Winnipeg mayor nixes proposed 'massive' increase to water bills

CBC

04-03-2025

Tapping into Winnipeggers' wallets by increasing water and sewer rates by $1,000 per year is just not going to happen, says Mayor Scott Gillingham, who calls a proposed hike "simply not reasonable."
City administrators proposed the hefty increase to fund Phase 3 of the North End Sewage Treatment Plant upgrades — an estimated $1.5-billion expense.
Gillingham revealed the recommended increase at a news conference on Tuesday, saying administration drafted its proposal based on city's existing debt-management policy.
The proposal includes large increases each year, reaching $1,000 more on a typical household bill by 2027, in order to pay for the project up front and in full, Gillingham said.
"Let me be clear, I cannot and do not support this proposal," he said, standing alongside Coun. Ross Eadie, chair of the city's standing police committee on water, waste and environment.
Instead of the rate hikes, Gillingham is proposing a single rate increase for 2025 that would add $18.67 per month to the average household bill for the remainder of the year ($168 total) "to keep Project 3 moving forward" while he works to "find a reasonable, affordable and sustainable way" to fund it.
All options will be examined before the 2026 and 2027 sewer and water rates are set, Eadie said.
Currently, the annual bill for an average household is $1,308, Gillingham said. Under the administration proposal, that bill would go to $1,532 in 2025, $1,968 in 2026 and $2,308 in 2027.
In order to avoid that, the city will meet with the federal and provincial governments to find financing options that could amortize the project's cost "over many, many years," Gillingham said.
"This could dramatically reduce the impact of rate hikes, spread the cost fairly over multiple years and still fully fund the project," he said.
Gillingham has already started discussions with premier's office, federal officials and the Canada Infrastructure Bank. He has also worked with the city's chief financial officer to create the funding model he is recommending for this year.
Now more time is required to see if the discussions can lead to better solutions, he said.
The city's new chief construction officer will also review the $1.5-billion cost to identify potential savings.
"The north end plant is Winnipeg's largest, most complicated, most expensive project in history. For us, right now, this is the most important project. We need the additional capacity so we can add jobs and homes to the city," Gillingham said.
A little over a month ago, city council approved the largest property tax hike in decades, and as it faces rising costs for major capital projects, including the $3-billion sewage treatment plant overhaul.
The project was mandated by the provincial government in 2003 but successive city, provincial and federal governments failed to move it forward quickly enough to contain costs, Gillingham said.
"It's like they pulled the pin on a grenade and finally, this year, it lands on our laps. And we, as a council, have to deal with it. We can't avoid it anymore."
The water, waste and environment committee will consider the administration proposal on March 10. Eadie will introduce a motion to amend it with the recommendations outlined by Gillingham to borrow the money.
The expansion of the treatment plant will enable thousands of additional homes built and serviced, which means thousands more customers paying water and sewer bills, helping to cover the amortized debt, Eadie said.
"Future growth is going to pay for it. It will," he said.
Phase 3 is anticipated to be finished by 2030, Eadie said.