Winnipeg Nears Deal to Slash $332M Sewage Upgrade Costs

UPDATE: The City of Winnipeg is on the brink of securing a groundbreaking agreement that could drastically cut its costs for the North End sewage treatment plant upgrades by approximately $332 million. This urgent development comes as officials from the province, city, and federal government prepare to share the $1.035 billion price tag for the second phase of this vital mega-project.

During a crucial finance committee meeting held on Tuesday, city officials revealed that if finalized, this cost-sharing plan will see the province contribute $336 million, the federal government $367 million, and Winnipeg itself foot the remaining bill of $332 million for the biosolids facility upgrade. This is a significant shift from the previously expected city expenditure of $637 million, which would have largely relied on borrowing.

“We’re confident that we’re going to receive this additional funding,” stated Tracy Graham, the city’s chief financial officer. “We’ve met all the requirements of the Canada Housing Infrastructure Fund application.” The city had to implement new bylaws allowing more housing units on residential lots to qualify for increased federal funding, a move now successfully in place.

This funding boost is expected to bring relief to Winnipeg’s water and sewer ratepayers, who faced steep rate hikes earlier this year. Jeff Browaty, chair of the council’s finance committee, expressed optimism, stating, “It is good news. The spike we saw in rates earlier this year is not desirable… I expect much flatter rates going forward because of this cost-sharing.”

On April 1, sewer rates increased by $18.67 per month for the typical household, an additional burden of $168.03 for the year. However, with this potential funding agreement, many residents may avoid further increases, a welcomed change for those living on tight budgets.

The anticipated funding plan is not just about reducing costs; it also aims to support low- and moderate-income families. Molly McCracken, provincial chairwoman of Make Poverty History Manitoba, noted the positive impact this could have, stating, “Every little bit helps for people on very tight budgets.” By alleviating pressure on water and sewer rates, the plan could prevent unjustified rent increases, a critical concern for vulnerable populations.

In addition to addressing immediate financial pressures, the agreement could free up resources for additional city projects. Brian Mayes, a city councillor, explained, “There seems to be a lot less pressure under the debt ceiling if we don’t have to borrow that $300 million… hopefully, we can get some other projects across the finish line.”

While this news is promising, Browaty cautions that the city still faces a hefty $1.5 billion in unfunded work related to the North End sewage treatment plant, including a third phase of upgrades. “This is certainly not an opportunity to spend more,” he stated.

As discussions progress, the city aims to finalize the funding agreement soon. A report on proposed sewer rates for 2026 and 2027 is expected next month, which could provide further clarity on the financial landscape for Winnipeg residents.

Stay tuned for more developments on this critical infrastructure project that promises to shape Winnipeg’s future and ease the financial burden on its citizens.