'at a critical juncture': regina city manager, cfo argue for tax hike in city's 2025 budget
"if our 1.9 per cent of the mill rate (for civic operations) is decreased, we will be looking at service cuts," warned city manager niki anderson.
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chief financial officer daren anderson, left, and city manager niki anderson speak during a news conference inside city hall for the city of regina's proposed 2025 budget on tuesday, march 4, 2025 in regina.
kayle neis
/
regina leader-post
the record-high proposed mill rate increase in the 2025 budget is partly because regina has not been investing to keep up with the city’s growth, say the city manager and chief financial officer.
“i acknowledge this is a higher mill rate than residents have seen historically, but i think it is realistic,” said city manager niki anderson, during a briefing about the city’s budget on tuesday.
“we are at a critical juncture to continue providing essential services and quality of life for our residents.”
the city manager and the city’s new chief financial officer, daren anderson, outlined the core details of the proposed 2025 budget, which city council will deliberate later this month.
‘our city has been playing catch-up’
administration is proposing the highest mill rate increase regina has seen in more than a decade at 8.5 per-cent, and a utility rate increase of 5.82 per cent.
together, they would equate to an estimated $320 more per year for the average regina household — or about $204 more per year in property taxes and $116 more per year on utilities.
niki anderson said this year’s budget “reflects administration’s dedication” to avoid any cuts when it comes to delivering city services, while also grappling with inflation and a culminating history of keeping mill rates low in regina’s past.
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“our city has been playing catch-up, with mill rate increases historically kept below what is necessary to meet the growing demands of our community,” she said.
of the proposed 8.5-per-cent bump in the mill rate, 1.9 per cent is to cover the increasing cost of civic operations, said the city manager, noting administration “worked really hard” to keep that figure low, leaving little fat left to trim for further efficiencies.
“if our 1.9 per cent of the mill rate is decreased, we will be looking at service cuts,” she warned.
the rest of the increase includes 4.59 per cent for the city’s service partners: 2.25 per cent for the regina police service, 2.21 per cent for the regina exhibition association ltd. (real) and 0.13 per cent for economic development regina.
regina police service has not presented a preliminary budget to city council yet, but is expected to need $123.3 million for 2025, requiring $6.9 million more from the city than in 2024. real has requested $12 million, to cover operations and debt-financing needs.
another 2 per cent is for dedicated mill rates promised by the previous city council for capital projects, including a new indoor aquatic facility and east-side water network expansion.
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population growth projected to continue
regina is grappling with growth that is making investment in city infrastructure necessary, said daren anderson. regina’s population has grown 7.7 per cent since 2019, with another 2.2 per cent projected in 2025 to reach 290,000 people.
“with this growth, we need to remain as competitive as possible, from a cost perspective,” said daren anderson.
he added that regina’s mill rate increases in the past three years have been “well under” those of saskatoon, edmonton, calgary, toronto and vancouver — all of which were more than regina’s 2.85 per cent passed last year.
“only two per cent of resident’s spending goes to municipal taxes in regina, and we have many of the amenities and services that much larger centres have, which residents enjoy for a much lower cost,” said the chief financial officer.
regina’s operating budget for 2025 is proposed at $841 million, with $334 million to be sourced from property taxes.
highlights among the many projects included in the 200-page budget book include: $21 million to continue the 11th street revitalization project, $33.9 million to city transit upgrades and expansion, $6.3 million for a new fire station on chuka boulevard and adding four hectares of new park space across the city.
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city council has set aside five days to discuss and approve the 2025 budget beginning on march 17.
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