4.18% tax hike proposed by Regina city hall, utility rate increase even higher

Regina taxpayers could be paying the city an extra 4.18 per cent in property taxes this year, according to the proposed municipal budget released Thursday.

This means a homeowner with a house assessed at $300,000 would pay an extra $101.76 per year ($8.48 per month).

City manager Chris Holden said an increase is needed so the city doesn't have to cut back on the services it provides.

He said the budget process this year has been a challenge with revenues down $8 million from last year, and with five per cent less in grant money coming in from provincial sales taxes due to a slower economy.

"We've had some challenges in terms of how do we maintain service levels, maintain services, make the investment in infrastructure we need, and still maintain, you know, an affordable mill rate increase and utility rate increase," Holden said.  

The hike includes a special one-per-cent dedicated tax increase for residential road renewal, as well as a 0.45-per-cent increase to fund the new stadium.

Also released was the proposed water and sewer budget, which contains a five-per-cent rate increase. That would translate into an increase of about $90.26 per year ($7.52 per month). Another five-per-cent increase is scheduled for January 2018. 

City officials said Regina is unique in terms of utility costs as it is not located on a reliable water source and needs to pipe in water from many kilometres away at Buffalo Pound Lake. The rate increase will help maintain the system into the future, Mayor Michael Fougere said. 

"Heaven forbid we have an issue where our water is compromised somehow, or that waste water's compromised. We have to invest to make sure that those systems work properly and we make no apologies for investing in that," Fougere said. 

In 2016 Regina residents paid second most among neighbouring major cities in Western Canada for water and sewer rates, paying about $1,805.07 per household in municipal utility charges. The highest is Edmonton, where residential customers paid $1,805.43. Saskatoon residents pay one of the lowest amounts at $1,202.18 that year. 

Among the big ticket items in the city budget are:

• $84.5 million for police.
• $43.9 million for capital spending.
• $42.6 million for the fire department.
• $9.3 million for snow clearing.

The budget may change depending on what city council decides to do with it. A special meeting to consider the budget is set for Feb. 13. 

Last year, the municipal portion of taxes increased by 3.3 per cent, while utility rates went up by five per cent.

There hasn't been a zero-per-cent tax increase since 2009.