Proposed increase to water and sewer rates required to fund wastewater treatment upgrades
Released: 4:01 a.m.
NEWS @ A GLANCE:
Winnipeg’s Water and Waste Department today recommended a four cent increase in the water rate and a five cent increase in the sewer rate, effective January 1, 2010.
(for more details, please read the full media release below) |
WINNIPEG, November 6, 2009 – Winnipeg’s Water and Waste Department today recommended a four cent increase in the water rate and a five cent increase in the sewer rate, effective January 1, 2010.
The recommendations contained in the report submitted to the Standing Policy Committee on Infrastructure Renewal and Public Works indicate that, under these new rates, a typical residential customer would pay $816.60 per year, an increase of $21.22, or 2.7% over 2009.
Subject to a number of assumptions, the report projects that, over the next 10 years, water rates will need to increase by 12%, and sewer rates by 32%, to fund :
- major capital improvements to the wastewater system, as required by the Province of Manitoba; and,
- increasing costs in the water delivery system, particularly for treatment chemicals and infrastructure renewal.
The environmental licences issued by the Province require that phosphorus, ammonia, and nitrogen to be removed at the City's three wastewater plants. The City maintains that, in keeping with the best scientific advice it has received, phosphorus removal is key to improving conditions in Lake Winnipeg, where the treated water flows, but nitrogen removal is not beneficial.
Nitrogen removal will require upgrades over the next 10 years, including $350 million in capital costs, $194 million in debt financing costs, and $9 million in additional annual operating costs.
For 2010, the recommended rate increases are, for water rates:
- to $1.29 from $1.25 per cubic metre from 0-272 cubic metres/quarter (Block 1)
- to $1.12 from $1.08 per cubic metre from 272.1-2,720 cubic metres/quarter (Block 2)
- to $0.95 from $0.91 per cubic metre over 2,720 cubic metres/quarter (Block 3)
The recommended rate increase for the sewer rate is:
- to $1.91 from $1.86 per cubic metre, based on water used – which includes 18
cents per cubic metre for the Environmental Projects Reserve.
The report on 2010 water and sewer utility rates has been submitted to the Standing Policy Committee for consideration at its meeting on Tuesday, November 10. Persons who want to appear at committee should contact the committee clerk, Ms. Josie Marques at 204-986-4228. The report requires the approval of the Executive Policy Committee before being submitted to City Council for final consideration.
A copy of the report has been posted at http://www.winnipeg.ca/CLKDMIS/
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