Council to consider mill rate increase for east-side water project

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City council’s first post-election meeting started off with a few budget previews for new councillors to digest, including a proposed 1.39-per-cent increase to 2025’s mill rate for a major water infrastructure project.

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Previously called the Eastern Water Pressure Solution, the Water Network Expansion project includes construction of a new city pump station and two reservoirs on Redbear Avenue, plus 8.4 kilometres of water-main pipes to serve the growing population in Regina’s east and northeast neighbourhoods.

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With little fanfare on Wednesday, executive committee (comprised of mayor and council) unanimously agreed to endorse the recommendation. It goes before city council next Wednesday for final approval.

Deputy city manager of city operations Kurtis Doney said the expansion is critical to ensure residents have reliable water volume and pressure so the city can stay in line with fire safety regulations.

City council previously approved a 0.6-per-cent mill rate increase in 2024 to begin the project. A supplemental report presented Wednesday noted that a third increase of 1.68 per cent is required in 2026 to finish the project, for a total of 3.6 per cent. Once fully implemented, the average household can expect an additional $87 per year in property taxes.

The entire project has been approved with a $185-million budget. To move ahead in 2025 on the pump station and reservoirs, the city plans to take out a $100-million, 30-year loan. Another $85 million has been worked into the city’s capital plan for 2026.

Administration says there are no other sources of funding possible to back this project, aside from borrowing. The costs fall within the city’s current $660-million debt limit.

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Executive committee also considered a request from administration to pre-approve a portion of capital spending for 2025, as budget discussions are likely to be moved to the spring to better prepare the new mayor and council.

The ask is to green-light $92.3 million for general capital projects and $131 million for utility capital projects in 2025, representing about 43 per cent and 80 per cent of those budgets, respectively, for the year.

Without the early go-ahead, administration said the projects will face significant delays or could be at risk of being cancelled. Both recommendations will be considered by city council for final approval on Dec. 11.

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