Tank: Massive property tax jump in Regina should surprise nobody

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Three months after only two city councillors were re-elected by Regina voters and the mayor got the boot in favour of a political newcomer, more carnage looms.

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Regina’s new mayor (checks notes) Chad Bachynski and the mostly rookie council are now tasked with navigating a proposed 8.5 per cent property tax hike recommended by the city hall administration.

No doubt Regina’s rookies will try to beat that down to a more manageable number, particularly during an affordability crisis. But they will struggle to escape the underlying issues that resulted in the preliminary surge.

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A report from Regina’s civic bureaucrats explains that city council’s emphasis on keeping property taxes low is catching up to city hall because the cost of running the city has risen faster than the revenue generated.

Last year, Regina residents got a relatively minor 2.85 per cent increase, which seemed improbably low given the rises elsewhere in Canada (8.9 per cent in Edmonton, 9.5 per cent in Toronto, 7.5 per cent in Vancouver).

But Regina property owners are now seeing the repercussions of that low hike, which coincidentally happened during an election year. Politicians, like defeated one-term mayor Sandra Masters, likely thought a lower tax increase could boost her re-election chances.

Last year’s tax increase in Regina was reduced from a proposed 5.5 per cent. Yet the high turnover on city council suggests few voters were swayed by the reduction.

For perspective, Saskatoon’s highest property tax increase so far this century happened in 2014. It was 7.43 per cent, which included a special road repair levy to fix the city’s decrepit streets.

But that was a different era. We’re now living in a time when people are struggling to pay the bills and suddenly threatened by the economic instability of a Donald Trump presidency in the U.S.

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In 2023, Saskatoon passed a two-year budget with property tax increases of six per cent last year and 5.64 per cent this year. Those sound high, but they were whittled down from the originally projected jumps of 18.6 per cent and 6.95 per cent, respectively, as inflation took an unprecedented toll on city hall spending.

Yet only one incumbent city councillor in Saskatoon lost his seat — and given that former councillor Darren Hill barely squeaked by to win in 2020, his loss likely had little to do with tax hikes. Two veteran councillors were acclaimed and the other two won handily.

Mayor Cynthia Block made history by becoming the first woman to occupy city hall’s top office, despite prominent challengers and an insidious online campaign to discredit city council.

Apparently, voters approved of her performance as a city councillor, which included voting for the previous budget despite an election looming. Notably, though, three of the four incumbent councillors who were re-elected had voted against the two-year budget.

In December, Saskatoon city council managed to somehow reduce the property tax hike to 4.96 per cent while also increasing spending on snow removal amid a snowy winter.

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Now, there’s no good time for a tax hike of 8.5 per cent, which would mean $204 more for an average assessed Regina home worth $315,000. And Regina’s administration is also recommending a 5.8 per cent jump in utility fees (Saskatoon water rates are rising 5.4 per cent).

But, in addition to the cost-of-living struggles fuelled by inflation, Saskatchewan property values are also being reassessed this year, which could mean an even bigger tax burden for those whose property value has increased.

It’s clear, however, that the pandemic disruption continues to upend municipal budgets throughout Canada.

Some other 2025 property tax increases from across Canada are revealing: Edmonton (6.1 per cent and 6.8 per cent next year), Winnipeg (5.95 per cent), Toronto (a preliminary 6.9 per cent), Victoria (a proposed 12.2 per cent) and Hamilton (a preliminary 6.3 per cent).

Outliers exist, like Calgary (3.6 per cent), Ottawa (3.9 per cent) and Vancouver (3.9 per cent, although it’s coupled with a whopping 18.2 per cent hike in utility fees).

But those lower tax hikes are probably just procrastinating when it comes to paying the full costs. Just ask Regina taxpayers.

Phil Tank is the digital opinion editor at the Saskatoon StarPhoenix.

[email protected]

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