War of words breaks out between province, city, over where to spend funds from water rate hike

Minister of Conservation and Water Stewardship Thomas Nevakshonoff is lashing out at the City of Winnipeg for hiking water rates and spending the extra cash on street renewal rather than sewer and water treatment upgrades.

On Friday the city'swater and waste committee is set to discuss a proposed 9.2 per cent increase for water and sewer rates, that amounts to a$23 increase to thequarterly water bill of a family of four.

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

But at the same time, the proposed budget states$32 million in dividendswill be taken from water bill revenue and moved into general revenue.

The proposed rate hike, along with the 2016 budget, will go to a council vote March 22.

But Nevakshonoff saidthe province would like to see Winnipeg divert any funds generated by water fees invested in upgrading the city's North End Water Pollution Control Centre, which he calls one of the worst water treatment plants in Canada.

"They're quite shamelessly taking that money and putting it toward streets instead, whereas Manitobans continue to wait for this upgrade." said Nevakshonoff on Thursday. The Interlake MLAblames the Winnipeg water treatment plant for ongoing water quality problems in Lake Winnipeg.

"I'm not interested in getting into a war of words with the province," said Coun. Brian Mayes, chair of the water, waste and environment committee.

Mayes said the city has committed hundreds of millions more than the province to upgrade the North End facility.

"I don't think the province should be lecturing us on fiscal responsibility ... We're balancing our budget," Mayes said. "We are using a dividend as we have done for several years," Mayes said.

The province has so far committed $337 million for the North End facility and the city $651 million.

• 185M litres of raw sewage dumped into Winnipeg rivers since 2004

Nevakshonoff would like to see Winnipeg refer the planned rate hike to the Public Utilities Board to provide "good, professional analysis" on whether taking a dividend payment from water revenue is appropriate.

Mayes said Nevakshonoff's comments come out of the blue.

"I don't know why the minister is making these sorts of statements, I've not met with this minister," said Mayes.