REGINA, Sask. — Regina city council got a high-level overview of the upcoming 2027-28 budget on Tuesday, and it is clear there are going to be some tough decisions ahead to keep the mill rate within the desired limits.
At this first preliminary budget meeting, council heard from Deputy City Manager Jeff May who provided the preliminary forecast for general operations.
A key consideration for council as May provided those numbers was how the expenses would fit in to council's capping of the mill rate increase at 5.81 per cent. That cap is mandated by the Strategic Imperative in the city’s 2026-29 Strategic Plan, which calls for Regina’s municipal property taxes to stay within the lowest 25 per cent of taxes among comparator Canadian cities.
But as May went through the numbers with council, it became obvious that projected revenue and expenditures to meet existing service levels for 2027 would make meeting that 5.81 target challenging.
May told council the total status quo expenditure increase is projected as $44,740,000, for a mill rate increase of 11.90. That included significant impacts such as a $7.3 million to reinstate the transit fleet reserve, and other impacts from staff costs and Regina Police Service among others.
But May also pointed to revenue sources that would bring the mill rate down closer to the target figure.
Those include revenue growth from municipal revenue sharing (0.80) and from property tax penalties (0.60), the increase in the Utility Admin Fee (0.91), other non-tax revenue growth (0.19), the Fire Service Agreement fee increase (0.16), and tax revenue growth (2.23).
That would bring the overall mill rate increase down to 7.01. To bring it down to the mill rate target of 5.81, May pointed to two possible areas to achieve it.
One was reducing the transfer to the transit fleet reserve by $3,117,000 for a mill rate reduction of .83, and also service reductions of $1.406 million amounting to a mill rate reduction of .37.
Among those potential service reductions suggested include: reducing right-sizing facilities expenses, reducing Transit Allocated Expenses (Parts), a reduction for contractor support on dust suppression, a reduction in pavement marking line painting frequency, a reduction in casual FTE, eliminating towing for spring sweep, reducing general supplies and consulting services (Strategy & Indigenous Relations), and delaying the outdoor washroom strategy.
What the consequences of going through with those reductions would be is not yet known, as councillors are seeking more information from administration on that and a host of other items. Councillor Victoria Flores was one of those concerned about potential cuts to transportation, safety or infrastructure, saying "I don't know that there are many residents that want to see any further reductions in the basic amenities that a city should provide."
Councillor Mark Burton was more concerned about a timely topic: the impacts of Trump tariffs. Among his requests was for administration to come back with a summation of Canadian procured goods and services compared to U.S. sourced imports of goods and services.
He also wanted to know if there was any analysis of inflationary expectations or price changes from "these unfair 50 per cent trade tariffs."
May said they recognized in putting the forecast together that there was "volatility" and there was nothing specifically baked in, but said when they table the budget in November if something is trending in a "way that is material that we should revise our estimates, we will do so."
"Right now these forecasts are based on the best information we have at the time when we put them together,'" May said.
In the end council passed a referral motion on a lengthy list of requests from council for additional information. Council also received from administration the 2027 preliminary forecast with service details — again with a referral motion seeking more information in time for deliberations in December.
What’s ahead:
At this point, things are still preliminary and nothing is decided about the final 2027 city budget. At their next preliminary forecast meeting Sept. 8, administration says details will be provided on the level of forecasted investment needed to support existing service levels and risks at keeping funding at the levels described in the preliminary budget.
On Sept. 22 council will see the presentation on the General Capital Plan, and on Oct. 6 the preliminary utility, operating and capital plan will be presented. That will include the preliminary 2027 budget for operating and capital and opportunities and risks associated with that.
The actual budget deliberations won’t happen until December, and settling on the date for those to start proved to be the first order of business on Tuesday.
Councillor Shanon Zachidniak put forward a motion to move the first day of budget deliberations up a day, from Dec. 8 to Dec. 7. The votes carried unanimously, which means budget deliberations are set to begin Dec. 7 at City Hall and run throughout that week.
