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Proposed tax increase to cover Regina’s budget shortfall

The City of Regina's administration has made several recommendations to cover its budget shortfall, including increasing the mill rate and cutting the police budget. Alexa Huffman / Global News

Regina residents could be facing another potential tax increase.

City administration has made recommendations to address the $10.3 million budget shortfall. They include a mill rate increase of 2.5 per cent, which is in addition to the 3.99 per cent originally approved.

The total 6.49 per cent increase would cost the average homeowner with a $350,000 house an extra $118 more than last year.

City administration is also recommending a million dollar cut to the police budget.

According to administration’s suggestions, program and service reductions would save nearly $900,000. Several other cost-saving measures are also included, such as hiring freezes and a moratorium on out-of-province non-essential travel.

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Traffic bylaw fees and street use permits could also jump by 20 per cent.

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City administration didn’t recommend drawing on the city’s reserves to cover the shortfall, which is something Premier Brad Wall had suggested.

“[Our recommendations] are a combination of immediate changes and commissioning of some work to be completed in the near term to review policy and programs to see what else we can do to meet the challenges we’ll face in 2018,” city manager Chris Holden said in a statement.

The proposed budget will be balanced through a combination of approximately $924,000 in revenue increases, $4.1 million in reduced expenses and an additional 2.5 per cent mill rate that would generate an extra $5.25 million in revenue.

The city is required by law to balance the budget each year and was required to reopen and rebalance this year’s budget after it received less money than expected from the province.

These recommendations will go before city council on Monday night.

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