No ‘easy decisions’ for city council

Tax hikes, cutbacks on the table to address $10.3-M budget gap

When Regina’s city manager Chris Holden spoke to council on April 10, he did not sugar-coat the task ahead for councillors with the amended 2017 municipal budget.

“The situation we are in is very concerning,” he said. “These are not easy decisions. They are not recommendations that the administration, or our elected officials, want to be grappling with.”

On Tuesday night, council will begin making decisions on how to fill the $10.3-million hole in the budget, created by the loss of grants-in-lieu and changes to PST in the provincial budget.

Proposed changes put forward by city administration include a 2.5-per-cent mill rate increase to generate $5.25 million, over $3 million in savings from the reduction or elimination of various programs and services, and a $1-million reduction in the Regina Police Service budget.

After a week of hearing from residents, city councillors have a clearer picture of what they expect from the amended budget.

“I think there will be a tax increase,” said Coun. Bob Hawkins. “I think that we have listened hard to delegations. People have made compelling points ... my preference is not to touch the reserves,” he added.

Staying away from reserves was a common thought among councillors, who saw it as a temporary solution to an ongoing problem.

“I have had a lot of push-back on using reserve funds to pay the deficiency. It is such a shortsighted process. If the government announced this was a one-time thing, I would be inclined to think things would be normal next year and cover off our reserves,” Coun. Jason Mancinelli said.

“If we cover off reserves without making other adjustments, or forward-thinking, all we do is put off that amount owing. This is not a one-time debt. It is a new financial reality for the city.”

“I don’t support us using our reserves,” said Coun. Sharron Bryce. “I think that is not prudent of us.”

Council approving a mill-rate increase is likely, and it could range anywhere from 2.5 per cent to five per cent, depending on choices made Tuesday.

“A 2.5-per-cent increase does not cover the needs of the city,” said Mancinelli. “The proposed (service) cuts are well-intentioned but because of the late timing ... that means the actual savings won’t be that high.”

Mancinelli, to protect various services, would like to see a mill rate increase of four to five per cent.

“To meet service expectations, that would be more in line,” he said. “I personally feel that I let a lot of residents down because they are not in favour of taxes. I am just looking at things realistically. Residents expect services.”

Hawkins stated that due to the provincial cuts, council is left with little choice on a mill-rate increase.

“There is a provincial download, we have no choice,” Hawkins said. “The province has imposed this on us.”

As for residents, the councillors stated they felt many understood the difficult situation the city was in.

“The city had already reached a good budget for the coming year ... we are forced into a difficult situation,” Hawkins said. “I appreciate the public recognizing that. People understand that this is not a problem created by the city. They understand the city is well run.”

Coun. Joel Murray has also heard from residents and agrees that they have been understanding. “They are very understanding of the situation we are in,” he said. “They understand the decisions we have before us have only been made in the last two weeks, whereas you would normally have a full year to design a budget. We are literally scrambling.”

“No one wants a tax increase and no one wants money wastefully spent, but I think people understand the seriousness of the situation,” Mancinelli said.

No matter what happens Tuesday night, Hawkins agrees with Holden that decisions will not come easy.

“It is a difficult situation, and it is not easy, and it is not pleasant.”