‘Original sin of Pat Fiacco’: City workers’ union supports possible mill rate hike, business advocates opposed

More than 80 delegates addressed city council on the topic of the budget Tuesday. Donovan Maess reports.

As the second day of Regina’s 2026-27 budget deliberations continued Tuesday, more than 80 delegates spoke in person to council, many in support for funding to various city services, others against the forecasted mill rate hike.

Regina’s Civic Middle Management Association (RCMMA) strongly opposed any reductions to this year’s operating budget, which includes a 15.69-per-cent increase to the city’s mill rate.

“Property taxes have been artificially low for years now,” union president Ian Cantello told councillors Tuesday. “[Council] needs to make this decision so Regina can have the bright future it deserves.”

Cantello looked back several years and multiple council terms as the impetus of Regina’s current tax forecast.

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He put the blame on past mayors and council for transgressions the city is now paying for.

“This is an adjustment year,” Cantello said. “Go back to what I’ll term, ‘The original sin of Pat Fiacco,’ starting to put in like zero per cent, no mill rate years. Inflation is a thing, it always has.”

“Your mill rate needs to go up every year so long as inflation exists,” Cantello added.

Not only does the RCMMA support the near 16-per-cent property tax increase, it believes services should be enhanced and taxes to go up even more.

“Anything below the proposed 15.69-per-cent mill rate increase amounts to an austerity budget and the beginning of a long slide into mediocrity,” Cantello added. “Pass an 18.93-per-cent increase. Take the medicine now so Regina can be healthy in the future.”

Cantello says citizens deserve each of the services the city provides – and then some.

“Cities need to provide more for their residents, not less. We need to make a city that actually competes against other cities,” he told reporters. “That 18.93-per-cent increase is a vote for Regina that people can move to, enjoy, live and prosper.”

‘No more pie’

Meanwhile, not everyone believes council should approve the forecasted mill rate increase.

“You’re spending money you don’t have,” said Canadian Condominium Institute-South Saskatchewan chapter president Jeff Campbell. “The money you’re spending is the residential taxpayers’ money.”

“The City of Regina cannot even cover essential services for some condos,” he added.

Campbell says last year’s 7.3-per-cent mill rate increase council approved for 2025 forced a dozen condo owners he knows out of the place they live due to added costs.

The 2026 forecast is more than double that.

“You’re going to put people on the street. End of story,” he told council. “Everything’s going up. Everybody wants a piece of the pie. Well, there’s no more pie to get.”

“And you’re looking at borrowing money from the taxpayers,” Campbell added.

Businesses warn of impacts

Regina’s business community also feels a 15.69-per-cent tax increase would have significant impacts on the local economy.

“A near 16-per-cent increase cannot be viewed as consistent with a commitment to affordability,” Mike Tate, CEO of the Regina & District Chamber of Commerce said. “Even at nine per cent, the increase is well outside what is being considered and approved in comparable Canadian cities.”

Tate says a tax increase of this magnitude would cause the need for raised prices, for businesses to find added efficiencies in how they operate or even layoff staff.

“You’re putting that risk now on the businesses to have to survive that potential tax hike,” he said. “So how can we divest that risk and create as fair and equitable risk diversion as we possibly can is an approach council would be prudent to take.”

Downtown landlords also warned some tenants could leave the city if property costs rose significantly.

“There is a doubling effect of increased value,” Harvard Developments VP of Real Estate Tony Prsa said.

“What’s a reasonable mill rate you could handle commercially?” asked Ward 1 Coun. Dan Rashovich.

“Between five and five and a half per cent,” Prsa responded.

The Regina Chamber of Commerce had a series of recommendations Tate hoped council would entertain to support affordability for local businesses.

• Modernize non-residential development charges by shifting from per-hectare fees to a building-based model.
• The city undertake a comprehensive review of the efficiency and effectiveness of its core services, incorporating businesses feedback and reporting results, outcome.
• Collaborate with Regina Chamber to expand private sector investment in the city’s infrastructure and services.
• Implement a Regina version of Saskatoon’s business development incentive to attract new industries and expand the tax base through performance-based investment attraction.
• Explore the use of the Community Revitalization Levy as a dedicated funding tool to support strategic city center core projects.
• Partner with private industry, government and community organizations to develop long term, sustainable entrepreneurial hubs.
• Establish economic development zones aligned with Regina’s strategic priorities.

“We believe there’s a balanced approach here,” Tate said. “But these are areas we feel private industry can support.”

Despite concern about the forecasted rate increase, downtown advocates understand revitalizing the area comes at a cost.

“I heard you talk about investing in downtown to be safe and vibrant and I heard you talk about low taxes. Which one is more important? Because you can’t have both,” Ward 5 Coun. Sarah Turnbull asked Prsa.

“I would dare say, for the sake of downtown, it is the vibrancy,” he replied. “But I’m definitely not supporting 15.69 per cent.”

“If it’s aimed at Downtown vibrancy - we’re all in,” he added.

In addition to the 84 registered delegates, over 160 additional written submissions were also sent to council as part of deliberations.

Delegate hearings were scheduled to wrap Tuesday evening and council is set to begin its questioning of the budget to city administration beginning Wednesday morning.