The mayors of Saskatchewan's two largest cities have expressed cautious optimism regarding the provincial government's recent budget announcement, which includes increased funding for municipalities. While they welcome the additional financial support, both leaders emphasize that more substantial relief is necessary to address ongoing infrastructure challenges and rising property tax burdens.
Provincial Budget Includes Municipal Funding Boost
In the 2026-27 provincial budget unveiled on Wednesday, the Saskatchewan government pledged an eight per cent increase to the Municipal Revenue Sharing (MRS) grant program. This no-strings-attached funding provides PST-related financial support to cities, towns, and rural municipalities across the province.
"An increase in municipal revenue sharing at a provincial level is definitely welcome," said Regina Mayor Chad Bachynski, acknowledging the positive step forward in addressing municipal needs.
Mayors Express Gratitude Amid Fiscal Challenges
Saskatoon Mayor Cynthia Block echoed Bachynski's sentiment, stating she is "really grateful" for these critical grants. This appreciation comes despite a projected $819.4-million provincial deficit, attributed in part to international conflicts and volatile resource revenues that have impacted the province's financial landscape.
"In many ways, we've come to rely on it," Block said of the MRS program. "Cities right now own 60 per cent of infrastructure on eight per cent of the tax revenue. It's simply an unsustainable model and, increasingly, property tax is a regressive model as we try to build more efficiently."
Call for Additional Support Measures
While both mayors acknowledged that any increase to MRS funding helps municipalities manage rising costs, they agreed that more comprehensive solutions are needed. They specifically mentioned the need for additional no-strings funding or measures to reduce municipal expenses through alternative approaches.
Bachynski had been hoping the government would consider reinstating the provincial sales tax (PST) exemption on construction for municipalities, which was eliminated in 2017. Despite calls from Regina city council in January to lobby for its return through the Saskatchewan Urban Municipalities Association (SUMA), this measure was not included in the current budget.
Municipal Associations Advocate for Change
SUMA president Randy Goulden emphasized the significance of the PST exemption, stating, "It would be significant right across the province. Our municipalities are under a great deal of stress to provide for infrastructure and services. Those costs and concerns continue to rise, and MRS is not keeping up to the increases we're seeing."
The organization has previously called for the PST exemption's return, as have the Saskatchewan NDP and federal officials. Bachynski maintains that this simple but significant change could alleviate the tax pressures that have intensified in recent years.
Property Tax Increases Highlight Financial Strain
The need for additional municipal support is underscored by recent property tax increases in both major cities. Regina implemented a record-high 10.9 per cent mill rate hike this year, following a 7.3 per cent increase in 2025. Saskatoon approved a 6.7 per cent property tax increase, building on their 6.1 per cent hike from the previous year.
These substantial increases reflect the growing financial pressures facing municipalities as they attempt to maintain and expand infrastructure while operating within constrained revenue models. The mayors' comments suggest that while the provincial budget's funding increase represents a step in the right direction, more comprehensive solutions will be necessary to create sustainable municipal financing structures for the future.
