Regina expects ‘status quo’ budget despite COVID-19 impacts

A sneak peek into Regina’s annual budget shows the city is confident it can offset further costs of managing the COVID-19 pandemic.

The city’s administration presented a budget update to council during its Executive Committee meeting Wednesday. The report anticipates no increase for city operations, though dedicated annual increases for Mosaic Stadium and the residential road renewal program will equal a nearly one per cent increase.

A further 1.4 per cent increase is anticipated for the Regina Police Service’s budget.

The administration’s proposed budget is expected to be released in late February or early March, with council deliberating and voting on it a month later.

Chief Financial Officer Barry Lacey told council the intention was to keep things steady during a time of continued upheaval due to the pandemic.

“It was very much focused on status quo, not impacting current service levels and the services we provide,” he explained.

The city’s revenue is expected to grow in 2021, thanks in large part to taxation growth, or new tax revenue created by construction and development of new properties.

Expenses are also up, with a $2.6-million increase in salary and benefits and $2.5 million budgeted for the city’s Housing Incentive Program, which helps fund construction costs and provide tax breaks for affordable housing creation.

With an expected $12-million impact as a result of the COVID-19 pandemic, the city’s total funding gap for operations is $19.5 million. Lacey said $15 million in previously identified annual savings will take care of the bulk of it, but $5 million in additional savings should be achievable.

He provided examples of initiatives like reducing energy costs, cutting conference, training, and travel budgets, reducing expenditures in roadway operations, cutting equipment rentals, and reducing facility costs by having employees work from home when office space is being renovated.

In fact, the city pointed out areas where services are being expanded, including an $800,000 investment in creating an energy and sustainability framework, expanding recycling in city facilities after a successful pilot program, and enhancing winter road maintenance.

Some councillors expressed their appreciation for the direction the administration is taking. Ward 2 Coun. Bob Hawkins singled out the focus on sustainability in particular.

“Council has been talking about the environment in a serious way for at least the last two years,” he said. “Clearly in this budget presentation we see the environment being underlined and I’m pleased to see at the financial level this is being taken so seriously, because if we don’t get the finances right we won’t get the projects right.”

City-affiliated organizations expecting increases

The Executive Committee also accepted budget requests from the city’s arm’s-length organizations. All are requesting increased support in 2021, with COVID-19 the primary reason.

Regina Exhibition Association Limited, which operates Evraz Place on the city’s behalf, is asking for $400,000 in operations funding, which is $300,000 more than last year. It says the impacts of COVID-19 have decimated its revenue.

Economic Development Regina is asking for a two per cent increase in its core funding. It also wants an extra $200,000 to work on helping the events, conventions and tourism sector recover from the devastating impacts of COVID-19.

The Regina Public Library is asking for a 2.9 per cent increase in the amount it receives from your property tax bill. The board says it’s needed to deal with rising costs to deliver its services.

During the pandemic, the demand for digital services, like audiobooks and e-books, has increased between 76 and 130 per cent. The library also has a two per cent wage and benefits increase on the books for 2021.

All three requests were tabled for further discussion during the budget deliberation process, which is expected to happen in late March.