Regina homeowners received a glimmer of hope yesterday as Mayor Sandra Masters indicated the city’s eye-popping 12.6% proposed property tax increase might be whittled down before budget deliberations begin next week.
“We’re having those conversations about what a pathway to single digits looks like,” Masters told reporters following a tense executive committee meeting where the preliminary budget figures were presented.
The proposed increase would translate to roughly $33 more per month for the average Regina household – a bitter pill for residents already struggling with rising costs across the board.
City administration points to inflation, increased service demands, and a backlog of infrastructure maintenance as driving forces behind the steep proposal. Finance Director Barry Lacey emphasized that the city faces “unprecedented financial pressures” stemming from pandemic-delayed repairs and accelerating infrastructure costs.
“We’ve been kicking the can down the road on some essential infrastructure needs,” Lacey explained. “These are coming due, and postponing them further will only increase costs.”
Regina’s situation reflects a Canada-wide municipal funding crunch. The Federation of Canadian Municipalities recently reported that 63% of Canadian cities plan tax increases above inflation rates in 2024, with infrastructure maintenance being the primary culprit.
For Regina residents like Debra Williston, a retired school administrator I spoke with outside City Hall, the numbers are alarming.
“My pension isn’t going up by 12.6%,” Williston said, adjusting her scarf against the November chill. “Something’s got to give, and it shouldn’t always be the taxpayers.”
City councillor Andrew Stevens acknowledged the sticker shock but defended the need for significant investment. “Nobody wants to see double-digit increases, but we’re dealing with years of postponed maintenance and new service expectations,” he said during committee discussions.
Several possible avenues for reduction were floated during the meeting. Council members suggested phasing certain infrastructure projects over longer timeframes, reducing planned service expansions, and tightening administrative spending.
Budget documents show the largest drivers include:
– $14.3 million for infrastructure rehabilitation
– $7.6 million in increased operational costs
– $5.2 million for police and emergency services
– $3.8 million for public transit improvements
Regina Chamber of Commerce CEO Tony Playter expressed concern about the impact on local businesses, which face a proposed 13.8% commercial property tax increase.
“At a time when businesses are still recovering from pandemic impacts and dealing with increased costs, this kind of tax increase could force difficult decisions for many small business owners,” Playter said in a statement issued yesterday.
City officials confirmed they’re exploring additional provincial funding possibilities, though previous discussions with the Saskatchewan government haven’t yielded significant relief. The province’s municipal revenue sharing formula provides Regina with approximately $43 million annually, an amount city officials say hasn’t kept pace with growing responsibilities.
The preliminary budget also proposes a 5% increase in water utility rates, which would add approximately $8.50 monthly to the average household bill.
Council will begin formal budget deliberations on November 29, with a final vote expected by mid-December. Public feedback sessions are scheduled for next week, with details available on the city’s website.
Masters seemed to acknowledge the political reality during her closing remarks yesterday: “Nobody sitting around this table was elected to implement double-digit tax increases. We hear residents’ concerns loud and clear.”
Whether the final number lands in single digits remains to be seen, but one thing is certain – Regina’s budget talks promise to be more heated than usual as winter sets in on the prairies.
