The City of Regina will consider a 2.32 per cent dedicated mill rate for debt acquired during its 2026 budget process.
Back in March, council approved seeking a $115 million loan to fund the Water Expansion Network (WTN) project and underfunded Development Charges (DC) projects.
The WTN project, which is currently 95 per cent complete, is preparing the city to handle a population of 310,000 residents in need of constant water usage.
The project includes new water storage reservoirs, a new pumping station, 8.4 km of new long water supply main, and more.
In 2024, the city outlined that the total project would cost $187 million.
While delegate Jim Elliot, a Regina resident, understood the need for expanding water, he believes the city could adopt better practices to save money.
“We need to be conserving our precipitation and reducing our demand from the Buffalo Pound Water Treatment Plant.”
Elliot also argued the city should stop investing in Kentucky bluegrass and rather maintain the trees and flowers native to the province, which require less maintenance.
While Coun. Jason Mancinelli (Ward 9) supported paying for expanding the city’s water network, he feels the city needs to be more innovative.
“Some of the advice given by the delegate today would save tens of millions a year, and it’s simple to implement; it’s just a little different in thinking.”
The rest of the debt will cover roughly 20 DC projects, which help support the growth of water treatment plants, water and sewer mains, roads, parks, and recreational facilities.
These projects are experiencing a projected negative cash balance, requiring debt financing from the city.
Some big cash projects included are Wastewater Capacity Upgrades South Trunk (nearly $18 million), New & Enhanced Traffic Controls (around $8.5 million), and Arcola Avenue Intersection Improvements (roughly $7.6 million).
All the projects will require a total of $61.5 million in debt funding.
In their motion, administration proposed taking on $115 million in bullet debentures over 30 years, which would come from RBC Capital Markets. The only option for considering payment of the debt was a dedicated mill rate.
City of Regina chief financial officer Daren Anderson explained the city has a policy in which dedicated mill rates are set to fund debt.
“It’s good policy to ensure our debt holders are made whole on an annual basis.”
A 2.32 per cent mill rate would cost the average medium household north of $30 annually, said Anderson.
However, Anderson also said it’s possible the mill rate could decrease if other funding is found during the 2026 budget process.
The city plans to keep the mill rate at 2.32 per cent over the next 30 years, but that could fluctuate depending on funding available in Regina’s sinking fund.
Council voted 8-1 in favour of approving the motion to budget week, with Ward 8 Coun. Shanon Zachidniak opposed. Ward 5 Coun. Sarah Turnbull and Ward 10 Coun. Clark Bezo were away from the meeting.
As for the debt, council passed a bylaw to approve acquiring the $115 million on Sept. 10.
Interest payments of roughly $2.846 million will be made semiannually on March 10 and Sept. 10.
The debt will mature on Sept. 10, 2055.
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