Regina taxes, utility rates going up in proposed 2024 budget

Property tax bills in Regina could be going up next year, but by less than initially expected thanks to a change in garbage collection.

The City of Regina released its proposed 2024 budget on Friday, outlining a 2.2-per-cent mill rate increase. The budget, which still needs to be approved by council, is part of the city’s two-year budget plan to provide residents with a estimate of their future taxes.

According to the city, the tax hike is significantly lower than it might have been.

“In December 2022, City Council received and filed but did not approve a 4.66 per cent mill rate increase for 2024,” the city explained in a news release.

“Since then, City Council approved a one-time dedicated mill rate of 0.63 per cent to support the Eastern Pressure Solution, and in 2022 a 3.09 per cent reduction in property tax was introduced due to changes in funding for garbage collection, transitioning to a user-fee system through the utility.”

Those changes, according to the city, resulted in the adjusted mill rate increase of 2.2 per cent included in the proposed budget.

The city said the owner of a property assessed at $315,000 currently pays $193.67 per month in municipal property taxes. With the proposed mill rate hike, their payments would increase by $4.30 per month.

Because the proposed budget must still be approved, it’s possible the 2.2-per-cent increase will not be the final number.

“The first place the city would always go is to look at reallocation of funding, where possible. I think we are very cognizant of mill rate increases,” said Barry Lacey, the city’s executive director of financial strategy and sustainability.

“Trying to keep the mill rate increase to an affordable level, I think that would be the first place that we would look to. Obviously, we can’t rule possible mill rate impacts from some of that work that will be done over the next few weeks, but I think typically the administration will look first internally in the existing budget.”

While the property tax increase is lower than in previous years, residents will be required to pay a yearly fee based on the size of garbage cart starting on Jan. 1.

According to the city, a 240-litre cart will cost $193.45 per year, while a larger, 360-litre cart, will cost $284.70 per year.

Due to inflation and rising costs, city administration decided to reevaluate priorities, including the deferral of some capital investment projects.

Utility rates increase

Last December, council approved a four-per-cent water rate hike in 2024 to fund maintenance and the renewal of the Buffalo Pound Water Treatment Plant.

“Utility customers can expect to see the water rate change and new Waste Charge on their Water & Waste bills in 2024,” the city noted in its release.

“The utility rate increase last year was 4.5 per cent, so this year’s utility rate increase is down slightly from last year,” Lacey added.

“This overall increase delivers on a number of things. From a water utility perspective, it continues to ensure that the residents of Regina have safe, reliable, high-quality potable water which, I think, is one of the key things a municipality delivers to its residents”

The proposed budget must be approved by city council next month before it takes effect.