Winnipeg water, sewer rate hikes on horizon — but not as bad as originally feared

Water and sewer rates are set to rise again to help pay for a massive upgrade to a Winnipeg sewage treatment facility.

If city council approves, the annual bill for a sample household of four would rise by $44 in 2026 and another $68 the following year, raising the total bill from $1,580 this year to $1,692 in 2027.

The increases won’t drain Winnipeggers’ bank accounts as much as originally feared — but the reduced rate hikes bank on nearly a billion dollars of additional senior government funding.

“(This) replaces the steep rate hikes that were once projected with small, steady increases that keep life affordable for Winnipeggers,” said Mayor Scott Gillingham.

The city said rate hikes are needed to fund a massive $3.092-billion upgrade of the North End sewage treatment plant, which will increase its capacity and greatly reduce the amount of pollution it produces.

“(This) replaces the steep rate hikes that were once projected with small, steady increases that keep life affordable for Winnipeggers.”

In March, the city suggested the rates could rise by $436 (28.5 per cent) in 2026 and $340 (17.3 per cent) in 2027 for a sample household of four, which city council rejected. The new proposal would raise bills by 2.8 per cent in 2026 and 4.2 per cent in 2027.

The latest hike comes after annual utility rates rose steadily in recent years, increasing by $33 in 2020, $35 in 2021, $34 in 2022, $34 in 2023 and $48 in 2024.

A sharper sewer rate hike of $168.03 was added on April 1.

This time around, Gillingham said the city will spread sewage upgrade payments over at least 50 years to avoid the steeper annual rate hikes proposed in March. The city would take on $468 million in long-term debt, plus $79 million for financing costs to pay its share for the upgrade.

The new rates are also based on the provincial and federal governments providing a combined $994 million for the third and final phase of the Main Street sewage treatment plant upgrade.

“We know how important this project is to the people of Manitoba, and we are committed to making sure Phase 3 is completed.”

The senior governments have not formally committed to providing that funding but the mayor is confident they will.

“We strongly believe, based on our conversations, on the commitments that have been made, that we will secure cost-sharing on the third phase (of the upgrade). Today, we had to bring forward water and sewer rates. The responsible thing to do, in my mind, is to bring forward rates that reflect the cost-sharing arrangement and, thereby, also reflect a measure of affordability for ratepayers,” said Gillingham.

City finance officials recently revealed they were finalizing a deal that will see the federal, provincial and municipal governments pay roughly one-third each of the cost for Phase 2 of the upgrade as well.

The mayor noted the Manitoba government’s economic development strategy includes a commitment to get the sewage treatment upgrade built.

In an email, a spokesman for Municipal Relations Minister Glen Simard expressed support for the upgrade but did not confirm exact funding.

“We know how important this project is to the people of Manitoba, and we are committed to making sure Phase 3 is completed,” the statement said.

“I’m concerned for those (who) are on fixed budgets, whether it’s low-income (people) or seniors … You may think you’re getting a better deal (with reduced sewer rate hikes) but it’s still an increase.”

However, a city councillor fears the city is basing the proposed rates on a “guesstimate” of future funding.

“Of course, it’s going to cost us less if other levels of government give us a billion dollars but there’s no evidence that’s coming,” said Coun. Brian Mayes (St. Vital), a former chairman and current member of the water and waste committee.

If the funding isn’t provided, sewer rates will surge to the amounts proposed in March, said Lisa Marquardson, a water and waste spokeswoman, in an email.

The most recent sewer rate hike was part of a trio of substantial fee increases Winnipeggers faced this year. The city’s annual per-home garbage fee rose to $254 (prorated to $190.50) from $93, on April 1. Property taxes rose 5.95 per cent, its largest annual increase since the 1990s, which will cost the owners of a sample single-family home $121 more.

One ratepayer fears many residents will struggle to pay all of the costs.

“I’m concerned for those (who) are on fixed budgets, whether it’s low-income (people) or seniors … You may think you’re getting a better deal (with reduced sewer rate hikes) but it’s still an increase,” said Terry Cooper.

A program that aims to help low-income residents pay utility bills is being expanded to help offset the financial strain, said Coun. Ross Eadie, chairman of water and waste.

The H2O Help to Others Program previously provided a one-time utility bill credit to low-income people. If council approves, the program would allow people to apply for the credit every two years instead of just once. It would allow all people who receive employment and income assistance to apply for the credit, not just those who are at risk of having their water disconnected.

“It’s being enhanced quite a bit,” said Eadie.

Earlier this year, the city increased the maximum credits that program provides to $280 per one-person household, up from the previous $155, and to $580 per household of five or more, up from $400.

The first of the two new sewer rate hikes would take effect Jan. 1, 2026.

joyanne.pursaga@freepress.mb.ca

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