The City of Kelowna will require nearly $1.5 billion in infrastructure investment over the next 10 years

$1.5B in capital projects

The City of Kelowna says it will need to find nearly $100 million in order to construct priority projects through its 10-year capital plan.

The preliminary 10-year capital plan, which will be presented to city council Monday morning, has increased by $98 million over dollar figures in the previous plan.

In his report, infrastructure engineering manager Joel Shaw says several factors contributed to the increased cost.

"These include the continued financial impacts of the COVID-19 pandemic, construction and land cost escalation, community demand for more and enhanced services, and greater need to replace aging assets and make them more resilient to climate change," writes Shaw.

"These impacts have caused cost and timing changes for some of the funded projects, or Priority 1’s (P1), as well as the unfunded projects, or Priority 2’s (P2)."

The overall cost of the projected Priority 1 projects is pegged at $1.488 billion.

These include $347 million for transportation, $240 million for buildings and $226 million for parks.

"Buildings increased by $35 million, largely related to cost increases for the Parkinson Recreation Centre replacement."

Shaw says volatility, particularly in the building sector is driving prices up a lot.

As a result of funding, timing for nine projects have been modified. Future phases of the Glenmore Recreation Park construction, Phase 3 of the Casorso Active Transportation project and airport hotel and parkade development have all been moved up while six projects will now take place later than first anticipated.

Of the $1.488 billion, general taxation accounts for just 11 per cent, while the yearly infrastructure levy accounts for another four per cent of the overall cost.

Reserves, grants, user fees and borrowing make up a majority of the monies needed while development cost charges contributed through new construction accounts for 22 per cent.

The final 10-year capital plan will be presented as part of the city's overall 2022 budget deliberations scheduled for Dec. 9.

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