Major Spending in Greater Vernon

Who Built What and Who Pays?

VERNON, B.C. February 10 2026 - Over the past decade, local governments in Greater Vernon and the North Okanagan have undertaken a wide range of infrastructure, recreation, and community projects.

Some projects were required by aging assets or provincial standards, while others were discretionary enhancements.

These investments have contributed to rising property taxes as annual spending has frequently exceeded regular revenue streams (property taxes, utility fees, grants), requiring greater use of borrowing, reserves, and tax increases to close the gap.

City Crews Repairing a Watermain Break

A key mechanism intended to offset growth-related costs is Development Cost Charges (DCCs), fees charged on new residential, commercial, and industrial developments to help pay for the additional infrastructure (roads, water, sewer, parks, etc.) that growth demands.

In Greater Vernon, DCCs are collected by the City of Vernon, District of Coldstream, and RDNO (for Greater Vernon services) and are meant to shift some infrastructure costs onto developers and new property owners.

However, DCCs only cover a portion of costs, and when housing starts or population growth slow, as they have in recent years, the revenue from DCCs falls short of projections, leaving existing taxpayers to cover more through property taxes and debt servicing.

Here’s a breakdown by initiating entity and area, with verified costs, funding sources, and who ultimately bears the burden.

City of Vernon: Voter-Approved and Council-Driven Projects, Significant Taxpayer Reliance

Vernon’s annual operating budget (day-to-day services including police, fire, parks, and administration) now exceeds $120 million. Annual capital spending (roads, facilities, renewals) typically ranges $20–$30 million, layered on top of operating costs. Long-term asset replacement needs are estimated in the $2–$3 billion range over the coming decades.

Major Projects Initiated by Vernon

• Vernon Active Living Centre (ALC)

Total capital cost: $119,826,012 (final target, under original $121 million borrowing cap; enhancements pushed maximum envelope to $135.9 million).

• Approval: 2022 voter referendum. Construction: 2023–2026 (soft opening expected fall 2026).

  
  

  Funding: Voter-approved borrowing, reserves, grants.

  
  

  Who pays: Vernon taxpayers via property taxes (annual debt servicing contributes ~3.5% to the tax rate through 2027). Ongoing operations add to the city’s $120 million+ annual budget, no DCCs apply since this is not growth-related infrastructure.

  
  

• Polson Park Vernon Creek Naturalization (Phases 1–2)

  
  

  Total cost: $8.96 million ($3.8 million Phase 1, $5.16 million Phase 2).

  
  

  Funding: Grants + city reserves/casino funds.

  
  

  Who pays: Primarily grants and reserves; ongoing maintenance via general taxes.

  
  

• Road & Transportation Upgrades

  
  

  Annual capital: $20–$30 million. Includes roundabouts (e.g., 39th Ave/Pleasant Valley), multi-use paths, intersections, 43rd Ave corridor, and 170+ projects from the 20-year Transportation Plan.

  
  

  Funding: Taxes, reserves, provincial grants, and DCCs from new development.

  
  

  Who pays: Existing taxpayers cover the bulk, with DCCs helping offset costs tied to new subdivisions, but slower growth means less DCC revenue than anticipated.

  
  

• Okanagan Landing Sewer Extensions & Upgrades

  
  

  Phased allocation: $1.2 million per year; total multi-million range ($12 million over 10+ years).

  
  

  Funding: Municipal fees on benefiting properties, utility reserves, and DCCs from new connections.

  
  

  Who pays: Benefiting properties and new developments via fees and DCCs; existing taxpayers bridge any shortfalls.

  
  

• Other Notable Items

  
  

  Kal Tire Place renewals ($1–$2 million per major item); cemetery/columbarium; drainage/storm works ($5–$10 million phased); building/facility upgrades.

  
  

  O’Keefe Ranch: City provides ~$150,000 annual operational support (recent grants/requests); society covers most capital.

  
  

  Downtown murals: $100,100 estimated repair in 2022 (from dedicated reserve).

  
  

  Who pays: General taxes/reserves for maintenance and operations.

District of Coldstream: Growth-Related and Amenity Projects, Grant-Supported but Ongoing Costs

Coldstream’s annual revenues fall in the $20–$30 million range, with occasional surpluses from building permits and grants. Projects add long-term operating costs, and slower growth has amplified tax pressures (e.g., 9.44% in 2025, 8.72% in 2026).

Major Projects Initiated by Coldstream

• Kalamalka Lake Pier (Kal Pier)

  
  

  Total cost: $550,416 (original contract ~$516,416 + additional ~$34,000 for extra steel pipes).

  
  

  Completion: 2025.

  
  

  Funding: Grants + municipal taxes.

  
  

  Who pays: Existing taxpayers for ongoing maintenance—no DCCs apply (recreational, not growth-driven).

• Community Hall & Childcare Facility

  
  

  Total cost: $7,022,961 (~$6.9–$7 million rounded in reports).

  
  

  Completion: 2023.

  
  

  Funding: Senior government grants + municipal share.

  
  

  Who pays: Existing taxpayers for long-term operating costs.

• Coldstream Station (Civic Facility)

  
  

  Estimated cost: $8–$9 million (pre-2020).

  
  

  Who pays: Existing taxpayers (raised baseline operating costs).

• Aberdeen Road Sanitary Sewer / Infill Expansion

  
  

  Target cost: ~$11 million (phased; mainline ~$3.8 million).

  
  

  Funding: Growing Communities Fund, DCCs, sewer amenity/surplus.

  
  

  Who pays: New development via DCCs; taxpayers bridge delays or shortfalls.

• Public Works Building

  
  

  Borrowing: $8.5 million; total estimated ~$10.9 million.

  
  

  Funding: Reserves/taxes.

  
  

  Who pays: Existing taxpayers for ongoing maintenance.

Regional District of North Okanagan (RDNO) / Greater Vernon: Shared Regional Projects

RDNO manages Greater Vernon services, funded through shared requisitions from Vernon, Coldstream, and Electoral Areas B & C. Consolidated operating budget ~$65 million+ (2025); 2026 capital exceeds $39.5 million (offset by grants); five-year investment ~$110 million.

Major Projects Initiated by RDNO

• Greater Vernon Cultural Centre

  
  

  Total cost: ~$46 million (up from original $40 million).

  
  

  Funding: $28 million borrowing, grants/donations ($500K+ secured), reserves/short-term borrowing for ~$13 million gap.

  
  

  Who pays: Shared taxpayers across Greater Vernon, no direct DCC offset for cultural facilities.

  
  

• Greater Vernon Water (GVW) Upgrades

  
  

  Duteau Creek UV Disinfection: ~$7 million (2019).

  
  

  Mission Hill Water Treatment Plant filtration: ~$30 million (2026; part of larger $85–$100 million project envelope).

  
  

  Raw-water intake/pump station and ongoing mains/valves: Estimates in $5–$10 million range for major components.

  
  

  Funding: Borrowing, grants (e.g., ICIP), reserves, DCCs.

  
  

  Who pays: Shared requisitions + new growth via DCCs (stronger offset here since water/sewer directly supports new development).

• Wastewater Recovery (Swan Lake)

  
  

  Estimated cost: $36.9–$43 million.

  
  

  Funding: Grants-heavy, RDNO borrowing/reserves.

  
  

  Who pays: Shared taxpayers.

  
  

Provincial Housing Mandates: Adding Infrastructure Pressure

BC’s Housing Supply Act (2025) requires multi-family zoning changes and assigns Vernon a target of 1,829 net new units over five years (Coldstream included). This accelerates demand on water, sewer, roads, drainage, and amenities.

Infrastructure costs by some estimates can reach ~$15,000–$35,000 per new home (DCC range in Vernon), implying additional pressure on local budgets.

The Bottom Line

Greater Vernon’s local governments have invested in both essential infrastructure and discretionary amenities.

Development Cost Charges (DCCs) are intended to shift growth-related infrastructure costs onto new development, but when housing starts and population growth slow, as they have in recent years, the revenue from DCCs falls short.

This leaves existing residents covering a larger share of debt servicing, operating costs, and maintenance for projects that benefit the whole community.

Provincial housing mandates will further increase demand on local systems, creating ongoing pressure on taxpayers for years to come unless additional provincial support or stronger growth materializes.

Note on Sources and Accuracy

(In preparing this report, we have relied on the most current and reliable data available, including official government publications and other credible published sources. Our goal is to provide the most accurate and up-to-date information possible. Figures are based on publicly available records as of February 10, 2026; some estimates use reported ranges and may be subject to final audits or minor adjustments.)

Major Spending in Greater Vernon