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By Victor Kaisar

TNRD Budget Update

Proposed 2026 TNRD tax increase now projected at 6.7 per cent

Dec 7, 2025 | 2:44 PM

KAMLOOPS — Residents in the TNRD can still have their say into the proposed 2026 budget, which is now forecasting a 6.7 per cent global tax increase next year.

That’s down three per cent from the initial 9.7 per cent estimate presented just last month, as TNRD staff say they’ve found some savings while also making some reductions to expenses.

“Over the last few weeks, with some additional savings directed by the Board as well as the recognition of some additional surplus and expense reductions, staff have been able to bring forward additional savings of approximately $800,000,” a report from TNRD CFO Carla Fox said.

TNRD taxpayers only pay for services they get from the regional district. As an example, Kamloops taxpayers do not pay into TNRD Solid Waste services as the city operates its own collection system. They do pay for things like the library and the film commission.

A breakdown of costs for each TNRD electoral area and member municipality can be found here.

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According to the report, the reduction in the current tax rate is due to a decreased budgeted wage increase for 2026, combined with additional solid waste and permit revenue.

While the TNRD’s projected operating costs are set to increase by just under $80,000 next year, its net requisition collected from taxpayers is currently projected to increase by $1.9 million.

“This anticipated increase is mainly due to declining non-tax revenues (such as reserve subsidies used to offset operating costs), rising operating expenses, and reduced surpluses, which are the main influences over the financial status of the next fiscal year,” Fox added.

“The sustainability of reserve draws to subsidize operations is in question, and at this stage no further recommendations to reduce overall expenditures is being put forward by the CFO, as auditor feedback highlights risks to financial stability due to extremely narrow margins.”

An updated comparison of the 2025 vs 2026 expenditures by TNRD department. (Image Credit: TNRD)

The report also noted a significant surplus decrease of approximately 35 per cent, along with reduced reserve revenue and other grants, have all led to an increased need for higher taxation revenue in the upcoming budget.

“In the previous five-year plan, over $6.7 million was being used by reserve funds to offset large tax rate increases,” Fox noted.

“In 2026, approximately $1.5 million is being utilized to reduce overall taxation with much of that amount being brought into Solid Waste and Recycling Services ($731,000), Building Standards Services ($425,000), Recreation (Community Parks Assistance $350,000), and the remaining amounts allocated over select Fire Services and smaller service areas.”

Elsewhere, the TNRD capital budget is proposing about $21.9 million in total spending, most of which – $12.9 million – is being carried over from incomplete projects in previous years. There is roughly $9 million in new capital requests in the 2026 budget.

“The fully funded 2026-2030 Capital Plan being requested is $58.9 million. The funding for the capital projects included in the plan includes a combination of reserves, grants and borrowing,” Fox added. “Projects that require grant funding will only be initiated once grant funding is secured, if this is not possible the request for alternative funding will come back to the Board for consideration.”

She also noted the Utility Services portion of the budget is $8.1 million in carry forward projects from 2025 and $1.5 million in new requests.

TNRD CAO Scott Hildebrand said last month that the 2026 budget will be a work in progress until it is finalized in March of next year.

“Our senior management team took time to provide a complete SWOT analysis and dig a bit deeper into what impacts and drives our budgets,” Hildebrand said. “Based on where we are starting, staff have a lot of work to do and we realize that.”

Fox also wrote that the TNRD Board will “face some critical decisions” around service levels to manage future tax increases.

Projected future global tax increases in the TNRD. (Image Credit: TNRD)

Last year, the TNRD’s global tax increase was projected to be as high as 12.8 per cent. It was eventually whittled down to 5.9 per cent.

You can find the entire 166-page Provisional 2026-2020 TNRD financial plan report here.

People with questions about the budget are being told to contact the TNRD finance department by email or by using the online form available here.