

(2,481) 0

0 0

Dollar change Internal borrowing *Municipal Services Administration Fee *Enterprise Rental Car Kiosk Net internal borrowing

2,481

0.0%

342 8 350

350

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2023 FINANCIAL PLAN

CITY OF KELOWNA

OPERATING FULL-TIME EQUIVALENT (FTE) POSITION SUMMARY The City of Kelowna requires that all new positions and changes to existing salaried or wage personnel, both permanent and temporary, be supported by a business case. The business case must include the reason for the request, a cost/benefit analysis, the recommended funding source, other alternatives considered and the organizational impact. Below is a visual representation of all 2023 operating budgeted FTEs for the City of Kelowna by division/ department, if all priority one position requests included in this budget volume are approved by City Council.

The following table provides operating FTE counts for the 2021 budget, 2021 actuals, 2022 revised budget and the proposed 2023 preliminary budget. It further details these positions by separating them into the payroll groups of mayor and council, management, union hourly and union salary.

Budget

Actual

Revised

Preliminary

2021

2022

2023

Mayor and Council

9.0

Management

4.0

3.6

5.0

Union hourly

0.1

Union salary

0.0

0.4

0.0

13.1

14.1

Management

6.0

5.9

5.5

6.0

Union hourly

0.4

0.3

0.4

Union salary

4.0

4.2

5.0

5.5

10.4

10.9

11.9

City Administration

City Clerk

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Continued

Budget

Actual

Revised

Preliminary

2021

2022

2023

11.0

13.0

17.0

20.0

Kelowna International Airport Management Union hourly

3.0

3.9

2.5

2.0

Union salary

25.0

21.5

29.5

30.5

39.0

38.4

49.0

52.5

Management

14.7

12.7

14.0

13.2

Union hourly

2.0

8.2

3.0

Union salary

63.0

55.5

65.3

65.5

79.7

76.4

82.3

81.7

Management

16.8

15.4

17.3

17.7

Union hourly

17.9

12.3

18.4

20.2

Union salary

11.5

10.6

13.3

14.0

46.2

38.3

49.0

51.9

Management

30.6

28.6

29.9

30.4

Union hourly

155.2

157.5

151.8

155.6

Union salary

35.0

36.8

34.3

34.9

220.8

222.9

216.0

220.9

Management

3.5

3.7

4.7

5.2

Union hourly

34.7

29.7

46.3

42.3

Planning & Development Services

Partnerships & Investments

Infrastructure General Fund

Wastewater Fund

Union salary

5.4

2.7

7.4

43.6

36.1

58.4

54.9

Management

4.3

4.1

4.3

Union hourly

37.5

34.9

38.2

38.7

Union salary

4.5

4.6

4.5

46.3

43.6

47.0

47.5

Management

9.0

9.7

10.0

Union hourly

56.3

47.1

60.9

63.7

Union salary

8.0

9.0

9.5

73.3

64.8

79.9

83.2

Water Fund

Active Living & Culture

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Budget

Actual

Revised

Preliminary

2021

2022

2023

Management

19.0

22.2

21.5

22.4

Union hourly

1.7

5.6

2.5

Union salary

1.0

2.6

2.0

3.3

21.7

30.4

26.0

28.2

Management

25.5

22.3

26.5

27.5

Union hourly

27.0

30.5

28.3

27.9

Union salary

71.5

62.3

76.5

80.0

124.0

115.1

131.3

135.4

Management

4.0

4.7

5.2

6.0

Union hourly

1.8

1.9

1.8

Union salary

139.5

144.1

140.0

142.0

145.3

150.7

147.0

149.8

Management

18.0

16.9

18.5

19.0

Union hourly

0.1

1.3

0.1

0.8

Union salary

31.3

34.1

32.8

33.8

49.4

52.3

51.4

53.6

Management

13.6

13.1

14.9

15.9

Union hourly

4.0

7.1

4.3

4.0

Union salary

53.7

46.2

53.5

55.0

71.3

66.4

72.7

74.9

984.1

958.9

1,035.0

1,060.5

Continued Corporate & Protective Services Corporate Services

Community Safety

Fire Department

Corporate Strategic Services

Financial Services

Total full-time equivalent positions (all funds) Note: Totals may not add due to rounding

2023 Operating full-time equivalent (FTE) position changes Each year position counts change with the addition, reduction, or movement of positions. The narrative below explains the changes that have been made, or are being requested, for 2023 by each division/department. City Clerk Addition 0.5 FTE for annualization of 2022 operating requests Addition 0.5 FTE for the Policy Analyst Position operating request Kelowna International Airport Addition 1.0 FTE for annualization of 2022 operating requests Addition 1.0 FTE for various positions reduced through 2021 operating requests reductions Addition 0.5 FTE for the Airport Air Service Development Manager Position operating request

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2023 FINANCIAL PLAN

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Addition 0.5 FTE for the Airport Development Services Manager Position operating request Addition 0.5 FTE for the Airport Operations Clerk Position operating request Planning & Development Services Reduction 2.6 FTE for annualization of 2022 operating requests Addition 0.5 FTE for the Climate Action and Environmental Stewardship Manager Position operating request Addition 0.5 FTE for the Development Technician Position operating request Addition 1.0 FTE for the Project Planning Coordinator Term Position operating request Partnership & Investments Addition 1.9 FTE for annualization of 2022 operating requests Addition 0.5 FTE for the Buildings Planning Supervisor Position operating position Addition 0.5 FTE for the Mechanical Engineer - Facilities Position operating position Infrastructure Addition 1.7 FTE for annualization of 2022 operating request Addition 0.9 FTE for various Maintenance staff wages from 2022 ongoing operating requests Addition 0.5 FTE for the Accountant operating request Addition 0.4 FTE for the Senior Transportation Engineer Position operating position Addition 0.1 FTE for the Utilities Construction Supervisor Position operating request Addition 0.1 FTE for the Parks Drinking Fountain Replacement operating request Addition 0.1 FTE for the Parks, Pathways and Parking Lot Lighting operating request Addition 0.1 FTE for the Strategic Transportation Partnership of Central Okanagan 2023 Transition operating request Addition 1.0 FTE for the Winter Maintenance Budget Request Wastewater Reduction 4.6 FTE for annualization of 2022 operating requests Addition 0.2 FTE for the Source Control Co-op Position operating request Addition 0.4 FTE for the Wastewater Co-op Student Positions operating request Addition 0.5 FTE for the Wastewater Treatment Operator Position operating request Water Addition 0.2 FTE for the Water Quality Co-op Student Position operating request Addition 0.3 FTE for the Water Supply Millwright Position operating request Active Living & Culture Addition 3.3 FTE for annualization of 2022 operating requests Corporate & Protective Services Corporate Services Addition 1.7 FTE for annualization of 2022 positions Addition 0.5 FTE for HR Coordinator Position operating request Community Safety Addition 1.1 FTE for annualization of 2022 operating requests Addition 0.5 FTE for the Bylaw Services - Part-time Positions and Overtime operating request Addition 0.5 FTE for the Community Safety Advisor Position operating request Addition 0.5 FTE for the Police Services - Digital Extraction Technician Position operating request Addition 0.5 FTE for the Police Services - Executive Assistant Position operating request Addition 1.0 FTE for the Public Safety Levy operating request – Two Senior Bylaw Officers positions

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Fire Department Addition 0.8 FTE for annualization of 2022 operating requests Addition 2.0 FTE for the Public Safety Levy operating request – Four Fire Fighter positions Corporate Strategic Services Addition 1.0 FTE for annualization of 2022 operating requests Addition 0.5 FTE for the Business Systems Analyst - Digital Transformation Specialist Position operating request Addition 0.7 FTE for the Two Communications Summer Student Positions operating request Financial Services Addition 1.2 FTE for annualization of 2022 operating requests Addition 1.0 FTE for the Asset Management System Manager Position operating request

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2023 FINANCIAL PLAN

CITY OF KELOWNA

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FINANCIAL SUMMARIES

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL SUMMARIES FINANCIAL PLAN SUMMARY ($ THOUSANDS) The following table reports the actual results for the previous year, the revised budget for the current year, and the proposed budget for the Financial Plan year. The net impact to property owners, or the change to the property tax rate, is based on the annual taxation demand less the new construction tax revenue. Actual 2021

Revised 2022

Preliminary 2023

General revenues

(13,737)

(12,209)

(15,286)

Net operating budget 2021 surplus Pay-as-you-go capital

159,441 87 11,945

165,624

176,608

13,693

14,152

Taxation demand

157,736

167,107

175,474

New construction tax revenue

(2,880)

(3,160)

(1,673)

3.94%

3.01% 1.00% 4.01%

Municipal Impact Public Safety Levy Impact Net property owner impact Note: Totals may not add due to rounding

4.04%

ANALYSIS OF TAX DEMAND ($ THOUSANDS) This next table goes into further detail comparing the proposed property owner impact to the previous year and provides the percentage change.

Gross departmental operating expenditures

2022 295,875

2023 285,275

Change (10,599)

% change (3.58)%

Net departmental revenue

(134,556)

(114,368)

20,188

(15.00)%

Net departmental operating expenditure

161,319

170,907

9,589

5.94%

Net general debt

4,305

5,701

1,395

32.41%

Capital expenditures from general taxation

13,693

14,152

459

3.35%

General revenue

(12,209)

(15,286)

(3,076)

25.20%

Gross tax demand

167,107

175,474

8,367

5.01%

Less estimated new construction revenue

(3,160)

(1,673)

Net property owner impact Note: Totals may not add due to rounding

3.94%

4.01%

0.07%

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2023 FINANCIAL PLAN

CITY OF KELOWNA

REVENUES & EXPENDITURES General revenues ($ thousands) General Revenues are revenues that are not specifically attributable to or generated by any particular City of Kelowna division. The graph below summarizes the City’s general revenues type by percentage.

General revenues Interest & penalties 59% Taxes - private utilities 16% Provincial contributions 13% Franchise fee 11% Fed. cont./Licences/Misc. revenues 1% Total $15.3M

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

Licences Franchise fee Interest & penalties Miscellaneous revenues Federal contributions Provincial contributions (Inc. traffic fine revenue) Taxes - private utilities (1% in Lieu) Total general revenues Property taxation Total general revenues & taxation Note: Totals may not add due to rounding

Actual 2021 1 1,338 8,436 (669) 145 2,182 2,253 13,737

Revised 2022 3 1,605 6,288 (115) 145 1,986 2,299 12,209

Preliminary 2023 3 1,761 8,993 (109) 150 2,027 2,461 15,286

157,736 171,473

167,107 179,317

175,474 190,760

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2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund – net operating expenditures by division ($ thousands) The Financial Plan expenditure analysis uses divisional reporting with the exception of Corporate Services, Community Safety, Fire Department and Debt & Other. Depicted in the graph and table below are the net operating expenditures of each over the three-year period.

Net expenditures by year 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000)

P&DS

P&I

AL&C

2021

2022

2023

SAFE

CSS

D&O

Actual 2021

Revised 2022

Preliminary 2023

1,533

1,944

1,988

City Clerk (CC)

1,536

1,518

1,617

Planning & Development Services (P&DS)

(4,555)

(119)

(382)

Partnerships & Investments (P&I)

8,336

9,299

9,872

Infrastructure (IN)

36,688

37,497

40,453

Active Living & Culture (AL&C)

9,331

11,210

11,517

Corporate Services (CS)

5,327

6,334

7,585

Community Safety (SAFE)

42,935

51,556

52,499

City Administration (CA)*

Corporate & Protective Services

Fire Department (FD)

20,874

21,920

22,588

Corporate Strategic Services (CSS)

8,238

9,401

10,178

Financial Services (FS)

5,454

6,649

6,798

23,744 159,441

8,414 165,624

11,895 176,608

Debt & Other (D&O) Total division net operating expenditures * City Administration includes City Management and Mayor & Council Note: Totals may not add due to rounding

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2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund – taxation capital summary ($ thousands) The taxation capital summary information below is separated into the eight General Fund capital cost centres. The graph and table illustrate total taxation capital expenditures of each infrastructure cost centre over a three-year period showing the actual amount used in the previous year, the revised budget of the current year, and the proposed use for the Financial Plan year.

Pay-as-you-go capital expenditures by department

7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

Fire

Information Services

Real Estate & Parking

2021

Fire

Building

2022

Vehicle & Transportation Mobile Equipment

Parks

Storm Drainage

2023

Actual

Revised

Preliminary

2021

2022

2023

Information Services

555

503

785

Real Estate & Parking

694

2,716

984

Building

2,678

752

1,761

Parks

2,481

3,894

5,981

255

109

Transportation

4,889

4,527

3,532

Storm Drainage

621

1,046

1,000

11,945

13,693

14,152

Vehicle & Mobile Equipment

Total taxation capital Note: Totals may not add due to rounding

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2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund excluding General Revenue Revenues/Expenditures by Category ($ thousands)

Revenue Property Tax Parcel Tax Fees and Charges Other Revenue Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Revenue Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services Debt Interest Debt Principal Internal Allocations Transfers to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus Total Expenditures Net Operating Expenditures Capital Expenditures Gross Expenditures Other Funding Sources Taxation Capital Net Operating & Tax Capital Exp.

Actual 2021

Revised 2022

Preliminary 2023

0 ( 146) ( 83,025) ( 43,765)

0 ( 142) ( 75,441) ( 38,736)

0 ( 142) ( 73,415) ( 37,166)

( 2,413) ( 654) ( 7,974) _____________ ( 137,976)

( 2,320) ( 1,449) ( 17,849) _____________ ( 135,938)

( 1,534) ( 795) ( 2,490) _____________ ( 115,543)

89,096 8,724 41,326 82,562 2,425 5,142 4,165

93,267 8,330 52,791 99,491 2,464 5,922 5,748

93,936 8,583 40,143 97,375 2,839 3,948 4,463

40,162 0 23,814 _____________ 297,417

28,400 0 5,150 _____________ 301,562

31,496 0 9,369 _____________ 292,151

159,441

165,624

176,608

61,157 ( 49,212) _____________ 11,945 _____________ 171,386

154,408 ( 140,715) _____________ 13,693 _____________ 179,317

94,241 ( 80,089) _____________ 14,152 _____________ 190,760

Note: Totals may not add due to rounding

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Utility Funds Revenues/Expenditures by Category ($ thousands)

Gross Expenditures Other Funding Sources Utility Capital Net Operating & Utility Capital Exp.

Actual 2021

Revised 2022

Preliminary 2023

0 ( 3,469) ( 60,468) ( 9,520)

0 ( 3,286) ( 80,226) ( 2,827)

0 ( 3,291) ( 91,177) ( 3,115)

0 0 ( 3,686) _____________ ( 77,143)

0 0 ( 9,022) _____________ ( 95,361)

0 0 ( 5,704) _____________ ( 103,287)

12,349 1,660 14,925 137 1,223 3,833 6,461

16,501 1,916 20,022 1,876 1,239 2,926 6,813

16,934 1,944 22,629 1,966 1,142 2,970 5,281

168 0 20,236 _____________ 60,992

198 0 30,782 _____________ 82,272

198 0 38,498 _____________ 91,564

( 16,151)

( 13,089)

( 11,724)

26,530 ( 16,435) _____________ 10,096 _____________ ( 6,055)

119,150 ( 106,061) _____________ 13,089 _____________ 0

54,398 ( 42,674) _____________ 11,724 _____________ 0

Note: Totals may not add due to rounding

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2023 FINANCIAL PLAN

CITY OF KELOWNA

All funds – revenues/expenditures ($ thousands) This table is a high-level summary that includes all revenues and expenditures. The General Fund is reported separately. The Utility Fund amounts are made up of the Airport, and the Water and Wastewater Utilities. Actual

Revised

Preliminary

2021

2022

2023

Taxation

(157,736)

(167,107)

(175,474)

General revenues

(13,737)

(12,209)

(15,286)

General fund revenues

(137,976)

(135,938)

(115,543)

Other capital funding

(49,212)

(140,716)

(80,089)

(358,661)

(455,970)

(386,392)

Revenues General fund

Utility funds Utility fund revenues

(77,143)

(95,361)

(103,287)

Other capital funding

(16,435)

(106,061)

(42,674)

(93,577)

(201,423)

(145,961)

(452,238)

(657,393)

(532,354)

General fund expenditures

297,417

301,562

292,151

Capital expenditures from tax demand

11,945

13,693

14,152

Other capital expenditures

49,212

140,716

80,089

358,574

455,970

386,392

Utility fund expenditures

60,992

82,272

91,564

Capital expenditures from utility

10,096

13,089

11,724

Other capital expenditures

16,435

106,061

42,674

Total revenues Expenditures General fund

Utility funds

Total expenditures

87,522

201,423

145,961

446,096

657,393

532,354

Note: Totals may not add due to rounding (6,142) *Difference in 2021 actuals due to: General fund surplus

(87)

Utility funds surplus

(6,055) (6,142)

Page 75

2023 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of total expenditures The graphs below illustrate the total proposed expenditure budgets first by fund, and then by expenditure type.

Expenditures by type

Expenditures by fund

Salaries & wages 21% Internal equipment 2% General 73%

Materials 12%

Airport 18%

Contract services 18%

Water 4%

Debt 2%

Wastewater 5%

Internal allocations 2% Transfers to funds 15% Capital 28%

Total $532.4M

Expenditures by fund ($ thousands)

Expenditures by type ($ thousands)

This table reports the dollar value of the expenditure budget for each fund, separating the operating and capital information for the proposed Financial Plan year.

The table below presents the same total operating and capital expenditures information for each expenditure type.

Actual 2021

Revised 2022

Preliminary 2023

Operating

Capital

General

358,574

455,970

292,151

94,241

Airport

39,262

128,940

56,891

39,025

Water

28,055

26,566

16,938

6,007

Wastewater

20,205

45,916

17,734

9,366

Total 446,096* * Net of surplus $6,141k

657,393

Subtotal

383,715

Actual 2021

Revised 2022

Preliminary 2023

Salaries & wages

101,445

109,768

110,870

Internal equipment

10,384

10,245

10,527

Materials

56,251

72,813

62,772

Contract services

82,699

101,367

99,341

Debt

12,623

12,550

10,899

Internal allocations

10,626

12,562

9,744

Transfers to funds

84,381

64,530

79,561

148,639

Capital

87,687

273,559

148,639

532,354

Total

446,096

657,393

532,354

Note: Totals may not add due to rounding

Page 76

2023 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of total revenues The City of Kelowna has multiple revenue sources. Depicted in the graphs below are the proposed revenue budgets first by fund, and then by revenue source.

Revenues by source

Revenues by fund

Current year taxation 32% Parcel taxes 1% General 73%

Fees and charges 31% Debenture/borrowing 0%

Airport 18%

General revenues 3%

Wastewater 4%

Other revenue 3% Grants 4%

Water 5%

Interdept. transfers 2% Reserves and surplus 24%

Total $532.4M

Revenues by fund ($ thousands)

Revenues by source ($ thousands)

This table reports the dollar value of the revenue budget for each fund, separating the operating and capital information for the proposed Financial Plan year.

The table below presents the same total operating and capital revenues information for each revenue source.

Actual

Revised

Preliminary

Actual

Revised

Preliminary

2021

2022

2023

2021

2022

2023

157,736

167,107

175,474

3,615

3,428

3,434

143,493

155,667

164,593

7,159

1,390

General revenues

13,737

12,209

15,286

Other revenue

21,599

15,509

14,680

Grants

30,507

38,438

21,229

Interdept. transfers

10,190

11,214

9,308

Current year taxation Parcel taxes Operating

Capital

Fees and charges Debenture/borrowing

General

358,661

455,970

292,151

94,241

Airport

39,262

128,940

56,891

39,025

Water

30,643

26,566

16,938

6,007

Wastewater

23,672

45,916

17,734

9,366

383,715

148,639

Reserves and surplus

71,361

246,660

126,961

532,354

Total

452,238

657,393

532,354

Subtotal Total

452,238

657,393

Note: Totals may not add due to rounding

Page 77

2023 FINANCIAL PLAN

CITY OF KELOWNA

Revenues – total general & utility ($ thousands) Net general operating

Licences Franchise fee Interest & penalties Miscellaneous revenues Federal contributions Provincial contributions (inc. traffic fine revenue) Taxes – private utilities (1% in lieu) Property taxation

Capital Funding Source

CWME - Cemetery Replacement CWME - Community Works Fund CWME - Fire Equipment CWME - Future Capital Projects Reserve CWME - Infrastructure Levy Reserve CWME - Municipal Works CWME - Sanitary Landfill CWME - Vehicle and Equipment Replacement Reserve DCC - Park Acquisition DCC - Park Development DCC - Road A DCC - Road B DCC - Road I General - Arterial Roads Reserve General - Building Repair General - Energy Management Rebate General - Finance/Major System Software General - Fire Dispatch General - H2O Center General - Kelowna Sportsfields General - Major Recreation Facilities General - Off-Road Bikeway General - Parks Development General - PPP Opportunity Reserve General - RCMP Contract General - Theatre Improvement General - Transit Facility Enhancement Land - Land Sales Reserve Land - Parkland Reserve Parking - Municipal Boating Facilities Reserve Parking - Parking Reserve Parking - South Pandosy Town Center Reserve Various other funding sources Subtotal Net general operating & capital revenue Utilities Airport Water Wastewater Total utilities

Revised 2022

Preliminary 2023

3 1,605 6,288 (115) 145 1,986 2,299 167,107

3 1,761 8,993 (109) 150 2,027 2,461 175,474

179,317

190,760

140,716 320,032

538 7,375 127 1,048 5,876 923 12,035 4,058 14,513 6,316 144 2,824 7,193 254 583 251 370 185 350 45 3,900 109 154 1,000 95 92 234 1,250 1,452 575 705 38 5,479 80,089 270,849

81,062 5,054 19,945 106,061

39,025 1,647 2,002 42,674

Reserves

Total general & utilities operating & capital

426,093

(Excluding Library, School, Hospital, B.C. Assessment Authority & Regional District), Note: Totals may not add due to rounding

313,523

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Expenditures – total general & utility ($ thousands) Capital Expenditures Revised 2022

Net Operating

General/ Utility Revenue

Other Funding Sources

Preliminary 2023

City Administration

1,944

1,988

City Clerk

1,518

1,617

General

Planning & Development Services

(119)

(382)

Partnerships & Investments

32,059

9,872

2,745

9,761

22,378

Infrastructure

161,739

40,453

10,622

68,207

119,282

Active Living & Culture

11,210

11,517

Corporate Services

6,334

7,585

Community Safety

51,556

52,499

Fire Department

25,906

22,588

312

22,900

Corporate Strategic Services

12,821

10,178

785

1,810

12,773

Financial Services

6,649

6,798

Debt & Other

8,414

11,895

320,032

176,608

14,152

80,089

270,849

Airport

81,062

39,025

Water

5,054

(4,360)

4,360

1,647

Wastewater

19,945

(7,364)

7,364

2,002

Net utilities operating & capital expenditures

106,061

(11,724)

11,724

42,674

Total expenditures

426,093

164,884

25,876

122,763

313,523

Corporate & Protective Services

Net general operating & capital expenditures Utilities

(Excluding Library, School, Hospital, B.C. Assessment Authority & Regional District) Note: Totals may not add due to rounding

Page 79

2023 FINANCIAL PLAN

CITY OF KELOWNA

Ongoing budget impacts – General Fund ($ thousands) Below is a projection of the net property owner impacts over the next five years using the best information available at the time of preparation of the Preliminary Budget volume. This projection will be updated for the Final Budget volume in April of 2023 and additional details on projections will be provided. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. For the years after 2023, budgets have been adjusted for current one-time projects, changes in operating budgets from previously approved requests, new capital projects included in the Council endorsed 10-Year Capital Plan, growth and/or inflationary rates, and other key assumptions. Although this forward-looking information is based on what is believed to be reasonable assumptions, there can be no assurance that this information will prove to be accurate as actual results and future events could differ materially from the anticipated information contained in this forecast.

General revenues Net operating budget Pay-as-you-go capital Taxation demand

2023 (15,286) 176,608 14,152 175,474

2024 (15,612) 188,253 15,886 188,528

2025 (15,946) 202,173 17,086 203,313

2026 (16,294) 214,547 18,380 216,632

2027 (16,633) 223,812 19,654 226,833

New construction tax revenue

(1,673)

(2,790)

(2,998)

(3,233)

(3,184)

Municipal Impact 3.01% Public Safety Levy Impact 1.00% Net property owner impact 4.01% Note: Totals may not add due to rounding.

4.85% 1.00% 5.85%

5.25% 1.00% 6.25%

3.96% 1.00% 4.96%

2.24% 1.00% 3.24%

Page 80

OPERATING BUDGET

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

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

OPERATING BUDGET SUMMARY Operating expenditures & revenues Operating requests are presented using the City operating structure: Division, Department and Branch. For example: Division: Corporate & Protective Services Department: Community Safety Branch: Police Services Each operating request is categorized into the three categories maintain, growth and new. Maintain requests are the budgets requested to maintain current programs. Growth requests are the budgets requested for current programs due to increased demand. New requests are the budgets requested for new programs. The requests are presented under the requesting division and are presented in divisional rank order within the three categories. Airport Fund, Water Fund, Wastewater Fund, Corporate Services, Community Safety, Fire Department, General Revenues and Debt & Other are presented on a department or fund level. Operating requests related to capital are included in the associated capital request and are marked on the operating summary with CAP. Operating requests with a capital impact are marked with a V&E on the summary sheet to indicate which operating requests have vehicle and equipment capital impacts.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund The 2023 Financial Plan includes 91 General Fund Priority one (P1) operating requests that total $13.3M, of which $8.2M is requested to be funded from taxation. These requests focus on a continued commitment to community safety, investing in assets to help reduce the infrastructure deficit, reviving vibrancy through accessible and multipurpose amenities for all to enjoy, and taking action on climate change. In addition to the P1 operating requests, there are 21 Priority two (P2) General Fund requests that are included for Council’s consideration totaling $1.5M. The P2 requests are not included in the summary totals. The 2023 operating request revenues largely fall into maintaining initiatives at 61 per cent, followed by 26 per cent related to new revenue programs and 13 per cent related to growth programs. Requests for operating expenditures are primarily for maintaining existing operations at 61 per cent followed by 30 per cent of new programs and nine per cent for growth. Airport Fund The Kelowna International Airport continues to recover from the COVID-19 pandemic and the operating requests reflect this recovery with a 2023 forecasted increase in passenger growth of 2.1M. The eight P1 operating requests include program increases of $2.4M and revenue increases of $9.9M. The 2023 operating request revenues and expenditures are 100 per cent dedicated to growth requests. There are no P2 operating requests for the Airport.

Water Fund The City of Kelowna’s Water Utility is requesting to spend $485k over six P1 operating requests. The operating requests will help the utility to maintain current programs, increase services levels through new positions, help to fund operations maintenance cost increases, and assess the reservoir dam decommissioning. 2023 Water utility operating requests are categorized by 47 per cent of maintain requests, while growth is 40 per cent followed by 12 per cent for new requests. There are no P2 operating requests for the Water Utility.

Wastewater Fund The Wastewater Utility has five P1 operating requests totaling $492k. The 2023 operating requests focus on operations management and succession planning, system wide sampling program, and operating impacts for a new sewer connection area. Wastewater utility revenue budgets have been adjusted for Council approved rate changes of three per cent and growth and have been completed through divisional adjustments. Requests for operating expenditures are primarily maintaining initiatives at 80 per cent, 18 percent related to new programs and two per cent due to growth. There are no P2 operating requests for the Wastewater Utility.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Division/department operating requests funding sources ($ thousands) The following table provides a summary of the divisions/departments priority one and priority two operating request totals highlighting the amount coming from taxation or utility fees versus other funding sources. Other funding sources could include reserves, user fees, grants, or community/developer contributions.

Operating requests summary

Funded from City Administration City Clerk Planning & Development Services Partnerships & Investments Infrastructure Active Living & Culture Corporate & Protective Services Corporate Services Community Safety Fire Department Corporate Strategic Services Financial Services General Revenues Debt & Other Total general fund Funded from Airport Water

Wastewater Total utilities Total all funds operating Note: Totals may not add due to rounding

Taxation 0 125 174 508 996 (76) 812 715 444 332 132 0 4,038 8,198 Utility 0 485 457 942 9,140

Priority 1 Other Sources 0 0 1,004 290 4,273 155 0 105 300 (55) 171 65 0 (1,223) 5,086 Other Sources 2,439 0 35 2,474 7,560

Total

Taxation 0 0 0 286 167 30 0 0 718 0 238 42 0 0 1,481

Total 2,439 485 492 3,416 16,700

Utility

0 125 1,179 798 5,268 79 0 917 1015 389 503 197 0 2,815 13,284

0 0 0 0 1,481

Priority 2 Other Sources 0 0 0 0 10 0 0 0 0 0 0 0 0 0 10 Other Sources 0 0 0 0 10

Total

0 0 0 286 177 30 0 0 718 0 238 42 0 0 1,491

Total 0 0 0 0 1,491

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Net operating budgets by division ($ thousands) The table below displays the General, Airport and Utility Funds net operating budget by division/department including the priority one requests.

City Administration City Clerk Planning & Development Services Partnerships & Investments Infrastructure Active Living & Culture Corporate & Protective Services Corporate Services Community Safety Fire Department Corporate Strategic Services Financial Services Debt & Other Total net operating budget - general fund Airport Water Wastewater Total net operating budget - airport and utility funds Note: Totals may not add due to rounding

Expend/ other 1,988 1,707 11,358 20,662 99,218 17,452

Revenues 0 (90) (11,740) (10,790) (58,765) (5,935)

Net 1,988 1,617 (382) 9,872 40,453 11,517

Per cent of Total 1.1% 0.9% (0.2%) 5.6% 22.9% 6.5%

8,231 59,535 25,936 10,573 8,348 27,143 292,151 56,891 16,938 17,734 91,564

(647) (7,036) (3,347) (394) (1,550) (15,249) (115,543) (56,891) (21,298) (25,098) (103,287)

7,585 52,499 22,588 10,178 6,798 11,895 176,608 0 (4,360) (7,364) (11,724)

4.3% 29.7% 12.8% 5.8% 3.9% 6.7% 100.0% 0.0% 37.2% 62.8% 100.0%

General fund – net operating budget by division/department ($ millions) The bar graph below compares the level of spending for each General Fund operating divisions in millions. City Administration

2.0

City Clerk

1.6

Planning & Development Services

(0.4)

Partnerships & Investments

9.9

Infrastructure

40.5

Active Living & Culture Corporate Services

11.5 7.6

Community Safety

52.5

Fire Department

22.6

Corporate Strategic Services Financial Services Debt & Other

10.2 6.8 11.9

Total $176.6M Note: Totals may not add due to rounding

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

65,000

(65,000) OG

65,000

(65,000)

59,700

(59,700) OG

Total New

59,700

(59,700)

Division Priority 1 Total

124,700

(124,700)

City Clerk Growth 112 Legal Expense Total Growth New 112 Policy Analyst Position

Planning & Development Services Division Maintain 137 Development Technician Position

61,000

(61,000)

0 OG

137 Climate Action and Environmental Stewardship Manager Position

74,300

(74,300) OG

135,300

(61,000)

(74,300)

20,000

(20,000)

0 OG

138 North End Neighbourhood Plan

40,000

(40,000)

0 OT

139 Project Planning Coordinator Term Position 139 Infill and Housing Policy Program Base Budget

103,300

(103,300)

0 OG

25,000

(25,000) OG

Total Growth

188,300

(60,000)

(103,300)

(25,000)

140 Urban Center Planning and OCP Implementation 140 Diversifying our Housing Options

150,000

(75,000)

(75,000) OG

75,000

(75,000)

0 OT

141 Climate and Environment Review Recommendations 141 Community Climate Action Implementation

390,000

(390,000)

0 OT

240,000

(240,000)

0 OT

Total New

855,000

(705,000)

(75,000)

Division Priority 1 Total

1,178,600

(826,000)

(178,300)

(174,300)

Total Maintain Growth 138 Reproduction Services

New

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CITY OF KELOWNA

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

300,000

(300,000) OG

100,000

(100,000)

0 OT

50,000

(50,000)

0 OT

450,000

(150,000)

(300,000)

150,000

(140,000)

(10,000) OG

67,700

(67,700) OG

4,000

(4,000) OG

59,100

(59,100) OG

52,500

(52,500) OG

15,000

(15,000) OG

348,300

(140,000)

(208,300)

0 OG

Total Maintain

Division Priority 1 Total

798,300

(150,000)

(140,000)

(508,300)

125,000

(125,000)

0 OG

2,609,100

(1,335,200)

(1,759,000)

485,100 OG

171 Winter Maintenance Budget Request 171 Parks Beaches & Mowing Contract Increases 172 Strategic Transportation Partnership of Central Okanagan 2023 Transition 356 CAP Robotic Sports Field Line Painter

200,000

(200,000) OG

627,800

(40,900)

(586,900) OG

124,300

(4,500)

(37,800)

(82,000) OT

10,000

(10,000) OG

172 Asphalt Maintenance Operating Request 173 Irrigation 4G Communications

75,000

(75,000) OG

10,000

(10,000) OG

173 Landfill - Design, Operations and Closure Plan update 364 CAP Stewart DCC (Crawford - Swamp)

600,000

(600,000)

0 OT

0 OG

348 CAP Knox Mountain Park Improvements

12,000

(12,000) OG

Partnerships & Investments Division Maintain 153 Building Maintenance Deficiency & Escalation Adjustment 153 Strategic Land Development Projects 154 H2O - Mechanical Room Slab Repair Total Maintain New 154 Intergovernmental Relations Advisor 155 Buildings Planning Supervisor Position 155 Accelerate Okanagan OKGN Angel Summit Sponsorship 156 Mechanical Engineer - Facilities Position 156 Safety, Security and Regulatory Maintenance 157 Partnerships Consulting Services Total New Maintain 225 * Security - Additional Patrols

Infrastructure Division Maintain 170 Landfill - Leachate Aeration and Bin Repairs 170 Transit Base Operating Cost

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

174 Parks, Pathways and Parking Lot Lighting 351 CAP Parks Large Capacity Waste Receptacles 349 CAP Irrigation Renewal

30,000

(30,000)

0 OG

17,500

(17,500) OG

0 OG

174 Cemetery Materials and Supplies Increase 175 Parks Drinking Fountain Replacement

31,000

(31,000)

0 OG

45,500

(45,500)

0 OG

Total Maintain

4,517,200

(872,400)

(1,339,700)

(1,796,800)

370 CAP Local Street Urbanization Program

0 OG

175 Utilities Construction Supervisor Position 347 CAP Glenmore Recreation Park (DCC) Phase 3 367 CAP Casorso 3 DCC (Lanfranco Barrera), ATC 375 CAP Crosswalk Safety, Signals and Flashers 369 CAP Glenmore 4 DCC (Kane - South Yates), ATC 377 CAP Okanagan College Exchange Capacity Expansion 375 CAP Sidewalk Network Expansion Program 176 Downtown Transportation Review

14,000

(9,000)

(5,000) OG

0 OG

12,000

(12,000) OG

1,200

(1,200) OG

4,000

(4,000) OG

0 OG

100,000

(25,000)

(75,000) OT

176 Miscellaneous Drainage Program Increase Bicycle Network Improvement CAP 374 Program 356 CAP Fleet Growth - General Fund

50,000

(50,000) OG

0 OG

16,700

(16,700) OG

Total Growth

197,900

(25,000)

(9,000)

177 Downtown Cleanup Patrol

51,800

(51,800) OG

177 Senior Transportation Engineer Position 178 FireSmart Chipping Program

72,200

(72,200) OG

40,000

(40,000)

0 OG

100,000

(100,000)

0 OT

200,000

(50,000)

(150,000) OT

49,400

(49,400) OG

40,000

(40,000)

0 OG

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support

0 OG

Total New

553,400

(190,000)

(40,000)

(508,300)

Growth

(163,900)

New

378 CAP Transit - Bus Stop and Amenity Improvements 178 Stormwater Utility Business Case and Implementation Plan 179 Stormwater Basin Plan - Central Area 179 Accountant Position 180 Time Series Data Analytics

(323,400)

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

5,268,500

(1,087,400)

(1,339,700)

(1,796,800)

(49,000)

0 OG

75,000

(75,000)

0 OT

0 OG

3,600

(5,000)

1,400 OG

78,600

(75,000)

(5,000)

1,400

0 OG

40,000

(40,000)

0 OT

35,000

(35,000)

0 OT

75,000

(75,000)

75,000 OG

Total Growth

(75,000)

75,000

Division Priority 1 Total

78,600

(150,000)

(5,000)

76,400

55,000

(30,000)

(25,000) OG

55,000

(30,000)

(25,000)

Division Priority 1 Total

Taxation Cat

(995,600)

Active Living & Culture Division Maintain # 212 Community Development Coordinator - Outdoor Shelter Position 212 Future Adaptability and Sustainability Program # 213 Peer Navigator Program 339 CAP Kelowna Community Theatre Improvements Total Maintain Growth # 213 Arenas & Stadiums Attendant Position # 214 Community & Event Support Grant Increase Total Growth New 214 Journey Home Strategy Implementation Review 215 Engagement with Indigenous Communities Total New Growth 237 * Community Safety Plan Implementation Initiatives

Corporate & Protective Services Division Corporate Services Maintain 225 Security - Additional Patrols Total Maintain New 225 HR Coordinator Position

41,300

(41,300) OG

226 Diversity, Equity and Inclusion Action Items 226 Professional Consulting for Health & Wellness Strategies 283 * Public Safety Levy

40,000

(40,000)

0 OT

35,000

(35,000)

0 OG

745,320

(745,320) OG

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

861,620

(75,000)

(786,620)

916,620

(105,000)

(811,620)

46,000

(46,000) OG

46,500

(46,500) OG

65,900

(65,900) OG

300,000

(300,000)

0 OG

75,000

(75,000) OG

533,400

(300,000)

(233,400)

0 OG

481,680

(481,680) OG

481,680

(481,680)

Department Priority 1 Total 1,015,080

(300,000)

(715,080)

Total New

Department Priority 1 Total

Taxation Cat

Corporate & Protective Services Division Community Safety Growth 235 Community Safety Advisor Position 235 Police Services - Administrative Assistant Position 236 Bylaw Services - Part-time Positions and Overtime 236 Outdoor Overnight Sheltering 237 Community Safety Plan Implementation Initiatives Total Growth New # 237 Police Services - Digital Extraction Technician Position 283 * Public Safety Levy Total New

Corporate & Protective Services Division Fire Department Growth 246 Kelowna Fire Department Master Plan

150,000

(150,000)

0 OT

Total Growth

150,000

(150,000)

239,000

205,000

(444,000) OG

239,000

205,000

(444,000)

389,000

55,000

(444,000)

New 283 * Public Safety Levy Total New

Department Priority 1 Total

Corporate Strategic Services Division Growth 256

Cybersecurity Microsoft Licensing

150,000

(150,000) OG

256

Financial System Unit4 Cloud 2.0

0 OG

Total Growth

150,000

(150,000)

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

36,000

(36,000) OG

257 After Hours Support Services

54,000

(54,000) OG

257 Business Systems Analyst - Digital Transformation Specialist Position 258 Record Drawing – Citizen/Customer Facing Intake Process 258 Unit4 Implement Timesheets and Absences Modules 259 Two Communications Summer Student Positions

60,300

(60,300) OG

50,000

(50,000)

0 OT

121,000

(121,000)

0 OT

31,600

(31,600) OG

Total New

352,900

(171,000)

(181,900)

Division Priority 1 Total

502,900

(171,000)

(331,900)

270 Asset Management System Manager Position 270 Asset Management Consulting Support 271 Infrastructure Data Solutions Software Subscription

121,600

(15,400)

(30,800)

(75,400) OG

50,000

(6,200)

(12,500)

(31,300) OG

25,000

(25,000) OG

Total New

196,600

(21,600)

(43,300)

(131,700)

Division Priority 1 Total

196,600

(21,600)

(43,300)

(131,700)

2,815,000

(2,815,000) OG

828,000

(828,000) OG

394,500

(394,500) OG

2,815,000

1,222,500

0 OG

Department Priority 1 Total 2,815,000

1,222,500

(4,037,500)

13,283,900

(1,533,500)

(1,339,700)

(2,120,100)

(92,300)

(8,198,300)

New 323 CAP Network as a Service

Financial Services Division New

Financial Services Division Debt & Other Maintain 282 Other Working Capital 282 PRC Replacement Financial Planning 283 Infrastructure Levy Total Maintain

(4,037,500)

New 283 Public Safety Levy Total New

Total Priority 1 Operating

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2023 Operating Requests Preliminary Budget Summary - Utility Funds Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

122 Airport Improvement Fee

4,721,000

(4,721,000)

4,721,000

(4,721,000)

122 Airport Airside

560,600

778,700

(1,339,300)

123 Airport Terminal

373,700

643,200

(1,016,900)

123 Airport Groundside

946,100

1,827,900

(2,774,000)

124 Airport Finance & Administration

391,900

(330,900)

(61,000)

124 Airport Air Service Development Manager Position 125 Airport Operations Clerk Position

64,200

(64,200)

35,800

(35,800)

125 Airport Development Services Manager Position

67,000

(67,000)

2,439,300

2,751,900

(5,191,200)

2,439,300

7,472,900

(9,912,200)

120,000

(120,000)

110,000

(110,000)

Total Maintain

230,000

(230,000)

191 Water Operations Maintenance and Cost Increase CAP Fleet Growth - Water Fund

163,500

(163,500)

31,900

(31,900)

Total Growth

195,400

(195,400)

191 Water Supply Millwright Position

45,900

(45,900)

192 Water Quality Co-op Student Position

13,900

(13,900)

Total New

59,800

(59,800)

175 * Utilities Construction Supervisor Position

Airport Maintain

Total Maintain Growth

Total Growth

Division Priority 1 Total

Water Maintain 190 Water Supply Ongoing Major Equipment Renewal 190 Long Meadow Reservoir Dam Decommissioning

Growth

New

Growth OG

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

Total Growth

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support 180 * Time Series Data Analytics

Total New

485,200

(485,200)

200 Wastewater Operations and Maintenance 200 Source Control Co-op Position

380,000

(35,000)

(345,000)

14,000

(14,000)

Total Maintain

394,000

(35,000)

(359,000)

11,300

(11,300)

Total Growth

11,300

(11,300)

201 Wastewater Treatment Operator Position 201 Wastewater Co-op Student Positions

48,900

(48,900)

37,500

(37,500)

Total New

86,400

(86,400)

175 * Utilities Construction Supervisor Position

Total Growth

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support 180 * Time Series Data Analytics

Total New

491,700

(35,000)

(456,700)

3,416,200

7,472,900

(9,947,200)

(941,900)

New

Division Priority 1 Total

Wastewater Maintain

Growth 400 CAP KLO Rd Mission Creek Sewer Connection

New

Growth OG

New

Division Priority 1 Total

Total Priority 1 Operating

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

50,000

(50,000) OG

65,000

(65,000) OG

115,000

(115,000)

Partnerships & Investments Division Maintain Parks & Building Planning Consulting Services Public Art Total Maintain New V&E

Facilities Services Position

51,900

(51,900) OG

V&E

Facility Operations Coordinator Position Bernard Avenue Parklets

59,200

(59,200) OG

60,000

(60,000) OG

Total New

171,100

(171,100)

Division Priority 2 Total

286,100

(286,100)

Infrastructure Division Maintain 352 CAP Irrigation Renewal

10,000

(10,000) OG

Parks CityWorks Hardware

45,600

(45,600) OG

Traffic Technician Position

43,000

(43,000) OG

98,600

(98,600)

58,000

(58,000) OG

20,000

(10,000)

(10,000) OT

Total New

78,000

(10,000)

(68,000)

Division Priority 2 Total

176,600

(10,000)

(166,600)

30,000

(30,000) OG

30,000

(30,000)

Total Maintain New Asset Management Coordinator Position Sanitary-Storm Service Interconnects Policy Development

Active Living & Culture Division Growth Social Development Working Funds Total Growth

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Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

30,000

(30,000)

58,600

(58,600) OG

Total Growth

58,600

(58,600)

Designated Outdoor Sheltering Site - Personal Storage Police Services - Casual Positions

67,500

(67,500) OG

62,900

(62,900) OG

RCMP Regular Members (6)

333,800

(333,800) OG

Police Services - Watch Coordinators (4) Positions

195,300

(195,300) OG

659,500

(659,500)

718,100

(718,100)

50,200

(50,200) OG

Total Growth

50,200

(50,200)

Innovation Consultant Position

49,300

(49,300) OG

Cloud Consumption

80,000

(80,000) OG

Information Services Project Coordinator Position

58,600

(58,600) OG

Total New

187,900

(187,900)

Division Priority 2 Total

238,100

(238,100)

41,600

(41,600) OG

Total New

41,600

(41,600)

Division Priority 2 Total

41,600

(41,600)

Total Priority 2 Operating

1,490,500

(10,000)

(1,480,500)

Division Priority 2 Total

Taxation Cat

Corporate & Protective Services Division Community Safety Growth Bylaw Services - Operations Supervisor Position

New

Total New

Department Priority 2 Total

Corporate Strategic Services Division Growth Communications Consultant Position

New

Financial Services Division New Payroll Technician Position

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2023 Operating Requests Preliminary Budget Summary - Utility Funds Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

* Sanitary-Storm Service Interconnects Policy Development

Total New

Department Priority 2 Total

Total Priority 2 Operating

Wastewater New

CAP - denotes operating request that has been moved to the capital section V&E - denotes operating request that has vehicle & equipment capital impacts included in the request * italics - denotes that this is a shared (part of another department) operating request # where there are zero amounts in all columns, this denotes there is no change overall in expense or revenue budgets, due to a reallocation of expenses or revenues to support the request for 2023

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CITY ADMINISTRATION

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

CITY ADMINISTRATION The City’s administration is responsible for delivering the right infrastructure, skills, services and processes to meet Council priorities and community goals. Adopted in 2018, Imagine Kelowna is an over-arching vision for the community, by the community, with principles and goals to help Kelowna thrive in the face of unprecedented growth and change. Building on Imagine Kelowna, Kelowna City Council develops a set of council priorities they will work on during their term. Council priorities are the results Council and the organization want to achieve or significantly advance during Council’s term. The guiding strategic document outlines primary focus areas and desired corporate and council results. Activities in the Financial Plan show how the City’s administration serves to meet Imagine Kelowna principles and Council priorities results.

Budget Overview

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Divisional summary Actual 2021 Departmental operating cost centres ($ thousands): Mayor & Council 103 Council 104 Mayor City Manager 100 City Manager Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Mayor and Council Management Union hourly Union salary Total operating full-time equivalent positions

Revised Preliminary Change from prior year 2022 2023

Per cent change

398 143 541

468 165 633

492 180 672

6.2%

992 992 1,533

1,311 1,311 1,944

1,316 1,316 1,988

5 44

0.4% 2.3%

0 0 1,533

0 0 1,944

0 0 1,988

0 44

0.0% 2.3%

9.0 3.6 0.1 0.4 13.1

9.0 5.0 0.1 0.0 14.1

0.0

0.0%

Total 1,944

FTE 14.1

44 1,988

0.0 0.0 0.0 14.1

0 1,988

0.0 14.1

0 0

0.0 0.0

Detailed operating program changes ($ thousands) 2022 revised budget 2023 net impacts One-time operating requests Prior years ongoing adjustments Divisional adjustments 2023 Program additions (P1) 2023 operating requests: Total Unfunded 2023 requests (P2) 2023 operating request Total unfunded requests for 2023

0 0 44

Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

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City Administration City Manager, Council and Mayor - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 1) 0

0 0 0 0

0 0 0 _____________ ( 1)

0 0 0 _____________ 0

1,053 12 124 344 0 0 0

1,199 15 383 346 0 0 0

1,228 21 393 346 0 0 0

0 0 0 _____________ 1,535

0 0 0 _____________ 1,944

0 0 0 _____________ 1,988

1,533

1,944

1,988

0 0 _____________ 0 _____________ 1,533

0 0 _____________ 0 _____________ 1,944

0 0 _____________ 0 _____________ 1,988

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Page 104

OFFICE OF THE CITY CLERK

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

OFFICE OF THE CITY CLERK The Office of the City Clerk fosters a culture of open government in the provision of corporate administrative services to Council, their Committees, and the organization. Along with statutory and procedural information and advice related to all levels of government legislation, responsibilities include Council meeting management, corporate access to legal services, the management of corporate records and information, public access to records and protection of privacy, elector approval processes and general local elections.

Divisional Activities Clear Direction • Add records management function to SharePoint Online to ensure compliance with access to information and protection of privacy legislation, support collaboration and modern business needs, and to manage electronic records and information from creation to disposition • Develop corporate policy function with a clear and consistent framework that supports initiatives across City departments and maximizes alignment with Council and corporate priorities. Develop, review, and evaluate Council and corporate policies and manage the policy libraries • Enhance protection of privacy by developing and implementing a privacy management program, advising on privacy considerations associated with digital transformation and partnership initiatives, and updating privacy resources, policies, and procedures People • Provide training for new and existing employees on governance, Council reports and procedures, access to information and protection of privacy, and records management Base Business • Conduct annual archiving and disposition across City business areas • Ensure public access to information and protection of privacy in accordance with provincial legislation and City policies • Communicate opportunities for the public to engage with Council and learn about City governance • Provide governance and meeting management to Council and their Committees, including agenda preparation, minutes, and statutory notices • Draft regulatory bylaws for and provide policy and procedural advice to City departments

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Divisional Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

# of Freedom of Information (FOI) requests received

100

# of bylaws drafted (development & regulatory)

194

125

160

# of Council meeting & public hearing (days)

# of agreements executed by Mayor/Clerk

477

356

450

232

153

200

# of paper files processed for final disposition

5,398

3,978 (actual)

3,958

# of paper files processed for archive

3017

4530

3370

# of paper files in storage

96,928

100,106

99,520

Business areas that met annual corporate archive deadline (%)

100%

Business areas that met annual corporate disposition deadline (%)

100%

FOI requests/responded to within 30 days (%)

91%

92%

95%

FOI requests/responded within legislated timeline (including extensions up to 60 days or over) (%)

95%

98%

100%

Council meeting packages prepared/delivered on time (%)

100%

Council committee meetings attended (%)

100%

98%

100%

# of legal documents e-registered

# of scheduled training/education sessions provided by staff

Budget Overview

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Divisional summary

Departmental operating cost centres ($ thousands): City Clerk 119 Legislative Services 120 City Clerk 228 Records & Information Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Actual 2021

Revised 2022

Preliminary 2023

Change from prior year

Per cent change

814 631 91 1,536

825 492 201 1,518

882 483 252 1,617

6.5%

0 0 1,536

0 0 1,518

0 0 1,617

0 99

0.0% 6.5%

5.9 0.3 4.2 10.4

5.5 0.4 5.0 10.9

6.0 0.4 5.5 11.9

1.0

9.2%

Total 1,518

FTE 10.9

(26) 1,492

0.0 0.5 0.0 11.4

125 1,617

0.5 11.9

0 0

0.0 0.0

(78) 52 0

125

Note: Totals may not add due to rounding.

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City Clerk - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 82) ( 80)

0 0 ( 10) ( 80)

0 0 0 _____________ ( 162)

0 0 ( 260) _____________ ( 350)

0 0 0 _____________ ( 90)

980 0 578 72 0 0 0

1,022 0 751 95 0 0 0

1,130 0 482 95 0 0 0

0 0 68 _____________ 1,698

0 0 0 _____________ 1,869

0 0 0 _____________ 1,707

1,536

1,518

1,617

0 0 _____________ 0 _____________ 1,536

0 0 _____________ 0 _____________ 1,518

0 0 _____________ 0 _____________ 1,617

Page 110

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

65,000

(65,000) OG

65,000

(65,000)

59,700

(59,700) OG

Total New

59,700

(59,700)

Division Priority 1 Total

124,700

(124,700)

Total Priority 1 Operating

124,700

(124,700)

City Clerk Growth 112 Legal Expense Total Growth New 112 Policy Analyst Position

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2023 Operating Request Details Priority: 1

Division: Department:

City Clerk City Clerk

Title:

Legal Expense

Growth ON-GOING PRELIMINARY

Justification: The City uses external legal services to provide advice, prepare legal documents, and represent the City as needed. Budget is requested to increase the legal budget based on the past three years of actual costs. In addition to base business needs, innovative City initiatives require more in-depth legal review and advice, and legal representation is needed on more files. Legal services also support community safety efforts through the City's Property Standards Compliance Team and major bylaw enforcement files. 2023 Base budget: $235k

Strategic Direction: 2023 2024 2025

Cost 65,000 115,000 165,000

Other - Supports Base Business Reserve 0 0 0

Division: Department:

City Clerk Legislative Services

Title:

Policy Analyst Position

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (65,000) (115,000) (165,000)

Priority: 1

New ON-GOING PRELIMINARY

Justification: The Office of the City Clerk manages and provides direction on Council and corporate policies and procedures. Budget is requested for a Policy Analyst position which will develop the policy function into a corporate service that supports a common understanding of future direction, transforms business processes, and reduces lower value activities. The position will also draft complex bylaws and ensure the appropriate policy tools are used to deliver City initiatives.

Strategic Direction: 2023 2024 2025

Cost 59,700 115,700 115,700

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (59,700) (115,700) (115,700)

Page 112

KELOWNA INTERNATIONAL AIRPORT

2023 FINANCIAL PLAN

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KELOWNA INTERNATIONAL AIRPORT Kelowna International Airport (YLW) plays a vital part in the economic development and prosperity of the Okanagan Valley. Based on the 2015 economic impact report, a year in which YLW served 1.6M passengers, YLW’s total economic impact was 4,545 jobs and $789M in total economic output to the province of British Columbia. In 2019, prior to the significant impacts of COVID-19, YLW served over 2M passengers, offered more than 70 daily non-stop commercial flights with eight airlines (Air Canada, Air North - Yukon's Airline, Alaska Airlines, Central Mountain Air, Flair Airlines, Swoop, Pacific Coastal Airlines and WestJet) to 16 destinations (Calgary, Cranbrook, Edmonton, Prince George, Seattle, Winnipeg, Toronto, Vancouver, Victoria and Whitehorse, plus seasonal service to Cabo San Lucas, Las Vegas, Phoenix, Cancun, Puerto Vallarta and Varadero). Due to the continued impact of COVID-19, YLW is forecasting to serve over 1.7M passengers in 2022 and return to serving over 2M passengers in 2023. Kelowna City Council has established an Airport Advisory Committee, which is led by the Mayor of Kelowna and includes representation from municipalities throughout the Okanagan Valley. The aim is to provide high quality facilities in a safe and cost-effective manner while also ensuring the capability and flexibility to meet future changes in air transportation, technology and operations. Airport Development is responsible for overseeing and coordinating all planning, programming and development programs at YLW including master planning, conceptual design, project development, commercial real estate development projects, land use planning and tenant relations. In addition, Airport Development is also responsible for preparing strategic Airport plans, strategic air service recovery and development, community relations and engagement, and the management of the lifecycle of capital projects design and construction at the Airport until handover to Airport Operations. Airport Finance & Corporate Services is responsible for overseeing the financial well-being of the Airport including, but not limited to, reporting, budgeting, forecasting and cash management. Finance and Corporate Services also oversees agreements, significant purchasing projects, acquisitions and insurance. Airport Operations is responsible for the management, operations and maintenance of the day-to-day operations of the Airport. This includes, but is not limited to, management of the airlines and terminal building, groundside operations including parking, car rentals and ground transportation, safety and security, the customer experience, emergency preparedness, aircraft fire fighting as well as airside operations and regulatory compliance.

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Divisional Activities Community Safety • Residents feel safe: • Rehabilitation of airside pavement to further improve the safety of aircraft and passengers • Construction of the runway end safety area to further improve the safety of aircraft and passengers • ACI-NA Health Accreditation maintained • Commence enabling works for the construction of the new combined operations building • Purchase of two runway snow sweeper combos • Data and analysis is used to understand problems and target responses: • Accomplish the goals set out in the Airport’s safety management system • Ongoing review of wildlife data to enhance aviation safety Social & Inclusive • Inclusivity and diversity are increasing: • Work in partnership with the Canucks Autism Network to provide a more inclusive environment for families living with autism • Work in partnership with Pets and People to provide a more calming environment for travelers • Continued implementation of the Accessible Transportation for Persons with Disabilities Regulations to ensure all citizens have full access to airport facilities • Utilize feedback from the Rick Hansen Foundation to further improve the accessibility of the current and future Air Terminal Building Vibrant Neighbourhoods • Key sites are proactively planned: • Continue to actively pursue commercial development opportunities in and around YLW • Enter into an agreement for the development of the East Lands • Pursue retail and commercial developments that lead to regionally accessible destination services and facilities Economic Resiliency • Key economic sector impact is increasing: • Fully recover from the COVID-19 pandemic • Recovery of air service post pandemic to allow citizens access to travel for business, pleasure and healthrelated reasons • Leasing and development of commercial lands at YLW • Complete a new economic impact study • Commence the construction of the Air Terminal Building expansion • Complete the servicing required for the construction of a hotel on-site at the Airport • Build new common use counters to allow for further development of air service • Renovate the development offices to provide the additional space needed for relocations during the construction of the air terminal building expansion Environmental Protection • Greenhouse gas (GHG) emissions are decreasing: • Continue to work towards the Airport’s environmental goal of becoming carbon neutral by 2030 • Maintain Airport Carbon Accreditation Level 2 • Amend the ground handler agreement to move towards the use of equipment that is non-carbon fuel based

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Financial Management • Non-tax revenues are increasing: • Pursue commercial development opportunities to increase revenues Clear Direction • Common understanding of future direction: • Consistent and transparent communication of YLW’s recovery • Progress on results is measured, monitored and reported: • Quarterly financial updates provided to the YLW team • Services, processes and business activities are transformed: • Real-time assessment of YLW’s recovery from COVID-19, assessment of corresponding operational changes, and implementation of corresponding changes People • Ability to attract, select and retain talent: • Continue to explore all options to keep people engaged in meaningful work • Develop an innovation bank • Improve communication channels with the YLW campus Base Business • Completion of the phased replacement of the Air Terminal Building roof • Renewal of certain infrastructure in the Air Terminal Building to extend the useful life of the infrastructure • Renewal of certain infrastructure in the Combined Operations Building to extend the useful life of the infrastructure • Replacement of certain components of the passenger bridges to extend the useful lives of the bridges • Lifecycle replacement of common use self-serve and common use terminal equipment

Divisional Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

0.8M

1.7M

2.1M

1.6M

1.2M

1.3M

$6.64

$6.22

$6.45

Economic Resiliency – Key Economic Sector Impact is Increasing Meet long-term medium passenger activity forecast to 2025: 2.25M Environmental Protection – Greenhouse Gas Emissions Are Decreasing Carbon Accreditation Level Financial Management - Non-tax Revenues Are Increasing Payment to City of Kelowna ($) Financial Management – Cost to deliver services is quantified Aeronautical Revenues per Landed Air Carrier Seat ($) Base Business - Customer satisfaction Airport service quality benchmark rating (out of 5.0) * * The ASQ benchmarking survey was suspended in 2020, due to the impact of COVID-19

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Budget Overview

Divisional summary Departmental operating cost centres ($ thousands): Airport 106 Airport Finance & Corporate Services 230 Airside 231 Groundside 232 Terminal 233 Airport Improvement Fee 234 Airport Policing Net operating expenditures Divisional capital cost centres ($ thousands): 312 Airport Capital Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Actual 2021

Revised Preliminary Change from 2022 2023 prior year

Per cent change

(3,164) 1,001 1,001 1,001 (0) 162 0

5,172 (1,770) (1,830) (1,756) 0 183 0

5,835 (2,067) (2,009) (1,989) 0 230 0

0.0%

0 0 0

0 0

0.0% 0.0%

13.0 3.9 21.5 38.4

17.0 2.5 29.5 49.0

20.0 2.0 30.5 52.5

3.5

7.1%

Page 118

2023 FINANCIAL PLAN

CITY OF KELOWNA

0 0 0

Total 0

FTE 49.0

0 0

0.0 1.0 0.0 50.0

0 0

2.5 52.5

0 0

0.0 0.0

Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

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Airport - Airport Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 22,423) ( 7,453)

0 0 ( 41,052) ( 223)

0 0 ( 50,940) ( 248)

0 0 ( 3,444) _____________ ( 33,320)

0 0 ( 6,603) _____________ ( 47,878)

0 0 ( 5,704) _____________ ( 56,891)

4,304 21 8,272 18 584 2,805 2,018

5,995 31 11,280 1,096 584 1,897 1,573

6,732 32 13,027 1,142 584 1,905 1,733

0 0 15,297 _____________ 33,320

0 0 25,422 _____________ 47,878

0 0 31,735 _____________ 56,891

5,942 ( 5,942) _____________ 0 _____________ 0

81,062 ( 81,062) _____________ 0 _____________ 0

39,025 ( 39,025) _____________ 0 _____________ 0

Capital Expenditures

Gross Expenditures Other Funding Sources Utility Capital Net Operating & Utility Capital Exp.

Page 120

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2023 Operating Requests Preliminary Budget Summary - Airport Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

122 Airport Improvement Fee

4,721,000

(4,721,000)

4,721,000

(4,721,000)

122 Airport Airside

560,600

778,700

(1,339,300)

123 Airport Terminal

373,700

643,200

(1,016,900)

123 Airport Groundside

946,100

1,827,900

(2,774,000)

124 Airport Finance & Administration

391,900

(330,900)

(61,000)

124 Airport Air Service Development Manager Position 125 Airport Operations Clerk Position

64,200

(64,200)

35,800

(35,800)

125 Airport Development Services Manager Position

67,000

(67,000)

Total Growth

2,439,300

2,751,900

(5,191,200)

Department Priority 1 Total

2,439,300

7,472,900

(9,912,200)

Total Priority 1 Operating

2,439,300

7,472,900

(9,912,200)

Airport Maintain

Total Maintain Growth

Page 121

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2023 Operating Request Details Priority: 1

Division: Department:

Airport Airport

Title:

Airport Improvement Fee

Maintain ON-GOING PRELIMINARY

Justification: The increase in budgeted Airport Improvement Fees is based on the forecast that the Airport will recover to 2.1M passengers in 2023. The 2022 budget was based on passenger numbers of 1.7M. Revenues are contributed to the Airport Improvement Fee Reserve. 2023 Base Budget: $19.7M.

Strategic Direction:

Economic resiliency - Key economic sector impact is increasing

2023 2024 2025

Cost 0 0 0

Reserve 4,721,000 4,721,000 4,721,000

Division: Department:

Airport Airport

Title:

Airport Airside

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (4,721,000) (4,721,000) (4,721,000)

Utility 0 0 0

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: The increase in budgeted Airport Airside revenues and expenditures is based on the forecast that the Airport will continue to recover from the COVID-19 pandemic in 2023. The 2023 budget is based on forecasted passenger numbers of 2.1M. The 2022 budget was based on passenger numbers of 1.7M. Revenues are contributed to the Airport Airside Reserve and expenditures are appropriated from the Airport Airside Reserve.

Strategic Direction: 2023 2024 2025

Cost 560,600 505,300 505,300

Economic resiliency - Key economic sector impact is increasing Reserve 778,700 834,000 834,000

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (1,339,300) (1,339,300) (1,339,300)

Utility 0 0 0

Page 122

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2023 Operating Request Details Priority: 1

Division: Department:

Airport Airport

Title:

Airport Terminal

Growth ON-GOING PRELIMINARY

Justification: The increase in budgeted Airport Terminal revenues and expenditures is based on the forecast that the Airport will continue to recover from the COVID-19 pandemic in 2023. The 2023 budget is based on forecasted passenger numbers of 2.1M. The 2022 budget was based on passenger numbers of 1.7M. Revenues are contributed to the Airport Terminal Reserve and expenditures are appropriated from the Airport Terminal Reserve.

Strategic Direction: 2023 2024 2025

Cost 373,700 369,500 369,500

Economic resiliency - Key economic sector impact is increasing Reserve 643,200 647,400 647,400

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (1,016,900) (1,016,900) (1,016,900)

Utility 0 0 0

Priority: 1

Division: Department:

Airport Airport

Title:

Airport Groundside

Growth ON-GOING PRELIMINARY

Justification: The increase in budgeted Airport Groundside revenues and expenditures is based on the forecast that the Airport will continue to recover from the COVID-19 pandemic in 2023. The 2023 budget is based on forecasted passenger numbers of 2.1M. The 2022 budget was based on passenger numbers of 1.7M. Revenues are contributed to the Airport Groundside Reserve and expenditures are appropriated from the Airport Groundside Reserve.

Strategic Direction: 2023 2024 2025

Cost 946,100 941,900 941,900

Economic resiliency - Key economic sector impact is increasing Reserve 1,827,900 1,832,100 1,832,100

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (2,774,000) (2,774,000) (2,774,000)

Utility 0 0 0

Page 123

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Airport Airport Finance & Corporate Services

Title:

Airport Finance & Administration

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: The increase in budgeted Airport Finance and Administration revenues and expenditures is based on the forecast that the Airport will continue to recover from the COVID-19 pandemic in 2023. The 2023 budget is based on forecasted passenger numbers of 2.1M. The 2022 budget was based on passenger numbers of 1.7M. Revenues are contributed to the Airport Airside, Groundside and Terminal Reserves, evenly. Expenditures are appropriated from the Airport Airside, Groundside and Terminal Reserves, evenly.

Strategic Direction: 2023 2024 2025

Cost 391,900 264,400 264,400

Economic resiliency - Key economic sector impact is increasing Reserve (330,900) (203,400) (203,400)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (61,000) (61,000) (61,000)

Utility 0 0 0

Priority: 1

Division: Department:

Airport Airport Finance & Corporate Services

Title:

Airport Air Service Development Manager Position

Growth ON-GOING PRELIMINARY

Justification: Budget is requested for an Airport Air Service Development Manager position that would execute all the requirements to attract, incentivize, and maintain air service at the Airport. The COVID-19 pandemic resulted in the loss of nearly all air service at the Airport and the competition for air service has become much more intense and needs to be the main focus of a portfolio to ensure the Airport continues to provide access for tourism, business travel, family and friends travel, air cargo and air ambulance services.

Strategic Direction: 2023 2024 2025

Cost 64,200 125,400 125,400

People - Ability to attract, select & retain talent Reserve (64,200) (125,400) (125,400)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Page 124

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Airport Airport Finance & Corporate Services

Title:

Airport Operations Clerk Position

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: Budget is requested for an Airport Operations Clerk position which would help ensure restricted area identification cards continue to be processed in accordance with targeted timeframes, despite passenger levels increasing to forecasted levels of 2.1M passengers and capital projects moving forward at historic levels. This will ensure operations and construction continue effectively and efficiently at the Airport. This position would be funded equally from the Airside, Groundside and Terminal reserves.

Strategic Direction: 2023 2024 2025

Cost 35,800 71,300 71,300

People - Ability to attract, select & retain talent Reserve (35,800) (71,300) (71,300)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Airport Airport Finance & Corporate Services

Title:

Airport Development Services Manager Position

Growth ON-GOING PRELIMINARY

Justification: Budget is requested for an Airport Development Services Manager position that would liaise between the Airport Development and Airport Operations teams to ensure the safe and efficient expedition of projects while ensuring the Airport continues to operate efficiently. The extra capacity and skills this position would bring would add significantly to the Airport's ability to meet the current and future requirements for the Airport Project Management and Airport Commercial Development teams. This position would be funded from the Airside, Groundside and Terminal reserves.

Strategic Direction: 2023 2024 2025

Cost 67,000 129,900 129,900

People - Ability to attract, select & retain talent Reserve (67,000) (129,900) (129,900)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

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PLANNING & DEVELOPMENT

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

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PLANNING & DEVELOPMENT SERVICES The Planning & Development Services Division focuses on long-term planning and development-related planning and services. The division has three departments; Policy & Planning, Development Planning and Development Services; and one two-year term postion focused on climate and environment programs. Champion of the Environment is a two-year term position (April 2021 – March 2023) focused on reviewing the City’s climate and environment (C&E) related policies, programs, actions, and systems, and completing a report with a series of recommendations for improvements and coordination. The overarching objective of the position is to develop and advance long-term climate action and environmental protection solutions in line with Council and community priorities. Development Planning is a progressive department that reviews, plans, promotes and advocates change that moves the City towards the Kelowna envisioned by Imagine Kelowna and the policy direction of the Official Community Plan (OCP). The work of this department is focused on processing land use and development permit applications, and providing advice and information on planning processes to Council and the public. Development Services develops and implements operational policies, processes and practices to ensure compliance with bylaws, codes, regulations and Council policies with respect to building/development approvals and business licensing in the City. These rules govern the development process for road construction, utilities installation, building construction and the licensing of businesses in buildings through to completion and occupancy. Policy & Planning is a future-forward department that sets the course for Kelowna’s future by anticipating trends, understanding best practices and shaping innovative policies for short and long-term community goals. It develops leading-edge planning policies based on extensive research in land use, housing, built and natural environments, heritage, and data analytics that builds a foundation for strong and diverse community neighbourhoods. Research outputs are also used to help inform the work undertaken by other City Divisions.

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Divisional Activities Community Safety • Support the Property Standards Compliance Team in efforts to bring problem properties into compliance with applicable bylaws and standards • Lead the creation of an Agricultural Property Compliance team that will work with partners to remove noncompliant land uses and businesses from agricultural land Social & Inclusive • Administer ~ $300k in rental housing grants to encourage the construction of new non-market rental housing across the community • Implement the Affordable Housing Land Acquisition Strategy (AHLAS) as a means to encourage new affordable rental housing • Explore options for the Housing Opportunities Reserve Fund Program to purchase new parcel(s) for the development of affordable rental housing in the long-term • Deliver the Annual Housing Report to provide clear insights into local housing market dynamics • Partner with UBC's School of Community and Regional Planning to complete pre-planning for the development of an Equity Strategy • Investigate options for Rental Housing and Replacement Regulations to protect existing rental stock • Update the Housing Needs Assessment as part of a legislative requirement to identify existing and projected gaps in the community’s housing needs Vibrant Neighbourhoods • Complete and then begin implementation of Phase 1 of the Infill Strategy: Infill Options Program, which will lay the groundwork to commence a comprehensive Infill Residential Strategy to promote various housing forms, tenures, and design responses in our Core Area • Implement a Fast Track Permitting Program targeted towards the City’s residential infill permitting process, to streamline processes and improve efficiencies to onboard this housing supply • Initiate work on Phase 2 of the Infill Options focusing on development along Transit Supportive Corridors. • Update the Heritage Conservation Guidelines following select stakeholder engagement and best practice review. • Complete the North End Plan to provide clear long-term vision and direction for one of the most diverse and rapidly changing parts of Kelowna. This flexible, staged approach to delivering the North End Plan alongside the Mill Site Area Redevelopment Plan will result in an accelerated process that remains committed to community priorities • Process the Mill Site Area Redevelopment Plan in tandem with the North End Plan • Initiate the next Urban Centre Plan to establish a clear long-term vision for the area Economic Resiliency • Construction activity and permit volume in Kelowna for 2023 are anticipated to continue to be strong with a forecast of $900 Million • Represent the City at the International Accreditation Service (IAS), Urban Development Institute and the Canadian Home Builder Association of the Central Okanagan (CHBA CO). Environmental Protection • Replace the Development Services vehicle fleet with electric vehicles • Develop a Climate Resilient Kelowna Strategy to mitigate and adapt to climate change (based on results of GHG Modelling Study and the Climate Vulnerability and Risk Assessment) • Meet provincial reporting requirements to obtain the Local Government Climate Action Program (LGCAP) grant • Complete the update to the Sustainable Urban Forest Strategy to increase the resilience of the City’s urban forest • Updating regional Sensitive Ecosystem Inventory (SEI) mapping (partnership with RDCO and neighbouring municipalities) • Implement Energy Step Code for Part 3 and Part 9 buildings to increase building efficiency

Page 130

2023 FINANCIAL PLAN

• • • • • •

• • •

CITY OF KELOWNA

Continue the Energy Step Code Compliance Assurance Program and make recommendations to optimize the program Work in partnership with FortisBC to offer a pilot energy concierge program Update GHG emission inventory with new provincial data release to track how we are progressing on GHG emission reduction goals Offer provincial top up incentives for fuel switching to low carbon, energy efficient heat pumps Implement the Community Electric Vehicle & E-Bike Strategy including EV readiness and public charging infrastructure Continue the partnership with Natural Resources Canada (NRCan) through a research collaboration to create retrofit options based on a community energy emissions map prototype to reduce energy, emissions, and operating energy costs for the residents of Kelowna Collaborate with Carleton University on the randomized control trial heat pump survey to better understand the barriers to low carbon heat pump adoption Continue to work with Fortis BC to provide relevant information regarding potential rebates to the building community though BC building code upgrades Create new Landscape Maintenance Bylaw to support tree retention and replacement efforts

Financial Management • Integrate all online payments and building permit applications available to the general public • Update application fees in all processes to reflect costs based on inflation. Clear Direction • Monitor permit turnaround times to ensure more than 28% of building permits are issued within 2-business days as part of the fast-track program • Implementation of Zoning Bylaw No. 12375 • Review and update short-term rental and secondary suite regulations • Update of Council Liquor Policy • Assist the development and implementation of artificial intelligence (Chat Bot) for permit and inspection inquiries • Review and update Cannabis Regulation and fees • Review opportunities for Development Variance Permit process streamlining • Help industry to adapt to new Zoning and Official Community Plan terminology and requirements People • Implement updated Divisional Strategic Plan with staff led team Base Business • Improve/modernize property addressing program with help from stakeholders • Improve the online permitting process by moving towards a full digital application process • Promote the Energy Step code 3 and 4 initiatives to reduce the carbon footprint • The Building and Permitting Branch continues to ensure quality and exceptional service with help from the International Accreditation Services (IAS) • The evaluation and audit will be conducted by IAS and the goal is to achieve a clean bill of audit with no corrective actions • Implement full digital plan examination for all types of buildings for Building Permit applications • Update the Business Licensing, Cannabis, Pawn broker, and Plumbing and Gas Bylaws • Implement new Business System throughout the Planning and Development Services Division

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2023 FINANCIAL PLAN

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Divisional Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

Construction Value of Building permits

$1.1B

$945M

$900M

# of Building Inspections

11,833

11,259

12,060

# of Plumbing and Gas Inspections

10,428

10,050

10,000

# of Building Permits

2,841

2,250

2,055

# of gas permits

4,756

4,330

4,151

# of plumbing permits

2,171

1,747

1,695

1-2 family complete building permit applications approved for issuance within 10 working days (%)

95%

96%

96.5%

Inspections made within 48 hours or request (%)

98%

96%

98%

Inspection costs recovered by permit revenues (%)

100%

Building permits for small projects issued within 2 days or less (%)

23%

25%

28%

# of information booklets/bulletins created by Building & Permitting

# of staff initiated Zoning Bylaw amendments (improvements)

# of Agricultural Advisory Committee meetings (staff supported)

53%

78%

53%/47%

78%/22%

70%/30%

# of rental units with occupancy permit

837

None to date

1500

# Rental units supported by Tax Relief

460

Not available

Total # of residential housing units approved

3,187

2,683

2,000

Open files that were processed to completion (%)

71%

65%

75%

# of Director approved development/heritage permits

185

140

150

# of development applications per planner

# of closed service requests: Development Planning

152

140

# of engineering construction drawings reviewed by Dev. Eng.

208

194

200

# of utility drawings reviewed by Dev. Eng.

582

636

476

# of building permit applications reviewed by Dev. Eng.

109

122

# of strata applications reviewed by Dev. Eng.

# of deferred revenue releases by Dev. Eng.

# of 3 Party release of Right of Ways by Dev. Eng.

# of As-Builts drawings reviewed by Dev. Eng.

# of development applications reviewed by Development Engineering

436

391

416

# of Business Licenses

11,025

11,572

11,803

# of new business license applications

2,323

2,449

2,498

# of total mobile licences by year

1,294

1,680

1,710

Ensuring timely license release within 2 weeks (%)

57%

70%

80%

% growth in the urban core Urban vs suburban split of residential building permits

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Budget Overview

Divisional summary Actual 2021 Departmental operating cost centres ($ thousands): Planning and Development 144 Planning and Development Development Planning 146 Urban Planning Management 147 Development Planning 181 Suburban & Rural Planning Development Services 138 Business License 148 Development Services 149 Building, Plumbing & Gas Inspections 151 Building & Permitting 178 Development Engineering Policy & Planning 153 Policy & Planning 235 Long Range Policy Planning Net operating expenditures Divisional capital cost centres ($ thousands): Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Revised Preliminary Change from prior year 2022 2023

Per cent change

236 236

257 257

342 342

33.0%

810 (456) 909 1,263

1,067 (269) 828 1,626

964 (269) 827 1,521

(105)

(6.5%)

(1,946) (9,137) 1,643 1,692 177 (7,572)

(1,438) (6,557) 1,710 2,339 273 (3,674)

(1,784) (6,591) 1,710 2,378 273 (4,015)

(341)

9.3%

1,164 354 1,517 (4,555)

1,322 350 1,672 (119)

1,419 350 1,769 (382)

97 (264)

5.8% 222.1%

0 0 (4,555)

0 0 (119)

0 0 (382)

0 (264)

0.0% 222.1%

12.7 8.2 55.5 76.4

14.0 3.0 65.3 82.3

13.2 3.0 65.5 81.7

-0.6

(0.7%)

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2023 FINANCIAL PLAN

CITY OF KELOWNA

(50) 29 (417)

174

Total (119)

FTE 82.3

(438) (557)

(1.3) (0.3) (1.0) 79.7

174 (382)

2.0 81.7

0 0

1.0 1.0

Note: Totals may not add due to rounding.

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Planning & Development Services - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 14,599) ( 618)

0 0 ( 10,246) ( 440)

0 0 ( 10,653) ( 261)

0 0 ( 277) _____________ ( 15,494)

0 0 ( 1,228) _____________ ( 11,914)

( 75) 0 ( 751) _____________ ( 11,740)

7,658 86 1,013 75 0 0 55

9,129 112 2,156 69 0 0 55

8,694 118 2,120 70 0 0 55

477 0 1,575 _____________ 10,939

275 0 0 _____________ 11,795

300 0 0 _____________ 11,358

( 4,555)

( 119)

( 382)

0 0 _____________ 0 _____________ ( 4,555)

0 0 _____________ 0 _____________ ( 119)

0 0 _____________ 0 _____________ ( 382)

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

Planning & Development Services Division Maintain 137 Development Technician Position

61,000

(61,000)

0 OG

137 Climate Action and Environmental Stewardship Manager Position

74,300

(74,300) OG

135,300

(61,000)

(74,300)

20,000

(20,000)

0 OG

138 North End Neighbourhood Plan

40,000

(40,000)

0 OT

139 Project Planning Coordinator Term Position 139 Infill and Housing Policy Program Base Budget

103,300

(103,300)

0 OG

25,000

(25,000) OG

188,300

(60,000)

(103,300)

(25,000)

140 Urban Center Planning and OCP Implementation 140 Diversifying our Housing Options

150,000

(75,000)

(75,000) OG

75,000

(75,000)

0 OT

141 Climate and Environment Review Recommendations 141 Community Climate Action Implementation

390,000

(390,000)

0 OT

240,000

(240,000)

0 OT

Total New

855,000

(705,000)

(75,000)

Division Priority 1 Total

1,178,600

(826,000)

(178,300)

(174,300)

Total Priority 1 Operating

1,178,600

(826,000)

(178,300)

(174,300)

Total Maintain Growth 138 Reproduction Services

Total Growth New

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2023 Operating Request Details Division: Department:

Planning & Development Services Development Services

Title:

Development Technician Position

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: The Development Planning and Development Engineering Department are requesting funding for a Development Technician position. Staff held a workshop with Council in June 2022 on various ways to strengthen Kelowna's Urban Tree Canopy. The recommended strategy included several new actions including the review of detailed site planning and landscape drawings, as well as introducing field inspections, monitoring and increased third-party professional reliance of development projects through the construction process. The introduction of a new Development Technician position would not only facilitate these new work activities, but also help ensure quality control on other closely associated aspects of development including site grading, drainage, retaining walls, parking and overall landscape and civil requirements. Strategic Direction: 2023 2024 2025

Cost 61,000 119,800 119,800

Vibrant neighbourhoods - Site design & architecture is high quality, context sensitive Reserve (61,000) 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Planning & Development Services Planning & Development Services

Title:

Climate Action and Environmental Stewardship Manager Position

Taxation 0 (119,800) (119,800) Maintain ON-GOING

PRELIMINARY

Justification: In 2021 Council approved a request for a term position that was responding to concerns about the City's Climate Change and Environmental indicators that were not trending in the correct direction. The two year term position bolstered the City's efforts by completing a review along with recommendations for improvement. The position provided expert advice on other related climate and environment initiatives. A report to Council in August 2022 with recommendations related to aligning, prioritizing, and implementing additional measures related to the City's climate action and environmental stewardship efforts. To effectively implement the recommendations and ensure climate action and environmental stewardship receive the leadership and strategic thinking required for on-going progress, a permanent position is to be created. Strategic Direction: 2023 2024 2025

Cost 74,300 195,500 195,500

People - Organizational values prepare us for the future Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (74,300) (195,500) (195,500)

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2023 Operating Request Details Division: Department:

Planning & Development Services Development Services

Title:

Reproduction Services

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: Budget is requested to complete additional document scanning in the Permitting department. The record-breaking construction activity in 2021 caused an increase in the number of permits and supporting documents which require scanning. Staff are working on a new permitting tracking system which includes a digital plan examination capability. 2023 base budget: $36k

Expected Completion: Dec 2024 Strategic Direction: 2023 2024 2025

Cost 20,000 20,000 0

Financial management - Cost to deliver services is quantified Reserve (20,000) (20,000) 0

Borrow 0 0 0

Division: Department:

Planning & Development Services Policy & Planning

Title:

North End Neighbourhood Plan

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Taxation 0 0 0 Growth ONE-TIME

PRELIMINARY

Justification: The North End Plan is the first major second tiered plan under the new 2040 OCP. This project is being executed in tandem with the Mill Site Area Redevelopment Plan. The complexity and alignment of these two plans is significant, and has required additional time and technical analysis to arrive at a high quality, directional plan document. This additional budget will finalize public engagement, infrastructure and transportation analysis, among other technical reports.

Expected Completion: Oct 2023 Strategic Direction: 2023

Cost 40,000

Vibrant neighbourhoods - Number of urban centre development plans is increasing Reserve (40,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Priority: 1

Division: Department:

Planning & Development Services Policy & Planning

Title:

Project Planning Coordinator Term Position

Growth ON-GOING PRELIMINARY

Justification: As per the 2040 OCP implementation, a critical ingredient to its success will be for the City to deploy resources to delivering on new second tiered plans that include Neighborhood and Urban Center plans. The major goal of these next level plans will be to deliver on the adopted growth strategy objectives, address housing affordability, & embed infrastructure & community amenities in a fiscally responsible way. The pace to implement many of the OCP activities has been accelerated due to development pressures, housing unaffordability, and rapid growth rates. This 2 year term contract will be funded from an external source to project coordinate on numerous complex, high profile plan updates to ensure their successful delivery.

Expected Completion: Dec 2025 Strategic Direction: 2023 2024 2025

Cost 103,300 103,300 0

Vibrant neighbourhoods - Number of urban centre development plans is increasing Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (103,300) (103,300) 0

Utility 0 0 0

Taxation 0 0 0

Priority: 1

Division: Department:

Planning & Development Services Policy & Planning

Title:

Infill and Housing Policy Program Base Budget

Growth ON-GOING PRELIMINARY

Justification: With a newly created Infill and Housing Policy Manager, a more focused and concerted effort is being deployed to diversify housing stock for our community. This new program is intending to create a planning framework that proactively encourages housing in the right locations and form, to advance the City's growth strategy, address affordability, and utilize City assets and infrastructure in a fiscally responsible way. This base budget will allow key activities to be annually resourced.

Strategic Direction: 2023 2024 2025

Cost 25,000 25,000 25,000

Vibrant neighbourhoods - Affordable & attainable housing mix options Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (25,000) (25,000) (25,000)

Page 139

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2023 Operating Request Details Priority: 1

Division: Department:

Planning & Development Services Policy & Planning

Title:

Urban Center Planning and OCP Implementation

New ON-GOING PRELIMINARY

Justification: Over the next 20 years, roughly 73 per cent of Kelowna's growth will occur in the City's five Urban Centres and surrounding Core Area. The 2040 OCP projects 48 per cent of new units will be accommodated within the Urban Centres. Currently, the OCP defines a general vision for the urban centres but in the absence of detailed plans, our centres are shaped on an ad-hoc basis as individual development applications come forward. In the coming years, detailed urban centre plans will determine the necessary land use, urban design, public improvements and transportation enhancements to realize the long-term vision for each of the urban centres. Dedicated and committed resources are needed to plan for these multi-year projects to ensure we are achieving all of the desired attributes that growth can deliver. Strategic Direction: 2023 2024 2025

Cost 150,000 150,000 150,000

Vibrant neighbourhoods - Number of urban centre development plans is increasing Reserve 0 0 0

Borrow 0 0 0

Division: Department:

Planning & Development Services Policy & Planning

Title:

Diversifying our Housing Options

Grant 0 0 0

Other 0 0 0

Revenue (75,000) (75,000) (75,000)

Utility 0 0 0

Taxation (75,000) (75,000) (75,000)

Priority: 1

New ONE-TIME PRELIMINARY

Justification: The recent period of rapid growth in population and resulting housing unaffordability has changed the housing landscape. A suite of activities is scheduled to gain understanding of the scale and nature of the unique housing challenges facing our community. This will culminate in the development of a new Housing Strategy with a suite of recommended actions to improve housing diversity and attainability across short and long term time horizons. This funding will accomplish: a new Housing Needs Assessment (HNA), a land analysis to support the HNA that will evaluate the potential for public lands that are either vacant or underutilized to support affordable housing, and lastly, a new Housing Strategy that will be framed under a set of strategic housing objectives and targets with supporting actions needed to achieve them.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 75,000

Vibrant neighbourhoods - Affordable & attainable housing mix options Reserve (75,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Priority: 1

Division: Department:

Planning & Development Services Planning & Development Services

Title:

Climate and Environment Review Recommendations

New ONE-TIME PRELIMINARY

Justification: Budget is requested to implement the recommendations through the Climate & Environment Review with several initiatives being proposed for 2023. Corporate Climate Leadership: Initiate a climate lens decisions making tool, develop an internal carbon price, and develop a corporate green building policy. Community Emissions: Develop resources for resident climate action. Climate Adaptation: Complete an options analysis for resilient roof space and expand FireSmart Programs. Natural Areas: Analyze key environment indicators from LiDAR and initiate a strategy to monitor changes to sensitive ecosystems . Circular Economy: Support a Construction & Demolition Debris Study and complete a policy analysis for low-carbon concrete.

Expected Completion: Dec 2023 Strategic Direction: 2023

Environmental protection - Resiliency & adaptability to climate change

Cost 390,000

Reserve (390,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

Priority: 1

Division: Department:

Planning & Development Services Planning & Development Services

Title:

Community Climate Action Implementation

New ONE-TIME PRELIMINARY

Justification: Budget is requested to help address Council's priority of reducing GHG emissions through the following initiatives: update community GHG emissions inventory to 2020; Low Carbon New Buildings to support Energy Step Code compliance initiative and capacity building; Low Carbon Existing Buildings to support BetterHomes BC municipal top up program energy concierge pilot potentially partnering with Fortis, community energy financing design program matching funds for potential grant, and promotion/education; Low Carbon Transportation to support EV charging program, public EV charging electrical feasibility assessment and promotion/education, Climate Intern to support various climate initiatives.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 240,000

Environmental protection - Greenhouse gas emissions are decreasing Reserve (240,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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THIS PAGE INTENTIONALLY LEFT BLANK

Page 142

PARTNERSHIPS & INVESTMENTS

2023 FINANCIAL PLAN

CITY OF KELOWNA

THIS PAGE INTENTIONALLY LEFT BLANK

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PARTNERSHIPS & INVESTMENTS The Partnerships & Investments division focuses on strategic investments in real estate, including investment in parks and city buildings. The division has an expanded mandate which includes a partnership office (initiatives to bring new revenue, partnership opportunities and grants to the City), as well as a new focus on intergovernmental affairs. The division has four departments: Partnerships Office, Parks and Building Planning, Real Estate and Building Services. Partnerships Office is the partnerships and business arm of the City that seeks innovative opportunities to achieve community goals. Grants, sponsorships, partnership development, strategic negotiations and governance advisory services are the strategies employed to achieve the defined goals of this office. Parks and Buildings Planning anticipates future park, facility, and public art needs with a view to providing the best value to citizens. Individual projects are prioritized with a multiple bottom-line approach that includes financial, social, cultural, and environmental aspects. The department develops asset management plans for each asset class as well as short and long-range capital and related financial plans based upon new, renewal and growth requirements. Real Estate serves to leverage municipal real estate assets in a manner that creates innovative solutions in support of Council and Corporate Priorities, and the community’s vision as set out in Imagine Kelowna. In order to accomplish this, the department is committed to being fair, equitable and efficient when acquiring, developing, managing, maintaining, and disposing of the City’s real estate and building assets. Building Services provides safe, clean and well-maintained facilities, through a focus on asset and energy management best practices. This team manages a variety of facilities and unique assets including civic buildings, community protection facilities and major public facilities. Their responsive results are credited to a team of skilled trades and technical professionals.

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Divisional Activities Community Safety • • •

Continue renewal of older parkade security cameras to improve real‐time monitoring capabilities. Staff will collaborate with BCH and IH for the appropriate location of Emergency Shelter, Purpose Built Shelter, Supportive Housing and Complex Care Housing locations within our community Manage the design, maintenance, servicing, and repairs of all City security systems

Social & Inclusive • Implement Accessible Parking program changes • Evaluated municipal role in affordable housing to guide where the City invests resources to ensure citizens of Kelowna have affordable and attainable housing mix options • Explore land acquisition and disposition opportunities that can be used in partnership with BC Housing to meet our community’s purpose-built shelter and affordable housing needs • Continue with Phase II of the Parks Masterplan to consider park distribution, amenity needs and preferences and priority setting tools Transportation & Mobility • Complete development of a parking plan for the Capri-Landmark area • Develop a curb space management strategy to facilitate alternative uses of parking assets, such as loading/pick‐up zones to support the increase in ridesharing and food delivery services • Study sustainable transportation opportunities for the forthcoming PRC redevelopment, including mode shifts and traffic demand management methods • Obtain necessary lands to maximize public access to community Multi-Use and Active-Transportation Corridors and Linear Parks (Abbott Street and Houghton ATC, Mill Creek Linear Park) • Support relocation of regional transit facility to 4690 Highway 97 N • Support delivery of Central Green pedestrian overpass • Undertake schematic design planning for Mill Creek Linear Park Vibrant Neighbourhoods • Develop a new Residential Parking Permit program/system to provide better customer service for residents. • Explore the disposition of municipal lands at Dougall Road and Roxby Plaza in a manner that achieves strong site design, ensures architecture is high quality and is contextually sensitive while animating the public realm • Undertake the adaptive reuse of key heritage sites (Cameron House and Grist Mill) in a manner that achieves multiple objectives • Research and recommend best practices for downtown mobile food vendor program • Ensure delivery of objectives of the Civic Precinct Plan through the delivery of residential units, community space and artwalk on 350 Doyle Avenue development • Create the Alternative parks policies within the 2040 Official Community Plan (OCP) to provide public recreational spaces outside of the traditional City-owned park land • Ensure delivery of public space and rental residential units at former McDonalds and Husky sites • Expansion of the Patio Program to Pandosy/Lakeshore neighborhood • Work with local stakeholders on an updated laneway / placemaking initiative (Pandosy Village / Rutland as possible locations) • Create the Alternative parks policies within the 2040 Official Community Plan (OCP) to provide public recreational spaces outside of the traditional City-owned park land, such as Bernard Avenue • Complete the Schematic Design and Riparian Assessment for the Cold Sands Promenade through City Park • Continue with the partnership with Kelowna Paddle Centre to ultimately integrate a new facility into the new park • Develop the functional program for the potential construction of additional ice sheets at the Capital News Centre

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2023 FINANCIAL PLAN

• • • • • • • • • •

CITY OF KELOWNA

Complete the construction of the Mission Recreation Park softball diamond expansion, Ballou Park, and Tallgrass Park Undertake Schematic Design for the next phases of Glenmore Recreation Park Complete the Detailed Design and initiate construction for Dehart Park Complete the construction of Pandosy Waterfront Park Move forward with the designs for the Cook Road Boat Launch Move forward with neighbourhood park acquisitions at Kirschner Mountain and the Ponds Work with Development Planning to acquire parkland along Mill Creek at 2755 McCurdy Road Complete Detailed Design of Kerry Park Continue planning and undertake an alternative approval process (AAP) for the Kelowna Community Campus Plan for the replacement of the North Glenmore Firehall

Economic Resiliency • Work with internal City divisions and departments to prioritize and acquire development cost charge (DCC) park properties in a strategic and pragmatic manner • Implement rental property asset management program • Work with Airport to secure long-term land leases to generate alternate forms of revenue for YLW • Explore utilization of City real estate assets in partnership with telecommunication companies • Work with Finance to develop a Facilities Renewal Reserve to ensure adequate funding for current requirements Environmental Protection • Continue expanding EV Charging Infrastructure to support the procurement of EV’s • Continue to pursue grants and alternative funding source to support climate and energy related projects • Protection of Mill Creek through disposition of former McDonalds Property • Purse permitting and construction of shoreline protection measures at Hobson Beach, Maude Roxby, Kinsmen and adjacent to the mouth of Thompson Brook Financial Management • Complete audit to identify unrealized revenue generation opportunities – Parking Services • Formalize Real Estate Acquisition strategic plan focusing on the utilization of the Land Sales Reserve • Explore and implement a user pay system for clients of municipal boat launch facilities • Review of the 5-year polit program for Sponsorships & Advertising to gain an understanding of the pilots results and opportunities for improvement • Alternative revenue opportunities to gain an understanding of current inventory of non-taxation revenue sources within the City and to identify opportunities for increasing revenue within current sources and potential new revenue options • Grant Strategy to identify senior government priorities and upcoming grants through research and building connections with senior government staff • Sponsorship Strategy development to build a long-term program framework that will identify sponsorship opportunities for priority projects, programs, and facilities • Senior Government Relationships & Priorities Framework will focus on understanding the current Federal and Provincial political climate which is critical for aligning priority City projects with senior government priorities and funding • Formalize Real Estate Acquisition strategic plan focusing on the utilization of the Land Sales Reserve Clear Direction • Continue the Strategic Facilities Masterplan to assess divergent priorities across all municipally owned buildings

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2023 FINANCIAL PLAN

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People • Completion of the renovation to the garden level of City hall, which will increase the number of employees and create a more collaborative work environment Base Business • • • • • • • • • • • • • • • • • • •

Complete updated condition assessments of City parkades Complete equipment upgrades to support EMV Credit Card Processing Standard Support community groups in their Partners in Parks submissions Implementation of the Cityworks maintenance and asset management system Update of the 2017 Corporate Emission Plan with a new 2022 Strategic Management Plan Provide oversight to maintenance operations and manage renewal work of leased facilities Facilities management for utilities facilities Ongoing Sponsorship & Advertising Management which includes the prospecting and discovery of potential new external partners, along with the activation, fulfillment and renewal of current sponsorship and advertising contracts Ongoing liaison with City departments to inform and build upon partnership opportunities related to revenue generation Ongoing Grant Management which includes planning, securing, and managing external grants for the City of Kelowna, including maintaining the Grant Management Database, library, and dashboard Development and launch of new Relationship Management pilot program to identify, track, and manage relationships with key partners in our community and other levels of government Addressing enquiries from the public regarding parks planning Reviewing all development applications for parks, public spaces, and landscaping considerations Support community groups in their Partners in Parks submissions Manage capital budget submissions and priorities for the buildings and parks cost centres Kelowna Family Y energy reduction infrastructure renewal Upgrading of existing City facilities through the Community for All Program City Hall and Stuart Park partial mechanical system renewal Continue to run the Parklet and Sona Tube Programs for Meet Me on Bernard

Divisional Performance Measures 2021 Actual 63%

2022 Estimate 70%

2023 Forecast 60%

73%

82%

Number of new sponsorship contracts signed

Number of significant park acquisitions each year

Annual increase in non-taxation revenue Property Management

22.7%

12%

Annual Increase (decrease) in parking revenue

19%

10%

Citizen satisfaction survey (very & somewhat satisfied) with parks & sports fields (target 80%) (* 2022 Citizen survey)

91%

88%

Success rate on grants applications bases on 20 applications submitted per year (target = 50% approved per year) Percentage of Strategic Category partnerships reporting through Reporting Framework Number of sponsorship contract renewals

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Total value of parks projects completed in previous year (target $9 million)

$6M

$5.9M

$11.4M

Percentage of City staff who rate user experience of workspaces favourably (target 80%) (* 2019 Employee Engagement Survey) % of occupied major facilities with current facility condition assessment data

70%

27%

59%

78%

Budget Overview

Divisional summary Actual 2021 Departmental operating cost centres ($ thousands): Partnerships Office 250 Business and Entrepreneurial Development 273 Sponsorship & Advertising 276 Partnerships and Investments Parks and Building Planning 173 Parks and Building Planning Real Estate Services 116 Real Estate Services 118 Strategic Land Development 155 Real Estate Services Department 157 Property Management 252 Parking Services

Revised Preliminary Change from 2022 2023 prior year

Per cent change

481 16 250 746

825 20 260 1,106

856 20 263 1,139

3.0%

598 598

786 786

842 842

7.1%

434 172 213 (6) (150) 663

411 146 294 103 (150) 803

413 149 294 (134) (150) 571

(232)

(28.8%)

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2023 FINANCIAL PLAN

Continued Building Services 156 Building Services 204 Property Maintenance - Library 277 Energy Management Net operating expenditure Divisional capital cost centres ($ thousands): 300 Real Estate and Parking Capital 301 Building Capital Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

CITY OF KELOWNA

4,398 14 1,917 6,328 8,336

4,388 0 2,217 6,604 9,299

5,083 0 2,236 7,320 9,872

715 573

10.8% 6.2%

694 2,678 3,372 11,708

2,716 752 3,468 12,767

984 1,761 2,745 12,616

(723) (151)

(20.9%) (1.2%)

15.4 12.3 10.6 38.3

17.3 18.4 13.3 49.0

17.7 20.2 14.0 51.9

2.9

5.9%

Total 9,299

FTE 49.0

65 9,363

0.0 2.0 (0.1) 50.9

508 9,872

1.0 51.9

286 286

1.0 1.0

(30) 212 (117)

508

Note: Totals may not add due to rounding.

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Partnership & Investments - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 9,538) ( 644)

0 0 ( 9,253) ( 479)

0 0 ( 10,088) ( 518)

( 216) 0 ( 732) _____________ ( 11,130)

( 767) 0 ( 1,195) _____________ ( 11,694)

0 0 ( 184) _____________ ( 10,790)

4,735 253 6,765 2,775 0 0 159

5,362 286 7,816 2,802 0 0 578

5,662 311 6,622 3,139 0 0 673

4,014 0 765 _____________ 19,466

3,649 0 500 _____________ 20,993

3,709 0 546 _____________ 20,662

8,336

9,299

9,872

15,470 ( 12,098) _____________ 3,372 _____________ 11,708

22,760 ( 19,292) _____________ 3,468 _____________ 12,767

12,506 ( 9,761) _____________ 2,745 _____________ 12,616

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

300,000

(300,000) OG

100,000

(100,000)

0 OT

50,000

(50,000)

0 OT

450,000

(150,000)

(300,000)

150,000

(140,000)

(10,000) OG

67,700

(67,700) OG

4,000

(4,000) OG

59,100

(59,100) OG

52,500

(52,500) OG

15,000

(15,000) OG

348,300

(140,000)

(208,300)

0 OG

Total Maintain

Division Priority 1 Total

798,300

(150,000)

(140,000)

(508,300)

Total Priority 1 Operating

798,300

(150,000)

(140,000)

(508,300)

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2023 Operating Request Details Priority: 1

Division: Department:

Partnerships & Investments Building Services

Title:

Building Maintenance Deficiency & Escalation Adjustment

Maintain ON-GOING PRELIMINARY

Justification: Budget is requested to better meet departmental objectives, reduce deferred maintenance, avoid costly renewals, and maintain service levels. Annually, for the past three-years, the building maintenance expenditures have exceeded the budget by approximately $450K and will have further cost pressures due to inflation. The current operation and maintenance budget is funded at 0.27 per cent of the total current replacement value. 2023 Base Budget: $438k

Strategic Direction: 2023 2024 2025

Cost 300,000 300,000 300,000

Economic resiliency - Infrastructure deficit is reduced Reserve 0 0 0

Borrow 0 0 0

Division: Department:

Partnerships & Investments Real Estate

Title:

Strategic Land Development Projects

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (300,000) (300,000) (300,000)

Priority: 1

Maintain ONE-TIME PRELIMINARY

Justification: The realization of the Official Community Plan and corporate objectives through creative real estate strategies encompass the mandate of this branch. Several initiatives have been identified that have the potential of returning social, economic, environmental, and cultural benefits to the City. To deliver many of these projects, budget is requested to cover expenditures on legal advice, property appraisal, urban design, surveying, and other professional services. These costs will often be recovered through redevelopment and disposition. Key projects undertaken with this funding will include the Harvey Avenue redevelopment sites and planning for future civic facilities.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 100,000

Vibrant neighbourhoods - Key sites are proactively planned Reserve (100,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Division: Department:

Partnerships & Investments Building Services

Title:

H2O - Mechanical Room Slab Repair

Priority: 1

Maintain ONE-TIME PRELIMINARY

Justification: Budget is requested to repair the mechanical room concrete slab located over the fitness area. The recommended work includes repairing several cracks and slab coating. Currently occasional water from the mechanical room drips down to the fitness area below and has damaged fitness equipment. If left unaddressed, over time, water infiltration will cause the reinforcing to corrode, deterioration of the slab, and possible damaged fitness equipment.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 50,000

Economic resiliency - Infrastructure deficit is reduced Reserve (50,000)

Borrow 0

Division: Department:

Partnerships & Investments Partnerships Office

Title:

Intergovernmental Relations Advisor

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

Priority: 1

New ON-GOING PRELIMINARY

Justification: The British Columbia Urban Mayors' Caucus is a 13 Mayor membership group of large urban municipalities, representing 55 per cent of BC's population (membership to increase to 17 in 2022). Kelowna has been the co-chair and provided the leading staff support to the caucus since its inception in 2020. Building on the success of complex care, repeat offenders, and transit funding advocacy, budget is requested to sustain the staff and operational support of the caucus for continued intergovernmental relations work, including revising the blueprint priorities for focused advocacy. While Kelowna is one partner, by being co-chair and managing the staff support, it positions Kelowna as a leading municipality with senior levels of government. The position would be funded through shared contributions of all member municipalities. Strategic Direction: 2023 2024 2025

Cost 150,000 150,000 150,000

Clear direction - Common understanding of future direction Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (140,000) (140,000) (140,000)

Utility 0 0 0

Taxation (10,000) (10,000) (10,000)

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2023 Operating Request Details Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Buildings Planning Supervisor Position

Priority: 1

New ON-GOING PRELIMINARY

Justification: The Municipal buildings portfolio is large and complex, and as the City continues to grow the demand for additional amenities and services this portfolio will continue to grow. While funding has been available for strategic planning across the portfolio, lack of staff resources has resulted in very limited progress. The diversity of the buildings portfolio makes any prioritization a complex challenge to resolve. Therefore, a new Supervisor position is requested both to oversee the two existing Project Architect positions within Buildings Planning and to provide resources dedicated to strategic planning and prioritization.

Strategic Direction: 2023 2024 2025

Cost 67,700 131,100 131,100

People - Ability to attract, select & retain talent Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (67,700) (131,100) (131,100)

Priority: 1

Division: Department:

Partnerships & Investments Partnerships Office

Title:

Accelerate Okanagan OKGN Angel Summit Sponsorship

New ON-GOING PRELIMINARY

Justification: Budget is requested to support Accelerate Okanagan's annual OKGN Angel Summit. The Summit brings together earlystage start ups looking for growth capital, and accredited investors or 'angels' who are interested in building the capital ecosystem and investment opportunities. As a sponsor, the City will have a number of benefits and networking opportunities.

Strategic Direction: 2023 2024 2025

Cost 4,000 4,000 4,000

Economic resiliency - Key economic sector impact is increasing Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (4,000) (4,000) (4,000)

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2023 Operating Request Details Priority: 1

Division: Department:

Partnerships & Investments Building Services

Title:

Mechanical Engineer - Facilities Position

New ON-GOING PRELIMINARY

Justification: A Mechanical Engineer - Facilities position is being requested. As the City's facility related assets continue to age and as new assets are being built, the need for additional technical support in Building Services has become urgent. The scope of this position will be vast, but will be guided by a mission to preserve existing asset condition for pool equipment, arena refrigeration, HVAC, plumbing, building utility services and other related mechanical systems.

Strategic Direction: 2023 2024 2025

Cost 59,100 114,500 114,500

People - Ability to attract, select & retain talent Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (59,100) (114,500) (114,500)

Priority: 1

Division: Department:

Partnerships & Investments Building Services

Title:

Safety, Security and Regulatory Maintenance

New ON-GOING PRELIMINARY

Justification: Budget is requested to fund increased regulated testing and servicing requirements, improved fall protection safety measures, and heightened security needs. Building assets requiring this funding include generators, elevators, fire suppression systems, guardrails, fixed ladders, and facility locking systems. Adequate funding will ensure regulatory compliance, safety risks are reduced, and service levels are maintained. Measures requiring additional funding are identified as follows: Generator Testing and Service; Security; Fall protection; Fire Suppression Testing; Elevator Inspection and Maintenance.

Strategic Direction: 2023 2024 2025

Cost 52,500 52,500 52,500

Economic resiliency - Infrastructure deficit is reduced Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (52,500) (52,500) (52,500)

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2023 Operating Request Details Division: Department:

Partnerships & Investments Partnerships Office

Title:

Partnerships Consulting Services

Priority: 1

New ON-GOING PRELIMINARY

Justification: Budget is requested to advance strategic development at both the local and federal levels to work through the Inter Government Relationships (IGR), policy development and professional strategic advice. Funding will help to plan an Ottawa Government Relations (GR) tour to secure meetings with ministers, provide policy research and strategic direction on opportunities to advance Kelowna advocacy priorities especially for infrastructure funding (transit operations centre and KCC). Engaging with an Ottawa-based GR consulting firm with "boots on the ground" will fasttrack access to Ministers' office and their staff. This is a similar approach to what is being done by other municipalities: Victoria has an Ottawa-based agency on retainer to provide strategic Federal GR advice and facilitate connections and build strategic relationships. Strategic Direction: 2023 2024 2025

Cost 15,000 15,000 15,000

People - Staff engagement has increased Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (15,000) (15,000) (15,000)

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

50,000

(50,000) OG

65,000

(65,000) OG

115,000

(115,000)

Partnerships & Investments Division Maintain Parks & Building Planning Consulting Services Public Art Total Maintain New V&E

Facilities Services Position

51,900

(51,900) OG

V&E

Facility Operations Coordinator Position Bernard Avenue Parklets

59,200

(59,200) OG

60,000

(60,000) OG

Total New

171,100

(171,100)

Division Priority 2 Total

286,100

(286,100)

Total Priority 2 Operating

286,100

(286,100)

Vehicle & Mobile Equipment Capital Impacts - Priority 2

2023

Fleet Growth - Facilities Operations Coordinator Position

80,000

Fleet Growth - Facilities Services Position

80,000

Grand Total

160,000

Taxation

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INFRASTRUCTURE

2023 FINANCIAL PLAN

CITY OF KELOWNA

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INFRASTRUCTURE As a output of a corporate reorganization in late 2021, a new Infrastructure Division was created incorporating the roles and responsibilities of the previous Infrastructure Division with the Civic Operations Division. This change integrates both the infrastructure planning, design and construction of almost all City infrastructure with their ongoing operations and maintenance. This change improves the organization efficiency and effectiveness in delivering high quality services to the citizens of Kelowna. The areas of responsibility included within this Division are transportation, water, wastewater, drainage, solid waste, as well as parks and cemetery operations and maintenance. Parks and Building planning are included as part of the Partnership and Investments Division. Responsibility for managing transit governance and liaising with BC Transit also lies with Infrastructure. Infrastructure Delivery manages the delivery of City infrastructure projects. Project delivery is a combined effort of City staff and appropriate specialist consultants. Projects include both new construction and rehabilitation. A key focus of Infrastructure Delivery is to consistently and thoughtfully delivery project that minimize the impact of City projects on residents and visitors, while seeking innovation and ensuring compliance with Council approved policies as well as all applicable Acts and regulations. Infrastructure Operations is responsible for managing, operating, and maintaining the City’s fleet, parks, and street infrastructure in a sustainable manner meeting community need. Infrastructure that the branch is responsible for includes: the corporate fleet, transportation network, parks, beaches, sports fields, natural areas, urban forests, public open spaces, and Kelowna Memorial Park Cemetery. The branch also has a critical role during emergencies and provides Financial / Administrative support to the department. Integrated Transportation provides a strategic approach to plan and manage transportation system. There are three branches of this department; Transit & Transportation Programs, Strategic Transportation Planning and Transportation Engineering. This team works in liaison with BC Transit on contract administration, service planning, and infrastructure planning. The team also delivers transportation demand management and shared mobility programs; multi-modal transportation planning; data collection, monitoring and analytics; major traffic impact reviews, preliminary project design and road safety planning. This department also provides regional administration and inter-governmental collaboration to

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transportation planning and programs. As well, regional air quality planning and coordination is provided under contract to the Regional District of the Central Okanagan Utility Services is responsible for planning, preliminary design, management, operations, and maintenance of essential services including water supply (potable and non-potable systems), water conservation programs, source water protection programs, wastewater collection and treatment, stormwater systems, biosolids composting, and the Glenmore Landfill.

Divisional Activities Community Safety • Proactively participate in design reviews and bylaw updates, to ensure new spaces are safe, easy to clean, sustainable and inviting • Implement a training program for Crime Prevention through Environmental Design (CPTED) for key staff to help ensure CPTED principles are considered • Regular communication with RCMP, Bylaw and partners for a better understanding of community concerns and areas for improvement especially as it related to the transportation system Social & Inclusive • As part of the Transportation Master Plan (TMP) ensuring projects accommodate social and economic demographic needs Transportation & Mobility • Technical review of the transportation section of Subdivision, Development and Servicing Bylaw • Completion of design and start of construction on the Bertram pedestrian and bicycle overpass • Start construction of the Casorso 3 Active Transportation Corridor (ATC) (KLO to LanFranco) • Continue working on securing the funding and preparing the site for a state-of-the-art transit maintenance facility • Construction of the 2nd phase of Houghton ATC Multiuse Pathway • Planning and functional design of Commonwealth Rd connection to Jim Bailey Rd

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Vibrant Neighbourhoods • Participate in and improve land development review process to ensure proper consultation on new/renewed infrastructure (as per the new Development Process Review Guide) Economic Resiliency • Implement updated business plan for Kelowna Memorial Park Cemetery (completed in 2021) • In Partnership with Ministry of Transportation and Infrastructure (MoTI) deliver the first Goods Movement Study for the region Environmental Protection • Improve protection of the City-owned urban tree canopy and provide advice on protecting private tree canopy • Identify ways to reduce wasteful practices and opportunities and develop plans to reduce waste • Develop baseline surface water quality monitoring program and create public key performance indicators (KPI) • Develop and monitor Emergency Response Plans for each service area • Use grant funding programs for expand sanitary collection system areas still serviced by septic fields Financial Management • Regularly monitor budgets and variance through an automated process • Document service levels and funding • Use of dashboards and reports through the implementation of Cityworks • Quarterly Capital Project Financial and Delivery status reports implemented Clear Direction • Review and update performance measures to meaningful, measurable KPI’s (and benchmarks where available) for each branch • Develop system to track and report on innovation for continuous improvement in Operations • Create responsibility matrix to clarify roles & responsibilities for assets within Operations and regularly review • Develop comprehensive list of External Relationships in which Operations has a role People • • • • •

Develop Employee Engagement Action Plans Address divisional growth and associated space needs Conduct regular Senior Leadership meetings with Staff Annually update branch succession plans with HR assistance Ensure staff are adequately trained to improve service quality

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Divisional Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

16,220

18,000

19,500

Average cost to maintain parks per hectare

$8,975

$9,194

$9,664

# of full-time staff per hectare

0.046

0.047

$9,000

$9,194

$9,664

% of pothole requests fixed within 5 days (target 90%)

68%

85%

90%

Snow & ice control budget performance (target 100%)

116%

117%

120%

31,121

32,000

30,000

154,078

162,500

165,000

31.2

32.0

32.5

3,851,545

4,020,000

4,190,000

Total lane kilometres of roads resurfaced (km)

Air quality - # of woodstoves exchanged for high-efficiency stoves

Civic buildings (incl KCC)

$7.0M

$5.1M

$3.9M

Parks & public spaces

$14,.7M

$23.8M

$30.4M

Transportation

Administration Service requests Fleet Services % of electric light duty fleet vehicles # fleet electric vehicle chargers Parks

Public Works Average maintenance cost per lane km (excludes snow & construction)

Landfill and compost operations Biosolids composted (tonnes) Odour reports - ogogrow Garbage landfilled (tonnes) Materials recovered at landfill (% of total received) 3

Landfill gas Captured (m ) Infrastructure Delivery

Total value of capital construction projects ($)

$17,.1M

$14.7M

$25.1M

Solid waste

$3.0M

$4.4M

$12.1M

Storm drainage

$2.9M

$9.7M

$7.0M

Water

$13.5M

$5.4M

$6.0M

Wastewater

$7.1M

$20.0M

$9.4M

7,448

8,944

8,957

3,424,587

4,433,884

4,988,929

Integrated Transportation Corporate Green House Gas Emissions (tCO2e) Transit ridership (# of rides per year) Wastewater (See Wastewater Utility) Water Supply (See Water Utility)

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Budget Overview

Divisional summary Actual 2021 Departmental operating cost centres ($ thousands): Infrastructure 220 Infrastructure 226 Civic Operations Integrated Transportation 185 Integrated Transportation 192 Transportation Engineering 193 Transit and Programs 224 Strategic Transportation Planning 257 Kelowna Regional Transit Infrastructure Delivery 214 Infrastructure Delivery 215 Utilities Construction Infrastructure Operations 168 Infrastructure Operations 169 Park Services 170 Cemetery 172 Sportsfields & Irrigation 174 Urban Forestry 180 Street Lights 188 Roadways Construction 189 Roadways Operations 190 Traffic Operations & Technical Support 191 Fleet Services 211 Civic Operations Finance & Administration 212 Public Works 219 Traffic Signals & Systems

Revised Preliminary Change from 2022 2023 prior year

Per cent change

214 230 444

342 0 342

344 0 344

0.7%

144 909 164 403 6,592 8,212

329 877 175 244 6,595 8,221

426 908 175 319 7,845 9,673

1,452

17.7%

874 121 995

1,226 157 1,383

1,194 161 1,355

(28)

(2.0%)

107 572 0 10,246 2,443 1,906 144 6,559 1,062 26 742 164 1,085

202 588 0 10,235 2,699 1,873 147 5,995 1,363 51 1,016 149 1,203

203 647 0 11,123 2,724 1,919 161 6,370 1,358 51 1,066 149 1,218

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2023 FINANCIAL PLAN

Continued 258 Westside Gravel Pit 287 Technical Support Services Utility Services 267 Water Quality & Customer Care - General 199 Pumpstations - Stormwater 201 Utility - Stormwater 183 Solid Waste 184 Biosolids 213 Utility Services 221 Solid Waste Management 245 Utility Planning Net operating expenditures Divisional capital cost centres ($ thousands): 302 Parks Capital 304 Transportation Capital 305 Solid Waste Capital 306 Storm Drainage Capital 310 Vehicle & Mobile Equipment Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

CITY OF KELOWNA

(0) 310 25,365

0 329 25,851

0 329 27,318

1,468

5.7%

360 26 999 (200) 0 58 0 430 1,672 36,688

376 20 1,068 (200) 0 53 0 384 1,700 37,497

377 19 1,061 (200) 0 52 0 453 1,762 40,453

62 2,956

3.7% 7.9%

2,481 4,889 (0) 621 27 8,018 44,706

3,894 4,527 0 1,046 255 9,722 47,218

5,981 3,532 0 1,000 109 10,622 51,075

901 3,857

9.3% 8.2%

28.6 157.5 36.8 222.9

29.9 151.8 34.3 216.0

30.4 155.6 34.9 220.9

4.9

2.3%

Total 37,497

FTE 216.0

1,961 39,458

(0.5) 2.4 (0.2) 217.7

996 40,453

3.2 220.9

167 167

1.0 1.0

Detailed operating program changes ($ thousands)

2022 revised budget 2023 net impacts One-time operating requests Prior years ongoing adjustments Divisional adjustments 2023 Program additions (P1) 2023 operating requests: Total Unfunded 2023 requests (P2) 2023 operating request Total unfunded requests for 2023

(115) 2,015 60

996

Note: Totals may not add due to rounding.

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Infrastructure - General General - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 42,811) ( 18,681)

0 0 ( 39,410) ( 16,042)

0 0 ( 42,064) ( 15,671)

( 455) 0 ( 499) _____________ ( 62,446)

( 395) 0 ( 3,375) _____________ ( 59,222)

( 176) 0 ( 854) _____________ ( 58,765)

21,650 7,788 13,593 37,137 0 0 3,645

21,450 7,361 15,738 36,892 0 0 4,831

21,858 7,600 14,251 40,139 0 0 3,450

12,789 0 2,532 _____________ 99,134

9,558 0 889 _____________ 96,719

10,991 0 928 _____________ 99,218

36,688

37,497

40,453

42,238 ( 34,219) _____________ 8,018 _____________ 44,706

124,242 ( 114,521) _____________ 9,722 _____________ 47,218

78,830 ( 68,207) _____________ 10,622 _____________ 51,075

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

125,000

(125,000)

0 OG

2,609,100

(1,335,200)

(1,759,000)

485,100 OG

200,000

(200,000) OG

627,800

(40,900)

(586,900) OG

124,300

(4,500)

(37,800)

(82,000) OT

10,000

(10,000) OG

172 Asphalt Maintenance Operating Request 173 Irrigation 4G Communications

75,000

(75,000) OG

10,000

(10,000) OG

173 Landfill - Design, Operations and Closure Plan update 364 CAP Stewart DCC (Crawford - Swamp)

600,000

(600,000)

0 OT

0 OG

348 CAP Knox Mountain Park Improvements 174 Parks, Pathways and Parking Lot Lighting 351 CAP Parks Large Capacity Waste Receptacles 349 CAP Irrigation Renewal

12,000

(12,000) OG

30,000

(30,000)

0 OG

17,500

(17,500) OG

0 OG

174 Cemetery Materials and Supplies Increase 175 Parks Drinking Fountain Replacement

31,000

(31,000)

0 OG

45,500

(45,500)

0 OG

Total Maintain

4,517,200

(872,400)

(1,339,700)

(1,796,800)

370 CAP Local Street Urbanization Program

0 OG

175 Utilities Construction Supervisor Position 347 CAP Glenmore Recreation Park (DCC) Phase 3 367 CAP Casorso 3 DCC (Lanfranco Barrera), ATC 375 CAP Crosswalk Safety, Signals and Flashers 369 CAP Glenmore 4 DCC (Kane - South Yates), ATC 377 CAP Okanagan College Exchange Capacity Expansion Sidewalk Network Expansion CAP 375 Program 176 Downtown Transportation Review

14,000

(9,000)

(5,000) OG

0 OG

12,000

(12,000) OG

1,200

(1,200) OG

4,000

(4,000) OG

0 OG

100,000

(25,000)

(75,000) OT

176 Miscellaneous Drainage Program

50,000

(50,000) OG

Infrastructure Division Maintain 170 Landfill - Leachate Aeration and Bin Repairs 170 Transit Base Operating Cost

(508,300)

Growth

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Page

CITY OF KELOWNA

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

Increase 374 CAP Bicycle Network Improvement Program 356 CAP Fleet Growth - General Fund

0 OG

16,700

(16,700) OG

Total Growth

197,900

(25,000)

(9,000)

177 Downtown Cleanup Patrol

51,800

(51,800) OG

177 Senior Transportation Engineer Position 178 FireSmart Chipping Program

72,200

(72,200) OG

40,000

(40,000)

0 OG

100,000

(100,000)

0 OT

200,000

(50,000)

(150,000) OT

(163,900)

New

378 CAP Transit - Bus Stop and Amenity Improvements 178 Stormwater Utility Business Case and Implementation Plan 179 Stormwater Basin Plan - Central Area 179 Accountant Position

49,400

(49,400) OG

40,000

(40,000)

0 OG

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support

0 OG

Total New

553,400

(190,000)

(40,000)

(323,400)

Division Priority 1 Total

5,268,500

(1,087,400)

(1,339,700)

(1,796,800)

(49,000)

(995,600)

Total Priority 1 Operating

5,268,500

(1,087,400)

(1,339,700)

(1,796,800)

(49,000)

(995,600)

180 Time Series Data Analytics

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Landfill - Leachate Aeration and Bin Repairs

Maintain ON-GOING PRELIMINARY

Justification: Budget is requested to install additional leachate pre-treatment capacity using aeration and air scrubbing at the Glenmore Landfill. This would reduce onsite odors, impacts to sewer lines, and reduce chemical addition and costs. Ongoing annual budget will be required for replacement filter media and maintenance of the system. Maintenance and repairs to the existing roll off bins used to haul waste from the landfill transfer station to the active face are required and is expected to be completed by June 2023.

Strategic Direction: Cost 125,000 7,500 7,500

2023 2024 2025

Environmental protection - Resiliency & adaptability to climate change Reserve (125,000) (7,500) (7,500)

Borrow 0 0 0

Division: Department:

Infrastructure Integrated Transportation

Title:

Transit Base Operating Cost

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Taxation 0 0 0 Maintain ON-GOING

PRELIMINARY

Justification: This request is to reflect the anticipated changes in transit operations including revenue, management/labour, fuel, maintenance and lease fees and expansion. During the COVID-19 pandemic, ridership had decreased considerably resulting in a substantial decrease in revenues, however services levels remained. In 2023, Conventional and Community program revenue is expected to increase as ridership is anticipated to approach pre-COVID levels offset with inflationary expense increases. The Custom Transit program expenses are increasing largely due to operational inflationary increases. Additional budget is being requested for transit security to address market conditions and maintain service levels.

Strategic Direction: 2023 2024 2025

Cost 2,609,100 2,609,100 2,609,100

Financial management - Cost to deliver services is quantified Reserve 0 0 0

Borrow 0 0 0

Grant (1,335,200) (1,335,200) (1,335,200)

Other 0 0 0

Revenue (1,759,000) (1,759,000) (1,759,000)

Utility 0 0 0

Taxation 485,100 485,100 485,100

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2023 Operating Request Details Division: Department:

Infrastructure Infrastructure Operations

Title:

Winter Maintenance Budget Request

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: Roadway's winter maintenance project has been consistently over budget (20-40%) for the last 5 years. Budget is requested to increase the base budget to reflect actual costs affiliated with maintaining current winter service levels. 2023 Base Budget: $694k

Strategic Direction: 2023 2024 2025

Cost 200,000 400,000 600,000

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Infrastructure Infrastructure Operations

Title:

Parks Beaches & Mowing Contract Increases

Taxation (200,000) (400,000) (600,000) Maintain ON-GOING

PRELIMINARY

Justification: The existing Parks Beaches & Mowing Maintenance contracts expired in October 2022. It is expected that these contracts will have significant increases based on information provided by the current long term vendors. Contract price increases will be due to increases in fuel, wages for staff, hauling and tipping fees. Current contractors are having challenges retaining staff and will be increasing their wages significantly to maintain staff and service levels. The 2022 operational season was subject to deficiencies due to the challenges the current contractor had in being able to meet the new market demands for wages and supplies/materials. 2023 Base Budget: $3M Strategic Direction: 2023 2024 2025

Cost 627,800 627,800 627,800

Other - Supports Base Business Reserve (40,900) (40,900) (40,900)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (586,900) (586,900) (586,900)

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Integrated Transportation

Title:

Strategic Transportation Partnership of Central Okanagan 2023 Transition

Maintain ONE-TIME PRELIMINARY

Justification: Budget is requested for the City's portion of the regional transportation programs run on behalf of the Strategic Transportation Partnership of the Central Okanagan (STPCO). The STPCO dissolved at the end of 2020 and per agreements, the City is providing transitional services during the interim period until a formal contract can be put in place that flows through the Regional District of Central Okanagan.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 124,300

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve 0

Borrow 0

Grant (4,500)

Other 0

Revenue (37,800)

Utility 0

Priority: 1

Division: Department:

Infrastructure Infrastructure Operations

Title:

Asphalt Maintenance Operating Request

Taxation (82,000) Maintain ON-GOING

PRELIMINARY

Justification: Budget is requested for asphalt maintenance. The increased cost of operating has surpassed the existing budget. Specifically, traffic control personnel and equipment rental costs have created budget overruns. 2023 Base Budget: $239k

Strategic Direction: 2023 2024 2025

Cost 75,000 100,000 125,000

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (75,000) (100,000) (125,000)

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2023 Operating Request Details Division: Department:

Infrastructure Infrastructure Operations

Title:

Irrigation 4G Communications

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: Budget is requested to fund the 4G connection upgrade required for irrigation central control. During the 2021 heat dome it was determined that the current controllers were out of date; and not functioning which compounded the weather situation. Half of the controllers have been updated, but more units require a 4G upgrade. This budget will cover the additional telecom subscription cost required to make the new controllers operational. 2023 Base Budget: $0

Strategic Direction: Cost 10,000 15,000 20,000

2023 2024 2025

Vibrant neighbourhoods - Animated parks & public spaces Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Landfill - Design, Operations and Closure Plan update

Taxation (10,000) (15,000) (20,000) Maintain ONE-TIME

PRELIMINARY

Justification: Budget is requested to complete the 2023 update to the Glenmore Landfill Design, Operations and Closure Plan (DOCP). The DOCP is required by permit to be updated every 5 years and in order to bring the site into full compliance with the permit and landfill guidelines, additional supplemental studies are also required. These include a Groundwater Impact Assessment, Hydrogeological and Hydrology Report, and an updated Geotechnical Survey. All studies will be funded under this budget request. There would be no additional ongoing budgets impacts related to this request.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 600,000

Other - Supports Base Business Reserve (600,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Infrastructure Operations

Title:

Parks, Pathways and Parking Lot Lighting

Maintain ON-GOING PRELIMINARY

Justification: The responsibility for lighting of the parks, pathways and parking lots has moved to the street light department. Budget is requested to allow for safe operation and maintenance of the assets. 2023 Base Budget: $187k

Strategic Direction: 2023 2024 2025

Cost 30,000 30,000 30,000

Community Safety - Residents feel safe Reserve (30,000) (30,000) (30,000)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Infrastructure Infrastructure Operations

Title:

Cemetery Materials and Supplies Increase

Taxation 0 0 0 Maintain ON-GOING

PRELIMINARY

Justification: Cost of materials and supplies to run the Kelowna Memorial Park Cemetery have increased drastically over the last 2-3 years (30 - 40% price increases from suppliers). These materials are necessary as they are used to produce revenue in this self funded area. 2023 Base Budget: $65k

Strategic Direction: 2023 2024 2025

Cost 31,000 31,000 31,000

Financial management - Non-tax revenues are increasing Reserve (31,000) (31,000) (31,000)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 0

Page 174

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2023 Operating Request Details Division: Department:

Infrastructure Infrastructure Operations

Title:

Parks Drinking Fountain Replacement

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: In 2021, the parks team removed 10 aged drinking water fountains that were not operational for many years and were due to be replaced. An operational needs assessment to determine demand for these units was done in 2021-2022; however due to COVID-19 and fiscal constraints; operational funding and replacement fountains were not available. New fountains are now available for purchase with improved functionality and accessibility standards. The replacement of the fountains is proposed as a 3 year project. 2023 Base Budget: $1.2M

Expected Completion: Dec 2025 Strategic Direction: 2023 2024 2025

Cost 45,500 45,500 28,500

Other - Supports Base Business Reserve (45,500) (45,500) (28,500)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Infrastructure Infrastructure Delivery

Title:

Utilities Construction Supervisor Position

Taxation 0 0 0 Growth ON-GOING

PRELIMINARY

Justification: Budget is requested for the addition of a Utilities Construction Supervisor for the Infrastructure Delivery Utilities Construction team. At the Gulley Road Construction yard location, the team is led by the City Construction Manager. There are no other management/exempt positions to assist the manager at this location for vacation backfill or other support functions. The manager is being temporarily supported by a Design Technician from Infrastructure Delivery, but that position is needed for other duties. The position will be funded 75 per cent from capital construction projects and the remaining 25 per cent will be cost shared between the Water Fund, Wastewater Fund and taxation (Drainage).

Strategic Direction: 2023 2024 2025

Cost 14,000 27,100 27,100

Environmental protection - Emergency response & preparation Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (9,000) (17,400) (17,400)

Taxation (5,000) (9,700) (9,700)

Page 175

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2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Downtown Transportation Review

Priority: 1

Growth ONE-TIME PRELIMINARY

Justification: Kelowna's Downtown Urban Centre is growing and evolving quickly. To support a livable, vibrant downtown without major road expansions it will be important to shift as many trips to biking, walking, transit and shared mobility as possible. To support local economic growth, it will be important to consider goods movement and deliveries as the downtown densifies. While the TMP was able to identify major infrastructure projects to support the OCP, a finergrained review of the downtown will help ensure things like intersection controls, crosswalks, secure bike parking, sidewalks, bicycle network, shared mobility, and transit amenities, are all working together to support the rapidly growing downtown. This review will inform the prioritization of capital programs and help inform the redevelopment process in a timely manner.

Expected Completion: Jun 2024 Strategic Direction: 2023

Cost 100,000

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (25,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation (75,000)

Priority: 1

Division: Department:

Infrastructure Infrastructure Delivery

Title:

Miscellaneous Drainage Program Increase

Growth ON-GOING PRELIMINARY

Justification: The City continues to have an unprecedented increase in the number of drainage issues related to climate/weather changes, groundwater interactions and increased hillside development. Additionally, recent trends in construction inflation have significantly increased the costs of the small drainage projects included in this program. It is anticipated that the program's project backlog will continue to grow at an unsustainable rate unless annual budgets are increased. An ongoing budget increase is requested to help with the backlog of miscellaneous drainage projects. 2023 Base Budget: $225k

Strategic Direction: 2023 2024 2025

Cost 50,000 75,000 100,000

Economic resiliency - Infrastructure deficit is reduced Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (50,000) (75,000) (100,000)

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2023 Operating Request Details Division: Department:

Infrastructure Infrastructure Operations

Title:

Downtown Cleanup Patrol

Priority: 1

New ON-GOING PRELIMINARY

Justification: Budget is requested to make the downtown cleanup pilot partnership an ongoing initiative. The pilot project had great results. The funds will go toward a needle patrol, litter and garbage pickup Downtown and along the Rail Trail. The partnership would include the PEOPLE Project which hires people with lived experience to help complete the tasks and support people returning to the work force.

Strategic Direction: 2023 2024 2025

Cost 51,800 62,000 62,000

Vibrant neighbourhoods - Animated parks & public spaces Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (51,800) (62,000) (62,000)

Priority: 1

Division: Department:

Infrastructure Integrated Transportation

Title:

Senior Transportation Engineer Position

New ON-GOING PRELIMINARY

Justification: The Senior Transportation Engineer position supports the operation, optimization and design of signals, roundabouts and other traffic control devices. It is the department's expert on transportation operations and supports the development review process. As Kelowna has grown, the number of traffic control devices (170+ locations), and their complexity, have rapidly increased. Existing infrastructure requires regular updates to respond to changing conditions, maintain performance, mitigate congestion and improve safety. Recently, traffic service requests and traffic signal updates have been impacted by limited staff resources. Demand for this position's skill set is growing.

Strategic Direction: 2023 2024 2025

Cost 72,200 141,300 141,300

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (72,200) (141,300) (141,300)

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2023 Operating Request Details Division: Department:

Infrastructure Infrastructure Operations

Title:

FireSmart Chipping Program

Priority: 1

New ON-GOING PRELIMINARY

Justification: In 2022 the City of Kelowna applied for funds from the UBCM Community Resiliency Investment program to introduce a FireSmart Chipping Program. The program was designed to assist with removal of combustible vegetation on private properties that are within high to extreme wildfire risk areas. The homeowners would remove combustible vegetation and move it to the roadside for the contractor to chip and haul away. The updated Community Wildfire Resiliency Plan highlighted a need for this type of program to reduce the overall wildfire risk to the community. Budget is requested to continue the program.

Strategic Direction: 2023 2024 2025

Cost 40,000 40,000 40,000

Environmental protection - Resiliency & adaptability to climate change Reserve (40,000) (40,000) 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 (40,000)

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Stormwater Utility Business Case and Implementation Plan

New ONE-TIME PRELIMINARY

Justification: The adoption of Storm Water utilities by other Canadian cities presents a viable path forward to ensure dedicated, nontaxation revenue for municipal Storm Water services. Budget is requested to develop a Kelowna-specific business case and implementation plan to infer the future consideration of adopting a Storm Water utility. The intent of the work will be to explore options and feasibility for a dedicated, sustainable Storm Water funding approach that generates revenues to offset costs for traditional Storm Water related services and projects, facilitate financial incentives to property owners to more effectively manage Storm Water, position the City to meaningfully respond to the impacts of climate change, and maintain the high water quality in Okanagan Lake.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 100,000

Financial management - Non-tax revenues are increasing Reserve (100,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

Page 178

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Stormwater Basin Plan - Central Area

New ONE-TIME PRELIMINARY

Justification: Budget is requested for a Stormwater Management Plan (SWMP) to be developed for the urbanized area bound by Mill Creek to the north, Mission Creek to the south, Okanagan lake to the west, and the Orchard Park area to the east. The basin hosts the entirety of Fascieux Creek and associated tributaries, as well as portions of the Mill Creek and Mission Creek basins. The Central Area Basin also includes three special planning areas identified in the 2040 Official Community Plan - Pandosy Urban Centre, Midtown Urban Centre, and the Casorso Road Neighbourhood Plan. This SWMP will help identify minor and major system infrastructure projects and water quality improvements to assist with future capital and development planning.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 200,000

Environmental protection - Resiliency & adaptability to climate change Reserve (50,000)

Borrow 0

Division: Department:

Infrastructure Infrastructure Operations

Title:

Accountant Position

Grant 0

Other 0

Revenue 0

Utility 0

Priority: 1

Taxation (150,000) New ON-GOING

PRELIMINARY

Justification: Budget is requested for a permanent, full-time Accountant (1.0 FTE) to support the expansion of the division through the re-organization and merger of the Infrastructure and Civic Operations divisions and the decentralizing of tasks from Financial Services. The realigned finance and administration department now supports 55 cost centres, 91 projects and 45 managers and supervisors with their financial and administrative functions.

Strategic Direction: 2023 2024 2025

Cost 49,400 98,500 98,500

Financial management - Cost to deliver services is quantified Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (49,400) (98,500) (98,500)

Page 179

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Time Series Data Analytics

New ON-GOING PRELIMINARY

Justification: Budget is requested to purchase access to time-series analytics software to analyze trends in water, wastewater and stormwater processes. The deliverables from these packages will be analytics feeding new digital dashboards that report trends and comparison to key performance indicators. The analytics provides a quality assurance aspect in support of the new public time-series data produced by different City operations. Staff will strive to make this data available for public and Emergency Operations Centre (EOC) consumption. Staff will also address security risks and operations change opportunities. This request is for a two year term.

Expected Completion: Dec 2024 Strategic Direction: 2023 2024 2025

Cost 40,000 40,000 0

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (40,000) (40,000) 0

Taxation 0 0 0

Page 180

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

10,000

(10,000) OG

Parks CityWorks Hardware

45,600

(45,600) OG

Traffic Technician Position

43,000

(43,000) OG

98,600

(98,600)

58,000

(58,000) OG

20,000

(10,000)

(10,000) OT

Total New

78,000

(10,000)

(68,000)

Division Priority 2 Total

176,600

(10,000)

(166,600)

Total Priority 2 Operating

176,600

(10,000)

(166,600)

Infrastructure Division Maintain CAP Irrigation Renewal

Total Maintain New Asset Management Coordinator Position Sanitary-Storm Service Interconnects Policy Development

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Page 182

WATER UTILITY

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

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WATER UTILITY The City Water Utility sources its drinking water from Okanagan Lake and provides water to just over half of the Kelowna population. The City serves approximately 86,000 customers from the Poplar Point, Eldorado, Cedar Creek, and the Swick Road pump stations. The City also provides non-potable water for irrigation in Southeast Kelowna from Hydraulic Creek. The City water systems can deliver up to 210 million litres of water per day and requires over 630km of pipes, 4 treatment & water pump stations, 20 booster stations, 29 reservoirs and 86 pressure reducing stations to support water delivery. Local health authorities have described our Water Utility’s Source-to-Tap program as one of the best in BC. The program’s goal is to identify hazards and weaknesses that can affect the safety and quality of our drinking water supply. The framework of the Source-to-Tap program is the multi-barrier approach. Extension of the Cedar Creek system into Southeast Kelowna completed in 2021 continues to supply potable water to 6,560 people that were supplied from ex-SEKID irrigation system. Work to renew and upgrade the non-potable irrigation system is on-going to ensure reliable water delivery to agricultural customers. Staff continue to work on water conservation and efficiency programs to be able to sustainably provide water for our community. Coupled with the fact that new water fixtures and appliances continue to be more efficient, per capita residential water consumption continues to drop in the City. The growth rate of total production of potable water remains lower than the population growth rate.

Water Utility – Performance Measures Potable water production (1,000 m3)

2021 Actual 16,070

2022 Estimate 15,500

2023 Forecast 16,000

Non-Potable water production (1,000 m3)

9,825

8,000

8,500

Number water quality complaints (potable system)

# water main breaks (potable & non-potable systems)

# water service breaks

Infrastructure renewal / total infrastructure asset value

0.4%

0.5%

0.4%

Renewal water main installed (m)

2930

580

1800

Page 185

2023 FINANCIAL PLAN

CITY OF KELOWNA

Budget Overview

Utility summary Actual 2021 Departmental operating cost centres ($ thousands): Water 196 Water Operations 198 Pumpstations - Water 200 Utility - Water 237 Water Construction 247 Utility Planning - Water 264 Infrastructure Delivery - Water 266 Water Quality & Customer Care - Water Net operating expenditures Divisional capital cost centres ($ thousands): 313 Water Capital Net capital expenditures Total departmental net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Revised Preliminary Change from 2022 2023 prior year

Per cent change

(14,312) 4,427 867 1,014 210 16 992 (6,787)

(12,977) 4,780 1,124 977 257 95 1,044 (4,700)

(13,243) 5,254 1,189 1,030 277 95 1,038 (4,360)

340

(7.2%)

4,199 4,199 (2,588)

4,700 4,700 0

4,360 4,360 0

(340) 0

(7.2%) 0.0%

4.1 34.9 4.6 43.6

4.3 38.2 4.5 47.0

4.3 38.7 4.5 47.5

0.5

1.1%

Page 186

2023 FINANCIAL PLAN

CITY OF KELOWNA

(35) 268 (378)

485

Total (4,700)

FTE 47.0

(145) (4,845)

0.0 0.0 0.0 47.0

485 (4,360)

0.5 47.5

0 0

0.0 0.0

Page 187

2023 FINANCIAL PLAN

CITY OF KELOWNA

Infrastructure - Water Water Utility - Water Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 ( 2,176) ( 18,657) ( 440)

0 ( 1,990) ( 17,919) ( 395)

0 ( 2,051) ( 18,650) ( 597)

0 0 ( 101) _____________ ( 21,374)

0 0 ( 1,208) _____________ ( 21,512)

0 0 0 _____________ ( 21,298)

4,289 784 3,328 45 289 335 1,271

4,695 712 4,337 112 304 335 2,659

4,741 738 4,992 156 276 359 1,782

12 0 4,233 _____________ 14,587

0 0 3,659 _____________ 16,812

0 0 3,895 _____________ 16,938

( 6,787)

( 4,700)

( 4,360)

13,468 ( 9,269) _____________ 4,199 _____________ ( 2,588)

9,755 ( 5,054) _____________ 4,700 _____________ 0

6,007 ( 1,647) _____________ 4,360 _____________ 0

Capital Expenditures

Gross Expenditures Other Funding Sources Utility Capital Net Operating & Utility Capital Exp.

Page 188

2023 FINANCIAL PLAN

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2023 Operating Requests Preliminary Budget Summary - Water Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

120,000

(120,000)

110,000

(110,000)

Total Maintain

230,000

(230,000)

191 Water Operations Maintenance and Cost Increase 356 CAP Fleet Growth - Water Fund

163,500

(163,500)

31,900

(31,900)

Total Growth

195,400

(195,400)

191 Water Supply Millwright Position

45,900

(45,900)

192 Water Quality Co-op Student Position

13,900

(13,900)

Total New

59,800

(59,800)

175 * Utilities Construction Supervisor Position

Total Growth

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support 180 * Time Series Data Analytics

Total New

Department Priority 1 Total

485,200

(485,200)

Total Priority 1 Operating

485,200

(485,200)

Water Maintain 190 Water Supply Ongoing Major Equipment Renewal 190 Long Meadow Reservoir Dam Decommissioning

Growth

New

Growth OG

New

Page 189

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Water Supply Ongoing Major Equipment Renewal

Maintain ON-GOING PRELIMINARY

Justification: Costs associated with replacing major equipment in the water supply system have increased dramatically. To ensure equipment is renewed at the proper intervals and a reliable system is maintained, budget is requested to fund the ongoing maintenance of the HVAC system in the Poplar Point Low Lift Pump Station and for the purchase of an electric motor at the Poplar Point High Lift Pump Station. 2023 Base Budget: $853,500

Strategic Direction: 2023 2024 2025

Cost 120,000 120,000 120,000

Economic resiliency - Infrastructure deficit is reduced Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (120,000) (120,000) (120,000)

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Long Meadow Reservoir Dam Decommissioning

Maintain ONE-TIME PRELIMINARY

Justification: The Long Meadow Reservoir is no longer a viable water storage reservoir for the non-potable water system. The reservoir was removed from service by South East Kelowna Irrigation District (SEKID) well before the system was transferred to the City. This request is to properly decommission the reservoir's three dams and reduce ongoing liability to the City.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 110,000

Other - Supports Base Business Reserve 0

Borrow 0

Grant 0

Other 0

Revenue 0

Utility (110,000)

Page 190

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Water Operations Maintenance and Cost Increase

Growth ON-GOING PRELIMINARY

Justification: Budget is requested for chemicals, repair parts and purchase services in the area of Water Supply and Treatment, Water Distribution and Utilities Construction. These areas are experiencing price increases in excess of inflation due to supply chain issues and the current economic climate. This request also includes budget to fund overgrowth vegetation maintenance at easements and hydrant painting maintenance.

Strategic Direction: 2023 2024 2025

Cost 163,500 157,500 157,500

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (163,500) (157,500) (157,500)

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Water Supply Millwright Position

New ON-GOING PRELIMINARY

Justification: Budget is requested to add one Water Supply Millwright position. The addition of the non-potable water supply system includes 11 dams, the intake facility and over 30 pressure reducing stations adding a significant workload for the Water Supply group, estimated at 2,000 hours annually. The added Millwright position will ensure these assets are maintained and operate reliably.

Strategic Direction: 2023 2024 2025

Cost 45,900 97,100 97,100

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (45,900) (97,100) (97,100)

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Water Quality Co-op Student Position

New ON-GOING PRELIMINARY

Justification: Budget is requested for a Drinking Water Co-op position to work with the Water Technician in gathering, analyzing and reporting on the water quality safety of the drinking system. The Co-op will be involved in the weekly sample collection of beach water samples and are responsible for submitting them to the Interior Health associated lab to ensure water quality remains within swimming guidelines. The position will perform stream/creek sampling and testing to assess the impact of freshet on drinking water sources, as well as assist with special projects that are given to the department, and assist in vacation coverage throughout the summer months.

Strategic Direction: 2023 2024 2025

Cost 13,900 13,900 13,900

People - Ability to attract, select & retain talent Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (13,900) (13,900) (13,900)

Page 192

WASTEWATER UTILITY

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

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WASTEWATER UTILITY The City of Kelowna’s Wastewater collection and treatment infrastructure serves approximately 85 per cent of Kelowna’s population (including residents, businesses and industries) and is being expanded to reach unserved areas and to accommodate the City's growth. The City’s wastewater treatment program is to protect Okanagan Lake and the connected waterways. If wastewater is not treated, it would flow directly into our freshwater sources - where we get our drinking water from. This would threaten public health, wildlife habitats, fisheries, tourism, and recreation opportunities. In 2011, the City completed an expansion of the Wastewater Treatment Facility (WWTF). With this project, the facility has been able to increase its capacity to treat water from 40 to 70 million litres a day. This will accommodate the City’s sewer servicing needs beyond 2030. The next substantial wastewater treatment project is to address biosolids capacity and treatment, possibly through the development of a solids digestion plant which is currently under review.

Wastewater Utility – Performance Measures Renewal investment / total system value

2021 Actual 0.5%

2022 Estimate 0.6%

2023 Forecast 0.5%

Renewal sanitary mains (m)

1,060

1,510

2,330

Wastewater total phosphorous [Permit: 0.25] (mg/l)

0.19

0.23

0.20

Wastewater total nitrogen [Permit: 6.0] (mg/l)

5.30

5.35

5.25

Wastewater b.o.d. [Permit: 10.0] (mg/l)

2.7

# odour complaints WWTF

# blocked mains / 100 km of sewer length Wastewater Treatment Facility

Page 195

2023 FINANCIAL PLAN

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Budget Overview

Utility summary Actual 2021

Revised Preliminary Change from 2022 2023 prior year

Per cent change

Departmental operating cost centres ($ thousands): Wastewater

194 Wastewater Collection

(16,593)

(16,697)

(15,722)

195 Wastewater Treatment

6,029

5,728

5,730

225 Biosolids

1,436

236 Wastewater Construction

347

391

389

263 Infrastructure Delivery - Wastewater

265 Water Quality & Customer Care - Wastewater

520

551

246 Utility Planning - Wastewater

290

142

162

Net operating expenditures Divisional capital cost centres ($ thousands):

(9,364)

(8,389)

(7,364)

5,897

8,389

7,364

314 Wastewater Capital Net capital expenditures Total departmental net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

1,025

(12.2%)

5,897

8,389

7,364

(1,025)

(12.2%)

(3,467)

0.0%

3.7 29.7 2.7 36.1

4.7 46.3 7.4 58.4

5.2 42.3 7.4 54.9

-3.5

(6.0%)

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2023 FINANCIAL PLAN

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(36) (180) 784

457

Total (8,389)

FTE 58.4

569 (7,820)

(2.6) (2.0) 0.0 53.8

457 (7,364)

1.1 54.9

0 0

0.0 0.0

Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

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Infrastructure - Wastewater Wastewater Utility - Wastewater Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 ( 1,293) ( 19,388) ( 1,626)

0 ( 1,296) ( 21,255) ( 2,209)

0 ( 1,240) ( 21,588) ( 2,270)

0 0 ( 141) _____________ ( 22,449)

0 0 ( 1,211) _____________ ( 25,971)

0 0 0 _____________ ( 25,098)

3,756 854 3,324 74 350 693 3,171

5,811 1,173 4,406 668 350 693 2,581

5,461 1,174 4,610 669 282 706 1,766

156 0 706 _____________ 13,085

198 0 1,701 _____________ 17,582

198 0 2,869 _____________ 17,734

( 9,364)

( 8,389)

( 7,364)

7,120 ( 1,224) _____________ 5,897 _____________ ( 3,467)

28,334 ( 19,945) _____________ 8,389 _____________ 0

9,366 ( 2,002) _____________ 7,364 _____________ 0

Capital Expenditures

Gross Expenditures Other Funding Sources Utility Capital Net Operating & Utility Capital Exp.

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2023 Operating Requests Preliminary Budget Summary - Wastewater Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

200 Wastewater Operations and Maintenance 200 Source Control Co-op Position

380,000

(35,000)

(345,000)

14,000

(14,000)

Total Maintain

394,000

(35,000)

(359,000)

11,300

(11,300)

Total Growth

11,300

(11,300)

201 Wastewater Treatment Operator Position 201 Wastewater Co-op Student Positions

48,900

(48,900)

37,500

(37,500)

Total New

86,400

(86,400)

175 * Utilities Construction Supervisor Position

Total Growth

270 * Asset Management System Manager Position 270 * Asset Management Consulting Support 180 * Time Series Data Analytics

Total New

Department Priority 1 Total

491,700

(35,000)

(456,700)

Total Priority 1 Operating

491,700

(35,000)

(456,700)

Wastewater Maintain

Growth 400 CAP KLO Rd Mission Creek Sewer Connection

New

Growth OG

New

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Wastewater Operations and Maintenance

Maintain ON-GOING PRELIMINARY

Justification: Budget is requested to increase the chemical budget specifically related to Bioxide and add budget to purchase water for flushing, add funds to mechanical and electrical equipment repair budget and complete maintenance on the centrifuge at the Brandt's Creek Trade-waste facility that is due for a major mechanical inspection and replacement of some components. 2023 Base Budget: $712K

Strategic Direction: 2023 2024 2025

Cost 380,000 345,000 345,000

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (35,000) 0 0

Utility (345,000) (345,000) (345,000)

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Source Control Co-op Position

Maintain ON-GOING PRELIMINARY

Justification: Source Control is responsible for wastewater compliance monitoring that includes industrial discharge and over 800 Food establishment inspections annually. Budget is requested to increase the current four month Co-op position to an eight month term in order to prevent on-going, delinquent inspections and provide staff coverage. 2023 Base Budget: $13k

Strategic Direction: 2023 2024 2025

Cost 14,000 14,500 15,000

Environmental protection - Resiliency & adaptability to climate change Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (14,000) (14,500) (15,000)

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2023 Operating Request Details Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Wastewater Treatment Operator Position

New ON-GOING PRELIMINARY

Justification: Budget is requested to add an additional full time Wastewater Treatment Operator II. Operators work at both the treatment facilities and on lift stations. The additional operator time required for lift stations is being accomplished by re-allocating staff from the wastewater treatment facilities which is leaving work uncompleted at these facilities. This position would allow the department to maintain current service levels and help address growing needs for the highly sophisticated wastewater systems.

Strategic Direction: 2023 2024 2025

Cost 48,900 95,700 95,700

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (48,900) (95,700) (95,700)

Priority: 1

Division: Department:

Infrastructure Utility Services

Title:

Wastewater Co-op Student Positions

New ON-GOING PRELIMINARY

Justification: This request is for the addition of two Co-op Student positions for wastewater. Co-op students have received education in wastewater treatment, collection and network activities and provide exceptional value in supporting utility operational and maintenance activities. Currently there are two Co-op positions for wastewater treatment, the additional four-month Co-op positions will provide wastewater collection, wastewater network and lift stations with additional support to help maintain current service levels during busy times.

Strategic Direction: 2023 2024 2025

Cost 37,500 37,500 37,500

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (37,500) (37,500) (37,500)

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2023 Operating Requests Preliminary Budget Summary - Wastewater Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Cat

* Sanitary-Storm Service Interconnects Policy Development

Total New

Department Priority 2 Total

Total Priority 2 Operating

Wastewater New

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ACTIVE LIVING & CULTURE

2023 FINANCIAL PLAN

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ACTIVE LIVING & CULTURE The Active Living & Culture (ALC) Division provides a leadership role in enriching the health and well-being of the community. Divisional focus areas include promoting healthy active lifestyles, building neighbourhood connections, supporting and developing an integrated sport system, enabling cultural vibrancy, encouraging a dynamic events community and addressing complex social issues. Recently, the division has undertaken a larger role in advancing the City of Kelowna’s commitment to Truth and Reconciliation and supporting the elevation of work related to creating an equitable, diverse and inclusive environment where all members of the community can thrive. The Division’s service delivery model involves direct provision, support & facilitation, and partnership development. Activities are delivered through the following departments: Administration & Business Services is responsible for divisional financial management processes and reporting; systems application and administration; business management, including supporting the development and maintenance of business plans and performance measurements; front line customer service and management of division-wide marketing and promotion. Community & Neighbourhood Services delivers programs throughout the community which engage, activate and connect people. This includes Strong Neighbourhoods, outlying area programs and the Parkinson Recreation Centre. The focus of this team is to reduce barriers to participation, animate spaces, and promote a healthy, active and inclusive community. Cultural Services provides programs and services to support cultural development in the community. This includes oversight of cultural policies and plans, organizing special events and convenings, maintaining healthy partnerships with cultural facility operators, community organizations and professional and emerging artists, administering grant programs and operating the Kelowna Community Theatre (KCT). Cultural Services works directly with other City departments on Truth and Reconciliation and transforming systems that create barriers to equitable, diverse and inclusive participation in our community. Social Development provides leadership to convene community groups, agencies and other levels of government to collectively address complex social issues. The main focus is to build capacity of multi-sector stakeholders to work within a collaborative framework which aligns plans, resources, and funding to maximize efforts to impact social issues. Social Development works with other levels of government and partners to utilize integrated data to drive decisions on priorities and to advocate for both system change and resources.

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Sport & Event Services provides strategic direction and organizational leadership to Kelowna’s sport and event sectors through the facilitation and provision of a wide variety of recreation, sport and special event initiatives. Key areas of focus include Sport for Life (S4L) promotion and implementation, event permitting, development and procurement, organizational development and facility operations.

Divisional Activities Community Safety • Continue strengthening the Block Connector program to enhance neighbourhood connections, safety and emergency preparedness Social & Inclusive • Develop and deepen relationships with groups and individuals in our community who have been systemically marginalized • Work collectively within the City to establish a framework for principled partnerships with syilx/Okanagan People • Responding to the Child Care Needs assessment and the federal/provincial priorities, complete a review of the City’s licensed child care operations to increase the sustainability and quality of the program. • Determine future commitment to funding, support and role in advancing the Journey Home Strategy to address homelessness • Continue to work with COJHS and partners to achieve integration of Homeless Serving System data to achieve system-wide, real-time data dashboard to inform investment decisions and continuous improvement • Work with Regional partners to continue to advocate for systems change to support Complex Care Housing and continue to participate in the work to design and implement the integration of community, health and housing services • Work with partners on the Outdoor Sheltering Strategy implementation of programs to improve health and safety of unsheltered persons, enhance health and social support coordination, and mitigate community impacts • Advance the youth-related action items from the Community Safety Plan through the creation of upstream programs and services for youth • Continue with enhanced governance and design work for the successful development of the Creative Hub/ Civic Plaza and ArtWalk at 350 Doyle • Advance discussions with School District No. 23 (SD23) towards a community-wide reciprocal use agreement which considers a broad range of both City and SD23 facilities with the objective of expanding facility use and reach into all areas of the City • Host youth forum on arts and culture that will provide opportunity for local youth to discuss challenges and opportunities for participation in the arts • Assess City-funded events (i.e. Kelowna Made, MMOB, Apple Triathlon, Fat Cat Children's Festival) and determine next steps for development & funding within a Civic-event framework Economic Resiliency • Review and update current policies and practice related to the contribution to facility-based and program reserve accounts funded through ALC fees and charges to ensure alignment with corporate financial strategies and best practice • Enhance value of PRC memberships to improve customer satisfaction and increase membership sales through the addition of fitness classes, workshops and expanded gymnasium drop-in programs Financial Management • Direct oversight and evaluation of the first full year of KCT Box Office operations and assessment of future possibilities for enhanced community service and revenue generating opportunities • Implement a digital first strategy for our Activity & Program Guide to replace our pre-COVID-19 hardcopy standard with a robust, easy-to-use, customer focused online solution

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•

CITY OF KELOWNA

Continue implementation of a new benefits-based approach model for ALC fees and charges to ensure that the associated infrastructure, maintenance and operating costs associated with the City’s recreation and cultural programs and services are fairly allocated to all customers Conduct a review of the Financial Assistance opportunities for recreation to reduce financial barriers, increase equity, accessibility and financial transparency

Clear Direction • Complete the Community Impact Report for Application Based Programs (years 2021-2022) • Review and revise the current facility-based Advisory Committee structure to reflect up-to-date practice with a continued focus on effective support and advocacy for Sport • Renew divisional performance measures to increase focus on outcomes versus outputs • Complete registration software updates to allow for online client account setup, multiple user fees functionality and reporting enhancements • Establish a long-term plan for use of the Capital Improvement Fee (CIF) at Kelowna Community Theatre People • Develop training opportunities, recruitment campaigns, employment incentives, celebrations and recognition programs to recruit, retain and improve the Recreation Contract Instructor program Base Business • Based on the provincially-endorsed Quality Sport (QS) framework, work with key stakeholders and local sport organizations to develop and implement a QS program in Kelowna • Continue advancement of Sport League/Program management software app and build-out a web-based microsite to support sport league marketing, promotions and enhanced customer service • Strive to advance new partnership opportunities while continually refining management of existing facility, operating and program agreements

Divisional Performance Measures 2021 Actual 89%

2022 Estimate 84%

2023 Forecast 90%

45,484

49,178

60,000

105

251

282

115

157

# of participants in City recreation programs

14,700

18,500

19,000

Investment in arts, culture & heritage by City of Kelowna per capita

$24.96

$22.12

$23.65

Attendance at KCT

9,800

62,000

80,000

n/a

Database in development

80%

% Satisfied with City-operated recreational & cultural facilities/programs (data from Citizen Survey) # of hours booked in sport and recreation facilities (arenas, sportsfield and stadiums) # of permitted outdoor events and tournaments on City-owned land # of individuals/organizations supported by application based grants

% of people experiencing homelessness in database designed to match individuals to housing and supports

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Budget Overview

Divisional summary Departmental operating cost centres ($ thousands): Active Living & Culture 159 Cultural Services 161 Community Theatre 164 Active Living & Culture 165 Recreation & Business Services 166 Sport & Event Services 167 Community & Neighbourhood Services Net operating expenditure Divisional capital cost centres ($ thousands): 309 Recreation Capital Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Actual 2021

Revised Preliminary Change from prior year 2022 2023

Per cent change

2,119 145 1,032 1,515 3,080 1,440 9,331

2,292 175 1,301 1,680 3,907 1,855 11,210

2,514 95 1,381 1,831 4,051 1,645 11,517

307

2.7%

0 0 9,331

0 0 11,210

0 0 11,517

0 307

0.0% 2.7%

9.7 47.1 8.0 64.8

10.0 60.9 9.0 79.9

10.0 63.7 9.5 83.2

3.3

4.1%

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(110) 124 369

(76)

Total 11,210

FTE 79.9

384 11,594

0.0 3.3 0.0 83.2

(76) 11,517

0.0 83.2

30 30

0.0 0.0

Note: Totals may not add due to rounding.

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Active Living & Culture - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 3,274) ( 829)

0 0 ( 4,813) ( 599)

0 0 ( 5,590) ( 185)

0 0 ( 866) _____________ ( 4,969)

0 0 ( 1,013) _____________ ( 6,425)

( 40) 0 ( 120) _____________ ( 5,935)

5,608 204 3,289 3,704 0 0 0

7,041 194 5,153 4,355 0 0 0

7,300 194 3,554 5,215 0 0 0

0 0 1,495 _____________ 14,300

0 0 892 _____________ 17,635

0 0 1,189 _____________ 17,452

9,331

11,210

11,517

0 0 _____________ 0 _____________ 9,331

0 0 _____________ 0 _____________ 11,210

0 0 _____________ 0 _____________ 11,517

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

0 OG

75,000

(75,000)

0 OT

Active Living & Culture Division Maintain 212 Community Development Coordinator - Outdoor Shelter Position 212 Future Adaptability and Sustainability Program 213 Peer Navigator Program

0 OG

3,600

(5,000)

1,400 OG

78,600

(75,000)

(5,000)

1,400

0 OG

40,000

(40,000)

0 OT

35,000

(35,000)

0 OT

75,000

(75,000)

75,000 OG

Total Growth

(75,000)

75,000

Division Priority 1 Total

78,600

(150,000)

(5,000)

76,400

Total Priority 1 Operating

78,600

(150,000)

(5,000)

76,400

339 CAP Kelowna Community Theatre Improvements Total Maintain Growth 213 Arenas & Stadiums Attendant Position 214 Community & Event Support Grant Increase Total Growth New 214 Journey Home Strategy Implementation Review 215 Engagement with Indigenous Communities Total New Growth 237 * Community Safety Plan Implementation Initiatives

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2023 Operating Request Details Priority: 1

Division: Department:

Active Living & Culture Active Living & Culture

Title:

Community Development Coordinator - Outdoor Shelter Position

Maintain ON-GOING PRELIMINARY

Justification: Current shelter demand exceeds capacity with many people sheltering outdoors. Due to a legal requirement to allow outdoor sheltering when shelter capacity is insufficient, a site is designated. A term position was funded in 2022-2024, to oversee designated outdoor sheltering/day use sites, sheltering strategy implementation, social support services coordination, and mitigation of community impacts. The City's ongoing leadership is crucial to support the level of coordination required. Budget is requested to transition this role to permanent to address recruitment/retention challenges. The budget impact is an addition of benefits for two years (2023/24) funded from a reallocation of $4k from existing operations (Kelowna Youth and Family Services budget) and funding a fulltime position from taxation starting in 2025. Strategic Direction: 2023 2024 2025

Cost 0 0 91,200

Social & inclusive - Homelessness is decreasing Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Priority: 1

Division: Department:

Active Living & Culture Active Living & Culture

Title:

Future Adaptability and Sustainability Program

Taxation 0 0 (91,200) Maintain ONE-TIME

PRELIMINARY

Justification: The Recovery & Future Sustainability Program supported 18 nonprofit organizations to build capacity by enhancing performance in foundational organization components over a one-year period. Post outcome evaluation demonstrated that all organizations improved their pre-assessment scores overall. Building on this success, budget is requested for a Future Adaptability & Sustainability Program to work directly with an additional 9-12 non-profit organizations, who continue to navigate the post COVID reality, through a similar program that explores sustainability with individualized organization assessments. Each organization will complete a sustainability plan and is provided a grant to begin their initiatives. The program will be available to non-profit organizations where similar provincial/federal funding is not available.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 75,000

Other - Extraordinary or Unforeseen Obligation Reserve (75,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Division: Department:

Active Living & Culture Community & Neighbourhood Services

Title:

Peer Navigator Program

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: Peer Navigators are people with lived experience who have been trained to support their peers by connecting them to services and healing in an approachable way. In 2021, Peers were employed at multiple locations including Parkinson Rec Centre (PRC). Originally, grant funding was secured and the program was facilitated by Urban Matters. Staff and the public benefitted from this program through training, understanding stigma and systemic challenges. Budget is requested to continue the program at PRC funded from a $59.2k reallocation of existing operations (Kelowna Youth and Family Services budget) to support the employment of one peer for 20 hours/week along with staff training, peer mentorship, cultural and employment supports.

Strategic Direction: 2023 2024 2025

Cost 0 0 0

Social & inclusive - Homelessness is decreasing Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 0

Priority: 1

Division: Department:

Active Living & Culture Sport & Event Services

Title:

Arenas & Stadiums Attendant Position

Growth ON-GOING PRELIMINARY

Justification: The demand for facility access/coverage, improved maintenance and enhanced service have dramatically increased. Further, the volume and complexity of programs, tournaments and special events within recreation facilities has continued to grow. As a result, the current staffing model has challenges in managing the increased demand for facility access, staff workload and public expectation. Budget is requested for a full-time position to provide greater consistency and flexibility for day-to-day operations and build capacity within the branch. Specifically, it will support the provision of: increased weekend coverage; greater access to Memorial Arena; enhanced service levels; and additional event support. The position will be partially funded from existing part-time wages budget. 2023 Base Budget:$41k Strategic Direction: 2023 2024 2025

Cost 0 40,700 40,700

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (40,700) (40,700)

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2023 Operating Request Details Priority: 1

Division: Department:

Active Living & Culture Cultural Services

Title:

Community & Event Support Grant Increase

Growth ON-GOING PRELIMINARY

Justification: Community development is a shared responsibility of government, private sector, non-profit sector and individuals, recognizing that financial support through grants can leverage additional support and enable the delivery of necessary services. Many current grant programs are oversubscribed and stretched to support the growing needs of the community. Budget is requested to increase annually, by the average BC CPI (not to exceed five per cent), the event support and community grant programs contained within the established focus areas (Community & Social Development, Arts, Culture & Heritage, Capacity Building & Community Sport Delivery). The first three years ($39.3K in 2023, $64.1K in 2024 and $81.1K in 2025) will be funded from a reallocation of funds from existing operations (Kelowna Youth and Family Services budget). Council Policy 380 & 381 will be amended. Strategic Direction: 2023 2024 2025

Cost 0 0 0

Financial management - Cost to deliver services is quantified Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 0

Priority: 1

Division: Department:

Active Living & Culture Active Living & Culture

Title:

Journey Home Strategy Implementation Review

New ONE-TIME PRELIMINARY

Justification: Through a Memorandum of Understanding (MOU) between the City and Central Okanagan Journey Home Society (COJHS), the Society assumes the responsibility for implementation of the Journey Home Strategy. Designed to accommodate the evolving nature of COJHS, as they work to increase their capacity, the MOU includes a framework for working collaboratively, describes partner's roles/expectations, and outlines City's 2019-2023 financial commitments. For the Society's first two years of operation the City contribution was $150K annually, and increased to $250K for the remaining 3 years of the Strategy implementation. With no City commitment beyond the end of 2023, this request is for funding to conduct a review which will include recommendations regarding ongoing implementation of the Strategy along with City commitment beyond 2023.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 40,000

Social & inclusive - Homelessness is decreasing Reserve (40,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Priority: 1

Division: Department:

Active Living & Culture Cultural Services

Title:

Engagement with Indigenous Communities

New ONE-TIME PRELIMINARY

Justification: Multiple City-led projects would benefit from principled engagement with Indigenous Communities. As stated within the OCP Policy 9.2.2 we are committed to "collaborate with syilx/Okanagan people…in a way that recognizes the traditions, knowledge, wisdom and governance of syilx people." Under the ongoing guidance of a consultant from the syilx/Okanagan community, this project will utilize direction from appropriate Indigenous leaders to meaningfully engage with the Indigenous People on a variety of community level planning projects. Additionally, the project will work to build capacity through process development and institutional learning that will support ongoing engagement practices that are fair, equitable and appropriate. Budget is requested to implement the engagement process. Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 35,000

Social & inclusive - Inclusivity and diversity are increasing Reserve (35,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

30,000

(30,000) OG

Total Growth

30,000

(30,000)

Department Priority 2 Total

30,000

(30,000)

Total Priority 2 Operating

30,000

(30,000)

Active Living & Culture Growth Social Development Working Funds

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CORPORATE & PROTECTIVE SERVICES CORPORATE SERVICES

2023 FINANCIAL PLAN

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CORPORATE & PROTECTIVE SERVICES CORPORATE SERVICES Whether ensuring that the City attracts, retains and develops the best quality public servants or building corporate and community capacity through knowledgeable management strategies, the end goal of this division is to help improve organizational performance and provide superior services to staff and citizens. The Corporate Human Resources department develops and implements corporate wide human resources systems, programs, processes and best practices that make the City a leading employer in the community. Within this department, Human Resources Programs and Systems develops and maintains corporate-wide talent management programs. From learning and development programs to succession planning, this branch is building a high performing, accountable workforce committed to the City’s vision. Key initiatives include; employee training, leadership and career development programs, the provision of performance management programs, and employee engagement initiatives. The branch also manages system and HR corporate projects, employee community involvement and recognition programs. The Employee Wellness and Total Compensation branch is responsible for total compensation, benefit administration, disability management and return to work programs, as well as other employee support programs such as the Employee and Family Assistance and Wellness programs. The Human Resources Services team is the primary day to day contact for all HR matters and provides HR services including; recruitment & selection, performance management, employee & labour relations, employee engagement, workforce planning and various other HR enquiries. All City teams have an HR Business Partner assigned to them. Risk Management is responsible for the development, implementation, and administration of the City’s risk management and security programs. This branch leads the City’s work to minimize losses and reduce hazards within the community through prevention programs, insurance and integrated risk management. The unit is an integral part of the City’s security, maintaining a secure environment for staff, public and assets, including the oversight of security cameras. The Safety Department is responsible for development and implementation of the corporate Safety program, Safety 8. The team coaches all levels of the organization regarding meeting regulated safety requirements, workplace inspections, risk assessments, safe work procedures, training, incident and near miss reporting. The overall purpose of the Safety 8 framework is to proactively reduce workplace incidents and injuries.

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Divisional Activities Social & Inclusive • Operationalize the 4-year Diversity, Equity and Inclusion strategic plan • Research and identify Truth and Reconciliation training opportunities for staff Economic Resiliency • Expand business continuity plans for essential services such as: roadways, water and wastewater, to enhance community resiliency during emergencies Financial Management • Complete Certificate of Recognition Audit through the BC Municipal Safety Association • Reduce exposure to financial loss due to accidents, natural disaster, acts of aggression and the growing threat of cyber crime by maintaining and adapting insurance programs Clear Direction • To be more innovative, continue to leverage technology and improve processes throught the Safety Management software and the Learning Management system • Use enterprise risk management to support strategic decision making, enhance public safety and promote innovation People • Develop new efficiencies through a Disability Management Process Review • Implement a Mental health workplace program • Implement departmental safety training matrices to ensure all staff receive necessary safety training, especially for employees doing high risk work, and conduct reviews as needed • Protect City staff and physical assets through the use of security services and technology Base Business • Corporate action plan to improve ground disturbance (excavation) and electrical safety record • Launch departmental health and safety action plans • Manage annual Corporate Training programs including online training for staff

Departmental Performance Measures # of third-party claim/incidents managed

2021 Actual 189

2022 Estimate 150

2023 Forecast 140

Cost of risk / capita ($)

12.98

13.49

14.03

2.22%

2.35%

2.40%

# of reported safety incidents

107

111

105

# of facility inspections

# of job site safety inspections

# of average work days lost (illness and injury)

# of vacant positions filled

420

470

450

Time to fill external job postings (average number of days)

10.3%

# of WorkSafe claims processed Merit rating discount for WCB claims (%)

Staff turnover – full time (%)

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# of employees participating in corporate training

418

1,472

620

# of Service Awards presented

279

350

Revised Preliminary Change from 2022 2023 prior year

Per cent change

Budget Overview

Departmental summary Actual 2021 Departmental operating cost centres ($ thousands): Corporate & Protective Services 139 Corporate & Protective Services Corporate HR 140 HR Health, Safety & Labour 143 HR Programs & Systems 249 Compensation and Benefits HR Services 141 HR Services & EE Relations Risk Management 132 Risk Management Safety 282 Safety Net operating expenditures

338 338

387 387

1,130 1,130

743

192.2%

595 569 649 1,813

148 556 604 1,309

148 565 673 1,387

5.9%

834 834

963 963

969 969

0.6%

2,341 2,341

3,172 3,172

3,593 3,593

421

13.3%

0 0 5,327

504 504 6,334

506 506 7,585

2 1,250

0.4% 19.7%

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Continued Divisional capital cost centres ($ thousands): Net capital expenditures Total departmental net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

0 5,327

0 6,334

0 7,585

0 1,250

0.0% 19.7%

22.2 5.6 2.6 30.4

21.5 2.5 2.0 26.0

22.4 2.5 3.3 28.2

2.2

8.5%

Total 6,334

FTE 26.0

439 6,773

0.0 1.3 0.4 27.7

812 7,585

0.5 28.2

0 0

0.0 0.0

0 48 391

812

Note: Totals may not add due to rounding.

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Corporate & Protective Services Corporate Services - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 411) ( 63)

0 0 ( 61) ( 283)

0 0 ( 61) ( 326)

0 0 ( 613) _____________ ( 1,088)

0 0 ( 551) _____________ ( 895)

0 0 ( 260) _____________ ( 647)

3,076 7 2,506 415 0 0 22

2,926 1 3,131 1,172 0 0 0

3,100 1 3,032 1,353 0 0 0

0 0 389 _____________ 6,414

0 0 0 _____________ 7,229

0 0 745 _____________ 8,231

5,327

6,334

7,585

0 0 _____________ 0 _____________ 5,327

0 0 _____________ 0 _____________ 6,334

0 0 _____________ 0 _____________ 7,585

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

55,000

(30,000)

(25,000) OG

55,000

(30,000)

(25,000)

225 HR Coordinator Position

41,300

(41,300) OG

226 Diversity, Equity and Inclusion Action Items 226 Professional Consulting for Health & Wellness Strategies 283 * Public Safety Levy

40,000

(40,000)

0 OT

35,000

(35,000)

0 OG

745,320

(745,320) OG

861,620

(75,000)

(786,620)

916,620

(105,000)

(811,620)

916,620

(105,000)

(811,620)

Corporate & Protective Services Division Corporate Services Maintain 225 Security - Additional Patrols Total Maintain New

Total New

Department Priority 1 Total

Total Priority 1 Operating

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2023 Operating Request Details Division: Department:

Corporate & Protective Services Risk Management

Title:

Security - Additional Patrols

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: Incident trends of crime occurring against City property late at night such as break and enters, vandalism, graffiti and inappropriate use of public space past closure times in parks and parkades are resulting in significant costs associated with losses and damage. This request is for an additional security personnel to provide late night patrols and rapid response to suspicious activity to deter and prevent crime against City assets. 2023 Base Budget: $869k

Strategic Direction: 2023 2024 2025

Cost 55,000 55,000 55,000

Community Safety - Residents feel safe Reserve (30,000) (30,000) (30,000)

Borrow 0 0 0

Division: Department:

Corporate & Protective Services Corporate HR Department

Title:

HR Coordinator Position

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (25,000) (25,000) (25,000)

Priority: 1

New ON-GOING PRELIMINARY

Justification: Budget is requested for a Human Resources (HR) Coordinator position. The sole HR Coordinator is identified as a critical position as this employee is responsible for the accurate and timely review and data entry of all pay, benefits, and pension related information, as well as the direct liaison with the Recruitment and Payroll teams.

Strategic Direction: 2023 2024 2025

Cost 41,300 81,900 81,900

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (41,300) (81,900) (81,900)

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2023 Operating Request Details Priority: 1

Division: Department:

Corporate & Protective Services Corporate HR Department

Title:

Diversity, Equity and Inclusion Action Items

New ONE-TIME PRELIMINARY

Justification: Building a Diversity, Equity & Inclusive (DEI) Strategic Plan was a primary component of the Human Resources (HR) Division's 5-Year Strategic Plan. The City of Kelowna is committed to encouraging individuals from a variety of experiences and education levels to apply for vacancies in order to fully represent the community. Funding will be used to hire a consultant to create DEI specific criteria to support decision-making around recruitment and career development processes, update key HR policies to operationalize DEI strategic action plans, support the development of a communication plan, as well as train leaders on how to lead with a DEI lens.

Expected Completion: Dec 2023 Strategic Direction: 2023

Cost 40,000

People - Ability to attract, select & retain talent Reserve (40,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

Priority: 1

Division: Department:

Corporate & Protective Services Corporate HR Department

Title:

Professional Consulting for Health & Wellness Strategies

New ON-GOING PRELIMINARY

Justification: Budget is requested for professional consulting to support health and wellness strategies. With a continued increase in mental health absences and the need to support first responders, budget is requested for an external consultant to conduct a review of current health and wellness services, provide a gap analysis, and support the implementation of recommended initiatives. By increasing supports and initiatives for mental health and wellness, this consulting initiative will align with WorkSafeBC's mandate of ensuring the health and safety of all workers. In turn, claims and risk will decrease while mental health and wellness awareness will increase. This would be conducted in four phases over two years (2023-2024).

Expected Completion: Dec 2024 Strategic Direction: 2023 2024 2025

Cost 35,000 39,000 0

People - Staff engagement has increased Reserve (35,000) (39,000) 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 0

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CORPORATE & PROTECTIVE SERVICES COMMUNITY SAFETY

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CORPORATE & PROTECTIVE SERVICES COMMUNITY SAFETY The Community Safety Department provides strategic and operational leadership to preserve and enhance safety – and sense of safety – in our community. Composed of Police Services, Bylaw Services and Community Safety, the Department strives to efficiently and effectively deliver preventative programs and reactive responses and to enable frontline police personnel through professional support. As a convener of community / governmental partners and stakeholders who are integral to community safety, the Department also aims to drive collaborative and multi-disciplinary strategies to reduce criminality, crime and victimization. Together, the team serves proudly as it delivers a balanced approach of education, prevention, intervention and enforcement for all who live, work and play in Kelowna. Community Safety Services leads efforts to enhance communtiy well-being and safety for all through leadership, education, engagement, coordination and collaboration. With an increasing focus on research, innovation and evidence-based approaches, the Branch works to reduce the impacts of social issues in our community while leading multi-disciplinary preventative initiatives (i.e., Community Safety Plan) to reduce criminality and victimization. Bylaw Services affects education and compliance to foster a predictable and respectful community for all citizens. Bylaw Services includes a General Duty Section to investigate complaints, a Community Response Unit providing visibility and response with partnering agencies for priority areas and issues, and during summer months, a supplementary Bicycle / Utility Task Vehicle (UTV) Patrol Section. Through a principle-based model of compassionate enforcement, and fair but firm compliance-driven practices, Bylaw Services staff work to enhance the safety of visitors and residents, alike. Police Services, comprised of more than 95 permanent municipal staff, provides 24/7 operational support services to the Royal Canadian Mounted Police (RCMP) to ensure public safety in our community. Services include information management, frontline supports, facility operations, quality assurance and all other administrative facets necessary for effective, efficient, and responsive policing in Kelowna.

Departmental Activities Community Safety • Implement a Community Safety Plan of upstream strategies and actionable initiatives through continued coordination of key systems as well as engagement and collaboration with community stakeholders • Enhance coordination and collaboration among security, compliance and enforcement agencies as part of a “safety and security continuum”

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• • • • • •

CITY OF KELOWNA

Implement recommended changes arising from the 2021 Bylaw Services Operational Review Continue to implement recommended changes arising from the 2019 Review of Police Services with a focus on resourcing, efficiency, effectiveness, performance measurement and monitoring Complete the implementation of recommended changes arising from the 2020 Crime Prevention Review with a focus on evidence-based initiatives that address identified priority issues in our community Develop and implement initiatives to address issues uncovered in the 2021 Public Safety and Crime Survey Advance longer-term evidence-based initiatives to appropriately address upstream demands on police Based on data, enhance enforcment visibility, proactivity and responsiveness in priority areas (i.e., business districts)

Social & Inclusive • Continue to support a multi-agency effort to enable successful inclusion of housing with supports Financial Management • Develop and implement a quarterly RCMP contract performance dashboard • Optimize efficiency and effectiveness of support services for Police Services Clear Direction •

Further develop performance metrics for the Community Safety Department and its branches to drive actions and deliver impactful and meaningful results

People • Increase individual and departmental capacity through targeted engagement strategies and enhanced training / professional and leadership development

Departmental Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

N/A

81%

N/A

15,564

16,030

16,512

Average number of days to close a Bylaws Service Request

7.5

4.1

3.5

# of files actioned by the Property Standards Compliance Team

Citizen satisfaction on delivery of Bylaw Services (Citizen Survey)

N/A

77%

N/A

Citizen satisfaction on delivery of Police Services (citizen survey)

N/A

74%

N/A

Crime Severity Index (overall ranking of 35 Census Metropolitan Areas)

4th

8.2 mins

8.0 mins

Community Safety / Crime Prevention Overall sense of safety (citizen survey) Bylaw Services # of Bylaw Service Requests generated annually

Police Services

Response time to priority one calls

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Budget Overview

Departmental summary Actual 2021 Departmental operating cost centres ($ thousands): Community Safety 115 Community Safety Bylaw Services 150 Bylaw Services Crime Prevention 251 Community Safety Services Police Services 111 Police Services 112 Police Client Services 113 Police Quality Assurance 114 Police Facility Operations 272 Police Information Management 288 Police Services Watch Support 291 Police Investigative Services 292 Police Services Operations Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total departmental net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Revised Preliminary Change from 2022 2023 prior year

Per cent change

341 341

686 686

361 361

(325)

(47.4%)

2,812 2,812

2,924 2,924

3,140 3,140

217

7.4%

847 847

900 900

927 927

2.9%

31,487 2,762 1,286 707 1,463 1,229 0 0 38,935 42,935

38,004 3,200 1,529 1,022 1,857 1,433 0 0 47,046 51,556

38,800 2,074 1,530 1,033 1,949 2,595 48 43 48,072 52,499

1,026 943

2.2% 1.8%

0 0 42,935

0 0 51,556

0 0 52,499

0 943

0.0% 1.8%

22.3 30.5 62.3 115.1

26.5 28.3 76.5 131.3

27.5 27.9 80.0 135.4

4.1

3.1%

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(252) 1,205 (725)

715

Total 51,556

FTE 131.3

228 51,784

(1.6) 2.7 0.0 132.4

715 52,499

3.0 135.4

718 718

3.4 3.4

Note: Totals may not add due to rounding.

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Corporate & Protective Services Community Safety - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 718) ( 4,062)

0 0 ( 886) ( 6,682)

0 0 ( 934) ( 5,801)

( 19) 0 ( 2,599) _____________ ( 7,397)

0 0 ( 9,225) _____________ ( 16,793)

( 300) 0 0 _____________ ( 7,036)

10,387 179 1,407 37,860 0 0 0

11,207 171 3,502 53,469 0 0 0

11,349 148 1,265 46,773 0 0 0

340 0 159 _____________ 50,332

0 0 0 _____________ 68,349

0 0 0 _____________ 59,535

42,935

51,556

52,499

0 0 _____________ 0 _____________ 42,935

0 0 _____________ 0 _____________ 51,556

0 0 _____________ 0 _____________ 52,499

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

46,000

(46,000) OG

46,500

(46,500) OG

65,900

(65,900) OG

300,000

(300,000)

0 OG

75,000

(75,000) OG

533,400

(300,000)

(233,400)

0 OG

481,680

(481,680) OG

481,680

(481,680)

Department Priority 1 Total

1,015,080

(300,000)

(715,080)

Total Priority 1 Operating

1,015,080

(300,000)

(715,080)

Corporate & Protective Services Division Community Safety Growth 235 Community Safety Advisor Position 235 Police Services - Administrative Assistant Position 236 Bylaw Services - Part-time Positions and Overtime 236 Outdoor Overnight Sheltering 237 Community Safety Plan Implementation Initiatives Total Growth New 237 Police Services - Digital Extraction Technician Position 283 * Public Safety Levy Total New

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2023 Operating Request Details Division: Department:

Corporate & Protective Services Community Safety

Title:

Community Safety Advisor Position

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: A Community Safety Advisor position is requested to ensure the Branch remains highly responsive and sustains current service delivery as it relates to addressing safety and sense of safety concerns raised by citizens/businesses and community partners. The position seeks to fulfill the City's obligation to provide leadership and secretariat support for the 5-year, multi-sectoral Community Safety Plan (CSP). Specifically, the position will lead efforts to establish inclusive, collaborative Action Teams, ensuring community-based participation and subject matter expertise is focused on areas where implementation occurs. Supported by the Community Safety Services Manager, the proposed position will play a key role in monitoring and evaluating CSP Actions and in the preparation of formal progress report/s annually for public presentation. Strategic Direction: 2023 2024 2025

Cost 46,000 90,700 90,700

Community Safety - Residents feel safe Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (46,000) (90,700) (90,700)

Priority: 1

Division: Department:

Corporate & Protective Services Community Safety

Title:

Police Services - Administrative Assistant Position

Growth ON-GOING PRELIMINARY

Justification: Within the Kelowna RCMP Detachment, the Operations Officer (OO) and the Investigative Service Officer (ISO) are tasked with overseeing over 200 Frontline and investigative services members with a focus on strategic change, continuous improvement, and the development of new initiatives to further align Council's community safety priorities with the RCMP's 2021-24 Strategic Plan. Kelowna RCMP responded to approximately 64,000 service calls in 2021, all attended by frontline members. Budget is requested for one additional Police Services Administrative Assistant to facilitate and manage the daily administration duties of the OO and ISO to help to improve efficiency and operation allowing for focus on strategic goals. The need for administrative support to the OO and ISO arose from the implementation of the 2019 Griffiths' Report. Strategic Direction: 2023 2024 2025

Cost 46,500 82,500 82,500

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (46,500) (82,500) (82,500)

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2023 Operating Request Details Priority: 1

Division: Department:

Corporate & Protective Services Community Safety

Title:

Bylaw Services - Part-time Positions and Overtime

Growth ON-GOING PRELIMINARY

Justification: Requested funding will enable increased uniformed Bylaw presence (two additional Officers) throughout all City parks and public spaces, in coordination with RCMP, during 12 peak summer weekends. Further, approval of funding will enable Bylaw Services to meet essential and increased Officer training needs (ie: officer safety and wellness, legal, and other relating to social issues) throughout the year; something that is operationally challenging given the 7-day per week, frontline / operational nature of their work for which overtime is often required to overcome. 2023 Base Budget: $225k

Strategic Direction: 2023 2024 2025

Cost 65,900 65,900 65,900

Community Safety - Residents feel safe Reserve 0 0 0

Borrow 0 0 0

Division: Department:

Corporate & Protective Services Community Safety

Title:

Outdoor Overnight Sheltering

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (65,900) (65,900) (65,900)

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: In 2021, Council approved funding for overnight sheltering as a two year program. Ongoing funding, from reserve for 2023, is requested to mediate the impacts of outdoor sheltering. Due to the City's ongoing legal obligation to not prohibit overnight sheltering in public spaces for people unhoused, maintaining cleaning/sanitation, security, and basic services at the designated overnight sheltering site is necessary for health, safety and security. Additionally, funding will enable ongoing identification, prevention (ie: Crime Prevention Through Environmental Design (CPTED)), intervention and remediation (ie: disposal of abandoned materials) of an increasing number of dispersed, temporary, overnight sheltering locations throughout the city.

Strategic Direction: 2023 2024 2025

Cost 300,000 300,000 300,000

Other - Extraordinary or Unforeseen Obligation Reserve (300,000) 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (300,000) (300,000)

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2023 Operating Request Details Priority: 1

Division: Department:

Corporate & Protective Services Community Safety

Title:

Community Safety Plan Implementation Initiatives

Growth ON-GOING PRELIMINARY

Justification: This request is for professional and consulting services and seed funding to leverage partnerships and community engagement which is necessary to support implementation of the Community Safety Plan (CSP) and its 30 Action Projects. City Council directed the development and implementation of a CSP to bring a more comprehensive, partnership-based and prevention focused approach to community safety. Kelowna's CSP was finalized and presented as a five-year action plan in spring 2022. Implementation of initial projects is now underway. Funding is requested for two years through a funding reallocation of $75k from existing operations (Kelowna Youth and Family Services budget).

Strategic Direction: 2023 2024 2025

Cost 0 0 0

Community Safety - Residents feel safe Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 0

Priority: 1

Division: Department:

Corporate & Protective Services Community Safety

Title:

Police Services - Digital Extraction Technician Position

New ON-GOING PRELIMINARY

Justification: Kelowna RCMP continues to experience an increase in digital device examinations as part of police investigations and for evidentiary purposes in child pornography, drugs, robberies, homicides and attempted murder files. Currently, RCMP Members are working overtime and outsourcing the examination to third party contractors at a significant cost. If approved, this municipal position would augment a dedicated police officer (funded in Budget 2022) to form a twoperson unit, marking a progressive step in the direction to combat criminal activity in Kelowna. The cost has been reduced by the expected decrease in third-party contractor expenses of $51.9k in 2023 and $70k in 2024, ongoing.

Strategic Direction: 2023 2024 2025

Cost 0 23,800 23,800

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (23,800) (23,800)

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

58,600

(58,600) OG

Total Growth

58,600

(58,600)

Designated Outdoor Sheltering Site - Personal Storage Police Services - Casual Positions

67,500

(67,500) OG

62,900

(62,900) OG

RCMP Regular Members (6)

333,800

(333,800) OG

Police Services - Watch Coordinators (4) Positions

195,300

(195,300) OG

Total New

659,500

(659,500)

Division Priority 2 Total

718,100

(718,100)

Total Priority 2 Operating

718,100

(718,100)

Corporate & Protective Services Division Community Safety Growth Bylaw Services - Operations Supervisor Position

New

Page 238

CORPORATE & PROTECTIVE SERVICES FIRE DEPARTMENT

2023 FINANCIAL PLAN

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CORPORATE & PROTECTIVE SERVICES FIRE DEPARTMENT The goal of the Kelowna Fire Department (KFD) is to provide effective fire protection and public safety services to all areas of the City of Kelowna. This includes fire suppression and rescue, fire prevention, fire safety inspections, fire training, first medical responses, hazardous material response, specialty rescue, pre-incident planning, dispatch and emergency management. The Kelowna Fire Department operates from seven fire stations located strategically throughout the City. Each has a full compliment of modern, up-to-date vehicles and equipment. There are 140 full time personnel and 46 paid-on-call volunteers. Communications & Emergency Program provides fire dispatch services to over 70 fire departments from Vernon, the Regional Districts of Central Okanagan, Okanagan Similkameen, Kootenay Boundary, and East Kootenay. This branch also administers the Emergency Program for Central Okanagan, activated to support any community requiring support for major incidents. In 2021, the Emergency Operating Centre (EOC) was open extensively to support incidents in Kelowna, West Kelowna and the Regional District of Central Okanagan (RDCO) communities impacted by the White Rock Lake Fire. Additionally, the Emergency Support Services (ESS) Reception Centre supported evacuees from across BC. Fire Operations is responsible for fire suppression, first medical response, auto extrication, technical rescue (low embankment, high angle, tower crane, ice rescue, swift water rescue, confined space rescue, and marine rescue) and hazmat response. The Operations branch is staffed 24/7 with five four-person engine companies and one two-person squad operating from five career stations, providing 24/7 coverage for the City. Our career staff are supported by two paid-on-call stations (East Kelowna and McKinley), as well as paid-on-call members continuing to support the Glenmore Fire Hall. Training & Fire Prevention provides fire inspection services, fire investigations and enforcement of the Fire Services Act and the BC Fire Code. They also provide numerous public education opportunities, working with local schools and community groups through the year. The Training Branch ensures all members of KFD meet required standards, building capacity for all members from recruit training up to our Fire Officer program.

Departmental Activities Community Safety • Continue to evolve specialized training in areas such as interface wildfire • Working towards implementation of NG911 in our Dispatch Centre Social & Inclusive • Continue to implement best practices in recruitment and retention relating to Diversity, Equity and Inclusion, reducing barriers for those considering a career in the fire service Vibrant Neighbourhoods • Integrating public safety initiatives with existing and new neighbourhoods through programs such as FireSmart

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Financial Management • Development of long term financial planning, balancing capital and operational requirements • Review of Fire Dispatch financials and development of a long term business plan Clear Direction • Complete a review of available data to develop robust metrics in all areas of the organization • Development of a Fire Master Plan People • Continued work on development of healthy workplace initiatives focusing on the physical and mental well being of all staff • Focus on staff that support the Emergency Program and Regional Emergency Operations Centre to ensure a robust program remains to provide the highest level of support to our community and the communities around us.

Departmental Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

# of incidents handled by Fire Dispatch – all customers

39,374

42,524

46,000

# of incidents responded to by KFD # of inspections completed

10,790 5,113

13,668 4,500

15,308 5,200

Budget Overview

Departmental summary Departmental operating cost centres ($ thousands): Fire Department 133 Fire Department 134 Fire Operations 135 Fire Communications & Emergency Mgmt 136 EOC Operations & Hydrants

Actual 2021

Revised Preliminary Change from 2022 2023 prior year

309 18,537 254 99

273 19,536 357 0

Per cent change

275 20,205 355 0

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2023 FINANCIAL PLAN

Continued 137 Fire Admin, Training & Fire Prevention Net operating expenditure Divisional capital cost centres ($ thousands): 311 Fire Capital Net capital expenditures Total departmental net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

CITY OF KELOWNA

1,675 20,874

1,755 21,920

1,754 22,588

668

3.0%

0 0 20,874

0 0 21,920

0 0 22,588

0 668

0.0% 3.0%

4.7 1.9 144.1 150.7

5.2 1.8 140.0 147.0

6.0 1.8 142.0 149.8

2.8

1.9%

Total 21,920

FTE 147.0

224 22,144

0.0 0.8 0.0 147.8

444 22,588

2.0 149.8

0 0

0.0 0.0

0 150 74

444

Note: Totals may not add due to rounding.

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Corporate & Protective Services Fire Department - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 3,360) ( 302)

0 0 ( 2,666) ( 415)

0 0 ( 2,761) ( 437)

0 0 ( 160) _____________ ( 3,822)

0 0 ( 182) _____________ ( 3,263)

0 0 ( 150) _____________ ( 3,347)

21,481 160 1,335 165 0 0 17

21,957 177 1,417 248 0 0 16

22,259 177 1,549 201 0 0 16

992 0 546 _____________ 24,696

900 0 469 _____________ 25,183

1,255 0 480 _____________ 25,936

20,874

21,920

22,588

1,089 ( 1,089) _____________ 0 _____________ 20,874

3,986 ( 3,986) _____________ 0 _____________ 21,920

312 ( 312) _____________ 0 _____________ 22,588

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

246 Kelowna Fire Department Master Plan

150,000

(150,000)

0 OT

Total Growth

150,000

(150,000)

239,000

205,000

(444,000) OG

239,000

205,000

(444,000)

Department Priority 1 Total

389,000

55,000

(444,000)

Total Priority 1 Operating

389,000

55,000

(444,000)

Corporate & Protective Services Division Fire Department Growth

New 283 * Public Safety Levy Total New

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2023 Operating Request Details Division: Department:

Corporate & Protective Services Fire Department

Title:

Kelowna Fire Department Master Plan

Priority: 1

Growth ONE-TIME PRELIMINARY

Justification: Budget is requested to develop a comprehensive Master Plan for the Kelowna Fire Department (KFD), which will support the KFD Strategic Plan and build towards a comprehensive set of metrics to manage growth. A KFD Master Plan reviews all aspect of the fire department, providing comparisons to comparable communities and relevant standards. Using comprehensive data and analysis, it provides a benchmark for the department to build for the future. The Master Plan will provide information used to evaluate the long-term staffing plan on a continuous basis.

Expected Completion: Nov 2023 Strategic Direction: 2023

Cost 150,000

Vibrant neighbourhoods - Key sites are proactively planned Reserve (150,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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CORPORATE STRATEGIC SERVICES

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CORPORATE STRATEGIC SERVICES The Corporate Strategic Services Division provides citizens and staff with convenient, accurate and timely access to City services and information. Information Services (I.S.) provides direction, support and maintenance of the City’s information systems and technology infrastructure. Today, technology is a key driver in the delivery of customer service, economic development and communications. This department strategically considers technology options that reduce costs, improve revenue streams, build efficiency and deliver better overall service. Corporate Strategy & Performance (CSP) helps staff envision, plan, deliver and measure progress towards results that are important to our community. CSP provides internal advisory services and facilitates the process to set corporate level strategy (Council and Corporate priorities), monitor strategies and key projects (Strategy Blocks, Action Plan) and track and improve performance (annual progress report on Council and Corporate priorities, reporting on performance of base business and services). Communications provides strategic communications planning to inform, consult, involve, collaborate and empower internal and external stakeholders. Using an audience-centered model, Communications aims to support major City projects and provide accurate and timely information to citizens and staff through research, branding standards, media relations, crisis communications, development and maintenance of print and electronic communications channels, corporate advertising and public engagement programs. Media Relations supports the City of Kelowna’s goal to be open with the media and to be respected and valued by our citizens. The Media Relations department works directly with the media and also provides support for those who are designated spokespeople for the City.

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Divisional Activities Community Safety • Continue to bring data together to provide information on community safety • Provide the community with regular information, in a variety of media formats, to demonstrate the measures taken by the City to address citizens’ concerns Social & Inclusive • Ongoing strategic guidance and participation in groups like the Community Inclusion Team and the Social Development Committee • Provide the community with regular information, in a variety of media formats, to demonstrate the measures taken by the City to address citizens’ concerns regarding social wellness and inclusivity Transportation & Mobility • Use emerging technologies, such as Light Detection and Ranging (LiDAR) and Big Data, to better understand transportation and mobility • Support the transition of the Transportation Master Plan to a digital-first format to create a better user experience for citizens Vibrant Neighbourhoods • Progress and add additional data to Model City, to better understand how changes to the City will look in the future • Support on-going Official Community Plan (OCP) engagement and the transition of the OCP to be a digital-first document to create a better experience for citizens Economic Resiliency • Collaboratively build a framework for the implementation of 5G Environmental Protection • Shift services to Cloud Providers which will help reach environmental goals by reducing the need for building resources • Enable a more mobile workforce, reducing our carbon emissions Financial Management • Begin moving to a consumption-based model for technology infrastructure, by transitioning services to cloudbased technologies allowing accrual of costs based on exact usage (utility model) • Monitor and review time tracking data to ensure efficiencies and strategic alignment on project and operational tasks • Implement a Cyber Security Strategy to provide a clear roadmap to protecting the City’s digital assets • Develop a strategy for Digital Business Transformation to fully understand the effort and resources required to shift to a digtal first delivery model • Implement Data Governance to empower staff to use data for decision making while ensuring the quality of the data • Further enhance AI powered chatbots on both the City and Airport’s websites to provide more information to our citizens 24/7 in the face of increased citizen need for information around operations • Provide the community with regular information, in a variety of media formats, to make the annual budget process transparent and accessible – this includes relatable storytelling on the budget, annual report and property taxes • Explore opportunities to increase the practice of multi-year operational budgeting and forecasting across the organization, in collaboration with the Finance Department Clear Direction • Implement a more consistent approach to the use and reporting of base business and service performance measures across the organization

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• •

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Implement strategy management software to provide more visibility into the organization’s plans, work in progress and performance measures Develop and communicate Council & Corporate priorities for the 2023 – 2026 Council term to inform prioritization of resources and budget

People • Progress with updating legacy applications and shifting services to the cloud to support a seamless experience for staff, regardless of location, engage staff and train with technology to ensure growth in digital literacy • Provide training and development opportunities for staff o Topics for 2023 will include diversity and inclusion, leadership, position-related technology skills • Continued support for the implementation of a hybrid workforce within the Division and sustaining high levels of engagement across the Division • Internal communications to support various corporate initiatives Base Business • Develop resources and explore the use of technology to enhance the end-to-end customer experience for residents, businesses and visitors • Improve online notification service based on user feedback and involvement • Redevelopment of the City’s service request system to improve the customer experience through agile methodology and customer centricity • Update tools for internal and external communication including moving Kelowna.ca to cloud-hosting environments, replacing the intranet and the email marketing systems • Improve the user experiences and interactions with the City in online environments • Emergency Operating Centre (EOC) Activation support • Create engagement and communications plans for infrastructure investments, major projects and programs undertaken by the City • Create and curate content for all City-owned communications channels including the City’s website, social media and podcast

Divisional Performance Measures 2021 Actual Information Services Net Promoter Score (NPS). NPS helps us measure the quality and experience of the services IS offers. Growth in City-owned channels; both in terms of use and engagement Website users: Website pageviews: Getinvolved registered users: Social Media users: Social media engagement Social inbound messages: Email subscribers: % survey respondents that indicate CSP services are increasing the respondent’s ability to make well-reasoned decisions Airport and City Chatbot interactions stats. Heavy focus on COVID and services.

2022 Estimate

2023 Forecast

8.9/10

9/10

9.5/10

1.8M 5.5M 3,600 88K 485K 10K 60K

1.9M 5.6M 4,500 97K 533K 10K 66K

2M 5.7M 6,000 105K 580K 10K 72K

84%

85%

90%

1,700 (interactions)

3,500 (interactions)

4,500 (interactions)

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Budget Overview

Divisional summary Actual 2021 Divisional operating cost centres ($ thousands): Corporate Strategic Services 101 Corporate Strategic Services Information Services 121 Information Services Community Communications 248 Communications 260 Community Communications Media Relations 229 Media Relations Corporate Strategy & Performance 154 Corporate Strategy & Performance Net operating expenditure Divisional capital cost centres ($ thousands): 308 Information Services Capital Net capital expenditures

Revised Preliminary Change from 2022 2023 prior year

Per cent change

332 332

367 367

0.0%

6,083 6,083

6,946 6,946

7,647 7,647

701

10.1%

460 601 1,062

557 693 1,250

592 693 1,285

2.8%

255 255

262 262

264 264

0.8%

506 506 8,238

576 576 9,401

615 615 10,178

39 777

6.7% 8.3%

555 555

503 503

785 785

282

56.0%

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Continued Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

8,793

9,905

10,963

1,059

10.7%

16.9 1.3 34.1 52.3

18.5 0.1 32.8 51.4

19.0 0.8 33.8 53.6

2.2

4.3%

Total 9,401

FTE 51.4

445 9,846

0.0 1.0 0.0 52.4

332 10,178

1.2 53.6

238 238

1.5 1.5

0 270 175

332

Note: Totals may not add due to rounding.

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Corporate Strategic Services - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 148) ( 333)

0 0 ( 134) ( 348)

0 0 ( 110) ( 113)

0 0 0 _____________ ( 481)

0 0 ( 222) _____________ ( 705)

0 0 ( 171) _____________ ( 394)

5,925 11 2,542 0 0 0 0

6,254 7 3,669 0 0 0 0

6,457 7 3,921 36 0 0 0

0 0 240 _____________ 8,719

0 0 177 _____________ 10,106

0 0 153 _____________ 10,573

8,238

9,401

10,178

2,360 ( 1,806) _____________ 555 _____________ 8,793

3,420 ( 2,916) _____________ 503 _____________ 9,905

2,595 ( 1,810) _____________ 785 _____________ 10,963

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

Corporate Strategic Services Division Growth 256

Cybersecurity Microsoft Licensing

150,000

(150,000) OG

256

Financial System Unit4 Cloud 2.0

0 OG

Total Growth

150,000

(150,000)

36,000

(36,000) OG

257 After Hours Support Services

54,000

(54,000) OG

60,300

(60,300) OG

50,000

(50,000)

0 OT

121,000

(121,000)

0 OT

31,600

(31,600) OG

Total New

352,900

(171,000)

(181,900)

Division Priority 1 Total

502,900

(171,000)

(331,900)

Total Priority 1 Operating

502,900

(171,000)

(331,900)

New 323 CAP Network as a Service

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2023 Operating Request Details Division: Department:

Corporate Strategic Services Information Services

Title:

Cybersecurity Microsoft Licensing

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: Cyber Security is the most significant digital threat the City faces. As the City continues to increase its mobile offerings to citizens and employees, it is imperative that the proper technology is in place to protect all digital assets including devices and information used outside the physical office environment. Microsoft requires a specific license for security features that protect digital transformation. 2023 Base Budget: $450k

Strategic Direction: 2023 2024 2025

Cost 150,000 260,000 370,000

Other - Extraordinary or Unforeseen Obligation Reserve 0 0 0

Borrow 0 0 0

Division: Department:

Corporate Strategic Services Information Services

Title:

Financial System Unit4 Cloud 2.0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (150,000) (260,000) (370,000)

Priority: 1

Growth ON-GOING PRELIMINARY

Justification: This funding request is to increase the licensing costs to move the solution to the vendor's Cloud offering. Moving to the Cloud allows the City to improve scalability, reducing the need for technical expertise to maintain the system by eliminating the need to perform upgrades and back-ups and securing the data using best-in-class security services provided by Microsoft. Cost avoidance will be realized through a reduction in staff involvement and capital hardware investment. Work in 2023 will include preparation and change management for the Financial Services Division who are the largest users. 2023 Base Budget: $187k Strategic Direction: 2023 2024 2025

Cost 0 120,000 120,000

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (120,000) (120,000)

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2023 Operating Request Details Division: Department:

Corporate Strategic Services Information Services

Title:

After Hours Support Services

Priority: 1

New ON-GOING PRELIMINARY

Justification: Technology is common in all services provided to citizens, providing access to critical systems and information 24/7. With the increased use of technology outside core business hours, the City requires a structured approach to after-hour services. This funding request is to provide an after-hours service for technical support from a 24x7 service provider and City staff time due to escalations.

Strategic Direction: 2023 2024 2025

Cost 54,000 54,000 54,000

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (54,000) (54,000) (54,000)

Priority: 1

Division: Department:

Corporate Strategic Services Information Services

Title:

Business Systems Analyst - Digital Transformation Specialist Position

New ON-GOING PRELIMINARY

Justification: With the onset of new automation tools and unprecedented staff resourcing demands, enhancements in technology are providing a timely opportunity to digitize manual tasks and improve inefficient processes. Budget is requested for a Business Systems Analyst - Digital Transformation Specialist position that will provide the capacity to work with each business area across the City to look for digital transformation opportunities and implement the tools needed to automate tasks, integrate processes with existing enterprise solutions and eliminate manual processes.

Strategic Direction: 2023 2024 2025

Cost 60,300 120,400 120,400

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (60,300) (120,400) (120,400)

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2023 Operating Request Details Priority: 1

Division: Department:

Corporate Strategic Services Information Services

Title:

Record Drawing – Citizen/Customer Facing Intake Process

New ONE-TIME PRELIMINARY

Justification: The Record Drawing Intake Automation Project will see the City adopt and promote infrastructure design standards for digital engineering drawing submissions, including file format, layer assignments, projection, symbolization, and attribution. Once the standard is in place, existing tools will be used to automate the entire intake process. This will significantly increase the speed and ease at which data is imported, making them available for asset and work management. In addition, validation and governance will ensure the City receives consistent, high quality and complete data for informed decision-making. Further, this automation will make it possible to eliminate the current record drawing backlog and support the development community with better data.

Expected Completion: Dec 2023 Strategic Direction: Cost 50,000

2023

Clear direction - Services, processes & business activities are transformed Reserve (50,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

Priority: 1

Division: Department:

Corporate Strategic Services Information Services

Title:

Unit4 Implement Timesheets and Absences Modules

New ONE-TIME PRELIMINARY

Justification: The current Unit4 ERP system the City uses includes a timesheet and absence module that has not been activated. Configuring these modules will allow the City to retire the legacy system that currently handles employee timesheets for 2/3 of staff, thereby reducing the weekly time entry and the maintenance that both Payroll and Information Services presently have to perform to integrate these systems. In addition, the Absences module further automates Disability Management processes by tracking and reporting the City's short-term and long-term disability programs and Worksafe claims, which are currently completed manually. Implementation will also provide automation of key metrics reporting to Senior Leadership Team, Managers and Human Resources. This request is to design, configure, test and train City staff.

Expected Completion: Sep 2024 Strategic Direction: 2023

Cost 121,000

Clear direction - Services, processes & business activities are transformed Reserve (121,000)

Borrow 0

Grant 0

Other 0

Revenue 0

Utility 0

Taxation 0

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2023 Operating Request Details Priority: 1

Division: Department:

Corporate Strategic Services Communications Department

Title:

Two Communications Summer Student Positions

New ON-GOING PRELIMINARY

Justification: For professional communicators, the City is a place to grow a career, work on interesting projects and have an impact in the community. The challenge is that the City is not necessarily seen or considered by candidates. With a goal of longterm resource planning, a summer communications student program supports the talent pipeline by positioning the City as a place to do interesting and meaningful work amongst talent entering their field. Due to several prolonged vacancies in 2022, two university students were hired for the summer which not only increased capacity of the Communications team, but created mentorship opportunities for two senior team members supporting their own professional development plans and retention. Budget is requested for two summer student positions.

Strategic Direction: 2023 2024 2025

Cost 31,600 31,600 31,600

People - Ability to attract, select & retain talent Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (31,600) (31,600) (31,600)

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

50,200

(50,200) OG

Total Growth

50,200

(50,200)

Innovation Consultant Position

49,300

(49,300) OG

Cloud Consumption

80,000

(80,000) OG

Information Services Project Coordinator Position

58,600

(58,600) OG

Total New

187,900

(187,900)

Division Priority 2 Total

238,100

(238,100)

Total Priority 2 Operating

238,100

(238,100)

Corporate Strategic Services Division Growth Communications Consultant Position

New

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FINANCIAL SERVICES The Financial Services Division provides services to Council, City Management and staff through financial management policies that form a framework for the City's overall fiscal planning, investment and management of City assets and resources. Financial accountability is achieved through reporting, monitoring, and internal control programs managed by the Division. Annual budgets, Five-Year Financial Plans, 10-Year Capital Plans, 20-Year Servicing Plans, Year-end Financial and Annual Reports and Statements provide key financial information and results to keep taxpayers, residents, business leaders and other interested parties informed on the financial performance and delivery of City programs and services. The Financial Services Division also levies and collects property taxes and utility fees, processes accounts payable and accounts receivable, provides purchasing support, develops and maintains financial systems, invests and safeguards the City's financial and tangible capital assets, manages and administers the Development Cost Charge (DCC) program and provides customer services such as transit passes, parking ticket and bylaw fee payments. Asset Management and Capital Planning (AMCP) coordinate the annual and 10year capital plans for all service areas as well as the City’s asset management plans for infrastructure renewal and the 20-Year Servicing Plan for infrastructure required to support growth. AMCP administers the DCC program and manages the City’s Asset Management Program through the development of policy, strategy, planning and system implementation for an asset portfolio of $3.9B. Financial Services Director oversees the Controller, Corporate Finance and Financial Planning; and is responsbile for the Value for Money Review program. Controller is responsible for the operations side of Financial Services, including all forms of revenue collection with the most significant amount of work around the collection of taxation revenue. The department is also responsible for administering the permissive tax exemption program, transit, financial systems, internal reporting, general ledger, accounts payable, accounts receivable, payroll and financial services projects. Corporate Finance is responsible for the management and oversight of a team of Business Partners, preparation and administration of internal corporate financial compliance, external financial reporting, and administers and manages the City's corporate banking controls and Treasury services ensuring the safekeeping of the City's financial assets. External financial reporting includes the Consolidated Financial Statements, Statement of Financial Information, Local Government Data Entry and the Annual Report. Financial Planning is responsible for managing the City’s budget including annual budget preparation, monitoring, and approval for all budget amendments and budget transfers. The department manages the City’s reserves through application of Council Policy and reserve balance projections to ensure alignment with the 10-year capital plan, and manages and administers the City’s debt, closely monitoring it to ensure that the debt limit threshold is kept within Council Policy. The department safeguards the City’s significant investment portfolio while working to maximize returns and minimize risk. Long term financial models and financial planning for the City’s Wastewater, Water and Landfill models are stewarded by this department to ensure adequate funding for ongoing City business requirements and appropriate utility rate setting. The tangible capital

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asset accounting, internal overhead allocations, and financial analysis/ decision support are also provided by this department. Purchasing Services provides transparent, fair and effective procurement services and strategies across the organization. The department is responsible for the acquisition of goods, services, and construction required by all City departments. Purchasing also manages the City Yards warehouse and inventory that provides materials and supplies to City crews and work groups, as well as the disposal of surplus materials and obsolete items.

Divisional Activities Social & Inclusive • Continue to work with corporate stakeholders to increase the use of suitable suppliers that provide a community benefit (social enterprise, not for profits, aboriginal) Environmental Protection • Continue to work with internal subject matter experts and to act as a catalyst to reduce the City’s negative impact on the environment including working with suppliers who endeavour to achieve the same ends Financial Management • Continue to refine the quarterly internal financial reporting tool that was rolled to the Corporation (SMOR – Strategic Management Owned Report) • Automation of accounts payable, Pcard function and invoice approvals to increase efficiency and timeliness of the process • Complete the annual payroll system upgrade • Continue streamlining the payroll system for improved processing • Investigate and improve the accounts receivable and collections process to ensure the City meets current best practices • Implement paperless process for Unit4 financial suites • Provide finance support to the Kelowna Community Theatre for their front office system implementation • Bi-monthly Procurement Forecasts, due to volatile supply markets, are being produced and circulated to SLT and business leaders to inform on best procurement approaches and conditions of the market Clear Direction • Implement the refreshed Division Strategic Plan with new goals that tie in with Council and Corporate priorities • Complete workplans included in the 2021-2023 Division Plan assigned for the 2022 time frame • Continue to refine and report on meaningful branch key performance indicators (KPI) for Financial Services that demonstrate effective achievement of key organization objectives • Implement new internal allocations policy and guideline, providing clear direction and consistency in allocation of Corporate Shared Service costs • Continue development of a Reserves Policy that provides clear direction on creation and usage of reserves to provide adequate infrastructure and services • Coordinate annual update to the capital plan, with new touch points incorporated for Council • Comprehensive update to Asset Management Plans for infrastructure assets valued at close to $4B People

•

Continued support of the Employee Engagement teams: Worklife Balance; Communication, Innovation; to lead and complete initiatives specific to SMART goals

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Base Business • Complete annual update to 10-Year Capital Plan • Prepare and coordinate the annual capital plan for Preliminary Budget • Prepare and present the annual Preliminary, Carryover and Final Budget Volumes • Prepare and present the Five-Year Financial Plan as mandated by the Community Charter • Continued development and renewal of corporate financial policies, procedures and guidelines: Internal allocations; Reserves; Surety; DCC’s; Performance Deposits; Return on investment (ROI)-Self funded Areas • Development and execution of internal control compliance programs and reviews: pcard; Accounts Payable; Payroll • Prepare and present the 2021 consolidated financial statements to the Audit Committee and Council, which is also included in the Annual Report for public reporting • Complete annual and quarterly financial reporting as required by the provincial and federal governments

Divisional Performance Measures 2021 Actual

2022 Estimate

2023 Forecast

The Government Finance Officers Association (GFOA) Budget Award

The GFOA Financial Reporting Award

% Property Taxes paid online or received electronically

% Taxpayers with Electronic Property Accounts

% Taxpayers receiving an e-bill

# of payments made through Payroll

29,165

29,300

# of vouchers processed in Accounts Payable

24,597

25,000

Consecutive years receiving:

Budget Overview Per cent of General Fund operating

Divisional operating summary Finance Director 70% Purchasing 13%

4% Financial Services

Financial Services 9%

Net Operating

General fund operating = $176.6 M

Capital Budget and Asset Management 8% Total = $6.8 M

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Divisional summary Actual 2021 Departmental operating cost centres ($ thousands): Financial Services 124 Financial Services Capital Budget and Asset Management 176 Capital Planning 223 Capital Budget and Asset Management Finance Director 125 Corporate Finance 126 Financial Planning 127 Accounting Operations 128 ERP Systems 130 Revenue 268 Controller 270 Finance Director 275 Corporate Financial Support Purchasing 129 Purchasing Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total divisional net expenditures Operating full-time equivalent positions: Management Union hourly Union salary Total operating full-time equivalent positions

Revised Preliminary Change from 2022 2023 prior year

Per cent change

516 516

598 598

599 599

0.1%

413 209 622

200 302 502

225 308 533

6.2%

521 901 1,076 9 168 186 0 600 3,461

581 1,038 1,252 28 450 192 181 970 4,693

581 1,042 1,261 28 420 192 181 1,098 4,803

111

2.4%

856 856 5,454

857 857 6,649

863 863 6,798

6 149

0.7% 2.2%

0 0 5,454

0 0 6,649

0 0 6,798

0 149

0.0% 2.2%

13.1 7.1 46.2 66.4

14.9 4.3 53.5 72.7

15.9 4.0 55.0 74.9

2.2

3.0%

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(101) 141 (23)

132

Total 6,649

FTE 72.7

17 6,666

(0.3) 1.5 0.0 73.9

132 6,798

1.0 74.9

42 42

0.5 0.5

Note: Totals may not add due to rounding.

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Financial Services - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 0 ( 474) ( 1,005)

0 0 ( 508) ( 1,080)

0 0 ( 536) ( 1,014)

0 0 ( 276) _____________ ( 1,755)

0 0 ( 514) _____________ ( 2,103)

0 0 0 _____________ ( 1,550)

6,333 24 701 11 1 0 55

7,285 6 1,362 44 0 0 55

7,529 6 750 9 0 0 55

0 0 83 _____________ 7,209

0 0 0 _____________ 8,752

0 0 0 _____________ 8,348

5,454

6,649

6,798

0 0 _____________ 0 _____________ 5,454

0 0 _____________ 0 _____________ 6,649

0 0 _____________ 0 _____________ 6,798

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

270 Asset Management System Manager Position 270 Asset Management Consulting Support 271 Infrastructure Data Solutions Software Subscription

121,600

(15,400)

(30,800)

(75,400) OG

50,000

(6,200)

(12,500)

(31,300) OG

25,000

(25,000) OG

Total New

196,600

(21,600)

(43,300)

(131,700)

Division Priority 1 Total

196,600

(21,600)

(43,300)

(131,700)

Total Priority 1 Operating

196,600

(21,600)

(43,300)

(131,700)

Financial Services Division New

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2023 Operating Request Details Division: Department:

Financial Services Capital Planning and Asset Management

Title:

Asset Management System Manager Position

Priority: 1

New ON-GOING PRELIMINARY

Justification: Budget is request for a full-time Asset Management System Manager Position to lead and manage Cityworks. The position is required to manage the system and to implement improvements systematically to ensure system effectiveness and to recognize expected return on investment. The position will replace the term project manager position that is currently in place and funded from the capital project. Cityworks implementation is in the final phase with completion scheduled for end 2022, and it is important to establish this position now for continuity and to leverage and retain the skills and the knowledge of the implementation. Many municipalities across the county experience significant challenges in the absence of such leadership role. This budget will be partially funded from the Water fund, Wastewater fund and Landfill. Strategic Direction: 2023 2024 2025

Cost 121,600 121,600 121,600

Other - Supports Base Business Reserve (15,400) (15,400) (15,400)

Borrow 0 0 0

Grant 0 0 0

Division: Department:

Financial Services Capital Planning and Asset Management

Title:

Asset Management Consulting Support

Other 0 0 0

Revenue 0 0 0

Utility (30,800) (30,800) (30,800)

Taxation (75,400) (75,200) (75,200)

Priority: 1

New ON-GOING PRELIMINARY

Justification: Service delivery is supported by well maintained and resilient infrastructure. The City owns and operates $4B in infrastructure assets and good asset management is needed to ensure acceptable service delivery, manage risk of service interruption and operate, maintain and renew assets in a timely and efficient manner. Budget is requested for consulting support for the City's asset management system (Cityworks) that tracks maintenance and condition of the City's asset portfolio. Consulting support is needed on an ongoing basis for system upgrades and improvements so Cityworks meets the needs of the infrastructure business owners and ensures efficient and safe service delivery. This budget will be partially funded from the Water fund, Wastewater fund and Landfill.

Strategic Direction: 2023 2024 2025

Cost 50,000 50,000 50,000

Economic resiliency - Infrastructure deficit is reduced Reserve (6,200) (6,200) (6,200)

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (12,500) (12,500) (12,500)

Taxation (31,300) (31,300) (31,300)

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2023 Operating Request Details Division: Department:

Financial Services Capital Planning and Asset Management

Title:

Infrastructure Data Solutions Software Subscription

Priority: 1

New ON-GOING PRELIMINARY

Justification: In 2021, the City undertook a pilot to evaluate advanced infrastructure asset data modeling with Infrastructure Data Solutions software to further support capital planning decision making. The free license trial has now concluded. This request is for an annual software license subscription to continue to advance capabilities to make transparent, defendable, and repeatable data-driven decisions about the City's $4.7B asset portfolio now and into the future.

Strategic Direction: 2023 2024 2025

Cost 25,000 25,000 25,000

Clear direction - Services, processes & business activities are transformed Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (25,000) (25,000) (25,000)

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

41,600

(41,600) OG

Total New

41,600

(41,600)

Division Priority 2 Total

41,600

(41,600)

Total Priority 2 Operating

41,600

(41,600)

Financial Services Division New Payroll Technician Position

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GENERAL REVENUES Budget Overview

Departmental summary Actual 2021 Departmental operating cost centres ($ thousands): Revenue & Fees 206 General Revenue Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total departmental net expenditures

Revised Preliminary Change from prior year 2022 2023

Per cent change

(171,473) (171,473)

(179,317) (179,317)

(190,760) (190,760)

(11,443)

6.4%

0 0 (171,473)

0 0 (179,317)

0 0 (190,760)

0 (11,443)

0.0% 6.4%

Total (179,317)

FTE 0.0

(11,443) (190,760)

0.0 0.0 0.0 0.0

0 (190,760)

0.0 0.0

0 0

0.0 0.0

Detailed operating program changes ($thousands) 2022 revised budget 2023 net impacts One-time operating requests Prior years ongoing adjustments Divisional adjustments 2023 Program additions (P1) 2023 operating requests: Total Unfunded 2023 requests (P2) 2023 operating request Total unfunded requests for 2023

0 0 (11,443)

Note: Totals may not add due to rounding.

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Financial Services General Revenues - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

( 160,301) 0 ( 2,451) ( 16,341)

( 169,686) 0 ( 2,563) ( 13,849)

( 178,251) 0 ( 2,724) ( 16,907)

0 0 ( 1,676) _____________ ( 180,768)

0 0 ( 1,650) _____________ ( 187,747)

0 0 ( 1,650) _____________ ( 199,532)

0 0 6,785 0 25 0 0

0 0 7,210 0 0 0 0

0 0 7,552 0 0 0 0

540 0 1,946 _____________ 9,295

400 0 820 _____________ 8,430

400 0 820 _____________ 8,772

( 171,473)

( 179,317)

( 190,760)

0 0 _____________ 0 _____________ ( 171,473)

0 0 _____________ 0 _____________ ( 179,317)

0 0 _____________ 0 _____________ ( 190,760)

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DEBT & OTHER

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

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DEBT & OTHER Budget Overview

Departmental summary Actual 2021 Departmental operating cost centres ($ thousands): Debt & Other 205 Debt & Other Net operating expenditure Divisional capital cost centres ($ thousands): Net capital expenditures Total departmental net expenditures

Revised Preliminary Change from prior year 2022 2023

Per cent change

23,744 23,744

8,414 8,414

11,895 11,895

3,481

41.4%

0 0 23,744

0 0 8,414

0 0 11,895

0 3,481

0.0% 41.4%

Total 8,414

FTE 0.0

(557) 7,857

0.0 0.0 0.0 0.0

4,038 11,895

0.0 0.0

0 0

0.0 0.0

Detailed operating program changes ($thousands) 2022 revised budget 2023 net impacts One-time operating requests Prior years ongoing adjustments Divisional adjustments 2023 Program additions (P1) 2023 operating requests: Total Unfunded 2023 requests (P2) 2023 operating request Total unfunded requests for 2023

0 0 (557)

4,038

Note: Totals may not add due to rounding.

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Financial Services Debt & Other - General Fund Revenues/Expenditures by Category ($ thousands)

Actual 2021

Revised 2022

Preliminary 2023

0 ( 146) ( 7,610) ( 17,149)

0 ( 142) ( 7,454) ( 12,288)

0 ( 142) ( 608) ( 12,760)

( 1,723) ( 654) ( 1,951) _____________ ( 29,232)

( 1,158) ( 1,449) ( 84) _____________ ( 22,575)

( 943) ( 795) 0 _____________ ( 15,249)

207 0 7,472 4 2,423 5,142 213

( 1,564) 0 7,713 0 2,464 5,922 213

( 2,629) 0 2,203 0 2,839 3,948 213

21,552 0 15,962 _____________ 52,976

14,018 0 2,223 _____________ 30,989

15,241 0 5,329 _____________ 27,143

23,744

8,414

11,895

0 0 _____________ 0 _____________ 23,744

0 0 _____________ 0 _____________ 8,414

0 0 _____________ 0 _____________ 11,895

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2023 Operating Requests Preliminary Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

Financial Services Division Debt & Other Maintain 282 Other Working Capital

2,815,000

(2,815,000) OG

828,000

(828,000) OG

394,500

(394,500) OG

2,815,000

1,222,500

0 OG

Department Priority 1 Total

2,815,000

1,222,500

(4,037,500)

Total Priority 1 Operating

2,815,000

1,222,500

(4,037,500)

282 PRC Replacement Financial Planning 283 Infrastructure Levy Total Maintain

(4,037,500)

New 283 Public Safety Levy Total New

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2023 Operating Request Details Division: Department:

Financial Services Financial Services

Title:

Other Working Capital

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: This request is to provide for contracts and other requirements that have been negotiated or are not resolved at the time the budget is prepared, but will become due during 2023.

Strategic Direction: 2023 2024 2025

Cost 2,815,000 2,815,000 2,815,000

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility Taxation 0 (2,815,000) 0 (2,815,000) 0 (2,815,000)

Priority: 1

Division: Department:

Financial Services Financial Services

Title:

PRC Replacement Financial Planning

Maintain ON-GOING PRELIMINARY

Justification: Originally constructed in 1972, PRC is a full-service, multi-use space that has undergone several upgrades and renovations through the years and has now reached the end of its service life. The redevelopment of the PRC is a Council priority, identified in the 10-year Capital Plan, and is recognized as a unique opportunity for delivering a landmark wellness facility that will serve the community for generations. Debt financing will be required to fund this new facility. This request is for budget to help prepare for and smooth out the taxation impact of this borrowing. Funds will be contributed to reserve in 2023 and then reallocated to cover debt servicing costs when appropriate.

Strategic Direction: 2023 2024 2025

Cost 0 0 0

Vibrant neighbourhoods - Accessible and multi-purpose amenities Reserve 828,000 828,000 828,000

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (828,000) (828,000) (828,000)

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2023 Operating Request Details Division: Department:

Financial Services Financial Services

Title:

Infrastructure Levy

Priority: 1

Maintain ON-GOING PRELIMINARY

Justification: The Infrastructure Levy was introduced in 2019 and has helped fund parks, transportation and storm drainage projects. The City's civic buildings and facilities are aging and more investment is needed to renew these important assets. Given the success of the 2019 Infrastructure Levy in supporting key capital projects, budget is requested to increase the levy annually by the three-year average non-residential construction price index, seven per cent for 2023, to support building renewal. The current Infrastructure Levy generates $5.6M annually but is not indexed to inflation. This budget request adjusts the Infrastructure Levy annually to keep pace with inflation.

Strategic Direction: Cost 0 0 0

2023 2024 2025

Economic resiliency - Infrastructure deficit is reduced Reserve 394,500 422,100 451,600

Division: Department:

Financial Services Financial Services

Title:

Public Safety Levy

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (394,500) (422,100) (451,600)

Priority: 1

New ON-GOING PRELIMINARY

Justification: Budget is requested to establish an annual 1% Public Safety Levy to provide a dedicated and predictable funding source to help address the public safety needs of the community. Staff will work with Council to determine the strategic allocation of these funds with approval included as part of the annual budget. The 2023 allocation is recommended to fund six RCMP Members, two Senior Bylaw Officers and four Fire Fighters. This allocation is a balance of resources to improve overall service, reduce overtime, and to support planning for the future. The allocation recommendation is informed by an RCMP resource deficit highlighted in the Griffiths' 2019 Report and their strategic plan; community service growth needs identified by Bylaw Services and the Fire Department 2030 Strategic Plan and 10-year Capital Plan. Strategic Direction: 2023 2024 2025

Cost 1,466,000 3,402,000 5,195,100

Community Safety - Residents feel safe Reserve 205,000 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility Taxation 0 (1,671,000) 0 (3,402,000) 0 (5,195,100)

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CAPITAL BUDGET

2023 FINANCIAL PLAN

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CAPITAL BUDGET CAPITAL BUDGET SUMMARY The 10‐Year Capital Plan and the annual capital program are coordinated by the Capital Planning department with the integral involvement of all divisions with capital needs. The Capital Planning team uses a long‐term, multiple bottom line approach for capital planning that strikes a balance between renewing existing infrastructure and investing in new infrastructure to support growth and improved services. In April 2016, Council endorsed the 2030 Infrastructure Plan, which set the direction for infrastructure investment until 2030, including a funding strategy. The Council endorsed 10‐Year Capital Plan is guided by the direction set in the 2030 Infrastructure Plan and is updated annually to be responsive and practical. The annual capital program is directed by the 10‐Year Capital Plan but is responsive to emerging issues and priorities. The planning horizon for the 10‐Year Capital Plan referenced in this document is 2022 – 2031. The City of Kelowna’s capital structure includes twelve capital cost centres: Airport, Fire Equipment, Information Services, Real Estate & Parking, Buildings, Parks, Vehicle & Mobile Equipment, Transportation, Water, Wastewater, Solid Waste and Storm Drainage. Funding for projects within these cost centres could come from a variety of sources including utility revenues, financial reserves, borrowing, grants or taxation.

Capital expenditures At the top right‐hand side of each 2023 capital request, readers will find the capital reference and the year the project was included in the Council endorsed 10‐Year Capital Plan, along with the corresponding dollar amount. All capital submissions from departments have been evaluated to ensure alignment with Council Policy No. 342 Tangible Capital Assets. The evaluation is based on the minimum cost threshold and the useful life threshold as seen in the table below. Asset Category Land Land Improvement Parks Infrastructure Buildings Building Improvement Machinery and Equipment IT Infrastructure Infrastructure

Useful Life (in years) No Amortization 15‐60 15‐60 40‐75 10‐40 5‐15 4‐10 20‐100

Minimum Threshold Capitalize $50,000 $50,000 $100,000 $100,000 $10,000 $10,000 $100,000

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Where submissions were deemed to not meet the Tangible Capital Asset thresholds, requests were included in the operating program. Operating and maintenance costs are included in the related capital request when applicable. Capital requests that have operating impacts are marked with O&M on the capital summary sheet. When a vehicle or equipment is required as part of a new position, the capital cost is presented in the operating request and marked on the capital summary with OP. Each capital request is categorized into the three categories renew, growth and new. Renewal projects will renew current capital assets, maintaining current service levels. Growth projects are new capital assets that are required due to increased growth and service demand. New project requests are for new capital assets that will provide an improved level of service. General Fund The 2023 Financial Plan includes 83 General Fund Priority one (P1) requests that total 94.2M of which 14.2M is requested to be funded from taxation. The general taxation expenditure of 14.2M has been allocated to infrastructure budgets as follows. Department Fire Information Services Real Estate & Parking Building Parks Vehicle & Mobile Equipment Transportation Solid Waste Storm Drainage Total

Description Vehicles & equipment Communication hardware/software Land acquisition & parking infrastructure Facilities & improvements Park land/trail/area development Vehicles & equipment Roadways/pathways/traffic signals/public transit Landfill infrastructure Drainage systems

Amount 0 785 984 1,761 5,981 109 3,532 0 1,000 14,152

Note: Totals may not add due to rounding

Priority one requests focus on growth through cultivating vibrant neighbourhoods with a commitment to environmental sustainability while maintaining essential services. In addition to the P1 capital requests, there are 21 Priority two (P2) General Fund requests that are included for Council’s consideration totaling 9.9M of which 8.7M is requested from taxation. P2 requests are not included in summary totals. The 2023 general capital program includes 23 per cent related to renewal, 55 per cent to growth projects, and 22 per cent for new infrastructure.

Airport Fund The recovery from the COVID‐19 pandemic and the easing of travel restrictions, has increased passenger volumes at the Kelowna International Airport. The 2023 Airport capital ask totals 39.0M which is a .8M increase over 2022. There are no P2 capital requests for the Airport. The 2023 capital requests are comprised of nine per cent renewal projects, per cent is related to growth, followed by two per cent for new capital projects.

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Water Fund The City of Kelowna’s Water Utility provides water to just over half of the Kelowna population. The 2023 capital program focuses on infrastructure renewal and includes 13 requests for a total of 6.0M funded by 4.4M of utility revenue. There is one P2 capital request for the Water Utility in the amount of . M which is funded from utility revenue. The 2023 water capital requests are categorized by renewal projects at 72 per cent, followed by 14 per cent for growth, and per cent for new capital programs.

Wastewater Fund The Wastewater Utility has 10 capital requests using 7.4M of utility revenues to fund 9.4M worth of projects, with the balance of funding from provincial grant. These projects focus on growth through various sewer connection projects and infrastructure renewal at mains, trunks and lift stations. There are no P2 capital requests for the Wastewater Utility. The wastewater utility capital requests are 63 per cent renewal projects, with 24 per cent related to growth, and per cent are related to new capital infrastructure.

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Requests by Department ($ thousands) The following table provides a summary of the priority one and priority two capital request totals highlighting the funding from Taxation, Reserves, Borrowing, Grant Funding, External Contributions and Utility Funds (user fees). Department Priority 1

Asset

Reserve

Borrow

Fed/Prov

Contribution

Utility

Taxation

312

Information Services

2,595

370

1,390

785

Real Estate & Parking

2,976

1,993

984

Building

9,529

7,768

1,761

Parks Vehicle & Mobile Equipment Transportation Storm Drainage Solid Waste Total General Fund Airport Water Wastewater

30,631 4,575 25,284 6,304 12,035 94,241 39,025 6,007 9,366

24,650 4,103 20,410 2,970 12,035 74,611 39,025 1,497 1,306

0 0 0 0 0 1,390 0 0 0

0 0 992 2,310 0 3,302 0 0 660

0 0 350 0 0 400 0 150 37

0 363 0 25 0 388 0 4,360 7,364

5,981 109 3,532 1,000 0 14,152 0 0 0

Total Utility Fund Total Priority 1

54,398 148,639

41,828 116,439

0 1,390

660 3,962

187 587

11,724 12,112

0 14,152

Real Estate & Parking Building Parks Transportation Storm Drainage

448 2,221 3,285 459 3,291

0 0 0 0 0

0 0 0 0 1,177

0 0 0 0 0

448 2,221 3,285 459 2,115

Vehicle & Mobile Equipment Total General Fund Water

160 9,865 500

0 0 0

0 1,177 0

0 0 0

0 0 500

160 8,688 0

Total Utility Fund Total Priority 2 Total All Funds

500 10,365

0 0

0 1,177

0 0

500 500

0 8,688

159,004

116,439

1,390

5,139

587

12,612

22,840

Fire

Priority 2

Note: Totals may not add due to rounding

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All funds expenditures – priority 1 ($ millions) This pie chart provides a visual comparison of the level of spending in all funds by capital cost centre.

Fire $0.3M Information Services $2.6M Real Estate and Parking $3.0M Building $9.5M Parks $30.6M Vehicle & Mobile Equipment $4.6M Transportation $25.3M Storm Drainage $6.3M Solid Waste $12.0M Airport $39.0M Water $6.0M Wastewater $9.4M Total $148.6M Note: Totals may not add due to rounding The following table provides a comparison of priority one requests included in this year’s annual capital program versus the 10 Year Capital Plan for the 2023 year ($ millions).

*Parkinson Recreation Building Replacement – construction costs not included Note: Totals may not add due to rounding

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CAPITAL FUNDING SUMMARY The Council approved Principles and Strategies for Financial Strength and Stability helps to guide decision making and funding strategies. The bar graph below visually compares the various capital funding sources used in the annual capital plan. Other funding includes external contributions such as developer contributions, partnership contributions, or user fees.

All funds funding sources – priority 1 ($ millions) SRSA Reserve*

Total $148.6M

$0.2

Water Reserves

$1.0

Parking Reserves

$1.3

Other Funding

$2.0

Land Reserves

$2.7

Grants

$4.0

General Reserves

$7.6

Utility

$12.1

Taxation

$14.2

CWME Reserves

$32.0

DCC Reserves

$32.5

Airport Reserves

$39.0 $0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

Total $105.3M

$40.0

$45.0

*Septic Removal Specified Area Reserve Note: Totals may not add due to rounding

Capital reserve funding – priority 1 ($ millions) The City is prudent with funding from reserves and fund equity in order to protect the current and future financial viability of the municipality. Reserve funds are maintained to support the capital program to prevent taxation fluctuations due to capital expenditure requirements. This chart is depicting the $116.4M of reserves being used in this year’s capital program. Reserve for Future Expenditure $40.1M Statutory Reserve Fund $36.2M Deferred Development Cost Charges $32.5M Major Facilities $4.3M Planning Initiatives ‐ Corporate $1.3M Upgrades/Maint. Existing Assets $1.2M Transportation & Drainage Capital $0.6M Park Purch/Dev't/Other Land $0.2M Operating Exp. Equalization $0.1M

Total $116.4M

Note: Totals may not add due to rounding

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CAPITAL INVESTMENT OPERATING IMPACTS The City of Kelowna considers operational impacts when making capital investment decisions. This is important as the operating impacts can amount to 70 – 80 per cent of an asset’s life cycle cost. The operating and maintenance impacts in the table below are included in the related capital request to present the full budget cost of the capital asset. All operating requests are ongoing.

Impact of capital investments on operating budgets – priority 1 Request Title Building Kelowna Community Theatre Improvements: theatre operations revenues Total Building Parks Glenmore Recreation Park (DCC) ‐ Phase 3: area maintenance (turf, building, security) Irrigation Renewal: maintenance (system) Knox Mountain Park Improvements: area maintenance (forest management) Parks Large Capacity Waste Receptacles: maintenance (furniture, buildings) Total Parks Transportation Bicycle Network Improvement Program: maintenance (sweeping, road marking) Casorso 3 DCC (Lanfranco ‐ Barrera), ATC: maintenance (snow and ice control, sweeping, tree, irrigation, paving) Crosswalk Safety, Signals and Flashers: maintenance (sweeping, litter control) Glenmore 4 DCC (Kane ‐ South Yates), ATC: maintenance (snow and ice control, sweeping and litter control, paving, vegetation control) Local Street Urbanization Program: traffic control symbols painting Okanagan College Exchange Capacity Expansion: maintenance (bus stop repair) Sidewalk Network Expansion Program: maintenance (snow and ice, vegetation control) Stewart DCC (Crawford ‐ Swamp): maintenance (snow and ice, vegetation control) Transit ‐ Bus Stop and Amenity Improvements: maintenance (bus stop repair) Total Transportation Information Services Network as a Service: network improvements Total Information Services Vehicle and Mobile Equipment Fleet Growth ‐ General Fund: internal equipment costs for infrastructure delivery and maintenance Fleet Growth ‐ Water Fund: internal equipment costs for installation and repair Robotic Sports Field Line Painter: maintenance (turf) Total Vehicle and Mobile Equipment Wastewater KLO Rd Mission Creek Sewer Connection: maintenance (sanitary blockage removal and operations inspections) Total Wastewater Total operating impacts from Capital Investment

2023

2024

2025

(1,400) (1,400)

0 0 12,000 17,500 29,500

75,000 15,000 37,100 21,500 148,600

103,100 15,000 37,100 26,500 181,700

60,200

12,000 1,200

26,750 1,800

26,750 2,400

4,000 0 0

12,800 0 0

12,800 23,500 1,500

0 0 0 17,200

1,900 4,000 1,800 109,250

1,900 4,000 1,800 134,850

36,000 36,000

267,600 267,600

16,700 31,900 10,000 58,600

33,400 63,700 10,000 107,100

11,300 11,300

45,000 45,000

151,200

676,150

734,850

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2023 Capital Requests Preliminary Budget Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

1,958,600

(1,000,000)

(958,600)

1,958,600

(1,000,000)

(958,600)

Road & Sidewalk, Land Acquisition

25,000

(25,000)

L2 - Road and Sidewalk Land Acquisition

25,000

(25,000)

329 Renew Downtown Parkades-Major Maintenance 329 Renew Parking Equipment and Facilities

250,000

(250,000)

192,500

(192,500)

330 New

300,000

(300,000)

L3 - Parking Infrastructure

742,500

(742,500)

Strategic Land Servicing Requirements

250,000

(250,000)

L4 - Strategic Land Redevelopment

250,000

(250,000)

Cost Center Totals

2,976,100

(1,992,500)

(983,600)

3,900,000

(3,900,000)

B1 - Parks and Recreation Buildings

3,900,000

(3,900,000)

North Glenmore Fire Hall No.5 - Design

866,600

(814,600)

(52,000)

95,200

(95,200)

961,800

(909,800)

(52,000)

1,000,000

(1,000,000)

B6 - Capital Opportunities and Partnerships

1,000,000

(1,000,000)

338 Renew Kelowna Family Y - Building Renewal

1,350,000

(108,000)

(1,242,000)

338 Renew General Building Infrastructure Renewal - Critical Renewal 339 Renew Water Street Boat Launch Renewal

1,400,000

(933,000)

(467,000)

575,000

(575,000)

O&M 339 Renew Kelowna Community Theatre Improvements 340 Renew Facility Energy Modernization Renewal

92,000

(92,000)

250,600

(250,600)

B7 - Renewal, Rehabilitation & Infra.

3,667,600

(1,958,600)

(1,709,000)

Real Estate and Parking Capital - Priority 1 328 New

General Land, Acquisition L1 - General Land

328 New

330 New

Electric Vehicle Infrastructure and Strategic Initiatives

Building Capital - Priority 1 **

336 Renew Kelowna Community Campus Building and Site Works

336 New

337 Growth Rutland Community Policing Office Expansion - Design B3 - Civic/Protective Service Buildings 337 Growth Capital Opportunities & Partnership Fund

**This item is to be removed from the 2023 Preliminary Budget and brought forward later in 2023 as Council approves related project milestones

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2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description Cost Center Totals

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

9,529,400

(7,768,400)

(1,761,000)

16,936,300 (15,346,300)

(1,590,000)

16,936,300 (15,346,300)

(1,590,000)

Parks Capital - Priority 1 346 Growth DCC Parkland Acquisition P1 - DCC Parkland Acquisition 346 Growth Burne Park (DCC) - Design

279,200

(174,200)

(105,000)

279,200

(174,200)

(105,000)

4,928,800

(4,355,900)

(572,900)

4,928,800

(4,355,900)

(572,900)

6,830,400

(3,721,600)

(3,108,800)

P5 - Recreation Park Development

6,830,400

(3,721,600)

(3,108,800)

348 Growth Pandosy Waterfront Park (DCC) - Phase 2

168,000

(93,000)

(75,000)

P6 - City-wide Park Development

168,000

(93,000)

(75,000)

O&M 348 Renew Knox Mountain Park - Improvements

276,500

(276,500)

P7 - Linear/Natural Area Park Development

276,500

(276,500)

300,000

(117,300)

(182,700)

538,000

(538,000)

P3 - Neighbourhood Park Development 347 Growth DeHart Park (DCC) P4 - Community Park Development O&M 347 Growth Glenmore Recreation Park (DCC) Phase 3

O&M 349 Renew Irrigation Renewal 349 New

Kelowna Memorial Park Cemetery Improvements 350 Renew Park Infrastructure Renewal

70,000

(70,000)

350 Renew Sport Courts/Water Parks/Skate Parks Renewal & Replacements O&M 351 New Parks Large Capacity Waste Receptacles

150,000

(150,000)

153,500

(153,500)

P8 - Renewal, Rehabilitation & Infra

1,211,500

(958,800)

(252,700)

30,630,700 (24,649,800)

(5,980,900)

6,150,000

(5,407,800)

(742,200)

190,000

(175,300)

(14,700)

3,342,500

Cost Center Totals

Transportation Capital - Priority 1 363 Growth Sutherland 3 DCC (Mill Creek - Spall), Road 363 Growth McCulloch Area DCC (KLO/Hall/Spiers) O&M 364 Growth Stewart DCC (Crawford - Swamp)

(3,224,300)

(118,200)

364 Growth Lakeshore 5 DCC (Swordy - Barrera), Road 365 Growth Major Intersection Capacity Improvements DCC 365 Growth Road Safety Improvements DCC

75,000

(59,600)

(15,400)

120,000

(120,000)

200,000

(200,000)

366 Growth Traffic Signals and Roundabouts DCC

200,000

(175,100)

(24,900)

T1 - DCC Roads

10,277,500

(9,362,100)

(915,400)

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2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

366 Growth Houghton 2 DCC (Hollywood Mugford), ATC O&M 367 Growth Casorso 3 DCC (Lanfranco - Barrera), ATC 367 Growth Bertram 1 DCC (Sutherland - Cawston), ATC 368 Growth Abbott DCC (Cedar - Gyro), ATC

1,218,600

(1,141,900)

(76,700)

2,750,000

(2,467,900)

(282,100)

200,000

(149,200)

(50,800)

250,000

(81,000)

(169,000)

368 Growth Sutherland 1 Protected Bike Route (Lequime - Burtch) 369 Growth Rail Trail to Greenway DCC, ATC

1,568,000

(1,390,700)

(177,300)

85,000

(78,900)

(6,100)

O&M 369 Growth Glenmore 4 DCC (Kane - South Yates), ATC

409,200

(304,400)

(104,800)

T2 - DCC Roads - Active Transportation

6,480,800

(5,614,000)

(866,800)

370 Growth Hwy 97 Right Turn Lane to Pandosy

343,000

(250,000)

(93,000)

O&M 370 Growth Local Street Urbanization Program

200,000

(100,000)

350,000

(350,000)

893,000

(350,000)

(193,000)

85,000

(50,000)

(35,000)

400,000

(300,000)

(100,000)

371 Growth Roadway Urbanization T3 - Non-DCC Roads O&M 371 Renew KLO Road Mission Creek Bridge Replacement 372 Renew Bridge Rehabilitation and Renewal Program 372 Renew Road Renewal Program

3,342,900

(3,299,800)

(43,100)

373 Renew Sidewalk & Bikeway Renewal Program

150,000

(150,000)

373 Renew Street Lighting Renewal Program

235,000

(200,000)

(35,000)

374 Renew Traffic Signal and Communications Renewal Program

260,000

(200,000)

(60,000)

4,472,900

(4,049,800)

(423,100)

500,000

(250,000)

T5 - Bicycle Network

500,000

(250,000)

O&M 375 Growth Crosswalk Safety, Signals and Flashers

150,000

(75,000)

O&M 375 Growth Sidewalk Network Expansion Program

650,000

(350,000)

(300,000)

T6 - Sidewalk Network

800,000

(425,000)

(375,000) (50,000)

T4 - Transportation System Renewal O&M 374 Growth Bicycle Network Improvement Program

376 New

Safe Routes to School Program

100,000

(50,000)

376 New

Road Safety Partnerships with ICBC

150,000

(75,000)

377 New

Neighbourhood Traffic Calming Program

150,000

(150,000)

T7 - Safety and Operational Improvements

400,000

(125,000)

(275,000)

O&M 377 Growth Okanagan College Exchange Capacity Expansion O&M 378 New Transit - Bus Stop and Amenity Improvements Transit - Land Acquisition 378 New

1,240,000

(124,000)

0 (992,000)

(124,000)

150,000

(75,000)

70,000

(35,000)

T9 - Transit Facilities

1,460,000

(234,000)

0 (992,000)

(234,000)

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Page Type

CITY OF KELOWNA

Description

Asset Cost Cost Center Totals

Reserve

25,284,200 (20,409,900)

Borrow

Grant

Other

Utility

Taxation

0 (992,000)

(350,000)

(3,532,300)

Solid Waste Capital - Priority 1 404 Growth Automated Collection Curbside Carts

400,000

(400,000)

SW1 - Equipment

400,000

(400,000)

404 New

Landfill Liner Design and Construction

1,500,000

(1,500,000)

405 New

Electrical Supply Upgrades

2,000,000

(2,000,000)

405 Growth General Site Works and Investigations

100,000

(100,000)

406 New

Landfill - Electric Equipment Charging Station

85,000

(85,000)

SW2 - Site Improvement

3,685,000

(3,685,000)

406 Growth Landfill Gas & Leachate Recirculation Laterals

450,000

(450,000)

SW3 - Gas Management

450,000

(450,000)

Odour Control and Leachate Treatment

100,000

(100,000)

SW4 - Leachate Management

100,000

(100,000)

407 Renew Wet Well Relocation

600,000

(600,000)

408 Growth Stormwater Bypass System

300,000

(300,000)

900,000

(900,000)

6,100,000

(6,100,000)

400,000

(400,000)

6,500,000

(6,500,000)

12,035,000 (12,035,000)

5,773,700

(2,969,900)

0 (2,309,500)

(494,300)

5,773,700

(2,969,900)

0 (2,309,500)

(494,300)

170,500

(170,500)

360,000

(25,000)

(335,000)

D3 - Storm Water Renewal

530,500

(25,000)

(505,500)

Cost Center Totals

6,304,200

(2,969,900)

0 (2,309,500)

(25,000)

(999,800)

407 New

SW5 - Drainage & Groundwater Management 408 New 409 New

Stockpiles and Reprocessing Areas Relocation Mechanical Shop Expansion Equipment Storage Bay SW7 - Landfill Area Development Cost Center Totals

Storm Drainage Capital - Priority 1 414 New

Mill Creek Flood Protection D1 - Hydraulic Upgrading Program

414 Renew Stormwater Pond Asset Renewal Program 415 Renew Linear Asset Renewal Projects

Page 297

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

503,300

(503,300)

503,300

(503,300)

50,000

(50,000)

50,000

(50,000)

370,000

(370,000)

370,000

(370,000)

0 (1,389,600)

(231,600)

(50,000)

Information Services Capital - Priority 1 322 Renew Front Office Equipment I1 - Front Office Equipment 322 Renew Server and Data Storage I2 - Server & Data Storage 323 Renew Major Systems Projects I3 - Major System Projects O&M 323 Renew Network as a Service 324 New

1,621,200 50,000

Fibre Optic Service Line I4 - Communications Systems

1,671,200

0 (1,389,600)

(50,000)

(231,600)

Cost Center Totals

2,594,500

(370,000) (1,389,600)

(50,000)

(784,900)

(109,300)

Vehicle & Mobile Equipment - Priority 1 O&M 356 Growth Fleet Growth Robotic Sports Field Line Painter O&M 356 New

472,000

0 (362,700)

45,000

(45,000)

517,000

(45,000)

0 (362,700)

(109,300)

4,058,400

(4,058,400)

V2 - Vehicle / Equipment Renewal

4,058,400

(4,058,400)

Cost Center Totals

4,575,400

(4,103,400)

0 (362,700)

(109,300)

316 Renew Fire Equipment Replacement

72,000

(72,000)

316 New

Digital Fire Training System

55,000

(55,000)

F2 - Additional Vehicles / Equipment

127,000

(127,000)

184,500

(184,500)

F3 - Communications Systems

184,500

(184,500)

Cost Center Totals

311,500

(311,500)

(400,000) (387,700)

(14,151,800)

V1 - Additional Vehicles / Equipment 357 Renew Vehicle/Equipment Renewal

Fire Capital - Priority 1

317 Renew Fire Communications Equipment Renewal

Grand Total

94,241,000 (74,610,400) (1,389,600) (3,301,500)

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 298

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2023 Capital Requests Preliminary Budget Summary - Utility Funds Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Airport Capital - Priority 1 308 New

Bridge Gantries

140,000

(140,000)

308 New

Taxiway and Utilities Construction

390,000

(390,000)

180,000

(180,000)

710,000

(710,000)

280,000

(280,000)

280,000

(280,000)

310 Renew Airport Roof Replacement Program

1,200,000

(1,200,000)

310 Renew Airport Air Terminal Building Capital Replacement & Improvement 311 Growth Common Use Counter Expansion

1,565,000

(1,565,000)

510,000

(510,000)

440,000

(440,000)

720,000

(720,000)

4,435,000

(4,435,000)

33,600,000 (33,600,000)

A4 - AIF

33,600,000 (33,600,000)

Cost Center Totals

39,025,000 (39,025,000)

309 Renew Small Capital Projects A1 - Airside 309 New

Groundside Technology A2 - Groundside

311 Renew Combined Operations Building Refurbishment 312 Growth Air Terminal Building Office Renovation A3 - Terminal 312 Growth Airport Soaring Beyond 2.5 Million Passengers AIF Program

Water Capital - Priority 1 608,000

(283,900)

(324,100)

608,000

(283,900)

(324,100)

231,000

(100,000)

(131,000)

W4 - DCC Reservoirs & Filling Stations

231,000

(100,000)

(131,000)

Offsite & Oversize - Water

143,800

(71,900)

143,800

(71,900)

385 Renew Water Meter Replacement Program

1,930,000

(1,930,000)

386 Renew Water Network and Facility Renewal

1,170,000

(1,170,000)

350,000

(350,000)

3,450,000

(3,450,000)

384 Growth Royal View Transmission Mainline Knox to Gordon W1 - DCC Pipes (Mains) 384 Growth Summit Reservoir DCC

385 New

W5 - DCC Offsite & Oversize

386 Renew PRV Renewal - Potable System W6 - Network and Facility Renewal

Page 299

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Asset Cost

Reserve

Borrow

Grant

Other

Utility

387 Renew Fireflow Upgrades

363,000

(363,000)

387 New

Kelowna Water Integration Plan

300,000

(300,000)

388 New

Water Meter - New Installations

150,000

(150,000)

W7 - Network and Facility Improvements

813,000

(300,000)

(150,000)

(363,000)

388 New

Description

200,000

(200,000)

389 Renew PRV Renewal - Non Potable System

500,000

(500,000)

389 New

Hydrants

20,000

(20,000)

390 New

Non-Potable System Watershed Monitoring Equipment

41,000

(41,000)

W8 - Irrigation Network Improvements

761,000

(741,000)

(20,000)

Cost Center Totals

6,006,800

(1,496,800)

(150,000)

(4,360,000)

396 Growth Glenmore Connection - Glenmore Rd from Cross Rd to Scenic Rd 396 Growth Lakeshore Trunk - (Swordy - Barrera)

296,900

(269,300)

(27,600)

239,000

(150,300)

(88,700)

WW1 - DCC Pipes (Mains)

535,900

(419,600)

(116,300)

1,550,000

(585,900)

(964,100)

1,550,000

(585,900)

(964,100)

120,000

(60,000)

120,000

(60,000)

3,021,700

(3,021,700)

1,250,000

(1,250,000)

728,300

(728,300)

5,000,000

(5,000,000)

Air Filtration Commonage Mix Building

110,000

(36,700)

(73,300)

Wastewater Treatment Odour Control Media Replacement O&M 400 Renew KLO Rd Mission Creek Sewer Connection

1,150,000

(1,150,000)

900,000

(240,000)

0 (660,000)

WW6 - Network and Facility Improvements

2,160,000

(240,000)

0 (660,000)

(36,700)

(1,223,300)

Cost Center Totals

9,365,900

(1,305,500)

0 (660,000)

(36,700)

(7,363,700)

54,397,700 (41,827,300)

0 (660,000)

(186,700)

(11,723,700)

Non-Potable System Capital Plan

Wastewater Capital - Priority 1

397 Growth Water St Lift Station WW2 - DCC Lift Stations 397 Growth Offsite & Oversize - Wastewater WW4 - DCC Oversize 398 Renew Renewal - Wastewater Mains and Facilities 398 Renew Burtch Trunk 399 Renew Lift Station Renewal WW5 - Network and Facility Renewal 399 New 400 New

Grand Total

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 300

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2023 Capital Requests Preliminary Budget Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

258,400

(258,400)

L1 - General Land

258,400

(258,400)

Growth DCC Road Widening, Land Acquisition

140,000

(140,000)

New

Road & Sidewalk, Land Acquisition

50,000

(50,000)

L2 - Road and Sidewalk Land Acquisition

190,000

(190,000)

Cost Center Totals

448,400

(448,400)

911,200

(911,200)

B1 - Parks and Recreation Buildings

911,200

(911,200)

Growth Rutland Fire Hall No.3, Renovation Design Growth North Glenmore Fire Training Centre Design

95,200

(95,200)

190,400

(190,400)

B3 - Civic/Protective Service Buildings

285,600

(285,600)

Renew Heritage Asset Management Program

149,600

(149,600)

B5 - Heritage Buildings

149,600

(149,600)

625,000

(625,000)

250,000

(250,000)

B7 - Renewal, Rehabilitation & Infra.

875,000

(875,000)

Cost Center Totals

2,221,400

(2,221,400)

200,000

(200,000)

Real Estate and Parking Capital - Priority 2 New

General Land, Acquisition

Building Capital - Priority 2 Renew Parks Washrooms Renovations or Replacement

New

EV Infrastructure Upgrades

Renew H2O - Renewal

Parks Capital - Priority 2 Renew Access For All Improvements

1,730,000

(1,730,000)

Renew Park Infrastructure Renewal Protective Netting & Garbage Cans Renew Parking Renewal

230,000

(230,000)

325,000

(325,000)

Renew Pedestrian Bridge Renewal

300,000

(300,000)

2,785,000

(2,785,000)

O&M Renew Irrigation Renewal

P8 - Renewal, Rehabilitation & Infra

Page 301

2023 FINANCIAL PLAN

Page Type New

CITY OF KELOWNA

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

Capital Opportunities & Partnership Fund

500,000

(500,000)

P9 - Capital Opportunities Partnership

500,000

(500,000)

Cost Center Totals

3,285,000

(3,285,000)

459,000

(459,000)

T4 - Transportation System Renewal

459,000

(459,000)

Cost Center Totals

459,000

(459,000)

2,941,700

0 (1,176,700)

(1,765,000)

2,941,700

0 (1,176,700)

(1,765,000)

120,000

(120,000)

120,000

(120,000)

229,500

(229,500)

D3 - Storm Water Renewal

229,500

(229,500)

Cost Center Totals

3,291,200

0 (1,176,700)

(2,114,500)

80,000

(80,000)

80,000

(80,000)

V1 - Additional Vehicles / Equipment

160,000

(160,000)

Cost Center Totals

160,000

(160,000)

Grand Total

9,865,000

0 (1,176,700)

(8,688,300)

Transportation Capital - Priority 2 Renew Road Renewal Program

Storm Drainage Capital - Priority 2 New

Mill Creek Flood Protection D1 - Hydraulic Upgrading Program

Renew Catch Basin Trapping Hood Retrofit Program D2 - Storm Drainage Quality Program Renew Stormwater Pond Asset Renewal Program

Vehicle & Mobile Equipment - Priority 2 OP OP

Growth Fleet Growth - Facilities Services Position Growth Fleet Growth - Facility Operations Coordinator Position

Page 302

2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Summary - Utility Funds Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

500,000

(500,000)

W3 - DCC Water Treatment

500,000

(500,000)

Cost Center Totals

500,000

(500,000)

Grand Total

500,000

(500,000)

Water Capital - Priority 2 Growth UV Treatment Systems Upgrades

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

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AIRPORT

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2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Airport Capital Summary - Airport Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

140,000

(140,000)

Airport Capital - Priority 1 308 New

Bridge Gantries

308 New

Taxiway and Utilities Construction

390,000

(390,000)

180,000

(180,000)

710,000

(710,000)

280,000

(280,000)

280,000

(280,000)

310 Renew Airport Roof Replacement Program

1,200,000

(1,200,000)

310 Renew Airport Air Terminal Building Capital Replacement & Improvement 311 Growth Common Use Counter Expansion

1,565,000

(1,565,000)

510,000

(510,000)

440,000

(440,000)

720,000

(720,000)

4,435,000

(4,435,000)

33,600,000 (33,600,000)

A4 - AIF

33,600,000 (33,600,000)

Cost Center Totals

39,025,000 (39,025,000)

Grand Total

39,025,000 (39,025,000)

309 Renew Small Capital Projects A1 - Airside 309 New

Groundside Technology A2 - Groundside

311 Renew Combined Operations Building Refurbishment 312 Growth Air Terminal Building Office Renovation A3 - Terminal 312 Growth Airport Soaring Beyond 2.5 Million Passengers AIF Program

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 307

2023 FINANCIAL PLAN

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2023 Capital Request Details Department: Cost Center:

Capital Projects Airport Capital

Title:

Bridge Gantries

Priority: 1 10 Yr Cap Plan Ref: Not Included A1

New

PRELIMINARY

Justification: Budget is requested for the purchase of two bridge gantries. A bridge gantry provides a connection from a passenger boarding bridge to an aircraft. Certain passenger boarding bridges at the Airport are currently not able to load Q400 aircraft and these bridge gantries would allow these passenger boarding bridges to load Q400's going forward, which would improve customer service and meet incoming Accessible Transportation for Persons with Disabilities Regulations.

Expected Completion: Dec 2023 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 140,000

Reserve (140,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 New Priority: 1 10 Yr Cap Plan Ref: 2023 A1 - $389.3k

Department: Cost Center:

Capital Projects Airport Capital

Title:

Taxiway and Utilities Construction

PRELIMINARY

Justification: Budget is requested to construct a taxiway for small aircraft and extend utilities on the east side of the runway at the north end. This would provide two flying schools with the ability to relocate to this location, which would help the growth of flying schools at the Airport. There are no operation and maintenance budget impacts associated with this request for 2023. Future operation and maintenance budget impacts will be included in the appropriate years, once construction is complete.

Expected Completion: Dec 2023 Strategic Direction: Economic resiliency - Key economic sector impact is increasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 390,000

Reserve (390,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 308

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 A1 - $177.9k

Department: Cost Center:

Capital Projects Airport Capital

Title:

Small Capital Projects

PRELIMINARY

Justification: Budget is requested for smaller capital projects that need to be implemented expeditiously. Historically, Airport Small Capital has been used to fund projects such as the replacement of lights on the apron's edge, the purchase of a disabled aircraft remover and the addition of drainage near the outbound oversized baggage system.

Reserve (180,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Priority: 1 10 Yr Cap Plan Ref: Not Included A2

Department: Cost Center:

Capital Projects Airport Capital

Title:

Groundside Technology

New

PRELIMINARY

Justification: Budget is requested for the purchase of parking equipment for the Convair parking lot, radio frequency identification (RFID) equipment for the front curb, and a portable digital programmable sign. The purchase of parking equipment would allow for automated payment and will integrate with the Airport's existing parking lot equipment systems. The implementation of RFID equipment will help manage curbside activity and allow the Airport to seamlessly process payment for taxis and ride-share services, which will increase efficiencies. The programmable sign will allow for more agile roadside communication with the public.

Reserve (280,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 309

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: Not included A3

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Roof Replacement Program

PRELIMINARY

Justification: The roof replacement program is a multi-year project that is anticipated to be completed in 2023. The work that was planned for 2020 and 2021 was deferred as a part of the Airport's cost saving initiatives implemented in response to the significant impact of COVID-19. Budget is requested to complete the roof replacement program, as inflationary pressures were experienced in 2022.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Renew Priority: 1 10 Yr Cap Plan Ref: 2023 A3 - $1.3M

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Air Terminal Building Capital Replacement & Improvement

PRELIMINARY

Justification: The Air Terminal Building (ATB) capital replacements and improvements project consists of modifications to the ATB and the equipment within it to improve the operations of the Airport. Budget is requested for the most significant replacements and improvements including the replacement of high-intensity discharge (HID) lighting with light emitting diode (LED) lighting, further improvements to the public announcement system, transition to common use terminal equipment at check-in and departures, and replacement of air handling units and fan coils.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 310

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: Not Included A3

Department: Cost Center:

Capital Projects Airport Capital

Title:

Common Use Counter Expansion

PRELIMINARY

Justification: Budget is requested to expand the number of common use counters and common use self-serve units at the check-in area in the air terminal building. As YLW is forecasting 2.1M passengers for 2023, this project would increase check-in capacity and decrease customer wait times.

Reserve (510,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Renew Priority: 1 10 Yr Cap Plan Ref: 2023 A3 - $167k

Department: Cost Center:

Capital Projects Airport Capital

Title:

Combined Operations Building Refurbishment

PRELIMINARY

Justification: Budget is requested to complete a lifecycle replacement of the heating, ventilation and air conditioning system in the Combined Operations Building, and to design conceptual options and determine corresponding costs for the future refurbishment and use of the existing Combined Operations Building after the new Combined Operations Building is built.

Reserve (440,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 311

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: Not included A3

Department: Cost Center:

Capital Projects Airport Capital

Title:

Air Terminal Building Office Renovation

PRELIMINARY

Justification: Budget is requested for design and renovation of the Airport offices used by the City of Kelowna. This renovation would provide additional work spaces aligned with the Airport's 5-Year Human Resources Plan and the office demolition required as a part of the Airport terminal building expansion.

Reserve (720,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Growth Priority: 1 10 Yr Cap Plan Ref: 2023 A4 - $9.9M

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Soaring Beyond 2.5 Million Passengers AIF Program

PRELIMINARY

Justification: The Airport is requesting budget to design, construct and make purchases for certain aspects of the Soaring Beyond 2.5 Million Passengers AIF Program. The funding would be allocated as follows: construction of the air terminal building expansion, airside pavement rehabilitation on Apron 3 and Taxiway Charlie, CUSS/CUTE (common use) equipment replacement at the end of its useful life, purchase of two runway snow plow sweeper combos, purchase of a multipurpose vehicle, passenger boarding bridge programmable logic controller upgrades, and purchase of a light electric vehicle. $67.3M was approved in the 2020 Budget for construction of the air terminal building. Additional budget is being requested due to inflationary pressures.

Expected Completion: Dec 2026 Strategic Direction: Economic resiliency - Key economic sector impact is increasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 33,600,000 (33,600,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 312

FIRE

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2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Fire Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

316 Renew Fire Equipment Replacement

72,000

(72,000)

316 New

Digital Fire Training System

55,000

(55,000)

F2 - Additional Vehicles / Equipment

127,000

(127,000)

184,500

(184,500)

F3 - Communications Systems

184,500

(184,500)

Cost Center Totals

311,500

(311,500)

Grand Total

311,500

(311,500)

Fire Capital - Priority 1

317 Renew Fire Communications Equipment Renewal

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 315

2023 FINANCIAL PLAN

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2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 F2 - $63k

Department: Cost Center:

Capital Projects Fire Capital

Title:

Fire Equipment Replacement

PRELIMINARY

Justification: Budget is requested for the replacement of six sets of Self Contained Breathing Apparatus (SCBA) and fifteen air cylinders. The fire equipment reserve will fund both the SCBA and the air cylinders. The Fire Department has developed a long term replacement strategy to ensure SCBA units are replaced as they reach the end of useful life.

Reserve (72,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Priority: 1 10 Yr Cap Plan Ref: 2023 F2 - $55k

Department: Cost Center:

Capital Projects Fire Capital

Title:

Digital Fire Training System

New

PRELIMINARY

Justification: Budget is requested for an ATTACK Digital Fire Training System (DFTS). The ATTACK DFTS combines digital flames, sound and smoke to create a range of fire conditions that respond directly to hose line application either water or laser in areas that would be water sensitive. This system allows firefighters to quickly run repeatable and variable evolutions in a wide variety of environments such as acquired structures, training towers or any other location where live fire is not practical. The DFTS allows training of new recruits in a safe environment and greatly reduces the exposure to heat and harmful carcinogens during training exercises for all fire suppression and training branch personnel. Further, there is a decreased environmental impact as this system would drastically decrease the need for real live fires for training purposes. Expected Completion: Sep 2023 Strategic Direction: Other - Supports Base Business Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 55,000

Reserve (55,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 316

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 F3 - $185k

Department: Cost Center:

Capital Projects Fire Capital

Title:

Fire Communications Equipment Renewal

PRELIMINARY

Justification: Budget is requested to support the implementation of Next Generation 911 (NG911) compliant equipment, to support Kelowna Fire Department Dispatch as it works to meet the Canadian Radio-television and Telecommunications (CRTC) mandated NG911 launch before 2025. This work includes phone and required technology upgrades as planned for in the 10-year Capital Plan. Budget is also requested for a phone system specific software upgrade to support computer software which will allow callers to text and video call 911. The softphone allows users to make telephone calls over the internet via a computer or smartphone.

Reserve (184,500)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

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INFORMATION SERVICES

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Information Services Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

503,300

(503,300)

503,300

(503,300)

50,000

(50,000)

50,000

(50,000)

370,000

(370,000)

370,000

(370,000)

0 (1,389,600)

(231,600)

(50,000)

1,621,200 50,000

I4 - Communications Systems

1,671,200

0 (1,389,600)

(50,000)

(231,600)

Cost Center Totals

2,594,500

(370,000) (1,389,600)

(50,000)

(784,900)

Grand Total

2,594,500

(370,000) (1,389,600)

(50,000)

(784,900)

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 321

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Front Office Equipment

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 I1 - $503k PRELIMINARY

Justification: This capital program funds the lifecycle of roughly 1,200 staff desktop computers, laptops, tablets, monitors and systems that enable all meeting spaces (virtual and in-person). With recent changes to how staff work, the shift to providing a mobile-friendly environment for information workers is imminent. Budget is requested for new software purchases, annual Microsoft licensing, as well as cyber security initiatives that are also covered under this program. Without up-to-date workstations (eg. laptops, desktop computers), service levels will decrease resulting in higher service incidents and hardware failures.

Expected Completion: Dec 2023 Strategic Direction: Clear direction - Services, processes & business activities are transformed Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 503,300

Reserve 0

Borrow 0

Department: Cost Center:

Capital Projects Information Services Capital

Title:

Server and Data Storage

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (503,300)

Priority: 1 10 Yr Cap Plan Ref: 2023 I2 - $50k

Renew

PRELIMINARY

Justification: The Server and Data Storage project funds capital investments for the data center. Budget is requested to continue to build and implement disaster recovery infrastructure. This project also supports the cyber security program to help protect the City's digital assets.

Expected Completion: Dec 2023 Strategic Direction: Clear direction - Services, processes & business activities are transformed Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 50,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (50,000)

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Major Systems Projects

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 I3 - $370k PRELIMINARY

Justification: Budget is requested to fund data analytics solutions and dashboards to help with better decision making. This request will also fund the continued effort to automate and digitize processes with the goal of providing a better staff and citizen experience. The City's Bylaw request system will also be replaced with this funding request. A new system will give staff and citizens a modern experience with Bylaw Services and provide better analytics on incoming requests.

Reserve (370,000)

Borrow 0

Department: Cost Center:

Capital Projects Information Services Capital

Title:

Network as a Service

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 I4 - $361k PRELIMINARY

Justification: The City is moving to network as a service versus on-premise network due to the constantly increasing complexity, number of upgrades, extensive training requirements and cyber threats. The network is the foundation for all City IT infrastructure and systems. This contract includes all implementation, deployment and ongoing upgrades and security patches. The contract will assess needs and renegotiate the next contract in year six. Expected Completion: Dec 2023 Strategic Direction: Clear direction - Services, processes & business activities are transformed Asset Cost 1,621,200

Reserve 0

Borrow (1,389,600)

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (231,600)

Revenue 0 0 0

Utility 0 0 0

Operating Impact: Network as a Service 2023 2024 2025

Cost 36,000 267,600 267,600

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation (36,000) (267,600) (267,600)

Page 323

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Fibre Optic Service Line

Priority: 1 10 Yr Cap Plan Ref: 2023 I4 - $50k

New

PRELIMINARY

Justification: Budget is requested for the installation of fibre optic service lines to new customers. New customers will cover all costs associated with the installation.

Expected Completion: Dec 2023 Strategic Direction: Financial management - Non-tax revenues are increasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 50,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com (50,000)

Utility 0

Taxation 0

Page 324

REAL ESTATE & PARKING

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Real Estate and Parking Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

1,958,600

(1,000,000)

(958,600)

1,958,600

(1,000,000)

(958,600)

Road & Sidewalk, Land Acquisition

25,000

(25,000)

L2 - Road and Sidewalk Land Acquisition

25,000

(25,000)

Real Estate and Parking Capital - Priority 1 328 New

General Land, Acquisition L1 - General Land

328 New

329 Renew Downtown Parkades-Major Maintenance 329 Renew Parking Equipment and Facilities

250,000

(250,000)

192,500

(192,500)

330 New

300,000

(300,000)

L3 - Parking Infrastructure

742,500

(742,500)

Strategic Land Servicing Requirements

250,000

(250,000)

L4 - Strategic Land Redevelopment

250,000

(250,000)

Cost Center Totals

2,976,100

(1,992,500)

(983,600)

Grand Total

2,976,100

(1,992,500)

(983,600)

330 New

Electric Vehicle Infrastructure and Strategic Initiatives

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

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2023 Capital Request Details Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

General Land, Acquisition

New Priority: 1 10 Yr Cap Plan Ref: 2023 L1 - $1.96M PRELIMINARY

Justification: Budget is requested to purchase land that meets the characteristics and parameters identified in the City of Kelowna's Land Strategy. Potential considerations in the purchase of specific lands includes: facilitating land assemblies of strategic value to the City, creating a revenue generating land bank, and enhancing the City's ability to revitalize and redevelop areas within our community. The City has successfully acquired strategic lands to facilitate a number of unique initiatives in recent years, including the Innovation Centre, Interior Health Authority, Ella site, and Central Green. Given the ability of land to meet the ever-increasing complex challenges of our community, it is imperative that the City continue to capitalize on opportunities as they come available.

Borrow 0

Fed/Prov 0

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Road & Sidewalk, Land Acquisition

Dev/Com 0

Utility 0

Taxation (958,600)

Priority: 1 10 Yr Cap Plan Ref: 2023 L2 - $25k

New

PRELIMINARY

Justification: As documented by the Infrastructure Division, budget is requested to fund the acquisition of land necessary for the widening of roads and the expansion of the City's sidewalk network. Budget will also be used to fund road widenings in excess of the 20 metre width that is a requirement of the development approval process. Acquisitions are targeted towards key missing connections in the City's existing road and sidewalk network and will be focused in the City's core.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (25,000)

Page 328

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Downtown Parkades-Major Maintenance

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 L3 - $250k PRELIMINARY

Justification: Budget is requested to complete several preventative maintenance items necessary to ensure maximum life expectancy for City owned parkades. The Library Parkade requires exterior waterproofing, caulking, flashing replacement and staircase crack repairs. The Chapman Parkade requires replacement of sprinkler system piping and exterior masonry repairs.

Reserve (250,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 L3 - $193k

Title:

Parking Equipment and Facilities

PRELIMINARY

Justification: Budget is requested to renew parking infrastructure and invest in efficient parking management by replacing equipment that has reached its end of life or to allow for expansion into new areas. Renewal of parking pay stations/meters, enforcement equipment, servers, and security cameras are included.

Expected Completion: Dec 2023 Strategic Direction: Other - Supports Base Business Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 192,500

Reserve (192,500)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 329

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2023 L3 - $150k

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Electric Vehicle Infrastructure and Strategic Initiatives

New

PRELIMINARY

Justification: Budget is requested for funds to continue expanding the number of electric vehicle charging stations in City owned parking lots and parkade facilities. This may include an increase in the quantity of Level 1 & 2 chargers in the City Hall lot and three city parkades or new locations identified by the EV Infrastructure gap analysis. Any new installations will continue to follow the Electric Vehicle Strategy. Staff will continue to pursue partnership and grant opportunities to maximize the value of these funds. The amount of this request was increased from the 10-year capital plan to ensure funding is available to address results of the EV Infrastructure gap analysis, completed in late 2022.

Expected Completion: Dec 2023 Strategic Direction: Environmental protection - Greenhouse gas emissions are decreasing Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 300,000

Reserve (300,000)

Borrow 0

Fed/Prov 0

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Strategic Land Servicing Requirements

Dev/Com 0

Utility 0

Taxation 0

Priority: 1 10 Yr Cap Plan Ref: 2023 L4 - $250k

New

PRELIMINARY

Justification: The mandate of the Strategic Land Development department is to identify future strategic land assemblies, add value to real property dispositions and realize corporate objectives and the Official Community Plan through creative real estate strategies. Budget is requested to fund several projects and properties that have been identified to have the potential to return social, economic, environmental and cultural benefits to the City.

Reserve (250,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 330

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Real Estate and Parking Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

258,400

(258,400)

L1 - General Land

258,400

(258,400)

Growth DCC Road Widening, Land Acquisition

140,000

(140,000)

New

Road & Sidewalk, Land Acquisition

50,000

(50,000)

L2 - Road and Sidewalk Land Acquisition

190,000

(190,000)

Cost Center Totals

448,400

(448,400)

Grand Total

448,400

(448,400)

Real Estate and Parking Capital - Priority 2 New

General Land, Acquisition

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

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Page 332

BUILDING

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Building Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

3,900,000

(3,900,000)

B1 - Parks and Recreation Buildings

3,900,000

(3,900,000)

North Glenmore Fire Hall No.5 - Design

866,600

(814,600)

(52,000)

95,200

(95,200)

961,800

(909,800)

(52,000)

1,000,000

(1,000,000)

B6 - Capital Opportunities and Partnerships

1,000,000

(1,000,000)

338 Renew Kelowna Family Y - Building Renewal

1,350,000

(108,000)

(1,242,000)

338 Renew General Building Infrastructure Renewal - Critical Renewal 339 Renew Water Street Boat Launch Renewal

1,400,000

(933,000)

(467,000)

575,000

(575,000)

O&M 339 Renew Kelowna Community Theatre Improvements 340 Renew Facility Energy Modernization Renewal

92,000

(92,000)

250,600

(250,600)

B7 - Renewal, Rehabilitation & Infra.

3,667,600

(1,958,600)

(1,709,000)

Cost Center Totals

9,529,400

(7,768,400)

(1,761,000)

Grand Total

9,529,400

(7,768,400)

(1,761,000)

Building Capital - Priority 1 **

336 Renew Kelowna Community Campus Building and Site Works

336 New

337 Growth Rutland Community Policing Office Expansion - Design B3 - Civic/Protective Service Buildings 337 Growth Capital Opportunities & Partnership Fund

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request **This item is to be removed from the 2023 Preliminary Budget and brought forward later in 2023 as Council approves related project milestones

Page 335

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 B1 - $164.8M

Department: Cost Center:

Capital Projects Building Capital

Title:

Kelowna Community Campus - Building and Site Works

PRELIMINARY

Justification: The design process for a replacement recreation centre and associated site works at Parkinson Recreation Park is in progress. The volatile construction market and considerable cost escalation witnessed over the last couple years have resulted in the requirement of a greater level of design certainty with the design/construction team before finalizing costs. Budget of $3.9M is requested to conclude this design work and achieve cost certainty. A subsequent budget request for construction funding is expected to be presented to Council later in 2023, which will be subject to community borrowing approval.

Expected Completion: Dec 2026 Strategic Direction: Vibrant neighbourhoods - Accessible and multi-purpose amenities Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 3,900,000 (3,900,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Priority: 1 10 Yr Cap Plan Ref: 2023 B3 - $866k

Department: Cost Center:

Capital Projects Building Capital

Title:

North Glenmore Fire Hall No.5 - Design

New

PRELIMINARY

Justification: A site has been identified for a new fire hall to serve North Glenmore and areas of our City further north. Budget is requested for the design of this fire hall as a priority to maintain adequate fire coverage for this part of the City. A subsequent budget request for construction funding will be submitted in 2024.

Expected Completion: Dec 2023 Strategic Direction: Community Safety - Residents feel safe Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 866,600

Reserve (814,600)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (52,000)

Page 336

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 B3 - $95k

Department: Cost Center:

Capital Projects Building Capital

Title:

Rutland Community Policing Office Expansion - Design

PRELIMINARY

Justification: The need for additional space at the Rutland Community Policing Office (CPO) has been identified. Budget is requested for the scoping and design of the expansion of this CPO, as a priority to maintain adequate service for this part of the City. A subsequent budget request for construction funding will be submitted in 2024.

Reserve (95,200)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 B6 - $1M

Department: Cost Center:

Capital Projects Building Capital

Title:

Capital Opportunities & Partnership Fund

PRELIMINARY

Justification: The City receives multiple unsolicited proposals for partnerships in our building portfolio, often from the community, sports or special interest groups. Budget is requested for the Capital Opportunities and Partnership program which provides capital funding for any municipal commitments associated with these partnerships.

Expected Completion: Dec 2024 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 1,000,000 (1,000,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 337

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 B7 - $1.35M

Department: Cost Center:

Capital Projects Building Capital

Title:

Kelowna Family Y - Building Renewal

PRELIMINARY

Justification: Budget is requested to fund energy improvements, end of life building system renewals, and address regulatory deficiencies at the Kelowna Family Y, identified through building condition assessment and energy studies. Work includes building envelope, electrical systems, and pool mechanical.

Expected Completion: Dec 2023 Strategic Direction: Economic resiliency - Infrastructure deficit is reduced Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 1,350,000

Reserve (108,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (1,242,000)

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 B7 - $466k

Department: Cost Center:

Capital Projects Building Capital

Title:

General Building Infrastructure Renewal - Critical Renewal

PRELIMINARY

Justification: Budget is requested to fund various end of life building system projects identified through condition assessments include building envelope renewals, Mechanical, Electrical, Plumbing (MEP) Renewals, and H2O Renewal.

Expected Completion: Dec 2023 Strategic Direction: Economic resiliency - Infrastructure deficit is reduced Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 1,400,000

Reserve (933,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (467,000)

Page 338

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: Not included B7 - $0

Department: Cost Center:

Capital Projects Building Capital

Title:

Water Street Boat Launch Renewal

PRELIMINARY

Justification: Budget is requested to replace existing docks at the Water Street Boat Launch, which have been identified as being at the end of their lifecycle, as well as to install a staging and moorage arm at the end of the northern most launch dock. This will enhance the overall safety of the launch and increase the efficiency of traffic flow for launch users.

Expected Completion: Mar 2023 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 575,000

Reserve (575,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Renew Priority: 1 10 Yr Cap Plan Ref: Not included B7

Department: Cost Center:

Capital Projects Building Capital

Title:

Kelowna Community Theatre Improvements

PRELIMINARY

Justification: Budget is requested for a series of improvement and replacement projects to enhance operations at the Kelowna Community Theatre (KCT). These items include upgrading the Juliet Balcony to renovate storage area and create staff office space, replacement of the stage deck and the replacement of the stage drape. The KCT exterior sign requires updating and installation which will provide advertising and wayfinding for the box office housed in the building. Finally, the Concession display fridges are nearing the end of their useful life and require replacement. Expected Completion: Dec 2023 Strategic Direction: Vibrant neighbourhoods - Accessible and multi-purpose amenities Asset Cost 92,000

Reserve (92,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Revenue (5,000) (5,000) (5,000)

Utility 0 0 0

Operating Impact: Kelowna Community Theatre Improvements 2023 2024 2025

Cost 3,600 3,600 3,600

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation 1,400 1,400 1,400

Page 339

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 B7 - $250k

Department: Cost Center:

Capital Projects Building Capital

Title:

Facility Energy Modernization Renewal

PRELIMINARY

Justification: In support of corporate goals to reduce Greenhouse Gas (GHG) emissions and energy consumption, budget is requested for the renewal and replacement of inefficient energy systems within City facilities. Work includes energy loss retrofits, LED lighting retrofits, variable frequency drive (VFD) installations, building envelope maintenance, consulting services, etc. Rebate and grant opportunities will exist for the variety of proposed work. This work will keep buildings operational while lowering operating costs over the life of the facility. This work is a proposed ongoing program beginning in Q1 2023. A reduction in energy costs will be achieved.

Expected Completion: Dec 2023 Strategic Direction: Environmental protection - Greenhouse gas emissions are decreasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 250,600

Reserve (250,600)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 340

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Building Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

911,200

(911,200)

B1 - Parks and Recreation Buildings

911,200

(911,200)

Growth Rutland Fire Hall No.3, Renovation Design Growth North Glenmore Fire Training Centre Design

95,200

(95,200)

190,400

(190,400)

B3 - Civic/Protective Service Buildings

285,600

(285,600)

Renew Heritage Asset Management Program

149,600

(149,600)

B5 - Heritage Buildings

149,600

(149,600)

625,000

(625,000)

250,000

(250,000)

B7 - Renewal, Rehabilitation & Infra.

875,000

(875,000)

Cost Center Totals

2,221,400

(2,221,400)

Grand Total

2,221,400

(2,221,400)

Building Capital - Priority 2 Renew Parks Washrooms Renovations or Replacement

New

EV Infrastructure Upgrades

Renew H2O - Renewal

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

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Page 342

PARKS

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Parks Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

16,936,300 (15,346,300)

(1,590,000)

16,936,300 (15,346,300)

(1,590,000)

Parks Capital - Priority 1 346 Growth DCC Parkland Acquisition P1 - DCC Parkland Acquisition 346 Growth Burne Park (DCC) - Design

279,200

(174,200)

(105,000)

279,200

(174,200)

(105,000)

4,928,800

(4,355,900)

(572,900)

4,928,800

(4,355,900)

(572,900)

6,830,400

(3,721,600)

(3,108,800)

P5 - Recreation Park Development

6,830,400

(3,721,600)

(3,108,800)

348 Growth Pandosy Waterfront Park (DCC) - Phase 2

168,000

(93,000)

(75,000)

P6 - City-wide Park Development

168,000

(93,000)

(75,000)

O&M 348 Renew Knox Mountain Park - Improvements

276,500

(276,500)

P7 - Linear/Natural Area Park Development

276,500

(276,500)

300,000

(117,300)

(182,700)

538,000

(538,000)

P3 - Neighbourhood Park Development 347 Growth DeHart Park (DCC) P4 - Community Park Development O&M 347 Growth Glenmore Recreation Park (DCC) Phase 3

O&M 349 Renew Irrigation Renewal 349 New

Kelowna Memorial Park Cemetery Improvements 350 Renew Park Infrastructure Renewal

70,000

(70,000)

350 Renew Sport Courts/Water Parks/Skate Parks Renewal & Replacements New Parks Large Capacity Waste 351 O&M Receptacles

150,000

(150,000)

153,500

(153,500)

P8 - Renewal, Rehabilitation & Infra.

1,211,500

(958,800)

(252,700)

Cost Center Totals

30,630,700 (24,649,800)

(5,980,900)

Grand Total

30,630,700 (24,649,800)

(5,980,900)

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 345

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 P1 - $16.9M

Department: Cost Center:

Capital Projects Parks Capital

Title:

DCC Parkland Acquisition

PRELIMINARY

Justification: Budget is requested for the acquisition of land to be used for neighbourhood, community, city-wide, recreation and linear type parks. This is in accordance with the 20-Year Servicing Plan and Development Cost Charges (DCC) reserve funding availability. This is a multi-year program.

Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 16,936,300 (15,346,300)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (1,590,000)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 P3 - $279k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Burne Park (DCC) - Design

PRELIMINARY

Justification: The creation of a neighbourhood park on Burne Ave adjacent to Mill Creek has been a long-term goal for the City, and properties have been acquired over many years. Budget is now requested for the design of Burne Park, which has been identified as the next priority within the DCC neighbourhood park program. Design work will be coordinated with the Mill Creek Linear Park design and flood mitigation works. A subsequent budget request for construction funding will be submitted in 2024.

Expected Completion: Dec 2023 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 279,200

Reserve (174,200)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (105,000)

Page 346

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 P4 - $4.9M

Department: Cost Center:

Capital Projects Parks Capital

Title:

DeHart Park (DCC)

PRELIMINARY

Justification: DeHart Park is the first priority of three major community parks in the Parks Development DCC program. A budget of $6.4M was approved in 2022 for design and construction. Budget is now requested for the balance of the funding for construction. Construction of both budgets will be brought into a single contract to realize savings.

Expected Completion: Sep 2024 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 4,928,800 (4,355,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (572,900)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 P5 - $6.8M

Department: Cost Center:

Capital Projects Parks Capital

Title:

Glenmore Recreation Park (DCC) - Phase 3

PRELIMINARY

Justification: Glenmore Recreation Park is the primary recreation park project in the Parks Development DCC program, and will be constructed over multiple phases. The park also serves as an important community park space serving North Glenmore. Phases one and two have been completed, and were available for public use in 2021. Budget for the design of Phase three was approved in 2022, and budget is now requested for the construction. The prioritization of new sports courts and fields at this park will be closely coordinated with the design development of Parkinson Recreation Park, in order to accommodate relocated sports, and minimize disruption to field access during construction. Expected Completion: Jun 2024 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Asset Cost Reserve 6,830,400 (3,721,600)

Borrow 0

Fed/Prov 0

Operating Impact: Glenmore Recreation Park (DCC) - Phase 3 Cost Reserve Borrow Grant 2023 0 0 0 0 2024 75,000 0 0 0 2025 103,100 0 0 0

Dev/Com 0 Other 0 0 0

Utility 0

Taxation (3,108,800)

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (75,000) (103,100)

Page 347

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 P6 - $75k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Pandosy Waterfront Park (DCC) - Phase 2

PRELIMINARY

Justification: Budget is requested for the design of Phase two of Pandosy Waterfront Park. This phase includes hard landscaping works around the proposed new facility for the Kelowna Paddle Centre in accordance with the partnership agreement, road frontage improvements and a small parking lot. This budget request also includes the demolition of the existing building.The design and construction of the new facility will be funded by the Kelowna Paddle Centre. This is a multiyear project with completion of the design dependent on design and funding progress made by our partner. A subsequent budget request for the construction of the City's scope of work will be brought forward in 2024.

Reserve (93,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (75,000)

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 P7 - $276k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Knox Mountain Park - Improvements

PRELIMINARY

Justification: Knox Mountain Park continues to be one of the City's most popular parks, however it is a delicate ecosystem and the increasing numbers of users puts a heavy strain on the existing park infrastructure. The 2011 Council endorsed Knox Mountain Park, Management Plan is currently being updated in consideration of the large increase in use. The update includes a ten-year development plan covering both capital and operational items. Budget is requested for improvements to the first lookout, updated signage, and crib step replacement. This is a multi-year project with capital budget requests identified for the following eight years. Expected Completion: Dec 2024 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Asset Cost 276,500

Reserve 0

Borrow 0

Fed/Prov 0

Operating Impact: Knox Mountain Park - Improvements Cost Reserve Borrow Grant 2023 12,000 0 0 0 2024 37,100 0 0 0 2025 37,100 0 0 0

Dev/Com 0 Other 0 0 0

Utility 0

Taxation (276,500)

Revenue 0 0 0

Utility 0 0 0

Taxation (12,000) (37,100) (37,100)

Page 348

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Irrigation Renewal

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 P8 - $300k PRELIMINARY

Justification: Based on irrigation system audits, the life expectancy of the system, and the City's assessment criteria, budget is requested for the replacement of aging irrigation controllers throughout the City that are having an impact on the irrigation central control system, as well as for irrigation system renewal at city parks and sport fields.

Expected Completion: Dec 2023 Strategic Direction: Economic resiliency - Infrastructure deficit is reduced Asset Cost 300,000

Reserve (117,300)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (182,700)

Revenue 0 0 0

Utility 0 0 0

Operating Impact: Irrigation Renewal 2023 2024 2025

Cost 0 15,000 15,000

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation 0 (15,000) (15,000)

Priority: 1 10 Yr Cap Plan Ref: 2023 P8 - $526k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Kelowna Memorial Park Cemetery - Improvements

New

PRELIMINARY

Justification: Budget is requested for phase four of irrigation system upgrades at the Kelowna Memorial Park Cemetery (KMPC), This work includes a new irrigation extension to the entrance section of the park. KMPC is a highly sensitive site and efforts are made to ensure the construction does not affect other activities as much as possible. Additional works include office HVAC improvements, scheduled re-caulking of the Promontory Green and improvements to the Legacy Gardens.

Reserve (538,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 349

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 P8 - $70k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Park Infrastructure Renewal

PRELIMINARY

Justification: Glenmore Road North Greenspace was created with the construction of Glenmore Road North but has never had a water supply. Budget is requested for a water supply for the Glenmore Road North Greenspace to service the park space, including a proposed community garden and drinking water for dogs.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (70,000)

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 P8 - $150k

Department: Cost Center:

Capital Projects Parks Capital

Title:

Sport Courts/Water Parks/Skate Parks Renewal & Replacements

PRELIMINARY

Justification: Budget is requested for the renewal of waterslide equipment at Ben Lee Park, and the replacement of the ageing playground at Kinsmen Park which is thought to have been installed in the 1970's.

Reserve (150,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 350

2023 FINANCIAL PLAN

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2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: Not included P8

Department: Cost Center:

Capital Projects Parks Capital

Title:

Parks Large Capacity Waste Receptacles

New

PRELIMINARY

Justification: Parks Services manages over 1,200 waste receptacles throughout the City parks. Data collected from the Smart Waste Sensor Pilot (approved in 2022) shows that waste collection in many parks is required four or more times per day in peak season. Current waste containers have similar capacity as a residential unit. Budget is requested to start phasing out the older receptacles with large capacity units where data shows highest concentration. These larger units will reduce the staff time required to service the sites. Furthermore, many of these receptacles are not wildlife proof in the City's natural parks. Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Asset Cost Reserve Borrow Fed/Prov Dev/Com (153,500) 0 0 0 153,500

Utility 0

Taxation 0

Revenue 0 0 0

Utility 0 0 0

Operating Impact: Parks Large Capacity Waste Receptacles 2023 2024 2025

Cost 17,500 21,500 26,500

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation (17,500) (21,500) (26,500)

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2023 Capital Requests Preliminary Budget Parks Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

200,000

(200,000)

Parks Capital - Priority 2 Renew Access For All Improvements O&M

1,730,000

(1,730,000)

Renew Park Infrastructure Renewal Protective Netting & Garbage Cans Renew Parking Renewal

230,000

(230,000)

325,000

(325,000)

Renew Pedestrian Bridge Renewal

300,000

(300,000)

2,785,000

(2,785,000)

Capital Opportunities & Partnership Fund

500,000

(500,000)

P9 - Capital Opportunities Partnership

500,000

(500,000)

Cost Center Totals

3,285,000

(3,285,000)

Grand Total

3,285,000

(3,285,000)

Renew Irrigation Renewal

P8 - Renewal, Rehabilitation & Infra New

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Infrastructure Operating Impacts - Priority 2 Irrigation Renewal Grand Total

2023

2024

2025

10,000

20,000

10,000

20,000

Taxation

Page 352

VEHICLE & MOBILE EQUIPMENT

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Vehicle & Mobile Equipment Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

O&M 356 Growth Fleet Growth

472,000

O&M 356 New

Robotic Sports Field Line Painter

45,000

(45,000)

V1 - Additional Vehicles / Equipment

517,000

Other

Utility

Taxation

0 (362,700)

(109,300)

(45,000)

0 (362,700)

(109,300)

4,058,400

(4,058,400)

V2 - Vehicle / Equipment Renewal

4,058,400

(4,058,400)

Cost Center Totals

4,575,400

(4,103,400)

0 (362,700)

(109,300)

Grand Total

4,575,400

(4,103,400)

0 (362,700)

(109,300)

Vehicle & Mobile Equipment - Priority 1

357 Renew Vehicle/Equipment Renewal

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 355

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Vehicle & Mobile Equipment

Title:

Fleet Growth

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 V1 - $991k PRELIMINARY

Justification: As a result of increased service and maintenance demands, and regulatory requirements, budget is requested for an additional six pieces of equipment for various divisions within the City of Kelowna. Electric or Zero Emission Vehicles will be selected where possible.

Expected Completion: Dec 2023 Strategic Direction: Other - Supports Base Business Asset Cost 472,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (362,700)

Taxation (109,300)

Operating Impact: Fleet Growth 2023 2024 2025

Cost 48,600 97,100 97,100

Reserve 0 0 0

Borrow 0 0 0

Department: Cost Center:

Capital Projects Vehicle & Mobile Equipment

Title: Justification:

Robotic Sports Field Line Painter

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (31,900) (63,700) (63,700)

Taxation (16,700) (33,400) (33,400)

Priority: 1 10 Yr Cap Plan Ref: Not included V1

New

PRELIMINARY

City of Kelowna sports fields are known for their high quality of play. Staff take pride in their work, but as new fields are added to inventory, there is difficulty in keeping up with the line painting demand. Current inventory includes 36 regular fields, 3 mini/practice fields and 28 ball fields that are lined weekly. Tournaments require additional lining. Staff have hosted a new innovation in sports field lining. Budget is requested for a robotic line painter that utilizes GPS, and can complete a soccer field in less than half of the standard time. The new unit would allow staff to complete more fields and maintain the high standard as more fields continue to be added. Ongoing cost is the digital subscription; licensing and paint. Expected Completion: Feb 2023 Strategic Direction: Vibrant neighbourhoods - Animated parks & public spaces Asset Cost Reserve Borrow Fed/Prov Dev/Com 45,000 (45,000) 0 0 0

Utility 0

Taxation 0

Operating Impact: Robotic Sports Field Line Painter Cost Reserve Borrow 2023 10,000 0 0 2024 10,000 0 0 2025 10,000 0 0

Revenue 0 0 0

Utility 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation (10,000) (10,000) (10,000) Page 356

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Vehicle & Mobile Equipment

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 V2 - $6.1M

Title:

Vehicle/Equipment Renewal

PRELIMINARY

Justification: Internal rental rates contribute to the equipment replacement reserve throughout the course of the vehicle/equipment service life. Factoring in equipment type, seasonal use and equipment condition it was determined that 35 of these units required replacement. Budget is requested for the replacement of these units. Electric or Zero Emission Vehicles will be selected where possible.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 357

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Vehicle & Mobile Equipment Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

80,000

(80,000)

80,000

(80,000)

V1 - Additional Vehicles / Equipment

160,000

(160,000)

Cost Center Totals

160,000

(160,000)

Grand Total

160,000

(160,000)

Vehicle & Mobile Equipment - Priority 2 OP OP

Growth Fleet Growth - Facilities Services Position Growth Fleet Growth - Facility Operations Coordinator Position

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 358

TRANSPORTATION

2023 FINANCIAL PLAN

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2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Transportation Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

6,150,000

(5,407,800)

(742,200)

190,000

(175,300)

(14,700)

O&M 364 Growth Stewart DCC (Crawford - Swamp) 364 Growth Lakeshore 5 DCC (Swordy - Barrera), Road 365 Growth Major Intersection Capacity Improvements DCC 365 Growth Road Safety Improvements DCC

3,342,500

(3,224,300)

(118,200)

75,000

(59,600)

(15,400)

120,000

(120,000)

200,000

(200,000)

366 Growth Traffic Signals and Roundabouts DCC

200,000

(175,100)

(24,900)

T1 - DCC Roads

10,277,500

(9,362,100)

(915,400)

1,218,600

(1,141,900)

(76,700)

2,750,000

(2,467,900)

(282,100)

200,000

(149,200)

(50,800)

250,000

(81,000)

(169,000)

368 Growth Sutherland 1 Protected Bike Route (Lequime - Burtch) 369 Growth Rail Trail to Greenway DCC, ATC

1,568,000

(1,390,700)

(177,300)

85,000

(78,900)

(6,100)

O&M 369 Growth Glenmore 4 DCC (Kane - South Yates), ATC

409,200

(304,400)

(104,800)

T2 - DCC Roads - Active Transportation

6,480,800

(5,614,000)

(866,800)

370 Growth Hwy 97 Right Turn Lane to Pandosy

343,000

(250,000)

(93,000)

O&M 370 Growth Local Street Urbanization Program 371 Growth Roadway Urbanization

200,000

(100,000)

350,000

(350,000)

893,000

(350,000)

(193,000)

85,000

(50,000)

(35,000)

400,000

(300,000)

(100,000)

Transportation Capital - Priority 1 363 Growth Sutherland 3 DCC (Mill Creek - Spall), Road 363 Growth McCulloch Area DCC (KLO/Hall/Spiers)

T3 - Non-DCC Roads 371 Renew KLO Road Mission Creek Bridge Replacement 372 Renew Bridge Rehabilitation and Renewal Program 372 Renew Road Renewal Program

3,342,900

(3,299,800)

(43,100)

373 Renew Sidewalk & Bikeway Renewal Program

150,000

(150,000)

373 Renew Street Lighting Renewal Program

235,000

(200,000)

(35,000)

374 Renew Traffic Signal and Communications Renewal Program

260,000

(200,000)

(60,000)

4,472,900

(4,049,800)

(423,100)

T4 - Transportation System Renewal

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Page Type

CITY OF KELOWNA

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

500,000

(250,000)

T5 - Bicycle Network

500,000

(250,000)

O&M 375 Growth Crosswalk Safety, Signals and Flashers

150,000

(75,000)

O&M 375 Growth Sidewalk Network Expansion Program

650,000

(350,000)

(300,000)

T6 - Sidewalk Network

800,000

(425,000)

(375,000) (50,000)

O&M 374 Growth Bicycle Network Improvement Program

376 New

Safe Routes to School Program

100,000

(50,000)

376 New

Road Safety Partnerships with ICBC

150,000

(75,000)

377 New

Neighbourhood Traffic Calming Program

150,000

(150,000)

T7 - Safety and Operational Improvements

400,000

(125,000)

(275,000)

O&M 377 Growth Okanagan College Exchange Capacity Expansion O&M 378 New Transit - Bus Stop and Amenity Improvements Transit - Land Acquisition 378 New

1,240,000

(124,000)

0 (992,000)

(124,000)

150,000

(75,000)

70,000

(35,000)

T9 - Transit Facilities

1,460,000

(234,000)

0 (992,000)

(234,000)

Cost Center Totals

25,284,200 (20,409,900)

0 (992,000)

(350,000)

(3,532,300)

Grand Total

25,284,200 (20,409,900)

0 (992,000)

(350,000)

(3,532,300)

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 362

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $6.1M

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Sutherland 3 DCC (Mill Creek - Spall), Road

PRELIMINARY

Justification: Budget is requested for design and land acquisition to support the future Sutherland 3 Complete Street DCC project from west of Burtch to Dayton. This future project will run through the heart of Landmark providing drivers with an improved access option to Burtch, Harvey and Springfield. It will support travel by all modes - providing comfortable sidewalks, protected bike lanes, and transit for Landmark workers and residents. The project is identified in both the Capri-Landmark Urban Centre Plan and Transportation Master Plan. As a condition of development, the Landmark 7 office project will construct part of Sutherland Ave between Dickson Ave and Dayton St dependent on the City completing design and acquiring three properties.

Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - Investments are connecting high density areas Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 6,150,000 (5,407,800)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (742,200)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $190k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

McCulloch Area DCC (KLO/Hall/Spiers)

PRELIMINARY

Justification: The KLO bridge over Mission Creek is approaching the end of its service life. This project will replace the existing bridge, accommodate the Mission Creek Greenway under the west abutment, accommodate updated flood levels and improve the safety of road approaches. The McCulloch Area DCC Project addresses the east bridge approach. Replacement was planned in 2019, but was deferred in 2020 due to COVID-19 funding cuts. Construction is now planned for 2024/25. Budget is requested to update cost estimates, complete design and supplement funding for land acquisitions / Agricultural Land Commission (ALC) application. Updated cost estimates will be completed to assess the impacts of recent inflation and inform next steps.

Expected Completion: Dec 2024 Strategic Direction: Economic resiliency - Infrastructure deficit is reduced Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 190,000

Reserve (175,300)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (14,700)

Page 363

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $3.3M

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Stewart DCC (Crawford - Swamp)

PRELIMINARY

Justification: Budget is requested for the construction of the Stewart Road West DCC Phase 2 which includes the north end of Stewart Road West, Bedford Road from Stewart Road to Dehart Road, including intersection improvements at both locations. In 2022, detailed design was completed and required real estate acquisitions were initiated. This rural arterial corridor includes several segments of sub-standard road alignment, geometrics and intersection configurations. With the opening of South Perimeter Road in 2022, volumes are expected to increase and continue increasing with growth in the Upper Mission / Ponds neighbourhoods. Vertical and horizontal alignment adjustments and intersection upgrades are proposed to improve the safety performance and capacity of the corridor. Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - Travel times are optimized Asset Cost Reserve Borrow Fed/Prov Dev/Com 0 0 0 3,342,500 (3,224,300)

Utility 0

Taxation (118,200)

Operating Impact: There are operation and maintenance budget impacts and are included below Cost Reserve Borrow Grant Other Revenue Utility 2023 0 0 0 0 0 0 0 2024 4,000 0 0 0 0 0 0 2025 4,000 0 0 0 0 0 0

Taxation 0 (4,000) (4,000)

Priority: 1 10 Yr Cap Plan Ref: 2026 T1 - $0

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Lakeshore 5 DCC (Swordy - Barrera), Road

Growth

PRELIMINARY

Justification: Budget is requested for design of the Lakeshore 5 DCC Project between Swordy Road and Barrera Road. This work will explore opportunities to coordinate street improvements with upcoming utility replacements. Dependent on outcomes from the design phase, a budget request for construction in coordination with utility works may follow in 2024.

Reserve (59,600)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (15,400)

Page 364

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $120k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Major Intersection Capacity Improvements DCC

PRELIMINARY

Justification: Budget is requested for the new Major Intersection Capacity Improvements DCC program introduced in the Transportation Master Plan. This program aims to expand vehicle capacity at key arterial intersections that have network-level impacts and are experiencing traffic growth due to development. 2023 funding will undertake network screening, prioritization and design work. Project development work will support the delivery of future projects. As traffic volumes grow, and intersections reach capacity, safety issues can also arise. In many cases, the capacity improvements will be coordinated with safety improvements. 2023 funding will advance work on several intersections, including Springfield/Benvoulin/Dilworth.

Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - Travel times are optimized Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 120,000

Reserve (120,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $200k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Road Safety Improvements DCC

PRELIMINARY

Justification: Budget is requested for the new Road Safety Improvements DCC program introduced in the 2040 Transportation Master Plan. This program aims to address safety issues at arterial road intersections that are experiencing traffic and user growth. 2023 funding will undertake prioritization and design work. This project development work will support the delivery of future projects. As traffic volumes grow, and intersections reach capacity, safety issues also often arise. In many cases, safety improvements will be coordinated with capacity improvements. 2023 funding will advance work on several intersections, including Springfield/Benvoulin/Dilworth.

Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - People of all ages & abilities can easily get around Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 200,000

Reserve (200,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 365

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T1 - $200k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Traffic Signals and Roundabouts DCC

PRELIMINARY

Justification: Budget is requested for this annual program that improves intersection capacity and safety. The program is focused on existing major road intersections that require, or will require, new traffic control (traffic signals or roundabouts) to address rising traffic volumes. 2023 funding will advance design for several intersections evaluated and prioritized in 2022.

Reserve (175,100)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (24,900)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $1.2M

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Houghton 2 DCC (Hollywood - Mugford), ATC

PRELIMINARY

Justification: Budget is requested to fund the construction of the Houghton Active Transportation Corridor (ATC) between Hollywood Road and Rutland Road. Additional funding is requested to address property cost inflation, construction inflation and additional crossing infrastructure at Rutland Road. The Houghton ATC is a priority all ages and abilities cycling project within the Pedestrian Bicycle Master Plan. This project is the last phase of the Houghton ATC linking Rutland to the Okanagan Rail Trail and the larger primary cycling network. This project will connect the Rutland Urban Centre, the Shepherd Transit Exchange and Rutland Centennial Park to the rest of the City. Completion date is dependent on land acquisitions. Operation and maintenance budget impacts were identified concurrently with the original 2022 capital budget. Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 1,218,600 (1,141,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (76,700)

Page 366

2023 FINANCIAL PLAN

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2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $2.8M

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Casorso 3 DCC (Lanfranco - Barrera), ATC

PRELIMINARY

Justification: Budget is requested for the construction of the Casorso Active Transportation Corridor (ATC) from Lanfranco to Barrera. This is the last phase of the Casorso all ages and abilities cycling facility, which in combination with Ethel, will link together significant parts of the ATC network to the north (Sutherland, Cawston) and to the south (Barerra, Lakeshore, Gordon) creating a continuous corridor from Downtown to Okanagan College, Kelowna Secondary School (KSS), Pandosy Village, Casorso Elementary School and points south. The project includes protected bike lanes along Casorso, improvements at the intersection of Swordy and Bechard, and improvements for bicyclists and pedestrians in front of Casorso Elementary School, including consideration of school loading. Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost Reserve Borrow Fed/Prov Dev/Com Utility Taxation 2,750,000 (2,467,900) 0 0 0 0 (282,100) Operating Impact: There are operation and maintenance budget impacts and are included below Cost Reserve Borrow Grant Other Revenue Utility 2023 12,000 0 0 0 0 0 0 2024 26,750 0 0 0 0 0 0 2025 26,750 0 0 0 0 0 0

Taxation (12,000) (26,750) (26,750)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $200k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Bertram 1 DCC (Sutherland - Cawston), ATC

PRELIMINARY

Justification: Budget is requested to undertake the conceptual design of the Bertram Active Transportation Corridor (ATC) northsouth through downtown from the Okanagan Rail Trail to the Sutherland ATC. The Bertram ATC was identified in the 2040 Transportation Master Plan as a new north-south protected bike connection through downtown to support continued growth & development. The route will link from downtown to surrounding ATC facilities including the Okanagan Rail Trail, Cawston, Leon/Lawrence (future), the Bertram Multiuse Overpass and Sutherland. This route will support the new UBCO downtown campus. Concept designs will help inform current and future development applications, future budget requests and construction. This process will include stakeholder consultation.

Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 200,000

Reserve (149,200)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (50,800)

Page 367

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CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $250k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Abbott DCC (Cedar - Gyro), ATC

PRELIMINARY

Justification: Budget is requested for preliminary design and land acquisition of the Abbott Active Transportation Corridor (ATC) from Cedar Ave to Gyro Beach. In 2022 the City constructed the Abbott ATC from Kelowna General Hospital (KGH) to Cedar Ave using a mix of ultimate and quick build materials. Requested budget for 2023 will advance work on the remaining gap between Cedar Ave and Gyro Beach. Between Cedar and Walnut, preliminary design along Meikle will explore alternatives to cyclist travel through South Pandosy Waterfront Park. Scope includes option evaluation, preliminary design and cost estimates. Between Walnut and Gyro Beach, the Abbott ATC is planned to be delivered in partnership with development at 3340 Lakeshore Rd. A series of minor frontage and corner land acquisitions will be completed to support future construction. Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 250,000

Reserve (81,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (169,000)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $1.6M

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Sutherland 1 Protected Bike Route (Lequime - Burtch)

PRELIMINARY

Justification: Budget is requested for the Sutherland Active Transportation Corridor (ATC) - Lequime to Burtch. With this network gap filled, Sutherland will provide an all-ages and abilities route between the OK Rail Trail, Landmark, Ethel and Abbott. Sutherland ATC is a requirement of the Capri Mall redevelopment. Anticipating Capri moving forward, acquisition of land for the ultimate ATC was started in 2021. It is proposed to use a mix of quick build/ultimate materials to fill this gap in the interim. Completion of ultimate infrastructure would replace interim works, by future redevelopment. When replaced, some quick build materials can be redeployed to other projects. Detailed design for interim improvements was completed in 2022.

Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 1,568,000 (1,390,700)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (177,300)

Page 368

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $85k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Rail Trail to Greenway DCC, ATC

PRELIMINARY

Justification: Budget is requested for detailed design of the Rail Trail to Greenway Active Transportation Corridor (ATC). This project will fill in gaps to provide an all-ages and abilities bicycling facility between the Okanagan Rail Trail and the Mission Creek Greenway via Leckie Road. In early 2022, the Costco development constructed a multiuse pathway on Leckie Rd between Springfield Rd and Harvey Ave. In 2022 preliminary design and stakeholder engagement were initiated for the remaining segments. This funding will complete detailed design in anticipation of construction, planned for 2024. This project crosses Highway 97 and will require Ministry of Transportation Infrastructure approvals. Access from Springfield to the Mission Creek Greenway will be coordinated with the Regional District of Central Okanagan.

Expected Completion: Jun 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 85,000

Reserve (78,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (6,100)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T2 - $409k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Glenmore 4 DCC (Kane - South Yates), ATC

PRELIMINARY

Justification: Budget is requested to complete the construction of a section of the Glenmore 4 Active Transportation Corridor (ATC) Multi-Use Path (MUP) from Glenmore Road along Kane and Yates Roads. This segment is a priority component of the larger Glenmore ATC project within the Pedestrian and Bicycle Master Plan and Transportation Master Plan. The goal is to develop a connected 'all ages and abilities' bicycling network through Glenmore. This project will extend the multiuse pathway on Glenmore Rd and bike lanes on Kane (constructed in 2022) to the existing multiuse path on Yates, linking to the south. Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost 409,200

Reserve (304,400)

Borrow 0

Fed/Prov 0

Operating Impact: Glenmore 4 DCC (Kane - South Yates), ATC Cost Reserve Borrow Grant 2023 4,000 0 0 0 2024 12,800 0 0 0 2025 12,800 0 0 0

Dev/Com 0 Other 0 0 0

Utility 0

Taxation (104,800)

Revenue 0 0 0

Utility 0 0 0

Taxation (4,000) (12,800) (12,800)

Page 369

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T3 - $343k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Hwy 97 Right Turn Lane to Pandosy

PRELIMINARY

Justification: Budget is requested to fund the construction of an eastbound right-turn lane from Highway 97 onto Pandosy St. Funding is required to address the approved project scope and inflation. This project includes work on Highway 97. Detailed design and Ministry of Transportation and Infrastructure (MoTI) approval are complete and construction is expected to be completed by the end of 2023. This project is a MoTI condition for the City, tied to the previous approval of development in the area.

Expected Completion: Oct 2023 Strategic Direction: Transportation & mobility - Travel times are optimized Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 343,000

Reserve (250,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (93,000)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T3 - $200k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Local Street Urbanization Program

PRELIMINARY

Justification: Budget is requested to complete a funding and delivery model for the urbanization of local streets in the core area. Redevelopment is occurring in core area neighbourhoods and is expected to accelerate under the new Official Community Plan creating a higher demand on local streets for walking, biking, parking and driving. Existing funding models have had limited success in advancing urbanization. In 2022 a draft model utilizing a mix of funding sources to fund and prioritize urbanization was developed. Work in 2023 would seek to finalize a draft framework, including consultation, and deliver a pilot construction project. Lessons learned from the pilot would inform next steps. Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - People of all ages & abilities can easily get around Asset Cost 200,000

Reserve (100,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (100,000)

Operating Impact: There are operation and maintenance budget impacts and are included below 2023 2024 2025

Cost 0 0 23,500

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 (23,500)

Page 370

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T3 - $350k

Title:

Roadway Urbanization

PRELIMINARY

Justification: Budget is requested to deliver roadway urbanization projects in conjunction with the Offsite and Oversize Program allowing for infrastructure extensions to be completed in coordination with nearby development.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com (350,000)

Utility 0

Taxation 0

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $85k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

KLO Road Mission Creek Bridge Replacement

PRELIMINARY

Justification: The KLO bridge over Mission Creek is approaching the end of its service life. This project will replace the existing bridge, accommodate the Mission Creek Greenway under the west abutment, accommodate updated flood levels and improve the safety of road approaches. Replacement was planned in 2019, but was deferred in 2020 due to COVID funding cuts. Construction is now planned for 2024/25. Budget is requested to update cost estimates, complete design and supplement funding for land acquisitions / ALC applications. Updated cost estimates will be completed to assess the impacts of recent inflation and inform next steps.

Reserve (50,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (35,000)

Page 371

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $400k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Bridge Rehabilitation and Renewal Program

PRELIMINARY

Justification: Budget is requested for this annual program which inspects, assesses and undertakes rehabilitation of the City's bridges. Each year half of the City's bridges are inspected and issues identified are prioritized for rehabilitation. Regular inspection and maintenance of bridges supports efficient asset management, extends asset lifespans and reduces longterm costs. Work in 2023 focuses on deck and abutment repairs on several structures that will extend their lifespans and reduce/defer larger capital investments in the future.

Expected Completion: Jun 2024 Strategic Direction: Economic resiliency - Infrastructure deficit is reduced Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 400,000

Reserve (300,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (100,000)

Department: Cost Center:

Capital Projects Transportation Capital

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $3.3M

Title:

Road Renewal Program

PRELIMINARY

Justification: Budget is requested for this annual program that maintains the paved surface of the City's streets. Pavement renewal locations are prioritized by pavement condition, street function and traffic loading. While most projects involve removing then repaving the top surface of the roadway, strategies to extend the pavement life are also used. Renewal is coordinated with other capital and development projects to maximize pavement life.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (43,100)

Page 372

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $150k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Sidewalk & Bikeway Renewal Program

PRELIMINARY

Justification: Budget is requested for this annual program that rehabilitates and updates walking and biking facilities that are deteriorated or do not meet current guidelines. Typical projects include bike lane, sidewalk, intersection and crosswalk rehabilitation/upgrades. Improvements are often coordinated with pavement renewal projects to reduce costs. Priority locations are selected based on network review, operational issues, service requests and coordination with other major projects.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (150,000)

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $235k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Street Lighting Renewal Program

PRELIMINARY

Justification: Budget is requested for this annual program that replaces light poles and wiring that have reached the end of their service life. Replacement poles are galvanized steel with a lifespan of 50+ years, however, the majority of the City's existing 9300+ street light poles are painted steel, with significantly shorter lifespans. This request will fund the replacement of an estimated 150 poles by the end of 2023.

Reserve (200,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (35,000)

Page 373

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 T4 - $260k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Traffic Signal and Communications Renewal Program

PRELIMINARY

Justification: Budget is requested to replace aging traffic signal infrastructure. This request is based on maintenance inspections and equipment lifespans to ensure reliable and safe operation. The City's traffic signal system is growing, by 5% last year alone, with 139 signalized intersections and crosswalks. Pedestrian warning flashers are now installed at 53 locations. 2023 priorities include replacing LED displays (10-year life cycle), cabinets (25-year life cycle), uninterruptible power supply batteries (5-year life cycle), detection and communications equipment (20-year life cycle), transit/emergency signal priority (20-year life cycle), traffic signal poles, bases and underground infrastructure.

Reserve (200,000)

Borrow 0

Fed/Prov 0

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Bicycle Network Improvement Program

Dev/Com 0

Utility 0

Taxation (60,000)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T5 - $500k PRELIMINARY

Justification: Budget is requested for this annual program that supports cycling networks making cycling an easier and safer option for more residents. Projects include bike lanes, other on-street facilities and intersection improvements. Improvement priorities are guided by service requests, existing operating issues, network gaps and the Pedestrian and Bicycle Master Plan (PBMP). Projects planned include DeHart Road bike lanes (improved linkage between the Lakeshore ATC and planned DeHart Park and improvements to bike lanes toward Swamp Road) and KLO Road bike path (improved access to Okanagan College and Transit Exchange). Both projects are coordinated with concurrent capital projects. Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost Reserve Borrow Fed/Prov Dev/Com Utility Taxation 500,000 (250,000) 0 0 0 0 (250,000) Operating Impact: There are operation and maintenance budget impacts and are included below Cost Reserve Borrow Grant Other Revenue Utility 2023 0 0 0 0 0 0 0 2024 60,200 0 0 0 0 0 0 2025 60,200 0 0 0 0 0 0

Taxation 0 (60,200) (60,200) Page 374

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T6 - $150k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Crosswalk Safety, Signals and Flashers

PRELIMINARY

Justification: Budget is requested for this annual program that upgrades existing and adds new crosswalks to make walking a more comfortable, safer and viable travel option for more residents. Typical improvements include pedestrian-activated warning flashers, median refuge islands, curb extensions, road markings/signage, lighting or other works.

Expected Completion: Jun 2024 Strategic Direction: Community Safety - Residents feel safe Asset Cost 150,000

Reserve (75,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (75,000)

Operating Impact: There are operation and maintenance budget impacts and are included below 2023 2024 2025

Cost 1,200 1,800 2,400

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (1,200) (1,800) (2,400)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T6 - $700k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Sidewalk Network Expansion Program

PRELIMINARY

Justification: Budget is requested for this annual program that constructs sidewalks to complete gaps in the walking network or adds new sidewalk segments as identified in the Pedestrian & Bicycle Master Plan (PBMP). Recommendations from the Safe Routes for Schools Program are also considered. Locations where sidewalks improve safety, accessibility and convenience while increasing the viability of walking as a mode of travel are prioritized. Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost 650,000

Reserve (350,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (300,000)

Revenue 0 0 0

Utility 0 0 0

Operating Impact: Sidewalk Network Expansion Program 2023 2024 2025

Cost 0 1,900 1,900

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Taxation 0 (1,900) (1,900)

Page 375

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2023 T7 - $100k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Safe Routes to School Program

New

PRELIMINARY

Justification: Budget is requested to construct improvements identified through the Safe Routes to School Program. This program is a partnership with School District 23 officials, school principal/vice principals, teachers, parent advisory councils, regional traffic safety officers, and the Regional District of Central Okanagan. The program identifies improvements near schools that make walking and biking to school a safer and more accessible option. This funding is used to implement identified improvements. This year, Springvalley Elementary will be participating in the program. Improvements from this process and emerging issues will be constructed in 2023.

Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - People of all ages & abilities can easily get around Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 100,000

Reserve (50,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (50,000)

Priority: 1 10 Yr Cap Plan Ref: 2023 T7 - $150k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Road Safety Partnerships with ICBC

New

PRELIMINARY

Justification: Budget is requested for construction to improve the road safety performance of collision-prone locations through funding partnerships with the Insurance Corporation of British Columbia (ICBC). Locations are identified through intersection safety screening, service requests and operational reviews. This program focuses on intersections with existing safety issues that are experiencing limited growth and/or non-arterial streets. Where beneficial, coordination with other ongoing projects are pursued.

Reserve (75,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (75,000)

Page 376

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2023 T7 - $100k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Neighbourhood Traffic Calming Program

New

PRELIMINARY

Justification: Budget is requested for this annual program that seeks to improve safety and residents' quality of life by moderating speeding and short-cutting on local neighbourhood streets. Traffic calming locations are selected based on technical evaluation and neighbourhood support. Current funding addresses 2-5 locations per year from 250+ annual service requests.

Expected Completion: Dec 2023 Strategic Direction: Community Safety - Residents feel safe Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 150,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Department: Cost Center:

Capital Projects Transportation Capital

Title: Justification:

Okanagan College Exchange Capacity Expansion

Utility 0

Taxation (150,000)

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 T9 - $248k PRELIMINARY

Budget is requested to undertake detailed design and construction of improvements at the Okanagan College (OC) Transit Exchange, which services the OC campus, surrounding neighbourhood, two of the City's busiest transit routes and several local transit routes. These improvements will address existing operating issues, future service capacity and improve integration with other travel modes including connections to the surrounding Active Transportation Network. Upgrades to the exchange include additional/relocation of an existing transit bays, shelters, and bicycle parking/micromobility hub elements. An application will be submitted with BC Transit to the Federal Investing in Canada Infrastructure Program (ICIP), to fund 80% of the project. This project will not proceed until funding is confirmed. Expected Completion: Dec 2024 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost Reserve Borrow Fed/Prov Dev/Com Utility Taxation (124,000) 1,240,000 (124,000) 0 (992,000) 0 0 Operating Impact: Okanagan College Exchange Capacity Expansion Cost Reserve Borrow Grant Other 0 2023 0 0 0 0 2024 0 0 0 0 0 2025 1,500 0 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 0 (1,500)

Page 377

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2023 T9 - $150k

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Transit - Bus Stop and Amenity Improvements

New

PRELIMINARY

Justification: Budget is requested to address needs at transit stops with high or growing ridership, to provide new stops associated with expanded or restructured transit services or in coordination with development.

Expected Completion: Dec 2023 Strategic Direction: Transportation & mobility - More trips by transit, carpooling, cycling & walking Asset Cost 150,000

Reserve (75,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (75,000)

Revenue

Utility

Taxation

0 0

0 (1,800) (1,800)

Operating Impact: Transit - Bus Stop and Amenity Improvements 2023 2024 2025

Cost

Reserve

0 1,800 1,800

0 0 0

Borrow 0 0 0

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Transit - Land Acquisition

Grant 0 0 0

Other 0 0 0

0 0 0

Priority: 1 10 Yr Cap Plan Ref: 2023 T9 - $70k

New

PRELIMINARY

Justification: Budget is requested to fund land acquisitions to support current and future bus stop improvements. Limited road rights-of-way make land acquisition an integral component of many bus stop improvements.

Reserve (35,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (35,000)

Page 378

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Transportation Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

459,000

(459,000)

T4 - Transportation System Renewal

459,000

(459,000)

Cost Center Totals

459,000

(459,000)

Grand Total

459,000

(459,000)

Transportation Capital - Priority 2 Renew Road Renewal Program

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 379

2023 FINANCIAL PLAN

CITY OF KELOWNA

THIS PAGE INTENTIONALLY LEFT BLANK

Page 380

WATER

2023 FINANCIAL PLAN

CITY OF KELOWNA

THIS PAGE INTENTIONALLY LEFT BLANK

Page 382

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Water Capital Summary - Water Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

608,000

(283,900)

(324,100)

608,000

(283,900)

(324,100)

231,000

(100,000)

(131,000)

W4 - DCC Reservoirs & Filling Stations

231,000

(100,000)

(131,000)

Offsite & Oversize - Water

143,800

(71,900)

143,800

(71,900)

385 Renew Water Meter Replacement Program

1,930,000

(1,930,000)

386 Renew Water Network and Facility Renewal

1,170,000

(1,170,000)

350,000

(350,000)

3,450,000

(3,450,000)

Water Capital - Priority 1 384 Growth Royal View Transmission Mainline Knox to Gordon W1 - DCC Pipes (Mains) 384 Growth Summit Reservoir DCC

385 New

W5 - DCC Offsite & Oversize

386 Renew PRV Renewal - Potable System W6 - Network and Facility Renewal 387 Renew Fireflow Upgrades

363,000

(363,000)

387 New

Kelowna Water Integration Plan

300,000

(300,000)

388 New

Water Meter - New Installations

150,000

(150,000)

W7 - Network and Facility Improvements

813,000

(300,000)

(150,000)

(363,000)

200,000

(200,000)

389 Renew PRV Renewal - Non Potable System

500,000

(500,000)

389 New

Hydrants

20,000

(20,000)

390 New

Non-Potable System Watershed Monitoring Equipment

41,000

(41,000)

W8 - Irrigation Network Improvements

761,000

(741,000)

(20,000)

Cost Center Totals

6,006,800

(1,496,800)

(150,000)

(4,360,000)

Grand Total

6,006,800

(1,496,800)

(150,000)

(4,360,000)

388 New

Non-Potable System Capital Plan

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 383

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 W1 - $608k

Department: Cost Center:

Capital Projects Water Capital

Title:

Royal View Transmission Mainline - Knox to Gordon

PRELIMINARY

Justification: Budget is requested to initiate the planning and design of the 20 year water supply enhancements needed to accommodate growth in the City from the Poplar Point pump station to the Dilworth Reservoir on Dilworth Mountain. This is the first installment of a three year project to design and install a transmission mainline from the Knox Mountain Reservoir in Knox Mountain Park to Gordon Drive.

Expected Completion: Dec 2026 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 608,000

Reserve (283,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (324,100) Growth Priority: 1 10 Yr Cap Plan Ref: 2023 W4 - $231k

Department: Cost Center:

Capital Projects Water Capital

Title:

Summit Reservoir DCC

PRELIMINARY

Justification: Budget is requested to initiate the planning and design of a new reservoir cell for Summit Reservoir supporting the 525 metre pressure zone on Dilworth Mountain. The new reservoir will provide the additional fire flow capacity for larger density developments in the area and support anticipated growth.

Reserve (100,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (131,000) Page 384

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details New Priority: 1 10 Yr Cap Plan Ref: 2023 W5 - $143k

Department: Cost Center:

Capital Projects Water Capital

Title:

Offsite & Oversize - Water

PRELIMINARY

Justification: Every year the City partners with the development community to oversize/extend water infrastructure to accommodate future projected development. The current 10-Year Capital Plan amount will accommodate several downtown replacement projects along with infill and RU7 zoning changes impacting future fire flow needs. This saves construction costs and disruption by not having to upsize/extend infrastructure in the future when development occurs. Budget is requested for the City's annual share of costs to oversize/extend water infrastructure in excess of the developer's own needs as a result of City requirements.

Reserve (71,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (71,900) Renew Priority: 1 10 Yr Cap Plan Ref: 2023 W6 - $2.7M

Department: Cost Center:

Capital Projects Water Capital

Title:

Water Meter Replacement Program

PRELIMINARY

Justification: Budget is requested to replace water meters with new modernized units in the City. The 10-Year Capital Plan includes budget to replace all water meters in the City over a seven year period up until the end of 2027.

Expected Completion: Dec 2027 Strategic Direction: Other - Supports Base Business Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 1,930,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (1,930,000) Page 385

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 W6 - $450k

Department: Cost Center:

Capital Projects Water Capital

Title:

Water Network and Facility Renewal

PRELIMINARY

Justification: Budget is requested for watermain and facility renewal projects. Work will include the renewal of aging cast iron watermain on Coronation Avenue between Graham Street and Ethel Street, mechanical renewal at Daon Pumping station, and some electrical, mechanical and chlorine system renewal at the Eldorado supply station to ensure worker safety for the remaining life of this station.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (1,170,000) Renew Priority: 1 10 Yr Cap Plan Ref: 2023 W6 - $300k

Department: Cost Center:

Capital Projects Water Capital

Title:

PRV Renewal - Potable System

PRELIMINARY

Justification: Budget is requested to upgrade pressure reducing valves (PRV) on the City potable water system. The City completed a recent PRV condition assessment that ultimately determined a renewal sequence, implementation plan and budget for these important assets. This work will include renewal to valves, entrance conditions and operability, and is a subset of the water renewal budget for 2023.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (350,000) Page 386

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Fireflow Upgrades

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 W7 - $363k PRELIMINARY

Justification: Budget is requested to improve fire protection by increasing pipe size and adding hydrants under Altura Road north of Monte Road.

Expected Completion: Dec 2024 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 363,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (363,000) New Priority: 1 10 Yr Cap Plan Ref: 2023 W7 - $300k

Department: Cost Center:

Capital Projects Water Capital

Title:

Kelowna Water Integration Plan

PRELIMINARY

Justification: Budget is requested to initiate the next phase of the Kelowna Water Integration Plan design process following the successful completion of the Phase 1 project in 2021. This work will involve planning with local water suppliers to plan and implement a more resilient system. The work will also include a study to revise the scope of the Water Quality Enhancement Fund (WQEF) to include resiliency of supply to support water quality improvements in all areas of the City. The deliverable will be an implementation and sequencing plan for construction projects using the Water Quality Enhancement Fund.

Reserve (300,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 387

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details New Priority: 1 10 Yr Cap Plan Ref: 2023 W7 - $150k

Department: Cost Center:

Capital Projects Water Capital

Title:

Water Meter - New Installations

PRELIMINARY

Justification: Budget is requested for this annual requirement for the installation of new water meters for new development within the City of Kelowna's water utility. The City is responsible to supply and install all water meters purchased by developers as part of their site requirements.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com (150,000)

Utility 0 New Priority: 1 10 Yr Cap Plan Ref: 2023 W8 - $200k

Department: Cost Center:

Capital Projects Water Capital

Title:

Non-Potable System Capital Plan

PRELIMINARY

Justification: The non-potable (irrigation) network in Southeast Kelowna requires a master plan to address renewal needs and priorities for the next 20 years. As much of this infrastructure was built in the late 1960's and operated by others, budget is requested for a thorough condition assessment of the linear network in order to assess liability and develop a renewal plan. The plan will also include an implementation plan for dam repair needs noted in the dam safety plans currently being delivered in 2022.

Reserve (200,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Page 388

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 W8 - $500k

Department: Cost Center:

Capital Projects Water Capital

Title:

PRV Renewal - Non Potable System

PRELIMINARY

Justification: Budget is requested to upgrade two pressure reducing valves on the non-potable water system that services agricultural properties. This work will include upgrades to mechanical components, entrance safety conditions and operability.

Reserve (500,000)

Department: Cost Center:

Capital Projects Water Capital

Title:

Hydrants

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0 Priority: 1 10 Yr Cap Plan Ref: 2023 W8 - $20k

New

PRELIMINARY

Justification: Budget is requested for infill hydrant installation throughout the City. This typically represents two hydrant installations per year. The locations of the new hydrants will be determined once staff complete prioritization.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (20,000) Page 389

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details New Priority: 1 10 Yr Cap Plan Ref: Not included W8

Department: Cost Center:

Capital Projects Water Capital

Title:

Non-Potable System Watershed Monitoring Equipment

PRELIMINARY

Justification: Regulatory requirements and operational service levels require staff to monitor, inspect and maintain dams & diversions in the McCulloch Lake watershed through the winter months. Currently the required equipment is rented which requires staff to drive to and from Vernon to pick-up and return snowmobiles. Having equipment on-hand allows for better work scheduling and emergency response which will result in improved monitoring and operations of the diversions and reservoirs related to the non-potable water system. Funds will be used to purchase the snowmobiles and a proper trailer.

Reserve (41,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Page 390

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Water Capital Summary - Utility Funds Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

500,000

(500,000)

W3 - DCC Water Treatment

500,000

(500,000)

Cost Center Totals

500,000

(500,000)

Grand Total

500,000

(500,000)

Water Capital - Priority 2 Growth UV Treatment Systems Upgrades

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 391

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Page 392

WASTEWATER

2023 FINANCIAL PLAN

CITY OF KELOWNA

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Page 394

2023 FINANCIAL PLAN

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2023 Capital Requests Preliminary Budget Wastewater Capital Summary - Wastewater Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

396 Growth Glenmore Connection - Glenmore Rd from Cross Rd to Scenic Rd 396 Growth Lakeshore Trunk - (Swordy - Barrera)

296,900

(269,300)

(27,600)

239,000

(150,300)

(88,700)

WW1 - DCC Pipes (Mains)

535,900

(419,600)

(116,300)

1,550,000

(585,900)

(964,100)

1,550,000

(585,900)

(964,100)

120,000

(60,000)

120,000

(60,000)

3,021,700

(3,021,700)

1,250,000

(1,250,000)

728,300

(728,300)

5,000,000

(5,000,000)

Air Filtration Commonage Mix Building

110,000

(36,700)

(73,300)

Wastewater Treatment Odour Control Media Replacement O&M 400 Renew KLO Rd Mission Creek Sewer Connection

1,150,000

(1,150,000)

900,000

(240,000)

0 (660,000)

WW6 - Network and Facility Improvements

2,160,000

(240,000)

0 (660,000)

(36,700)

(1,223,300)

Cost Center Totals

9,365,900

(1,305,500)

0 (660,000)

(36,700)

(7,363,700)

Grand Total

9,365,900

(1,305,500)

0 (660,000)

(36,700)

(7,363,700)

Wastewater Capital - Priority 1

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 395

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 WW1 - $297k

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Glenmore Connection - Glenmore Rd from Cross Rd to Scenic Rd

PRELIMINARY

Justification: Budget is requested for the design phase of 1500 meters of new sanitary sewer trunk along Glenmore Rd from Cross Rd to 200 meters north of Scenic Rd.

Reserve (269,300)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (27,600) Growth Priority: 1 10 Yr Cap Plan Ref: 2023 WW1 - $239k

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Lakeshore Trunk - (Swordy - Barrera)

PRELIMINARY

Justification: Budget is requested for the design phase for the installation of new 600m sanitary sewer trunk (twin) along Lakeshore Rd from Swordy Rd at the Gyro Lift Station upstream to Barrera Rd. The growth related project also supports new development occurring in areas south.

Reserve (150,300)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (88,700) Page 396

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 WW2 - $1.55M

Title:

Water St Lift Station

PRELIMINARY

Justification: Budget is requested for the second stage of infrastructure asset renewal at the Water Street Lift Station. This project was set up in two stages, and will include new pumps, electrical upgrades, hydraulic modifications, odour and noise management upgrades, and structural repairs to ensure the facility can remain operational for another 20-30 year cycle. A detailed assessment was completed in 2021 to provide additional detail and budget needs. The total project costs has been adjusted to $3M according to the new 20 year Servicing Plan to accommodate new growth expectations downtown.

Expected Completion: Jun 2024 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 1,550,000

Reserve (585,900)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (964,100) Growth Priority: 1 10 Yr Cap Plan Ref: 2023 WW4 - $120k

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Offsite & Oversize - Wastewater

PRELIMINARY

Justification: Every year the City contributes a portion to oversize/extend wastewater infrastructure to accommodate future projected development, with the remaining portion provided by the development community. Budget is requested to supplement funds where required to provide additional capacity or access to City infrastructure, which will minimize service disruptions for future developments.

Reserve (60,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (60,000) Page 397

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Renew Priority: 1 10 Yr Cap Plan Ref: 2023 WW5 - $3M

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Renewal - Wastewater Mains and Facilities

PRELIMINARY

Justification: Budget is requested for a number of renewal projects in the wastewater system: new bioreactor lead blower and secondary clarifier replacement at the Wastewater Treatment Plant (WWTP), the design and land acquisition for the Cassiar Lift Station decommissioning and gravity bypass, linear works around the Water Street Lift Station upgrades, and the renewal of approximately 600 meters of old vitrified clay and asbestos cement sanitary sewers between Richter St and Ethel St, north of Raymer Ave.

Reserve 0

Borrow 0

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Burtch Trunk

Fed/Prov 0

Dev/Com 0

Utility (3,021,700) Renew Priority: 1 10 Yr Cap Plan Ref: 2023 WW5 - $1.25M PRELIMINARY

Justification: Budget is requested for the second stage of the Burtch Trunk repairs for over 1600 metres of existing 600 mm reinforced concrete trunk from damage caused by hydrogen sulphide gas formation. A recent condition assessment concluded significant damage to the concrete, and a slip lining repair has been recommended for design and installation.

Expected Completion: Dec 2025 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 1,250,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (1,250,000) Page 398

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 WW5 - $728k

Title:

Lift Station Renewal

PRELIMINARY

Justification: Budget is requested for annual renewal of sanitary lift station assets across the City. For 2023, the budget will be focused primarily on the renewal of the Hillsborough sanitary lift station which requires a major overhaul.

Expected Completion: Mar 2024 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 728,300

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (728,300) New Priority: 1 10 Yr Cap Plan Ref: Not included WW6

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Air Filtration Commonage Mix Building

PRELIMINARY

Justification: Air quality sampling in the fall of 2021 identified air quality concerns for staff working within the mix building. Budget is requested for an air filtration system which will improve air quality by increasing fresh air from outside and filtering the exhaust air from the building.

Expected Completion: Sep 2023 Strategic Direction: People - Ability to attract, select & retain talent Operating Impact: Minimal operation and maintenance impact accommodated within an existing operating budget Asset Cost 110,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com (36,700)

Utility (73,300) Page 399

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details New Priority: 1 10 Yr Cap Plan Ref: 2023 WW6 - $1.15M

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Wastewater Treatment Odour Control Media Replacement

PRELIMINARY

Justification: Budget is requested to complete the replacement of the Odour Control Media system at the City's Wastewater Treatment Facility.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (1,150,000) Renew Priority: 1 10 Yr Cap Plan Ref: 2023 WW6 - $900k

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

KLO Rd Mission Creek Sewer Connection

PRELIMINARY

Justification: Budget is requested to assist in the extension of sanitary sewer across Mission Creek along KLO Rd and provide some initial sanitary sewer servicing to the Hall Rd Sewer Connection Area. This project is part of the City's Sewer Connection Area program and the budget includes grant funding from the Investing in Canada Infrastructure program in an effort to reduce the number of septic systems in the City.

Expected Completion: Sep 2023 Strategic Direction: Other - Supports Base Business Asset Cost 900,000

Reserve (240,000)

Borrow 0

Fed/Prov (660,000)

Dev/Com 0

Utility 0

Operating Impact: KLO Rd Mission Creek Sewer Connection 2023 2024 2025

Cost 11,300 45,000 45,000

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility (11,300) (45,000) (45,000) Page 400

SOLID WASTE

2023 FINANCIAL PLAN

CITY OF KELOWNA

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Page 402

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Solid Waste Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

404 Growth Automated Collection Curbside Carts

400,000

(400,000)

SW1 - Equipment

400,000

(400,000)

404 New

Landfill Liner Design and Construction

1,500,000

(1,500,000)

405 New

Electrical Supply Upgrades

2,000,000

(2,000,000)

405 Growth General Site Works and Investigations

100,000

(100,000)

406 New

Landfill - Electric Equipment Charging Station

85,000

(85,000)

SW2 - Site Improvement

3,685,000

(3,685,000)

406 Growth Landfill Gas & Leachate Recirculation Laterals

450,000

(450,000)

SW3 - Gas Management

450,000

(450,000)

Odour Control and Leachate Treatment

100,000

(100,000)

SW4 - Leachate Management

100,000

(100,000)

407 Renew Wet Well Relocation

600,000

(600,000)

408 Growth Stormwater Bypass System

300,000

(300,000)

900,000

(900,000)

6,100,000

(6,100,000)

400,000

(400,000)

6,500,000

(6,500,000)

Cost Center Totals

12,035,000 (12,035,000)

Grand Total

12,035,000 (12,035,000)

Solid Waste Capital - Priority 1

407 New

SW5 - Drainage & Groundwater Management 408 New 409 New

Stockpiles and Reprocessing Areas Relocation Mechanical Shop Expansion Equipment Storage Bay SW7 - Landfill Area Development

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 403

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Growth Priority: 1 10 Yr Cap Plan Ref: 2023 SW1 - $400k

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Automated Collection Curbside Carts

PRELIMINARY

Justification: Budget is requested to purchase new curbside carts. This request is part of the City of Kelowna's curbside refuse, recycling and yard waste program. These new receptacles are necessary to address residential growth and the need for larger recycling and yard waste receptacles. This keeps an inventory of carts to renew end of life carts and maintain customer service.

Reserve (400,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

New Priority: 1 10 Yr Cap Plan Ref: 2023 SW2 - $1.5M

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Landfill Liner Design and Construction

PRELIMINARY

Justification: The preliminary design for Area 3 is complete and was used to formulate the site blasting performed in 2022. Budget is requested to complete the final design and remaining site preparation for the liner installation to occur in another phase.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 404

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Electrical Supply Upgrades

Priority: 1 10 Yr Cap Plan Ref: 2023 SW2 - $2M

New

PRELIMINARY

Justification: The new aerated static pile will require a power supply as part of its operations. Budget is requested for the electrical design and installation, which must be completed prior to commencing planned road and earthworks construction. The work will include purchase of transformers, conduit installation, substation connectivity, area lighting and connection to the grid. This expanded electrical capacity allowance included for EV charging of mobile and heavy equipment, and is consistent with the City Green Fleet Policy and Community Climate Action Plan.

Expected Completion: Sep 2024 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 2,000,000 (2,000,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 SW2 - $100k

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

General Site Works and Investigations

PRELIMINARY

Justification: Budget is requested for addressing the regulatory capital requirements recommended from the 2019 Design Operation and Closure Plan (DOCP). This includes a number of smaller consulting projects required to complete tasks in the Upgrading Plan to ensure compliance with the BC Landfill Guidelines.

Reserve (100,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 405

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2023 SW2 - $2m

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Landfill - Electric Equipment Charging Station

New

PRELIMINARY

Justification: Budget is requested to install EV charging infrastructure at the Glenmore Landfill transfer station for the use of City vehicles and equipment. This is consistent with the Green Fleet Policy and will support the Electric Compact Loader that has been ordered. Two charging stations would be installed in 2023, with the capacity to add future charging stations as the City expands EV fleet at the landfill.

Expected Completion: Oct 2023 Strategic Direction: Environmental protection - Greenhouse gas emissions are decreasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 85,000

Reserve (85,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 SW3 - $450k

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Landfill Gas & Leachate Recirculation Laterals

PRELIMINARY

Justification: Budget is requested for the installation of landfill gas laterals and leachate recirculation systems as sections of the landfill continue to grow.

Reserve (450,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 406

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details New Priority: 1 10 Yr Cap Plan Ref: 2023 SW4 - $100k

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Odour Control and Leachate Treatment

PRELIMINARY

Justification: Budget is requested for a preliminary study in advance of a design for the leachate treatment system to be installed in the near future. Controlling odour and Hydrogen Sulphide (H2S) gas will be important for both nuisance prevention and corrosion protection within the mechanical components.

Reserve (100,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Department: Cost Center:

Capital Projects Solid Waste Capital

Renew Priority: 1 10 Yr Cap Plan Ref: Not included SW5

Title:

Wet Well Relocation

PRELIMINARY

Justification: Budget is requested to relocate an existing wet well at the Glenmore Landfill. An updated building code evaluation was performed in 2022 and found the potential for landfill gas build up within the existing building. The relocation of the wet well to an outdoor location will eliminate the need for more expensive building upgrades, ensure consistency with current City lift station design practices, and mitigate the potential health and safety concerns. Work can be performed in conjunction with replacing other end of life infrastructure (Leachate Management Project) resulting in a more cost effective construction. The 10 Year Capital Plan will be updated to include this project.

Expected Completion: Aug 2023 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 600,000

Reserve (600,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 407

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Stormwater Bypass System

Growth Priority: 1 10 Yr Cap Plan Ref: 2023 SW5 - $300k PRELIMINARY

Justification: Budget is requested to conduct site surveys and preliminary alignment design for the Glenmore Landfill Surface Water Bypass system. This work would include consideration of water levels in and around Robert Lake to mitigate potential flooding in this water basin.

Expected Completion: Sep 2023 Strategic Direction: Environmental protection - Resiliency & adaptability to climate change Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 300,000

Reserve (300,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

New Priority: 1 10 Yr Cap Plan Ref: 2023 SW7 - $6.1M

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Stockpiles and Reprocessing Areas Relocation

PRELIMINARY

Justification: Budget is requested for the second phase of a four-year plan to move materials from Area 3 to the aerated static pile (ASP) being constructed west of the entrance. This includes purchase of the mechanical and structural works for the aerated static pile operation. The work includes continuation of the addition and movement of materials, as well as additional phases of construction of the new aerated static pile compost process as per the approved Landfill Design, Operations and Closure Plan.

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 408

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Priority: 1 10 Yr Cap Plan Ref: 2024 SW7 - $0

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Mechanical Shop Expansion - Equipment Storage Bay

New

PRELIMINARY

Justification: Budget is requested for the second of three phases in the construction of the mechanic shop. The equipment storage bay is required to store landfill equipment and storage for equipment for general repairs. This is a building extension to the shop which is covered but open to the elements. The project will be delivered under a 3rd party design-build contract. Phase 1 of this project was delayed and so phase 2 was scheduled for 2024. Phase 1 is now complete, and the project can proceed.

Expected Completion: Sep 2023 Strategic Direction: Other - Supports Base Business Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 400,000

Reserve (400,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 409

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Page 410

STORM DRAINAGE

2023 FINANCIAL PLAN

CITY OF KELOWNA

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2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Storm Drainage Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

5,773,700

Borrow

Grant

Other

Utility

Taxation

(2,969,900)

0 (2,309,500)

(494,300)

5,773,700

(2,969,900)

0 (2,309,500)

(494,300)

170,500

(170,500)

360,000

(25,000)

(335,000)

D3 - Storm Water Renewal

530,500

(25,000)

(505,500)

Cost Center Totals

6,304,200

(2,969,900)

0 (2,309,500)

(25,000)

(999,800)

Grand Total

6,304,200

(2,969,900)

0 (2,309,500)

(25,000)

(999,800)

Storm Drainage Capital - Priority 1 414 New

Mill Creek Flood Protection D1 - Hydraulic Upgrading Program

414 Renew Stormwater Pond Asset Renewal Program 415 Renew Linear Asset Renewal Projects

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 413

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Mill Creek Flood Protection

Priority: 1 10 Yr Cap Plan Ref: 2023 D1 - $5.7M

New

PRELIMINARY

Justification: The Mill Creek Flood Protection project creates the conditions to safely pass a one in 200 year flood event to Okanagan Lake. Budget is requested as part of a seven year plan that accesses funding up to $22M of the Disaster Mitigation and Adaptation Fund (DMAF) federal grant. This project element will include flood protection on City-owned areas along lower Mill Creek and investigations of the industrial corridor. The final designs all include a balanced approach that considers localized goals, flood protection needs, water quality improvements, and improving fish spawning habitat.

Expected Completion: Dec 2027 Strategic Direction: Environmental protection - Resiliency & adaptability to climate change Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 5,773,700 (2,969,900)

Borrow 0

Fed/Prov (2,309,500)

Dev/Com 0

Utility 0

Taxation (494,300)

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 D3 - $171k

Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Stormwater Pond Asset Renewal Program

PRELIMINARY

Justification: Budget is requested to support the annual renewal and replacement of stormwater ponds including retention/detention/infiltration ponds and tanks. Stormwater ponds play a vital role in managing both stormwater flows and pollutants. This project is part of a larger stormwater pond asset renewal program (partially funded in the 10Year Capital Plan). The first year of this project includes developing an assessment framework and the first phase of assessing existing stormwater ponds. The assessment will inform the program's future capital renewal projects.

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (170,500)

Page 414

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Linear Asset Renewal Projects

Renew Priority: 1 10 Yr Cap Plan Ref: 2023 D3 - $360k PRELIMINARY

Justification: Budget is requested to support the annual replacement of storm drainage mains, pump stations, and treatment facilities. Although stormwater infrastructure is newer in relation to other utilities, a number of stormwater mains are approaching the end of service life and will require renewal in order to continue providing a standard level of service. The projects identified for replacement in 2023 are to address the significant root intrusion in culverts along the mainstem of Brandt's Creek upstream of Millard Glen Park, funding renewal-related portions of the miscellaneous drainage program projects for the Dilworth and Glacier Ct drywell, Garner Rd pond trench dam, Sutherland and Ethel drywell, Elm St drywell, Lynwood Cr catch basin, Buckland Ave OGS, and for a vacuum truck pre-treatment facility renewal study Expected Completion: Sep 2023 Strategic Direction: Environmental protection - Resiliency & adaptability to climate change Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 360,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility (25,000)

Taxation (335,000)

Page 415

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Preliminary Budget Storm Drainage Capital Summary - General Fund Page Type

Description

Asset Cost

Reserve

2,941,700

Borrow

Grant

Other

Utility

Taxation

0 (1,176,700)

(1,765,000)

2,941,700

0 (1,176,700)

(1,765,000)

120,000

(120,000)

120,000

(120,000)

229,500

(229,500)

D3 - Storm Water Renewal

229,500

(229,500)

Cost Center Totals

3,291,200

0 (1,176,700)

(2,114,500)

Grand Total

3,291,200

0 (1,176,700)

(2,114,500)

Storm Drainage Capital - Priority 2 New

Mill Creek Flood Protection D1 - Hydraulic Upgrading Program

Renew Catch Basin Trapping Hood Retrofit Program D2 - Storm Drainage Quality Program Renew Stormwater Pond Asset Renewal Program

OP - denotes capital request that has been moved to the operating section O&M – denotes capital request has operating & maintenance impacts included in the request

Page 416

FINANCIAL PLAN Kelowna, BC Canada Carryover Budget - Volume 2

2023

2023 FINANCIAL PLAN

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Report to Council Date:

March 20, 2023

To:

Council

From:

City Manager

Subject:

2023 Financial Plan – Carryover Budget - Volume 2

Department: Financial Planning

Recommendation: THAT the 2023 Financial Plan be increased by $ 19,404,100 for operating carryover projects and $217,872,400 for capital carryover projects as summarized in the 2023 Financial Plan – Carryover Budget – Volume 2. Purpose: To present the 2023 Financial Plan – Carryover Budget - Volume 2 to Council for approval and inclusion into the 2023 Financial Plan. Background: The operating and capital projects listed in the 2023 Financial Plan – Carryover Budget – Volume 2 represents projects that were not completed in 2022 or were originally planned to be completed over multiple years. These projects were previously approved by Council, and therefore do not add to the taxation demand for 2023. Funding sources for these projects include reserves, debt, utility, and other contributions, including grants. Corporate financial policy and guidelines were established in 2021 to provide a consistent framework for an incomplete operating and/or capital project budget to be considered for carryover into the following budget year, where funding is available. This policy applies to all operating and capital budget items whose underspending in a budget year is a result of timing, scope change, or is a multi-year undertaking and is requiring a carryover to the following budget year in order to complete the project. This underspending, if not carried forward into the following budget year, would not allow for the completion of the project and the lapsed funding would flow into the City’s annual surplus. To be eligible for budget carryover a request must be justified and meet one of the following criteria:

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2023 FINANCIAL PLAN

• • • • • • • •

CITY OF KELOWNA

Design Option: A one-time operating or capital project that is waiting for a design decision or is being re-scoped due to a change in circumstances. External Event: A one-time operating or capital project that is delayed due to an unanticipated external event. Multi-Year: A one-time operating or capital project that is planned over multiple years and has been identified as such in the original budget request. Scheduling: A one-time operating or capital project that is delayed due to internal scheduling conflicts. Awaiting Grant Information: A one-time operating or capital project that is on hold pending grant approval. Program: An operating or capital project that is part of a larger annual program that has a list of projects that exceed the annual budget. Council Approved: An operating project with a base budget that has been approved by Council to be used as funding for a project on a one-time basis. Policy: An operating project with a base budget that has a Council-endorsed policy to support a carryover.

For 2022, the carryover criteria External Event makes up for 31% of the overall carryover counts. This is largely due to the ongoing effects of the COVID-19 pandemic, supply chain issues, and weather delays which slowed the progress on many projects in 2022. With respect to the remainder of the projects, 25% are projects which were delayed due to internal scheduling challenges, 22% were previously approved as multiyear, 11% for continued annual programming, 9% caused by design delays, 1% are awaiting grant information, and 1% are Council approved or have a policy that direct the carryover of remaining budget. A detailed discussion of projects included in this volume is not planned. Should Council have questions regarding any specific carryover and would like it discussed at the March 20, 2023, meeting, please advise the City Manager in advance and he will arrange for a division representative to attend the Council meeting. Considerations applicable to this report: Financial/Budgetary Considerations: A consolidated 2023-2027 Five-Year Financial Plan will be brought to Council for adoption by bylaw at Final Budget on April 24, 2023. This will precede adoption of the 2023 property tax bylaw, in accordance with Section 165 of the Community Charter.

Considerations not applicable to this report: Legal/Statutory Authority: Legal/Statutory Procedural Requirements: Existing Policy: External Agency/Public Comments: Communications Comments:

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Submitted by: Melanie Antunes, CPA, Financial Planning Manager Approved for inclusion:

J. Sass, CPA, CA Director Financial Services

Attachment: 1: 2023 Financial Plan – Carryover Budget - Volume 2 2: 2023 Financial Plan – Carryover Budget - Volume 2 Presentation

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CARRYOVER BUDGET The Carryover budget volume represents the incomplete projects, due to various reasons, from the 2022 budget year. These incomplete projects are being requested for carryover to 2023 with the intention of completion, or continuation in the case of multiple year projects. The total value of the 2023 Carryover volume is $237.3M, increasing the 2023 operating program by $19.4M and capital program by $217.9M with no effect on taxation as these projects were previously approved by Council.

CARRYOVER REQUEST THREE-YEAR COMPARISON ($ millions) The overall Carryover value has increased from 2022 most notably in the Utility Funds. The majority of the increase can be attributed to the Airport Improvement Program and the Rutland Centre Sewer Connection Project within the utility funds and the Mill Creek Flood Projection project and the Highway 97 Pedestrian Overpass project in the general fund. The table below splits the last three years of carryovers between operating, capital, general fund and utility funds.

Total Carryover

2023 $237

2022 $177

2021 $173

Operating

$19 = 8%

$10 = 6%

$8 = 5%

Capital

$218 = 92%

$167 = 94%

$165 = 95%

General Fund

$111 = 47%

$87 = 49%

$73 = 42%

Utility Funds

$126 = 53%

$90 = 51%

$100 = 58%

CARRYOVER PROJECTS BY REASON TYPE There are several reasons why operating and capital projects are requested to be carried over. Corporate financial policy requires all budget carryover requests meet one of the following criteria.

External Event A one-time operating or capital project which is delayed due to an unanticipated external event, the event was beyond City control and includes an expectation the project is to continue in the next year with a completion date. The most significant of 2023 External Event requests was the RCMP Retroactive Payment at $8.3M.

Design Option A one-time operating or capital project which is waiting for a design decision or is being re-scoped due to a change in circumstances. 2023 carryover projects with the Design Option reason code include Mission Recreation - Softball Diamonds (DCC) at $4.4M, Hwy 97 Pedestrian Overpass at $4.4M, and Knox Mountain Geotechnical Engineering at $3.8M.

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Multi-Year A one-time operating or capital project that is planned to be completed over multiple years and has been identified as such in the original budget request. 2023 carryover projects with the Multi-Year reason code category include Soaring Beyond 2.5 Million Passengers AIF Program at $88.6M, Rutland Centre (SCA 22) Sewer Connection Project at $10.3M, and Mill Creek Flood Protection at $6.2M.

Scheduling Demands A one-time operating or capital project that is delayed due to internal scheduling conflicts. 2023 carryover projects with the Scheduling Demands reason code category include Equipment and Vehicle Replacement at $4.1M, Landfill Site Preparation at $2.3M, and Casorso 3 DCC at $1.5M.

Awaiting Grant Information A one-time operating or capital project that is on hold pending grant approval. 2023 carryover projects on hold due to grant funding approval include Rutland Park & Ride, Mobility Hub, Operations facility at $280k, Electric Vehicle Charging Stations at $158k, and Energy Savings Program at $95k.

Program An operating or capital project that is part of a larger annual program that has a list of projects that exceed the annual budget. 2023 carryover projects with the Program reason code category include Parkland Acquisition at $2.7M, Water Network and Facility Renewal at $1.3M, Street Light Renewal at $774k, and Traffic Signals and Roundabouts at $758k.

Council Approved An operating project with a base budget that has been approved by Council to be used as funding for a project on a one-time basis. No 2023 carryovers fell into this reason code category.

Policy An operating project with a base budget that has a Council endorsed policy to support a carryover. 2023 carryover projects with the Policy reason code category include Event Support Policy at $605k, and Community Grant Policy at $255k. The graph below displays the carryover reason types by percentage of total number of carryover requests for 2023. The External Event carryover category makes up the greatest proportion of requests. This is largely due to supply chain issues and weather-related events delaying projects. Scheduling Demands was the second most common reason for carryover requests, which is due to labor shortages and staff deployment to other priorities.

External Event 31% Scheduling Demands 25% Multi-Year 22% Program 11% Design Option 9% Council Approved or Policy 1% Awaiting Grant Information 1% Total Requests 262

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SUMMARY OF MULTI-YEAR REQUESTS The details of multi-year carryover requests are not presented in the Financial Plan as they were identified as multiyear projects when the original request was approved by Council. Multi-year operating and capital projects requested for carryover in 2023 are summarized in the tables below.

Operating Multi-Year Requests

Project Amount

Funding Source

Original Year

Expected Completion

H2O Adventure Fitness Centre Operating Model Review Indigenous Community Engagement Framework Indigenous Harm Reduction Health Canada Grant Journey Home - Reaching Home Grant

45,500 47,700 311,200 88,900

RESERVE RESERVE FED/PROV FED/PROV

2021 2022 2022 2021

2023 2023 2024 2023

PEOPLE Peer Navigators Cap. Building: Health Canada Grant Active Living & Culture Total Building Safer Communities Grant Business Continuity COVID Response Community Safety Plan Implementation Overnight Sheltering

75,000 568,300 141,400 92,300 98,000 499,900

FED/PROV

2020

2023

FED/PROV RESERVE RESERVE RESERVE

2022 2020 2021 2021

2023 2023 2027 2023

Strengthening Comm. Ph 2-Outdoor Navigation Strat. Corporate & Protective Services Total AI/Chatbot Development Approvals Program

911,300 1,742,900 52,900

FED/PROV

2022

2023

FED/PROV

2021

2023

Fire Department Management System Replacement Corporate Strategic Services Total 2040 Infrastructure Plan Consulting Support Financial Planning System and Process Review Financial Services Total 858 Ellis Street Shelter Cook Rd. Boat Launch Dredging Partnerships & Investments Total 4690 Hwy 97 Agricultural Considerations Champion of the Environment Term Position Healthy Housing Strategy Infill Housing Development Approvals Program Pandosy Urban Centre Plan Planning & Development Services Total

20,000 72,900 99,400 183,800 283,200 492,500 106,900 599,400 571,000 110,700 66,500 112,100 17,800 878,100

RESERVE

2022

2023

RECO/RES/UTIL RESERVE

2022 2021

2024 2023

RESERVE RESERVE

2022 2022

2024 2023

RESERVE RESERVE FED/PROV FED/PROV RESERVE

2022 2021 2021 2022 2022

2024 2023 2024 2023 2024

Total multi-year operating projects

4,144,800

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Capital Multi‐Year Requests Capital News Centre ‐ Expansion PRC ‐ Building Replacement Design Building Capital Total DeHart Park DCC (Eligible) Edith Gay Park Field #2 ‐ Outfield Netting Mill Creek Linear Park Shoreline Restoration ‐ Flood Damage

Project Amount 699,600 2,714,200 5,605,700 130,000 1,692,500 400,500 7,828,700

Benvoulin Turn Lanes DCC (Casorso ‐ KLO) Casorso 1 Roundabouts (Swamp ‐ Benvoulin) Clement 2 DCC (Spall ‐ Hwy33) Design Commonwealth Rd (Hwy 97 ‐ Jim Bailey) Frost 1 DCC (Killdeer ‐ Chute Lake) Glenmore 3 DCC (Clement ‐ High) AT Gordon 1 DCC (Frost ‐ South Perimeter), Road Hollywood 7 (Sexsmith ‐ Appaloosa) Improvements Houghton 2 DCC (Hollywood Rd ‐ Rutland Rd), ATC KLO Rd Mission Creek Bridge Replacement McCulloch Area DCC (KLO/Hall/Spiers) Rails with Trails to Greenway ATC Stewart 3 DCC (Crawford‐Swamp), Road Sutherland 1 DCC (Gordon ‐ Burtch), ATC

50,000 50,000 1,200,000 537,700 73,500 94,900 1,842,900 1,772,900 3,010,000 169,800 454,400 34,600 721,100 389,400

Transportation Capital Total

10,401,200

Solid Waste Capital Mill Creek Flood Protection

1,373,000

Original Year 2022 2021

Expected Completion 2025 2024

RESERVE RESERVE RESERVE RESERVE

P4 P8 P7 P7

2022 2022 2022 2020

2023 2023 2024 2023

RESERVE RESERVE RES/GRANT RESERVE RESERVE RESERVE RES/BORROW RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE

T1 T1 T2 T1 T1 T2 T1 T1 T2 T4 T1 T2 T1 T2

2022 2022 2022 2022 2022 2022 2019 2018 2020 2020 2016 2022 2021 2019

2023 2023 2023 2023 2023 2023 2024 2023 2023 2026 2024 2023 2023 2023

RESERVE

SW7

2021

2023

RES/GRANT

2019

2027

RESERVE RESERVE RESERVE

I3 I3 I3

2022 2018 2018

2023 2023 2023

RESERVE RESERVE

F3 F1

2022 2022

2024 2023

RESERVE RES/GRT/OTH RES/GRANT RES/GRANT

A2 A2 A3 A4

2022 2022 2018 2020

2024 2023 2023 2033

RESERVE RES/GRANT RESERVE RES/GRANT RES/GRANT

WW5 WW6 WW5 WW6 WW6

2022 2022 2022 2022 2022

2023 2023 2023 2023 2025

1,373,000 6,206,800

Storm Drainage Capital Total

6,206,800

Major Systems Projects ‐ Expense Ledger Module Major Systems Projects ‐ Planning and Permitting Records and Information Management System Information Services Capital Total Fire Communications Equipment Renewal Fire Vehicle and Equipment Renewal Fire Capital Airport ‐ Hotel Development Airport Child Care Facility Airport Roof Replacement Program Soaring Beyond 2.5 Million Passengers AIF Program Airport Capital Total Burtch Trunk KLO Rd Mission Creek Sewer Connection Renewal ‐ Wastewater Mains and Facilities Rialto (SCA 16) Sewer Connection Project Rutland Centre (SCA 22) Sewer Connection Project Wastewater Capital Total

50,000 750,300 513,400 1,313,700 450,000 3,030,600 3,480,600 3,411,900 3,047,200 537,300 88,583,200 95,579,600 1,230,100 874,200 5,397,700 779,700 10,301,600 18,583,300

Total multi‐year capital projects

10YCP Ref B1 B3

3,413,800

Parks Capital Total

Stockpiles and Reprocessing Areas Relocation

Funding Source RESERVE RESERVE

148,180,700

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SUMMARY OF PROGRAM REQUESTS The details of carryover requests related to specific programs are not presented in the Financial Plan as they are part of a larger annual program consisting of projects that exceed annual budget and will continue indefinitely. The operating and capital programs requested for carryover are summarized below.

Operating Program Requests Community for All Improvement Miscellaneous Drainage Regional Air Quality Transportation Master Planning Program

Project Amount

Funding Source

63,400 82,000 230,300 11,200

RESERVE RESERVE FED/RES/REV RESERVE

Infrastructure Total

386,900

Partnerships & Investments Total

76,800

Facility Condition Assessments

RESERVE

266,100 300,000

Climate Action Plan Housing Reserve Fund Planning & Development Services Total Total program operating requests

Capital Program Requests Irrigation Infrastructure Renewal Kelowna Memorial Cemetery ‐ Improvements Knox Mountain Park Improvements Parkland Acquisition Parks Capital Total Active Transportation Corridor Bridge Rehabilitation Crosswalk Safety ‐ Signals and Flashers Pedestrian and Road Safety Projects Roads Resurfacing Safe Routes to School Program Sidewalk and Bikeway Renewal Sidewalk Network Expansion Street Light Renewal Traffic Calming Traffic Signals and Roundabouts Transit ‐ Equipment Renewal Transit ‐ Land Acquisition Transit ‐ New Equipment Transportation Capital Total Containment Devices Storm Drainage Capital Total Offsite & Oversize ‐ Water Water Network and Facility Renewal Water Capital Total Offsite & Oversize ‐ Wastewater Wastewater Capital Total Total program capital projects

FED/RES RESERVE

566,100 1,029,800

Project Amount 133,700 187,400 84,400 2,720,000 3,125,500 384,000 174,700 9,100 466,500 198,700 41,900 31,900 122,500 774,800 90,200 758,000 129,300 235,200 20,200 3,437,000 168,400 168,400 401,500 1,271,800 1,673,300 418,700 418,700 8,822,900

Funding Source RESERVE RESERVE RESERVE RESERVE

10YCP Ref P8 P9 P7 P1

RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RESERVE RES/GRANT RESERVE RESERVE

T5 T4 T7 T7 T4 T7 T4 T6 T4 T7 T8 T4 T9 T9

RESERVE

RESERVE RESERVE

W5 W6

RESERVE

WW4

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OPERATING BUDGET

2023 FINANCIAL PLAN

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2023 Operating Requests Carryover Budget Summary - General Fund Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

Utility Reason

437 North End Area Plan

229,500

(54,500)

(175,000)

0 EXT EVENT

110,700

(110,700)

0 MULTIYEAR

221,000

(221,000)

0 MULTIYEAR

Planning & Development Services Division

Champion of the Environment Term Position 4690 Hwy 97 Agricultural Considerations

Climate Action Plan

266,100

(216,600)

(49,500)

0 PROGRAM

~ ~

Healthy Housing Strategy

66,500

(66,500)

0 MULTIYEAR

Housing Reserve Fund

300,000

(300,000)

0 PROGRAM

Infill Housing Development Approvals Program Pandosy Urban Centre Plan

112,100

(112,100)

0 MULTIYEAR

17,800

(17,800)

0 MULTIYEAR

1,323,700

(920,600)

(403,100)

437 Land Strategy and Revitalization

10,100

(10,100)

0 SCHED

438 Provision of Shelter Services Optimization of Physical Locations 438 Strategic Land Development Projects

38,100

(38,100)

0 DESIGNOPT

68,900

(68,900)

0 EXT EVENT

439 Energy Savings Program

95,000

(65,600)

(29,400)

0 WAITGRANT

439 Technical Specification Development Buildings 440 Operational Assessment of Municipal Boating Facilities - Ph II 440 Building Master Plan

52,500

(52,500)

0 SCHED

78,200

(78,200)

0 EXT EVENT

250,000

(250,000)

0 SCHED

441 Community Health Centre Public Art

19,000

(9,400)

(9,600)

0 EXT EVENT

441 Cook Road Boat Launch - Provincial Approvals 442 Future Buildings Planning

72,600

(22,600)

(50,000)

0 DESIGNOPT

41,900

(41,900)

0 SCHED

442 Kelowna Police Services Building Accommodation Study 443 Parkinson Rec Centre/SD23 Partnership 443 Parks Master Plan

50,000

(50,000)

0 EXT EVENT

41,400

(41,400)

0 EXT EVENT

94,100

(94,100)

0 EXT EVENT

444 Creative Hub Phase 2 – Implementation 444 Curb Space Management Strategy Development 445 Parking Strategy - Capri-Landmark Area Plan Development ~ Cook Rd. Boat Launch Dredging

82,800

(82,800)

0 EXT EVENT

40,000

(40,000)

0 SCHED

16,800

(16,800)

0 EXT EVENT

106,900

(106,900)

0 MULTIYEAR

~ ~

Division Total

Partnerships & Investments Division

Facility Condition Assessments

76,800

(76,800)

0 PROGRAM

858 Ellis Street Shelter

492,500

(492,500)

0 MULTIYEAR

350,000

(350,000)

0 MULTIYEAR

~ *4690 Hwy 97 Agricultural Considerations

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2023 FINANCIAL PLAN

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Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

Utility Reason

Division Total

2,077,600

(1,988,600)

(29,400)

(59,600)

445 Hwy 97 & McCurdy Rd Tree Planting

75,500

(75,500)

0 SCHED

446 Landfill - Sliver Fill and Area 3 Landfill Gas Final Design 446 Landfill Avocet Wetland Restoration

21,300

(21,300)

0 SCHED

150,000

(150,000)

0 DESIGNOPT

447 Landfill Gas Blower Maintenance

11,800

(11,800)

0 EXT EVENT

447 Landfill Roberts Lake Environmental Management 448 Landfill Waste Reduction - Evaluation of Building Deconstruction 448 Okanagan Rail Trail Operational Activities 449 Preliminary Design Program

37,400

(37,400)

0 SCHED

50,000

(50,000)

0 SCHED

28,900

(28,900)

0 EXT EVENT

101,900

(101,900)

0 SCHED

20,000

(20,000)

0 SCHED 0 EXT EVENT

Infrastructure Division

449 Safety and Operations, Investigation Safety Study 450 Traffic & Transportation Engineering Traffic Calming 450 Water Integration Long-Range Plan

20,000

(20,000)

183,400

(183,400) SCHED

451 Bicycle Map and Wayfinding Program

15,000

(15,000)

0 SCHED

451 Low Carbon Transportation: Neighbourhood Bikeway Program 452 Major Employer Commute Trip Reduction - Pilot Program 452 Regional Goods Movement Study

50,000

(50,000)

0 SCHED

30,000

(30,000)

0 SCHED

100,400

(100,400)

0 EXT EVENT

453 Transportation Safety Strategy

80,000

(80,000)

0 SCHED

453 Area Based Water Management Plan

385,600

(94,600)

(291,000) SCHED

454 Hill Spring Dam Study

75,000

(75,000)

0 SCHED

454 Landfill - Stormwater and Property Planning 455 North End Industrial Area Servicing Plan 455 Samurai Court Slope Stability

50,000

(50,000)

56,800

13,300

(13,300)

456 Time Series Data Extraction from SCADA 456 ICIP Joint Study Project

21,800

(7,200)

171,000

(171,000)

0 EXT EVENT

457 Midtown Core Optimization

98,500

(98,500)

0 EXT EVENT

457 Orchard Park Exchange

135,700

(135,700)

0 EXT EVENT

458 Rutland Transit Exchange Refurbishment 458 Transit Maintenance Facility

50,000

(50,000)

0 SCHED

145,100

(145,100)

0 EXT EVENT

Regional Air Quality

230,300

(139,600)

(10,700)

(80,000)

0 PROGRAM

0 DESIGNOPT (56,800) SCHED 0 EXT EVENT (14,600) SCHED

Community for All Improvement

63,400

(63,400)

0 PROGRAM

Miscellaneous Drainage

82,000

(82,000)

0 PROGRAM

Transportation Master Planning Program * 2040 Infrastructure Plan Consulting Support

11,200

(11,200)

0 PROGRAM

0 MULTIYEAR

2,565,300

(1,728,800)

(10,700)

(280,000)

Division Total

(545,800)

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Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

Utility Reason

459 Community Grant Policy

254,900

(254,900)

0 BASE POL

459 Apple Bowl - Ticket Booth

50,000

(50,000)

0 DESIGNOPT

460 Event Support Policy

604,800

(604,800)

0 BASE POL

460 Island Stage - Planning & Design

50,000

(50,000)

0 SCHED

461 Memorial Arena - Event Hosting Audit

20,000

(20,000)

0 EXT EVENT

461 Sport League Management Software

19,400

(19,400)

0 DESIGNOPT

47,700

(47,700)

0 MULTIYEAR

45,500

(45,500)

0 MULTIYEAR

311,200

(311,200)

0 MULTIYEAR

88,900

(88,900)

0 MULTIYEAR

PEOPLE Peer Navigators Capacity Building: Health Canada Grant

75,000

(75,000)

0 MULTIYEAR

Division Total

1,567,400

(1,092,300)

(475,100)

170,700

(170,700)

0 SCHED

19,900

(19,900)

0 SCHED

92,300

(92,300)

0 MULTIYEAR

282,900

(282,900)

8,250,000

(8,250,000)

0 EXT EVENT

463 Strengthening Communities Phase 1

548,400

(548,400)

0 EXT EVENT

464 Supportive Housing Community Inclusion (CPTED) ~ Building Safer Communities Grant

25,000

(25,000)

0 EXT EVENT

141,400

(141,400)

0 MULTIYEAR

98,000

(98,000)

0 MULTIYEAR

499,900

(499,900)

0 MULTIYEAR

911,300

(911,300)

0 MULTIYEAR

10,474,000

(8,872,900)

(1,601,100)

464 Strategy Management Software

62,900

(62,900)

0 SCHED

52,900

(52,900)

0 MULTIYEAR

20,000

(20,000)

0 MULTIYEAR

Active Living & Culture Division

~ ~ ~ ~

Indigenous Community Engagement Framework H2O Adventure Fitness Centre Operating Model Review Indigenous Harm Reduction Health Canada Grant Journey Home - Reaching Home Grant

Corporate & Protective Services Division Corporate Services 462 Social Disorder & Employee Safety Committee 462 Talent Acquisition Software Position Management Module ~ Business Continuity COVID Response Division Total

Corporate & Protective Services Division Community Safety 463 RCMP Retroactive Payment

~ ~

Community Safety Plan Implementation Overnight Sheltering Strengthening Communities Phase 2 Outdoor Navigation Strategy Division Total

Corporate Strategic Services Division

AI/Chatbot Development Approvals Program Fire Department Management System Replacement

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2023 FINANCIAL PLAN

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Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

135,800

(82,900)

(52,900)

465 Landfill Value for Money Audit

33,800

(33,800)

0 SCHED

465 Enhancement of Corporate Purchasing Card Program 466 Unit 4 Business World Approval Workflow 466 20 Year Servicing Plan and DCC Bylaw Update 467 Capital Planning Process Review

39,500

(39,500)

0 SCHED

29,200

(29,200)

0 SCHED

100,700

(92,300)

(8,400) SCHED

50,000

(50,000)

0 SCHED

34,600

(34,600) SCHED

183,800

(183,800)

0 MULTIYEAR

99,400

(62,200)

(12,400)

(24,800) MULTIYEAR

571,000

(490,800)

(12,400)

(67,800)

18,997,700 (15,459,800)

(2,572,300)

(352,000)

(613,600)

Division Total

Utility Reason

Financial Services Division

467 Kelowna Integrated Water Asset Management Financial Planning System and Process ~ Review 2040 Infrastructure Plan Consulting ~ Support Division Total

Sub-Total

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

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2023 FINANCIAL PLAN

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PROJECTS UNDER $10,000 Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

Utility Reason

City Administration Division ~

Wellness Gym Renovation

10,000

(10,000)

0 SCHED

Ukraine Donation

4,500

(4,500)

0 SCHED

14,500

(14,500)

7,500

(7,500)

0 EXT EVENT

7,500

(7,500)

Division Total Planning & Development Services Division ~

Heritage Strategy Division Total

Active Living & Culture Division ~

Partnership - Syilx Arts and Culture

8,800

(8,800)

0 DESIGNOP

Community Shelter Plan

8,700

(8,700)

0 EXT EVENT

17,500

(17,500)

7,700

(7,700)

0 SCHED

7,700

(7,700)

19,044,900 (15,507,000)

(2,572,300)

(352,000)

(613,600)

Division Total Financial Services Division ~

PS 3280 Asset Retirement Obligation Standard Division Total

Grand Total

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

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2023 FINANCIAL PLAN

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2023 Operating Requests Carryover Budget Summary - Utility Funds Page Description

Amount

Reserve

Borrow

Grant/Other

Revenue

Utility Reason

468 Emergency Response Plan Update Water 468 Water Operations Supply Projects 2022

22,400

(22,400)

0 EXT EVENT

44,600

(44,600)

0 EXT EVENT

469 Pressure Reducing Valve Condition Assessment 469 Water Integration Planning

50,000

(50,000)

0 SCHED

125,400

(125,400)

0 SCHED

450 * Water Integration Long-Range Plan

0 SCHED

466 * 20 Year Servicing Plan and DCC Bylaw Update 467 * Kelowna Integrated Water Asset Management 453 * Area Based Water Management Plan

0 SCHED

0 MULTIYEAR

242,400

(242,400)

470 Commonage - Odour Management Plan Update 470 Burtch Sewer Condition Assessment

44,100

(29,300)

(14,800)

0 EXT EVENT

72,700

(72,700)

0 DESIGNOPT

466 * 20 Year Servicing Plan and DCC Bylaw Update 455 * North End Industrial Area Servicing Plan 456 * Time Series Data Extraction from SCADA ~ * 2040 Infrastructure Plan Consulting Support

0 SCHED

0 MULTIYEAR

Department Total

116,800

(102,000)

(14,800)

Grand Total

359,200

(344,400)

(14,800)

Water

455 * North End Industrial Area Servicing Plan 456 * Time Series Data Extraction from SCADA ~ * 2040 Infrastructure Plan Consulting Support Department Total

Wastewater

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

Page 436

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Planning & Development Services Policy & Planning

Title:

North End Area Plan

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested for the North End Area Plan which is a multi-year project and is expected to be completed in late 2023. The project is vast and complex, and requires further technical analysis and coordination with the Mill Site Area Redevelopment Plan application. The Background and Vision and Objectives for the Plan were approved in 2022, and the next stage of concept development will be forwarded to Council Q2, 2023.

2022 Budget:

464,500

2022 Expenditures: Carryover Requested:

235,000

Strategic Direction:

2023

Expected Completion: Dec 2023

229,500 Vibrant neighbourhoods - Number of urban centre development plans is increasing

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

229,500

(54,500)

(175,000)

Division: Department:

Partnerships & Investments Real Estate

Priority: 1

Title:

Land Strategy and Revitalization

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to complete the Land Strategy and revitalization initiative. The project was delayed due to internal staffing.

2022 Budget:

16,600

2022 Expenditures: Carryover Requested:

6,500

Strategic Direction:

2023

Expected Completion: Dec 2023

10,100 Social & inclusive - Policy guides where the city invests resources

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

10,100

(10,100)

Page 437

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Real Estate

Title:

Provision of Shelter Services - Optimization of Physical Locations

Priority: 1

Reason: Design Option ONE-TIME CARRYOVER

Justification: The City has been in on-going discussions with a variety of organizations and community groups to optimize the delivery of shelter services in a coordinated and strategic manner. Carryover is requested to continue with expenses for consulting and project management to support different models for shelter sites and a review of how existing shelter resources could be allocated in a manner that best meets the needs of our community.

2022 Budget:

45,500

2022 Expenditures: Carryover Requested:

7,400

Strategic Direction:

2023

Expected Completion: Dec 2023

38,100 Social & inclusive - Policy guides where the city invests resources

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

38,100

(38,100)

Division: Department:

Partnerships & Investments Real Estate

Priority: 1

Title:

Strategic Land Development Projects

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover funding is requested to cover upcoming fees associated with the disposition of 1746 Water Street and 380 Harvey Avenue. The project was not completed in 2022 due to additional unexpected remediation requirements.

2022 Budget:

100,000

2022 Expenditures: Carryover Requested:

31,100

Strategic Direction:

2023

Expected Completion: Dec 2023

68,900 Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

68,900

(68,900)

Page 438

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Building Services

Title:

Energy Savings Program

Priority: 1

Reason: Awaiting Grant ONE-TIME CARRYOVER

Justification: Carryover is requested as the Clean BC and FortisBC grant funding opportunities were delayed in 2022 which caused delays in pursuing the Waste Water Treatment Facility decarbonization study in 2023. Expected completion is Q4 2023.

2022 Budget:

207,800

2022 Expenditures: Carryover Requested:

112,800

Strategic Direction:

2023

Expected Completion: Dec 2023

95,000 Environmental protection - Resiliency & adaptability to climate change

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

95,000

(65,600)

(29,400)

Division: Department:

Partnerships & Investments Building Services

Priority: 1

Title:

Technical Specification Development - Buildings

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested as staff resourcing caused delays in completion. Project is 80 per cent complete and the remaining specifications are quantified. Expected completion is Q4 of 2023.

2022 Budget:

72,200

2022 Expenditures: Carryover Requested:

19,700

Strategic Direction:

2023

Expected Completion: Dec 2023

52,500 Clear direction - Services, processes & business activities are transformed

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

52,500

(52,500)

Page 439

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Real Estate

Title:

Operational Assessment of Municipal Boating Facilities - Ph II

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: The effective operation and management of the City's three primary boat launch facilities (Cook Rd, Water St and Sutherland Park) has become increasingly challenging as a result of ever-increasing marine traffic on Okanagan Lake. Initial work on this project began in the late summer/fall of 2021 and included data collection, issue identification and initial consultation with launch users. The Phase one reporting from third-party consultants was not completed in 2022, causing Phase II delays. Carryover is requested for additional third-party consulting services to expand on this work, once Phase I scope has been completed.

2022 Budget:

109,800

2022 Expenditures: Carryover Requested:

31,600

Strategic Direction:

2023

Expected Completion: Dec 2023

78,200 Vibrant neighbourhoods - Accessible and multi-purpose amenities

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

78,200

(78,200)

Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Building Master Plan

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested for consultancy work in association with the Strategic Facilities Masterplan. Preparatory precedent studies have been completed and building condition assessments currently underway. Consultants have yet to be appointed to commence the plan. Work has been delayed due to staff resources focusing on other priorities.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2024

250,000 0 250,000

Social & inclusive - Policy guides where the city invests resources

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

250,000

(250,000)

Page 440

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Community Health Centre Public Art

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to cover the legal fees for the associated statutory right of way which remains outstanding.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

19,200 200 19,000

Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

19,000

(9,400)

(9,600)

Division: Department:

Partnerships & Investments Parks & Buildings Planning

Priority: 1

Title:

Cook Road Boat Launch - Provincial Approvals

Reason: Design Option ONE-TIME CARRYOVER

Justification: Carryover is requested to honor contract commitments for consultant services associated with the Provincial approvals submitted for improvements to the Cook Road boat launch. This is a multi-year project, and as it is a complex Provincial Section 11 approval, no timeline can be provided on when it will conclude. Costs are shared with the partnering developer.

2022 Budget:

100,000

2022 Expenditures: Carryover Requested:

27,400

Strategic Direction:

2023

Expected Completion: Dec 2024

72,600 Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

72,600

(22,600)

(50,000)

Page 441

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Future Buildings Planning

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to fund preparatory building studies and condition assessments in support of the forthcoming Buildings Masterplan to commence in 2023. The work was not completed in 2022 due to insufficient staff resources. Budget is now approved for a buildings supervisor role.

2022 Budget:

63,000

2022 Expenditures: Carryover Requested:

21,100

Strategic Direction:

2023

Expected Completion: Dec 2024

41,900 Other - Council Resolution

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

41,900

(41,900)

Division: Department:

Partnerships & Investments Parks & Buildings Planning

Priority: 1

Title:

Kelowna Police Services Building - Accommodation Study

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to cover contractural commitments to consultants for this work. There is currently a backlog on security clearance approvals required for the consultants.

2022 Budget:

Expected Completion: Dec 2024

50,000

2022 Expenditures: Carryover Requested:

50,000

Strategic Direction:

Community Safety - Crime rates are decreasing

2023

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Page 442

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Parkinson Rec Centre/SD23 Partnership

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested for ongoing consultancy work specific to a land exchange and partnership agreement with School District 23 (SD23) at the Parkinson Recreation Center site. All consultancy costs are shared with SD23, and subject to Ministry of Education funding which cannot be predicted.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2024

41,700 300 41,400

Vibrant neighbourhoods - Accessible and multi-purpose amenities

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

41,400

(41,400)

Division: Department:

Partnerships & Investments Parks & Buildings Planning

Title:

Parks Master Plan

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to honour existing contractual commitments for consultancy work in association with the Parks Masterplan currently underway. This multi-year project was delayed in 2022 to ensure alignment with new Council priorities.

2022 Budget:

178,700

2022 Expenditures: Carryover Requested:

84,600

Strategic Direction:

2023

Expected Completion: Dec 2024

94,100 Vibrant neighbourhoods - Animated parks & public spaces

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

94,100

(94,100)

Page 443

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Partnerships Office

Title:

Creative Hub Phase 2 – Implementation

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to fund costs associated with remaining activities including interior design and grant applications. Due to the COVID-19 impact on consultants/artists, the project was delayed by one year, thus pushing everything to the following year rather than being completed on the targeted previous year.

2022 Budget:

100,000

2022 Expenditures: Carryover Requested:

17,200

Strategic Direction:

2023

Expected Completion: Dec 2023

82,800 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

82,800

(82,800)

Division: Department:

Partnerships & Investments Real Estate

Priority: 1

Title:

Curb Space Management Strategy - Development

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to allow for development of a curb space management strategy. Staff were unable to launch this project in 2022 due to internal resource limitations. This strategy will support the effective management of curb space to support mobility and access for people and goods, particularly within town centres. In recent years, demands for this space has continued to grow and broaden to accommodate new forms of mobility that require access.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2024

40,000 0 40,000

Transportation & mobility - People of all ages & abilities can easily get around

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

40,000

(40,000)

Page 444

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Partnerships & Investments Real Estate

Title:

Parking Strategy - Capri-Landmark Area Plan Development

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover of this budget will allow development of the Capri-Landmark area plan to continue in 2023, now that parking usage/demand patterns are normalizing. The Citywide Parking Strategy identified Capri-Landmark as a neighborhood that requires a detailed Parking Management Area Plan to deal with current and emerging/future issues. The initial collection of occupancy data began in fall 2020, however the project has been slowed due to pandemic impacts on parking demand.

2022 Budget:

21,500

2022 Expenditures: Carryover Requested:

4,700

Strategic Direction:

2023

Expected Completion: Dec 2023

16,800 Transportation & mobility - Investments are connecting high density areas

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

16,800

(16,800)

Division: Department:

Infrastructure Infrastructure Operations

Priority: 1

Title:

Hwy 97 & McCurdy Rd Tree Planting

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: In 2022, the Parks Urban Forestry team was unable to secure contractors for the Hwy 97 Tree Planting & Black Mountain Tree Planting projects. The team is committed to ensuring that this work is completed by December 2023 to meet the needs of the community.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

75,500 0 75,500

Environmental protection - Resiliency & adaptability to climate change

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

75,500

(75,500)

Page 445

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Landfill - Sliver Fill and Area 3 Landfill Gas Final Design

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: The project could not be completed due to limited staff capacity. With the site now operating at full staffing levels, this work should be completed in Q3 of 2023.

2022 Budget:

100,000

2022 Expenditures: Carryover Requested:

78,700

Strategic Direction:

2023

Expected Completion: Sep 2023

21,300 Financial management - Non-tax revenues are increasing

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

21,300

(21,300)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Landfill Avocet Wetland Restoration

Reason: Design Option ONE-TIME CARRYOVER

Justification: The project could not be completed in 2022 as an updated study has been requested based on current environmental conditions. City staff have contacted some consultants, and this project will be re-evaluated once the updated study is received.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

150,000 0 150,000

Environmental protection - Predictive modelling & forecasting

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

150,000

(150,000)

Page 446

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Landfill Gas Blower Maintenance

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: The initial maintenance work was completed in Q4 of 2022, however this blower has not been fully re-commissioned due to inability to procure parts from the supplier due to supply chain issues. This budget carryover is requested to allow for any additional adjustments and parts that may be required once the blower is re-started and inspected.

2022 Budget:

20,000

2022 Expenditures: Carryover Requested:

8,200

Strategic Direction:

2023

Expected Completion: Sep 2023

11,800 Environmental protection - Greenhouse gas emissions are decreasing

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

11,800

(11,800)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Landfill Roberts Lake Environmental Management

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carry over of all available funds is requested for this project. The project could not be completed due to limited staff and availability of qualified consultants. City staff has contacted some consultants, and this work should be completed in Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Sep 2023

37,400 0 37,400 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

37,400

(37,400)

Page 447

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Landfill Waste Reduction - Evaluation of Building Deconstruction

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to complete the evaluation of the building deconstruction project. The project was not completed in 2022 as there were no house demolitions scheduled. The next available demolition project is scheduled for Q2 of 2023 and this work will be completed at that time.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2023

50,000 0 50,000

Financial management - Cost to deliver services is quantified

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Division: Department:

Infrastructure Integrated Transportation

Priority: 1

Title:

Okanagan Rail Trail Operational Activities

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to complete the missing rail-trail connection from Old Vernon Road to the boundary of Lake Country near Beaver Lake Road, through Okanagan Indian Band (OKIB) lands. Project was not complete in 2022 as coordinating with numerous stakeholders (OKIB and Friends of the Rail Trail) proved to be more time consuming than planned. The design is complete and the project is ready for Request For Proposal (RFP) tender.

2022 Budget:

44,450

2022 Expenditures: Carryover Requested:

15,550

Strategic Direction:

2023

Expected Completion: Dec 2023

28,900 Transportation & mobility - Investments are connecting high density areas

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

28,900

(28,900)

Page 448

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Preliminary Design Program

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to complete the Pandosy/Richter Corridor study. The Pandosy/Richter Corridor study was delayed due to staff vacancies. It is expected with new staff starting in early 2023 and a developed work plan, the Corridor study will commence in early 2023. This work will clarify the future role of the Pandosy and Richter corridors in accommodating travel demand between Pandosy and Downtown and identify future transit and infrastructure options. Completion of the plan is targeted for Q2 2024.

2022 Budget:

145,300

2022 Expenditures: Carryover Requested:

43,400

Strategic Direction:

2023

Expected Completion: Aug 2024

101,900 Clear direction - Common understanding of future direction

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

101,900

(101,900)

Division: Department:

Infrastructure Integrated Transportation

Priority: 1

Title:

Safety and Operations, Investigation - Safety Study

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to continue work on the Loseth Corridor Safety Study. This study was initiated to help address existing issues, community service requests and future challenges anticipated with growing traffic volumes due to growth along the corridor and within the Black Mountain neighbourhood. The study was delayed due to staff availability. In 2022 background data was collected and existing issues were identified. In 2023 future traffic projections will be completed and infrastructure recommendations developed. The expected completion of the study is Q3 2023. Study results will inform future projects and budget requests.

2022 Budget:

57,750

2022 Expenditures: 2022 Budget Not Required: Carryover Requested:

1,100 36,650 20,000

Strategic Direction:

2023

Expected Completion: Jun 2023

Transportation & mobility - People of all ages & abilities can easily get around

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

20,000

(20,000)

Page 449

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Traffic & Transportation Engineering Traffic Calming

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested for the supply of concrete traffic calming curbs with expected delivery in Q1/Q2 2023. The product will be used for various traffic-calming projects. The curbs were not delivered in 2022 due to supplier issues.

2022 Budget:

Expected Completion: Mar 2023

20,000

2022 Expenditures: Carryover Requested: Strategic Direction:

0 20,000

Transportation & mobility - People of all ages & abilities can easily get around

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

2023

20,000

(20,000)

Division: Department:

Infrastructure Infrastructure

Title:

Water Integration Long-Range Plan

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to be used in conjunction with the overall Kelowna Water Integration Plan budget to complete a number of water capital planning consultant studies to complete the Water Integration Plan. The work was not completed in 2022 as staff focused on the Water Security Plan. The City will continue working with the Improvement Districts and working on the final plans through 2023 with completion anticipated for Q4 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2024

183,400 0 183,400

Environmental protection - Predictive modelling & forecasting

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

183,400

(183,400)

Page 450

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Bicycle Map and Wayfinding Program

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested as project was not complete in 2022 due to staffing shortages that occurred throughout all of 2022. In 2023 the project will update Kelowna's bicycle map (print and digital versions). Anticipated completion is Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Sep 2023

15,000 0 15,000

Transportation & mobility - More trips by transit, carpooling, cycling & walking

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

15,000

(15,000)

Division: Department:

Infrastructure Integrated Transportation

Priority: 1

Title:

Low Carbon Transportation: Neighbourhood Bikeway Program

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested as 2022 presented some unanticipated challenges due to staffing shortages throughout all of 2022. In 2023 staffing shortages have been rectified and funds are committed. Project will commence in Q1 of 2023. Anticipated completion is Q4 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

50,000 0 50,000

Transportation & mobility - More trips by transit, carpooling, cycling & walking

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Page 451

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Major Employer Commute Trip Reduction - Pilot Program

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

30,000 0 30,000

Transportation & mobility - Travel times are optimized

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

30,000

(30,000)

Division: Department:

Infrastructure Integrated Transportation

Priority: 1

Title:

Regional Goods Movement Study

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested for this multi-year project. A funding agreement is in place with the Ministry of Transportation and Infrastructure (MoTI), as 50/50 funding partners. MoTI holds the contract with the consultant and will invoice City of Kelowna once the project is complete. MoTI experienced delays in 2022, but is now on track with an expected completion of Q2 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2023

100,400 0 100,400

Transportation & mobility - Travel times are optimized

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

100,400

(100,400)

Page 452

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Transportation Safety Strategy

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested for this multi-year project intended for kickoff in Q1 of 2023 when the department is fully staffed. Staffing challenges resulted in the project being delayed in 2022. In 2023 the carryover funds will be utilized for project scoping and purchase orders with implementation planned for Q4 of 2023.This Multi-year project will commence in 2023 and planned for completion in Q4 of 2024.

2022 Budget:

Expected Completion: Dec 2024

80,000

2022 Expenditures: Carryover Requested: Strategic Direction:

0 80,000

Transportation & mobility - People of all ages & abilities can easily get around

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

80,000

(80,000)

2023 Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Area Based Water Management Plan

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested for this project which is a strategic process that develops the policies, strategies, goals and budgetary needs to address water management throughout the City of Kelowna. The work encompasses the coordination of work plans of various sectors including water, wastewater, storm water, natural assets, environmental flow needs and wastewater. The regulatory controls and legislation for many of these items lies outside City control. This is a multi-year project with Stage 1 completed. In 2023, the process will continue as a Water Security Plan. This is a multi-year program with work continuing throughout 2026.

2022 Budget:

402,600

2022 Expenditures: Carryover Requested:

17,000

Strategic Direction:

2023

Expected Completion: Dec 2026

385,600 Environmental protection - Resiliency & adaptability to climate change

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

385,600

(94,600)

(291,000)

Page 453

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Hill Spring Dam Study

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: In 2021, the Provincial Dam Safety Officer emphasized the importance of improving the maintenance of Hill Spring Dam and the associated structures located in the Upper Mission. The dam was acquired by the City as an asset through the development process, and a new storage license is required from the Province before completing further upgrades. The studies required include environmental, financial and regulatory investigations required as background documentation. The work was deferred to start in 2023 following development of new dam safety processes with operations staff. This work is expected to be completed in Q2 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

75,000 0 75,000

Economic resiliency - Infrastructure deficit is reduced

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

75,000

(75,000)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Landfill - Stormwater and Property Planning

Reason: Design Option ONE-TIME CARRYOVER

Justification: This project coincides with a landfill stormwater project to discharge stormwater to Brandts Creek and future environmental works expected to improve riparian and wildlife conditions. The scope of property needs or natural conversions are not yet known, consultant selection for this is anticipated in Q3 2023. The work will be completed by Q4 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2024

50,000 0 50,000

Clear direction - Common understanding of future direction

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Page 454

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

North End Industrial Area Servicing Plan

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested for staff to continue to undertake an area plan combining servicing of the Jim Bailey Industrial area, Okanagan Indian Band lands, Lake Country, and new development growth. Agreements are now developed between the parties, and further planning, engagement, legal studies and consultant work is required. Project was delayed due to additional time required to obtain and ratify agreements from all stakeholders. This project will be completed by Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

56,800 0 56,800

Clear direction - Common understanding of future direction

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

56,800

(56,800)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Samurai Court Slope Stability

Reason: External Event ONE-TIME CARRYOVER

Justification: This project budget is used to assist with coordination of any private activities and needs in the Samurai Court area following an earlier landslide impacting a number of houses. This budget will be maintained until the issue is solved.

2022 Budget:

17,000

2022 Expenditures: Carryover Requested:

3,700

Strategic Direction:

2023

Expected Completion: Dec 2023

13,300 Environmental protection - Emergency response & preparation

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

13,300

(13,300)

Page 455

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Time Series Data Extraction from SCADA

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to continue this multi-year project to develop the City's Infrastructure Systems processes for storing, analyzing and accessing time series information such as rainfall, temperature, creek flow, lake levels and other non-critical data series. Ultimately this data will be available for public consumption and Emergency Operation Center needs. In 2023 information will be extracted from the SCADA server located at the Wastewater Treatment Facility.

2022 Budget:

107,800

2022 Expenditures: Carryover Requested:

86,000

Strategic Direction:

2023

Expected Completion: Dec 2023

21,800 Environmental protection - Emergency response & preparation

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

21,800

(7,200)

(14,600)

Division: Department:

Infrastructure Integrated Transportation

Title:

ICIP Joint Study Project

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Budget was established in 2019 as a multi-year project to support the recently approved study and conceptual design of major transit infrastructure projects, Orchard Park Exchange, Mission Rec Exchange, Rutland Park & Ride/Mobility Hub, that are candidates for the Federal Investing in Canada Infrastructure Program (ICIP). This work began in early 2020 with the final phase of conceptual design estimated completion in late 2023. This project was not complete in 2022 as it supports the Midtown, Orchard Park, and Transit Maintenance Facility projects and is tied to their completion so is accordingly delayed to 2023 and the ICIP deadlines were changed for these projects.

2022 Budget:

184,800

2022 Expenditures: Carryover Requested:

13,800

Strategic Direction:

2023

Expected Completion: Dec 2023

171,000 Transportation & mobility - More opportunities to learn about transportation

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

171,000

(171,000)

Page 456

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Midtown Core Optimization

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Budget was established in 2020 as a multi-year project to explore transit priority and transit investment in the Cooper Road, Springfield and Enterprise corridors in conjunction with the Midtown Exchange siting study, all to be completed in 2023. This study will allow for application under the Investing in Canada Infrastructure Program (ICIP), a federal grant program that could potentially fund up to 80% of approved transit improvement projects. This project was not complete in 2022 as land negotiations which defines the project are ongoing.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

98,500 0 98,500

Transportation & mobility - Travel times are optimized

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

98,500

(98,500)

Division: Department:

Infrastructure Integrated Transportation

Title:

Orchard Park Exchange

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Budget was established in 2020 as a multi-year project to develop preliminary design development for the Orchard Park Exchange, which has reached its capacity. This project will consider options to expand the exchange both on-site and on adjacent streets while also seeking to reduce delays for buses entering and departing the exchange. The study will be completed concurrently with studies underway for various other exchanges and is expected to be completed in late 2023. The project was not completed in 2022 due to complexities of project including discussions regarding land impacts which are critical to project success.

2022 Budget:

152,800

2022 Expenditures: Carryover Requested:

17,100

Strategic Direction:

2023

Expected Completion: Dec 2023

135,700 Transportation & mobility - More trips by transit, carpooling, cycling & walking

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

135,700

(135,700)

Page 457

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Integrated Transportation

Title:

Rutland Transit Exchange Refurbishment

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: This request is to support refurbishment of Phase I artwork panels. Work intended for 2022 was held back due to occur in conjunction with Phase II of Rutland exchange. Work to occur in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

50,000 0 50,000

Transportation & mobility - More trips by transit, carpooling, cycling & walking

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Division: Department:

Infrastructure Integrated Transportation

Title:

Transit Maintenance Facility

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Budget was established in 2020 as a multi-year project to advance preliminary site layout, facility design, site servicing, and costing to refine recommended site scope and cost for the replacement of the existing over-capacity Hardy Street facility. Study results will support future project phases and applications to the federal Investing in Canada Infrastructure Program (ICIP), under which up to 80% of approved transit improvement project costs may be funded. The project was delayed in 2022 due to continued work regarding rezoning and work with Glenmore Ellison Improvement District for water servicing. Slated for 2023 are the final project definition, further rezoning work that is required of the Agricultural Land Reserve exclusion and funding proposal development, to be completed by late 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

153,100 8,000 145,100

Transportation & mobility - More trips by transit, carpooling, cycling & walking

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

145,100

(145,100)

Page 458

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Active Living & Culture Cultural Services

Title:

Community Grant Policy

Priority: 1

Reason: Policy ONE-TIME CARRYOVER

Justification: Per the Community Grant Policy No. 380, funds not expended in a focus area in any given year will be automatically carried over and retained for use in the same focus area in the subsequent year.

2022 Budget:

408,900

2022 Expenditures: Carryover Requested:

154,000

Strategic Direction:

2023

Expected Completion: Dec 2023

254,900 Other - Council Resolution

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

254,900

(254,900)

Division: Department:

Active Living & Culture Sport & Event Services

Title:

Apple Bowl - Ticket Booth

Priority: 1

Reason: Design Option ONE-TIME CARRYOVER

Justification: Carryover is requested as project delays arose due to challenges related to design options and stakeholder expectations. Initial sourcing enquiries have taken place and various options have been considered. Costing and stakeholder review is underway and final sourcing and installation will take place in 2023 with anticipated completion by Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Sep 2023

50,000 0 50,000

Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Page 459

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Active Living & Culture Sport & Event Services

Title:

Event Support Policy

Priority: 1

Reason: Policy ONE-TIME CARRYOVER

Justification: Per the Event Support Policy No. 381, funds not expended in a focus area in any given year will be automatically carried over and retained for use in the same focus area in the subsequent year.

2022 Budget:

673,800

2022 Expenditures: Carryover Requested:

69,000

Strategic Direction:

2023

Expected Completion: Dec 2023

604,800 Other - Council Resolution

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

604,800

(604,800)

Division: Department:

Active Living & Culture Sport & Event Services

Priority: 1

Title:

Island Stage - Planning & Design

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested as the Request for Proposal (RFP) process was delayed due to consultant availability and scheduling conflicts. Consultant selection is completed and all design and costing work will be undertaken in 2023 with anticipated project completion by Q2 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2023

50,000 0 50,000

Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Page 460

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Active Living & Culture Sport & Event Services

Title:

Memorial Arena - Event Hosting Audit

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested as the project was delayed due to contractor availability. A consultant is secured to conduct the audit which will take place in 2023 with anticipated completion by Q2 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2023

20,000 0 20,000

Vibrant neighbourhoods - Key sites are proactively planned

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

20,000

(20,000)

Division: Department:

Active Living & Culture Sport & Event Services

Priority: 1

Title:

Sport League Management Software

Reason: Design Option ONE-TIME CARRYOVER

Justification: Carryover is requested as the Sport League Management Software project was delayed based on new legislation requirements. Software was sourced, designed and piloted in 2022. The remaining information migration, service specializations and full implementation will take place throughout the 2023 sporting seasons with anticipated completion by Q4 of 2023.

2022 Budget:

40,000

2022 Expenditures: Carryover Requested:

20,600

Strategic Direction:

2023

Expected Completion: Dec 2023

19,400 Social & inclusive - Inclusivity and diversity are increasing

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

19,400

(19,400)

Page 461

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Corporate & Protective Services Corporate & Protective Services

Title:

Social Disorder & Employee Safety Committee

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: The Social Disorder & Employee Safety Committee project was approved and initiated late in 2022. The intent of this project is to form a committee to discuss and create solutions to an increasing number of unsafe situations outdoor staff face. Due to this project not starting until late in the year, a carryover is being requested to continue this project in 2023 with June being the estimated completion.

2022 Budget:

Expected Completion: Jun 2022

175,000

2022 Expenditures: Carryover Requested:

170,700

Strategic Direction:

People - Ability to attract, select & retain talent

2023

4,300

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

170,700

(170,700)

Division: Department:

Corporate & Protective Services Corporate HR Department

Priority: 1

Title:

Talent Acquisition Software Position Management Module

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: The Talent Acquisition Software Position Management Module project did not begin as originally planned in 2022 due to the delay of other software projects that impacted resource availability. This project will now start in Q1 2023 with a targeted completion timeframe of Q3 2023.

2022 Budget:

36,000

2022 Expenditures: 2022 Budget Not Required: Carryover Requested:

0 16,100 19,900

Strategic Direction:

2023

Expected Completion: Dec 2023

People - Ability to attract, select & retain talent

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

19,900

(19,900)

Page 462

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Corporate & Protective Services Community Safety

Title:

RCMP Retroactive Payment

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: RCMP members ratified their collective agreement in August of 2021. An estimated payment of $8.25M is due to the RCMP to cover retroactive pay from 2017-2021. It was anticipated the City of Kelowna would be invoiced for this in 2022, but the RCMP was not able to provide the invoice during the year. It is anticipated the payment will occur early 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Jun 2023

8,250,000 0 8,250,000 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

8,250,000

(8,250,000)

Division: Department:

Corporate & Protective Services Community Safety

Priority: 1

Title:

Strengthening Communities Phase 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Due to the challenging labour market and supply chain issues, an extension was granted by the Union of BC Municipalities (UBCM) for the Strengthening Communities Phase 1 grant to February 14, 2023.

Expected Completion: Feb 2023

2022 Budget:

2,162,600

2022 Expenditures: Carryover Requested:

1,614,200

Strategic Direction:

Social & inclusive - Homelessness is decreasing

2023

548,400

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

548,400

(548,400)

Page 463

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Corporate & Protective Services Community Safety

Title:

Supportive Housing Community Inclusion (CPTED)

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Due to the revamping of a Crime Prevention Through Environmental Design (CPTED) Training program through an external company in late 2022 with a launch date of early 2023, carryover is requested for the CPTED training and initiatives from 2022. The CPTED program helps to support new housing facilities openings through assessment and recommendations.

2022 Budget:

75,000

2022 Expenditures: 2022 Budget Not Required: Carryover Requested:

23,000 27,000 25,000

Strategic Direction:

2023

Expected Completion: Jul 2023

Community Safety - Residents feel safe

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

25,000

(25,000)

Division: Department:

Corporate Strategic Services Corporate Strategy & Performance

Title:

Strategy Management Software

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: StrategyBlocks is a multi-year enterprise software implementation. The primary reason for the carryover is inability for business units to complete Phase I work within 2022 as originally planned, which has delayed integration and customization work with the vendor which requires budget. The implementation also started later in 2021 due to a change of vendor during the procurement process in 2021.

2022 Budget:

65,000

2022 Expenditures: Carryover Requested:

2,100

Strategic Direction:

2023

Expected Completion: Dec 2023

62,900 Clear direction - Common understanding of future direction

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

62,900

(62,900)

Page 464

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Financial Services Financial Services

Title:

Landfill Value for Money Audit

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: The value for money Audit of the Landfill was delayed due to consultant challenges and ongoing negotiations regarding the contract. A contract is now in place and a kick-off meeting was held in early December. The majority of the work is scheduled to start and be completed in 2023.

2022 Budget:

44,500

2022 Expenditures: Carryover Requested:

10,700

Strategic Direction:

2023

Expected Completion: Dec 2023

33,800 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

33,800

(33,800)

Division: Department:

Financial Services Finance Director

Priority: 1

Title:

Enhancement of Corporate Purchasing Card Program

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested due to capacity issues with Information Services Department and Financial Services Department. Draft design is being tested but more time is needed to complete the project.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Sep 2023

40,000 500 39,500

Financial management - Lower value activities are improved or stopped

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

39,500

(39,500)

Page 465

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Financial Services Finance Director

Title:

Unit 4 Business World Approval Workflow

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: This project is nearly 100% complete in technical design but invoice and PO business process requires cleanup to support the new automation. Staffing resources were limited in 2022 to complete this project however will be available in Q2 of 2023 with go live expected before Q4 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Oct 2023

30,000 800 29,200 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

29,200

(29,200)

Division: Department:

Financial Services Capital Planning and Asset Management

Title:

20 Year Servicing Plan and DCC Bylaw Update

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to finalize implementation of the new Development Cost Charges Bylaw and 20-Year Servicing Plan which were adopted by Council in 2022. Remaining work on this multi-year project will include staff engagement to ensure the new DCC program is fair, transparent and administratively efficient. The work was not completed in 2022 due to staffing challenges and priorities being shifted.

2022 Budget:

142,400

2022 Expenditures: Carryover Requested:

41,700

Strategic Direction:

2023

Expected Completion: Dec 2023

100,700 Financial management - Cost to deliver services is quantified

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

100,700

(92,300)

(8,400)

Page 466

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Financial Services Capital Planning and Asset Management

Title:

Capital Planning Process Review

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to continue the work on the capital planning process. The work was not completed in 2022 due to staffing challenges and priorities being shifted. This consulting budget will be used to review the current annual and 10-Year Capital Planning processes to ensure they meet corporate and council objectives and align with industry best practice. A consultant will be retained to complete an industry best practice review of capital planning processes and to assist staff with development of business processes and templates for capital submissions.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

50,000 0 50,000

Economic resiliency - Infrastructure deficit is reduced

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Division: Department:

Financial Services Capital Planning and Asset Management

Title:

Kelowna Integrated Water Asset Management

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to continue collecting and updating the asset information as identified in the Kelowna Water Integration Project. The work was not completed in 2022 due to staffing challenges and priorities being shifted. The remaining budget will be used to complete the outstanding inventories and support more informed decision-making on these inherited assets from Southeast Kelowna Irrigation District.

2022 Budget:

66,900

2022 Expenditures: Carryover Requested:

32,300

Strategic Direction:

2023

Expected Completion: Dec 2023

34,600 Clear direction - Common understanding of future direction

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

34,600

(34,600)

Page 467

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Emergency Response Plan Update - Water

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested to complete consulting services for the Dam Emergency Plan (DEP) template and plans for the McCulloch reservoir dams. Consultant's work was unable to complete by year end 2022.

2022 Budget:

25,000

2022 Expenditures: Carryover Requested:

2,600

Strategic Direction:

2023

Expected Completion: Feb 2023

22,400 Environmental protection - Emergency response & preparation

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

22,400

(22,400)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Water Operations Supply Projects 2022

Reason: External Event ONE-TIME CARRYOVER

Justification: Carryover is requested for the water operations supply projects not completed in 2022. The replacement of the Dilworth Altitude valve, which has reached the end of its useful life, was delayed due to inclement weather. The Ultraviolet Reactor parts were not delivered in 2022 due to supply chain issues. The Grainger Reservoir construction project design work was unable to be completed in 2022 as the work was contingent on completion of the assessment work which is now complete.

2022 Budget:

60,100

2022 Expenditures: Carryover Requested:

15,500

Strategic Direction:

2023

Expected Completion: Dec 2023

44,600 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

44,600

(44,600)

Page 468

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Pressure Reducing Valve Condition Assessment

Priority: 1

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is required for this project to help assess the lifecycle and condition of pressure reducing valves (PRV) in the water utility. Conceptual work on assessment criteria was started in 2022 with the initial work performed by City staff, however, staff are not available to complete the project and a consultant has been engaged to complete assessments in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2023

50,000 0 50,000 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

50,000

(50,000)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Water Integration Planning

Reason: Scheduling Demands ONE-TIME CARRYOVER

Justification: Carryover is requested to be used in conjunction with the overall Kelowna Water Integration Plan budget to complete a number of water capital planning consultant studies to complete the Water Integration Plan. The work was not completed in 2022 as staff focused on the Water Security Plan. The project is ready to move forward and will look at modifications to the Water Quality Enhancement Fund and associated bylaws to build reserves to achieve the long-term budget needs.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction:

2023

Expected Completion: Dec 2024

125,400 0 125,400

Environmental protection - Predictive modelling & forecasting

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

125,400

(125,400)

Page 469

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Infrastructure Utility Services

Title:

Commonage - Odour Management Plan Update

Priority: 1

Reason: External Event ONE-TIME CARRYOVER

Justification: The Odour Management Plan Update is a Ministry of Environment Permit Requirement. This Plan will be completed by Q4 2023, and was delayed due to the odour monitoring system renewal, which was impacted by supply chain issues in previous years. The cost is shared with the City of Vernon and the City's Wastewater Utility.

2022 Budget:

48,100

2022 Expenditures: Carryover Requested:

4,000

Strategic Direction:

2023

Expected Completion: Dec 2023

44,100 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

44,100

(29,300)

(14,800)

Division: Department:

Infrastructure Utility Services

Priority: 1

Title:

Burtch Sewer Condition Assessment

Reason: Design Option ONE-TIME CARRYOVER

Justification: Carryover is requested to continue the condition assessment on the Burtch Road concrete transmission main. This is a complicated area for construction and testing, which created initial project delays in obtaining a contractor. The City will install new lining in 2023, and this assessment work will precede the 2024 work across Highway 97.

2022 Budget:

98,400

2022 Expenditures: Carryover Requested:

25,700

Strategic Direction:

2023

Expected Completion: Dec 2024

72,700 Other - Supports Base Business

Amount

Reserve

Borrow

Grant

Other

Revenue

Utility

72,700

(72,700)

Page 470

CAPITAL BUDGET

2023 FINANCIAL PLAN

CITY OF KELOWNA

THIS PAGE INTENTIONALLY LEFT BLANK

Page 472

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Carryover Budget CAPITAL BUDGET Summary - General Fund Page Type

Description

Amount

Reserve

Borrow

Grant

Other

Utility Reason

82,500

(82,500)

0 EXT EVENT

58,500

(58,500)

0 SCHED

141,000

(141,000)

483 Renew Downtown Parkades-Major

717,200

(717,200)

0 EXT EVENT

Maintenance 483 New Electric Vehicle Charging Stations 484 Renew Parking Equipment and Facilities

157,500 277,700

(157,500) (277,700)

0 0

0 WAITGRAN 0 EXT EVENT

L3 - Parking Infrastructure

1,152,400

(1,152,400)

Cost Center Totals

1,293,400

(1,293,400)

699,600 294,900 164,200

(699,600) (294,900) (164,200)

0 0 0

0 MULTIYEAR 0 EXT EVENT 0 SCHED

2,714,200

(2,714,200)

0 MULTIYEAR

42,200 60,700

(42,200) (60,700)

0 0

0 DESIGNOPT 0 EXT EVENT

3,975,800

(3,975,800)

50,800

(50,800)

0 DESIGNOPT

B2 - Community and Cultural Buildings

50,800

(50,800)

487 Renew City Hall - Envelope Renewal, Study

120,800

(120,800)

0 EXT EVENT

and Design 487 Renew City Hall Improvements Phase IV and V

1,715,900

(1,715,900)

0 EXT EVENT

1,836,700

(1,836,700)

40,100

(40,100)

0 EXT EVENT

2,816,500

(2,816,500)

0 EXT EVENT

22,000

(22,000)

0 EXT EVENT

47,400

(47,400)

0 EXT EVENT

53,900

(53,900)

0 EXT EVENT

297,600

(297,600)

0 SCHED

3,277,500

(3,277,500)

Real Estate and Parking Capital 482 New

Land Remediation, 1746 Water Street Property Acquisition – 1951 Cross Road

482 New

L1 - General Land

Building Capital ~ 484 485 ~ 485 486

Growth Capital News Centre - Expansion Renew H2O Boiler Replacement Renew Mission Recreation Park, Capital News Centre - Expansion Renew Parkinson Recreation Centre Building Replacement Design Renew Rotary Beach Park Washroom Renew Rotary Center Roof Repair B1 - Parks and Recreation Buildings

486 Renew Library Chiller and Boiler

Replacement

B3 - Civic/Protective Service Buildings 488 Renew Building Systems Automation & 488 Renew 489 Renew 489 Renew 490 Renew 490 Renew

Performance Optimization General Building Infrastructure Renewal H2O Centre Heat Recovery Chiller Replacement Kelowna Community Theatre Stage Light Renewal Kelowna Community Theatre Renewal Yards Chemical Storage

B7 - Renewal, Rehabilitation & Infra.

Page 473

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Amount

Reserve

Borrow

Grant

Other

9,140,800

(9,140,800)

2,720,000

(2,720,000)

0 PROGRAM

P1 - DCC Parkland Acquisition

2,720,000

(2,720,000)

Art Walk - Extension from Doyle to Queensway

34,900

(34,900)

0 EXT EVENT

P10 - Urban Streetscape, Centres Dev,

34,900

(34,900)

401,700 463,900

(401,700) (463,900)

0 0

0 EXT EVENT 0 DESIGNOPT

865,600

(865,600)

5,605,700 3,634,100

(5,605,700) (2,709,900)

0 0 0 (924,200)

0 0

0 MULTIYEAR 0 EXT EVENT

9,239,800

(8,315,600)

0 (924,200)

511,400

(511,400)

0 EXT EVENT

4,414,800

(4,414,800)

0 DESIGNOPT

56,400

(56,400)

0 EXT EVENT

4,982,600

(4,982,600)

197,100

(197,100)

0 EXT EVENT

1,019,100

(1,019,100)

0 DESIGNOPT

468,400

(468,400)

0 EXT EVENT

1,684,600

(1,684,600)

56,900

(56,900)

0 SCHED

141,200

(141,200)

0 EXT EVENT

84,400 1,692,500 400,500

(84,400) (1,692,500) (400,500)

0 0 0

0 PROGRAM 0 MULTIYEAR 0 MULTIYEAR

2,375,500

(2,375,500)

240,900 130,000

(90,900) (130,000)

0 (150,000) 0 0

0 0

0 EXT EVENT 0 MULTIYEAR

133,700 101,400

(133,700) (101,400)

0 0

0 PROGRAM 0 EXT EVENT

606,000

(456,000)

0 (150,000)

187,400

(187,400)

0 PROGRAM

187,400

(187,400)

Cost Center Totals

Utility Reason

Parks Capital ~

Growth Parkland Acquisition

491 New

491 Growth Ballou Park (DCC) 492 Growth Tower Ranch Park #1 (DCC)

P3 - Neighbourhood Park Development ~

Growth DeHart Park DCC (Eligible)

492 Renew Pandosy Waterfront Park, DCC City-

wide Park Development Phase 1 P4 - Community Park Development 493 Renew Glenmore Recreation Park Future

Phases 493 Growth Mission Recreation - Softball Diamonds (DCC) 494 Renew Mission Recreational Park Artificial Turf Replacement P5 - Recreation Park Development 494 Renew City Park - Improvements,

Waterfront Promenade Phase 3 495 Renew City Park, Phase 2 - Design & Construction 495 New Kerry Park - Future Phases (DCC) P6 - City-wide Park Development 496 Growth Canyon Falls Park, Parking Lot -

Construction 496 Growth Gopher Creek Linear Park - DCC Park Development ~ Renew Knox Mountain Park Improvements ~ Renew Mill Creek Linear Park ~ Renew Shoreline Restoration - Flood Damage P7 - Linear/Natural Area Park Development 497 Renew Access For All Improvements ~

Renew Edith Gay Park Field #2 - Outfield Netting ~ Renew Irrigation Infrastructure Renewal 497 Renew Sport Courts/Water Parks/Skate Parks Renewal & Replacements P8 - Renewal, Rehabilitation & Infra ~

Renew Kelowna Memorial Cemetery Improvements P9 - Capital Opportunities Partnership

Page 474

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Amount Cost Center Totals

Reserve

22,696,400 (21,622,200)

Borrow

Grant

Other

Utility Reason

0 (1,074,200)

Transportation Capital ~

Growth Benvoulin Turn Lanes DCC (Casorso - KLO) ~ Growth Casorso 1 Roundabouts (Swamp Benvoulin) 498 Growth Clement 1 DCC (St.Paul - Graham) ~ Growth Commonwealth Rd (Hwy 97 - Jim Bailey) ~ Growth Frost 1 DCC (Killdeer - Chute Lake) ~ Growth Gordon 1 DCC (Frost - South Perimeter), Road ~ Growth Hollywood 7 (Sexsmith - Appaloosa) Improvements ~ Growth McCulloch Area DCC (KLO/Hall/Spiers) 498 Growth Richter 1 DCC (Sutherland - KLO) 499 Growth South Perimeter 1 DCC (Gordon Dr Stewart 1), Road ~ Growth Stewart 3 DCC (Crawford-Swamp), Road

50,000

(50,000)

0 MULTIYEAR

50,000

(50,000)

0 MULTIYEAR

293,400 537,700

(293,400) (537,700)

0 0

0 SCHED 0 MULTIYEAR

(73,500) 0 (555,000) (1,287,900)

0 0

0 MULTIYEAR 0 MULTIYEAR

73,500 1,842,900 1,772,900

(1,772,900)

0 MULTIYEAR

454,400

(454,400)

0 MULTIYEAR

(200,000) 0 (1,601,500) (5,829,900)

0 0

0 SCHED 0 EXT EVENT

0 MULTIYEAR

0 0 0 (29,800) 0 (600,000)

0 0 0

0 SCHED 0 SCHED 0 MULTIYEAR

200,000 7,431,400 721,100

(721,100)

T1 - DCC Roads

13,427,300

(6,309,500) (7,117,800)

500 Growth Casorso 4 DCC (Raymer - KLO), ATC

1,505,400 93,200 1,200,000

(1,505,400) (63,400) (600,000)

131,600

(131,600)

0 EXT EVENT

100,400 94,900

(100,400) (94,900)

0 0

0 SCHED 0 MULTIYEAR

450,000 451,300

(450,000) (102,100)

0 0 0 (349,200)

0 0

0 DESIGNOPT 0 EXT EVENT

3,010,000

(3,010,000)

0 MULTIYEAR

263,600

(263,600)

0 SCHED

34,600 389,400

(34,600) (389,400)

0 0

0 MULTIYEAR 0 MULTIYEAR

978,500

(978,500)

0 SCHED

8,702,900

(7,723,900)

0 (979,000)

99,600

(49,600)

(50,000)

99,800 268,500

0 (268,500)

0 0

(99,800) 0

0 0

1,166,700

(305,400)

(861,300)

0 SCHED

1,634,600

(623,500)

(99,800)

(911,300)

174,700 169,800

(174,700) (169,800)

0 0

499 Growth Casorso 3 DCC ~ 500 501 ~ 501 502 ~ 502 ~ ~ 503

Growth Clement 2 DCC (Spall - Hwy33) Design Growth Dilworth DCC Active Transportation Corridor Growth Ethel 6 AT (Clement - Cawston) Growth Glenmore 3 DCC (Clement - High) AT Growth Glenmore 4 AT (Kane - Dallas) Growth Houghton 1 DCC (Nickel - Rails with Trails), ATC Growth Houghton 2 DCC (Hollywood Rd Rutland Rd), ATC Growth Rails with Trails DCC (Dilworth Commerce Ave), ATC Growth Rails with Trails to Greenway ATC Growth Sutherland 1 DCC (Gordon - Burtch), ATC Growth Sutherland 2 DCC (Lake - Gordon), ATC T2 - DCC Roads - Active Transportation

503 Growth Burtch & Harvey Intersection

Improvements 504 Renew City of Kelowna Highway Signage 504 Growth Hwy.97/Leckie Road Intersection Improvements 505 Renew Roadway Urbanization T3 - Non-DCC Roads ~ ~

Renew Bridge Rehabilitation Renew KLO Rd Mission Creek Bridge Replacement

0 SCHED 0 SCHED 0 EXT EVENT

0 PROGRAM 0 MULTIYEAR

Page 475

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Amount

Reserve

Borrow

Grant

Other

198,700 31,900 774,800 129,300 391,700

(198,700) (31,900) (774,800) (80,400) (391,700)

0 0 0 0 0

0 0 0 (48,900) 0

0 0 0 0 0

0 PROGRAM 0 PROGRAM 0 PROGRAM 0 PROGRAM 0 DESIGNOPT

T4 - Transportation System Renewal

1,870,900

(1,822,000)

(48,900)

506 Growth Abbott DCC (Rose Ave - Cedar Ave)

427,300

(427,300)

0 EXT EVENT

Protected Bike Lane Project ~ New Active Transportation Corridor 506 Growth Hwy 97 Right Turn Lane to Pandosy 507 New Okanagan Rail Trail

384,000 99,000 223,700

(384,000) (99,000) (80,200)

0 0 0 0 0 (143,500)

0 0 0

0 PROGRAM 0 DESIGNOPT 0 EXT EVENT

T5 - Bicycle Network

1,134,000

(990,500)

0 (143,500)

4,390,700 122,500

(4,390,700) (122,500)

0 0

0 DESIGNOPT 0 PROGRAM

T6 - Sidewalk Network

4,513,200

(4,513,200)

Pedestrian and Road Safety Projects Safe Routes to School Program Traffic Calming Traffic Signal - Spall at Springfield

466,500 41,900 90,200 121,500

(466,500) (41,900) (90,200) (121,500)

0 0 0 0

0 PROGRAM 0 PROGRAM 0 PROGRAM 0 SCHED

T7 - Safety and Operational Improvements

720,100

(720,100)

Growth Traffic Signals and Roundabouts

758,000

(758,000)

0 PROGRAM

T8 - Traffic Control Infrastructure

758,000

(758,000)

508 Growth Rutland Park & Ride, Mobility Hub,

280,000

(280,000)

0 WAITGRAN

235,200 20,200

(235,200) (20,200)

0 0

0 PROGRAM 0 PROGRAM

535,400

(535,400)

33,296,400 (23,996,100) (7,117,800) (1,271,200)

(911,300)

Renew Roads Resurfacing ~ Renew Sidewalk and Bikeway Renewal ~ Renew Street Light Renewal ~ Renew Transit - Equipment Renewal 505 Growth Urban Centre Improvements

507 Growth Hwy 97 Pedestrian Overpass ~

New

New New ~ New 508 New ~

~ ~

New New

Sidewalk Network Expansion

Operations facility Transit - Land Acquisition Transit - New Equipment T9 - Transit Facilities Cost Center Totals

Utility Reason

Solid Waste Capital 509 Growth General Site Works and

230,900

(230,900)

0 SCHED

Investigations 509 Growth Landfill Site Preparation

2,286,700

(2,286,700)

0 SCHED

2,517,600

(2,517,600)

59,800

(59,800)

0 SCHED

59,800

(59,800)

230,000

(230,000)

0 DESIGNOPT

230,000

(230,000)

Commonage - Pond Pump Kiosk

109,100 96,800

0 0

(47,400) (32,300)

(61,700) SCHED (64,500) SCHED

SW6 - Recycling & Waste Management

205,900

(79,700)

(126,200)

Growth Stockpiles and Reprocessing Areas Relocation

1,373,000

(1,373,000)

SW2 - Site Improvement 510 New

Leachate and Landfill Gas Header SW3 - Gas Management

510 Renew Surface Water Bypass

SW5 - Drainage & Groundwater Management 511 Growth Commonage - Pavement Repairs 511 New

0 MULTIYEAR

Page 476

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Amount

Reserve

Borrow

Grant

Other

SW7 - Landfill Area Development

1,373,000

(1,373,000)

Renew Landfill Infrastructure Renewal

918,900

(918,900)

0 EXT EVENT

SW9 - Solid Waste Renewal

918,900

(918,900)

Cost Center Totals

5,305,200

(5,099,300)

(79,700)

(126,200)

3,820,200

(3,453,800)

(366,400) DESIGNOPT

6,206,800 290,600

(3,787,600) (171,000)

0 (2,419,200) 0 (119,600)

0 0

0 MULTIYEAR 0 DESIGNOPT

10,317,600

(7,412,400)

0 (2,538,800)

168,400

(168,400)

0 PROGRAM

D2 - Storm Drainage Quality Program

168,400

(168,400)

513 Renew Crossing of Gopher Creek at Garner

50,000

(50,000)

0 SCHED

D3 - Storm Water Renewal

50,000

(50,000)

Cost Center Totals

10,536,000

(7,630,800)

0 (2,538,800)

(366,400)

30,000

(30,000)

0 EXT EVENT

30,000

(30,000)

52,300 41,300

(34,400) (41,300)

0 0

(17,900) EXT EVENT 0 SCHED

50,000

(50,000)

0 MULTIYEAR

512

Description

Utility Reason

Storm Drainage Capital 512 Renew

Knox Mountain Geotechnical Engineering ~ New Mill Creek Flood Protection 513 Renew Pedestrian Bridge Renewal – MillBridge Park D1 - Hydraulic Upgrading Program ~

New

Containment Devices

(366,400)

Information Services Capital 514 Renew Back Office Equipment (Server

Upgrades) I2 - Server & Data Storage 514 Renew Asset Management System 515 Renew Class Registration Software

Replacement Renew Major Systems Projects - Expense Ledger Module 515 Renew Major Systems Projects - Land Management System 516 Renew Major Systems Projects - Website Compliance ~ Renew Major Systems Projects – Planning and Permitting ~ New Records and Information Management System

78,600

(78,600)

0 EXT EVENT

160,000

(160,000)

0 EXT EVENT

750,300

(750,300)

0 MULTIYEAR

513,400

(513,400)

0 MULTIYEAR

I3 - Major System Projects

1,645,900

(1,628,000)

46,300

(46,300)

0 EXT EVENT

I4 - Communications Systems

46,300

(46,300)

Cost Center Totals

1,722,200

(1,704,300)

(17,900)

4,147,900

(3,893,300)

(254,600) SCHED

516 Renew Communications Networks

(17,900)

(Network Upgrades)

Vehicle & Mobile Equipment 517 Renew Equipment and Vehicle

Replacement

Page 477

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Amount

Reserve

Borrow

Grant

Other

V2 - Vehicle / Equipment Renewal

4,147,900

(3,893,300)

(254,600)

Cost Center Totals

4,147,900

(3,893,300)

(254,600)

Fire Capital 517 Renew Fire Equipment ~ Renew Fire Vehicle and Equipment Renewal

135,500 3,030,600

(135,500) (3,030,600)

0 0

0 EXT EVENT 0 MULTIYEAR

F1 - Vehicle / Equipment Renewal

3,166,100

(3,166,100)

450,000

(450,000)

0 MULTIYEAR

F3 - Communications Systems

450,000

(450,000)

Cost Center Totals

3,616,100

(3,616,100)

91,754,400 (77,996,300) (7,117,800) (4,884,200)

(991,000)

(765,100)

Renew Fire Communications Equipment Renewal

Sub-Total

Utility Reason

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

Page 478

2023 FINANCIAL PLAN

CITY OF KELOWNA

PROJECTS UNDER $10,000 Type

Description

Amount

Reserve

Property Acquisition - Unit 301-1475 Ellis Street

9,800

(9,800)

L1 - General Land

9,800

Cost Center Totals

Borrow

Grant

Other

Utility Reason

0 EXT EVENT

(9,800)

9,800

(9,800)

5,900

(5,900)

0 EXT EVENT

B3 - Civic/Protective Service Buildings

5,900

(5,900)

Cost Center Totals

5,900

(5,900)

5,000

(5,000)

0 EXT EVENT

B3 - Civic/Protective Service Buildings

5,000

(5,000)

Cost Center Totals

5,000

(5,000)

Crosswalk Safety - Signals and Flashers

9,100

(9,100)

0 PROGRAM

T7 - Safety and Operational Improvements

9,100

(9,100)

Cost Center Totals

9,100

(9,100)

91,784,200 (78,026,100) (7,117,800) (4,884,200)

(991,000)

(765,100)

Real Estate and Parking Capital ~

Renew

Building Capital ~

Renew

Police Services Building - Public Art

Parks Capital ~

New

Boyce-Gyro Park Public Art

Transportation Capital ~

New

Grand Total

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

Page 479

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Carryover Budget CAPITAL BUDGET Summary - Utility Funds Page Type

Description

Amount

Reserve

Borrow

Grant

Other

Utility Reason

50,000

(50,000)

0 EXT EVENT

50,000

(50,000)

3,411,900 3,047,200 2,409,300

(3,411,900) (89,000) (2,409,300)

0 0 0 (2,676,200) 0 0

0 (282,000) 0

0 MULTIYEAR 0 MULTIYEAR 0 EXT EVENT

100,700

(100,700)

0 EXT EVENT

A2 - Groundside

8,969,100

(6,010,900)

0 (2,676,200)

(282,000)

519 Renew Airport Air Terminal Building Capital

587,000

(587,000)

0 SCHED

440,000

(440,000)

0 EXT EVENT

537,300 520,000

(209,200) (520,000)

0 (328,100) 0 0

0 0

0 MULTIYEAR 0 EXT EVENT

A3 - Terminal

2,084,300

(1,756,200)

0 (328,100)

521 Renew Airport - Arrivals Carousels Capacity

15,000

(15,000)

0 EXT EVENT

338,400

(338,400)

0 EXT EVENT

88,583,200 (79,781,500)

0 (8,801,700)

0 MULTIYEAR

88,936,600 (80,134,900)

0 (8,801,700)

0 (11,806,000) (282,000)

Airport Capital 518 Growth Airport Airside Land Development

A1 - Airside ~

Growth Airport - Hotel Development New Airport Child Care Facility 518 Renew Airport Convair Way Parking Lot Upgrades 519 New Airport Groundside Equipment Replacement ~

Replacement & Improvement 520 Renew Airport Combined Operations Building Infrastructure Renewal ~ Renew Airport Roof Replacement Program 520 Renew Airport Technology Replacements

Upgrades and Belts 521 Renew Airport Passenger Boarding Bridge Upgrades ~ Growth Soaring Beyond 2.5 Million Passengers AIF Program A4 - AIF

Cost Center Totals 100,040,000 (87,952,000)

Water Capital 522 Growth Poplar Point to Dilworth Mountain

793,100

(793,100)

0 SCHED

793,100

(793,100)

401,500

(401,500)

0 PROGRAM

W5 - DCC Offsite & Oversize

401,500

(401,500)

522 Renew Poplar Point UV System Assessment

97,800

(97,800)

0 EXT EVENT

Transmission Upgrade Design W1 - DCC Pipes (Mains) ~

Growth Offsite & Oversize - Water

and Modifications 523 Renew Skyline PS - Station Upgrade Safety Issues ~ Renew Water Network and Facility Renewal

319,500

(319,500)

0 EXT EVENT

1,271,800

(1,271,800)

0 PROGRAM

W6 - Network and Facility Renewal

1,689,100

(1,689,100)

523 Renew Chemical Storage Tank

20,100

(20,100)

0 EXT EVENT

Replacement - Kettle Valley UV Facility 524 Growth Kettle Valley Reservoir Upgrade 524 New Snow Runoff Hydrology

95,300 50,000

(95,300) (50,000)

0 0

0 DESIGNOPT 0 EXT EVENT

Page 480

2023 FINANCIAL PLAN

Page Type

CITY OF KELOWNA

Description

Amount

Reserve

Borrow

Grant

Other

Utility Reason

290,400

(290,400)

0 SCHED

455,800

(455,800)

Hydrants 526 Renew Irrigation System Upgrades 527 Renew Pressure Reducing Valve Upgrades

519,700 14,100 132,800 188,500

(519,700) (14,100) (132,800) (188,500)

0 0 0 0

0 EXT EVENT 0 SCHED 0 EXT EVENT 0 DESIGNOPT

W8 - Irrigation Network Improvements

855,100

(855,100)

Cost Center Totals

4,194,600

(4,194,600)

1,432,000

(1,432,000)

0 DESIGNOPT

1,432,000

(1,432,000)

434,200

(434,200)

0 DESIGNOPT

WW3 - DCC Wastewater Treatment Facilities

434,200

(434,200)

Growth Offsite & Oversize - Wastewater

418,700

(418,700)

0 PROGRAM

WW4 - DCC Oversize

418,700

(418,700)

BCTTP Transformer Replacement Renew Burtch Trunk 529 Renew Commonage - Quonset Mix Building Envelope Renewal ~ Renew Renewal - Wastewater Mains and Facilities 529 Renew Renewal - Wastewater Mains and Facilities - SCADA 530 Renew Sewer Lift Station SCADA Integration 530 Renew Wastewater Lift Station Renewal

400,000 1,230,100 148,200

(100,000) (1,230,100) (96,300)

0 0 0

(300,000) 0 (51,900)

0 DESIGNOPT 0 MULTIYEAR 0 SCHED

5,397,700

(5,397,700)

0 MULTIYEAR

162,200

(162,200)

0 EXT EVENT

211,300

(211,300)

0 SCHED

13,700

(13,700)

0 EXT EVENT

WW5 - Network and Facility Renewal

7,563,200

(7,211,300)

(351,900)

KLO Rd Mission Creek Sewer Connection ~ New Rialto (SCA 16) Sewer Connection Project 531 Renew Rose Ave Lift Station Odour Control System ~ Growth Rutland Centre (SCA 22) Sewer Connection Project

874,200

(233,200)

0 (641,000)

0 MULTIYEAR

779,700

(335,500)

0 (444,200)

0 MULTIYEAR

50,000

(50,000)

0 SCHED

10,301,600

(2,747,500)

0 (7,554,100)

0 MULTIYEAR

12,005,500

(3,366,200)

0 (8,639,300)

21,853,600 (12,862,400)

0 (8,639,300)

(351,900)

Sub-Total 126,088,200 (105,009,000)

0 (20,445,300)

(633,900)

525 Growth South End Water Upgrades

W7 - Network and Facility Improvements 525 Renew Dam Repairs - Irrigation Intake 526 New

Wastewater Capital 527 Renew Water Street Lift Station

WW2 - DCC Lift Stations 528 New

Biosolids Management Phase I & Phase II

528 New ~

New

WW6 - Network and Facility Improvements Cost Center Totals

~ denotes request details not included in carryover volume * italics - denotes that this is a shared (part of another department) operating request

Page 481

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Land Remediation, 1746 Water Street

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included L1 CARRYOVER

Justification: Carryover is requested due to project delays, including additional environmental investigations and remediation planning.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 82,500

600,000 517,500 82,500

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (82,500)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Property Acquisition – 1951 Cross Road

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included L1 CARRYOVER

Justification: Carryover is requested for costs associated with demolition which was included in the acquisition costs, project was not completed in 2022 due to staff vacancy.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 58,500

58,500 0 58,500

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (58,500)

Borrow

Fed/Prov

Dev/Com

Utility

Page 482

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Downtown Parkades-Major Maintenance

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included L3 CARRYOVER

Justification: Carryover is requested to allow for completion of several projects currently underway that were not completed in 2022 due to supply chain delays and contractor availability. Ongoing investment is necessary to ensure the maximum life expectancy for these facilities is achieved. At the Chapman Parkade, this includes modernization of the elevator, replacement of HVAC systems in the commercial rental units and stairwell exhaust fans. At the Library Parkade, concrete restoration and masonry repairs are included. Other projects are the addition of vehicle gates on the roof levels of the Library and Memorial Parkades and the design/installation of snow chutes on two facilities. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 717,200

955,000 237,800 717,200

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (717,200)

Borrow

Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Title:

Electric Vehicle Charging Stations

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Awaiting Grant 10 Yr Cap Plan Ref: Not included L3 CARRYOVER

Justification: Carryover of this budget is requested, firstly to secure the City share of funding to support a 2022 grant application for the installation of Level 2 charging stations and required infrastructure. If the grant application is unsuccessful, these funds may be used to complete the project at a smaller scale. Secondly to fund the purchase of four Level 2 charging stations already on order that have not yet been received, due to lengthy lead times from the supplier. A decision on the grant application is anticipated by Q3 of 2023 and, depending on that timeline, this project may extend into early 2024. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 157,500

330,300 172,800 157,500

Expected Completion: Mar 2024

Environmental protection - Greenhouse gas emissions are decreasing Reserve (157,500)

Borrow

Fed/Prov

Dev/Com

Utility

Page 483

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Real Estate and Parking Capital

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included L3

Title:

Parking Equipment and Facilities

CARRYOVER

Justification: Carryover is requested to continue renewal of parking infrastructure by replacing equipment that has reached end of life. Renewal of enforcement equipment is included along with the remainder of required upgrades to credit card processing equipment on pay stations to comply with the "Chip and Pin" Europay, MasterCard and Visa (EMV) debit/credit card standard in advance of the anticipated deadline in 2023 to ensure no disruption in our ability to accept credit card payments. This budget was not fully utilized in 2022 due to delays in obtaining equipment from some vendors. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 277,700

781,300 503,600 277,700

Expected Completion: Dec 2023

Clear direction - Services, processes & business activities are transformed Reserve (277,700)

Borrow

Department: Cost Center:

Capital Projects Building Capital

Title:

H2O Boiler Replacement

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B1 CARRYOVER

Justification: Carryover is requested due to unforeseen equipment conditions requiring further investigation. Further design and equipment installation is planned for 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 294,900

321,200 26,300 294,900

Expected Completion: Dec 2023

Other - Extraordinary or Unforeseen Obligation Reserve (294,900)

Borrow

Fed/Prov

Dev/Com

Utility

Page 484

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

Mission Recreation Park, Capital News Centre - Expansion

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included B1 CARRYOVER

Justification: Carryover is requested to honour existing contractual commitments and forthcoming consulting for the functional program for the expansion of the Capital News Centre to provide two new ice sheets and additional sports facilities. Once complete, partnership options with the existing operators will be considered in 2023, followed by schematic design work in Q4 of 2023 into 2024. The start of this work was deferred by staff so as not to conflict with the similar functional programming work for Parkinson Recreation Centre.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 164,200

230,000 65,800 164,200

Expected Completion: Dec 2024

Vibrant neighbourhoods - Accessible and multi-purpose amenities Reserve (164,200)

Borrow

Department: Cost Center:

Capital Projects Building Capital

Title:

Rotary Beach Park Washroom

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included B1 CARRYOVER

Justification: Schedule for the design of the new washroom and changeroom building has been extended while City staff review emerging designs in other communities that improve inclusiveness and reduce improper use. Design to continue through winter and scheduled to be complete fall 2023. Budget is for design of building only.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 42,200

80,000 37,800 42,200

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (42,200)

Borrow

Fed/Prov

Dev/Com

Utility

Page 485

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

Rotary Center Roof Repair

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B1 CARRYOVER

Justification: Unforeseen site conditions delayed planned work. Further investigation to occur in spring of 2023 with expected completion in Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 60,700

70,000 9,300 60,700

Expected Completion: Dec 2023

Economic resiliency - Infrastructure deficit is reduced Reserve (60,700)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Building Capital

Title:

Library Chiller and Boiler Replacement

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included B2 CARRYOVER

Justification: The Library chiller and boiler upgrades were substantially complete in Q4 of 2021. Ongoing optimization through a consulting assignment of the control systems is underway to integrate the new heating and cooling equipment with the facility. City staff and consultants are required to see the systems in place, function and cycle a number of times to complete the work based on seasonal cycles.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 50,800

56,000 5,200 50,800

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (50,800)

Borrow

Fed/Prov

Dev/Com

Utility

Page 486

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

City Hall - Envelope Renewal, Study and Design

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B3 CARRYOVER

Justification: City Hall is one of the highest energy users within the municipal buildings portfolio. Carryover is requested for this multi-year envelope and energy study for City Hall, which has the potential to yield substantial energy savings in the future, and hence both cost and greenhouse gas emission reductions. The work is in preparation for the Envelope Renewal project identified in the ten-year Capital plan for 2025. Recent information resulting from the current City Hall renovations, and coordination with the third party 350 Doyle development currently in design, has resulted in the need for further works to this study. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 120,800

159,400 38,600 120,800

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (120,800)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Building Capital

Title:

City Hall Improvements Phase IV and V

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B3 CARRYOVER

Justification: Carryover is requested for this multi-year project due to scope changes resulting from unforeseen conditions including relocation of building systems and abatement requirements.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 1,715,900

4,586,400 2,870,500 1,715,900

Expected Completion: Dec 2024

Other - Supports Base Business Reserve (1,715,900)

Borrow

Fed/Prov

Dev/Com

Utility

Page 487

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

Building Systems Automation & Performance Optimization

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Carryover is requested due to supplier delays and resource challenges. Equipment is on order and installation is planned.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 40,100

50,300 10,200 40,100

Expected Completion: Dec 2023

Environmental protection - Predictive modelling & forecasting Reserve (40,100)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Building Capital

Title:

General Building Infrastructure Renewal

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Carryover is requested as equipment is backordered due to supply chain issues. Equipment installation will begin once received.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 2,816,500

4,644,950 1,828,450 2,816,500

Expected Completion: Dec 2023

Economic resiliency - Infrastructure deficit is reduced Reserve (2,816,500)

Borrow

Fed/Prov

Dev/Com

Utility

Page 488

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

H2O Centre Heat Recovery Chiller Replacement

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Carryover is requested as unforeseen equipment conditions require further investigation. Further design and equipment installation is planned.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 22,000

560,500 538,500 22,000

Expected Completion: Dec 2023

Vibrant neighbourhoods - Accessible and multi-purpose amenities Reserve (22,000)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Building Capital

Title:

Kelowna Community Theatre - Stage Light Renewal

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Project is delayed due to supply issues within the theatre lighting sector, some fixtures are ordered but remain undelivered at this time. Carryover is requested to receive and install the remaining fixtures in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 47,400

384,200 336,800 47,400

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (47,400)

Borrow

Fed/Prov

Dev/Com

Utility

Page 489

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

Kelowna Community Theatre Renewal

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Carryover is requested as equipment is backordered due to supply chain issues with delivery and install expected in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 53,900

55,000 1,100 53,900

Expected Completion: Dec 2023

Vibrant neighbourhoods - Accessible and multi-purpose amenities Reserve (53,900)

Borrow

Department: Cost Center:

Capital Projects Building Capital

Title:

Yards Chemical Storage

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included B7 CARRYOVER

Justification: Carryover is requested as staff resources were not available to complete this project in 2022 due to higher priority projects. The project remains in the planning phase.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 297,600

298,900 1,300 297,600

Expected Completion: Dec 2023

Vibrant neighbourhoods - Key sites are proactively planned Reserve (297,600)

Borrow

Fed/Prov

Dev/Com

Utility

Page 490

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Art Walk - Extension from Doyle to Queensway

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P10 CARRYOVER

Justification: Carryover is requested to honour existing contractual commitments for the schematic design of the Art Walk extension from Doyle Avenue to Queensway Avenue, immediately adjacent to Kasugai Gardens and tying into Bennett Plaza. Detail design work for the Art Walk will begin in Q1 of 2023 proceeding in parallel with the development of 350 Doyle Ave. Completion expected in Q4 of 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 34,900

68,600 33,700 34,900

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (34,900)

Department: Cost Center:

Capital Projects Parks Capital

Title:

Ballou Park (DCC)

Borrow

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P3 CARRYOVER

Justification: Carryover is requested as a no bid scenario delayed the start of construction to Q3 of 2022. Additional delays caused by long delivery lead times and abnormal fall weather impacted the substantial completion date. Remainder of the work includes site furnishings, fencing, pathway surfacing, landscaping and irrigation and will be complete in Q2 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 401,700

1,544,500 1,142,800 401,700

Expected Completion: Jun 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (401,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 491

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Tower Ranch Park #1 (DCC)

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included P3 CARRYOVER

Justification: Carryover requested to facilitate construction in Q2, 2023. Original budget was insufficient to deliver park, therefore design revisions were made in an effort to reduce costs. Work being awarded Q4, 2022 to procure long lead time items. Work expected to be completed Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 463,900

524,000 60,100 463,900

Expected Completion: Dec 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (463,900)

Borrow

Fed/Prov

Dev/Com

Department: Cost Center:

Capital Projects Parks Capital

Title:

Pandosy Waterfront Park, DCC City-wide Park Development Phase 1

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P4 CARRYOVER

Justification: Supply chain issues delayed completion of park in 2022. Carryover is requested for the install of the supply chain items, including but not limited to, lumber supply for boardwalk, electrical kiosk breakers, park lighting, and subsequent park elements. Work expected to be completed Q2 2023

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 3,634,100

6,848,200 3,214,100 3,634,100

Expected Completion: Dec 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (2,709,900)

Borrow

Fed/Prov (924,200)

Dev/Com

Utility

Page 492

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Glenmore Recreation Park Future Phases

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P5 CARRYOVER

Justification: Carryover is requested for this multiyear project. The consultant has been secured under contract to undertake the design. Tender for construction will be complete in the fall of 2023, with construction in 2024. Additional budget to support construction was approved as part of the Preliminary Budget for 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 511,400

550,000 38,600 511,400

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (511,400)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Parks Capital

Title:

Mission Recreation - Softball Diamonds (DCC)

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included P5 CARRYOVER

Justification: The detail design was delayed for most of 2021, pending confirmation on the final program and concept for the site, the adjacent stream and existing facilities (fieldhouse, washrooms, playground, stream). Revised Park Master Plan developed in 2022 and field size modified to retain Kinsmen fieldhouse. Tender package to be circulated Q1, 2023 with fields to be utilized in Q3, 2024 to allow for sod establishment. Work expected to be completed Q4 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 4,414,800

4,490,900 76,100 4,414,800

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (4,414,800)

Borrow

Fed/Prov

Dev/Com

Utility

Page 493

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Mission Recreational Park Artificial Turf Replacement

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P5 CARRYOVER

Justification: Carryover is requested for the necessary placement of additional infill materials. The installation is weather dependent and is anticipated to begin in Q2 of 2023 with completion in Q3 of 2023. Weather and additional infill materials were causes of the project not being completed in 2022.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 56,400

79,800 23,400 56,400

Expected Completion: Sep 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (56,400)

Borrow

Fed/Prov

Dev/Com

Department: Cost Center:

Capital Projects Parks Capital

Title:

City Park - Improvements, Waterfront Promenade Phase 3

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P6 CARRYOVER

Justification: Carryover is requested to facilitate concept, permitting and detailed design of City Park Promenade from Colds Sands washroom to Bernard for future construction. This section of walkway falls within the riparian zone, and in order for the design work to proceed with the necessary approvals, a comprehensive Shoreline Restoration Balance report for all City owned waterfront properties was identified as necessary. The report is in final draft and the design work will resume shortly.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 197,100

199,800 2,700 197,100

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (197,100)

Borrow

Fed/Prov

Dev/Com

Utility

Page 494

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

City Park, Phase 2 - Design & Construction

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included P6 CARRYOVER

Justification: Grant was unsuccessful and funding is required to complete mandatory shoreline permitting and respective design in 2023 as requested by the Province. Work is anticipated to be completed in conjunction with the City Park phase three Promenade joining future Kerry Park at Bernard and recently completed City Park phase two work.

2022 Budget: 2022 Expenditures: 2022 Budget Not Required: Carryover Requested: Strategic Direction: Amount 1,019,100

3,997,000 179,500 2,798,400 1,019,100

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (1,019,100)

Borrow

Department: Cost Center:

Capital Projects Parks Capital

Title:

Kerry Park - Future Phases (DCC)

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P6 CARRYOVER

Justification: Carryover is requested due to permit delays with the adjacent property development. A consultant has been selected and has completed preliminary design in 2022.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 468,400

553,400 85,000 468,400

Expected Completion: Dec 2024

Vibrant neighbourhoods - Animated parks & public spaces Reserve (468,400)

Borrow

Fed/Prov

Dev/Com

Utility

Page 495

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Canyon Falls Park, Parking Lot - Construction

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included P7 CARRYOVER

Justification: Carryover is requested to finalize construction as City crews were not able to complete due to higher priority projects. A contractor was engaged to complete the work but was unable to access the site until South Perimeter Road was completed.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 56,900

119,000 62,100 56,900

Expected Completion: Jun 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (56,900)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Parks Capital

Title:

Gopher Creek Linear Park - DCC Park Development

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P7 CARRYOVER

Justification: Gopher Creek Linear Park is substantially complete. Carryover is requested for minor clean up items which were scheduled to be completed in Q4 2022 but were delayed due to cold weather coming earlier than anticipated. These final items will be resolved in early 2023 once weather permits. Completion / close out anticipated in Q1 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 141,200

490,800 349,600 141,200

Expected Completion: Jan 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (141,200)

Borrow

Fed/Prov

Dev/Com

Utility

Page 496

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

Access For All Improvements

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P8 CARRYOVER

Justification: Carryover is requested for construction of the remainder of the pathway that has been put on hold pending archaeological approval. Remaining pathway construction is anticipated to be complete in Q2 of 2023. Installation of selected playground equipment is delayed due to delivery timeline of six months; installation is anticipated for Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 240,900

359,500 118,600 240,900

Expected Completion: Sep 2023

Social & inclusive - Inclusivity and diversity are increasing Reserve (90,900)

Borrow

Fed/Prov (150,000)

Dev/Com

Department: Cost Center:

Capital Projects Parks Capital

Title:

Sport Courts/Water Parks/Skate Parks Renewal & Replacements

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included P8 CARRYOVER

Justification: Carryover is requested to complete the remainder of the work at Jack Robertson Park. Construction was delayed due to weather preventing the second lift of asphalt and acrylic surfacing. Related improvements including fencing and retaining wall cannot be finished until surfacing is complete in Q2 of 2023. Expected completion is Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 101,400

137,100 35,700 101,400

Expected Completion: Sep 2023

Vibrant neighbourhoods - Animated parks & public spaces Reserve (101,400)

Borrow

Fed/Prov

Dev/Com

Utility

Page 497

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Clement 1 DCC (St.Paul - Graham)

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T1 CARRYOVER

Justification: Carryover is requested to coordinate multiple development frontage works along Clement Ave to ensure the successful implementation of the Clement DCC and adjacent projects. The remaining funds will be used to complete elements of the road outside of development requirements. In 2022, construction at Ellis and Clement was delayed in order to coordinate for cost savings with an adjacent City water project and development works. In 2023 funding will complete work at Clement and Ellis and continue to be used to coordinate with the ongoing development and plan for implementation of the ultimate DCC project. Project timing is determined by adjacent development timing along Clement Ave. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 293,400

297,700 4,300 293,400

Expected Completion: Dec 2023

Transportation & mobility - Travel times are optimized Reserve (293,400)

Borrow

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Richter 1 DCC (Sutherland - KLO)

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T1 CARRYOVER

Justification: Projected growth within Downtown and Pandosy, combined with traffic from other parts of the region, are anticipated to more than double trips through this area. With limited options to increase vehicle capacity, increasing active and transit capacity between Pandosy and Downtown is a priority within the Transportation Master Plan (TMP). This project will be informed by outcomes from the Richter-Pandosy Corridor Study which did not start in 2022 due to staff resources. Carryover is requested for this multi-year project to undertake preliminary design, cost estimates and property impacts for the Richter St Multi-Modal Corridor Project. Work is expected to be completed by the end of 2024. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 200,000

200,000 0 200,000

Expected Completion: Dec 2024

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (200,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 498

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

South Perimeter 1 DCC (Gordon Dr - Stewart 1), Road

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T1 CARRYOVER

Justification: This road segment was completed in fall 2022 by developer. The payment schedule, as dedicated by the definitive South Perimeter Rd Agreement including amendments, was by way of lump sum payment in early 2023 with the remaining balance to be paid quarterly based on 80% of the Sector B Roads collected until full repayment. Carryover is requested for the remaining payments for the South Perimeter 1 segment.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 7,431,400

7,432,200 800 7,431,400

Expected Completion: Dec 2023

People - Ability to attract, select & retain talent Reserve (1,601,500)

Borrow (5,829,900)

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Casorso 3 DCC

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested for the construction of the Casorso 3 DCC ATC (KLO to Lanfranco). Casorso 3 was originally split into two phases, north (KLO to Lanfranco) in 2022, and south (Lanfranco to Barerra) in 2023. Construction of the north segment was delayed and will now occur concurrently with the south, both in 2023. Constructing both projects concurrently will limit construction impacts to one season and increase efficiency. Once completed, the Casorso ATC will link the Ethel and Barrera ATCs, creating a continuous corridor from Downtown to the south of Pandosy improving access to Pandosy Village, Okanagan College and Kelowna Secondary School. Construction is expected to be completed by the end of 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 1,505,400

1,672,300 166,900 1,505,400

Expected Completion: Dec 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (1,505,400)

Borrow

Fed/Prov

Dev/Com

Utility

Page 499

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Casorso 4 DCC (Raymer - KLO), ATC

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested to complete the construction of Casorso 4 ATC (Raymer to KLO), including trees along KLO, and for the design of a connection to the Okanagan College campus and Transit Exchange. The design of the exchange connection is underway and construction is planned for 2024 with completion in Q4 of 2024. Construction was delayed due to the cost savings associated with coordinating with the adjacent construction of new Okanagan College Student Residence.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 93,200

320,800 227,600 93,200

Expected Completion: Dec 2024

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (63,400)

Borrow

Fed/Prov (29,800)

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Dilworth DCC Active Transportation Corridor

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested to continue design work for the Dilworth Active Transportation Corridor (ATC). Staff availability, the complex and constrained nature of the corridor, and changing development constraints delayed this project thru 2022. With the new Costco and multiuse pathway on Leckie (south of Hwy 97) staff have prioritized completing the Leckie corridor north of Hwy 97. Carryover would complete a concept design for the Dilworth ATC. This concept will help coordinate future developments and capital projects with the ATC. The expected completion date is Q2 2024, coordinated with adjacent design assignments and dependent on staff resources. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 131,600

131,600 0 131,600

Expected Completion: Dec 2024

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (131,600)

Borrow

Fed/Prov

Dev/Com

Utility

Page 500

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Ethel 6 AT (Clement - Cawston)

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested to complete the design for the last phase of the Ethel Active Transportation Corridor (ATC) between Cawston Ave and the Okanagan Rail Trail. Project was delayed due to staffing availability to commence the design process which started in Q4 of 2022 and is expected to be completed by Q3 of 2023. Results from this design process will inform the 10 Year Capital Plan and future budget requests for construction.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 100,400

111,000 10,600 100,400

Expected Completion: Dec 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (100,400)

Borrow

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Glenmore 4 AT (Kane - Dallas)

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested to undertake the design and construction of a section of the Glenmore 4 Active Transportation Corridor (ATC) Multi-use path (MUP) between Dallas Rd and Kane Rd. The duration of the design has been extended to allow for the evaluation of routing options. Design work is expected to be completed by Q2 2023, and construction by the end of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 450,000

450,400 400 450,000

Expected Completion: Dec 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (450,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 501

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Houghton 1 DCC (Nickel - Rails with Trails), ATC

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: This project is substantially complete as of November 2022 however carryover is requested for some landscaping, paint marking and minor costs that will be expensed in 2023. These minor finishing items were scheduled to be completed in Q4 2022 but were delayed due to early cold, wet and snowy weather in Q4 2022. This project will be completed by Q2 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 451,300

3,265,400 2,814,100 451,300

Expected Completion: Sep 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (102,100)

Borrow

Fed/Prov (349,200)

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Rails with Trails DCC (Dilworth - Commerce Ave), ATC

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested to complete pathway lighting along the Okanagan Rail Trail (ORT) from the end of the existing lighting to the new Houghton ATC. The ORT forms an important all ages and abilities walking and cycling corridor between Downtown, UBCO and points in between. Lighting will make the pathway more comfortable for users over a longer period of the day, particularly during the winter when peak travel times are in darkness. In 2022 lighting design was completed and identified the need for coordination with the Mill Creek Diversion structure. Construction is expected to be completed in Q2 of 2023 or with the construction of the diversion structure berm. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 263,600

381,500 117,900 263,600

Expected Completion: Jun 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (263,600)

Borrow

Fed/Prov

Dev/Com

Utility

Page 502

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Sutherland 2 DCC (Lake - Gordon), ATC

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T2 CARRYOVER

Justification: Carryover is requested for the construction of the Sutherland 2 Active Transportation Corridor (ATC) between Ethel and Gordon. This project, in conjunction with Sutherland 1, fills a major east-west gap in the active transportation network between existing facilities at Sutherland/Ethel and Sutherland/Burtch. A portion of the Sutherland ATC fronts the Capri Mall, a future redevelopment site with significant utility and ATC upgrade requirements. The ATC project has been delayed, including in 2022, in an attempt to coordinate with redevelopment. It is proposed to advance construction in 2023 using interim materials where works overlap with future development requirements. The ultimate ATC would be delivered through redevelopment at a future time. Interim works are scheduled to be completed by Q4 of 2023. Expected Completion: Dec 2023 2022 Budget: 980,300 2022 Expenditures: 1,800 Carryover Requested: 978,500 Strategic Direction: Amount 978,500

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (978,500)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Burtch & Harvey Intersection Improvements

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T3 CARRYOVER

Justification: Carryover is requested to undertake the planning and design for improvements at the intersection of Burtch and Harvey. The need for improvements at this intersection was identified in the Capri-Landmark Urban Centre Plan; subsequently, Burtch has been flagged as a key north-south corridor in the Regional and Kelowna Transportation plans. This project was delayed to allow for adjacent development planning, pandemic travel pattern impacts and coordination with Parkinson Recreation Centre redevelopment traffic impacts. Completion of design is expected by Q4 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 99,600

99,900 300 99,600

Expected Completion: Dec 2023

Transportation & mobility - Investments are connecting high density areas Reserve (49,600)

Borrow

Fed/Prov

Dev/Com (50,000)

Utility

Page 503

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

City of Kelowna Highway Signage

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T3 CARRYOVER

Justification: Carryover is requested for a City entrance signage strategy in 2023 for all primary entrances to the City. Once this strategy is approved, it will be followed with a subsequent budget request for the design and construction for a replacement of the northern City signage removed during the Highway 97 6-laning project. This strategy work was delayed due to scheduling demands with higher priority projects in 2022.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 99,800

99,800 0 99,800

Expected Completion: Dec 2023

Vibrant neighbourhoods - Site design & architecture is high quality, context sensitive Reserve

Borrow

Fed/Prov (99,800)

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Hwy.97/Leckie Road Intersection Improvements

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T3 CARRYOVER

Justification: Carryover is requested to complete the close-out of left turn improvements and develop planned active transportation improvements in the north corner of the intersection. Project was delayed due to delays in coordinating with Ministry of Transportation and Infrastructure (MoTI). Record drawings will be completed in Q1 of 2023. The design of active transportation improvements is currently underway with construction planned for 2024, dependent on MoTI approvals.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 268,500

1,765,500 1,497,000 268,500

Expected Completion: Dec 2023

Transportation & mobility - Travel times are optimized Reserve (268,500)

Borrow

Fed/Prov

Dev/Com

Utility

Page 504

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T3

Title:

Roadway Urbanization

CARRYOVER

Justification: Carryover is requested due to staff resourcing constraints and high construction pricing in 2022. Additional budget and staff capacity now available. Expected completion is Q4 of 2023.

2022 Budget: 2022 Expenditures: 2022 Budget Not Required: Carryover Requested: Strategic Direction: Amount 1,166,700

1,568,000 193,400 207,900 1,166,700

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (305,400)

Borrow

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Urban Centre Improvements

Fed/Prov

Dev/Com (861,300)

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included T4 CARRYOVER

Justification: Carryover is requested to finalize the program framework and continue design for potential pilot projects. This program seeks to develop strategies to urbanize local streets in the core area and urban centres that are seeing redevelopment, but limited infrastructure upgrades, and growing use by people walking, biking, parking and driving. A review of available deferred revenue funding was completed in 2022 and design was reviewed and redone as alternate funding sources were procured through the deferred revenue review. A review of funding strategies from other BC municipalities started in 2022 and will continue into 2023. Informed by these reviews a framework to sustainably fund the program will be proposed in 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 391,700

393,600 1,900 391,700

Expected Completion: Jun 2024

Transportation & mobility - Investments are connecting high density areas Reserve (391,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 505

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Abbott DCC (Rose Ave - Cedar Ave) Protected Bike Lane Project

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T5 CARRYOVER

Justification: This project is substantially complete however some lighting and irrigation materials were not delivered before the close of the 2022 construction season. With the delivery of the remaining materials, installation is planned for early 2023. A post-opening assessment of this pilot project will be completed in 2023 Q2. If the assessment recommends adjustments, they are planned for completion by Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 427,300

2,388,400 1,961,100 427,300

Expected Completion: Sep 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (427,300)

Borrow

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Hwy 97 Right Turn Lane to Pandosy

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included T5 CARRYOVER

Justification: Carryover is requested to construct an eastbound right turn lane to improve traffic flow from Highway 97 onto Pandosy Street. This project is a Ministry of Transportation and Infrastructure (MoTI) condition for the City, tied to the approval of development in the area. The project was delayed working through MoTI approvals and final project costs. Design and cost estimates are now complete and supplemental funding has been included in the 2023 budget. Carryover would be combined with supplemental funding for construction, planned for completion by Q2 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 99,000

142,400 43,400 99,000

Expected Completion: Jun 2023

Transportation & mobility - Travel times are optimized Reserve (99,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 506

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Okanagan Rail Trail

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included T5 CARRYOVER

Justification: Carryover is requested to complete the missing rail-trail connection from Old Vernon Rd to the boundary of Lake Country near Beaver Lake Road, through Okanagan Indian Band (OKIB) lands. The design is complete and the project is ready for Request For Proposal (RFP) tender. Completion of this project has been delayed due to ongoing discussions with the Federal Government and OKIB. Project completion is expected Q3, 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 223,700

249,100 25,400 223,700

Expected Completion: Sep 2023

Transportation & mobility - People of all ages & abilities can easily get around Reserve (80,200)

Borrow

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Hwy 97 Pedestrian Overpass

Fed/Prov (143,500)

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included T6 CARRYOVER

Justification: Carryover for this multi-year project is requested to continue design and position for construction of the Hwy 97 Pedestrian/Cyclist Overpass. The project was tendered in Q1 of 2022. The bids received were significantly over budget and the competition was therefore cancelled. A comprehensive design review was subsequently initiated along with a procurement opportunities review. Overpass procurement will be timed with market conditions and coordination with construction in the area, which has been delayed to 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 4,390,700

5,275,700 885,000 4,390,700

Expected Completion: Dec 2024

Transportation & mobility - Investments are connecting high density areas Reserve (4,390,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 507

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Transportation Capital

Title:

Traffic Signal - Spall at Springfield

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included T7 CARRYOVER

Justification: Design and planning for improvements were substantially completed in 2021 however due to staff resources and construction crew availability the project was not constructed in 2022. Carryover is requested for the construction of the roadway and median changes by Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 121,500

121,700 200 121,500

Expected Completion: Sep 2023

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (121,500)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Transportation Capital

Title:

Rutland Park & Ride, Mobility Hub, Operations facility

Dev/Com

Utility

Priority: 1 Reason: Awaiting Grant 10 Yr Cap Plan Ref: Not included T9 CARRYOVER

Justification: Carryover is requested for this multi-year project to complete detailed design and construction for improvements at the Rutland and Okanagan College transit exchanges. Costs for this project will be shared between the City (20%) and BC Transit (80%) through the Investing in Canada Infrastructure Program (ICIP) should the application be successful. The ICIP application by BC Transit will occur in Q1 of 2023. If successful carryover will be used to cover the City's component of costs. Detailed design is planned for 2023 followed by construction in 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 280,000

280,000 0 280,000

Expected Completion: Sep 2024

Transportation & mobility - More trips by transit, carpooling, cycling & walking Reserve (280,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 508

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

General Site Works and Investigations

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included SW2 CARRYOVER

Justification: Due to limited staffing and onboarding of new personnel in 2022, selected portions of this work was started. This project includes a number of smaller consulting projects required to complete tasks to ensure compliance with the BC Landfill Guidelines and associate Regulations. The work is anticipated to be completed in Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 230,900

230,900 0 230,900

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (230,900)

Borrow

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Landfill Site Preparation

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included SW2 CARRYOVER

Justification: Carryover is requested to continue landfill site preparations. Earthworks for Area 3 and the west face sliverfill have commenced in 2022 and will continue through 2023. The project was delayed in order to align with other project work. There are earthworks involved in this project that are dependent on seasonal timing and availability of specific contractors. Rock generated from blasting in 2022 needs to be transferred offsite of the landfill which is taking some time to arrange suitable areas to receive the rock. Construction is expected to be completed in Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 2,286,700

3,422,900 1,136,200 2,286,700

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (2,286,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 509

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Leachate and Landfill Gas Header

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included SW3 CARRYOVER

Justification: Carryover is requested for the installation of landfill gas systems as sections of the landfill continue to grow. Due to staging of work as the site was filled, sections of the gas collection system could not be constructed within the year. This work is being started in Q4 2022 and is expected to be completed in Q1 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 59,800

172,300 112,500 59,800

Expected Completion: Mar 2023

Environmental protection - Greenhouse gas emissions are decreasing Reserve (59,800)

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Surface Water Bypass

Borrow

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included SW5 CARRYOVER

Justification: Carryover is requested to continue design and permitting of the Glenmore Landfill Surface Water Bypass system. The license applications and design are ongoing, and studies continue Robert Lake to mitigate potential flooding in this water basin. The work is well underway, and the final product will lead into new budget for 2023 to complete the final design and consideration for new construction in 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 230,000

250,000 20,000 230,000

Expected Completion: Dec 2023

Environmental protection - Resiliency & adaptability to climate change Reserve (230,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 510

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Commonage - Pavement Repairs

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included SW6 CARRYOVER

Justification: This multi-year project to repair large sections of asphalt while keeping operations going was delayed due to staff availability and operational access. Work is planned for Q2 and Q3 of 2023 with completion by Q4 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 109,100

345,000 235,900 109,100

Expected Completion: Dec 2023

Other - Supports Base Business Reserve

Borrow

Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Commonage - Pond Pump Kiosk

Fed/Prov

Dev/Com (47,400)

Utility (61,700)

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included SW6 CARRYOVER

Justification: A new kiosk enclosure has been ordered. Availability of trades and weather prevented completion of the site work in 2022. Site work and installation of new enclosure to continue in spring. Work expected to be completed Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 96,800

100,000 3,200 96,800

Expected Completion: Sep 2023

Other - Supports Base Business Reserve

Borrow

Fed/Prov

Dev/Com (32,300)

Utility (64,500)

Page 511

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Solid Waste Capital

Title:

Landfill Infrastructure Renewal

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included SW9 CARRYOVER

Justification: Carryover is requested to finish the renewal of two landfill assets. First is the completion of pump installation project that was delayed due to the requirement to re-design and installation of a new wet well to address building code and health & safety items. This work is scheduled for the Q1 and 2 in 2023. Second is the completion of the landfill compactor re-build. This was delayed due to equipment repairs and commissioning of the new compactor that delayed the start of this work. It is expected that the equipment will be transported off site in Q4 2022 to initiate the re-build and work will be completed by Q3 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 918,900

1,005,100 86,200 918,900

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (918,900)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Knox Mountain Geotechnical Engineering

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included D1 CARRYOVER

Justification: Early in 2023 project costs came in higher than originally estimated. Project staff decided to seek out an external review of the work plan as a means to reduce project costs or confirm current costs. In doing so, an alternative construction solution was presented to city staff. The solution was agreeable and the project is currently in the active construction phase. Due to seasonal weather, construction will not be complete in 2022. The contractor will complete the construction as soon as weather permits in Q2 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 3,820,200

4,881,600 1,061,400 3,820,200

Expected Completion: Jun 2023

Other - Extraordinary or Unforeseen Obligation Reserve (3,453,800)

Borrow

Fed/Prov

Dev/Com

Utility (366,400)

Page 512

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Pedestrian Bridge Renewal – MillBridge Park

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included D1 CARRYOVER

Justification: The Millbridge Park bridge #19 is a major point of access into the park but is currently closed to the public as the bridge has been removed. Design of the replacement is complete, permitting requirements for working in around the waterway as set out by provincial permitting regulations and First Nations consultation is complete. Pricing was received in Q3 of 2022 and was significantly over the construction estimate. This project will be funded in part (40%) by the Disaster Mitigation and Adaptation Fund in support of the Mill Creek Flood Protection Program. Realignment of project and options analysis is currently with Parks Planning to confirm direction and next steps for completion in Q4 of 2023. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 290,600

343,900 53,300 290,600

Expected Completion: Dec 2023

Environmental protection - Emergency response & preparation Reserve (171,000)

Borrow

Fed/Prov (119,600)

Department: Cost Center:

Capital Projects Storm Drainage Capital

Title:

Crossing of Gopher Creek at Garner Rd

Dev/Com

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included D3 CARRYOVER

Justification: Project is substantially complete and was not completed in 2022 due to staffing shortages. Carryover is requested for minor works remaining including inspections, final consulting and project closeout.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 50,000

77,900 27,900 50,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (50,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 513

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Back Office Equipment (Server Upgrades)

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included I2 CARRYOVER

Justification: A carryover is requested to complete upgrading backup servers in 2023 due to supply issues. The City's backup system will be redesigned for future use and have strategic alignment to the City's cyber security plan. Project is expected to be complete in Q4 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 30,000

150,000 120,000 30,000

Expected Completion: Dec 2023

Clear direction - Services, processes & business activities are transformed Reserve (30,000)

Borrow

Fed/Prov

Dev/Com

Utility

Department: Cost Center:

Capital Projects Information Services Capital

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included I3

Title:

Asset Management System

CARRYOVER

Justification: This is a multi-year project to implement the Corporate Asset Management System (AMS). The AMS project has been ongoing since 2017 and the final Phase 3 was substantially completed in 2022. Carryover budget is required to complete some minor items. The project will be complete in Q3 of 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 52,300

416,300 364,000 52,300

Expected Completion: Sep 2023

Clear direction - Services, processes & business activities are transformed Reserve (34,400)

Borrow

Fed/Prov

Dev/Com

Utility (17,900)

Page 514

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Class Registration Software Replacement

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: 2016 I3 CARRYOVER

Justification: This project is a software replacement solution for program registration, rentals and admissions programs used by Active Living and Culture. As a result of staff turnover the project was delayed. Staff are now in place and work has recommenced. Carryover is requested to allow for reporting improvements, performance measure enhancements, online account setup and multi-age category items to be addressed. Anticipated completion is Q2 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 41,300

41,300 0 41,300

Expected Completion: Jun 2023

Clear direction - Services, processes & business activities are transformed Reserve (41,300)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Information Services Capital

Title:

Major Systems Projects - Land Management System

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included I3 CARRYOVER

Justification: The Land Management system is the base on how data is referred to, with respect to land. This project is scheduled to be completed in Q4 of 2023. Competing priorities and delays in vendor availability have delayed this work in 2022.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 78,600

100,000 21,400 78,600

Expected Completion: Dec 2023

Clear direction - Services, processes & business activities are transformed Reserve (78,600)

Borrow

Fed/Prov

Dev/Com

Utility

Page 515

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Information Services Capital

Title:

Major Systems Projects - Website Compliance

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included I3 CARRYOVER

Justification: Information Services is upgrading the City's website and this project is scheduled to be completed in Q4 of 2023. With competing priorities and a change in the provider's update cycle, a carryover is required.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 160,000

160,000 0 160,000

Expected Completion: Dec 2023

Clear direction - Services, processes & business activities are transformed Reserve (160,000)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Information Services Capital

Title:

Communications Networks (Network Upgrades)

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included I4 CARRYOVER

Justification: Supply issues from the worldwide chip shortage delayed the shipment of equipment. The availability of products will be in Q2 of 2023. Carryover is requested to allow this work to continue in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 46,300

214,700 168,400 46,300

Expected Completion: Jun 2023

Clear direction - Services, processes & business activities are transformed Reserve (46,300)

Borrow

Fed/Prov

Dev/Com

Utility

Page 516

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Vehicle & Mobile Equipment

Title:

Equipment and Vehicle Replacement

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included V2 CARRYOVER

Justification: Carryover is requested for both equipment and vehicles that were approved and ordered in 2022 but will be invoiced and delivered in 2023. These were delayed for various reasons including internal scheduling, vendor availability, and review of design options.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 4,147,900

4,637,000 489,100 4,147,900

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (3,893,300)

Borrow

Fed/Prov

Dev/Com

Utility (254,600)

Department: Cost Center:

Capital Projects Fire Capital

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included F1

Title:

Fire Equipment

CARRYOVER

Justification: A carryover is requested for fire equipment which includes radio upgrades, Max Fire Station Alerting (Ramp Up Tones) and replacement paging system. The department has developed a long-term replacement strategy that is funded from reserve. Due to limitations in capacity of external partners, these projects are expected to be completed by Q2 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 135,500

176,800 41,300 135,500

Expected Completion: Jun 2023

Other - Supports Base Business Reserve (135,500)

Borrow

Fed/Prov

Dev/Com

Utility

Page 517

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CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Airside Land Development

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included A1 CARRYOVER

Justification: This project was deferred due to the re-prioritization of grant funded projects in 2022. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 50,000

50,000 0 50,000

Expected Completion: Dec 2023

Economic resiliency - Key economic sector impact is increasing Reserve (50,000)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Convair Way Parking Lot Upgrades

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: 2019 A2 - $2.7M CARRYOVER

Justification: The completion of the Airport Convair Way Parking Lot Upgrades was deferred in 2020 as part of the Airport's cost saving initiatives implemented in response to the significant impact of COVID-19 and was carried over in 2022 with the anticipation that it would be completed in 2022. With certain projects such as the hotel moving forward in 2022, it was concluded that future parking requirements should be assessed prior to moving forward with the Convair Way parking lot upgrades. As a result, a carryover is requested to allow this project to be completed by the end of 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 2,409,300

2,501,400 92,100 2,409,300

Expected Completion: Dec 2024

Financial management - Non-tax revenues are increasing Reserve (2,409,300)

Borrow

Fed/Prov

Dev/Com

Utility

Page 518

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Groundside Equipment Replacement

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: 2021 A2 - $475k CARRYOVER

Justification: Due to supply chain issues, certain items ordered in 2022 will not be delivered until 2023. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 100,700

117,500 16,800 100,700

Expected Completion: Jun 2023

Other - Supports Base Business Reserve (100,700)

Borrow

Fed/Prov

Dev/Com

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Air Terminal Building Capital Replacement & Improvement

Utility

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: 2022 A3 - $1.16M CARRYOVER

Justification: Six Air Terminal Building improvement projects were not completed in 2022 due to a shift in projects to align with the Airport's goal to be carbon neutral by 2030, contractor capacity constraints, competing priorities, and supply chain issues. A carryover is requested to allow for the completion of the air distribution system, external sliding doors, gas detection system, common use scanner upgrades, terminal building seat replacement, and lighting upgrades projects.

2022 Budget: 2022 Expenditures: 2022 Budget Not Required: Carryover Requested: Strategic Direction: Amount 587,000

1,010,000 125,100 297,900 587,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (587,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 519

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2023 Capital Request Details Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Combined Operations Building Infrastructure Renewal

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included A3 CARRYOVER

Justification: In 2022 the Airport received a $7.1M grant to construct the new Combined Operations Building (COB) sooner than initially planned. The future use of the existing COB was reassessed prior to moving forward with the existing COB infrastructure renewal project, which caused a delay in the project timing. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: 2022 Budget Not Required: Carryover Requested: Strategic Direction: Amount 440,000

645,000 124,600 80,400 440,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (440,000)

Borrow

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Technology Replacements

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included A3 CARRYOVER

Justification: This project has been delayed due to external supplier capacity constraints. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 520,000

520,000 0 520,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (520,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 520

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2023 Capital Request Details Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport - Arrivals Carousels Capacity Upgrades and Belts

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included A4 CARRYOVER

Justification: In 2022 the Airport received a $2.7M grant to complete the Biosecurity project in 2022. The Biosecurity project impacted the arrivals carousels, causing it to be deferred until after the completion of the Biosecurity project. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: 2022 Budget Not Required: Carryover Requested: Strategic Direction: Amount 15,000

100,000 0 85,000 15,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (15,000)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Airport Capital

Title:

Airport Passenger Boarding Bridge Upgrades

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included A4 CARRYOVER

Justification: Due to supply chain issues the project could not be completed prior to winter peak and the project was deferred until 2023 to help avoid potential operational issues. A carryover is requested so this project can be completed in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 338,400

340,000 1,600 338,400

Expected Completion: Jun 2023

Other - Supports Base Business Reserve (338,400)

Borrow

Fed/Prov

Dev/Com

Utility

Page 521

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CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Poplar Point to Dilworth Mountain Transmission Upgrade Design

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included W1 CARRYOVER

Justification: Carryover is requested for the planning and preliminary design of the water supply improvements required to service growth in the Kelowna area. This project was delayed as efforts were re-resourced to establishing the vision of work in the Area Based Water Management Planning process and approval of the new DCC Program. This work, as well as planning for the Kelowna Water Integration Plan will start Q1, 2023. This is the first stage of identifying alignments and operations between Poplar Point to Dilworth Reservoir, while incorporating future filtration and operational needs downtown. The work will lead to detailed phasing of transmission works. 2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 793,100

793,100 0 793,100

Expected Completion: Sep 2024

Clear direction - Common understanding of future direction Reserve (793,100)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Water Capital

Title:

Poplar Point UV System Assessment and Modifications

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W6 CARRYOVER

Justification: Carryover is requested for the purchase of an acid wash bladder and to address an unanticipated failed valve issue discovered late 2022 during construction. The valve requires repair to ensure the system functions as intended. Budget is requested to assess and address this valve issue in the Ultraviolet train at the City's most critical pump station. The project is substantially complete.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 97,800

360,100 262,300 97,800

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (97,800)

Borrow

Fed/Prov

Dev/Com

Utility

Page 522

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CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Skyline PS - Station Upgrade Safety Issues

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W6 CARRYOVER

Justification: Substantial completion of the project including landscaping was achieved in 2022. Due to the seasonality and demand of the pump station, carryover is requested to complete pump restoration and a generator condition assessment during the winter season where periods of reduced flow and demand are experienced.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 319,500

525,600 206,100 319,500

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (319,500)

Borrow

Fed/Prov

Dev/Com

Department: Cost Center:

Capital Projects Water Capital

Title:

Chemical Storage Tank Replacement - Kettle Valley UV Facility

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W7 CARRYOVER

Justification: Supply chain and engineering support availability has delayed completion. Construction materials, supplies, and engineering consultant support costs to be expensed in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 20,100

248,400 228,300 20,100

Expected Completion: Jun 2023

Other - Supports Base Business Reserve (20,100)

Borrow

Fed/Prov

Dev/Com

Utility

Page 523

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Kettle Valley Reservoir Upgrade

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included W7 CARRYOVER

Justification: The new reservoir completed in 2021 requires water demand analysis modeling to improve the mixing of cells. The water demand from June to September is what gets analyzed and modeled for design options by an external consultant. Once the City was able to provide the demand data, the consultant was unable to complete the analysis and provide design options within budget year timeframe. The design is required before proceeding with construction and construction needs to occur during winter months before higher water demands commence in summertime.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 95,300

95,300 0 95,300

Expected Completion: Dec 2023

Environmental protection - Predictive modelling & forecasting Reserve (95,300)

Department: Cost Center:

Capital Projects Water Capital

Title:

Snow Runoff Hydrology

Borrow

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W7 CARRYOVER

Justification: Carryover is requested as work was impacted by resource allocations and ongoing implementation discussions with stakeholders and the Province. The City expects to finalize the location and design early in 2023 with a summer implementation expected to be completed by Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 50,000

50,000 0 50,000

Expected Completion: Sep 2023

Environmental protection - Resiliency & adaptability to climate change Reserve (50,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 524

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

South End Water Upgrades

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included W7 CARRYOVER

Justification: Carryover is requested for this multi-year project to the City's south end water system related to the integration of South East Kelowna Irrigation District and South Okanagan Mission Irrigation District. Delays have been encountered due to seasonal demand analysis capacity with City staff and supply chain on a new pump order. Other present challenges requiring carry over are related to noise mitigation at the Stellar pumping facility. Expecting all work to be complete in Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 290,400

934,000 643,600 290,400

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (290,400)

Borrow

Department: Cost Center:

Capital Projects Water Capital

Title:

Dam Repairs - Irrigation Intake

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W8 CARRYOVER

Justification: Carryover is requested for dam intake repairs, including Dam Repairs to Turtle Lake & McCulloch Dams. Work was delayed due to the late completion of external consultant Dam Safety Inspections. The inspections reports are complete and staff will work with the Province to develop work plans.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 519,700

588,400 68,700 519,700

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (519,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 525

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Hydrants

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included W8 CARRYOVER

Justification: Carryover is requested due to staff resourcing constraints and high construction pricing in 2022. Additional budget and staff capacity now available.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 14,100

20,000 5,900 14,100

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (14,100)

Borrow

Department: Cost Center:

Capital Projects Water Capital

Title:

Irrigation System Upgrades

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included W8 CARRYOVER

Justification: Carryover is requested as work was delayed due to budget challenges and staff availability. It is expected that engineering consultant support, internal staff, construction material, supplies and repair parts will all be available in 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 132,800

176,200 43,400 132,800

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (132,800)

Borrow

Fed/Prov

Dev/Com

Utility

Page 526

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Pressure Reducing Valve Upgrades

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included W8 CARRYOVER

Justification: Project is currently in the design phase and has been delayed by the complexity of the assignment and available resources. Carryover is requested for engineering consultant support, construction support, material & supplies, and parts.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 188,500

200,000 11,500 188,500

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (188,500)

Borrow

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Water Street Lift Station

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included WW2 CARRYOVER

Justification: Carryover is requested for the construction of a new Water Street Lift Station. Carryover budget will be added to the approved 2023 Preliminary Budget to complete design and construction. Project tendering and construction planned for 2023 with project completion Q4, 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 1,432,000

1,500,000 68,000 1,432,000

Expected Completion: Dec 2024

Other - Supports Base Business Reserve (1,432,000)

Borrow

Fed/Prov

Dev/Com

Utility

Page 527

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Biosolids Management Phase I & Phase II

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included WW3 CARRYOVER

Justification: Carryover is requested to continue the Phase I conceptual work for the site requirements, land purchase and application to the Agricultural Land Commission for both a digestion facility to be constructed within the next ten years and the site of the future Wastewater Treatment Facility slated for some time after the year 2050.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 434,200

565,600 131,400 434,200

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (434,200)

Borrow

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

BCTTP Transformer Replacement

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: Design Option 10 Yr Cap Plan Ref: Not included WW5 CARRYOVER

Justification: Carryover is requested due to project delays during the design phase caused by cost challenges. A new cost estimate has been provided and replacement equipment is scheduled to be ordered in Q1 2023. Delivery could be delayed by up to 12 months with the project expected to be completed by Q1 2024.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 400,000

400,000 0 400,000

Expected Completion: Jan 2024

Other - Supports Base Business Reserve (100,000)

Borrow

Fed/Prov

Dev/Com (300,000)

Utility

Page 528

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Commonage - Quonset Mix Building Envelope Renewal

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included WW5 CARRYOVER

Justification: A new envelope was ordered and was scheduled for installation September 2023; however, world shortage of resin resulted in a delayed shipment of components. Installation requires fair weather, so replacement of the existing envelope, which is near the end of its life, has been postponed to spring 2023. Completion expected for Q3 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 148,200

250,000 101,800 148,200

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (96,300)

Borrow

Fed/Prov

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Renewal - Wastewater Mains and Facilities - SCADA

Dev/Com (51,900)

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included WW5 CARRYOVER

Justification: Supervisory Control and Data Acquisition (SCADA) system equipment is used to monitor, measure, process and provide emergency notifications for the main control system in the Wastewater Treatment Plant. The City's current processors and controller technology are no longer supported by the industry. Carryover requested due to low staffing resources and long procurement times which has delayed work, project is slowly progressing. Work completion expected Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 162,200

290,700 128,500 162,200

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (162,200)

Borrow

Fed/Prov

Dev/Com

Utility

Page 529

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Sewer Lift Station SCADA Integration

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included WW5 CARRYOVER

Justification: Carryover is requested for a new Supervisory Control and Data Acquisition (SCADA) package that will be implemented for the City's existing sanitary lift stations. The current package is coming of age and is no longer supported. Furthermore, the new system will incorporate the lift stations into the same SCADA system utilized at the wastewater treatment facility. Carryover requested due to low staffing resources which has delayed work, project is slowly progressing and completion planned for Q4 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 211,300

235,000 23,700 211,300

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (211,300)

Borrow

Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Wastewater Lift Station Renewal

Fed/Prov

Dev/Com

Utility

Priority: 1 Reason: External Event 10 Yr Cap Plan Ref: Not included WW5 CARRYOVER

Justification: Carryover is requested due to the early onset of snow in Kelowna. As paving cannot be completed with snow on the ground, paving has been delayed until Q2, 2023. Additionally, the generator required for this project is to arrive in 2023 and will be installed at that time.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 13,700

621,300 607,600 13,700

Expected Completion: Sep 2023

Other - Supports Base Business Reserve (13,700)

Borrow

Fed/Prov

Dev/Com

Utility

Page 530

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Wastewater Capital

Title:

Rose Ave Lift Station Odour Control System

Priority: 1 Reason: Scheduling Demands 10 Yr Cap Plan Ref: Not included WW6 CARRYOVER

Justification: Budget is for equipment to improve air quality at the Rose Ave lift station control facility to meet air quality standards and achieve reasonable working conditions. The project was expected to be completed in 2022, however, the engineering design plan was returned to the project team in fall 2022. Carryover is requested for contractor engagement in Q1, 2023 with work to be completed by Q4, 2023.

2022 Budget: 2022 Expenditures: Carryover Requested: Strategic Direction: Amount 50,000

50,000 0 50,000

Expected Completion: Dec 2023

Other - Supports Base Business Reserve (50,000)

Borrow

Fed/Prov

Dev/Com

Utility

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FINANCIAL PLAN Kelowna, BC Canada Final Budget - Volume 3

2023

2023 FINANCIAL PLAN

CITY OF KELOWNA

THIS PAGE INTENTIONALLY LEFT BLANK

Page 534

2023 FINANCIAL PLAN

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Report to Council Date:

April 24, 2023

To:

Council

From:

City Manager

Subject:

2023 Financial Plan – Final Budget Volume

Department: Financial Planning

Recommendation: THAT COUNCIL adopts the 2023-2027 Financial Plan; AND THAT Council approves the formulation of 2023 Property Tax Rates that will raise the required funds in 2023, from General Taxation, in the amount of $176,624,339 resulting in an average net property owner impact of 3.78 per cent; AND THAT Bylaw No. 12502 being the 2023-2027 Five-Year Financial Plan, 2023 be advanced for reading consideration; AND THAT Bylaw No. 12503 being the Tax Structure Bylaw, 2023 be advanced for reading consideration; AND THAT Bylaw No. 12504 being the Annual Tax Rates Bylaw, 2023 be advanced for reading consideration; AND THAT Bylaw No. 12505 being the DCC Reserve Fund Expenditure Bylaw, 2023 be advanced for reading consideration; AND THAT Bylaw No. 12508 being the Septic Removal Specified Area Reserve Fund Expenditure Bylaw, 2023 be advanced for reading consideration; AND FUTHER THAT Bylaw No. 12506 being the Sale of City Owned Land Reserve Fund Expenditure Bylaw, 2023 be advanced for reading consideration. Purpose: To present the 2023 Final Budget Volume submissions, the 2023-2027 Financial Plan and related bylaws to Council for their consideration and approval. Background: Council approved the 2023 Financial Plan – Preliminary volume on December 8, 2022 and the addition of the 2023 Financial Plan – Carryover Budget volume on March 20, 2023. The 2023 Financial Plan Final Budget volume includes emergent, legislated or Council directed requests. The three volumes

Page 535

2023 FINANCIAL PLAN

CITY OF KELOWNA

provide the 2023 portion of the 2023-2027 Five Year Financial Plan. Depending on the nature of the item being considered within Final Budget, the adjustments could cause the final tax demand to increase or decrease. The City of Kelowna’s strong financial management and clear budgeting practices continue to allow the delivery of essential services residents expect while maintaining, expanding, and building infrastructure that makes Kelowna a great place to live. The 2023 Final Budget as proposed, reflects a net municipal property tax increase of 3.78 per cent, a 0.2 per cent decrease to the Preliminary Budget tax requirement approved in December 2022, of 3.80 per cent. The largest Final Budget request affecting taxation can be attributed to the H2O facility air handling renewal request which is offset by an increase in new construction revenue and the FortisBC franchise fee revenue. Information about the requested changes are included in the attached 2023 Final Budget Volume. A tax rate of 3.78 per cent means the owner of a residential property with an average assessed value of $1,009,350 will pay $2,373 which is an increase of $87 from the prior year for the municipal portion of their property taxes. Considerations applicable to this report: Legal/Statutory Authority: In Section 165 of the Community Charter regarding Financial Plans, adoption of a 5 Year Financial Plan bylaw is required prior to the annual property tax bylaw. Under the Annual Property Tax Bylaw Section 197 of the Community Charter, Council must establish tax rates by bylaw after adoption of the financial plan but before May 15th. Considerations not applicable to this report: Legal/Statutory Procedural Requirements: Existing Policy: Financial/Budgetary Considerations: External Agency/Public Comments: Communications Comments: Submitted by: M. Antunes, CPA Financial Planning Manager Approved for inclusion: J. Sass, CA, CPA Director of Financial Services Attachment: 1: 2023 Financial Plan – Final Budget Volume 2. 2023-2027 Five-Year Financial Plan 3: 2023 Financial Plan Presentation

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2023 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL SUMMARIES The Final Budget Volume includes requests that are emergent, required by legislation or have been directed by City Council. This volume is consolidated with the first two volumes, Preliminary Volume and the Carryover Volume, to create the Financial Plan and the ‐ Five‐Year Financial Plan. The Financial Plan results in a Final Tax Demand of . M. This represents an increase of Preliminary Financial Plan, and an increase of . M of taxation revenue from new construction. The impact to the average property owner is .

. M relative to the

per cent.

FINAL BUDGET SUMMARIES Analysis of tax demand ( thousands) The final tax demand was . M and had a . per cent net property owner impact. The final gross department operating expenditures have increased by . per cent over and net department revenues by decreased by . per cent. The net general debt decreased by . per cent while capital expenditures from general taxation increased by . per cent and general revenue increased by . per cent for a total gross tax demand increase of . M.

Gross departmental operating expenditures

2022 298,253

2023 305,416

Change 7,163

% change 2.40%

Net departmental revenue

(136,935)

(133,942)

2,993

(2.19)%

Net departmental operating expenditure

161,318

171,474

10,156

6.30%

Net general debt

4,305

5,701

1,395

32.41%

Capital expenditures from general taxation

13,693

15,132

1,439

10.51%

General revenue

(12,209)

(15,683)

(3,473)

28.45%

Gross tax demand

167,107

176,624

9,517

5.70%

Less estimated new construction revenue

(3,160)

(3,200)

Net property owner impact Note: Totals may not add due to rounding

3.94%

3.78%

(0.16%)

Page 537

2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund tax demand ($ thousands) The tax demand established at Preliminary Budget was . M. The estimated new construction revenue was on BC Assessment preliminary roll information, resulting in a . per cent net property owner impact.

. M, based

Final Budget requests for net general fund operating and capital expenditures of . M have held the total tax demand to . M. Final new construction revenues, based on the revised assessment roll, increased by . M to . M, reducing the net property owner impact to . per cent.

175,126

Preliminary Budget Tax Demand Final Budget Submissions General Revenues Operating Requests

(397) 765

368 1,130

Capital Project Requests Total Final Budget Additions Final Gross Tax Demand

1,498 176,624

Less new construction revenue Final Net Tax Demand

(3,200) 173,424

Net Property Owner Impact 3.80%

Preliminary Budget

3.78%

Financial Plan ‐ Final Budget Note: Totals may not add due to rounding

Airport and Utility Funds – Final Budget ($ thousands) Final Budget requests for the Water utility totals

k funded from water reserves.

Final Budget Submissions Revenue

Operating Requests

Capital Project Requests Total Final Budget Additions

0 300 300

Note: Totals may not add due to rounding

Page 538

2023 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of total revenues The total revenue budget is

. M with

. M from operating sources and

. M from capital sources.

The tables below summarize the total operating and capital revenue by fund, including the prior year’s carryover amounts, and the same revenue information by revenue source.

Revenues by Fund ($ thousands) Operating

Capital

General

319,618

186,422

Airport

56,891

139,065

Water

18,204

10,501

Wastewater

18,250

31,220

Water: 4%

412,963

367,208

Wastewater: 6%

Total

780,171

General: 65% Airport: 25%

Total $780.2M

Note: Totals may not add due to rounding

Revenues by Type ($ thousands) Taxation Parcel Taxes Fees and Charges

176,624 3,434 164,593

Debenture/Borrowing

8,507

General Revenues

15,683

Other Revenue

23,179

Grants

49,131

Interdept. Transfers Reserves and Surplus

11,573 327,448

Total

780,171

Taxation 23% Parcel Taxes 1% Fees and Charges 21% Debenture/Borrowing 1% General Revenues 2% Other Revenue 3% Grants 6% Interdept. Transfers 1% Reserves and Surplus 42% Total $780.2M

Note: Totals may not add due to rounding

Page 539

2023 FINANCIAL PLAN

CITY OF KELOWNA

Analysis of total expenditures The total expenditure budget requirement is program.

. M with

. M for operating needs and

. M for the

capital

The tables below summarize the total operating and capital expenditures by fund, including the prior year’s carryover amounts, and the same total operating and capital expenditure information by expenditure type.

Expenditures by Fund ($ thousands) Operating

Capital

General

319,618

186,422

Airport

56,891

139,065

Water

18,204

10,501

Wastewater

18,250

31,220

412,963

367,208

Total

780,171

General 65% Airport 25% Water 4% Wastewater 6% Total $780.2M

Note: Totals may not add due to rounding

Expenditures by Type ($ thousands) Salaries & Wages

116,113

Internal Equipment

10,539

Material

80,930

Contract Services

108,344

Debt

10,899

Internal Allocations

11,403

Transfer to Funds

74,734

Capital

367,208

Total

780,171

Salaries & Wages 15% Internal Equipment 1% Material 10% Contract Services 14% Debt 1% Internal Allocations 2% Transfers to Funds 10% Capital 47% Total $780.2M

Note: Totals may not add due to rounding

Page 540

2023 FINANCIAL PLAN

CITY OF KELOWNA

Use of tax dollar by service area The table below highlights the cost by service area and the resulting total municipal taxes for the average residential property in Kelowna for . Note the municipal portion of taxes does not include amounts collected on behalf of other taxing authorities or applicable business improvement areas such as: Regional District of Central Okanagan, BC Assessment, Okanagan Regional Library, Minister of Finance – School Tax, Downtown Kelowna Business Improvement Area or Uptown Rutland Business Improvement Area. The average assessed value of a residential property is , , in , as obtained from BC Assessment. The service area with the highest cost is Community Safety, including RCMP, at per cent, followed by the Parks Services at per cent and Fire Department at per cent.

Service area

$ Cost

2023 %

2022 %

Community Safety Fire Department Infrastructure Street Lights Parks Services Transportation Services Utility Services Planning & Development Active Living & Culture Services Regional Programs Public Transit Debt Grants or transfers to external organizations/individuals

28.47 331.32 229.03 55.51 237.83 113.14 10.76 111.91 80.36 49.21

1 14 10 2 10 5 1 5 3 2

1 13 11 2 10 5 1 4 3 2

Total Municipal portion of taxes $ 2,372.80 Based on the 2023 average residential property assessed property value of , , Note: Totals may not add due to rounding

100%

803.11 322.14

34 13

35 13

Page 541

2023 FINANCIAL PLAN

CITY OF KELOWNA

Ongoing budget impacts Below is a projection of the next five years net property owner impacts using the best information available at the time of preparation for the Final Budget volume. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. For the years after , budgets have been adjusted for current one‐time projects, changes in operating budgets from previously approved requests, new capital projects included in the Council endorsed ‐Year Capital Plan, ‐ ( YCP), growth and/or inflationary rates, and other key assumptions. Although this forward looking information is based on what is believed to be reasonable assumptions, there can be no assurance that this information will prove to be accurate as actual results and future events could differ materially from the anticipated information contained in this forecast. Specific assumptions in the preparation of the years ‐ included in the forecasted increases below: • Growth rates of . per cent for to , . per cent in . • Inflation rates of per cent for most operating expenses and certain revenues, rate increase to per cent in for materials expense. • Debt impacts have been split over the expected construction years to match required cash flow and to spread the debt repayment impacts. Included in the plan with significant impacts, are the Parkinson Recreation Centre and the Capital New Centre – Expansion projects along with anticipated alternate funding sources. Additional details on all assumptions are provided in the Five‐Year Financial Plan (

‐

General revenues Net operating budget

2023 (15,683) 177,175

2024 (16,023) 188,047

2025 (16,371) 199,214

2026 (16,735) 211,274

2027 (17,089) 222,421

Pay‐as‐you‐go capital Taxation demand

15,132 176,624

16,255 188,279

17,453 200,296

18,727 213,266

19,981 225,313

New construction tax revenue (3,200) Net property owner impact 3.78% Note: Totals may not add due to rounding.

(2,808) 5.01%

(2,994) 4.79%

(3,185) 4.89%

(3,135) 4.18%

Page 542

2023 FINANCIAL PLAN

Financial Plan

CITY OF KELOWNA

‐

The table below outlines the City’s Five‐Year forecast for all funds revenues and expenditures for ‐ . The years ‐ are included in summary to match the term of the ‐Year Servicing Plan. For detailed divisional information see the Five‐Year Financial Plan section of the Financial Plan.

2023

2024

2025

2026

2027

2028‐2030

176,624,339 7,325,200 3,433,673 166,752,954 8,507,400 90,079,744 452,723,310

188,279,055 7,471,704 3,386,926 168,998,093 161,039,504 64,924,162 594,099,445

200,295,838 7,621,138 3,226,092 176,296,845 50,989,600 68,236,877 506,666,391

213,266,188 7,773,561 2,878,729 181,604,696 0 65,808,081 471,331,255

225,313,048 7,929,032 2,643,767 185,477,990 0 64,104,429 485,468,266

723,943,923 24,751,330 7,706,257 607,768,371 6,321,200 192,860,588 1,563,351,669

2,399,489 55,191,710 269,856,570 327,447,769

1,803,987 27,879,895 73,537,991 103,221,873

4,018,987 45,071,243 74,663,418 123,753,649

5,018,987 42,110,785 52,310,615 99,440,388

5,018,987 72,931,463 67,176,349 145,126,799

4,271,961 131,287,135 243,984,608 379,543,705

780,171,079

697,321,318

630,420,039

570,771,643

630,595,065

1,942,895,374

3,980,837 6,918,584 367,208,100

5,854,736 7,140,895 288,733,676

10,057,004 9,295,237 204,324,905

13,579,814 13,569,554 129,728,128

15,783,808 14,561,097 173,098,283

46,825,315 43,009,316 427,984,615

38,935,773

44,982,463

47,990,399

51,232,650

54,614,371

185,472,621

Community Services

35,969,865 102,941,048

29,502,083 105,058,206

29,279,911 108,811,337

30,240,946 112,228,174

31,205,486 115,657,991

99,725,484 368,692,809

Protective Services

94,492,441

88,067,171

91,149,022

94,369,042

97,594,381

313,263,910

Utilities

27,894,607

26,681,298

27,473,602

28,278,225

28,981,397

92,258,679

Airport

22,666,780 701,008,035

23,045,145 619,065,673

24,379,339 552,760,756

26,662,772 499,889,305

27,403,596 558,900,411

86,108,813 1,663,341,561

31,694,307 0 47,468,737 79,163,044

31,556,581 0 46,699,064 78,255,645

32,324,994 0 45,334,289 77,659,283

32,376,236 0 38,506,102 70,882,338

32,439,085 0 39,255,570 71,694,655

97,164,211 0 182,389,601 279,553,812

Total Expenditures 780,171,079 Note: Totals may not add due to rounding.

697,321,318

630,420,039

570,771,643

630,595,065

1,942,895,374

Revenue Property Value Tax Library Requisition Parcel Taxes Fees and Charges Borrowing Proceeds Other Sources

Transfer between Funds Reserve Funds DCC Funds Surplus/Reserve Accounts

Total Revenues Expenditures Municipal Debt Debt Interest Debt Principal Capital Expenditures Other Municipal Purposes General Government Planning, Development & Building Services

Transfers between Funds Reserve Funds DCC Funds Surplus/Reserve Accounts

Page 543

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Page 544

OPERATING BUDGET

2023 FINANCIAL PLAN

CITY OF KELOWNA

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Page 546

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Requests Final Budget Summary - General Fund Page

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

Taxation Cat

500,000

(500,000) OG

Total New

500,000

(500,000)

Division Priority 1 Total

500,000

(500,000)

24,000

(24,000) OG

Total Growth

24,000

(24,000)

Division Priority 1 Total

24,000

(24,000)

161,000

(161,000) OG

Total Maintain

161,000

(161,000)

550 Downtown On Call and Clean Team Support Increase 550 Extreme Weather Response Program Funding 551 Security Services Enhancement Additional Guard

30,000

(30,000) OG

30,000

(30,000)

0 OG

50,000

(50,000) OG

Total Growth

110,000

(30,000)

(80,000)

Division Priority 1 Total

271,000

(30,000)

(241,000)

551 Transmission of Taxes - BIA's and 133,554,000 Other Governments

(133,554,000)

0 OT

(133,554,000)

City Administration New 549

Council Initiatives

Infrastructure Division Growth * Downtown On Call and 550 Clean Team Support Increase

Corporate & Protective Services Division Corporate Services Maintain 549 Insurance Premiums - Inflationary Increase

Growth

Financial Services Division Debt & Other Maintain

Total Maintain

133,554,000

Page 547

2023 FINANCIAL PLAN

Page

CITY OF KELOWNA

Description

Cost

Reserve

Borrow

Grant/Other

Revenue

Utility

133,554,000

(133,554,000)

(396,800)

396,800 OG

Total Maintain

(396,800)

396,800

Division Priority 1 Total

(396,800)

396,800

Total Priority 1 Operating

134,349,000

(30,000)

(133,950,800)

(368,200)

Division Priority 1 Total

Taxation Cat

Financial Services Division Revenue & Fees Maintain 552

FortisBC Operating Fee

Page 548

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

City Manager Council

Title:

Council Initiatives

New

Priority: 1

ON-GOING FINAL

Justification: Kelowna City Council is committed to working closely with residents, community partners and other levels of government to bring positive change. Council priorities and results identify where residents and City Council want to make a difference. Budget is requested for City Council to provide funding to promote and finance various initiatives that will contribute to this change.

Strategic Direction: 2023 2024 2025

Other - Council Resolution

Cost 500,000 500,000 500,000

Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Division: Department:

Corporate & Protective Services Risk Management

Title:

Insurance Premiums - Inflationary Increase

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (500,000) (500,000) (500,000) Maintain

Priority: 1

ON-GOING FINAL

Justification: Budget is requested to cover inflationary increases in insurance premiums. Inflation on insurance premium rates in 2023 has been significant worldwide. Property insurance costs in particular increased as a result of higher building replacement costs due to inflation of materials and labour. The City of Kelowna insures $1.1B of built infrastructure with coverage including liability, property, cybercrime and environmental impairment. 2023 Base budget: $1.55M

Expected Completion: Dec 2023 Strategic Direction: 2023 2024 2025

Cost 161,000 161,000 161,000

Financial management - Cost to deliver services is quantified Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (161,000) (161,000) (161,000)

Page 549

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Corporate & Protective Services Risk Management

Title:

Downtown On Call and Clean Team Support Increase

Growth

Priority: 1

ON-GOING FINAL

Justification: The City of Kelowna works in collaboration with the Downtown Kelowna Business Association to maintain a safe and inviting environment in the downtown core. Since 2019, the City has financially supported the Downtown On Call (DOC) and Downtown Clean Team (DCT). Budget is requested to increase the support for these important teams to allow them to address an increasing demand for service. 2023 Base budget: $106k

Strategic Direction: 2023 2024 2025

Cost 54,000 54,000 54,000

Community Safety - Residents feel safe Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Division: Department:

Corporate & Protective Services Risk Management

Title:

Extreme Weather Response Program Funding

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation (54,000) (54,000) (54,000) Growth

Priority: 1

ON-GOING FINAL

Justification: Budget is requested for the City of Kelowna to support vulnerable people throughout the community during extreme hot and cold weather events, for which there is no formal program or funding currently in place. These activities are separate from actions taken by the Regional Emergency Program. In 2022, the Province formally asked all local governments in BC to work with community partners to have a community plan for heat domes and freezing cold conditions. Staff will monitor for grants and other funding sources as they become available to offset or supplement this funding.

Strategic Direction: 2023 2024 2025

Cost 30,000 30,000 30,000

Community Safety - Residents feel safe Reserve (30,000) 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue 0 0 0

Utility 0 0 0

Taxation 0 (30,000) (30,000)

Page 550

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Corporate & Protective Services Risk Management

Title:

Security Services Enhancement - Additional Guard

Growth

Priority: 1

ON-GOING FINAL

Justification: Budget is requested for an additional seasonal security guard to support downtown from April through September. More support is needed to address growing security concerns during the early morning hours. Additional security presence at these times will reduce vandalism and misuse of washrooms amenities as well as improve asset protection. 2023 Base budget: $1.02M

Strategic Direction: Cost 50,000 50,000 50,000

2023 2024 2025

Other - Supports Base Business Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Division: Department:

Financial Services Financial Services

Title:

Transmission of Taxes - BIA's and Other Governments

Revenue 0 0 0

Utility 0 0 0

Taxation (50,000) (50,000) (50,000) Maintain

Priority: 1

ONE-TIME FINAL

Justification: To establish the receipt and disbursement of taxes to Business Improvement Areas (BIA) and other governments: Regional District of Central Okanagan (RDCO) ($14,816,900); RDCO SIR Land Levy ($763,200); RDCO SIR Parcel Tax ($275,000); BC Assessment Authority ($2,759,700); School Tax ($87,498,800); Additional School Tax ($4,074,800); Kelowna Downtown BIA ($1,149,000); Uptown Rutland BIA ($222,500); Regional Hospital ($14,668,900); and Okanagan Regional Library ($7,325,200). The total amount to be collected for all other taxing authorities is $133,554,000.

Strategic Direction: 2023

Cost 133,554,000

Financial management - Cost to deliver services is quantified Reserve 0

Borrow 0

Grant 0

Other Revenue 0 (133,554,000)

Utility 0

Taxation 0

Page 551

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Operating Request Details Division: Department:

Financial Services Financial Services

Title:

FortisBC Operating Fee

Maintain

Priority: 1

ON-GOING FINAL

Justification: This request is to adjust the franchise fee revenue due from FortisBC up to $2,157,365 from the 2023 Preliminary budget amount of $1,760,540. The fee is based on 3 per cent of the gross revenue for the provision and distribution of all gas consumed within the City of Kelowna during the 2022 calendar year.

Strategic Direction: 2023 2024 2025

Cost 0 0 0

Financial management - Non-tax revenues are increasing Reserve 0 0 0

Borrow 0 0 0

Grant 0 0 0

Other 0 0 0

Revenue (396,800) (396,800) (396,800)

Utility 0 0 0

Taxation 396,800 396,800 396,800

Page 552

CAPITAL BUDGET

2023 FINANCIAL PLAN

CITY OF KELOWNA

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Page 554

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Final Budget Summary - General Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

Taxation

2,500,000

(1,500,000)

(1,000,000)

2,500,000

(1,500,000)

(1,000,000)

1,050,000

(1,050,000)

B2 - Community and Cultural Buildings

1,050,000

(1,050,000)

557 Renew City Hall - Level 1 Meeting Room Suite

135,000

(135,000)

B3 - Civic/Protective Service Buildings

135,000

(135,000)

130,000

(130,000)

B4 - Transportation and Public Works Buildings

130,000

(130,000)

Cost Center Totals

3,815,000

(2,685,000)

(1,130,000)

558 Renew City Park - Rose Garden Improvements

220,000

(220,000)

P6 - City-wide Park Development

220,000

(220,000)

558 Growth Mission Recreation Park - Modular park washroom unit

162,000

(162,000)

P8 - Renewal, Rehabilitation & Infra

162,000

(162,000)

Cost Center Totals

382,000

(382,000)

Grand Total

4,197,000

(3,067,000)

(1,130,000)

Building Capital - Priority 1 556 Renew H20 Facility Air Handling Renewal B1 - Parks and Recreation Buildings 556 Renew General Building Infrastructure Renewal

557 Renew City Yards - Female Changeroom Upgrades

Parks Capital - Priority 1

Page 555

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

H20 Facility Air Handling Renewal

Renew Priority: 1 10 Yr Cap Plan Ref: Not included B1 FINAL

Justification: Air Handling units at the H2O Adventure & Fitness Centre are approaching the end of their useful life. Immediate service work and replacement is recommended to ensure building operations are not impacted. In consideration of supply chain issues, final work is anticipated into Q2, 2024.

Expected Completion: Dec 2024 Strategic Direction: Other - Extraordinary or Unforeseen Obligation Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 2,500,000 (1,500,000)

Borrow 0

Fed/Prov 0

Department: Cost Center:

Capital Projects Building Capital

Title:

General Building Infrastructure Renewal

Dev/Com 0

Utility 0

Taxation (1,000,000)

Renew Priority: 1 10 Yr Cap Plan Ref: Not included B2 FINAL

Justification: Budget is requested for general building infrastructure renewal that includes additional budget for the City Hall mechanical upgrade due to equipment cost escalations, and for the modernization of the elevator at the Parkinson Activity Centre. The elevator has had recent frequent maintenance concerns and outages. Contractor investigation identified critical parts are now obsolete requiring modernization to ensure accessibility.

Expected Completion: Dec 2023 Strategic Direction: Other - Extraordinary or Unforeseen Obligation Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost Reserve 1,050,000 (1,050,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 556

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Building Capital

Title:

City Hall - Level 1 Meeting Room Suite

Renew Priority: 1 10 Yr Cap Plan Ref: 2021 B3 - $4.685M FINAL

Justification: The meeting room suite of 4,200sqft on Level 1 of City Hall is complete and will be open shortly for use for City business as well as available for community bookings after hours. In the spirit of reconciliation and recognizing the living history of our region, the rooms are proposed to be given First Nations names, with artwork and decor to honour these names. The name na'?k'?ulam?n generally translates to ‘the things that we do'. The existing capital project is complete, and due to inflationary costs experienced throughout this project, there is no budget remaining for such enhancements. Budget is therefore requested for artwork, decor and specific furniture to create a most meaningful space in the meeting room suite.

Expected Completion: Dec 2023 Strategic Direction: Social & inclusive - Inclusivity and diversity are increasing Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 135,000

Reserve (135,000)

Borrow 0

Fed/Prov 0

Department: Cost Center:

Capital Projects Building Capital

Title:

City Yards - Female Changeroom Upgrades

Dev/Com 0

Utility 0

Taxation 0

Renew Priority: 1 10 Yr Cap Plan Ref: Not included B4 FINAL

Justification: Budget is requested to accommodate the increase of female staff for the Outdoor Operations team at the City Yards facility. The female changeroom facilities have become unsuitably overcrowded for the increased number of female staff. A remodeling of the changeroom and washroom is recommended to increase the area and allow for adequate room for the additional female staff.

Expected Completion: Dec 2023 Strategic Direction: People - Ability to attract, select & retain talent Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 130,000

Reserve 0

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation (130,000)

Page 557

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Parks Capital

Title:

City Park - Rose Garden Improvements

Renew Priority: 1 10 Yr Cap Plan Ref: Not included P6 FINAL

Justification: Budget is requested for a cross-divisional operational initiative to modify existing amenities, with a focus on safety and operational improvements at City Park. Through the improvement of sightlines, and the introduction of new activities to encourage more park users onto the east side of the park, it is expected many of the social issues that occur will be moved from this area.

Reserve (220,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Department: Cost Center:

Capital Projects Parks Capital

Title:

Mission Recreation Park - Modular park washroom unit

Utility 0

Taxation 0

Growth Priority: 1 10 Yr Cap Plan Ref: Not included P8 FINAL

Justification: Budget is requested to purchase, transport and install a new, unused multi-stall parks washroom unit. The unit is proposed to be installed first at Mission Rec Park (MRP) to service the high demand in the southern half of the site. When other permanent washrooms become available at MRP, the unit will be relocated to another high demand location. Cost savings are expected to be realized through the reduction of renting and maintaining of the blue portable toilets.

Expected Completion: Dec 2023 Strategic Direction: Financial management - Cost to deliver services is quantified Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 162,000

Reserve (162,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Taxation 0

Page 558

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Requests Final Budget Summary - Water Fund Page Type

Description

Asset Cost

Reserve

Borrow

Grant

Other

Utility

300,000

(300,000)

W7 - Network and Facility Improvements

300,000

(300,000)

Cost Center Totals

300,000

(300,000)

Grand Total

300,000

(300,000)

Water Capital - Priority 1 560 Growth Osprey Ave Watermain

Page 559

2023 FINANCIAL PLAN

CITY OF KELOWNA

2023 Capital Request Details Department: Cost Center:

Capital Projects Water Capital

Title:

Osprey Ave Watermain

Growth Priority: 1 10 Yr Cap Plan Ref: Not included W7 - $0 FINAL

Justification: Budget is requested to help minimize the overall service disruption to the surrounding Osprey Avenue neighbourhood. The project consists of upgrading the watermain along Osprey Avenue while the sewer project is being constructed as this neighbourhood was approved for intensification. The Water Utility will fund 50 per cent of the project to reflect the advancing of the renewal project, while the remaining 50 percent will be recovered, from development, through future latecomer fees.

Expected Completion: Dec 2023 Strategic Direction: Economic resiliency - City policies are enabling investment Operating Impact: There are no operation and maintenance budget impacts associated with this request Asset Cost 300,000

Reserve (300,000)

Borrow 0

Fed/Prov 0

Dev/Com 0

Utility 0

Page 560

FINANCIAL PLAN Kelowna, BC Canada Five-Year Financial Plan 2023-2027

2023

2023 FINANCIAL PLAN

CITY OF KELOWNA

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Page 562

2023 FINANCIAL PLAN

CITY OF KELOWNA

FINANCIAL PLAN The City of Kelowna has developed a comprehensive Financial Plan providing a five‐year summary of general revenues, operating expenditures, and capital expenditures to help guide the City throughout the next five years. The format of the plan keeps the General Fund separate from the Utility Funds to clearly identify taxation requirements for the five‐year period. Over the past year there has been a significant economic change that has led to increased inflation, interest rate pressures, supply chain disruptions and labour shortages which have impacted the City of Kelowna’s Financial Plan. Strategic decision making is the key to strong financial management to govern economic challenges and will require attention to reposition priorities, seek out cost saving opportunities and find new ways to generate revenue. The priority is to continue to deliver on our promise to the community and organizations by keeping the tax rate low, addressing social issues, supporting affordable housing and improving transportation programs. The Financial Plan attempts to provide a ‘snapshot’ of the future using current standards and service levels. The City is committed to delivering programs, services and infrastructure in a manner that respects the community vision identified through Imagine Kelowna. The community input received through Imagine Kelowna, the availability of funding from other sources (Federal, Provincial, and Community), the Official Community Plan, Year Servicing Plan, the Infrastructure Plan and the ‐Year Capital Plan, all affect the programs included in the future years of the plan. The Council endorsed ‐Year Capital Plan, ‐ , and the Infrastructure Plan, have provided a guideline for future capital through to in this Financial Plan. The Financial Plan is intended to provide guidance and information upon which to base current and future expenditure decisions. It will aid in the understanding of the City’s financial position and financing capabilities over the next five years. budget process which includes: The development of the Financial Plan follows the  Preliminary Budget – approved by Council December ,  Carryover Requests – approved by Council March ,  Final Budget – approved by Council on April , Although most of this plan is devoted to the Preliminary Budget details, the changes made by Council at Preliminary, Carryover, and Final Budget, together, provide the portion of the Financial Plan. For the years after , the operating budget is adjusted for current one‐time projects, approved prior year changes in operating requirements, new capital projects included in the Council endorsed ‐Year Capital Plan, growth and/or inflation factors depending on the nature of the revenue or expenditure, and other key assumptions. As with any planning exercise, the level of certainty and detail is most appropriately found in the current year. Future year assumptions are required to forecast general revenues, incremental operating expenditures to support new capital, debt servicing and ongoing departmental revenues and expenditures.

Page 563

2023 FINANCIAL PLAN

Assumptions used in the preparation of the years



   

CITY OF KELOWNA

in the Financial Plan projections include:

An inflation rate of per cent for most of the operating costs and for some revenues. The Bank of Canada aims to keep inflation at the per cent midpoint of an inflation‐control target range of to per cent. An inflation rate of per cent was used in for materials expenses to accommodate the higher rate of cost escalation for these items. A growth rate of . per cent per year for to and . per cent per year for per the Official Community Plan was used for various revenues and expenditures and for incremental taxation revenue. Growth rates for the utilities are based on servicing expectations over the next five years which may include existing residential or commercial units. MFA amortization schedules and estimated rates are used as a basis for projected principal and interest where applicable. Approval to borrow for all priority one capital projects funded through debt as presented in the Council endorsed ‐Year Capital Plan, ‐ . There is no change in current service levels except as provided for in the capital program. Reserve funding is used for one‐time operating and capital programs to reduce the requirement for increased taxation.

The Financial Plan summary can be found on page and is used in the Financial Plan bylaw. The final column of the Financial Plan, years to , is included at the request of the Ministry of Municipal Affairs and Housing for information to support the City of Kelowna’s Year Servicing Plan.

REVENUE SOURCES & TRENDS SUMMARY The City defines financial strength and stability as “the ability to acquire and manage a portfolio of financial and physical assets that meet the current and future needs of our community.” This is the goal. To guide future financial planning, the City uses the Council adopted Principles and Strategies for Financial Strength and Stability. The principles and strategies set out in this document guide decision‐making within the City and help to realize this goal and, ultimately, the vision for Kelowna. While some of these strategies focus on a particular component of the financial balance – revenues and costs – they are all interrelated and work together to provide a broad framework for managing the City’s overall finances.

Taxation The City strives to ensure property taxes are sufficient to meet the community’s short and long‐term needs. Taxation is a major revenue source in the General Fund and accounts for per cent of the Financial Plan’s total revenue estimate of . M. Kelowna continues to be below the average taxes paid by property owners in British Columbia. Historical tax rate increases from to is shown in the graph below beside the projected increases for to . Future year increases are estimated using projected growth, average inflation, annualization of budget requests previously approved by Council, capital projects included in the Council endorsed ‐Year Capital Plan, debt changes, and other key assumptions.

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2023 FINANCIAL PLAN

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Net Property Owner Impact 2019 ‐ 2027 Net Property Owner Impact % Increase

6.00% 5.01%

5.00% 4.10% 4.00%

4.04%

3.94%

2021

2022

4.79%

4.89% 4.18%

3.78%

3.00% 2.05%

2.00%

1.00%

0.00%

2019

2020

2023

2024

2025

2026

2027

Years

Note: Rates presented in the graph above for years 2024 to 2027 have not been approved by Council and are subject to change.

to assumes approval to borrow for all priority one capital projects funded through The forecasted increases for debt as presented in the Council endorsed ‐Year Capital Plan, ‐ ( YCP). Although the YCP presents full project budgets in one year, debt impacts have been split over the expected construction years to match required cash flow and to spread the debt repayment impacts. Included in this plan with a significant impact are the Parkinson Recreation Centre Replacement and the Capital News Centre – Expansion projects. Parcel Taxes Parcel taxes are taxes levied through bylaw on the unit, frontage or area of a property that receive a specific service. The majority of the . M in the Financial Plan parcel tax budget is made up of Water Utility parcel taxes and Sewer Specified Area debt recoveries.

Fees & Charges General fund Fees and charges are another way that the City of Kelowna raises revenues and is currently the third largest source of revenue for the general fund at per cent. Fees and charges are useful because those that benefit from a service bear the cost of it. The City’s objective is to ensure user fees and charges are sufficient to meet the City’s needs. General fund fees & charges revenues can be attributed to several Divisions: 

Planning & Development Services generates revenue in the form of development, subdivision, permit and inspection fees along with other service revenues. Most future fees and charges revenue in Planning and Development are estimated using growth projections alone as there is a direct relationship between development revenue and community growth.

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

CITY OF KELOWNA

The Partnerships & Investments Division generates revenues in rental fees from properties owned by the City and from parking throughout the City. Future revenues have been factored by inflation alone as there is little anticipated growth in the inventory of these real estate assets. The Infrastructure Division budget includes Fleet Services, Parks, Public Works and Utility Services which generates the largest proportion of revenue from fees & charges. This revenue is collected through internal equipment charges, cemetery fees, landfill tipping fees and waste collection charges. Estimates of future fees and charges revenue generation are factored for inflation. This Division also includes Regional Transit. Future transit revenues are factored for growth to reflect the expected increase in service demand due to community growth. Active Living & Culture generates revenue from a wide variety of services including facility rentals and sales revenues along with program revenue and recreation facility use revenues. Estimates of future fees and charges revenue generation are factored for inflation and growth to recognize the expected increase in service demand due to community growth as well as recovery for program costs increases. Corporate & Protective Services generates revenue through Bylaw fines, Police Services such as criminal record checks, and the sale of Fire Dispatch Services to other municipalities and regional districts within the Province. Estimates of future fees and charges revenue generation for Corporate & Protective Services are factored for inflation.

Airport and Utility funds The Kelowna International Airport (YLW) is the largest municipally owned and operated airport in Canada. YLW operates on a financially self‐sufficient basis generating all funding required for services and infrastructure from several sources including airport improvement fees, landing & terminal fees, and parking fees. Passenger numbers for the Airport are expected to increase to . M in . Financial The City of Kelowna operates two utility funds: the Water Utility and the Wastewater Utility. Included in the Plan is a budgeted per cent rate increase for water rates, per cent for the Water Quality Enhancement Fee and a . per cent rate increase for wastewater rates. The City Wastewater Utility operates citywide. Future growth potential is limited by infrastructure cost and the availability of Provincial capital support funding. Future local service areas have been identified and the number of sewer customers and amount of revenue generated is scheduled to increase slightly over the next five years. Future revenue estimates are factored for both growth and inflation.

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2023 FINANCIAL PLAN

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Borrowing Proceeds Debt is a common tool that municipalities use to finance capital expenditures over the medium and long term. Debt is viewed as a fair way of financing a project since those who are paying the principal and interest charges are benefitting from the service. The City strives to ensure debt financing is used strategically to maintain the City’s financial strength and stability. There are no new borrowing requirements in the Financial Plan for , but the City does anticipate working through the alternative approval process in to obtain approval to borrow for the replacement of the Parkinson Recreation Centre. Future projects that are planned to be funded through borrowing as indicated in the Council endorsed ‐Year Capital Plan, ‐ include: • ‐ : Parkinson Recreation Centre Replacement • : North Glenmore Fire Hall • ‐ : Capital News Centre ‐ Expansion • : Mission Activity Centre • : City Hall Envelope Renewal • : City Yards – New Offices

Reserves and Surplus Reserves Saving money for future projects and unexpected expenditures is an important planning consideration for the City of Kelowna. Reserves provide a financial mechanism for saving money to finance all or part of future infrastructure, equipment, and other requirements. Reserve funds can also provide a degree of financial stability, by reducing reliance on indebtedness to finance capital projects and acquisitions, or flexibility to leverage opportunities as they arise. This revenue source is mainly used in the capital program for major works. A balance must be maintained between expenditure levels and reserve replenishment to ensure the sustainability of this funding source. The Infrastructure Plan relies on surplus funds being contributed to reserve on an annual basis. Reserve funding requirements vary significantly depending on the annual capital programs. In the Financial Plan, it is the largest source of revenue at per cent largely due to the addition of carryover budgets which are funded through reserves. Surplus Surplus funds generated in the General Fund, as well as the Utility Funds of Water and Wastewater, are contributed to the accumulated surplus annually. The Council adopted Principles & Strategies for Financial Strength and Stability document includes a strategy that restricts the use of these funds to emergencies such as fires and floods.

Other sources General revenues General revenues include revenues not associated directly with any one City division or service. Examples of this revenue include investment interest, penalties on taxes and utility accounts, traffic fine revenue sharing and % payment in lieu of taxes for private utilities. These revenues are anticipated to increase by growth and/or inflation in the coming years. Over the next five years, total general revenues are anticipated to increase by approximately . per cent annually to and . per cent in . Government grants and contributions Grants are a useful tool in a municipality’s financial toolbox and can be used strategically to offset costs to taxpayers and ratepayers. However, a reliance on grants to fund capital projects and services will undermine a community’s ability to attain

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2023 FINANCIAL PLAN

CITY OF KELOWNA

financial strength and stability. Grants in pragmatically leverage grant opportunities.

help to fund per cent of the City’s overall budget. The City’s objective is to

Significant grants in include the transit partnership with the Province of British Columbia which provides funding for conventional transit and custom transit costs at per cent and the Investing in Canada Infrastructure program which is a federal and provincial program to help fund Kelowna’s Sewer Connection area project. Gaming revenues are expected to increase by be applied against police costs.

per cent throughout

. This revenue is included in the RCMP budget to

The city continues to receive funding from the Canada Community‐Building Fund, formerly the federal Gas Tax Fund. This fund provides predictable, long‐term and stable funding for investment in infrastructure and capacity building projects to local governments in British Columbia. In , the City of Kelowna expects to receive . M. The City of Kelowna will continue to apply for Federal and Provincial Grants during the year. Successful grants will be added to the Financial Plan through the budget amendment process.

Summary of revenue sources (͈ thousands) The following graph summaries the City's revenue sources by type. The years to are based on actual amounts received. Years to are forecasted values calculated using the assumptions discussed above. 900,000,000 800,000,000

Fees and charges

700,000,000 600,000,000

Other sources

500,000,000

Property/parcel taxes

400,000,000 300,000,000

Reserves and surplus

200,000,000

Debenture/borrowing

100,000,000 ‐

2019

2020

2021

2022

2023

Note: Reserve funding totals in the chart above are higher in

2024

2025

2026

2027

due to carry‐over projects.

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Five-Year Financial Plan Summaries Financial Plan 2023-2027

2023

2024

2025

2026

2027

2028-2030

176,624,339 7,325,200 3,433,673 166,752,954 8,507,400 90,079,744 452,723,310

188,279,055 7,471,704 3,386,926 168,998,093 161,039,504 64,924,162 594,099,445

200,295,838 7,621,138 3,226,092 176,296,845 50,989,600 68,236,877 506,666,391

213,266,188 7,773,561 2,878,729 181,604,696 0 65,808,081 471,331,255

225,313,048 7,929,032 2,643,767 185,477,990 0 64,104,429 485,468,266

723,943,923 24,751,330 7,706,257 607,768,371 6,321,200 192,860,588 1,563,351,669

2,399,489 55,191,710 269,856,570 327,447,769

1,803,987 27,879,895 73,537,991 103,221,873

4,018,987 45,071,243 74,663,418 123,753,649

5,018,987 42,110,785 52,310,615 99,440,388

5,018,987 72,931,463 67,176,349 145,126,799

4,271,961 131,287,135 243,984,608 379,543,705

780,171,079

697,321,318

630,420,039

570,771,643

630,595,065

1,942,895,374

3,980,837 6,918,584 367,208,100

5,854,736 7,140,895 288,733,676

10,057,004 9,295,237 204,324,905

13,579,814 13,569,554 129,728,128

15,783,808 14,561,097 173,098,283

46,825,315 43,009,316 427,984,615

38,935,773

44,982,463

47,990,399

51,232,650

54,614,371

185,472,621

Community Services

35,969,865 102,941,048

29,502,083 105,058,206

29,279,911 108,811,337

30,240,946 112,228,174

31,205,486 115,657,991

99,725,484 368,692,809

Protective Services

94,492,441

88,067,171

91,149,022

94,369,042

97,594,381

313,263,910

Utilities

27,894,607

26,681,298

27,473,602

28,278,225

28,981,397

92,258,679

Airport

22,666,780 701,008,035

23,045,145 619,065,673

24,379,339 552,760,756

26,662,772 499,889,305

27,403,596 558,900,411

86,108,813 1,663,341,561

31,694,307 0 47,468,737 79,163,044

31,556,581 0 46,699,064 78,255,645

32,324,994 0 45,334,289 77,659,283

32,376,236 0 38,506,102 70,882,338

32,439,085 0 39,255,570 71,694,655

97,164,211 0 182,389,601 279,553,812

Total Expenditures 780,171,079 Note: Totals may not add due to rounding.

697,321,318

630,420,039

570,771,643

630,595,065

1,942,895,374

Revenue Property Value Tax Library Requisition Parcel Taxes Fees and Charges Borrowing Proceeds Other Sources

Transfer between Funds Reserve Funds DCC Funds Surplus/Reserve Accounts Total Revenues Expenditures Municipal Debt Debt Interest Debt Principal Capital Expenditures Other Municipal Purposes General Government Planning, Development & Building Services

Transfers between Funds Reserve Funds DCC Funds Surplus/Reserve Accounts

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2023 FINANCIAL PLAN

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General Fund Tax Impact Summary General revenues Net operating budget Pay-as-you-go capital Taxation demand New construction tax revenue Municipal Impact Public Safety Levy Impact Net property owner impact Note: Totals may not add due to rounding.

2023 (15,682,529) 177,175,069 15,131,800 176,624,340 (3,200,000)

2024 (16,022,621) 188,046,676 16,255,000 188,279,055 (2,808,000)

2025 (16,371,392) 199,214,230 17,453,000 200,295,838 (2,994,000)

2026 (16,735,455) 211,274,643 18,727,000 213,266,188 (3,185,000)

2027 (17,089,412) 222,421,460 19,981,000 225,313,048 (3,135,000)

2.78% 1.00% 3.78%

4.01% 1.00% 5.01%

3.79% 1.00% 4.79%

3.89% 1.00% 4.89%

3.18% 1.00% 4.18%

General Revenue 2023

2024

2025

2026

2027

3,100 3,100

2,157,340 2,157,340

2,234,789 2,234,789

2,315,017 2,315,017

2,398,126 2,398,126

2,481,341 2,481,341

7,129,261 195,000 1,500,000 100,000 69,000 8,993,261

7,242,616 198,101 1,523,850 101,590 69,000 9,135,157

7,357,774 201,250 1,548,079 103,205 69,000 9,279,308

7,474,763 204,450 1,572,693 104,846 69,000 9,425,752

7,584,642 207,455 1,595,812 106,387 69,000 9,563,296

40,000 24,050 137,029 (310,000) (108,921)

41,436 24,050 141,948 (321,129) (113,695)

42,924 24,050 147,045 (332,658) (118,639)

44,465 24,050 158,683 (344,600) (117,402)

46,008 24,050 170,187 (356,558) (116,313)

150,438

153,447

156,516

159,646

162,839

Natural Gas Utility

476,169 1,550,553 143,000 (143,000) 2,026,722 -

485,692 1,575,207 143,000 (143,000) 2,060,899 -

495,406 1,600,253 143,000 (143,000) 2,095,659 -

505,314 1,625,697 143,000 (143,000) 2,131,011 -

515,420 1,649,595 143,000 (143,000) 2,165,015 -

Taxes - private utilities 1% in Lieu of Taxes

2,460,589

2,548,924

2,640,431

2,735,222

2,830,134

15,682,529

16,022,621

16,371,392

16,735,455

17,089,412

176,624,339 192,306,868

188,279,055 204,301,676

200,295,838 216,667,230

213,266,188 230,001,643

225,313,048 242,402,460

Licences Dog Licences Franchise fee Fortis Gas Interest & penalties Interest on Investments Tax Arrears & Delinquent Penalties on Taxes Penalties Utility Accounts Interest on Accounts Receivable Miscellaneous revenues Work Order Administration Local Improvement Prepayments Discounts Earned & Misc Risk to Roll Federal contributions Grants in Lieu of Taxes Provincial contributions Grants in Lieu of Taxes Traffic Fine Revenue Sharing Climate Action Rev Incentive Certificate of Recognition Rebate Appropriation to Reserves

Total General Revenues Property taxation Total General Revenue & taxation Note: Totals may not add due to rounding.

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2023 FINANCIAL PLAN

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Operating Summary - General Fund Revenues/Expenditures by Year 2023

2024

2025

2026

2027

Revenue Library Requisition Parcel Tax Fees and Charges Sales of Service Other User Fees Other Revenue Interest Grants Other Services to Other Governments Interdepartment Transfer Interfund Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

(7,325,200) (142,448) (73,415,113) (60,940,805) 0 (12,474,308) (40,704,009) (1,910,490) (19,561,800) 0 (8,827,427) (10,404,292) 0 (20,855,859) (2,399,489) (795,400) (17,660,970)

(7,471,704) (142,448) (74,915,627) (62,167,051) 0 (12,748,576) (37,681,214) (1,948,700) (17,129,076) 0 (8,883,140) (9,720,298) 0 (4,033,687) (1,803,987) (795,400) (1,434,300)

(7,621,138) (142,448) (76,340,683) (63,311,274) 0 (13,029,409) (38,236,787) (1,987,674) (17,420,564) 0 (9,060,114) (9,768,435) 0 (6,042,887) (4,018,987) (795,400) (1,228,500)

(7,773,561) (142,448) (77,864,391) (64,537,527) 0 (13,326,864) (38,017,169) (2,027,427) (17,715,851) 0 (9,240,615) (9,033,276) 0 (7,042,887) (5,018,987) (795,400) (1,228,500)

(7,929,032) (142,448) (79,416,512) (65,782,693) 0 (13,633,819) (38,716,543) (2,067,976) (18,000,403) 0 (9,424,506) (9,223,658) 0 (7,042,887) (5,018,987) (795,400) (1,228,500)

Total Revenue

(142,442,629)

(124,244,680)

(128,383,943)

(130,840,456)

(133,247,422)

Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services Debt Interest Debt Principal Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

99,178,350 8,595,130 57,941,849 106,377,812 2,838,890 3,948,472 4,674,907 4,674,907 0 36,062,288 31,495,847 0 4,566,441

104,039,948 9,057,844 47,481,619 102,568,003 4,586,506 4,180,067 4,462,507 4,462,507 0 35,914,862 31,358,121 0 4,556,741

109,510,591 9,452,186 48,638,471 106,101,913 7,841,954 5,837,986 3,527,507 3,527,507 0 36,687,565 32,126,534 0 4,561,031

115,310,661 9,772,327 49,701,181 109,759,136 10,519,185 7,716,490 3,527,507 3,527,507 0 35,808,612 32,177,776 0 3,630,836

121,245,457 10,093,327 50,781,342 113,424,595 11,688,491 9,032,323 3,527,507 3,527,507 0 35,875,839 32,240,625 0 3,635,214

Total Expenditures

319,617,698

312,291,356

327,598,173

342,115,099

355,668,882

Net Operating Expenditures Note: Totals may not add due to rounding.

177,175,069

188,046,676

199,214,230

211,274,643

222,421,460

Page 571

2023 FINANCIAL PLAN

CITY OF KELOWNA

General Fund ‐ operating summary by division 2023 Net Operating Expenditure 60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

Net Operating Expenditure by Year

City Administration City Clerks Planning & Development Services Partnerships & Investments Infrastructure Active Living & Culture Corporate & Protective Services Corporate Services Community Safety Fire Department Corporate Strategic Services Financial Services Debt & Other Total Division Net Operating Expenditures Note: Totals may not add due to rounding.

2023

2024

2025

2026

2027

2,488,272 1,617,092 (382,496) 9,871,586 40,279,072 11,517,155

2,547,848 1,786,886 (99,128) 9,848,908 43,378,231 11,600,522

2,601,499 1,895,493 76,748 10,146,993 45,637,518 12,014,771

2,666,355 1,953,460 263,266 10,433,618 47,577,986 12,262,715

2,731,966 2,011,739 460,321 10,716,339 49,543,210 12,514,300

7,451,944 52,793,649 22,667,716 10,178,364 6,798,054 11,894,661 177,175,069

9,098,666 55,935,872 23,477,852 11,042,800 7,055,128 12,373,091 188,046,676

11,139,290 57,952,094 24,085,914 11,418,238 7,306,967 14,938,705 199,214,230

13,345,242 60,122,232 24,923,904 11,750,114 7,606,296 18,369,455 211,274,643

15,682,815 62,293,149 25,762,409 12,083,926 7,880,891 20,740,395 222,421,460

Page 572

2023 FINANCIAL PLAN

CITY OF KELOWNA

City Administration Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Parcel Tax

Fees and Charges

Sales of Service

User Fees

Other Revenue

Interest

Grants

Services to Other Governments

Interdepartment Transfer

(14,500)

Special (Stat Reserve) Funds

Development Cost Charges

(14,500)

Salaries and Wages

1,227,847

1,264,356

1,302,023

1,340,889

1,379,990

Internal Equipment

21,090

21,512

21,942

22,381

22,829

Material and Other

907,405

908,621

917,108

935,450

954,159

Contract Services

346,430

353,359

360,426

367,635

374,988

Debt Interest

Debt Principal

Internal Allocations

Interdepartment Transfer

Interfund Transfer

Special (Stat Reserve) Funds

Development Cost Charges

Accumulated Surplus

Total Expenditures

2,502,772

2,547,848

2,601,499

2,666,355

2,731,966

Net Operating Expenditures

2,488,272

2,547,848

2,601,499

2,666,355

2,731,966

Revenue

Transfers from Funds

Accumulated Surplus Total Revenue Expenditures

Transfer to Funds

Note: Totals may not add due to rounding.

Page 573

2023 FINANCIAL PLAN

CITY OF KELOWNA

City Clerk Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Revenue Parcel Tax Fees and Charges Sales of Services User Fees Other Revenue Interest Grants Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

0 (10,000) (1,900) (8,100) (80,000) 0 0 0 (80,000) 0 0 0 0

0 (10,359) (1,968) (8,391) (81,600) 0 0 0 (81,600) 0 0 0 0

0 (10,731) (2,039) (8,692) (83,232) 0 0 0 (83,232) 0 0 0 0

0 (11,116) (2,112) (9,004) (84,897) 0 0 0 (84,897) 0 0 0 0

0 (11,501) (2,185) (9,316) (86,595) 0 0 0 (86,595) 0 0 0 0

Total Revenue

(90,000)

(91,959)

(93,963)

(96,013)

(98,096)

1,129,555 0 482,077 95,460 0 0 0 0 0 0 0 0 0

1,228,116 0 553,360 97,369 0 0 0 0 0 0 0 0 0

1,272,206 0 617,933 99,317 0 0 0 0 0 0 0 0 0

1,317,878 0 630,292 101,303 0 0 0 0 0 0 0 0 0

1,363,608 0 642,898 103,329 0 0 0 0 0 0 0 0 0

Total Expenditures

1,707,092

1,878,845

1,989,456

2,049,473

2,109,835

Net Operating Expenditures Note: Totals may not add due to rounding.

1,617,092

1,786,886

1,895,493

1,953,460

2,011,739

Page 574

2023 FINANCIAL PLAN

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Planning & Development Services Revenues and Expenditures by Year

2023

2024

2025

2026

2027

(10,653,372)

(10,826,114)

(11,001,670)

(11,180,086)

(11,349,033)

(10,653,372)

(10,826,114)

(11,001,670)

(11,180,086)

(11,349,033)

Other Revenue

(663,900)

(181,866)

(78,030)

(79,591)

(81,183)

Interest

Grants

(485,600)

(178,300)

(181,866)

(78,030)

(79,591)

(81,183)

(1,754,100)

(175,880)

(155,880)

Special (Stat Reserve) Funds

(75,000)

Development Cost Charges

(1,679,100)

(175,880)

(155,880)

(13,071,372)

(11,183,860)

(11,235,580)

(11,415,557)

(11,586,096)

Salaries and Wages

8,976,231

9,053,073

9,267,228

9,599,921

9,933,038

Internal Equipment

118,487

123,917

126,395

128,923

131,501

Material and Other

3,169,648

1,481,842

1,491,387

1,521,215

1,551,639

Contract Services

69,510

70,900

72,318

73,764

75,239

Debt Interest

Debt Principal

55,000

300,000

Special (Stat Reserve) Funds

300,000

Development Cost Charges

Accumulated Surplus

12,688,876

11,084,732

11,312,328

11,678,823

12,046,417

(382,496)

(99,128)

76,748

263,266

460,321

Revenue Parcel Tax Fees and Charges Sales of Services User Fees

Services to Other Governments Interdepartment Transfer Transfer from Funds

Accumulated Surplus Total Revenue Expenditures

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds

Total Expenditures Net Operating Expenditures Note: Totals may not add due to rounding.

Page 575

2023 FINANCIAL PLAN

CITY OF KELOWNA

Partnerships & Investments Revenues and Expenditures by Year

2023

2024

2025

2026

2027

0 (10,087,520) (7,877,056) (2,210,464)

0 (10,291,650) (8,034,597) (2,257,053)

0 (10,499,949) (8,195,289) (2,304,660)

0 (10,722,485) (8,359,195) (2,363,290)

0 (10,954,774) (8,526,379) (2,428,395)

Other Revenue

(607,488)

(468,858)

(479,435)

(489,023)

(498,803)

Interest

Grants

(89,400)

(1,200)

(2,424)

(2,472)

(2,521)

(518,088)

(467,658)

(477,011)

(486,551)

(496,282)

Revenue Parcel Tax Fees and Charges Sales of Services User Fees

Services to Other Governments Interdepartment Transfer

(2,172,730)

(424,340)

Special (Stat Reserve) Funds

(552,600)

Development Cost Charges

(1,620,130)

(424,340)

(12,867,738)

(11,184,848)

(11,403,724)

(11,635,848)

(11,877,917)

Salaries and Wages

5,738,045

5,791,256

6,006,216

6,221,839

6,437,737

Internal Equipment

311,052

317,273

323,619

330,091

336,693

Material and Other Contract Services

8,623,903 3,138,532

6,705,819 3,223,117

6,845,094 3,310,177

6,981,996 3,399,790

7,121,636 3,490,205

Debt Interest

Debt Principal

673,260

Transfer from Funds

Accumulated Surplus Total Revenue Expenditures

Internal Allocations Interdepartment Transfer

4,254,532

4,323,031

4,392,351

4,462,490

4,534,725

Special (Stat Reserve) Funds

3,708,862

3,777,361

3,846,681

3,916,820

3,989,055

Development Cost Charges

545,670

Total Expenditures

22,739,324

21,033,756

21,550,717

22,069,466

22,594,256

Net Operating Expenditures

9,871,586

9,848,908

10,146,993

10,433,618

10,716,339

Interfund Transfer Transfer to Funds

Accumulated Surplus

Note: Totals may not add due to rounding.

Page 576

2023 FINANCIAL PLAN

CITY OF KELOWNA

Infrastructure Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

0 (42,063,900) (35,744,924) (6,318,976) (16,507,388) 0 (12,569,900) (1,333,400) (2,604,088) (3,278,271) (508,971) 0 (2,769,300)

0 (42,874,993) (36,431,417) (6,443,576) (15,896,470) 0 (12,754,320) (1,239,233) (1,902,917) (634,131) (76,071) 0 (558,060)

0 (43,603,828) (37,033,188) (6,570,640) (16,118,678) 0 (12,957,113) (1,263,328) (1,898,237) (577,131) (76,071) 0 (501,060)

0 (44,444,752) (37,744,536) (6,700,216) (16,386,085) 0 (13,163,131) (1,287,893) (1,935,061) (577,131) (76,071) 0 (501,060)

0 (45,292,737) (38,460,928) (6,831,809) (16,641,625) 0 (13,356,629) (1,312,730) (1,972,266) (577,131) (76,071) 0 (501,060)

Total Revenue

(61,849,559)

(59,405,594)

(60,299,637)

(61,407,968)

(62,511,493)

Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services

21,963,444 7,611,612 16,562,106 40,409,823

23,105,293 8,051,595 13,852,280 41,702,436

23,950,102 8,425,812 14,348,850 43,151,287

24,809,911 8,725,426 14,725,767 44,700,418

25,670,815 9,025,488 15,106,420 46,251,523

Debt Interest

Debt Principal

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

3,662,669 3,662,669 0 11,918,977 10,991,362 0 927,615

3,450,269 3,450,269 0 12,621,952 11,690,537 0 931,415

2,515,269 2,515,269 0 13,545,835 12,610,130 0 935,705

2,515,269 2,515,269 0 13,509,163 12,568,653 0 940,510

2,515,269 2,515,269 0 13,485,188 12,540,300 0 944,888

Total Expenditures

102,128,631

102,783,825

105,937,155

108,985,954

112,054,703

Net Operating Expenditures

40,279,072

43,378,231

45,637,518

47,577,986

49,543,210

Revenue

Note: Totals may not add due to rounding.

Page 577

2023 FINANCIAL PLAN

CITY OF KELOWNA

Active Living & Culture Revenues and Expenditures by Year

2023

2024

2025

2026

2027

(5,589,740)

(5,800,771)

(6,009,019)

(6,224,743)

(6,440,741)

(4,027,290)

(4,182,229)

(4,332,371)

(4,487,903)

(4,643,633)

Revenue Parcel Tax Fees and Charges Sales of Service Other

(1,562,450)

(1,618,542)

(1,676,648)

(1,736,840)

(1,797,108)

Other Revenue

(660,300)

(188,904)

(192,682)

(196,536)

(200,467)

Interest

Grants

(585,100)

(112,200)

(114,444)

(116,733)

(119,068)

Other

Services to Other Governments

(75,200)

(76,704)

(78,238)

(79,803)

(81,399)

(1,249,800)

Special (Stat Reserve) Funds

(20,000)

Development Cost Charges Accumulated Surplus

0 (1,229,800)

0 -

0 0

(7,499,840)

(5,989,675)

(6,201,701)

(6,421,279)

(6,641,208)

Salaries and Wages

7,299,530

7,603,713

7,969,187

8,255,281

8,541,739

Internal Equipment

194,400

198,288

202,254

206,299

210,425

Material and Other

4,693,955

3,359,184

3,446,036

3,514,957

3,585,256

Contract Services

5,639,706

5,253,108

5,423,091

5,531,553

5,642,184

Debt Interest

Debt Principal

Internal Allocations

Interdepartment Transfer

Interfund Transfer

1,189,404

1,175,904

User Fees

Interdepartment Transfer Interfund Transfer Transfers from Funds

Total Revenue Expenditures

Transfer to Funds Special (Stat Reserve) Funds

1,189,404

1,175,904

Total Expenditures

19,016,995

17,590,197

18,216,472

18,683,994

19,155,508

Net Operating Expenditures

11,517,155

11,600,522

12,014,771

12,262,715

12,514,300

Development Cost Charges Accumulated Surplus

Note: Totals may not add due to rounding.

Page 578

2023 FINANCIAL PLAN

CITY OF KELOWNA

Corporate & Protective Services - Corporate Services Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Parcel Tax Fees and Charges Sales of Service Other User Fees Other Revenue Interest Grants Services to Other Governments Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

0 (61,000) (5,000) 0 (56,000) (325,760) 0 0 0 (325,760) (572,840) 0 0 (572,840)

0 (62,220) (5,100) 0 (57,120) (332,275) 0 0 0 (332,275) (128,800) 0 0 (128,800)

0 (63,464) (5,202) 0 (58,262) (338,921) 0 0 0 (338,921) 0 0 0 0

0 (64,733) (5,306) 0 (59,427) (345,699) 0 0 0 (345,699) 0 0 0 0

0 (66,028) (5,412) 0 (60,616) (352,613) 0 0 0 (352,613) 0 0 0 0

Total Revenue

(959,600)

(523,295)

(402,385)

(410,432)

(418,641)

Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services Debt Interest

3,471,881 900 3,536,127 1,402,636 0

4,844,438 918 3,345,916 1,430,689 0

6,707,431 936 3,374,006 1,459,302 0

8,824,745 955 3,441,486 1,488,488 0

11,071,908 974 3,510,316 1,518,258 0

Debt Principal

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

0 0 0 0 0 0 0

Total Expenditures

8,411,544

9,621,961

11,541,675

13,755,674

16,101,456

Net Operating Expenditures

7,451,944

9,098,666

11,139,290

13,345,242

15,682,815

Revenue

Note: Totals may not add due to rounding.

Page 579

2023 FINANCIAL PLAN

CITY OF KELOWNA

Corporate & Protective Services - Community Safety Revenues and Expenditures by Year

2023

2024

2025

2026

2027

(934,241)

(957,603)

(981,600)

(1,006,251)

(1,031,183)

Sale of Service

(797,154)

(816,811)

(836,994)

(857,719)

(878,690)

User Fees

(137,087)

(140,792)

(144,606)

(148,532)

(152,493)

Other Revenue

(7,402,387)

(5,917,313)

(6,035,659)

(6,156,373)

(6,279,500)

Interest

Grants

(5,778,900)

(4,261,356)

(4,346,583)

(4,433,515)

(4,522,185)

Services to Other Governments

(1,393,292)

(1,421,158)

(1,449,581)

(1,478,573)

(1,508,144)

(230,195)

(234,799)

(239,495)

(244,285)

(249,171)

(9,172,900)

(147,220)

Special (Stat Reserve) Funds

(300,000)

Development Cost Charges

(8,872,900)

(147,220)

(17,509,528)

(7,022,136)

(7,164,479)

(7,309,844)

(7,457,903)

Salaries and Wages

11,620,014

11,843,407

12,268,586

12,709,028

13,150,031

Internal Equipment

148,466

151,435

154,464

157,553

160,704

Material and Other

3,504,173

1,252,236

1,198,624

1,222,596

1,247,048

Contract Services

55,030,524

49,710,930

51,494,899

53,342,899

55,193,269

Debt Interest

Debt Principal

Internal Allocations

Interdepartment Transfer

Interfund Transfer

Special (Stat Reserve) Funds

Development Cost Charges

Accumulated Surplus

Total Expenditures

70,303,177

62,958,008

65,116,573

67,432,076

69,751,052

Net Operating Expenditures

52,793,649

55,935,872

57,952,094

60,122,232

62,293,149

Revenue Parcel Tax Fees and Charges

Interdepartment Transfer Transfers from Funds

Accumulated Surplus Total Revenue Expenditures

Transfer to Funds

Note: Totals may not add due to rounding.

Page 580

2023 FINANCIAL PLAN

CITY OF KELOWNA

Corporate & Protective Services - Fire Department Revenues and Expenditures by Year

2023

2024

2025

2026

2027

0 (2,760,588) (770,622) (1,989,966) (436,612) 0 0 (436,612) 0 (150,000) 0 0 (150,000)

0 (2,815,799) (786,034) (2,029,765) (445,344) 0 0 (445,344) 0 0 0 0 0

0 (2,872,116) (801,755) (2,070,361) (454,251) 0 0 (454,251) 0 0 0 0 0

0 (2,929,558) (817,790) (2,111,768) (463,336) 0 0 (463,336) 0 0 0 0 0

0 (2,988,149) (834,146) (2,154,003) (472,603) 0 0 (472,603) 0 0 0 0 0

Total Revenue

(3,347,200)

(3,261,143)

(3,326,367)

(3,392,894)

(3,460,752)

Salaries and Wages

22,337,994

23,276,874

24,162,734

25,030,176

25,898,723

Internal Equipment

176,743

180,278

183,883

187,561

191,312

Material and Other

1,548,656

1,431,306

1,461,033

1,490,254

1,520,059

Contract Services

200,691

204,705

208,799

212,975

217,235

Debt Interest

Debt Principal

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

16,000 16,000 0 1,734,832 1,255,000 0 479,832

16,000 16,000 0 1,629,832 1,150,000 0 479,832

16,000 16,000 0 1,379,832 900,000 0 479,832

Total Expenditures

26,014,916

26,738,995

27,412,281

28,316,798

29,223,161

Net Operating Expenditures

22,667,716

23,477,852

24,085,914

24,923,904

25,762,409

Revenue

Expenditures

Note: Totals may not add due to rounding.

Page 581

2023 FINANCIAL PLAN

CITY OF KELOWNA

Corporate Strategic Services Revenues and Expenditures by Year

2023

2024

2025

2026

2027

0 (110,400) (2,400) (108,000) (165,932) 0 (52,900) 0 (113,032) (253,900) 0 0 (253,900)

0 (112,608) (2,448) (110,160) (115,293) 0 0 0 (115,293) 0 0 0 0

0 (114,860) (2,497) (112,363) (117,598) 0 0 0 (117,598) 0 0 0 0

0 (117,157) (2,547) (114,610) (119,950) 0 0 0 (119,950) 0 0 0 0

0 (119,500) (2,598) (116,902) (122,349) 0 0 0 (122,349) 0 0 0 0

Total Revenue

(530,232)

(227,901)

(232,458)

(237,107)

(241,849)

Salaries and Wages

6,456,867

6,750,926

6,993,284

7,244,343

7,495,722

Internal Equipment

6,500

6,630

6,763

6,898

7,036

Material and Other

4,056,709

4,092,305

4,229,075

4,313,657

4,399,930

Contract Services

36,000

36,720

37,454

38,203

38,967

Debt Interest

Debt Principal

231,600

RCMP CONTRACT

0 0 0 0 152,520 0 0 152,520

0 0 0 152,520 0 0 152,520

Total Expenditures

10,708,596

11,270,701

11,650,696

11,987,221

12,325,775

Net Operating Expenditures

10,178,364

11,042,800

11,418,238

11,750,114

12,083,926

Revenue

Expenditures

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

Note: Totals may not add due to rounding.

Page 582

2023 FINANCIAL PLAN

CITY OF KELOWNA

Financial Services Revenues and Expenditures by Year

2023

2024

2025

2026

2027

(536,087)

(555,333)

(575,269)

(555,333)

(554,689)

(536,087) 0

(555,333) 0

(575,269) 0

(555,333) 0

(554,689) 0

Other Revenue

(1,094,491)

(1,038,345)

(1,063,055)

(1,089,929)

(1,122,940)

Interest

Grants

Revenue Parcel Tax Fees and Charges Sales of Service Other User Fees

Other

Services to Other Governments

(1,094,491)

(1,038,345)

(1,063,055)

(1,089,929)

(1,122,940)

(498,500)

Special (Stat Reserve) Funds

Development Cost Charges

(498,500)

(2,129,078)

(1,593,678)

(1,638,324)

(1,645,262)

(1,677,629)

Salaries and Wages

7,529,046

7,799,339

8,079,335

8,369,383

8,659,801

Internal Equipment

5,880

5,998

6,118

6,240

6,365

Material and Other

1,328,728

779,821

796,017

811,937

828,176

Contract Services

8,500

8,670

8,843

9,020

9,200

Debt Interest

Debt Principal

RCMP CONTRACT

Internal Allocations

54,978

Special (Stat Reserve) Funds

Development Cost Charges

Accumulated Surplus

Total Expenditures

8,927,132

8,648,806

8,945,291

9,251,558

9,558,520

Net Operating Expenditures

6,798,054

7,055,128

7,306,967

7,606,296

7,880,891

Interdepartment Transfer Interfund Transfer Transfers from Funds

Accumulated Surplus Total Revenue Expenditures

Interdepartment Transfer Interfund Transfer Transfer to Funds

Note: Totals may not add due to rounding.

Page 583

2023 FINANCIAL PLAN

CITY OF KELOWNA

Financial Services - Debt & Other Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Library Requisition

(7,325,200)

(7,471,704)

(7,621,138)

(7,773,561)

(7,929,032)

(142,448) (608,265) (525,000) (83,265) (12,759,751) (1,910,490) 0 (5,664,123) (5,185,138) (1,738,318) (942,918) (795,400) 0

(142,448) (608,177) (525,000) (83,177) (13,014,946) (1,948,700) 0 (5,777,405) (5,288,841) (2,523,316) (1,727,916) (795,400) 0

(142,448) (608,177) (525,000) (83,177) (13,275,246) (1,987,674) 0 (5,892,954) (5,394,618) (4,738,316) (3,942,916) (795,400) 0

(142,448) (608,177) (525,000) (83,177) (12,605,750) (2,027,427) 0 (6,010,813) (4,567,510) (5,738,316) (4,942,916) (795,400) 0

(142,448) (608,177) (525,000) (83,177) (12,857,865) (2,067,976) 0 (6,131,029) (4,658,860) (5,738,316) (4,942,916) (795,400) 0

Total Revenue

(22,573,982)

(23,760,591)

(26,385,325)

(26,868,252)

(27,275,838)

Expenditures Salaries and Wages

1,427,896

1,479,157

1,532,259

1,587,267

1,642,345

Internal Equipment

Material and Other

9,528,362

9,718,929

9,913,308

10,111,574

10,313,805

Contract Services

476,000

493,088

510,198

Debt Interest

2,838,890

4,586,506

7,841,954

10,519,185

11,688,491

Debt Principal

3,948,472

3,948,467

5,606,386

7,484,890

8,800,723

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

213,000 213,000 0 16,512,023 15,240,623 0 1,271,400

213,000 213,000 0 15,711,623 14,440,223 0 1,271,400

213,000 213,000 0 15,741,123 14,469,723 0 1,271,400

213,000 213,000 0 14,828,703 14,492,303 0 336,400

213,000 213,000 0 14,847,670 14,511,270 0 336,400

Total Expenditures

34,468,643

36,133,682

41,324,030

45,237,707

48,016,232

Net Operating Expenditures

11,894,661

12,373,091

14,938,705

18,369,455

20,740,395

Revenue

Note: Totals may not add due to rounding.

Page 584

2023 FINANCIAL PLAN

CITY OF KELOWNA

Operating Summary ‐ Airport & Utility Funds Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Revenue Parcel Tax

(3,291,225)

(3,244,478)

(3,083,644)

(2,736,281)

(2,501,319)

Fees and Charges

(91,177,400)

(91,844,577)

(97,638,045)

(101,339,079)

(103,577,037)

(88,815,650)

(91,697,147)

(97,489,666)

(101,189,732)

(103,426,703)

Sales of Service Other

(2,361,750)

(147,430)

(148,379)

(149,347)

(150,334)

Other Revenue

(3,198,246)

(9,175,787)

(8,945,437)

(5,651,718)

(5,668,776)

Interest

(847,812)

(2,577,593)

(2,954,780)

(2,875,525)

(2,850,193)

Grants

(277,839)

(4,027,840)

(3,378,679)

(121,996)

Other

(584,854)

(594,153)

(602,887)

(611,749)

(1,168,535)

(1,096,240)

(1,128,565)

(1,162,050)

(1,195,578) (20,212,068)

User Fees

Interdepartment Transfer

(7,402,110)

(3,948,590)

(6,630,040)

(6,837,437)

Special (Stat Reserve) Funds

Development Cost Charges

(7,402,110)

(3,948,590)

(6,630,040)

(6,837,437)

(20,212,068)

(105,068,981)

(108,213,433)

(116,297,167)

(116,564,516)

(131,959,200)

Salaries and Wages

16,934,208

18,564,682

19,133,476

20,035,512

20,651,753

Internal Equipment

1,944,067

1,995,698

2,035,612

2,076,324

2,117,850

Material and Other

22,988,342

15,088,886

16,275,181

18,149,884

18,696,242

Contract Services Debt Interest Debt Principal Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

1,966,270 1,141,947 2,970,112 6,728,500 5,487,554 1,240,946 38,671,835 198,460 0 38,473,375

8,545,939 1,268,230 2,960,828 5,531,238 3,128,695 2,402,543 42,340,783 198,460 0 42,142,323

8,652,407 2,215,050 3,457,251 5,756,265 3,088,695 2,667,570 40,971,718 198,460 0 40,773,258

8,839,521 3,060,629 5,853,064 5,839,756 3,088,695 2,751,061 35,073,726 198,460 0 34,875,266

8,934,080 4,095,317 5,528,774 5,985,068 3,088,695 2,896,373 35,818,816 198,460 0 35,620,356

Total Expenditures

93,345,281

96,296,284

98,496,960

98,928,416

101,827,900

Net Operating Expenditures Note: Totals may not add due to rounding. 2023 Operating revenues by Airport & Utility funds

(11,723,700)

(11,917,148)

(17,800,207)

(17,636,100)

(30,131,301)

Transfers from Funds

Accumulated Surplus Total Revenue Expenditures

2023 Operating expenditure by Airport & Utility funds

Airport 55%

Airport 60%

Wastewater 24%

Wastewater 20%

Water 21%

Water 20%

Total = $105.1M

Total = $93.3M

Page 585

2023 FINANCIAL PLAN

CITY OF KELOWNA

Airport Fund Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Other Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

0 (50,939,660) (48,624,410) (2,315,250) (247,730) (132,230) (115,500) 0 0 (5,703,810) 0 0 (5,703,810)

0 (51,499,134) (51,499,134) 0 (5,087,805) (1,222,305) (3,865,500) 0 0 (2,709,141) 0 0 (2,709,141)

0 (55,275,173) (55,275,173) 0 (4,757,485) (1,491,985) (3,265,500) 0 0 (4,582,115) 0 0 (4,582,115)

0 (56,862,720) (56,862,720) 0 (1,529,462) (1,413,962) (115,500) 0 0 (5,773,566) 0 0 (5,773,566)

0 (56,862,720) (56,862,720) 0 (1,529,462) (1,413,962) (115,500) 0 0 (5,218,091) 0 0 (5,218,091)

Total Revenue

(56,891,200)

(59,296,081)

(64,614,774)

(64,165,749)

(63,610,273)

Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services

6,732,001 32,350 13,027,080 1,141,860

7,889,000 0 5,101,485 7,691,933

8,074,000 0 5,909,843 7,767,742

8,586,000 0 7,442,430 7,923,097

8,804,943 0 7,617,240 8,124,856

Debt Interest Debt Principal

584,250 1,905,288

711,650 1,897,191

1,439,650 2,500,809

1,788,500 4,707,124

1,568,000 4,147,087

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

1,733,489 1,685,159 48,330 31,734,882 0 0 31,734,882

2,362,727 0 2,362,727 33,642,094 0 0 33,642,094

2,627,754 0 2,627,754 36,294,976 0 0 36,294,976

2,711,245 0 2,711,245 31,007,353 0 0 31,007,353

2,856,557 0 2,856,557 30,491,590 0 0 30,491,590

Total Expenditures

56,891,200

59,296,080

64,614,774

64,165,748

63,610,273

Surplus/(Deficit) (Included Above) 26,031,072 30,932,953 Note: Totals may not add due to rounding. The Surplus/(Deficit) is the overall surplus/(deficit) budgeted for the fund during the year.

31,712,861

25,233,787

25,273,499

Revenue

Net Operating Expenditures

Page 586

2023 FINANCIAL PLAN

CITY OF KELOWNA

Water Fund Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Revenue Parcel Tax Fees and Charges Sales of Service User Fees Other Revenue Interest Grants Other Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

(2,051,046) (18,649,740) (18,603,240) (46,500) (665,765) (401,440) 0 0 (264,325) (1,197,800) 0 0 (1,197,800)

(2,256,609) (18,375,982) (18,328,552) (47,430) (841,125) (60,446) 0 (584,854) (195,825) (880,749) 0 0 (880,749)

(2,281,482) (19,621,419) (19,573,040) (48,379) (851,385) (61,407) 0 (594,153) (195,825) (1,689,225) 0 0 (1,689,225)

(2,306,008) (20,935,663) (20,886,316) (49,347) (861,022) (62,310) 0 (602,887) (195,825) 0 0 0 0

(2,330,895) (22,346,164) (22,295,830) (50,334) (870,800) (63,226) 0 (611,749) (195,825) 0 0 0 0

Total Revenue

(22,564,351)

(22,354,465)

(24,443,511)

(24,102,693)

(25,547,859)

4,741,220 737,767 5,234,697 155,500

4,962,448 791,384 5,135,789 161,082

5,140,600 807,212 5,334,416 166,865

5,318,148 823,356 5,495,922 172,855

5,502,688 839,823 5,686,630 39,853

Debt Interest

275,752

274,635

274,106

Debt Principal

358,899

357,714

357,003

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges

2,818,290 2,028,974 789,316 3,882,226 0 0

1,443,090 1,403,274 39,816 3,543,336 0 0

1,423,090 1,383,274 39,816 3,535,453 0 0

1,423,090 1,383,274 39,816 3,671,913 0 0

1,423,090 1,383,274 39,816 4,932,766 0 0

Accumulated Surplus

3,882,226

3,543,336

3,535,453

3,671,913

4,932,766

Total Expenditures

18,204,351

16,669,478

17,038,745

17,536,393

19,055,959

Net Operating Expenditures

(4,360,000)

(5,684,987)

(7,404,766)

(6,566,300)

(6,491,900)

386,186

(872,249)

(1,689,225)

138,855

1,399,164

Expenditures Salaries and Wages Internal Equipment Material and Other Contract Services

Surplus/(Deficit) (Included Above) Note: Totals may not add due to rounding.

The Net Operating Expenditures total is the amount of funding required for capital expenditures in the specific year. The Surplus/(Deficit) is the overall surplus/(deficit) budgeted for the fund during the year.

Page 587

2023 FINANCIAL PLAN

CITY OF KELOWNA

Wastewater Fund Revenues and Expenditures by Year

2023

2024

2025

2026

2027

Revenue Parcel Tax Fees and Charges Sales of Service Other User Fees Other Revenue Interest Grants Other Interdepartment Transfer Transfers from Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

(1,240,179) (21,588,000) (21,588,000) 0 0 (2,284,751) (314,142) (162,339) 0 (904,210) (500,500) 0 0 (500,500)

(987,869) (21,969,461) (21,869,461) 0 (100,000) (3,246,857) (1,294,842) (162,340) 0 (900,415) (358,700) 0 0 (358,700)

(802,162) (22,741,453) (22,641,453) 0 (100,000) (3,336,567) (1,401,388) (113,179) 0 (932,740) (358,700) 0 0 (358,700)

(430,273) (23,540,696) (23,440,696) 0 (100,000) (3,261,234) (1,399,253) (6,496) 0 (966,225) (1,063,871) 0 0 (1,063,871)

(170,424) (24,368,153) (24,268,153) 0 (100,000) (3,268,514) (1,373,005) (6,496) 0 (999,753) (14,993,977) 0 0 (14,993,977)

Total Revenue

(25,613,430)

(26,562,887)

(27,238,882)

(28,296,074)

(42,801,068)

Salaries and Wages

5,460,987

5,713,234

5,918,876

6,131,364

6,344,122

Internal Equipment

1,173,950

1,204,314

1,228,400

1,252,968

1,278,027

Material and Other

4,726,565

4,851,612

5,030,922

5,211,532

5,392,372

Contract Services

668,910

692,924

717,800

743,569

769,371

Debt Interest

281,945

501,294

998,023

2,253,211

Expenditures

705,925

705,923

599,439

788,937

1,024,683

Internal Allocations Interdepartment Transfer Interfund Transfer Transfer to Funds Special (Stat Reserve) Funds Development Cost Charges Accumulated Surplus

2,176,721 1,773,421 403,300 3,054,727 198,460 0 2,856,267

1,725,421 1,725,421 0 5,155,353 198,460 0 4,956,893

1,705,421 1,705,421 0 1,141,289 198,460 0 942,829

1,705,421 1,705,421 0 394,460 198,460 0 196,000

Total Expenditures

18,249,730

20,330,727

16,843,442

17,226,274

19,161,668

Net Operating Expenditures

(7,363,700)

(6,232,160)

(10,395,440)

(11,069,800)

(23,639,400)

2,660,267

4,760,893

746,829

(705,171)

(13,930,106)

Debt Principal

Surplus/(Deficit) (Included Above) Note: Totals may not add due to rounding.

Page 588

2023 FINANCIAL PLAN

CITY OF KELOWNA

Capital Summary - General Fund Cost Centre

2023

2024

2025

2026

2027

300

Real Estate & Parking

4,279,300

4,878,812

4,726,924

6,345,454

2,908,048

301

Buildings

18,591,100

183,144,959

60,996,272

3,562,238

3,139,229

302

Parks

53,714,100

24,194,884

29,427,687

24,641,418

27,843,913

304

Transportation

58,689,700

19,337,308

25,148,311

27,579,738

37,262,043

305

Solid Waste

17,340,200

13,510,000

10,360,000

4,460,000

2,910,000

306

Storm Drainage

16,840,200

7,161,737

7,524,195

7,351,015

1,504,350

308

Information Services

4,316,700

2,992,408

1,147,175

998,617

794,024

310

Vehicle & Mobile Equipment

8,723,300

4,546,300

5,167,400

5,279,000

5,177,800

311

Fire

3,927,600

823,768

357,141

151,648

3,884,776

186,422,200

260,590,176

144,855,105

80,369,128

85,424,183

Funding Sources: General Taxation

15,131,800

16,255,000

17,453,000

18,727,000

19,981,000

Surplus/Reserves

100,388,900

58,289,701

41,650,278

30,637,378

29,732,181

Development Cost Charges

51,664,600

20,873,542

29,966,849

25,924,685

33,497,763

Debenture/Borrowing

8,507,400

161,039,504

50,989,600

Federal/Provincial Funding*

8,185,700

2,337,049

2,825,678

2,788,745

272,000

Dev/Comm/Other Contributions

1,391,000

877,480

1,200,100

1,424,920

1,352,839

Utility Revenue

1,152,800

917,900

769,600

866,400

588,400

186,422,200

260,590,176

144,855,105

80,369,128

85,424,183

Total Five-Year Capital Program

757,660,792

* 10-Year Capital Plan only includes confirmed Federal and Provincial Funding Note: Totals may not add due to rounding.

General Fund Capital Funding 2023 to 2027 The below graph summarizes the overall capital plan funding over the next five years.

Surplus/Reserves 34% Debenture/Borrowing 29% Development Cost Charges 21% General Taxation 12% Federal/Provincial Funding 2% Dev/Comm/Other Contributions 1% Utility Revenue 1%

Total = $757.7 M

Page 589

2023 FINANCIAL PLAN

CITY OF KELOWNA

Capital Funding Summary by Cost Centre General Fund 2023 to 2027 - Taxation

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

Real Estate & Parking

Cost Centre

Buildings

Parks

Transportation

Storm Drainage

Total $

Information Services

General Fund Taxation

300

Real Estate & Parking

23,138,538

5,828,838

301

Buildings

269,433,798

12,978,011

302

Parks

159,822,002

27,523,059

304

Transportation

168,017,100

29,573,111

305

Solid Waste

48,580,200

306

Storm Drainage

40,381,497

6,877,545

308

Information Services

10,248,924

4,657,937

310

Vehicle & Mobile Equipment

28,893,800

109,300

311

Fire

9,144,933

757,660,792

100.0

87,547,800

100.0

Total Five-Year Program Note: Totals may not add due to rounding.

Page 590

2023 FINANCIAL PLAN

CITY OF KELOWNA

Real Estate & Parking Capital Plan No. Plan Description L1

General Land Annual allocation for the purchase of land for general purposes. This may allow for acquiring properties at less than fair market value, creating land assembly opportunities, creating a revenue generating land bank and providing trade potential.

Road and Sidewalk Land Acquisition To fund the purchase of land required for the widening of roads to accommodate road improvements and/or sidewalks.

Parking Infrastructure Funding to renew parking infrastructure and to invest in efficient parking management technology.

Strategic Land Redevelopment Funding to redevelop City owned land to improve public benefit and encourage economic development.

Plan No. Plan Description L1 L2 L3 L4

General Land Road and Sidewalk Land Acquisition Parking Infrastructure Strategic Land Redevelopment

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 2,109,400 25,000 1,894,900 250,000 4,279,300

2024 2,445,253 142,559 2,041,000 250,000 4,878,812

2025 2,489,058 127,866 1,860,000 250,000 4,726,924

2026 2,256,866 68,588 3,770,000 250,000 6,345,454

2027 Five-Year Total 2,283,840 11,584,417 51,208 415,221 323,000 9,888,900 250,000 1,250,000 2,908,048 23,138,538

983,600 3,295,700 0 0 0 0 0 4,279,300

1,332,812 3,291,000 0 0 0 255,000 0 4,878,812

1,361,924 3,110,000 0 0 0 255,000 0 4,726,924

1,070,454 5,020,000 0 0 0 255,000 0 6,345,454

1,080,048 1,573,000 0 0 0 255,000 0 2,908,048

5,828,838 16,289,700 0 0 0 1,020,000 0 23,138,538

Note: Totals may not add due to rounding.

Page 591

2023 FINANCIAL PLAN

CITY OF KELOWNA

Building Capital Plan No. Plan Description B1 Parks and Recreation Buildings An allocation for the development of new Parks and Recreation buildings as well as the redevelopment and expansion of existing ones in various locations throughout the City to keep pace with the increasing demand due to population growth and emerging trends. This category includes Parks Administration, Parks washrooms, field houses, arenas and pools. B2 Community and Cultural Buildings An allocation for the development of new community and cultural buildings as well as the redevelopment, renewal and expansion of existing ones. This category includes the theaters, libraries, senior centres, community halls, art gallery, museums and the RCA. B3

Civic/Protective Service Buildings Funding to support renewal, replacement and cost of new Protective Services buildings which include firehalls, police stations and City Hall.

Transportation and Public Works Buildings Funding to support renewal, replacement and new construction of new Transportation and Public Works Buildings throughout the City to keep pace increasing demand due to population growth and emerging trends. This category includes Public Works Yard, parkades, cemetery and WWTF administration. Heritage Buildings

Funding for the restoration of City-owned heritage buildings. B6

Capital Opportunities and Partnerships Funding for special projects including partnerships with the School District on community space as part of new school construction as well as funding to allow for capital projects that were not envisioned during the plan development, including partnerships.

Building Renewal, Rehabilitation & Infrastructure Upgrades An allocation for major repairs or replacement of existing building infrastructure such as roofs, windows, mechanical systems, lighting, electrical and water services, hazardous material abatement, and other major maintenance items.

Plan No. Plan Description B1 Parks and Recreation Buildings B2 Community and Cultural Buildings B3 Civic/Protective Service Buildings B4 Transportation and Public Works Buildings B5 Heritage Buildings B6 Capital Opportunities and Partnerships B7 Building Renewal, Rehab. & Infra. Upgrades

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 6,475,800 1,100,800 2,939,400 130,000 0 1,000,000 6,945,100 18,591,100

2024 2,427,600 166,045,354 12,348,800 0 0 0 2,323,205 183,144,959

2025 36,762,400 13,695,200 8,092,000 0 0 0 2,446,672 60,996,272

2026 1,072,250 0 0 0 0 0 2,489,988 3,562,238

2027 Five-Year Total 780,000 47,518,050 0 180,841,354 0 23,380,200 0 130,000 0 0 0 1,000,000 2,359,229 16,564,194 3,139,229 269,433,798

2,891,000 15,700,100 0 0 0 0 0 18,591,100

2,942,004 19,163,451 0 161,039,504 0 0 0 183,144,959

2,723,405 7,283,267 0 50,989,600 0 0 0 60,996,272

2,251,305 1,310,933 0 0 0 0 0 3,562,238

2,170,297 968,932 0 0 0 0 0 3,139,229

12,978,011 44,426,683 0 212,029,104 0 0 0 269,433,798

Note: Totals may not add due to rounding.

Page 592

2023 FINANCIAL PLAN

CITY OF KELOWNA

Parks Capital Plan No. Plan Description P1

DCC Parkland Acquisition Park acquisition program based on the residential growth in the City for the purchase of parkland (Neighbourhood, Community, Recreation and City-wide level parks) under the Development Cost Charge program (DCC). Funding is primarily allocated from developer revenue with general taxation covering both the assist factor and infill/conversion units and Land Use Contracts not required to pay DCC's.

Natural Area Parkland Acquisition Park acquisition program for the purchase of Natural Areas not attributed to the DCC program.

Neighbourhood Park Development An allocation to cover the development of neighbourhood level parks including off-site costs related to park development, but does not include buildings.

Community Park Development An allocation to cover the development of community level parks including off-site costs related to park development, but does not include buildings.

Recreation Park Development An allocation to cover the development of recreation level parks including off-site costs related to park development, but does not include buildings.

City-wide Park Development An allocation to cover the development of city-wide level parks including off-site costs related to park development, but does not include buildings.

Linear/Natural Area Park Development An allocation to cover the development of natural areas and linear parks/trails.

Park Renewal, Rehabilitation & Infrastructure Upgrades An allocation for major repairs or replacement of existing park infrastructure such as sidewalks, hard-surfaced trails, parking lots, sport courts, lighting, electrical and water services, irrigation, fencing, bridges and other major structures.

Capital Opportunities Partnership An allocation for various strategic investments into the park and open space system as well as funding to allow for capital projects that were not envisioned during the plan development, including partnerships.

P10

Urban Streetscape and Urban Centres Development and Renewal An allocation for urban centre improvements, enhanced streetscapes and walkways, and other urban spaces that are not defined parks.

Plan No. Plan Description P1 DCC Parkland Acquisition P2 Natural Area Parkland Acquisition P3 Neighbourhood Park Development P4 Community Park Development P5 Recreation Park Development P6 City-wide Park Development P7 Linear/Natural Area Park Development P8 Park Renew., Rehab. & Upgrades P9 Capital Opportunities Partnership P10 Urban Streetsc. and Centres Dev & Renew

2023 19,656,300 0 1,144,800 14,168,600 11,813,000 2,072,600 2,652,000 1,979,500 192,400 34,900 53,714,100

2024 16,936,291 0 2,702,604 0 197,689 3,082,900 292,400 983,000 0 0 24,194,884

2025 12,802,000 0 1,946,193 0 2,886,246 8,584,398 1,713,850 1,495,000 0 0 29,427,687

2026 16,936,290 0 2,299,737 0 0 3,985,491 218,900 1,201,000 0 0 24,641,418

2027 Five-Year Total 12,802,000 79,132,881 0 0 1,902,000 9,995,334 0 14,168,600 4,839,376 19,736,311 5,060,637 22,786,026 218,900 5,096,050 3,021,000 8,679,500 0 192,400 0 34,900 27,843,913 159,822,002

5,980,900 12,466,000 34,193,000 0 1,074,200 0 0 53,714,100

4,804,485 2,578,047 16,812,352 0 0 0 0 24,194,884

5,160,279 1,446,755 22,317,553 0 0 503,100 0 29,427,687

4,659,581 2,028,657 17,953,180 0 0 0 0 24,641,418

6,917,814 2,795,628 18,130,471 0 0 0 0 27,843,913

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

27,523,059 21,315,087 109,406,556 0 1,074,200 503,100 0 159,822,002

Note: Totals may not add due to rounding.

Page 593

2023 FINANCIAL PLAN

CITY OF KELOWNA

Transportation Capital Plan No. Plan Description T1

DCC Roads Allocation for design, land and construction costs associated with DCC Road projects.

DCC Roads - Active Transportation Allocation for design, land and construction costs associated with DCC Active Transportation projects. General taxation to cover 77.7% Assist. Non-DCC Roads

T5 T6 T7

Infrastructure upgrades which are not part of the 20 Year Servicing Plan and Financing Strategy (collectors and local roads) and City initiated projects to upgrade streets to full urban standards including drainage, fillet paving, sidewalks and landscaped boulevards. Transportation System Renewal Allocation for overlay and other processes, including micro asphalting, for rehabilitation of City roads. Also includes renewal of curb and gutter, bike paths, retaining walls, handrails and stairways Bicycle Network Allocation for bike network system additions and improvements. Sidewalk Network Allocation required to complete the Non-DCC portion of the sidewalk network. Safety and Operational Improvements Allocation to cover field reviews and capital improvements for safety improvements or to improve operational efficiency. This will include projects such as left turn bays, traffic control changes, safety barriers, signs, markings, handicap access improvements and retrofit medians. Traffic Control Infrastructure This program is for construction of new traffic signal control infrastructure that is not part of the DCC program. This includes new traffic signals and pedestrian activated traffic signals, installation of new communication for the traffic signals system and where new development occurs install conduit for future traffic signals. Program also includes renewal of existing traffic signals. Transit Facilities Construction of new and renewal of existing transit facilities, bus pullouts and shelters.

Plan No. Plan Description T1 T2 T3 T4 T5 T6 T7 T8 T9

Development Cost Charge Roads DCC Roads - Active Transportation Non-DCC Roads Transportation System Renewal Bicycle Network Sidewalk Network Safety and Operational Improvements Traffic Control Infrastructure Transit Facilities

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 23,704,800 15,183,700 2,527,600 6,343,800 1,634,000 5,313,200 1,229,200 758,000 1,995,400 58,689,700

2024 3,860,068 4,894,800 1,120,000 4,962,440 580,000 3,200,000 410,000 0 310,000 19,337,308

2025 9,694,428 2,620,000 970,000 9,400,883 818,000 975,000 370,000 0 300,000 25,148,311

2026 9,384,818 6,364,200 970,000 6,488,720 1,300,000 1,075,000 430,000 0 1,567,000 27,579,738

2027 Five-Year Total 20,395,885 67,039,999 4,747,105 33,809,805 770,000 6,357,600 6,409,253 33,605,096 910,000 5,242,000 1,075,000 11,638,200 380,000 2,819,200 0 758,000 2,574,800 6,747,200 37,262,043 168,017,100

3,382,300 27,193,500 17,471,600 7,117,800 2,263,200 1,261,300 0 58,689,700

4,291,987 10,411,651 4,061,190 0 0 572,480 0 19,337,308

4,728,619 12,378,396 7,649,296 0 0 392,000 0 25,148,311

8,939,070 9,549,243 7,971,505 0 0 1,119,920 0 27,579,738

8,231,135 12,615,777 15,367,292 0 0 1,047,839 0 37,262,043

29,573,111 72,148,567 52,520,883 7,117,800 2,263,200 4,393,539 0 168,017,100

Note: Totals may not add due to rounding.

Page 594

2023 FINANCIAL PLAN

CITY OF KELOWNA

Solid Waste Capital Plan No. Plan Description SW1 Equipment Funding for new equipment and replacement of existing equipment. SW2

Site Improvement Funding for site improvements like buildings, roads, landscaping and fencing.

SW3

Gas Management Required for design, installation and extension of gas management system and utilization of gas to energy.

SW4

Leachate Management Required for installation and extension of leachate collection, treatment, recirculation network and pump facilities.

SW5

Drainage & Groundwater Management Funding for design and installation of surface and groundwater systems, piping, storage and pump stations.

SW6

Recycling & Waste Management Facilities and infrastructure to support waste management and recycling including composting, waste separation and diversion, last chance and curbside bins. Landfillmercantile, Area Development

SW7

Required for planning, design and development of areas for filling to maximize available space. SW8

Closure & Reclamation Required for design and construction of final cover system and closure infrastructure and reclamation of disturbed areas to natural state.

SW9

Solid Waste Renewal Renewal and replacement of site infrastructure and equipment.

Plan No. Plan Description SW1 SW2 SW3 SW4 SW5 SW6 SW7 SW8 SW9

Equipment Site Improvement Gas Management Leachate Management Drainage & Groundwater Management Recycling & Waste Management Landfill Area Development Closure & Reclamation Solid Waste Renewal

2023 400,000 6,202,600 509,800 100,000 1,130,000 205,900 7,873,000 0 918,900 17,340,200

2024 950,000 7,600,000 450,000 200,000 1,400,000 0 2,200,000 250,000 460,000 13,510,000

2025 600,000 100,000 450,000 1,000,000 4,900,000 0 2,050,000 800,000 460,000 10,360,000

2026 650,000 1,100,000 450,000 0 0 300,000 0 0 1,960,000 4,460,000

2027 Five-Year Total 400,000 3,000,000 100,000 15,102,600 450,000 2,309,800 0 1,300,000 500,000 7,930,000 0 505,900 0 12,123,000 1,000,000 2,050,000 460,000 4,258,900 2,910,000 48,580,200

Funding Sources General Taxation

Surplus/Reserves

17,134,300

13,110,000

10,360,000

4,460,000

2,910,000

47,974,300

Development Cost Charges

Debenture/Borrowing

Federal/Provincial Funding

Dev/Comm/Other Contributions

79,700

Utility Revenue

126,200

400,000

526,200

17,340,200

13,510,000

10,360,000

4,460,000

2,910,000

48,580,200

Note: Totals may not add due to rounding.

Page 595

2023 FINANCIAL PLAN

CITY OF KELOWNA

Storm Drainage Capital Plan No. Plan Description Hydraulic Upgrading Program D1 Estimated expenditures to cover hydraulic improvements to the storm drainage system. This non-exhaustive list of hydraulic capacity projects are selected based on grant availability, contributing area, support by studies, analyses, and/or reoccurring operational issues. Flood protection projects are also included in this category. D2

Plan No.

Storm Drainage Quality Program This program includes stormwater quality projects that reduce urban and agricultural stormwater pollution throughout the City. Projects are selected based on contemporary water quality monitoring, higher risk subcatchments, and provincial outfall water quality targets. The 2040 Official Community Plan and the draft Area Based Water Management Plan identify relatively high risks and many opportunities for addressing stormwater quality in the City. These projects ultimately support the City's drinking water filtration deferral strategy supported by Interior Health. This category is expected to evolve regularly based on lessons learned, completed projects, and increases to stormwater quality levels of service. Storm Water Renewal This program provides for the renewal and replacement of pipes, outfalls, pump stations, treatment facilities, and stormwater ponds.

2023 16,091,300 168,400 580,500 16,840,200

2024 6,592,623 349,114 220,000 7,161,737

2025 7,064,195 120,000 340,000 7,524,195

2026 6,971,863 0 379,152 7,351,015

Funding sources General Taxation

999,800

1,800,490

2,381,598

857,974

837,683

6,877,545

Surplus/Reserves

20,040,780

D1 D2 D3

Plan Description Hydraulic Upgrading Program Storm Drainage Quality Program Storm Water Renewal

2027 Five-Year Total 960,660 37,680,641 0 637,514 543,690 2,063,342 1,504,350 40,381,497

10,600,700

3,024,198

2,316,919

3,704,296

394,667

Development Cost Charges

Debenture/Borrowing

4,848,300

2,337,049

2,825,678

2,788,745

272,000

13,071,772

391,400

16,840,200

7,161,737

7,524,195

7,351,015

1,504,350

40,381,497

Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue Note: Totals may not add due to rounding.

Page 596

2023 FINANCIAL PLAN

CITY OF KELOWNA

Information Services Capital Plan No. Plan Description I1 Front Office Equipment Information Services have been utilizing a 5 year replacement cycle for desktop equipment which includes computers, printers, monitors, scanners and software. It also includes work group equipment such as large format plotters and copiers. I2

Server & Data Storage To provide equipment and software in City Hall data centre to support the various systems in place for staff and includes equipment for the Fire Hall data centre. Included are servers, disk storage, tape backups and the related software.

Major System Projects Major systems projects include Class Registration Software Replacement and Online Platform Redevelopment.

Communications Systems To provide a networking environment that interconnects the various places and spaces used by City staff, this budget will support the expansion of the City's fibre optic ring which will reduce need for leased communication lines. Network components that have reached the end of their serviceable life will also be replaced.

Plan No. I1 I2 I3 I4

Plan Description Front Office Equipment Server & Data Storage Major System Projects Communications Systems

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 503,300 80,000 2,015,900 1,717,500 4,316,700

2024 454,839 60,000 2,291,114 186,455 2,992,408

2025 612,108 53,330 170,655 311,082 1,147,175

2026 345,309 289,180 258,517 105,611 998,617

2027 Five-Year Total 320,568 2,236,124 126,251 608,761 150,726 4,886,912 196,479 2,517,127 794,024 10,248,924

784,900 2,074,300 0 1,389,600 0 50,000 17,900 4,316,700

1,083,221 1,859,187 0 0 0 50,000 0 2,992,408

1,097,175 0 0 0 0 50,000 0 1,147,175

948,617 0 0 0 0 50,000 0 998,617

744,024 0 0 0 0 50,000 0 794,024

4,657,937 3,933,487 0 1,389,600 0 250,000 17,900 10,248,924

Note: Totals may not add due to rounding.

Page 597

2023 FINANCIAL PLAN

CITY OF KELOWNA

Vehicle & Mobile Equipment Capital Plan V1

Plan Description Additional Vehicles / Equipment This budget supports the addition of new vehicles and equipment to the corporate fleet in response to increased service demand from population growth or additional services.

Vehicle / Equipment Renewal As part of the City's vehicle replacement program, vehicles at the end of their service life cycles are replaced using funds from the equipment replacement reserve. Cars and light trucks have an average design life of 10 years.

Plan No. Plan Description V1 Additional Vehicles / Equipment V2 Vehicle / Equipment Renewal

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 517,000 8,206,300 8,723,300

2024 996,300 3,550,000 4,546,300

2025 1,257,400 3,910,000 5,167,400

2026 1,179,000 4,100,000 5,279,000

2027 Five-Year Total 887,800 4,837,500 4,290,000 24,056,300 5,177,800 28,893,800

109,300 7,996,700 0 0 0 0 617,300 8,723,300

0 4,028,400 0 0 0 0 517,900 4,546,300

0 4,397,800 0 0 0 0 769,600 5,167,400

0 4,412,600 0 0 0 0 866,400 5,279,000

0 4,589,400 0 0 0 0 588,400 5,177,800

109,300 25,424,900 0 0 0 0 3,359,600 28,893,800

Note: Totals may not add due to rounding.

Page 598

2023 FINANCIAL PLAN

CITY OF KELOWNA

Fire Capital Plan No. Plan Description F1 Vehicle / Equipment Renewal As part of the Fire Departments vehicle/equipment replacement program, vehicles and equipment at the end of their service life cycles are replaced using funds from the Fire Departments equipment replacement reserve. F2 Additional Vehicles / Equipment This budget supports the addition of new vehicles and equipment to the Fire Department in response to increased service demand from population growth. F3

Communications Systems To provide for radio system improvements or replacement, including dispatch requirements.

Plan No. Plan Description F1 Vehicle / Equipment Renewal F2 Additional Vehicles / Equipment F3 Communications Systems

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 3,166,100 127,000 634,500 3,927,600

2024 697,546 91,722 34,500 823,768

2025 0 65,341 291,800 357,141

2026 0 66,648 85,000 151,648

2027 Five‐Year Total 3,221,796 7,085,442 67,980 418,691 595,000 1,640,800 3,884,776 9,144,933

0 3,927,600 0 0 0 0 0 3,927,600

0 823,768 0 0 0 0 0 823,768

0 357,141 0 0 0 0 0 357,141

0 151,648 0 0 0 0 0 151,648

0 3,884,776 0 0 0 0 0 3,884,776

0 9,144,933 0 0 0 0 0 9,144,933

Note: Totals may not add due to rounding.

Page 599

2023 FINANCIAL PLAN

CITY OF KELOWNA

Capital Summary - Airport & Utility Funds Cost Centre 312 Airport

2023

2024

2025

2026

2027

139,065,000

9,865,400

23,154,600

14,129,200

16,754,500

313

Water

10,501,400

8,013,800

11,229,800

9,142,800

8,713,800

314

Wastewater

31,219,500 180,785,900

10,264,300 28,143,500

25,085,400 59,469,800

26,087,000 49,359,000

62,205,800 87,674,100

Funding Sources: Water Utility Operating

4,360,000

5,684,987

7,404,766

6,566,300

6,491,900

Wastewater Utility Operating

7,363,700

6,232,160

10,395,440

11,069,800

23,639,400

144,404,590

9,865,400

25,154,600

13,607,300

16,003,600

2,731,710

6,210,953

14,308,994

15,390,700

38,638,300

21,105,300

521,900

2,750,900

Reserves/Surplus Development Cost Charges Debenture Borrowing Federal/Provincial Contributions Dev/Comm/Other Contributions

820,600

150,000

2,206,000

2,203,000

150,000

180,785,900

28,143,500

59,469,800

49,359,000

87,674,100

Total Five-Year Capital Program * 10-Year Capital Plan only includes confirmed Federal and Provincial Funding

405,432,300

Note: Totals may not add due to rounding.

Utility Funds Capital Funding 2023 to 2027 The below graph summarizes the overall capital plan funding over the next five years.

Reserves/Surplus 52% Development Cost Charges 19% Wastewater Utility Operating 14% Water Utility Operating 8% Federal/Provincial Contributions 6% Dev/Comm/Other Contributions 1% Debenture Borrowing 0%

Total = $405.4 M

Page 600

2023 FINANCIAL PLAN

CITY OF KELOWNA

Airport Capital Plan No. Plan Description A1

Airside Funding for East Lands roads and servicing, stormwater infrastructure, and other small capital projects.

Groundside Funding for Airport roadways, hotel and parking development, rental car quick turnaround facility, land purchases, West Lands roads and servicing, and other small capital projects.

Terminal Funding for Airport terminal building renovations, technology, bridge upgrades, and other small capital projects.

Airport Improvement Fees Funding for the terminal expansion, Apron 1 South expansion, combined operations building, airside pavement rehabilitation, runway end safety area, airside equipment, and other capital projects.

Plan No. Plan Description A1 A2 A3 A4

Airside Groundside Terminal Airport Improvement Fees

Funding Sources: General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 760,000 9,249,100 6,519,300 122,536,600 139,065,000

2024 275,600 3,376,000 1,328,900 4,884,900 9,865,400

2025 827,400 10,795,900 1,490,500 10,040,800 23,154,600

2026 828,300 1,291,400 1,174,000 10,835,500 14,129,200

2027 Five-Year Total 2,482,900 5,174,200 9,464,000 34,176,400 762,000 11,274,700 4,045,600 152,343,400 16,754,500 202,968,700

0 126,977,000 0 0 11,806,000 282,000 0 139,065,000

0 9,865,400 0 0 0 0 0 9,865,400

0 23,154,600 0 0 0 0 0 23,154,600

0 13,607,300 0 0 521,900 0 0 14,129,200

0 14,003,600 0 0 2,750,900 0 0 16,754,500

0 187,607,900 0 0 15,078,800 282,000 0 202,968,700

Note: Totals may not add due to rounding.

Page 601

2023 FINANCIAL PLAN

CITY OF KELOWNA

Water Capital Plan No. Plan Description W1

DCC Pipes (Mains) New water mains to accommodate growth. DCC Booster Stations & PRVs New booster stations &PRV's to accommodate growth. DCC Water Treatment New treatment capacity and facilities to accommodate growth. DCC Reservoirs & Filling Stations New reservoirs and filling stations to accommodate growth. DCC Offsite & Oversize The City's share of costs to oversize water infrastructure and to do work in excess of the developer's own needs. Network and Facility Renewal

Renewal of existing water mains, booster stations, PRVs, water treatment systems, reservoirs and filling stations that has reached the end of its service life. Network and Facility Improvements

Network and facility improvements to meet current standards. Contributed assets and water meters that are needed to support development and are funded from development. Irrigation Network Improvements

W2 W3 W4 W5

Network and Facility Improvements to meet current standards. Fire protection, upper watershed infrastructure, well stations and transmission mains are all included in this irrigation network. Plan No. Plan Description W1 W2 W3 W4 W5 W6 W7 W8

DCC Pipes (Mains) DCC Booster Stations & PRVs DCC Water Treatment DCC Reservoirs & Filling Stations DCC Offsite & Oversize Network and Facility Renewal Network and Facility Improvements Irrigation Network Improvements

Funding Sources General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 1,401,100 0 0 231,000 545,300 5,139,100 1,568,800 1,616,100 10,501,400

2024 2,750,000 0 0 1,900,000 143,800 3,050,000 150,000 20,000 8,013,800

2025 3,221,000 0 0 0 143,800 4,150,000 2,695,000 1,020,000 11,229,800

2026 2,579,000 0 0 0 143,800 4,250,000 150,000 2,020,000 9,142,800

2027 Five-Year Total 0 9,951,100 0 0 0 0 0 2,131,000 143,800 1,120,500 5,500,000 22,089,100 2,150,000 6,713,800 920,000 5,596,100 8,713,800 47,601,600

0 4,534,490 1,456,910 0 0 150,000 4,360,000 10,501,400

0 0 2,178,813 0 0 150,000 5,684,987 8,013,800

0 2,000,000 1,675,034 0 0 150,000 7,404,766 11,229,800

0 0 2,426,500 0 0 150,000 6,566,300 9,142,800

0 2,000,000 71,900 0 0 150,000 6,491,900 8,713,800

0 8,534,490 7,809,157 0 0 750,000 30,507,953 47,601,600

Note: Totals may not add due to rounding.

Page 602

2023 FINANCIAL PLAN

CITY OF KELOWNA

Wastewater Capital Plan No. Plan Description WW1 WW2 WW3 WW4 WW5 WW6

DCC Pipes (Mains) New wastewater mains to support growth. DCC Lift Stations New wastewater lift stations to support growth. DCC Wastewater Treatment Facilities New wastewater treatment facilities to support growth. DCC Oversize The City's share of costs to oversize wastewater infrastructure and to do work in excess of the developer's own needs. Network and Facility Renewal Renewal of existing wastewater mains, lift stations and existing treatment facilities that have reached the end of their service life. Network and Facility Improvements Collection and facility improvements to meet current standards. Contributed assets that are needed to support development and are funded from development.

Plan No. Plan Description WW1 WW2 WW3 WW4 WW5 WW6

DCC Pipes (Mains) DCC Lift Stations DCC Wastewater Treatment Facilities DCC Oversize Network and Facility Renewal Network and Facility Improvements

Funding Sources: General Taxation Surplus/Reserves Development Cost Charges Debenture/Borrowing Federal/Provincial Funding Dev/Comm/Other Contributions Utility Revenue

2023 535,900 2,982,000 434,200 538,700 12,563,200 14,165,500 31,219,500

2024 4,823,100 221,200 0 120,000 5,000,000 100,000 10,264,300

2025 3,354,600 1,990,800 14,320,000 120,000 5,200,000 100,000 25,085,400

2026 5,654,000 2,053,000 12,760,000 120,000 5,400,000 100,000 26,087,000

2027 Five-Year Total 6,265,800 20,633,400 0 7,247,000 50,120,000 77,634,200 120,000 1,018,700 5,600,000 33,763,200 100,000 14,565,500 62,205,800 154,862,000

0 12,893,100 1,274,800 0 9,299,300 388,600 7,363,700 31,219,500

0 0 4,032,140 0 0 0 6,232,160 10,264,300

0 0 12,633,960 0 0 2,056,000 10,395,440 25,085,400

0 0 12,964,200 0 0 2,053,000 11,069,800 26,087,000

0 0 38,566,400 0 0 0 23,639,400 62,205,800

0 12,893,100 69,471,500 0 9,299,300 4,497,600 58,700,500 154,862,000

Note: Totals may not add due to rounding.

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CITY OF KELOWNA

2023 FINANCIAL PLAN

CITY OF KELOWNA

APPENDIX

41% prioritize building new infrastructure

SUPPLEMENTAL INFORMATION

Citizen Survey Results The Citizen Survey is conducted to determine how satisfied the public is with municipal programs and services, and to learn what citizens’ service priorities are. Responses are weighted by age, gender and citywide distribution to accurately reflect Kelowna’s population. Results are benchmarked against other local governments. Insights gained by this research help us make important decisions regarding planning, budgeting and service improvements. Ipsos has conducted the Citizen Survey for the City in 2022, 2020, 2018, 2017, 2015 and 2012. Full results can be found at kelowna.ca.

55% prioritize renewing existing infrastructure

Citizens’ top three priorities for investment are addressing social issues, encouraging a diverse supply of housing, and traffic flow management. While all evaluated services are important to citizens, the services most important to our residents in 2022 include: Drinking Water Quality Fire Services Community Cleanliness Road Maintenance Police Services

The latest Citizen Survey reports that: • • • • • •

90% of citizens have a good quality of life 80% of citizens are satisfied with the overall level and quality of City services 80% of citizens agree that the City is inclusive and accepting of all 81% of citizens feel safe in the community 81% of citizens were satisfied with the customer service they received 75% of citizens believe they receive good value for their tax dollars

Important issues for citizens include addressing social issues such as homelessness (57%), transportation (23%) and crime (12%).

Areas of strength amongst City services include drinking water quality for City Water Utility customers, fire and police services, bike lanes, pedestrian sidewalks, parks and sports fields and community cleanliness. Areas of improvement identified are road maintenance and snow removal, traffic flow management, city growth management, addressing climate change and public transit. Citizens were also asked if they would prefer tax increases over service reductions: Increase taxes to enhance services

28%

Increase taxes to maintain services

25%

Reduce services to maintain tax rate

24%

Reduce services to reduce taxes

12%

Page III

2023 FINANCIAL PLAN

CITY OF KELOWNA

2040 OFFICIAL COMMUNITY PLAN

Our Kelowna as we Grow Kelowna is one of Canada’s fastest growing cities, with another 45,000 citizens expected by 2040. This growth will bring both opportunities and challenges that require us to plan strategically to ensure Kelowna remains prosperous, vibrant and resilient in the years to come. Our city’s approach to growth will be shaped by the recently adopted 2040 Official Community Plan (OCP), a guiding document which sets a strategic course for the next two decades. An OCP provides a decision-making framework for Council with policies and objectives aimed at growth management and issues related to housing, transportation, infrastructure, parks, economic development, and the natural and social environment. The 2040 OCP also strives to bring our community’s Imagine Kelowna vision of an equitable, inclusive, sustainable city to life. This will mean making smart choices about how and where we grow, protecting our environment, making meaningful progress towards Reconciliation, and ensuring that everybody who lives here can make a living, find suitable housing, and get around easily and safely. Building on the goals laid out in Imagine Kelowna, the Plan contains the following 10 Pillars:

The 2040 OCP includes updated land uses, mapping and policies to reflect these Pillars and clearly signal where development will be prioritized and supported with infrastructure and amenities. Now that the Plan has been adopted, putting it into action will require several key implementation actions throughout its lifespan. A comprehensive implementation table is being used to guide the timing and resourcing of OCP implementation actions, with due recognition of available budget and other work planning considerations.

Page IV

2023 FINANCIAL PLAN

CITY OF KELOWNA

2021 COMMUNITY TRENDS REPORT

Housing Unaffordability: Crisis or Crossroads? The Community Trends Report is prepared annually to explore how important trends or challenges are impacting our cities and communities. The report is a research-based document that sets the stage for future action by identifying the local implications of broader national or global trends. Examining complex topics in an accessible format, the Community Trends Report is intended to serve as a resource for City of Kelowna staff and Council, while informing residents, businesses and local community organizations about how key trends might impact our region. A recent surge in housing prices across the country leaves many talking about housing unaffordability. Locally, provincially, and nationally, the topic of unaffordability, and increasing housing costs growing more detached from incomes, has moved beyond a topical ‘trend’ and there is growing acceptance at all levels of government that more significant action towards housing affordability is needed. As we navigate this crossroads, we are faced with compounding challenges. Economic uncertainty of the COVID-19 pandemic has exacerbated housing unaffordability across the country. This state of unaffordability is despite significant and continued efforts of the City and our partners to address the community’s housing needs. Importantly, without these efforts, unaffordability in Kelowna today would likely be worse. The Community Trends Report reflects on this impasse by posing a few key questions: • • • • •

What is the state of housing in Kelowna today? How is affordability discussed and why does it matter? How can we change the conversation to be more productive? Will the housing system and the role of the actors need to evolve? As a local government, do we need to re-examine our role in housing affordability?

Page V

2023 FINANCIAL PLAN

CITY OF KELOWNA

STATISTICS Top 10 corporate taxpayers 2021

2022 Rank

Business (owner) name

Type of property

Commercial Building

Al Stober Construction Ltd

Commercial Building

FortisBC Inc

Electrical Utility

FortisBC Inc

Electrical Utility

Orchard Park Shopping Centre

Shopping Mall

Orchard Park Shopping Centre

Shopping Mall

Victor Projects Ltd

Shopping Mall

McIntosh Properties Ltd

Shopping Mall

McIntosh Properties Ltd

Shopping Mall

Victor Projects Ltd

Shopping Mall

Inland Natural Gas Co Ltd

Gas Utility

Inland Natural Gas Co Ltd

Gas Utility

Callahan Construction Company Ltd

Multiple Types

Midwest Ventures Ltd

Multiple Types

3752 Investments Ltd

Multiple Types

Callahan Construction Company Ltd

Multiple Types

Midwest Ventures Ltd

Multiple Types

Jabs Constructions Ltd

Multiple Types

RG Properties Ltd

Shopping Mall

3752 Investments Ltd

Multiple Types

Rank

Business (owner) name

Type of property

Al Stober Construction Ltd

Tax comparison analysis – 2021 & 2022 2021

2022

Difference

Change

1,716,100

1,958,300

242,200

14.11%

General Tax Levy

11,876

12,827

950

7.71%

Infrastructure Levy

465

-465

-3.77%

Business Assessed value Municipal

12,342

12,827

485

3.94%

6,624

6,893

269

4.06%

Regional District Levy

1,064

996

-68

-6.41%

Hospital Levy

1,100

1,012

-88

-8.02%

Library Levy

540

-0.07%

BC Assessment Levy

195

203

3.98%

Total Tax Levy

21,865

22,470

606

2.77%

Residential

2021

2022

Difference

Change

Assessed value

689,990

888,420

198,430

28.76%

2,200

2,286

3.93%

2,200

2,286

3.93%

180

181

0.63%

General Tax Levy

996

1,049

5.34%

Homeowner Grant

-770

226

279

23.58%

Regional District Levy

175

184

5.59%

Hospital Levy

181

187

3.78%

Library Levy

-0.07%

BC Assessment

9.33%

Total Tax Levy

3,085

3,245

160

5.18%

School General Tax Levy Other Taxing Jurisdictions

Municipal General Tax Levy Infrastructure Levy Other Municipal User Fees Garbage Collection/Waste Reduction School

Other Taxing Jurisdictions

Page VI

2023 FINANCIAL PLAN

CITY OF KELOWNA

Local economy The City of Kelowna is the largest city in the Central Okanagan. It borders the beautiful Okanagan Lake and has the best of rural and urban lifestyles packed into one unique city. With a diverse economy supported by quality post-secondary institutions, Kelowna has become the main marketing and distribution centre of the Okanagan Valley. Kelowna also has a thriving arts and culture scene combined with all the outdoor activities that make the Central Okanagan a must-see tourism destination, as well as a popular place to live. Settled in 1879 and incorporated in 1905, Kelowna is known for its agriculture and forestry roots and has grown into a modern city.

Occupation National Occupational Classification (NOC) Construction 279

259

320 328 365

Retail Trade 884

Health Care & Social Assistance Professional, Scientic, and Technical Services

Major Industries

511 683

784

Other Services (except public administration) Accomodation & Food Services

701

Real Estate and Rental and Leasing Administrative & Support, Waste Management, etc Wholesale Trade Finance and Insurance

Source: Canadian Business Patterns, 2017

Doing Business in the Community Development Incentives The City of Kelowna offers several developer incentives to encourage alignment with the City’s strategic priorities for urban development. Tax incentives are available for development in City Centre and Rutland Urban Centres, and grants and tax incentives are available to promote the development of purpose-built rental housing throughout Kelowna. Further information regarding development incentives in Kelowna may be found Kelowna.ca/homes & buildings/developers/developer incentives Commercial Land The major commercial areas within Kelowna are the downtown, Highway 97, and Mission/ South Pandosy districts. Kelowna’s Official Community Plan projects the need for 90 acres of land for commercial development and emphasizes land re-use and densification over continued expansion into greenfield areas. Industrial Land There are 1,320 acres of existing zoned industrial land within Kelowna’s boundaries. Kelowna has also identified 1,721 acres of land identified for future industrial development in the Official Community Plan. Industrial vacancy rates are currently low, and the market is active and dynamic.

For more information on the local economy, visit www.investkelowna.com. Source: 2018 Central Okanagan Economic Profile

Page VII

2023 FINANCIAL PLAN

CITY OF KELOWNA

Business licences

*The City of Kelowna stopped issuing secondary suite licences in 2017. The business licence stats are measured December 1st to December 1st due to business licence rollover.

Access to markets Kelowna’s central location provides the city with access to key markets, as well as their population base. Distance (km) to Kelowna from:  Vancouver – 457  Seattle – 579  Calgary – 612  Portland – 826  Saskatoon – 1,233  Salt Lake City – 1,614  San Francisco – 1,872  Winnipeg – 1,970  Los Angeles – 2,494  Denver – 3,215

Page VIII

2023 FINANCIAL PLAN

CITY OF KELOWNA

Kelowna weather

January February March April May June July August September October November December Highest Temperature per year

Record highs by month

January February March April May June July August September October November December Lowest Temperature per year Record lows by month

4.4

Historic Temperatures (oC) Recorded Highs 2014 2015 2016 12.0 7.1 9.9 12.8 13.8 19.3 20.3 22.7 25.8 27.4 25.1 29.5 28.4 31.2 38.7 35.7 37.1 37.6 35.7 34.7 37.8 33.5 27.3 28.7 18.1 19.5 12.5 15.2 14.3 16.6 10.0 11.9 6.1

36.3

36.6

37.1

38.7

35.7

35.6

36.8

36.1

37.7

44.6

Jan 13 2014

Feb 27 2016

Mar 31 2016

Apr 21 2016

May 23 2018

Jun 28 2018

Jul 9 2015

Aug 13 2015

Sep 2 2015

Oct 3 2022

13.8

20.3

27.4

31.9

38.7

37.6

37.8

35.6

25.3

Nov 8 Dec 1&9 2016 2012 & 2015 16.6 11.9

2011 -9.0 -11.8 -9.4 -5.8 -0.4

2012 -20.5 -5.7

2013 -3.4

2014 -15.6 -21.3 -7.4 -4.0 -2.8 2.6 8.9

2017 -24.8 -21.6 -8.6 -4.4 1.3 4.1 6.4 5.2 0.3

2018 -13.4 -20.7 -8.0

2019 -10.2 -20.9 -20.0 -4.0 1.5 5.1 6.4 6.3

2020 -22.3

2011 11.2 6.8

2012 8.1 10.4 13.5 25.8

2013

29.8 33.2 32.8 32.1 17.1 11.2 9.5

34.7 36.3 27.7 20.7 15.4 11.9

36.6

33.2

17.6 22.6 30.3

30.7

-7.9 -4.8 -3.9 4.8 5.9 5.8

4.8 4.6 1.3 -5.2 -15.2 -10.9

-3.7 -2.7 0.4 6.2 3.6 2.0 -5.7 -9.5 -11.6

-3.9 -12.6 -18.3

-15.2

-20.5

Jan 12 2017 -24.8

Feb 8 2017 -21.6

Recorded Lows 2015 2016 -19.4 -7.5

2017

31.8 32.8 33.9 34.0 35.6

-19.4 -17.6

-3.8 -0.8 3.1 7.2 4.6 -1.3 -3.8 -14.6 -18.0

-24.1

-14.5 -19.9

-18.3

-21.3

-18.0

-24.1

Mar 4 2019 -20

Apr 2 2020 -9.9

May 1 2013 -3.9

Jun 7 2012 0.4

-1.2

0.9 0.9 5.7 6.9 3.3 0.9

2018 5.8 25.4 31.9 33.3 36.8 36.8

2019 8.7 17.1 17.5 30.5 33.9 36.1

17.1 14.0 9.6

17.6 11.9

2020 7.5 9.6 14.1 19.1 27.5 34.6 37.7 31.5 22.7

-12.2 -9.9 1.5 3.8 5.3 2.7

2021 6.1 12.3 24.6 29.5 44.6 38.9 36.7 27.2

2022 11.2 12.2 14.6

38.8 35.3 34.2 25.3

38.8

2021 -12.8 -21.0 -9.5 -6.7 -1.9 0.9

2022 -24.7 -14.6

3.6 -0.4

7.3 0.1

-7.4 0.2

2.1 6.3 7.9 2.5 -4.1 -7.8

-10.9 -11.4

-24.8

-20.7

-20.9

-22.3

-21.0

-24.7

Jul 13 2020 3.8

Aug 28 2010 2.4

Sep 28 2015 -1.3

Oct 11 2009 -11.6

Nov 23 2010 -21

Dec 17 2016 -24.1

-6.9

Page IX

2023 FINANCIAL PLAN

January February March April May June July August September October November December Total Recorded Precipitation per year Record Daily Precipitation by month

CITY OF KELOWNA

36.3 11.7

Historic Precipitation (mm) 2014 2015 2016 11.1 8.1 4.4 19.8 14.5 6.5 4.0 27.4 1.5 6.0 19.3 26.3 19.6 25.3 27.7 25.5 5.8 20.9 2.9 23.4 23.5 8.9 3.4 40.4 23.5 21.4 14.6 4.6

159.8

239.5

290.7

183.5

96.5

174.7

119.2

125.3

108.0

149.2

Feb 28 2022 11.9

Mar 13 2013 9.5

Apr 26 2018 19.6

May 17 2016 22.7

Jun 20 2018 23.4

Jul 22 2013 10.9

Aug 2 2014 16.8

Sep 28 2013 17.9

Oct 17 2015 14.1

Nov 2 2010 18.7

Dec 6 2015 8.5

2011 14.3 8.9 6.8 9.2 32.6 8.0 14.4 6.3 3.3 40.4 2.8 2.6

2012 6.3 19.6 15.4 36.9

91.4 Jan 4 2019 8.8

66.1 28.5 32.7 16.4 9.8

2013 9.7 5.1 14.4 17.4 40.3 57.6 4.9 17.4 55.2

2017 5.0 25.9 16.5 26.1 8.5

2018 7.3 10.9 10.7 8.5 22.1 8.2

2019 7.8

2020 18.9

1.7 8.6 11.4 15.5

2.3 16.6 15.1 13.8 8.2

5.6 3.9 1.2 8.5 26.6 13.1 28.0 9.4 14.7 36.5

7.7 8.0 57.4 31.4 15.7 10.1

2021 4.9 2.0 1.4 8.6

20.8 12.4 18.0

2022 15.2 13.1 9.5 2.9 16.3 31.8 8.7 6.3

Source: Government of Canada: Station Results - Almanac Averages and Extremes; Kelowna 14-year data.

Page X

2023 FINANCIAL PLAN

CITY OF KELOWNA

GLOSSARY Accrual basis of accounting | A method of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Accumulated surplus | The balance in a fund that represents the cumulative excess in revenues over expenditures. This term also refers to reserve accounts. Activities | Details how Council, Corporate and Divisional priorities lead the work done at the divisional level; activities are work plans to be accomplished in the current year. Alternative approval process | To provide electors the opportunity to seek a vote on a particular matter being proposed by Council. Approval is obtained if fewer than 10% of eligible electors in the area submit elector response forms (formerly known as counter-petition process). Amortization | Is the gradual reduction of debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. Appropriation | Term used to refer to the setting aside of monies into a reserve account or fund. Balanced budget | Budgeted expenditures and transfers to funds are equal to budgeted revenues and transfers from funds. Base budget | The initial budget that provides for the existing levels of service in the current year. Capital assets | Is a long‐term asset that is not purchased or sold in the normal course of business. Generally, it includes fixed assets. Capital expenditures | Expenditures of a non‐operating or maintenance nature, such as costs to acquire equipment, land, buildings and costs associated with new infrastructure or improvements to existing infrastructure. Capital lease | Is a lease obligation that has to be capitalized on the balance sheet. Cost centre | Within the City’s reporting structure a cost center refers to a specific director, manager, supervisor or division (see Department/Division/Branch). Conditional grants | Grants (e.g. Federal and Provincial Government) that are dependent on annual approval and potentially limited in how they may be expended. Debenture | A form of long-term corporate debt that is not secured by the pledge of specific assets. Debt service | The amount of interest and payments due annually on long term debt. Deficit | An excess of expenditure over revenue. A loss in business operations. Division/Department/Branch | Part of the City’s organization structure. Divisions are the highest level grouping; departments are sections under the division and branches are sections under department. (i.e. Division – Financial Services; Department – Financial Planning; Branch – Budget). Depreciation | Accounting method used to allocate the cost of a tangible or physical asset over its useful life. Development Cost Charges (DCCs) | Monies collected from land developers to offset some of the infrastructure expenditures required to service new development. Charges are intended to facilitate development by providing a method to finance capital projects related to water, sewer, drainage, roads and parkland acquisition.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Expenditure | The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service or settling a loss. Expenditure reduction | A request to reduce an existing expenditure level. Fees and charges | A source of revenue generated by the activities, works or facilities undertaken or provided by or on behalf of the City. Financial Plan | Section 165 of the Community Charter requires that a municipality must have a financial plan that is adopted annually, by bylaw, before the annual property tax bylaw is adopted. The financial plan may be amended by bylaw at any time and is for a period of 5 years. The financial plan identifies the revenue sources and the proposed expenditures to be incurred to meet the outlined objectives. Franchise fee | A charge made to a privately owned utility for the ongoing use of City property. Full Time Equivalents (FTEs) | A conversion measure to express all staffing (temporary, part‐time, etc.) in terms of a common fulltime denominator. Fund | A fiscal entity with revenues and expenses which are segregated for the purpose of carrying out a specific activity. The City has four main funds: general, water, wastewater, and airport. There are also various statutory reserve funds. General Fund | This fund is used to account for general operations and activities and includes most city departments except the enterprise funds of water, wastewater, and airport. The departmental activities in the general fund are funded wholly or in part by property taxes. General revenue | Refers to the revenues which are not specifically attributable to or generated by any particular department within the City’s reporting structure. Grants‐in‐lieu | Properties within a municipality that are owned by the Federal or Provincial governments are exempt from taxation. The City may receive a grant‐in‐lieu in place of a tax levy. Infrastructure | Facilities and improvements such as buildings, roads, sidewalks, storm drainage, waterworks, sanitary sewer systems. Internal control | Include policies and procedures that pertain to the maintenance of accurate and reasonably detailed records. Internal equipment revenue | Revenue generated from a charge against current operations for the use of a City vehicle or equipment. The charge is similar for a class of vehicles and is based on full recovery plus inflation. Local Government Act (LGA) | Provincial legislation that provides authority for municipal expenditure and revenue collection. Some sections of the LGA have been replaced by the Community Charter. Modified accrual basis | Modified accrual accounting recognizes revenues when they become available and measurable and with a few exceptions, recognizes expenditures when liabilities are incurred. Official Community Plan (OCP) | A City bylaw that defines policies for land use and development. Operating expenses | The cost for personnel, internal equipment, materials, contract services and transfers required for a department to function.

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2023 FINANCIAL PLAN

CITY OF KELOWNA

Operating request | A request for operating budget that is required to provide a new service or expand an existing service beyond the current funding level. Operating revenue | Funds that the City receives as income to pay for ongoing operations. It includes such items as taxes, fees and charges from specific services, interest earnings, and grant revenues. Pay‐as‐you‐go Capital | Capital expenditures that are financed from current year taxation revenues. Parcel tax | A tax imposed on the basis of a single amount for each parcel, the taxable area of the parcel, or the taxable frontage of a parcel. Property taxation | The process by which the City obtains the required funds to pay for the General Fund Operating and Capital expenditures of any given year not funded from another source. This is provided by a levy on each property of various classes within the municipality. Reserve account | Part of the Accumulated Surplus that has been earmarked for future operating or capital expenditures. Reserve Fund (statutory reserves) | A reserve fund is established by Council by bylaw for a specified purpose that is within the powers of the municipality within the powers of the LGA or another Act. Revenue | Sources of income financing the operations of the City. Tradewaste Treatment Facility (TWTF) | Wastewater treatment facility run by the City but charged back to specific commercial users. UPASS | A program where students pay a fee per semester that lets them use their student card as a bus pass. Utility | The City owns two utilities: water, and wastewater. The airport is also treated like a separate utility. These utilities pay for themselves through a separate revenue structure specific to each one that pays for their respective operating costs, debt servicing costs and capital projects not funded from other sources. Working capital | The excess of current assets over current liabilities.

Page XIII

2023 FINANCIAL PLAN

CITY OF KELOWNA

ACRONYMS & ABBREVIATIONS AHLAS AIF AL&C ALC ALR AMCP

Affordable Housing Land Acquisition Strategy Airport Improvement Fee Active Living & Culture Agricultural Land Commission Agricultural Land Reserve Asset Management and Capital Planning

AMS ASQ ATC BCA BOD C&E C.C. CA CAC CAP CC CCTV CIF CLS COJHS COK

Asset Management System Airport Service Quality Active Transportation Corridor BC Assessment Biochemical Oxygen Demand Climate and Environment Community Charter City Administration Child Advocacy Centre Capital City Clerk Closed‐circuit television Capital Improvement Fee Corporate Land System Central Okanagan Journey Home Society City of Kelowna

DMAF DOCP EMV EOC ESS EV FCA FD FOI FS FTE GAAP GFOA GHG GIS GPS GR HID HNA HR HVAC IAFF

COVID‐19 CPIC

Coronavirus Disease 2019 Canadian Police Information Centre

IAS IBEW

International Accreditation Service International Brotherhood of Electrical Workers

CPO CPTED

Community Policing Office Crime Prevention through Environmental Design Canadian Radio‐television and Corporate Services

ICBC ICG

Insurance Corporation of British Columbia International Children’s Games

ICIP IGR

Investing in Canada Infrastructure Program Inter Government Relationships

IHA IK IN IoT IS

Interior Health Authority Imagine Kelowna Infrastructure Internet of Things Information Services

D&O DAR

Corporate Strategy and Performance Community Safety Plan Corporate Strategic Services Canadian Union of Public Employees Capital Works Machinery & Equipment – statutory reserve fund Debt & Other Development Application Review

ISO ITIL

Investigative Service Officer Information Technology Infrastructure Library

DCC DEI DFTS DKA

Development Cost Charge Diversity, Equity & Inclusive Digital Fire Training System Downtown Kelowna Association

KCC KCT KFD KMMFA

Kelowna Community Campus Kelowna Community Theatre Kelowna Fire Department Kelowna Major Men’s Fastball Association

CRTC CS CSP CSP CSS CUPE CWME

DMAF

Disaster Mitigation Adaptation Fund Disaster Mitigation and Adaption Fund Design Operation and Closure Plan Europay, Mastercard and Visa Emergency Operating Centre Emergency Support Services Electric Vehicle Facility Condition Assessment Fire Department Freedom of Information Financial Services Full‐time Equivalent Generally Accepted Accounting Principles Government Finance Officers Association Greenhouse Gas Geographical Information Systems Global Positioning System Government Relations High‐Intensity Discharge Housing Needs Assessment Human Resources Heating, Ventilation and Air Conditioning International Association of Fire Fighters Union

Page XIV

2023 FINANCIAL PLAN

CITY OF KELOWNA

KMPC KPI KSS LAS LED LiDAR LOA MBL MEP MFA MMOB MoTI

Kelowna Memorial Park Cemetery Key Performance Indicators Kelowna Secondary School Local Area Service Light Emitting Diode Light Detection and Ranging Lease and Operating Agreement Multiple Bottom Line Mechanical, Electrical, Plumbing Municipal Finance Authority Meet Me On Bernard Ministry of Transportation and Infrastructure

Q4 QS RCMP RDCO RFI RFID RFP RIM ROI S4L SAFE SCA

Fourth Quarter Quality Sport Royal Canadian Mounted Police Regional District of the Central Okanagan Request for Information Radio Frequency Identification Request for Proposal Records & Information Management Return on Investment Sport For Life Community Safety Sewer Connection Area

MOU MUP NG911 NPS NRCan O&M OC

Memorandum of Understanding Multi‐Use Path Next Generation 911 compliant equipment Net Promoter Score Natural Resources Canada Operration & Maintenance Okanagan College

SCADA SCBA SD23 SEI SEK SEKID SMART

OCP

Official Community Plan

SMOR

Supervisory Control and Data Acquisition Self Contained Breathing Apparatus School District No. 23 Sensitive Ecosystem Inventory South East Kelowna South East Kelowna Irrigation District Specific, Measurable, Achievable, Relevant, Timely Strategic Management Owned Report

OGS OKGN

Oil‐Grit Separator Okanagan

SOMID SRSA

Operations Officer

STPCO

Operating

SWMP

South Okanagan Mission Irrigation District Septic Removal Specified Area ‐ statutory reserve fund Sustainable Transportation Partnership of the Central Okanagan Stormwater Management Plan

ORT P&DS P1 P2 PAC PAWS PBMP PBMP PCARD PEOPLE

Okanagan Rail Trail Planning & Development Services Priority 1 Priority 2 Performing Arts Centre Pre‐Authorized Withdrawal System Pedestrian & Bicycle Master Plan Pedestrian and Bicycle Master Plan Purchasing Card Paid Employment Opportunities for People with Lived Experiences Parkinson Recreation Centre Pressure Reducing Valve Public Sector Accounting Board Public Sector Accounting Standards First Quarter Second Quarter Third Quarter

TCA TMP TWTF UBCM UBCO URBA UTV V&E VFD W

Tangible Capital Assets Transportation Master Plan Tradewaste Treatment Facility Union of British Columbia Municipalities University of British Columbia – Okanagan Uptown Rutland Business Association Utility Vehicle Vehicle or Equipment Variable Frequency Drive Water

WQA WQEF WW WWTF WWTP YLW 10YCP

Water Quality Advisory Water Quality Enhancement Fund Watewater Waste Water Treatment Facility Wastewater Treatment Plant Kelowna International Airport Ten Year Capital Plan

PRC PRV PSAB PSAS Q1 Q2 Q3

Page XV

City Hall 1435 Water Street Kelowna, BC V1Y 1J4 Tel 250-469-8500 kelowna.ca/budget