Kamloops city council held its first meeting of 2026 on January 13, receiving a wide-ranging update on more than $327 million in capital projects completed or underway over the past two years. Most projects were delivered on time and roughly 5% under budget—but not before revisiting lingering questions around the cost of the Kamloops Centre for the Arts.

Infrastructure Delivery Manager Matt Kachel presented the update, describing an unprecedented period of construction activity across the city.

“Over the last two years, the City’s infrastructure delivery division has initiated or completed about $327 million of capital work across roughly 63 projects,” Kachel said. “As a program collectively, we’re about 5% under budget, which we’re really happy with.”

From roads to rinks and utilities

Projects span everything from major underground utilities and bridges to civic facilities, ice plants, and recreational amenities— many of which officials say residents may never notice precisely because they were delivered with minimal disruption.

“Nobody ever heard about it because it was so well planned,” Kachel said, referencing the Southwest Industrial water main, which required directional drilling beneath a highway. “That’s a good thing.”

Kachel also highlighted retrofits and upgrades to facilities such as the Brock Arena Ice Plant, which were designed to minimize disruption while maintaining continuous service.

“These things are some of the most dangerous infrastructure a city can have,” he said, noting the ammonia-based refrigeration system. “We designed it in a way to minimize disruption while keeping everything operational.”

Recognition beyond Kamloops

Several councillors praised staff for earning provincial and national recognition for their work, including Kamloops being named the municipal engineering lead for the Master Municipal Construction Documents used across B.C.

“You should be tremendously proud and not feel awkward at all,” Councillor Katie Neustaeter told staff. “This is the stuff that happens in the background because it goes smoothly.”

How much is “normal”?

Staff was asked for historical context on the $327-million figure. Kachel said the City typically delivers between $80 million and $100 million in capital projects annually, but recent totals have climbed due to rising construction costs and major initiatives such as the Kamloops Centre for the Arts.

“These big Build Kamloops projects put some strain on us,” he said, “but we’ve been smart about where we focus our energy and where we bring in support.”

Director of Finance and Administration Dave Hallinan added that the City is now entering “the largest five-year period of capital investment the City has ever seen,” even after accounting for inflation.

Arts centre budget questioned again

The meeting also saw renewed debate over the Kamloops Centre for the Arts budget, which now stands at $211 million—up from earlier figures cited during the alternative approval process.

Mayor Reid Hamer-Jackson asked staff to clarify what he described as ongoing confusion in the community. “There’s people in our community that say the budget of $211 million is not really the actual budget,” Hamer-Jackson said. “That it was $154 million.”

Hallinan responded that $211 million is the current and accountable budget required to deliver the project as scoped today, reflecting updated accessibility requirements, building code changes, parking needs, and inflation. “Budgets are an estimate based on the very best information at a point in time,” Hallinan said. “Fixating on a number from seven months ago ignores the reality that conditions change—sometimes within hours.”

Mayor Hamer-Jackson also asked how the gap between the original AAP figure and the current budget had come about. “When we put the AAP out to citizens at $154 million, and in a short time we’re at $211 million, that’s a big gap,” he said. “I’d like to know how that happens.”

Hallinan reiterated that major capital projects evolve over multiple years and undergo repeated revalidation as designs are refined and regulatory requirements change.

Why being “slightly under” matters

Kachel cautioned that while finishing under budget is positive, being too far under can also create problems. “If we sandbag a budget, we lose opportunities,” he said. “Five per cent under is good. It gives flexibility without tying up capital that could be used elsewhere.”

That approach, he said, also helps the City manage cash flow and plan staffing capacity as multiple large projects move forward at the same time.

Confidence going forward

Despite differing views on individual projects, councillors from across the table thanked staff for delivering a historically large volume of work safely and predictably.

“As we look at things as significant as the Centre for the Arts, it gives us great confidence,” Neustaeter said. “We’re seeing quality work done safely, on time and on budget.”

The capital projects update was received by council for information only and required no formal vote.