REGINA — Another mill rate increase is likely coming for the 2026 budget as the City of Regina will take on more long-term debt to fund the Water Network Expansion (WNE) project and Development Charges (DC) projects.
Per a report, a mill rate increase of 2.24 per cent for 2026 would be needed to help recover the $115 million in debt acquired.
The $115 million in debt was approved by city council after the 2025 budget was finalized.
Of that $115 million, $85 million will go towards the WNE project, while the other $30 million will fund the DC projects.
City administration estimates the debt will take over 30 years to pay off, with an annual interest rate estimated at 4.25 per cent.
The mill rate increase will cover the roughly $6.9 million in annual principal and interest payments for 2026.
City council approved the WNE project in 2023, as roughly $185 million in debt is needed to fund the project.
The project is expected to last until 2026, helping the city accommodate a future-growing population of over 300,000 people. Further expansions of new facilities could increase the accommodation to a population of over 500,000 people.
Meanwhile, DC projects help support the growth of water treatment plants, water and sewer mains, roads, parks and recreational facilities.
There are nearly 20 projects in 2025 eligible for debt financing, totalling $61 million.
According to the report, the city will look into several long-term debt options for the DC projects, including a bullet debenture, a serial or amortizing debenture or a term loan.
Final approval of long-term debt funding will be considered at the May 21st city council meeting.
