Recently, the Kinew Government made an announcement in response to media coverage about financial shortfalls for the North End Treatment Facility. “This is one of the largest infrastructure projects in generations,” said Premier Wab Kinew. “In order to build more homes and grow our economy, our government is stepping up to help get this done. We owe it to future generations of Manitobans, not only for our economy but to protect Lake Winnipeg.”
However, facts matter. The fact is that this is not new funding. Kinew’s announcement merely repurposes $30 million from existing provincial funding already allocated to the City of Winnipeg. In essence, the city is being instructed to redirect money it already receives toward the North End Treatment Facility. Despite the grandiose framing, no additional funds have been committed.
Why the press release and the fanfare? This follows a troubling trend of announcements devoid of substantive action. It appears that Kinew is still campaigning rather than governing. Unfortunately, this pattern extends beyond the provincial level. At Winnipeg City Hall, the same style of political spin persists.
Mayor Scott Gillingham quickly responded with predictable rhetoric, thanking the premier while pointing out that the city would require hundreds of millions more from other levels of government to complete the necessary upgrades. Yet his words raise more questions than answers. Where are the real numbers? What is the actual financial plan?
In January 2024, Mayor Gillingham implemented increased water rates and projected $279 million in contributions from other levels of government for the North End Treatment Facility. But let’s examine the numbers. The $30 million announced by Kinew is not new funding. The federal government has yet to commit any funding to the project. This leaves the city’s revenue projection short by a staggering $249 million. How can this gap be justified?
Even if the federal government matches the $30 million, as is customary, Gillingham’s financial strategy falls drastically short of the $279 million target. This disconnect underscores a broader issue: a reliance on external funding to mask systemic financial mismanagement.
The North End Treatment Facility is not a new issue. Decades ago, the Clean Environment Commission recommended that the NDP government upgrade it. At the time, the projected cost was approximately $400 million, yet no action was taken, and the NDP government ignored the advice of experts. Today, the estimated cost exceeds $2.5 billion, a direct consequence of decades of neglect and poor financial stewardship.
Responsibility does not rest solely with the province. The City of Winnipeg has repeatedly deferred action, choosing instead to blame other levels of government. Mayor Gillingham, who has been in public office for over a decade, bears significant responsibility. As Finance Chair under former Mayor Brian Bowman, Gillingham oversaw years of financial practices that prioritized short-term solutions and finger-pointing to other levels of government over long-term infrastructure planning.
One glaring example is the continued diversion of approximately $40 million annually from water and waste to general revenues. Over a decade, this could amount to $400 million over the years—funds that could have been used for essential upgrades to the North End Treatment Facility. Instead, these resources were used to offset increased spending by elected officials, leaving the city ill-prepared for its growing infrastructure needs.
The dramatic cost escalation of the North End Treatment Facility raises pressing questions about financial oversight and accountability. How did costs balloon from $553 million to over $2.5 billion in such a short period of time? What mechanisms were in place to control expenses? Why should taxpayers, already burdened with rising water rates, bear the brunt of such gross mismanagement?
Adding to the confusion, rookie Councillor Evan Duncan recently suggested during a radio interview that a potentially massive increase in water rates if additional funding is not secured from higher levels of government. Such comments exemplify a broader culture of blame-shifting and fearmongering. Instead of investigating the root causes of escalating costs or exploring alternative solutions, city leaders default to higher rates and external funding demands.
However, this administration will not tell you the new rates until they release a new budget that will likely have increases in many other areas. They will pretend that the water rates were not included in the budget. Then, they will hit us with a water and sewer increase in the new year. The thought is that you won’t be as upset if it all comes at once.
The private sector offers valuable lessons in strategic planning and proactive maintenance. Neglecting essential upkeep leads to higher costs and operational disruptions. Yet the City of Winnipeg consistently delays addressing critical issues until they reach crisis levels. This reactive approach reflects a lack of foresight and accountability.
Winnipeg and Manitoba now face a critical juncture. Addressing these challenges will require true leadership, a commitment to fiscal responsibility, and innovative approaches, potentially including public-private partnerships for the facility's construction.
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