city of regina proposing 8.5 per cent property-tax increase in 2025 budget
the proposed budget could mean hundreds more in annual taxes for the average regina taxpayer.
4 minute read
the front of city hall in regina on thursday, september 26, 2024.
heywood yu
/
regina leader-post
the average regina taxpayer may be on the hook for about $320 more in annual taxes if the city’s proposed 2025 budget is approved by council as is.
the draft budget includes a mill-rate increase of 8.5 per cent, which is nearly triple that of 2024’s and would be the largest increase seen in the last 10 years.
“past budgets prioritized maintaining low mill rate increases over fully covering the cost of civic operations, and relied on other revenue streams,” reads a report going before executive committee wednesday.
“that approach is no longer sustainable or responsible.”
in its preliminary budget summary, city administration also recommends an increase of the utility rate of 5.82 per cent. both proposed increases would translate into an estimated $204 more per year in property taxes and $116 more per year on utilities in 2025.
the city of regina calculates such estimates based on an average residential property assessed at a value of $315,000 and an average utility account using 15 cubic metres of water per month.
administration’s report notes a number of pressures at play, including larger funding asks from city partners like the regina police service (rps) and “remarkably high inflation” on capital projects and core services.
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the cost to deliver city services has increased by 7.9 per cent since 2020 but mill-rate increases for operations have not kept pace, having only increased by 1.2 per cent in the same time frame, according to administration.
city council will conduct final budget deliberations in mid-march.
in 2024, council approved a mill-rate increase of 2.85 per cent, down from 5.5 per cent originally proposed by administration. the council at the time cited concerns about increasing taxes on residents during an affordability crisis.
tax increases in past city budgets have averaged three per cent per year since 2020 and around four per cent between 2020 and 2015.
of the overall proposed mill-rate increase for 2025, 1.9 per cent would go toward civic operations, 2.25 per cent to the rps and 2.21 per cent to the regina exhibition association ltd. (real), which operates the real district, including mosaic stadium.
dedicated mill rates that were approved by council in 2024, comprise another two per cent. these include a 1.34-per-cent increase to fund the east-side water network expansion project and 0.5 per cent for the lawson replacement.
saskatoon city council also faced budget pressures in 2024, ultimately passing a mill-rate increase of six per cent for that year and pre-approving a 5.64-per-cent increase for 2025.
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regina public library reveals 2025 budget ask
the regina public library (rpl) is looking for a few more tax dollars from the city this year, in part to further plans to replace its central downtown branch in the next five years.
the organization’s board is seeking a 4.58-per-cent increase to the library mill rate to cover the cost of operations in 2025, plus an additional 5.5-per-cent increase to begin saving funds for the new main branch.
if approved, the two increases would bump the city’s mill rate up by one per cent or about $21.12 more per year owed by regina taxpayers.
“for a lot of reginans, that is cheaper than buying a paperback novel,” said rpl board chair marj gavigan told media tuesday. “borrow two paperback novels from the library and you’ve got your money back.”
rpl representatives will present a budget submission to executive committee on wednesday, before it goes to council for full consideration in mid-march.
curtis smith, the rpl’s executive director of finance and strategy, said the 4.58-per-cent ask represents rpl playing catch-up after several years of an average increase to the library mill rate of two per cent each year.
gavigan said the lower increases were made “intentionally” to lessen the financial burden on taxpayers, but rpl now needs to increase revenue to continue delivering services and meet public demand.
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“for us and for the city, two per cent just doesn’t do it. three per cent just barely keeps the lights on,” said smith. “what we’re asking for is really what we need.”
gavigan said the board hopes city council will agree and hold true to a promise to implement a dedicated mill rate for a new central library.
city council pre-approved the dedicated mill rate back in july, at the same time it approved backing up to $119 million in debt for the project.
the rpl currently has $20 million held in a central library reserve for the project, which is expected to cost between $120 million and $150 million. the project’s dedicated mill rate will increase 5.5 per cent each year for the next five years, generating $8 million per year for the fund.
current plans see designs starting in 2026 and construction in 2029. no decisions on a location have been made.
— with files from alec salloum and the julia peterson, saskatoon starphoenix
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