Property taxes will be going up by 3.99 per cent this year, a decision that was made at Regina city council’s annual budget meeting Monday night.
The original proposal was for a 4.18 per cent increase. This decrease lowers the amount of property tax the city will collect by $400,000.
At this rate, the property tax levy makes up $214.2 million of Regina’s almost $437.3 million operating budget.
“We listened to them, but we’re also saying that we can’t go down too much lower, because frankly we need to provide these services we enjoy each and every day,” Mayor Michael Fougere said.
“We’re the fourth fastest-growing city in Canada, and the second fastest-growing province in Canada. So we need to invest in infrastructure and quality of life, so there’s only so far we can go.”
Councillor Sharron Bryce brought forward the motion to use money from the 2016 operating surplus to lower the mill rate.
After a period of debate, her motion carried 8-3. Councillors Mike O’Donnell, Jason Mancinelli, and Andrew Stevens voted against lowering the rate.
O’Donnell’s opposition comes from concern about the provincial government limiting the amount of revenue shared with cities. Mancinelli and Stevens based their support on this concern as well.
Council also approved the $84.5 million Regina Police Service budget as presented.
READ MORE: Regina city council approves $84.5 million police budget
Other significant line items include $42.6 million for Fire and Protective Services, $31.5 million for road and bridge maintenance, and $9.3 million for snow removal.
The March water rate increase was dropped Monday night from four per cent instead of five per cent.
Administration said it will save residents about $1 per month on the increase, going up to $6.52 instead of $7.52.
The city will be conducting a utility rate review, which will help determine future rate changes. This includes the previously proposed five per cent increase scheduled for January 1, 2018.
These increases aren’t sitting well with some groups that made presentation at Monday night’s meeting, such as the Canadian Federation of Independent Business (CFIB).
“The reality is this is going to increase the cost of doing business here in Regina and it’s going to make us less competitive at a time when we’re seeing optimism lag , we’re seeing hiring plans weaken,” Jennifer Henshaw, policy analyst, said.
Henshaw also brought forward recommendations from the CFIB. These include reducing the amount of city staff through attrition as more people approach retirement and bringing public sector wages more in line with the private sector.
In additional spending, city council approved three items worth $323,000 using surplus funds from the 2016 budget.
The estimated 2016 surplus is $9.8 million.
These projects include $193,000 to be given to the Wascana Centre Authority to expand the parking lot in Candy Cane Park, $100,000 to Economic Development Regina for their Regina Advantage program, and $30,000 to subsidize taxi rides for paratransit users.
In recent weeks paratransit users have been lobbying the city to take strides to get the ride refusal rate to zero, saying it can be difficult to book rides in evenings and on the weekends.
Now the city will set aside $30,000 to help cover taxi rides when paratransit buses are not available.
“I think this $30,000 will help to an extent. It’s not perfect, but we still have some more work to be done,” paratransit rider Dylan Morin said.
The city will be conducting a paratransit review this year.
Hillary Aitken, YWCA senior housing director, made a funding pitch for affordable housing programs and the elimination of homelessness. She’s disappointed that council isn’t using any of the surplus money to target this issue, which Mayor Fougere campaigned on.
“Their ability to invest in other things, even after a budget has been drafted, proves that it would be easy and very doable for them to make ending homelessness a priority,” Aitken said.
Fougere says they do want to make homelessness a priority, but are calling on additional help.
“The province puts no money directly into the Housing First Strategy. That really is a critical factor in providing support and moving toward the elimination of homelessness. We cannot do it ourselves. We cannot do it ourselves. The mill rate would be through the roof,” he said.
When asked for a comment, a provincial government spokesperson listed off affordable housing contributions to programs like Habitat for Humanity and work done through the Saskatchewan Housing Corporation.
“It’s important to note that Saskatchewan Housing Corporation funds projects, not wide-ranging strategies,” the spokesperson said by email.
“Sask. Housing has been involved in several projects over the years that support the goals of the Homelessness Partnering Strategy, and would consider any projects that come forward that support the principles of Housing First as well.”
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