City lobbied to freeze water, sewer rates

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This article was published 26/01/2024 (591 days ago), so information in it may no longer be current.

An anti-poverty advocate is lobbying the City of Winnipeg to freeze water and sewer rates, arguing the fees are a daunting burden for low-income earners.

On Thursday, city council approved a proposal to hike those rates, with the first increase to take effect this spring. As a result, a family of four using 50 cubic metres of water per quarter can expect their annual bill to jump to $1,540 in 2027 from $1,260 in 2023.

The first hike would increase that bill to $1,308 on April 1, 2024.

some advocates plan to push the city to reverse that decision during its upcoming budget process. Prior to the vote, one delegate asked council to freeze the rates for the next four years and find other ways to support the utility.

“The plan for increasing water rates will be onerous on low-income households,” said Josh Brandon, a community animator with the Social Planning Council of Winnipeg, during an interview on Friday.

“The plan for increasing water rates will be onerous on low-income households.”–Josh Brandon

Brandon said some households pay as much as 10 per cent of their income on these utility bills, creating an “unaffordable burden.”

He urged council to stop transferring a dividend from water and waste revenue into general city coffers, which is expected to reach $39.6 million in 2024, $42.5 million in 2025, $45.2 million in 2026 and $48.2 million in 2027, to free up money to pay for water and waste services.

He also argued property tax revenue would be better used to fund the utility.

“It is a more equitable way to divide it. If you’re a low-income household, you’re paying the same rate for water as many of your wealthier neighbours. At least the property tax system has an equity element. If you own a larger property, you’re paying more,” he said.

Brandon said the city should consider “tiered” water rates, which could base individual bills on income level or a home’s value.

Coun. Brian Mayes, the head of council’s water and waste committee, said he is open to exploring ways to help make water and sewer payments more affordable for low-income Winnipeggers.

However, he said the municipal government can’t afford a general four-year rate freeze.

“We’d all like to freeze tax rates and water rates, sure, but we have some pretty important environmental initiatives we’re trying to do on the wastewater side. I think we may have to go (even) higher on the rates to pay for those, depending on how much help we get from the province,” said Mayes.

The city is required to complete a $2.336-billion upgrade to the north end sewage treatment plant and an up-to $2.3-billion project to reduce combined sewer overflows. Both mega projects are designed to reduce the amount of algae-promoting pollution that enters waterways from city sewage plants.

Mayes said eliminating the water and sewer dividend may sound logical to keep more money reserved for key infrastructure projects but it would also create a gaping hole in the city’s overall budget.

“(That would be equivalent to) a 9.5 per cent property tax increase across the board and I don’t sense a lot of support for that,” he said.

During Thursday’s council meeting, Coun. Matt Allard raised a motion that calls for a city report on options to help low-income residents cope with “extremely high” water bills.

“If one person has a high water bill… and it’s creating financial hardships. If they’re not able to pay, if it’s the first time, there’s got to be a way to be compassionate,” said Allard.

Coun. Ross Eadie said he has heard from residents in the past whose water bills reached several thousands of dollars. Since unpaid water bills can be added to property taxes and the city can take action to seize homes when property taxes aren’t paid for more than two years, that raises the risk a home could be seized over the issue, said Eadie.

Allard said those concerns inspired his motion, which will be considered by council’s water and waste committee next month.

A city spokesperson noted the city has programs to support low-income clients struggling to pay water bills. A City of Winnipeg/Salvation Army program called H2O Help to Others can help cover the cost for low-income residents, while a water leak credit policy provides financial assistance to those facing abnormally high water bills.

The spokesperson noted an upcoming switch to smart water meters is expected to detect leaks early and help prevent large bills. That project would require funding in the 2024 to 2027 budget.

The preliminary four-year budget will be released on Feb. 7.

joyanne.pursaga@freepress.mb.ca

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