Winnipeg faces skyrocketing costs at treatment plant

 Upgrades to Winnipeg's south end water pollution control centre are estimated to cost nearly $63 million more than what the City of Winnipeg's water and waste department originally expected, making the total cost for the upgrades an estimated $336 million. 

Councillors on the city's finance committee heard Thursday morning about the whopping cost increase.

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Diane Sacher, manager of the city's water and waste department said the majority of the cost increase is due to changes in the provincial licence.

She said it's too early to say what that estimate overrun will do to rates for next year, and the province has to change the parameters of the licence for the proposed plant and that will have an impact on the cost of design and construction.

According to the city's application for the plant's licence, the plant will open in Oct. 2016. However, the province's licence said the plant could open as early as Dec. 2015. 

The two levels of government have yet to work out a date, and the city's water and waste department estimates upgrades to the plant won't be complete until later than Oct. 2016.

Increased 'estimates' no good for city budget 

City councillor and chair of the city's finance committee Marty Morantz pointed out the changes are "estimates," which means the figures could go up or down.

Meanwhile, Mayor Brian Bowman is already struggling to balance the city's books.

"You know it's going to be a very, very difficult budget to do. So the extra costs on that and anything else is something we watch very carefully," he said.

Like Sacher, Bowman blames new provincial regulations for the increases because the city will have to spend more money to meet new regulations.

He said cities have to carve out a "fair deal" from other levels of government to get more tax revenue. He added the city can't rely on property taxes and fees to pay for major improvements ordered by the province.