Winnipeg could see 9% water rate hike to help cover rising costs in other areas

Winnipeggers may soon see larger water bills, but the money the city collects won't be going just to upgrade and maintain the city's water and sewage systems. 

The city water and waste committee is set to discuss a proposed 9.2 per cent increase for water and sewer rates.

For a residential customer with a family of four, that will mean a $23 increase on their quarterly bill.

The report also recommends rate increases of 8.9 per cent and 7.4 per cent over the following two years.

A large portion of sewer and water increases are earmarked for more than $2 billion in upgrades to the city's sewage treatment plants, the report says.

But sewer and water rate increases aren't all dedicated to upgrading and maintaining Winnipeg's sewer and water system.

$32M put in general reserve

The city would take about $32 million of the revenue in the coming year and put it into a general reserve fund.

Coun. Bryan Mayes, who chairs the water and waste committee, said he will likely support the rate hike.

He said he doesn't have a problem with the fact the city uses sewer and water charges for other items.

"Ideally, no, you wouldn't do it, but then we would have to go to people for more property taxes, so I am OK with taking the dividend," Mayes said. "I think other jurisdictions do."

Coun. Marty Morantz, chair of the city's finance committee, said Thursday that water and sewer fees are helping the city fix the roads.

"The fact that the water utility is in the position to assist the city in accomplishing that goal is something I think all citizens are and will be happy about," Morantz said.

The work was ordered by the province of Manitoba to reduce pollution going into the rivers and Lake Winnipeg.

Morantz said the province isn't paying its fair share of the cost of the new infrastructure, despite ordering the city to do the upgrades.

The news comes one day after the City of Winnipeg's 2016 budget was tabled, calling for a 2.33 per cent property tax increase and increases to frontage levy fees.

The water rate hikes will be discussed at a special meeting on Friday.

The hike and the 2016 budget will go to a final council vote on March 22.