REGINA, Sask. — There were not a lot of surprises as Regina city administration released its proposed 2027 operating and capital budgets Thursday.
Among the non-surprises was administration’s recommendation of a mill rate increase of 5.81 per cent. That is the same number that was discussed throughout the pre-budget process, in line with city council's direction that Regina municipal property taxes stay within the lowest 25 per cent of municipal taxes among comparable Canadian cities such as Saskatoon, Calgary, Edmonton, Winnipeg and Ottawa.
According to the city's acting chief financial officer, Jeff May, the mill rate increase would generate approximately $22 million in new tax revenue.
The city states that for a home assessed at $250,000, the increase will be about $10.45 per month, or approximately $125 annually. For an average assessed home value of $324,000, it would be $13.56 per month, or $163 per year.
Highlights are as follows:
Included in the civic mill rate is the recommendation for the police services budget, which is expected to see a net increase of $8.7 million, equating to a mill rate increase of 2.3 per cent.
The indoor aquatics facility accounts for an estimated $6.7 million, or a 1.79 per cent mill rate increase.
A portion of the proposed mill rate increase, 0.79 per cent, is to go toward replenishing several city reserves. The remaining cost increases of $3.4 million in 2027 are attributed to other civic operating pressures and inflationary impacts across city services, accounting for a 0.93 per cent hike.
On the revenue and expense side, the city is forecasting total revenues of $721 million in 2027, up $58 million, or 8.5 per cent. Operating expenses are projected at $685 million, up $41 million, or 6.2 per cent. The difference between revenues and expenses results in a surplus of $36.7 million, which will go to reserves.
For the capital budget, the city states that $263.1 million is planned for 2027 and an additional $712.4 million from 2028 to 2031.
The largest capital investment is for the indoor aquatics facility at approximately $122 million. Other projects include $20 million for street infrastructure renewal and sidewalks and $11 million for Regina Transit, including fleet replacement.
The budget also includes $7 million for fleet replacement for civic fire and transit operations, as well as recreation facility renewal. Regina Fire and Protective Services is earmarked for $12 million to support operations and salaries and expand the fire truck fleet.
For utilities, the proposed rate increase for 2027 is 10.27 per cent. This represents an increase of approximately $19.60 per month for the average household.
As for service partners, the proposed budget calls for the Provincial Capital Commission to receive $2.7 million, Economic Development Regina $1.9 million and REAL $10.8 million.
Regina Public Library is seeking a 3.99 per cent library mill rate increase for operations and an 11 per cent library mill rate increase for the central library replacement. Both of those are in addition to the civic mill rate and utility rate increases.
Added together, the city states that the average household would see a combined increase in taxes and utility charges of about $36 per month, or $432 per year.
These service partner requests will all be considered during the budget deliberations in December. It was also noted that negotiations continue with Brandt on the sale of certain REAL District assets, and that the final deal could include a transfer of a portion of the operating grant to Brandt in 2027.
May said that what the proposed budget reflects is “the cost of keeping the lights on of delivering services as they are today.” He did say administration made some judicious cuts to meet the strategic imperative.
Acting city manager Jim Nicol said it was his belief that administration had “done our part” to meet city council’s request to help keep Regina affordable while providing services that residents want.
“We've made every effort to achieve a challenging balancing act. On the one hand, we must prioritize residents' needs for affordability in a world that is becoming increasingly unaffordable for many. On the other, residents have come to expect and rely on quality municipal services every day, every season, year round.
“To be frank, these two priorities do not necessarily or easily go hand in hand. Difficult choices lie ahead, not just in 2027, but in the years to come.”
Nicol said that while the proposed budget for 2027 will include a smaller mill rate increase than the precedent-setting ones of 2025 and 2026, with last year’s hike being a whopping 10.9 per cent, “future mill rate increases of some level are inevitable.”
“We still need to make up for decades of insufficient investments in our infrastructure or we risk potentially catastrophic failures like the ones we've seen in other cities. We too, like residents and businesses, are feeling the squeeze of high inflation, growing borrowing costs, tariffs and fuel prices. And the City of Regina as an organization does not exist in a vacuum. We are exposed to the same market forces that affect everyone, from an individual household to a billion-dollar corporation.”
Nicol said their job as administration is to “put every scenario on the table,” for residents to understand and for “our decision makers” at council to determine.
“Council now has to make some difficult choices. Today's release of the 2027 proposed budget provides residents, business owners, potential investors with time to review and provide feedback prior to Council's debate, starting on this in December. As we enter our budget deliberations, I'm proud of the work that administration has done up to this morning's release, and of the work we will do to help Council navigate the weeks ahead.”
Now the budget goes to council for deliberations in a month, starting Dec. 7. Nicol said whether the 5.81 per cent mill rate increase goes up or down during those deliberations is council’s prerogative.
“It will remain Council's prerogative when they hear from delegations, when they get feedback over the next three to four weeks. So during the debate starting Dec. 7, 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. Conversely, if they want to add things, we will be giving them real-time information as to what that would impact the mill rate if it would be going up.
“So that's in their hands now. We will provide all the information they need to see what the final impact would be.”
