City considers using sewer revenue to pay for garbage pickup

Hey there, time traveller!
This article was published 15/02/2024 (569 days ago), so information in it may no longer be current.

The City of Winnipeg could divert millions from sewer and water revenue this year to help pay for garbage collection, despite needing billions for long-awaited sewage system upgrades.

This year, roughly $24 million in annual garbage collection costs, which are normally covered by property tax revenue, will be covered by solid waste utility fees, pending approval of the 2024 to 2027 budget, said Coun. Jeff Browaty, council’s finance chairman.

Any deficit that those solid waste fees can’t cover will be offset by other water and waste utility fees, likely coming mostly from sewer and water rates, said Browaty (North Kildonan).

“A part of the garbage program was still paid for by the tax-supported budget… There was a substantial chunk that was still being paid for by your property taxes. What we’ve done now is there’s no longer tax support going into solid waste,” he said.

Browaty did not specify the exact amount that could be covered through water and sewer revenue. The change would come in addition to a water and sewer dividend the city transfers to general revenue each year, which is proposed to reach $39.6 million in 2024.

An environmental scientist, who is also executive director of the Lake Winnipeg Foundation, said the proposal disappointing, especially amid a substantial rate hike that was largely earmarked to fund major sewage system upgrades.

“To further deplete what we have available to improve our wastewater system seems irresponsible… This (cost) is a significant concern for people. (So) to then say that those (revenues) aren’t actually going to be devoted to upgrades to the north end sewage treatment plant, as they have been presented, is incredibly concerning,” said Alexis Kanu.

======

The city has linked its next set of water and sewer rate hikes to the $2.336-billion north end sewage treatment plant upgrade and an up-to $2.3-billion plan to reduce combined sewer overflows, both of which would reduce the amount of algae-promoting pollution that enters waterways from city sewage plants.

In January, council approved a rate hike that will see the annual bill for the average family of four jump to $1,540 in 2027 from $1,260 in 2023.

Glen Koroluk, executive director of the Manitoba Eco-Network, said the rate hike itself is concerning because he fears lower-income households can’t afford it. In January, he urged city council to freeze water rates and have the Public Utilities Board review them.

Koroluk said it’s clear the city has a lack of resources but instead of shifting funding for other projects, it should just boost property taxes even higher.

“It is a bit hypocritical that, on one hand, they’re complaining about not (having) enough money to fix the (sewage) problem. But, on the other hand, they’re raising the rates, increasing the profits and using the money for other things,” said Koroluk.

Brian Mayes, chairman of water and waste, said the funding plan is a major change that sparked debate among councillors.

Mayes said he can support the idea as a short-term measure to balance the budget, but acknowledged “we are going to need a lot of money for the major water and waste projects.”

While the measure is currently expected to last until the end of 2027, Browaty noted the budget also calls for a review of solid waste utility rates, which is due back in about eight months and could alter the plan in future years.

“This was recognized as being a temporary solution,” he said.

Browaty said the city has reserve funds it can tap into to help fund sewage system upgrades.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga