Proposed Regina budget keeps 5.81% tax increase, but utility and other hikes mean higher costs

A proposed 2027 budget that includes a 5.81 per cent property tax increase is being presented to Regina City Council.

And while that meets the city’s target to keep Regina’s property taxes within the bottom 25 per cent of comparable cities, councillors will have to find further cuts if they want to increase spending in other areas.

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An increase of one per cent in the property tax rate works out to an extra $2.11/month for a typical home. Combined with a 10.27 per cent utility rate increase, a 3.99 per cent increase for library operations and 11 per cent more for the Central Library Renewal Project, the proposed increase adds up to $36.29 more per month, or $435.48 per year for an average household.

The monthly impact on a business’s taxes ranges from $318 for a restaurant to $5,961 for an office tower.

“We know it’s expensive,” acting city manager Jim Nicol said. “We haven’t invested sufficiently in infrastructure over many years. It’s catch-up time, because the story we don’t want is all our pipes and water services, etc., are failing.”

Nicol explained that tariffs have impacted expenses for the city, contributing to what he described as a constant balancing act.

“I hope that most people will accept the fact that administration has done good work in trying to reconcile very many competing interests and the realities that we’re facing,” Nicol told reporters.

“We had a direction of going to 5.81, and we’ve hit it. Doesn’t mean it’s perfect, and doesn’t mean it’s without impact.”

The report outlined $1.4 million in service reductions, as well as a one-time reduction in funding to the transit fleet reserve of around $3 million.

The proposed service reductions include dust suppression, line painting, postponing the outdoor washroom strategy and eliminating towing during spring street sweeping.

Without those reductions, the tax increase would have been approximately seven per cent.

Debt, salaries among biggest drivers of increase

The budget report said the biggest increase from last year is debt servicing costs, which are up 63.5 per cent, or $7.3 million.

Salary and benefits are seeing a 6.2 per cent increase, or $20.4 million.

A chart shown to reporters broke down increases of 2.3 per cent to the Regina Police Service, 1.79 per cent to the Indoor Aquatic Facility, 0.79 per cent to put money into reserves and 0.93 per cent for other civic operations.

This chart shown to reporters breaks down the tax increase in the City of Regina’s proposed 2027 budget. (Geoff Smith/980 CJME)

Capital plan totals $263 million in 2027

Capital spending in the proposed budget for 2027 includes $42.1 million for roads, $11.8 million for transit, $13.9 million for facilities, $9.7 million for the police service, $12.4 million for fleet and $3.5 million for the landfill.

Also included was $9.4 million for traffic infrastructure, $7.6 million for fire, $4.3 million for land development, $4 million for parks infrastructure and $7.3 million for recreation.

But the largest amount by far is the indoor aquatic facility, which will total $122 million in spending in 2027.

Enhancements will require offsets to hold line on taxes

A list of potential service enhancements translates into a tax increase of 2.25 per cent.

Those enhancements include enhanced snow clearing, additional financial positions, warming bus funding and planning for a new Regina Floral Conservatory, along with a paid parking expansion that could create a slight offset to the additional spending.

After reductions to park maintenance in the 2026 budget caused a public outcry, the administration is presenting options to restore funding.

A partial restoration would cost $1.255 million, but bringing back herbicide use could reduce that increase to $850,000. Council could also simply choose to restore the 2025 service levels, but that is the most expensive option, at $1.5 million.

Nicol said it will be up to city councillors during their deliberations the week of Dec. 7 to decide how much wiggle room they have to add spending in some areas and cut others, in order to keep the tax increase within their target.

“If council wants to further reduce that 5.81, then they’re going to have to dig into other things to cut or reduce service levels,” he said. “Conversely, if they want to add things, we will be giving them real-time information as to (how) that would impact the mill rate, if it would be going up. That’s in their hands now.”

Regina Police Service says increase only covers ‘essential’ operations

The Regina Police Service is asking for $124.8 million in the upcoming city budget, which works out to a 2.3 per cent tax increase.

The police force said nearly all of that increase is for current staff salaries, as well as contractual operating expenses.

While the provincial and federal governments are providing funding for 15 more officers, the budget request delivered to the city includes six additional full-time-equivalent staff.

It also says some capital projects have been postponed, resulting in a capital budget nearly $1 million less than the forecast from a year ago.

REAL still requires funding from city

The budget includes $10.8 million for the Regina Exhibition Association Ltd. (REAL).

That comes as final negotiations continue on Brandt Group’s purchase of a portion of the REAL District, an agreement that will also see the company take over operations of the parts that it’s not buying.

Administration said the budgeted amount will likely still be needed in 2027. Depending on the outcome of the negotiations, it would be split between REAL and Brandt.

Last year, city council approved a 10.9 per cent mill rate increase for Regina.