Tariffs add $1 million to Regina transit budget, other impacts unknown

Regina Mayor Chad Bachynski says the city will have to acknowledge the impact of tariffs during a trade war he described as “ridiculous.”

Quarterly budget forecasts received by city council on Wednesday showed a $1 million overage from the transit services budget, which was attributed to tariffs increasing the cost of replacement parts.

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“At the end of the day, we do have contracts and things that we have to review,” Bachynski said following the meeting.

“Are there local suppliers? Are there adjustments that we can make based on the economy that we have here in Canada, as well as any impacts from the United States?”

He said other impacts from the ongoing trade war between the two nations are difficult to predict.

“For us, it’s really about being very diligent on monitoring the situation” Bachynski said, adding that the city is looking at some steps “to just try and stabilize as best we can and lessen the impact as best we can.”

Calgary Mayor Jeromy Farkas said this week that tariffs and countertariffs could cost his city close to half a billion dollars extra on existing contracts.

Farkas said he plans to work with the Big City Mayors’ Caucus on a proposal for help for cities from Ottawa, and Bachynski said he’ll also be involved in that process.

“I’ll obviously be there with him, supporting that ask and making sure that we do our part to support Canadian municipalities across Canada when things like tariffs start to impact our procurement and our operations,” he said.

Bachynski said he’s concerned about the larger economic impacts of the trade war.

“This entire tariff and trade war is is frankly ridiculous,” he said. “It is not helping anybody. It’s hurting everybody, and so I think the longer it goes on, we’re going to see those impacts across the country.”

Bachynski added that he supports Prime Minister Mark Carney’s move to walk away from negotiations with the United States.

“I respect and I back up our prime minister,” the mayor said. “We want to have respectful adult conversations at the negotiating table, so that’s what I expect. And when the American government is ready to have those conversations, I expect we’ll be at the table.”

Regina’s second-quarter forecast showed an operating surplus of $2 million, or 0.3 per cent, when compared to the 2026 budget.

Tax revenue was $3.4 million higher than expected due to growth, while service fees were $1.2 million higher and more usage of recreation facilities has brought in an extra $400,000.

On the other hand, firefighter salaries are expected to run $1 million over budget because of a newly signed collective agreement.

The report also showed an additional $1 million in computer hardware and software costs.

Another report showed the city’s outstanding debt was sitting at $538.3 million as of Dec. 31. The report warned that council will have to choose future priorities carefully, with an estimated $1.1 billion worth of projects beyond the five-year capital plan that haven’t been approved.

Last year, the Saskatchewan Municipal Board approved an increase to the city’s debt limit, bringing it up to $890 million.

The report also noted that in May, the city’s credit rating was maintained at AA+ with a “stable” outlook, the second highest possible rating. But credit rating agency S&P Global said high inflation and future unfunded projects are straining Regina’s ability to contribute to capital projects from the budget.

Those projects include several wastewater improvements, Arcola Avenue Corridor improvements, the Ring Road railway relocation, and the replacement of Regina’s central library.

Proposed social enterprise hub approved despite concerns

Council unanimously approved a proposal by the non-profit group Growing Young Movers that will see a hub built on a vacant lot in North Central for the organization’s social enterprise effort, Building Futures Collective.

The proposal survived an effort by Ward 1 councillor Dan Rashovich to table the report in order to seek more information. He raised concerns about whether the building and funding were needed, and whether the organization is duplicating the efforts of other groups.

Rashovich’s motion was defeated.

The proposal will see a corner lot on Retallack Street, which has been vacant since a home there was destroyed in an explosion in 2022, transferred from the province to Building Futures Collective, which is paid by the city to maintain empty lots held in Regina’s land bank.

The city will also provide $300,000 in federal Housing Accelerator Fund dollars for construction, as well as a five-year property tax exemption.

Council to distribute $2 million in provincial funding

Council also gave final approval to distributing just over $2 million from the provincial government for community outreach and extreme weather spaces.

It also passed an amendment to the proposal, requiring the administration to provide a report each year on how well the funding is working.

This year, it’s set to be distributed as follows:

• $700,000 to the Nēwo Yōtina Friendship Centre for its Seven Fires extreme weather space;
• $398,000 to All Nations Hope: Awasiw for an extreme weather space it provides;
• $550,000 to Carmichael Outreach to operate its own extreme weather space; and
• $391,445 to the new Community Outreach Team, which is replacing the now-defunct Regina Street Team.

There’s an option to renew the funding each year.

The city is still in final negotiations with the new operator of the outreach team, whose identity is expected to be revealed later in September.