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10-YEAR CAPITAL PLAN 2027-2036

2027-2036 10-Year Capital Plan Building the City of the Future

CITY OF KELOWNA

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

TABLE OF CONTENTS Territory acknowledgement .....................................................................2 1 Overview .............................................................................................. 3 Considerations .......................................................................... 3 Focus Areas ..............................................................................4 Influencing Factors & Emerging Issues .......................................4 What We Are Doing................................................................... 5 2 Funded Projects .................................................................................... 7 Infrastructure Investment .......................................................... 7 Cost Centre Forecast ................................................................. 7 Major Changes for Funded Projects ........................................... 8 3 Funding Sources .................................................................................. 10 Funding Sources ..................................................................... 10 4 Projects in the Plan ............................................................................. 11 Operations & Maintenance Impacts ......................................... 30 5 Projects not in the Plan ........................................................................ 31 Future Capital Plans ................................................................ 31

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

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

1 Overview The 10-Year Capital Plan (the Capital Plan) is part of the City of Kelowna’s rigorous capital planning process. It aligns with Council priorities, Imagine Kelowna and the Official Community Plan, and provides a framework for long-term planning and fiscal management. Updated annually and actively managed throughout the year, the Capital Plan can advance or defer project funding, reflect revised project scopes an cost estimates, and adjust project timelines as priorities, community needs, and external conditions change. This flexibility supports a coordinated and financially sustainable approach to capital investment. The Capital Plan helps the City answer four fundamental questions: • “What do we need?” • “Why do we need it?” • “How are we going to pay for it?” • “How much will it cost to operate and maintain?” Answering these questions helps the City anticipate current and future cost pressures, manage available funding and make informed decisions about the infrastructure required to support a growing Kelowna.

Considerations The Capital Plan includes infrastructure projects and programs across 16 capital cost centres for the 2027–2036 planning period. Unless otherwise noted, all amounts are expressed in 2027 dollars and exclude inflation after 2027. Several documents have been used in its preparation. These include: • • • • • • • • •

Council priorities 2023 – 2027 10-Year Capital Plan 2026– 2035 (last year’s plan) 2040 Official Community Plan Imagine Kelowna 2040 Transportation Master Plan Pedestrian and Bicycle Master Plan 20 – Year Servicing Plan & Financing Strategy Infrastructure Master Plans and Asset Management Plans Airport Master Plan 2045

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Focus Areas Guided by Council and Corporate Priorities, capital investment focuses on the following areas: • Maintaining direction set by Council in last year’s Capital Plan. • Accelerating transportation & mobility infrastructure making it easier for people to get around by vehicle, transit, cycling and walking. • Providing community amenities like recreation and community centres to keep pace with Kelowna’s population growth and the evolving needs of its residents. • Parks acquisition and development with big investment plans for recreation and waterfront parks. • Airport development and expansion. • Reducing environmental footprint and future-proofing infrastructure to be more resilient in the face of changing climate. • Increased investment in stormwater infrastructure and flood protection. • Renewal of critical infrastructure.

Influencing Factors & Emerging Issues Evolving Growth Kelowna continues to grow and evolve, but at a slower pace than in recent years. With a population exceeding 170,000, the City is expected to experience continued, more moderate growth over the next two decades. This outlook provides an opportunity to carefully align the timing and scale of capital investment with changing community needs while continuing to renew existing assets and maintain reliable municipal services.

Renewal of Aging Assets The City has a robust asset management program that tracks the age, condition and criticality of City owned assets (i.e. civic buildings, roads, bridges, sewer, water infrastructure, etc.). Some of these assets are nearing the end of their service life and will need to be renewed to maintain service levels.

Inflation & Borrowing Costs Macroeconomic and trade uncertainty continues to affect the Capital Plan. While borrowing rates have stabilized below recent peaks, inflation risks remain and construction costs continue to be affected by tariffs, energy prices, labour availability and supply-chain disruptions. These pressures may increase material and equipment costs, affect bid pricing and procurement, and delay project delivery. The City will continue to update cost estimates, contingencies and project timing, and may phase or reprioritize investments to maintain affordability and financial sustainability.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

What We Are Doing The City is responding to these influencing factors through ongoing Council engagement, strategic partnerships, longrange planning, asset management and updated infrastructure standards. Together, these approaches help the City adjust investment priorities, improve project readiness and make informed decisions as conditions change.

Listening to Council Since taking office in 2022, Council has received regular information about how the Capital Plan is developed and has provided input on community priorities and capital investment decisions. Engagement occurs through quarterly financial performance and budget amendment reports, as well as the annual capital planning workshop.

Alternative Funding through Partnerships, Grants & Advocacy The City pursues grants, partnerships, other non-tax revenues and advocacy opportunities to advance Council and corporate priorities. Through the Intergovernmental Relations program, the City builds relationships with senior levels of government and advocates for policy changes and investments that support priority infrastructure and programs. This work helps position Kelowna as a strong partner for investments in sustainable growth, infrastructure renewal and evolving community needs. The City’s Partnerships Program builds relationships with businesses, non-profits, government agencies and academic institutions to support community facilities, programs and services; operate and maintain City-owned assets; and administer City funding. These partnerships expand the City’s capacity to deliver services and respond to community needs.

Planning for the Future The Capital Plan is informed by long-range plans, asset information and infrastructure standards that identify future needs, guide investment priorities and support coordinated project delivery. Official Community Plan (OCP) The 2040 OCP optimizes infrastructure investment through more compact development where services can be more efficiently used by a greater percentage of the community population. Transportation Master Plan (TMP) The 2040 TMP works with the OCP to support growth and help residents make more efficient and sustainable transportation choices through the development of reliable transit, improved road connections, comfortable bicycle routes and walkable neighbourhoods. Pedestrian and Bicycle Master Plan This Master Plan is based on the vision to make walking and cycling safer, convenient, and enhance practical modes of travel; to reduce motor vehicle use and resulting greenhouse gas emissions, and to increase opportunities for active living to improve community health and happiness. The vision, goals, and objectives are aligned with the City’s OCP. Parks Master Plan (in-progress) This Master Plan will establish priorities between five park types: city-wide, recreation, community, neighbourhood and linear. As well as identifying needs of different stakeholder groups and creating a plan for future park development and renewal moving forward.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Strategic Facilities Master Plan (in-progress) This Master Plan creates a vision and model to assess both infrastructure renewal and new construction to match growth, assess provision and distribution of built services and amenities across the City as well as prioritize needs across the facilities portfolio. Asset Management & Data-Driven Decisions The City’s asset management program uses asset information to support long-term infrastructure planning and timely renewal. This data-driven approach helps the City maintain reliable services, improve operational efficiency, extend asset service life and support long-term financial sustainability across its diverse infrastructure portfolio. Infrastructure Standards The City maintains design and construction standards to support durable, high-quality infrastructure that meets longterm service needs. The Subdivision, Development and Servicing Bylaw (Bylaw 7900) outlines these standards, , which are regularly reviewed and updated by a dedicated working group in consultation with key stakeholders and the community.

88% Citizen satisfaction in level & quality of City services

$2.94 Billion

33%

External Funding: To enhance & maintain public DCCs, grants & developer infrastructure services

58% Investment in Parks, Buildings, Airport & Transportation

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

2 Funded Projects Infrastructure Investment This Capital Plan forecasts $2.94 billion in infrastructure investment to maintain existing services and enhance service levels.

Enhance 31%

Maintain investments sustain current service levels and include infrastructure required to accommodate community growth, comply with regulations, replace aging equipment and renew existing assets. Enhance investments improve existing infrastructure or add new infrastructure that increases the level of service provided. Investments that maintain service levels account for 69% of the total Capital Plan, while the remaining 31% is allocated to investments that enhance service levels.

Maintain 69%

Figure 1. Enhance and Maintain investment %.

Cost Centre Forecast This $2.94 billion is spread across 16 infrastructure cost centres: • Transportation, Parks and Buildings cost centres account for 46% of overall investment to deliver on Council Priorities, invest in infrastructure renewal and meet community expectations. • Water, Wastewater, Storm Drainage and Solid Waste is 23% to meet regulatory requirements. • Airport is 12%. • Sport & Recreation is 9% • The remaining 10% supports Fire, Vehicles, Information Technology, Transit, Arts & Culture, Real Estate and Parking.

Wastewater 8%

Solid Waste 2%

Stormwater & Flood Protection 2%

Buildings 8%

Transportation 28%

Sport & Recreation 9%

Other 10%

Airport 12% Parks 10%

Water 11%

Figure 2. Investment in each cost centre.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Major Changes for Funded Projects Overall, the City’s infrastructure investment has increased $70 million from the previous plan. The primary drivers for the change include: • Updated design, costing, and construction estimates • Land acquisition requirements • Addition of construction scope or new project phases • Market and technical cost escalations The following table shows the City’s total investment for funded projects in each cost centre in this Capital Plan compared to the previous plan. Table 1. Summary of changes from the previous plan and this Capital Plan for funded projects ($ millions). Cost Centre

Previous Plan ($ million)

This Plan ($ million)

Difference ($ million)

Real Estate

$18

Buildings

$324

$244

($80)

Parks

$338

$298

($40)

Transportation

$708

$828

$120

Solid Waste

$69

$67

($2)

Stormwater & Flood Protection

$71

$60

($11)

Information Technology

$27

$39

$12

Sport & Recreation

$276

$258

($18)

Vehicle & Mobile Equipment

$54

$55

Fire

$57

$32

($25)

Airport

$323

$360

$37

Water

$269

$317

$48

Wastewater

$188

$222

$34

Parking

$68

$70

Arts & Culture

$22

$20

($2)

Transit

$53

$47

($6)

TOTAL

$2,865

$2,935

$70

City-Wide Capital Investment The following map provides a city-wide view of where planned capital investment will occur, highlighting the distribution of projects across Kelowna over the 10-year planning period.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

3 Funding Sources Funding Sources Funding for the Capital Plan comes from 4 primary sources totaling $2.94 billion. Approximately 33% of funding is from external sources comprised of Development Cost Charges, Grants from senior governments and Partners. City funding sources include General Taxation and Reserves and Borrowing totaling approximately 67%.

General Taxation and Reserves General Taxation and Reserves fund approximately $1,198 million (41%) of the plan. These sources are grouped due to similarities in funding flexibility permitting the City discretion in meeting its strategic financial plan to help ensure equity between current and future taxpayers. The primary sources in the Reserve category include the General Fund, Restricted Reserves and the user pay funded Water, Wastewater Utilities and Airport.

Borrowing

Developer $66M 2%

Grant $239M 8%

Development Cost Charges $662M 23%

Taxation &Reserves $1,198M 41%

Borrowing $770M 26%

Figure 3. Funding sources for 10-Year Capital Plan ($ millions). Total $2.94 billion

Debenture borrowing of $770 million (26%) is forecasted to fund major capital projects such as the Building Stronger Kelowna suite of recreation projects. The exact timing and allocation of debt will be evaluated continually as projects near phases of significant cash outlay and monitored against targeted Council approved debt limits and prevailing interest rates.

Development Cost Charges Development cost charge (DCC) funding accounts for $662 million (23%) of all capital investment. Eligible road, storm, sewer, water and park projects align with the 20-Year Servicing Plan & Financing Strategy and growth forecast in the 2040 Official Community Plan.

Grants A total of $239 million (8%) in this Capital Plan is projected to fund the plan from various provincial and federal grant programs; these includes project specific grants such as the Disaster Mitigation Assistance Fund for works along Mill Creek, Swim Drink Fish Canada grant for the City Park Swim Venue and assumed senior grant funding for the Clement Crosstown Connector to the more generalized Federal infrastructure funding streams like the Community Works Fund.

Developer A total of $66 million (2%) Developer funding is projected to fund the Capital Plan. Developer funding is included only where a future project financing arrangement has been secured or is considered a plausible outcome that would result in a beneficial service delivery standard for the city’s residents. This version of the Capital Plan identifies $33.8 million of unsecured developer contribution toward the MNP Place Expansion and $23 million in forecasted developer frontage fees for transportation upgrades. Inclusion of unsecured funding is not a significant portion of the City’s long-term financing strategy.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

4 Projects in the Plan Capital Project Delivery The Capital Plan supports the infrastructure needed to accommodate growth, renew existing assets and maintain City services over the next decade. As shown in Figure 4, spending is concentrated in the early years, reflecting delivery of the Building a Stronger Kelowna projects and other major strategic investments. Once these projects are completed in the first few years of the Plan, annual capital spending is expected to stabilize at approximately $250 million. This spending profile advances priority projects while supporting a sustainable long-term investment program and maintaining flexibility to respond to emerging infrastructure needs and strategic priorities.

Figure 4. Forecasted Capital Plan investment by year ($ millions).

$600

$550

10 Yr Capital Plan

$500 $420

$400

2026 Projected

$363 $319

$314

$337

$300

$256

$226

$200

$191

$198

2034

2035

$180

$100 $0 2026

2027

2028

2029

2030

2031

2032

2033

2036

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Capital Cost Centres The Capital Plan includes funded programs and projects across 16 capital cost centres. Table 2 summarizes planned investment by cost centre and expenditure timing over the 2027–2036 planning period. The subsections that follow provide further detail on the key programs and projects within each cost centre. Table 2. Summary By Capital Cost Centre ($ millions).

Capital Cost Centre ($Millions)

2027

2028

2029

2030

2031

20322036

Total

Real Estate

$18

Buildings

$28

$24

$26

$20

$121

$244

Parks

$80

$41

$25

$20

$24

$108

$298

Transportation

$101

$95

$39

$70

$100

$424

$828

Solid Waste

$11

$10

$25

$67

Stormwater & Flood Protection

$14

$11

$15

$60

$11

$12

$39

Sport & Recreation

$125

$46

$10

$70

$258

Vehicle & Mobile Equipment

$27

$55

Fire

$12

$32

Airport

$77

$46

$14

$38

$54

$131

$360

Water

$46

$38

$31

$29

$33

$139

$317

Wastewater

$35

$19

$22

$24

$29

$93

$222

Parking

$13

$14

$18

$20

$70

Arts & Culture

$14

$20

Transit

$23

$47

Total

$550

$363

$226

$319

$314

$1,162

$2,935

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Real Estate Investment focuses on land that meets the characteristics and parameters identified in the City of Kelowna's Land Strategy. Potential considerations in the purchase of specific lands include 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. Overall, investment in Real Estate infrastructure is $18 million.

Real Estate Investment ($ millions) Maintain

Enhance

18.0

Table 3. Real Estate Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s)

2027

2028

2029

2030

2031

2032-2036

10-Year Total

10 Yr Category Maintain N/A Enhance General Land Acquisition TOTAL

$1,800 $1,800

$9,000 $9,000

$18,000 $18,000

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Buildings This is a large investment area with a total forecast at $244 million. There is a large investment planned over the next 10 years supporting building renewal. Big projects include: • •

Building Systems and Infrastructure Growth & Renewal - $204 million Yards Renovation and Renewals - $23 million

Buildings Investment ($ millions) Maintain

211.8

Enhance

32.2

100

150

200

250

Table 4. Buildings Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s)

2027

2028

10 Yr Category Maintain Building Systems and Infrastructure $25,895 $22,175 Growth & Renewal Park Washrooms Growth & Renewal $200 $125 Stadium / Sports Field Lighting Renewal Enhance 1005 Ethel Decanting Facility $1,700 $1,300 Fleet EV Charging Infrastructure $300 $700 Installation Yards Renovation and Renewals $250 TOTAL $28,345 $24,300

2029

2030

2031

2032-2036

10-Year Total

$17,085

$12,910

$12,860

$112,750

$203,675

$125 $1,350

$900

$5,425 -

$5,875 $2,250

$5,500

$8,500

$50

$1,200

$24,110

$12,250 $26,110

$7,500 $20,410

$2,500 $120,725

$22,500 $244,000

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Parks In the next 10-years, the City plans to invest $298 million in parks creating vibrant, animated spaces for the community to connect, enjoy and experience. Big Park projects in the next 10-years include: • • • • •

Parkland Acquisition - $135 million City Park/Kerry Park Upland Upgrades - $35 million Parkinson Recreation Park - Field Realignment (BSK) - $23 million Glenmore Recreation Park - $23 million Kelowna's Newest Waterfront Park Enhancements - $13 million

Parks Investment ($ millions) Maintain

228.2

Enhance

70.0

100

150

200

250

Table 5. Parks Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s)

2027

2028

2029

10 Yr Category Maintain Glenmore Recreation Park $7,500 $7,500 $7,500 Park Development $5,210 $3,640 $938 Park Infrastructure and Facilities Growth $2,022 $2,383 $2,100 & Renewal Parkinson Recreation Park - Field $19,046 $4,116 Realignment (BSK) Parkland Acquisition $9,145 $14,000 $14,000 Rutland Recreation Park - Field $3,180 Realignment (BSK) Enhance Art Walk Expansion $1,263 $110 City Park/Kerry Park Upland Upgrades $24,150 $4,900 Kelowna's Newest Waterfront Park $6,267 $988 $833 Enhancements Manhattan Point Upgrades & Expansion $100 Rotary Beach Improvements $800 $1,000 Rutland Lions Park Upgrades $892 Strathcona Beach Park Improvements $785 $2,380 TOTAL $80,360 $41,017 $25,371

2030

2031

2032-2036

10-Year Total

$2,956

$2,965

$7,275

$22,500 $22,984

$2,011

$2,095

$10,579

$21,190

$23,162

$14,000

$70,000

$135,145

$3,180

$6,201

$1,373 $35,251

$682

$1,825

$2,690

$13,285

$1,675 $1,600 $19,649 $24,160

$4,778 $6,115 $107,638

$6,553 $9,515 $892 $3,165 $298,195

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Transportation Transportation is a Council priority and the largest infrastructure investment area at $828 million. The Cities investment in transportation is to make it easier for people to get around by vehicle, cycling and walking. Notable projects include: • • • • • • •

Clement Avenue Extension - $210 million Active Transportation Corridors - $109 million Intersections Improvements - $87 million Hollywood Rd - $51 million Burtch Rd - $34 million Glenmore Rd - $31 million Neighbourhood Street Urbanization- $30 million

Transportation Investment ($ millions) Maintain

544.2

Enhance

283.9

100

200

300

400

500

600

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Table 6. Transportation Capital Programs and Projects summary for 2027-2036. 2027

2028

2029

2030

2031

2032-2036

10-Year Total

$414

$730

$10,900

$12,044

$3,000

$525

$3,525

$150

$7,400

$5,300

$12,850

$760

$925

$12,030

$5,900

$19,615

$280

$1,100

$10,000

$4,500

$15,880

$70

$195

$970

$3,500

$4,735

$1,084

$3,809

$2,155

$1,745

$3,570

$5,375

$17,738

Bridge Renewal Program $650 Bridges - KLO Bridge Replacement $750 Intersections Improvements $13,910 Road Network Growth & Renewal $9,199 Roads - Benvoulin Upgrades Roads - Burtch Rd Upgrades $17,000 Roads - Commonwealth Rd (Hwy 97 - Jim $8,000 Bailey) Upgrades Roads - Glenmore Rd Upgrades $550 Roads - Gordon Dr Upgrades $140 Roads - Hollywood Rd Upgrades $16,485 Roads - Lakeshore Rd Upgrades $6,989 Roads - Richter St Upgrades $8,270 Roads - Stewart Rd Upgrades Roads - Sutherland Rd Upgrades $50 Enhance Active Transportation Upgrades $4,135 Neighbourhood Street Urbanization $3,400 Road Network Upgrades $1,341 Roads - Beaver Lake Upgrades $250 *Roads - Clement Crosstown Connector $5,615 Urban Centre Improvements TOTAL $101,318

$650 $9,280 $9,681 $1,210

$1,270 $880 $8,302 -

$1,390 $8,580 $8,821 $250

$1,390 $12,380 $10,428 $1,680

$7,955 $42,000 $109,091 $8,301 $13,804

$13,305 $750 $87,030 $155,522 $8,301 $33,944

$4,050

$12,050

$420 $140 $5,962 $10,452 $10,020 $530

$2,975 $5,000 -

$450 $320 -

$29,779 $28,020 $5,400 $15,000

$30,749 $280 $50,917 $20,416 $23,290 $5,720 $15,580

$1,094 $1,420 $1,974 $1,605 $12,758 $4,655 $3,020 $3,840 $2,500 $12,500 $851 $1,451 $1,240 $1,136 $5,820 $350 $22,615 $4,500 $23,200 $42,550 $111,520 $200 $700 $700 $1,400 $5,600 $94,738 $38,868 $69,870 $99,539 $423,848

$22,986 $29,915 $11,839 $600 $210,000 $8,600 $828,181

$ thousands (in 2027 $’s) 10 Yr Category Maintain Active Transportation - Abbott St Active Transportation - Ethel St (Rail Trail - Cawston) Active Transportation - Glenmore Rd (Clement - Glenmeadows) Active Transportation - Hollywood Rd Active Transportation - Leon Ave & Lawrence Ave Active Transportation - Pandosy Village Active Transportation Growth & Renewal

*Roads - Clement Crosstown Connector: Contingent on securing external funding for 66% of project construction costs.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Solid Waste Efficient and effective daily operations and long-range capital planning ensures the Glenmore Landfill will continue to serve Kelowna and surrounding communities well into the future. That is why $67 million worth of capital investment is planned in the next 10 years to ensure the site is future ready. Notable projects include: • • •

Solid Waste Infrastructure and Facilities Growth & Renewal - $42 million Composting System Expansion - $14 million Surface Water Bypass - $7 million

Solid Waste Investment ($ millions) Maintain

59.1

Enhance

7.7

Table 7. Solid Waste Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Composting System Expansion Solid Waste Equipment Growth & Renewal Solid Waste Infrastructure and Facilities Growth & Renewal Enhance Landfill Increased Automation Surface Water Bypass TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$4,600

$3,900

$5,600

$14,100

$315

$415

$315

$1,575

$3,250

$3,400

$4,550

$1,660

$8,110

$1,360

$22,650

$41,730

$200 $8,515

$125 $2,000 $10,990

$2,000 $9,575

$750 $9,175

$2,000 $3,675

$125 $500 $24,850

$250 $7,450 $66,780

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Stormwater & Flood Protection Investment in drainage infrastructure will utilize natural and engineered solutions to improve resiliency, flood mitigation and water quality which are increasingly important in the face of a changing climate. Recent capital investment to improve Mill Creek capacity and divert more flow to Mission Creek through an upgraded diversion structure prevents Mill Creek from spilling its banks during periods of heavy rainfall. To keep going with this critical work, Stormwater & Flood Protection plans to invest $60 million in the next 10 years, which includes: • • •

Stormwater Infrastructure Renewal - $24 million Flood Protection - Mill Creek - $12 million Flood Protection - Brandt Creek - $10 million

Stormwater & Flood Protection Investment ($ millions) Maintain

24.4

Enhance

36.3

Table 8. Stormwater & Flood Protection Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Stormwater Infrastructure Renewal Enhance Flood Protection - Brandt Creek Flood Protection - Gopher Creek Flood Protection - Mill Creek Stormwater Infrastructure Enhancements Stormwater Quality Enhancements TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$5,666

$2,055

$3,695

$2,068

$1,928

$8,943

$24,355

$7,275

$200 $750

$1,300 $3,965

$3,800 $50

$3,500 -

$1,000 $2,000 -

$9,800 $2,000 $12,040

$748

$3,825

$1,775

$350

$500

$2,500

$9,698

$400 $14,089

$1,443 $8,273

$10 $10,745

$6,268

$45 $5,973

$855 $15,298

$2,753 $60,646

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Information Technology Information technology is a small but important investment area as the City continues its digital-first transformation. To get there, investment of $39 million is planned in the next 10 years. As the City embraces more cloud-based technology, the focus is in: • • •

Major Systems Enhancements - $20 million Front Office Equipment - $9 million Major Systems Growth & Renewal - $7 million

IT Investment ($ millions) Maintain

19.1

Enhance

19.6

Table 9. Information Technology Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Communication Systems Front Office Equipment Major Systems Growth & Renewal Server & Data Storage Enhance Major Systems Enhancements TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$150 $1,030 $1,393 $180

$370 $1,045 $450 $130

$200 $780 $100 $80

$120 $878 $50 $80

$130 $878 $50 $90

$660 $4,584 $5,250 $450

$1,630 $9,195 $7,293 $1,010

$7,850 $10,603

$5,856 $7,851

$1,285 $2,445

$2,050 $3,178

$1,550 $2,698

$1,050 $11,994

$19,641 $38,769

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Sport & Recreation Investment focuses on new and enhancements to the City’s Sport & Recreation portfolio. The City's $258 million investment in this area supports opportunities for enhanced mental, physical, and social well-being, helping to build strong families and healthy communities. The large area of investment is the redevelopment of the Parkinson Recreation Centre. Notable projects include over the next 10 years: • • • • •

Parkinson Recreation Centre Replacement (BSK) - $89 million MNP Place – Expansion - $85 million Apple Bowl Upgrades - $25 million Glenmore Activity Centre (BSK) - $16 million Mission Activity Centre (BSK) - $12 million

Sport & Recreation Investment ($ millions) Maintain

91.1

Enhance

166.7

100

150

200

Table 10. Sport & Recreation Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s)

2027

2028

10 Yr Category Maintain Parkinson Recreation Centre $59,458 $28,388 Replacement (BSK) Recreation Equipment and $195 $195 Infrastructure Growth & Renewal Enhance $22,503 $2,722 *Apple Bowl Upgrades Capital Opportunities & Partnerships $3,550 $3,150 Sport & Recreation UBCO Glenmore Activity Centre (BSK) $12,385 $3,881 Mission Activity Centre (BSK) $10,878 $751 Mission Recreation Park Enhancements $5,226 $4,600 *MNP Place - Expansion $500 $10,234 $1,827 Rutland Lions Activity Centre TOTAL $124,929 $45,514

2029

2030

2031

2032-2036

10-Year Total

$1,305

$89,151

$195

$975

$1,950

$25,225

$6,700

$8,000 $9,500

$69,500 $69,695

$7,000 $7,195

$975

$16,266 $11,629 $9,826 $85,000 $12,061 $257,808

*Apple Bowl Upgrades: Contingent on securing 36% external funding for project costs. *MNP Place - Expansion: Contingent on securing 40% external funding for project costs.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Vehicle & Mobile Equipment This cost centre funds all the City’s vehicles and equipment except for Fire and Airport, which fund their own vehicles and equipment. Through a $55 million investment, the City will maintain a reliable, sustainable fleet and continues to modernize it by going Green to reduce GHGs by purchasing EV, hybrid or hydrogen vehicles where available. The large capital investments will go towards: • •

Vehicles & Equipment – Renewal - $49 million Vehicles & Equipment – Growth - $5 million

Vehicle & Mobile Equipment Investment ($ millions) Maintain

54.3

Enhance

0.5

Table 11. Vehicle & Mobile Equipment Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Fleet Management System Replacement Vehicles & Equipment - Growth Vehicles & Equipment - Renewal Enhance Police Patrol Vessel TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$168

$505

$324

$997

$1,412 $4,978

$375 $4,500

$375 $5,000

$1,875 $25,000

$4,787 $48,478

$500 $7,058

$5,380

$4,875

$5,199

$5,375

$26,875

$500 $54,762

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Fire The well-established capital program at the Fire Department ensures fire trucks, equipment and communication systems remain up-to-date to keep firefighters and the community safe. It is a relatively small capital program as most costs are operational. Investment in the Fire cost centre is forecasted at $32 million. Big projects include: • •

Fire Vehicles and Equipment Growth & Renewal - $20 million Glenmore Protective Services Campus - $8 million

Fire Investment ($ millions) Maintain

31.4

Enhance

0.4

Table 12. Fire Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Communications Systems Fire Dispatch Equipment Growth & Renewal Fire Vehicles and Equipment Growth & Renewal Glenmore Protective Services Campus Enhance Next Generation 911 Implementation TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$1,099

$12

$168

$28

$1,319

$361

$911

$154

$20

$1,028

$2,474

$229

$6,002

$248

$2,117

$202

$11,092

$19,890

$7,400

$300

$7,700

$210 $9,299

$7,225

$260

$2,271

$113 $503

$113 $12,261

$436 $31,819

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Airport Anticipated investment in infrastructure and equipment over the next 10 years of $360 million ensures additional air service can be accepted to support the continued growth of the regional economy. Significant projects over the next 10 years include: • • • •

Airport Terminal Building Expansion Phase 2 - $139 million Airside Pavement Rehabilitation and Expansion - $118 million Soaring Beyond 2.5 Million Passengers AIF - $48 million Lifecycle Replacement & Upgrades - $17 million

Airport Investment ($ millions) Maintain

144.8

Enhance

215.6

100

150

200

250

Table 13. Airport Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Airside Pavement Rehabilitations & Expansion Car Rental Quick Turn Around Facility Lifecycle Replacement & Upgrades Enhance Airport Airside Equipment Airport Terminal Building Expansion Phase 2 Carbon Neutral Initiatives Land Development Mill Creek Flood Protection Soaring Beyond 2.5 Million Passengers AIF TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$38,150

$24,995

$340

$54,470

$117,955

$680 $4,090

$2,390

$1,795

$9,360 $1,545

$1,295

$5,725

$10,040 $16,840

$1,335

$1,650

$90

$1,320

$90

$7,545

$12,030

$3,640

$4,160

$18,935

$51,950

$60,070

$138,755

$430 $655 $2,330

$3,240 $155 -

$1,835 $1,870 -

$1,835 -

$850 -

$3,620 -

$11,810 $2,680 $2,330

$25,730

$13,375

$4,230

$4,690

$48,025

$77,040

$45,805 $14,320

$131,430

$360,465

$37,685 $54,185

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Water Infrastructure investment is forecasted at $317 million that focuses on delivering high-quality drinking water and reliable irrigation water to all City customers. This is evident in the transition of the Glenmore Ellison Improvement District (GEID) to the City’s water utility which improves supply and resiliency through better interconnectivity and interoperability of both systems. In the next 10 years, large projects include: • • •

Potable Water Network Growth & Renewal - $211 million GEID Infrastructure Growth & Renewal - $38 million Non-Potable Water Network Growth & Renewal- $18 million

Water Investment ($ millions) Maintain

305.5

Enhance

11.0

100

200

300

400

Table 14. Water Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Dam Renewal Fire flow Network Upgrades & Growth GEID Infrastructure Growth & Renewal Non-Potable Water Network Growth & Renewal Potable Water Network Growth & Renewal Water Integration Program Water Treatment Growth & Renewal Enhance Non-Potable System Upgrades - New Reservoir Water Network Enhancements TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$2,200 $1,860 $2,435

$2,500 $1,490 $3,510

$1,000 $1,240 $3,255

$1,000 $1,240 $4,930

$1,000 $1,240 $3,000

$5,000 $6,200 $21,000

$12,700 $13,270 $38,130

$2,050

$2,075

$2,100

$7,500

$17,925

$29,926

$23,153

$20,485

$19,160

$23,510

$95,150

$211,384

$2,580 $3,530

$200 -

$2,000 -

$1,800 -

$2,000 -

$8,580 $3,530

$750

$4,400

$5,150

$850 $29,280

$450 $33,100

$2,590 $139,440

$5,880 $316,549

$700 $700 $590 $46,031 $38,028 $30,670

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Wastewater The City treats close to 40 million litres of wastewater from homes, businesses, and industry each day. With the community’s expected growth, this volume will continue to increase. The focus is to ensure environmental stewardship, community preparedness and resiliency while meeting regulatory requirements. That is why the City plans to invest $222 million in the next 10 years. Major investment includes: • •

Wastewater Network Growth & Renewal - $115 million Wastewater Treatment Growth & Renewal - $102 million

Wastewater Investment ($ millions) Maintain

219.3

Enhance

2.6

100

150

200

250

Table 15. Wastewater Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Regional Compost Facility & Equipment Renewal Wastewater Network Growth & Renewal Wastewater Treatment Growth & Renewal Enhance Regional Compost Facility Enhancements Wastewater Network Upgrades TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$155

$775

$1,550

$25,158

$17,124

$10,650

$11,250

$8,550

$42,750

$115,482

$9,049

$1,200

$11,040

$12,500

$20,500

$48,000

$102,289

$560

$1,000 $92,525

$2,000 $221,881

$200 $35,122

$200 $200 $18,679 $22,045

$200 $200 $24,105 $29,405

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Parking Investment focuses on providing state-of-the-art, well-maintained parking facilities. New parkades are planned for South Pandosy and Downtown in response to rapid growth. Overall, investment in Parking infrastructure is $70 million with large investment in: • •

Downtown Parkade - $41 million South Pandosy Parkade - $20 million

Parking Investment ($ millions) Maintain

69.3

Enhance

0.9

Table 16. Parking Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Downtown Parkade Parking Infrastructure Growth & Renewal South Pandosy Parkade Enhance Electric Vehicle Infrastructure TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$200

$1,000

$5,000

$17,400

$41,000

$700

$550

$3,100

$500

$2,500

$7,850

$200

$3,200

$8,500

$20,400

$100 $1,000

$100 $4,050

$100 $12,700

$100 $100 $14,100 $18,000

$400 $20,300

$900 $70,150

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Arts & Culture This investment focuses on enhancing and maintaining equipment at the cultural facilities through the City and front of house renovations at the Kelowna Community Theatre. These enhancements and maintenance contribute to the goal of being a community with a rich variety of high-quality arts, culture and heritage experiences that embraces and celebrates diversity, is open and welcoming to all. Investment in the Arts & Culture cost centre is forecasted at $20 million major investment includes: • •

Kelowna Community Theatre - Front of House Renovation - $15 million Cultural Facilities Equipment- $4 million

Arts & Culture Investment ($ millions) Maintain

4.2

Enhance

15.9

Table 17. Arts & Culture Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Cultural Facilities Equipment Renewal Enhance Kelowna Community Theatre - Front of House Renovation Kelowna Performing Arts Centre TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$205

$438

$485

$380

$760

$1,900

$4,168

$1,500

$13,500

$15,000

$400 $605

$500 $2,438

$13,985

$380

$760

$1,900

$900 $20,068

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Transit Transit provides numerous benefits to the community including an affordable transportation option that helps reduce congestion and emissions, as our community grows. Overall, investment in Transit infrastructure is $47 million with large investment in: • • •

Orchard Park Exchange- $14 million Highway 97 Dedicated Transit Lanes - $12 million YLW Transit Hub - $3 million

Transit Investment ($ millions) Maintain

27.5

Enhance

19.5

Table 18. Transit Capital Programs and Projects summary for 2027-2036. $ thousands (in 2027 $’s) 10 Yr Category Maintain Mission Recreation Transit Exchange Improvements Orchard Park Transit Exchange Improvements Transit Improvements Enhance Highway 33 Transit Infrastructure Highway 97 Dedicated Transit Lanes Mobility Hubs at Transit Exchanges Transit Exchanges - Driver Facilities YLW Transit Hub TOTAL

2027

2028

2029

2030

2031

2032-2036

10-Year Total

$100

$250

$5,250

$8,350

$13,850

$778

$942

$2,232

$488

$3,452

$5,704

$13,596

$3,100 $4,228

$210 $840 $30 $30 $7,302

$1,680 $450 $450 $4,812

$488

$294 $3,360 $7,106

$1,559 $6,440 $1,050 $23,103

$2,063 $12,320 $1,530 $480 $3,100 $47,039

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

Operations & Maintenance Impacts Infrastructure investment decisions consider asset lifecycle costs which include both capital and operating expenses. Municipal infrastructure is designed to last a long time, varying from 20 – 100 years, and the operating expense can amount to 70 - 80% of the lifecycle cost. This is why it is important to consider operational impacts when making capital investment decisions. Of the total infrastructure investment forecast in the 10-Year Capital Plan, approximately $685 million relates to new or enhanced infrastructure expected to require additional operating and maintenance support. By 2036, the associated operating impacts for the General Fund and Utilities are forecast to require approximately $19.5 million in additional annual funding, averaging $1.95 million per year over the 10-year period. General Fund cost centres will be funded primarily through taxation, while Utilities, Parking and Solid Waste will address these costs through their respective funding models. Renewal of existing infrastructure is assumed to have minimal operational impacts because operational budgets are currently in place to support existing infrastructure. Table 19. Forecasted operational and maintenance (O&M) impacts for each service area. Cost Centre

Enhanced Service Level Capital Investment ($ million)

O & M Forecast by 2036 ($ million)

Real Estate

$18 .0

$0.00

Buildings

$32.2

$3.08

Parks

$70.0

$2.16

Transportation

$283.9

$3.30

Solid Waste (Self Funded)

$7.7

$0.25

Stormwater & Flood Protection

$36.3

$0.63

Information Technology

$19.6

$1.02

Sport & Recreation

$166.7

$6.06

Vehicles & Equipment

$0.5

$0.12

Fire

$0.4

$0.20

Water (Utility)

$11.0

$0.42

Wastewater (Utility)

$2.6

$0.21

Arts & Culture

$15.9

$0.89

Transit

$19.5

$0.89

Parking (Self Funded)

$0.9

$0.22

$685.3

$19.5

Note: Information for Airport cost centre is not included.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

5 Projects not in the Plan Future Capital Plans The Capital Plan includes projects that advance Council priorities, respond to the needs of a growing community and have a high degree of planning and funding certainty. Other projects remain in the pre-planning stage, including initiatives identified through the City’s infrastructure master plans and other work currently underway. Once this planning is complete, projects will be assessed and prioritized based on service-level obligations before being brought forward to Council for consideration for inclusion in a future Capital Plan. The following table summarizes the major projects not currently included in the Capital Plan and identifies their next steps. Table 20. Major projects details currently not in the Capital Plan. Project

Current Status

Next Step

Transit Operations & Maintenance Facility

Planning & design led by Infrastructure BC, in partnership with the City & BC Transit. Community Task Force on the Performing Arts in-progress. Actively working with partners to expand biosolid management. Activity working on Strategic Facilities Master Plan to identify staff accommodation needs. Updating service level master plans to identify needs inprogress.

Determined by Partners. Include in Operating Budget. Construct of Hollywood Rd. Feasibility study and design.

Kelowna Performing Arts Centre Wastewater Digester Facility Staff Accommodation Space

Impacts from Service Level Master Plans

Ongoing monitoring. Continued planning.

Ongoing development of service master plans and project identification.

10-YEAR CAPITAL PLAN 2027-2036

CITY OF KELOWNA

City of Kelowna 1435 Water Street Kelowna, BC V1Y 1J4 250-469-8500 ask@kelowna.ca kelowna.ca/infrastructureplanning