Regina city council refining budget process with hopes of limiting stark property tax increase in 2027

Regina city council is considering budget changes following last year’s record property tax increase. Donovan Maess reports.

Fresh off approving the city’s highest single-year property tax increase in its history, Regina city council is looking for ways to improve budget deliberations while keeping property taxes increases more stable.

“We’ve taken some lessons learned and some feedback from the last go around,” Mayor Chad Bachynski explained.

In December as part of 2026-27 budget talks, council approved a property tax increase of 10.9 per cent – the largest increase in the city’s history.

That is lower than the originally forecast 15.82 per cent administration brought forward prior to deliberations and was accompanied by a utility rate hike of 7.82 per cent.

• City council approves record 10.9% property tax increase, 7.82% utility rate hike

Following a recommendation from the city’s audit and finance committee, city council approved its process for 2027-28 budget deliberations Wednesday.

Within the proposal, city council adopted a strategic imperative that, “Regina’s municipal property taxes are within the lowest 25 per cent of taxes among comparator Canadian cities.”

To meet this strategic imperative, any 2027 mill rate increase must be at or below 5.81 per cent.

“The strategic plan is to remain in the bottom 25th percentile to try and get some more stability and predictability in terms of what our increases look like,” Bachynski told reporters after Wednesday’s council meeting.

“That doesn’t mean it can’t be higher or lower at council’s direction. It’s the guideline administration will use when they’re calculating and formulating what service levels they’re looking at, in correlation to the budget starting point.”

Implications

According to city officials, the primary forecast of 15 per cent for last year’s budget talks reflected the necessary increase to reach optimal service levels.

Some councillors rose concerns about the implications of not knowing how much money would be required to adequately operate, if the increase was just five per cent.

“It wasn’t necessarily a recommendation, it was just information,” Ward 8 Coun. Shanon Zachidniak said. “It was then it was up to us to determine what to do with that. My preference is a recommendation from administration.”

“I’d be thrilled to see property taxes not be as high as last year, but I first want to understand the needs of the city,” Ward 3 Coun. David Froh added. “I certainly want to see a recommendation personally from administration. But most importantly, I want to see the needs to run our city properly before I agree to any number.”

• Regina asking for public feedback ahead of 2027-28 budget

Administration says it will be bringing forward information outlining how service cuts, and or enhancements, will impact the budget.

“We will be drafting a proposed budget that administration proposes for council,” acting city CFO Jeff May told council. “It will be built so it keeps council’s strategic imperative in mind.”

“The starting point is an integral part of your strategic plan [council] passed last year,” added acting city manager Jim Nicol. “That pegs it right now at 5.81 per cent. We were clear in the implications, say notwithstanding your target; these things will fall off, they have an associated cost.”

Other councillors welcomed the plan in attempt to keep taxes from a stark increase, again.

“You just can’t leave this open ended like we did last year at 15 per cent, and in in two years, we’ve had almost a 20 per cent mill rate increase in this city,” Ward 1 Coun. Dan Rashovich said. “We have priorities and it’s our job with [those] priorities to give service levels. And I think that’s where administration will consult us about service levels and what type of service levels we can give to our priorities.”

Ward 10 Coun. Clark Bezo said he believes the plan improves the process from previous budget cycles.

“The only other things we could do is zero-based budgeting or just throwing everything on the table and see what sticks for a budget,” he noted. “This is a very good starting point and it’s good for consideration for what we’re doing moving forward.”

Mayor Bachynski says 2026 a ‘turning point’ for Regina in annual State of the City address

Other Saskatchewan cities are also facing budget pressures and increasing property taxes is the primary lever to increase revenue.

Saskatoon city council approved a tax hike of 6.7 per cent in its recent budget. Prince Albert finalized its general municipal tax levy at just 2.03 per cent, in addition to a $12 base increase. Moose Jaw’s council passed a 6.95 per cent property tax increase for 2026.

increase. Moose Jaw’s council passed a 6.95 per cent property tax increase for 2026.

The Canadian Taxpayers’ Federation says residents can not afford another massive hike.

“They are being stretched thin by grocery bills, gas prices and mortgage payments and can’t afford to have city hall pile more on top,” Prairie Director Gage Haubrich said in a statement to CTV News Friday.

“After last year’s record tax hike, Regina city council needs to put full effort into controlling spending and finding savings before reaching into taxpayers’ wallets for more. The city needs to spend this budget season looking for ways to cut spending and save Regina taxpayers from another unaffordable tax hike.”

Mayor Bachynski continued to hope to halt the stark property tax increases for future years.

“We took a very transparent, and frankly painful at times, approach to the budget last go around in order to put everything on the table,” he said. “We took feedback from the last go around and this is the next step forward.”

The 2027/2028 budget process will include a series of five preliminary city council budget meetings to review and discuss administration’s first draft of the 2027 budgets for General Operating, General Capital, Utility Operating & Utility Capital on this schedule:

• July 28, 2026 - 2027/28 General Operating Part I.
• August 25, 2026 - 2027/28 General Operating Part II.
• September 8, 2026 - 2027/28 General Operating Part III.
• September 22, 2026 - 2027–2031 General Capital Plan.
• October 6, 2026 - 2027/28 Utility Operating & 2027–2031 Utility Capital.

During these meetings, city council will have an opportunity to discuss what is included in the first draft of the proposed budgets as well as what is not included such as service enhancements or new services administration may recommend for consideration.

The final budget will not be approved until December.