Regina city council debates 3.49% property tax hike as budget considerations continue

The City of Regina is proposing a tax increase of 3.49 per cent in its 2022 budget.

City council continued debate Thursday on its proposed budget, after approving a $92.8-million net operating budget for Regina's police service on Wednesday.

Thursday's debate focused on the city's operating budget, including the 3.49 per cent hike to the mill rate, which determines the tax per dollar of a property's assessed value, expressed in "mills."

That rate increased by 2.34 per cent in 2021.

If approved by city council, the hike would work out to roughly $6.31 more per month, or $75.72 more per year, for a property owner with a home valued at $315,000.

Dedicated portions of the increase are already approved to go to Mosaic Stadium (0.45 per cent) and the city's recreational infrastructure program (0.5 per cent), plus added investment in the Regina Police Service (1.32 per cent).

The remaining 1.22 per cent increase would go to civic operations and projects, including:

• More than $50 million to improve and enhance Regina's road infrastructure network.
• $6.3 million to advance initiatives to support the city's target of being renewable by 2050, including $5.5 million for the development of a household food and yard waste program.
• $1.4 million for initiatives that will enhance community safety and well-being for Regina residents.
• $1.2 million to create safer sidewalks by addressing a backlog in sidewalk maintenance.
• $1 million to make recreation and leisure activities more accessible for people with disabilities.

The city's utility rate is also set to increase five per cent. That would amount to an increase of $7.25 per month for the average homeowner.

Of that, two per cent "relates to advancing the lead connection replacement program," and the remaining three per cent is targeted to "regular operating, maintenance and capital infrastructure investment," according to the city's budget document.

Community wellness program debate

Thursday afternoon's biggest debate came from a motion put forward by Coun. Daniel LeBlanc (Ward 6). He wanted to use surplus money from the police budget approved Wednesday to fund a community support program in the Warehouse District pilot project. 

The structure and spirit of the pilot project is meant to mirror the existing downtown community support team.

Councillors agreed the pilot was needed, but disagreed on the source of funding. 

Coun. John Findura (Ward 5) amended LeBlanc's amendment, suggesting the money needed — around $209,000 — instead be taken from the existing $875,000 already set aside for community initiatives. 

Findura's amendment ended up passing 7-4, with Couns. LeBlanc, Cheryl Stadnichuck (Ward 1), Andrew Stevens (Ward 3) and Shanon Zachidniak (Ward 8) voting against the amendment.

Couns. Lori Bresciani (Ward 4) and Terina Shaw (Ward 7) both made comments about wanting to use existing community initiatives money for the pilot instead of police surplus, saying the pilot project falls perfectly under that umbrella.

LeBlanc countered, saying $875,000 is not really a lot of money, and that council should use the police budget surplus for a community safety initiative.

Now, almost a quarter of the money set aside will be used for the pilot program. 

Capital budget

The city's capital budget, meanwhile, includes $136.3 million for road, bridge and sidewalk construction, as well as facilities improvements.

Other projects slated for construction are:

• $10 million for the Saskatchewan Drive corridor.
• $4.7 million for bridge infrastructure renewal.
• $10 million for the Pinkie Road upgrade (Sherwood Drive to Dewdney Avenue).

The capital budget will likely be debated Friday, as the bulk of Thursday's debate was focused on the operating budget. 

COVID's impact

The city will dip into some of its reserve funds to cover the impact of COVID-19. 

With the citys costs from the pandemic totalling around $4.6 million so far, $1.8 million from the COVID-19 recovery reserve is set to be transferred as well as $2.8 million from the general fund reserve.

The city also fell behind on the municipal revenue sharing grant because of COVID, so nearly $2.1 million is being requested from the general fund reserve to cover the shortfall.

Council will reconvene at 9 a.m. on Friday to resume budget deliberations.