Winnipeg’s mayor says he’s rejecting a proposed sewer rate increase, calling it too high for city residents and businesses.
Scott Gillingham, alongside the city’s water and waste committee chair, Coun. Ross Eadie, said Tuesday that the increase would raise rates by $1,000 for the average home over the next three years, as the city tries to generate funds to complete the North End sewage plant upgrades.
That project was given an infusion of cash from the federal government — to the tune of more than $150 million — as announced Monday, but more funding is required for the final phase, estimated to cost close to $1.5 billion.
Gillingham and Eadie are instead proposing a one-time rate increase, the equivalent of $18.67 a month for the average household, with alternative financing options and savings to be found elsewhere.
“This proposal asks Winnipeggers to pay cash for a multi-billion-dollar sewage treatment plant that will serve the city for the next century,” the mayor said.
“It’s like paying cash for a new house you expect to live in for the rest of your life. We need a better approach, one that gets this project done while protecting affordability.”
The city said the upgrades to the plant — now known as the North End Water Pollution Control Centre — are the most expensive capital project in Winnipeg’s history, with a total price tag of $3 billion, but it’s required under the city’s provincial environmental licence. It’s also a necessity as the city continues to grow.
Eadie said burdening taxpayers with a massive rate hike isn’t a solution, as it doesn’t account for residents’ ability to actually pay a big increase.
“We need to stop the clock and find another way to finance this project,” he said.
“For most major projects, we spread out costs over time; surely we should do the same for a multi-billion-dollar, intergenerational facility.”
The original proposal goes before council’s standing policy committee on water, waste and environment next Monday.
