City of Winnipeg recommends massive sewer rate increases

Mayor Scott Gillingham is saying no to sewer rate hikes on the table at city hall. CTV’s Jeff Keele has the latest.

The City of Winnipeg’s public service is recommending massive sewer rate increases, but Mayor Scott Gillingham is rejecting the plan.

A news release says the hikes would cost a typical family of four an extra $1,000 annually by 2027.

The rates are based on no more financial help from other levels of government to complete the $3 billion north sewage treatment plant.

The third and final phase is estimated at $1.5 billion.

But Gillingham says he does not accept the recommended increases, saying it could “crush” homeowners financially.

Instead, he will be proposing a hike of $18.67 per month starting April 1, to the end of the year.

Gillingham says this allows the project to continue while he talks to the province and Ottawa about funding options for phase three.

As CTV News reported Monday, the mayor is asking the federal government about a long-term low-interest loan from Canada’s infrastructure bank to keep future rate hikes affordable.

Gillingham also said he is instructing the city’s new chief construction officer to review the project to see if cost savings can be found.

The upgrades are needed as the city is running out of sewage capacity and to reduce the amount of nutrients spilling into Lake Winnipeg, which causes algae blooms.

The original estimate for all three phases of the project was $795 million.