Vernon Council has endorsed the 2026–2030 Financial Plan, approving a total provisionary budget tax rate increase of 9.73 per cent for 2026—down from the originally proposed 10.24 per cent. The 2026 budget focuses on maintaining essential services and meeting long-term financial commitments, including debt servicing for the Active Living Centre.
Outstanding work by City staff
Council commends City staff for their hard work and approach to keeping operational costs as low as possible. The operational increase for 2026 is 2.88 per cent, well below inflation and wage agreements, thanks to efficiencies and solutions that protect service levels while minimizing impacts on taxpayers.
“The 2026 Budget was shaped by our community’s concerns about affordability while ensuring we continue to meet the long-term needs of our city,” said Mayor Victor Cumming. “Council worked diligently to reduce the increase wherever possible, and staff did an exceptional job finding efficiencies. This budget reflects balance—meeting today’s needs while investing in the ALC.”
Postponing the Infrastructure Levy
Council also voted to postpone the proposed 0.96 per cent Infrastructure Levy for 2026, recognizing financial pressures on residents and prioritizing commitments already approved by voters for the Active Living Centre. Major infrastructure investments are still moving forward, including asset replacement projects such as 43rd Avenue underground upgrades, a new multi-use path, road improvements, and a roundabout to match the ALC opening in 2026.
Key budget drivers
- Operational requirements: 6.23 per cent total operational increase, which includes:
- 2.88 per cent to maintain existing service levels
- 2.15 per cent to offset reduced investment income
- 1.35 per cent for RCMP contract and support costs
- 0.36 per cent for Council-approved service enhancements
- 0.12 per cent for projects including medical screening for Vernon Fire Rescue Services, adopting a new emergency dispatch for Bylaw officers, and extended washroom maintenance at DND Fields
- 0.37 per cent additional contract obligations
- -1.0 per cent non-market change revenue
- Active Living Centre commitment: 3.5 per cent annual tax commitment to fund the $121 million in debt, approved by voters in 2022, continues annually through 2027 before decreasing to approximately 2.8 per cent in 2028. With this final increase, the full amount of the debt servicing will have been covered by taxation.
Council also approved two additional RCMP officers and a website replacement for vernon.ca, both funded through reserves, with the website partially funded through the provincial COVID-19 restart grant. These initiatives do not impact taxation.
Investing in the community
The 2026 budget supports projects and services that address the needs of a growing community, including:
- Enhancing public safety and reducing crime
- Easing traffic congestion and expanding active transportation networks
- Increasing housing options and improving affordability
- Upgrading recreation facilities and sports fields
- Strengthening climate resilience through wildfire and flood mitigation initiatives
Input gathered through surveys, open houses, and online engagement helped guide Council’s discussions and priority setting. Residents emphasized the importance of maintaining service levels, investing in core infrastructure, and prioritizing public safety, parks and green space, housing, and affordability. A summary of this feedback is available in the What We Heard report online at Engage Vernon.
For more information on the 2026–2030 Financial Plan and the 2026 Budget, visit engagevernon.ca/budget.