The City of Regina ended the fiscal year with an operating deficit of just short of $5 million. (Geoff Smith/980 CJME file photo)

City of Regina reserves could be further depleted by 2025 deficit

By Geoff Smith Apr 24, 2026 | 6:02 AM

The City of Regina may have to drain a key reserve fund to less than half of its recommended minimum to make up a nearly $5 million deficit in 2025.

The preliminary financial results were presented to the city’s Audit and Finance Committee on Thursday. They show that while general operating fund revenues were over budget by 4.4 per cent, expenses were 4.9 per cent over budget.

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One of the biggest reasons for the deficit was a $4.5 million decrease from budget in Municipal Surcharge revenue from SaskPower and SaskEnergy. This was caused by the removal of the carbon tax, as well as budgeted SaskEnergy rate increases that did not go ahead.

A municipal surcharge is collected by the two Crown corporations and then forwarded on to the city.

Also, a new collective agreement for firefighters resulted in 2024 back pay being paid out, causing fire salaries and benefits expenses to come in $2.7 million over budget.

However, these were partly offset by $1.6 million in savings on fuel prices, and more people using recreational and cultural services, leading to nearly $1 million more than budgeted in fees and charges.

City council will now be asked to approve the transfer of $1.3 million in leftover dollars from the now-dissolved Community and Social Impact Regina (CSIR) into the General Fund Reserve – something council has already approved in principle – and around $4.99 million from that same reserve to cover the 2025 deficit.

The transfer would leave the reserve fund balance at $17.38 million as of the end of 2025. The reserve has a recommended minimum balance of $35.8 million and a maximum of $71.5 million.

Increased water sales led to a better outcome for the Utility Operating Fund, which came out with a $68.2 million surplus, $2.37 million higher than budgeted. That surplus will go into the General Utility Reserve.

And investment income was above budget by $5.73 million, an amount that will be split evenly between the General Fund Reserve and the Asset Revitalization Reserve.

Budget process to be locked down for 2027/28

Council will also be asked to approve the plan for setting the 2027-28 budget.

It scheduled preliminary council budget meetings for July 28, Aug. 25, and Sep. 28, 2026 to discuss the general operating budget, Sept. 22 for the capital plan, and Oct. 6. for utility plans.

The meetings would not include discussion on service enhancements or new services.

In addition, the committee is forwarding an amendment by Mayor Chad Bachynski to include a long-range financial model and 20-year financial plan when considering the budget.

Bachynski put together the proposal with outgoing chief financial officer, Daren Anderson, who said it will allow council to plan for long-term impacts of decisions made now.

“Just looking at one or two years, you really have no steering of where you’re going,” he said. “How do you make decisions today based on what’s coming down the pipe?”

Administration is currently using a model developed in 2016, and Anderson said there was additional information that can be incorporated into an update of it.

Based on council direction, any property tax increase will be limited to 5.81 per cent or less, even though that includes increases that have alraedy been committed.

According to the plan being sent to council, a final draft for the proposed budgets will be released publicly on Nov. 5, with deliberations set for Dec. 8-11.