Winnipeg mayor nixes proposed 'massive' increase to water bills

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.

On Monday, at a news conference announcing new federal funding for the North End sewage treatment plant upgrades, Manitoba municipal relations Minister Glen Simard told reporters the province had committed $414 million to the first two phases of the project.

In an email, Simard later said that amount included $120 million in new funding which had not been previously announced.

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.

'Pulled the pin on a grenade'

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.

Niall Harney, a researcher with the Canadian Centre for Policy Alternatives, says the city needs to invest in its sewer infrastructure and waste collection services, but he hopes to see the city implement a rebate for low-income families to lessen the impact of the increases.

The city offers a subsidy program in partnership with the Salvation Army, called the H2O Help to Others Program. The program provided $10,078.71 worth of assistance to 37 accounts in 2023, and $9,857.92 to 36 accounts in 2024.

Harney would like to see the program expand to help more people.

"In our alternative budget, we found that Stats Can data showed that about 5.3 per cent of homeowners in Winnipeg are in core housing need, which is about 10,000 households across the city," he said. 

"We're not saying that every single one of those households would need support ... but we would expect that a few thousand households across the city would need support to deal with this increase."

Winnipeg mayor nixes proposed 'massive' increase to water bills

18 hours ago

Duration 2:16

Winnipeggers can expect a big jump in their sewer and garbage bills this year although not quite as big as what city staff are proposing. Mayor Scott Gillingham says he rejects a set of steep increases to sewer rates.