Kamloops city council has reduced the proposed 2026 tax increase to 7.21%, down from an initially projected 10.76%, though the budget is still in progress and could be adjusted further before final approval.

The lower figure reflects council-approved measures including partial deferrals of RCMP hiring, revised vacancy assumptions, and other operational reductions. City staff noted that if council opts for a full deferral of RCMP hires, the increase could fall into the 6.7% range, though that decision will be finalized in a future council meeting.

“The 7.21% figure is a significant improvement over the original 10.76%,” said city Planning and Procurement Manager Dustin Rutsatz, presenting the updated numbers to council. “We wanted to confirm these results align with council expectations before moving forward.”

Reductions and deferrals drive the change

Council voted to:

• Increase the assumed RCMP vacancy rate by 1.5%, reducing the immediate budget impact.

• Phase RCMP hiring, with 50% of new positions deferred to 2027.

• Defer some fire station staffing and construction costs while maintaining essential emergency services.

• Treat $110,000 in maintenance costs for the provincially owned Stewart Wood School as a receivable to be billed to the province, while keeping playgrounds and grounds maintained.

The decisions are intended to reduce near-term tax pressures while preserving critical services, according to Mayor and council.

Business community urges caution

The Kamloops & District Chamber of Commerce welcomed the reduction but cautioned that even a 7.2% increase remains higher than inflation and could strain small and medium-sized businesses. Executive Director Acacia Pangilinan said members’ feedback showed a majority expected a moderate or significant impact on operations from higher taxes.

Council emphasized that future opportunities for revenue — including updated business license fees, permit adjustments, and parking plan changes — will be explored in reports to council later this year. None of these changes will affect the 2026 budget immediately.

Public and council discussions continue

Councillors raised questions about options within the preliminary figures, particularly the RCMP deferral. Some expressed a preference for a full deferral to achieve a lower overall increase, while others noted that staff calculations are still preliminary and will be revisited before final approval.

“Council still has decisions to make,” said Councillor Hall. “The 7.21% is based on partial measures; a full deferral would bring it closer to 6.7%.”

Other discussions focused on maintaining community assets while managing provincial responsibilities, such as the Stewart Wood School maintenance and playgrounds, and on ongoing planning for business license structures, DCC factors, and transit agreements.

Mayor Reid Hamer-Jackson noted that all supplementals and remaining adjustments will be voted on in February, keeping the 2026 budget process active and open to public scrutiny.

Council is actively balancing affordability for residents with the need to maintain essential services. These preliminary decisions give us a strong foundation, but the budget is not yet final.