Summary#

Calgary’s Executive Committee carried a recommendation to Council on the Water Utility’s 2027–2030 rates and service plan. If Council approves it, the City would set the financial direction for the budget process: proposed annual rate increases, full cost recovery from each customer group, and more analysis of possible rate structures. City staff say the goal is to fund water-system investment and maintain reliable service; Council’s decision is still the next step.

• The recommended annual rate increases are 19.9% for drinking water, 15.2% for wastewater and 5.8% for stormwater, for each year from 2027 through 2030.
• Each customer group would pay the full cost of the drinking water, wastewater and stormwater services it receives.
• The proposed rate structure would stay as it is for 2027–2030. City staff would report back in the 2028 Mid-Cycle Adjustments process with analysis and options, including conservation-based rates.
• City staff are directed to prepare budgets and update the necessary bylaws with rates and charges for Council to consider through the 2027–2030 budget process.
• The committee’s motion carried 8 to 2. Councillors Wyness and Ward voted against it.

What it means for you#

• Water Utility customers: If Council later approves the rates and bylaws, bills would rise. For a sample metered residential customer, the report estimates a monthly bill of $119.21 in 2026, increasing by $14.50 in 2027, $20.05 in 2028, $24.48 in 2029 and $28.70 in 2030. Actual bill changes vary by customer group.
• Customers who use more or less water: The current rate structure would remain in place for these years. The bill does not itself introduce conservation-based rates.
• Taxpayers: City staff say the Water Utility is funded through rates and levies, not property taxes. The recommendation does not itself set final rates or charges; Council must consider the budgets and bylaw changes.
• Water-system users: The plan includes investment in infrastructure renewal, added capacity, water-loss reduction, wastewater treatment and stormwater systems. These are planned investments, not guaranteed results.

Money#

The report estimates $6.5 billion in capital investment and says additional operating funding of $59.4 million and 343 positions are needed.

• The report says the utility is funded through rates and levies, rather than property taxes.
• The sample residential bill is projected to rise from $119.21 per month in 2026 to $206.94 in 2030.
• Final budgets, rates and charges would be brought to Council through the 2027–2030 budget process. The committee recommendation does not approve those final amounts.

What is unclear#

• Council’s decision on the recommendation, and the final rates and charges, are not in the supplied material.
• The report does not give projected bill amounts for every customer or explain in detail how full cost recovery would change each group’s share.
• Direct engagement about rate increases and bill impacts was not undertaken, according to the report.
• Regional customer rates are still under discussion; the report says a separate study is being used to support full cost recovery.

Case for#

• City staff say the water systems need major investment to address aging infrastructure, limited capacity, growth and risks such as flooding and service disruption.
• Staff say the $6.5 billion capital plan would fund infrastructure renewal, capacity expansion, water-loss reduction and emergency readiness.
• Staff say full cost recovery would align what each customer group pays with the cost of services it receives, rather than relying on property taxes.
• Staff warn that delaying or reducing investment could increase service disruptions, emergency repairs and long-term costs.

Case against#

• The proposed increases would raise bills substantially. For the sample residential customer, the report projects a rise of $87.73 per month by 2030 compared with 2026.
• The recommendation keeps the current rate structure through 2030, while asking staff to study conservation-based options later. A possible trade-off is delaying changes that might better reward lower water use.
• The report says the increases will affect customers financially, but direct engagement on rates and bill impacts was not undertaken.
• Councillors Wyness and Ward voted against the committee motion; the supplied minutes do not state their reasons.