City’s 2026 Draft Budget Points to Possible 15.69% Tax Hike
Regina residents are facing the prospect of a significant property tax increase next year as the City of Regina’s latest budget estimate outlines a potential 15.69 per cent mill rate hike for 2026. But officials stress the figure is far from final.
The estimate, released Thursday, is part of a nearly 600-page draft budget document that outlines the projected cost of maintaining current service levels. Chief financial officer Daren Anderson emphasized during a media briefing that the number is not a formal tax proposal.
“This is not a proposed mill rate increase, nor is it a funding request,” Anderson said. “These are the numbers we need to maintain status-quo services heading into deliberations.”
How the Numbers Break Down
A mill rate is the amount of tax payable per dollar of a property’s assessed value. In Regina, one “mill” equals one-tenth of a cent, or $0.001.
The administration’s preliminary calculations project $687.5 million in expenses for 2026 against $635.71 million in expected revenue, leaving a $51.8-million gap. Closing that gap would require a 15.69% increase over 2025 rates.
That increase includes:
- 13.49% to continue funding existing civic services
- 2.2% for the Regina Police Service
If council approves a tax increase at that level, the average homeowner with a property assessed at $324,000 would pay an additional $33.04 per month, or $396.48 annually.
Could the Increase Be Higher — or Lower?
Anderson warned the mill rate requirement could climb as high as 18.92 per cent if council chooses to fund several outstanding budget requests. Those include:
- The city’s new homeless encampment strategy
- A shift to hybrid bus replacements
- Accessibility upgrades to municipal playgrounds
- Additional internal projects submitted this fall
At the same time, council has also asked administration to model alternative scenarios, including increases of 3%, 6.5%, 7%, and 9%, and even a 5% cut to the 2025 budget baseline.
Acting city manager Jim Nicol said those alternatives come with “stark reductions”, particularly the five-per-cent cut, which would require trimming up to $71.56 million in spending.
Among the cost-saving measures listed:
- Cancelling major city events like I Love Regina Day
- Reducing hours for the municipal service request phone line
- Cuts to fire services and other frontline operations
“You cannot find $68 million sitting under a rug somewhere or in a closet,” Nicol said, noting the severity of cuts needed to meet the most aggressive scenarios.
Utility Rates and Capital Spending Also Climbing
Beyond property taxes, the draft budget estimates a 7.82% increase in utility rates for 2026. For the average homeowner, that would mean an additional $14.05 per month.
The capital plan also outlines a larger-than-usual investment, with $188.4 million in projects slated for 2026 as part of a $1.24-billion five-year capital forecast. City officials say the spending reflects the mounting pressure of Regina’s aging infrastructure.
“Our capital deficit is something that’s coming to roost,” Anderson said.
Looking Ahead to 2027
As Regina shifts back to a two-year budgeting cycle, the draft also projects:
- 6.06% mill rate increase in 2027
- 10.02% utility rate increase in 2027
These figures could change depending on decisions made for 2026.
Nicol noted that even a 15-per-cent increase would be among the highest tax hikes Regina has seen in the past two decades. Rising costs, inflation, and years of budgets that did not keep pace with inflation are key factors driving the pressures in this year’s draft.