PROPERTY TAXES
City urges 2.34% mill rate hike
Members of the City of Regina administration say a proposed bump in taxes this year has a lot less to do with the pandemic than you might think.
On Friday the city unveiled a proposed budget with a 2.34 per cent mill rate increase which is primarily driven by extra money in the police budget.
Mayor Sandra Masters said the mill rate increase is appropriate.
“It's about half of what I expected it to be,” she said. “It's a testament to the city and the civic administration in mitigating some of that impact.
“Costs naturally go up and again I'll commend the city administration for holding the line,” said Masters.
The way the increase breaks down is as follows: Mosaic Stadium accounts for .45 per cent of the increase, .5 per cent from the recreational infrastructure program, and the biggest contributor to the increase is the police budget, which is a 1.39 per cent of the increase.
The city says an average home with an assessed value of $315,000 will pay an additional $4.13 a month in property tax.
Barry Lacey, executive director of financial strategy and sustainability, said an increase of one per cent to the mill equates to an additional million dollars for the city.
With the proposed increases, the city can expect to see approximately $2.34 million increase to the budget from the mill rate.
Lacey emphasized that the budget has been developed in an environment of uncertainty amid the pandemic, and that its impacts will linger in 2021 and possibly beyond.
In the proposed budget, the city expects total expenses for 2021 of $480 million — $7 million more than the previous budget.
The city projects a decrease of $12 million in revenues tied to COVID -19 in 2021. Lacey said that figure is an estimate, given the tumultuous times.
Money to cover that shortfall comes from the Safe Restart funding from the federal government which was put into a new fund, specifically for COVID -19 relief.
The mayor said she was bracing for more than $20 million in losses caused by the COVID -19 pandemic when she started to campaign in 2020.
Money from the federal and the provincial governments helped balance the budget, said Lacey and city manager Chris Holden.
COVID -19 specific funding from the feds and Municipal Economic Enhancement Program (MEEP) dollars from the province allowed for project deferrals and reallocation of money to manage new costs from the pandemic.
UTILITY BILLS INCREASE
The city is also proposing a three per cent increase — about $4.44 on average for households — to the utility rate, which was approved by council for the years 2019, 2020 and 2021.
So according to these estimates, the average Regina resident can expect to pay an additional $102.84 in additional utility costs and property taxes.
“It's difficult to ask residents to pay more; we're looking for their understanding,” said Holden.
Still, Holden said this is the lowest mill rate increase since 2009 but he understands that “nobody wants to see a mill rate increase.”
“We know we're creating and proposing a budget in a very difficult time,” he said.
There are significant proposed improvements for city utilities though, including $58 million for things like water and waste water infrastructure renewal, water meters system replacement and money specifically for the Heritage Neighbourhood for stormwater improvements.
When asked about lead pipe replacement, Holden said there is talk of creating such a program but estimates that will cost an additional $36 million for total replacement of lead pipes in the city. The early stages of that program are expected to be before council in April.
UP-FUND POLICE
The Regina Police Service's (RPS) budget is now sitting at $100 million, a $4 million increase from 2020 when the proposed police budget was $96 million.
“The RPS is falling behind,” said Masters.
The mayor said nine years ago Regina had 193 police officers per 100,000 citizens. “We are at 166 today. The national average is 185,” said Masters.
Masters said the ask is “incredibly modest” and said the police are in need of additional funding. While in the summer of 2020 there were calls for defunding of the police, Masters was not in favour of the idea.
“We have a little bit of catch up to do and there is an intention to grow our population, so if we don't start catching up now we're just going to fall farther behind,” said Masters.
“Always concerns if there's going to be a mill rate increase,” said Masters. “It looks very responsible and allows for significant investment in the community.”
According to the city, the police budget is increasing primarily due to extra staffing and related costs, corresponding to the service's “strategic growth plan.”
Holden said he understands raising taxes during uncertain times is not the most popular move, but said the current economic environment and financial climate require it.
Holden highlighted that city found $5 million in savings in this budget — largely achieved through cutting down on travel, conferences, not hiring for vacant positions and fuel due to the pandemic.
But, the city manager emphasized “services will be the same or enhanced,” said Holden.
Other highlights from the budget include: $34.5 million for road infrastructure renewal; $7.7 million to improve aquatic infrastructure in the city; $52 million for park, recreation and cultural programs; and $39 million for transit.
Drawn from the General Fund Capital Budget, $133 million is expected to go toward projects and improvements including: $34.5 million for the street infrastructure renewal, $15 million for the Winnipeg Street Bridge replacement, an additional $4.2 million for renewal of other bridge infrastructure, $12.4 million to extend the life of city-owned facilities and $4.4 million for the Railyard Renewal Project.
An emphasis will also be placed on getting to the 2050 goal of Regina being 100 per cent renewable. Already $800,000 has been approved to develop a sustainability framework, and $25 million is proposed in the budget to go toward garbage, recycling collection and sustainable waste management.
“Investments we're making today don't only benefit this generation but future generations,” said Holden.
The proposed budget will go before city council on March 24 at 1 p.m.
Though Henry Baker Hall is closed, people can apply to attend by emailing clerks@regina.ca or calling 306-777-7263.
It's difficult to ask residents to pay more; we're looking for their understanding. CHRIS HOLDEN, city manager