REGINA — The City of Regina is facing an operating deficit in 2025.
A report presented at Thursday’s audit and finance committee meeting shows the city recorded a 0.8 per cent unfavourable variance from its 2025 budget, amounting to $4.9 million.
City administration said several reasons for the shortfall include the removal of the provincial carbon tax, leading to a deficit from SaskEnergy and SaskPower municipal surcharge revenue ($4.5 million); and recognition of the 2024 backpay for fire staff resulting from a new collective agreement in 2025 ($2.7 million).
Despite the unfavourable variances, the city also posted two surpluses, including $1.6 million in fuel spending and $970,000 from higher-than-expected participation in recreation and cultural services.
Administration has recommended covering the $4.9 million deficit through the general fund reserve (GFR).
As of 2025, the GFR sits at $16.5 million, nearly $20 million shy of its minimum threshold of $35 million.
If approved by council, the GFR could sit at $12.6 million by 2026 when factoring in new money coming in via the 2026 budget.
On the flip side, the city’s general utility fund recorded a $68.2 million surplus.
“The favourable variance in the budgeted utility surplus is driven by increased revenue from higher-than-expected water usage,” notes the report.
The city will transfer the surplus to the General Utility Reserve.
