REGINA - Regina council members get a first look at the 2025 budget on Wednesday, and they will be staring at big tax increases for the residents they represent.
At Executive Committee on Wednesday, city administration is set to propose a steep mill rate increase of 8.5 per cent, according to the agenda posted on the city’s website.
Utilities are also set to take a hike, with administration proposing a preliminary utility rate increase of 5.82 per cent.
The financial impact of an 8.5 per cent mill rate increase is estimated at $204 a year or $17 per month for the average assessed residential property in Regina. For the utility rate increase it is $116 a year or $10 per month. In total, it amounts to a $320 increase per household per year, according to the city.
While the proposed hikes are steep, it should be noted this is still preliminary. The final 2025 budget document, along with the final recommendations from administration on mill rate and utility increases, is expected to come back within a few weeks, in time for the council deliberations expected in March.
It also can be expected those proposed numbers could change either higher or lower, depending on both the council discussion on Wednesday and what they ultimately vote on during deliberations. The 2025 budget deliberations are happening some four months later than usual due to the 2024 municipal election, and this will be the first budget deliberation for new Mayor Chad Bachynski and for the new council since that vote.
Regina city administration is acknowledging the 2025 mill rate increase is higher than in previous years. For last year, council had approved a 2.85 per cent mill rate increase and the year before it was 3.67 per cent. Both ended up lower than the original recommendations from administration.
According to a city memo dated Feb. 5, which was included in the agenda package, past budgets had prioritize maintaining low mill rate increases over fully covering the cost of civic operations. It also relied on other revenue streams no longer available such as investments.
“That approach is no longer sustainable or responsible,” the memo states.
Administration is pointing to Regina increasing in size and complexity. They state that in order to serve residents administration must continue to expand its operations above maintaining service levels, and say that expansion cannot occur without an increase in funding.
According to their memo, the city must address several capital investments in infrastructure — investments that have been deferred for years. They also point to service partners such as Regina Police Service requesting funding increases, and the city is also pointing to high inflation, particularly in construction services and materials.
Administration says only a small fraction — 1.90 per cent — represents funding to support civic operations.
A number of outside organizations have also submitted their budget requests and those are set to be presented at Wednesday's meeting. Economic Development Regina has requested total funding of $2.1 million, a net increase of $405,000 or 24 per cent.
Regina Public Library is also requesting an operational mill rate increase of 4.58 per cent in addition to the previously-approved dedicated 5.5 per cent to assist with costs associated with its Central Library Renewal Project.
The Provincial Capital Commission is also making a request for $2.719 million to support its operations and maintainance regarding Wascana Centre. That would be no change from the previous year.
The Executive Committee meeting begins at 9 a.m. Wednesday at Regina City Hall.
