Budgets and financial statements

2022-2026 budget process

Three meetings were held with limited in-person opportunities for public comment to the Board due to physical distancing requirements. In light of this, email and direct mail opportunities were available for providing public comment.

The budget review meetings were held at 8:30 a.m. on March 3 and 17 and each meeting was livestreamed with a link available to a recording for those unable to watch live at rdco.com/agenda.

The Financial Plan was adopted by the Regional Board at its March 28 meeting.

March 28 budget adoption meeting

For full budget documents and updated information, see 2022 below.

5-year financial plan

The Local Government Act requires the RDCO to develop and approve a five-year Financial Plan by March 31 each year. The RDCO financial plan consists of more than 80 budgets funding the delivery of regional, sub-regional and local services to over 195,000 residents, businesses and visitors throughout the region. Various trends and variables impact the financial plan including, but not limited to, economic conditions, population growth, demographics, climate change, and regulatory or legislative amendments. The financial plan aims to balance these factors in alignment with the Board approved strategic prioriti8es, as well as corporate and service plans.

This 5-year financial plan is updated annually.

2022

The 2022 RDCO operating budget totals just over $59-million, up 2.5% from 2021.

The budget prioritizes the ongoing support needed for those recovering from last summer’s devastating White Rock Lake wildfire and to bolster the regional emergency management program. The Board is advancing the important work of Truth and Reconciliation with Indigenous communities to embed Indigenous wisdom into the organization. Operating costs are responsible, keeping pace with growth and inflation and include some key staffing additions needed to meet service demand from residents.

In this budget an estimated $16.9 million (down $2.42 million from 2021) in capital and infrastructure improvements are proposed including approximately:

$7.5-milllion for Parks
$4.1-million for liquid waste systems
$2.1-million for Fire and Protective Services
$1.7 million for improvements and upgrades to RDCO water systems

The tax impacts for general RDCO services on the average home in each specific area are shown in the following table. Market value increases vary by area from 2021. The actual tax rate varies from neighbourhood to neighbourhood and by municipality, depending on the level of funding participation and local services provided by the Regional District.

House values and taxes
Member	2022 House Value	Total Tax per House	Net Increase/Decrease on the home from 2021
Kelowna	$835,598	$220.62	$14.34
Peachland	$823,126	$217.95	$22.96
Lake Country	$927,126	$247.95	$17.32
West Kelowna	$889,866	$238.69	$18.50
C.O. East	$852,036	$478.51	$60.85
C.O. West	$493,724	$303.02	$35.57

2022 - 2026 Financial Plan Bylaw No. 1502, 2022

Central Okanagan Regional Hospital District Financial Plan

The Central Okanagan Regional Hospital District (CORHD) Board also approved its five-year financial plan. Each year, ratepayers within the Hospital District contribute up to 40% of the funds for approved Interior Health capital and equipment services in the region. Interior Health services that leverage these 40 cent dollars provided by the CORHD return significant social and economic benefits within the Central Okanagan.

The 2022 budget includes $39.3 million in capital project funding requested by Interior Health Authority, an increase of $9.5-million or 41% from 2021. Among the new requests for Hospital District funding: a pharmacy update at Kelowna General Hospital, replacement of an existing MRI unit and installation of an additional MRI and a new CT scanner.

The significant rise in assessments across the region will result in a decrease of $19.45 in the requisition this year by the Hospital District. That means the average property owner in the Central Okanagan will contribute $169.48 toward funding of health projects in the region, a decrease of just over 10% from 2021. It is expected that the average household cost will rise over the next four years to continue providing adequate reserves for future Interior Health funding requests.

2022 - 2026 Financial Plan Bylaw No. 1-2022

March 3 - Interior Health Authority - Capital Funding Request for 2022 - 2026 Fiscal Year

2021

Regional District of Central Okanagan Financial Plan

The 2021 RDCO budget totals just over $56.8-million compared with $57-million in 2020. This year's budget is fiscally conservative and considers the realities of COVID-19. It addresses the pandemic challenges the community is still facing but also advances projects based on the Regional Board's priority areas. These include Environment, Economic Development, Sustainable Communities, Transportation and Mobility. Operating costs are keeping pace with growth and inflation in the Central Okanagan and include some minor staffing increases. The budgets are also focused on continuing to build capital reserves to address future infrastructure needs.

Unlike municipalities, the Regional District does not collect taxes directly. It requisitions funds from each local government on behalf of their residents and the Province which collects property taxes in each Electoral Area. The tax impacts for general services on the average home that was assessed at $734,000 in 2020 are shown below. Market value increases varied by area from 2020 to 2021. The actual tax rate varies from neighbourhood to neighbourhood and municipality, depending on the local services provided by the Regional District. If a home went up or down by more than the average market value, the owner will pay more or less than the numbers estimated.

House values and taxes
Member	2021 House Value	Total Tax per House	Net Increase/Decrease on the home from 2020
Kelowna	$750,000	$190.38	$6.97
Peachland	$754,000	$221.76	$8.31
Lake Country	$774,000	$224.66	$13.98
West Kelowna	$753,000	$210.59	$7.25
C.O. West	$746,500	$674.42	$8.49
C.O. East	$739,000	$534.82	($0.49)

2021-2025 Financial Plan Bylaw No. 1475, 2021

Financial Plan Approved News Release

Central Okanagan Regional Hospital District Financial Plan

The 2021 budget includes $10.2-million in new capital project funding for a total of $32 million. The average homeowner will pay $196.49 for Hospital Taxes (vs. $188.93 in 2020). This is an increase of $7.56.

Within BC, there is still focus on:

Primary and Community Care transformation as reflected by the inclusion of several Urgent and Primary Care Centres, Primary Care Networks and Community Health Centre
Efforts to improve senior's care with additional need as shown by the pandemic
Surgical services
Infrastructure investments that aim at maintaining the basic services at Interior Health sites, whether it be on the facility side, equipment replacement or information technology maintenance and expansion

Funding highlights:

Construction projects over $100,000 such as Primary Care Networks in Kelowna and Rutland, the Outreach Urban Health site and parking upgrades at Kelowna General Hospital
Technology projects like advancement of the Interior Health digital platform allowing exchange of critical patient clinical documentation to both patients and their health care providers
Equipment over $100,000 including new equipment for operating rooms, endovascular treatment and cardiac ultrasound machine