City’s alternative strategy keeps water and sewer rates affordable for Winnipeggers

Released: October 28, 2025 at 11:21 a.m.
increases reflect Council direction to revisit significantly higher rates projected for 2026, 2027

Winnipeg’s largest infrastructure project will move forward without the steep rate hikes once anticipated. Through a new long-term financial plan and cost-sharing with other levels of government, the City of Winnipeg will keep water and sewer rates affordable while advancing construction of a new, state-of-the-art wastewater treatment facility at the North End Water Pollution Control Centre (NEWPCC).

The City’s latest water and sewer rate report shows that while earlier forecasts — rejected by Council in March — projected sharp combined utility bill increases of 28.5% in 2026 and 17.3% in 2027, the new plan limits the average household’s increase to just 2.8% in 2026 and 4.2% in 2027.

“These are responsible and affordable increases that incorporate new funding from other levels of government and a better strategy to finance the City’s share of the project,” said Councillor Ross Eadie, Chair of the Standing Policy Committee on Water, Waste and Environment. “This new facility is critical to protecting our rivers and Lake Winnipeg, and with strong support from the federal and provincial governments, we can move forward without placing a heavy burden on ratepayers.”

The NEWPCC redevelopment is one of the largest and most complex wastewater treatment projects in Canada, with total costs exceeding $3 billion across three phases. Thanks to significant contributions from the Government of Canada and the Province of Manitoba confirmed this year for Phase 2, and advanced negotiations for federal and provincial support for Phase 3, the City can finance its share over several decades rather than through sharp, short-term rate increases.

Mayor Scott Gillingham said the plan reflects the City’s responsible, long-term approach to funding major infrastructure.

“This is a multi-generational project that will serve Winnipeg for the next hundred years,” said Gillingham. “By spreading the City’s share over time and securing strong partnerships with other levels of government, we’re protecting both the environment and the affordability of water and sewer rates for Winnipeg families. I thank the Province of Manitoba and Government of Canada for their collaboration on this project, and I look forward to completing negotiations around the final phase of funding.”

The City’s plan includes issuing 50-year debt for its portion of the Nutrient Removal project, while freezing the annual dividend paid by the Water and Sewer Utility to the City’s General Revenue Fund at existing levels in 2026 and 2027. Together, these steps ensure stable, sustainable funding while keeping water and sewer rates among the most affordable in Canada.

For a typical household of four, the average water and sewer bill will rise by about $44 next year and $68 in 2027 — saving homeowners more than $600 per year compared to the previously forecasted increases.

Winnipeg’s combined water and sewer rates remain roughly middle of the pack compared to other major Prairie cities, while Winnipeg’s property taxes continue to be the lowest in the country.

“Winnipeggers expect us to plan ahead and keep essential services affordable,” said Gillingham. “This plan achieves both.”

The rate changes would take effect January 1, 2026, pending Council approval.

NOTE: Mayor Gillingham and Councillor Eadie will have a media availability at 1:30 pm in the media room at City Hall (downstairs).

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