Regina’s city manager Niki Anderson presented her proposed budget to executive committee Wednesday which included a potential increase in property taxes of 8.5 per cent.
In her report, she warned councillors her team has already cut civic operational costs as much as possible.
“We have, as a leadership team and as an organization, done our best to cut costs everywhere we can and reprioritize,” Anderson said. “If you want a one per cent further reduction, we would be looking at service level cuts.”
The 8.5 per cent proposed mill rate increase would be the largest property tax rise dating back 2013, according to CTV research.
It is equivalent to $204 more per year ($17/month) for the average assessed residential property, according to the city.
The previous mill rate increase high was 6.49 per cent back in 2017.
As for the 2024 budget last year, administration’s first proposal included a 5.29 per cent increase. Councillors then rejected that number, and administration returned with a 2.2 per cent rise in the mill rate after making further cuts to services and deferring several capital projects.
During final budget deliberations, council finalized a 2.85 per cent increase.
“Every decision [council] makes impacts something in one way or another,” Anderson said. “If you’re wanting city administration to reduce their portion more, what are you willing to give up or change?”
Administration attributed the rise this year to large increases in funding requests from city entities like Regina Police Service (RPS) and Regina Exhibition Association Ltd. (REAL).
RPS is historically the largest-funded city organization.
They requested an operating budget of $109.7 million – an increase of nearly $7 million from 2024.
REAL has yet to present their budget ask to the city, but administration estimated a request of $12.7 million – over $7 million more than its 2024 budget.
REAL is scheduled to present their budget proposal to councillors on Feb. 26.
Newly appointed chief financial officer, Daren Anderson added that Regina continues to face pressures from inflation, rising costs and now looming tariffs from the United States.
Wednesday’s Executive Committee meeting was Daren Anderson’s first public meeting since filling the role.
“The city’s been doing its best to keep that mill rate down,” he said. “The price pressures of inflation and all that the rest of the world is feeling is starting to wear.”
Past council affect
Another factor for the high mill rate increase is previous city council decisions to delay projects and tie tax funding to capital projects like a new indoor aquatic facility or central library.
“Last fall, [council] approved $100 million debenture for a major water line replacement. In a year or two, we’re asking for another $150 million for a library,” said Ward 10 Coun. Clark Bezo. “We just asked for $280 million for the stadium. Another $200 or $300 million for a pool. We’re [near] $1 billion and we haven’t even talked about infrastructure yet.”
The new council, elected last November, has raised its concerns about repeating the past.
“I also want us to make sure we don’t put [deferrals] on future taxpayers as well,” Ward 6 Coun. Victoria Flores said. “What is that balance for us?”
“[The city is] now finding [itself] in a situation where you’ve got some significantly failing capital infrastructure,” Niki Anderson said. “You’re inheriting some independent municipal corporations that were running for years on debt and have significant interest payments.”
Ward 8 Coun. and acting Deputy Mayor Shanon Zachidniak, who is one of just two re-elected councillors, agreed council is now paying for past decisions. Some which she disagreed with at the time they were made.
“For example, a one per cent reduction to the mill rate with with no context,” she told reporters following Wednesday’s meeting. “In the past, I did not vote in favor of that because we didn’t actually know what the ramifications were of that.”
“I think what we’re seeing now is anytime council arbitrarily puts a reduction forward without consulting administration, there’s consequences to that,” Zachidniak said.
Most councillors felt the proposed increase was too much for residents to bear.
“Nobody wants to pay $27 more per month,” Zachidniak said. “Some of our residents can, but I represent residents who cannot absorb these costs.”
“We’re in a perfect storm of three things right now,” Ward 2 Coun. George Tsiklis said. “Tariffs are looming over our heads. It’s an assessment year for properties and a mill rate increase my colleagues and I are doing our best to try and balance.”
Proposed utility rate increase
In addition to the proposed rise in property taxes, the preliminary budget also included an increase to resident’s utility bills of 5.82 per cent.
The city says that would be $116 more per year ($10/month) for the average home.
“What is the impact to reducing the utility rate?” Zachidniak asked.
“If council asked us to reduce the utility rate, we would likely look to reduce the capital plan,” manager of city operation Kurtis Doney responded. “That’s taking care of our underground pipes, our pump stations, our systems to deliver water, wastewater and stormwater systems.”
“That would mean the deferral of maintenance would be our general approach,” he added.
The two proposed increases together would amount to nearly $30 more per month for the average Regina household, and possible $320 more per year.
However, the preliminary budget is not set in stone.
Administration will present their full budget breakdown at the beginning of March before it is fully deliberated by council starting Mar. 17.
Until then, the budget and any possible increases, are not final and subject to change.
