Regina mayor sees both sides of proposed property tax increase

Regina Mayor Sandra Masters appears to be looking at both sides of the potential property tax and utility increases unveiled on Friday.

“We know that between interest rates, inflation, grocery costs, fuel costs, everything is up for citizens – it’s also up for ourselves. So if inflation overall is sitting at 4.1 per cent, is that a reasonable mill rate increase in order to accommodate the ongoing investment?” asked Masters.

The city’s proposed budget included a mill rate increase of 2.2 per cent, which adds up to about $4.30 a month for a $315,000 home in Regina. The proposed plan also included an overall utility bill increase, including a rate hike and inclusion of a new waste services fee, adding up to between $15.12 and $22.73 a month, depending on the size of a home’s garbage bin.

Masters said mill rates can add up quickly when the city is talking about things like $1.8 million more for winter maintenance, $1.1 million more for fuel and $1 million for a homeless shelter.

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The mayor said nobody likes tax increases, but the city needs to increase its revenue to provide services.

“We have very rigid, hard lines. We have to grow our tax base, which you saw a little bit of modest growth but, barring that, when your costs go up, the only avenue we have, really, is through property tax increases,” explained Masters.

To help keep the increases down, city administration is recommending deferring some capital projects. The city’s part of the 11th Avenue Revitalization Project is suggested to be pushed from 2024 to 2025, and both the improvements to Scarth Street and the Saskatchewan Drive Project could be pushed from 2024 to 2027.

Masters said it was disappointing to see some of those projects being pushed back, but it helped avoid a much larger tax hike.

“You’re going to have to defer and step into them in some (respects), or we could talk about an eight or a 10 (per cent increase), but no one is going to do that so you have to make those tradeoffs when you’re looking to do the city building,” said Masters.

City administration talked about being able to find millions of dollars in efficiencies to save money in the budget. Masters said she’s pleased with that, but isn’t sure if there’s been a hard enough look for potential savings.

Regina’s budget is expected to be debated at council starting on Dec. 13, and three days are set aside for the deliberations.