All 14 of the Pembina Valley Water Co-op's (PVWC) member municipalities are coughing up some extra cash in order to get going on an aggressive capital infrastructure program. Co-op officials have long said that water rates alone can’t support the millions of dollars of work that needs to happen at PVWC facilities in the next few years in order to ensure a reliable and sustainable water system for the region.
Recently, the member municipalities unanimously agreed to provide a total of $15 million dollars to PVWC over the next 10 years, with larger users paying more than smaller users.
"This is something that we all didn't really want to get it into, but all see that we need to be committed as owners of the Pembina Valley Water Co-op to make sure it succeeds and that we have the water for future growth in our area," said Pete Froese, PVWC Co-chair and Deputy Reeve for the R.M. of Stanley. "This investment from our municipal ownership is an incredible boost to our ability to not only expand its capacity and to increase its supply, but also to build more resilience into the system and enhance our water security."
"We were basically out of water," added Don Wiebe, fellow PVWC Co-chair and Reeve for the Municipality of Rhineland. "When you want a supply of water that you can depend on, you need a fair bit of redundancy and we were getting so close to being tapped out that any kind of industry coming forward or large housing development, we're just about coming to a standstill. We had to make some big moves, and we have to make them in a timely fashion."
“What this funding commitment means is that PVWC can now go ahead with its capital plans to provide the water to the communities that we serve," said Dale Toews, PVWC CEO, in a statement. "We know that we will need to do some work on our raw water storage/supply to provide more drought proofing and pre-treatment. We have some treatment plant upgrades that will be required as well and, as we are able to produce more water, we have additional pipelines and booster stations, and reservoir expansions required so we can distribute and balance the flows across our 314km distribution network. This commitment from our member municipalities gives us the wind in our sales to move ahead on this work.”
First on the to-do list as a much-needed expansion at the Letellier water treatment plant. "That is going to be significant for us," added Toews.
"I am just very appreciative," added Wiebe. "I think we will work so hard at this. I think all fourteen municipalities realized that we've got to have water - water is so essential and to have a secure supply, one that we can depend on and plan on. Going forward, we will certainly be more intricately involved with municipalities as they plan their water consumption so that we can make some adjustments as we go along. It's a really good beginning of a new chapter, I'm thinking, kind of reinventing ourselves after the initial one that was done about thirty-two years ago."
Despite this large funding injection, Wiebe says more help is still needed, noting additional help will be needed from the Province of Manitoba and Government of Canada in order to fully tackle the project list.
"Those conversations with higher levels of government are actively taking place and we feel we have an ear with the Province. They have told us they recognize the importance of southern Manitoba and the PVWC when it comes to the economic success of Manitoba. We need the Province to step up as a partner in this with us. Southern Manitoba has significant momentum and growth which needs to continue.”
The Municipality of Rhineland will invest over $2.3 million over the 10-year period. At this point, the Council has not decided how this investment will be funded and is consulting with the other water distributors in the Municipality to determine the fairest way to generate the revenue needed to pay for this large cash injection. "In any case, taxpayers and water users in Rhineland can expect that both taxation and water rates will increase in 2025 and 2026 to fund this investment in the Pembina Valley Water Co-op," added Wiebe.
"As a significant consumer of Pembina Valley Water Co-op services, Town of Altona Council recognizes that the contribution requests presented by PVWC are fair and comparable to those of other municipalities," added Altona Mayor Harv Schroeder. "Conducting a Utility Rate Study would allow us to determine if an increase in utility rates for the residents of Altona is necessary, and if so, by how much. Given that Altona’s Utility Capital Budget is projected to be relatively modest over the next few years and our reserve funds remain healthy, we have decided to defer any decisions regarding a potential Utility Rate Study until the completion of the Utility Fund Year-End at the end of 2024. Council has requested that Administration analyze and recommend the most appropriate course of action, and we anticipate having more concrete details at the year's end. We value the essential services that PVWC provides to Altona and look forward to their planned expansions and improvements."
“Our municipal ownership has made it clear – we need to ensure we have the water for our communities now and into the future," said Cor Lodder, PVWC Board Member and RM of Dufferin Reeve, in a news release.
Brent Owen, Mayor for Carman added, "We are proud to be part of this cooperative effort to invest in our regional water system. By working together, we can ensure that our communities have access to clean and reliable water for years to come."
Carman will be contributing about $750,000 over the 10 years. At this time, the Council is reviewing different options on how it will fund the commitment - whether that money will come out of general funds or out of water rates or a combination of both, or out of a special service levy. Council will likely look at doing a water rate study in 2025.
"Water is a significant driver of economic growth, and the financial strength of a 14-municipality partnership will provide the required infrastructure investment," said Ike Friesen, Reeve for the R.M. of Stanley. "The new framework will secure the funding necessary to ensure continued high quality and consistent water supply for the future. With an aging water infrastructure, the previous funding model simply did not generate the funds required to accommodate the growth in the region."
Based on historical consumption and anticipated growth in the municipality, the RM of Stanley's share of the $15M investment is approximately $1.5M over the next 10 years. "Stanley Council strongly believes that regional collaboration efforts like this benefit the municipality as well as the greater southern Manitoba area and are pleased to be part of this partnership," added Friesen.
Jodi Gaultier, R.M. of Roland Reeve, said the Municipality is glad to have been a part of the decision-making process for, what she calls, an innovative plan to keep the PVWC moving forward for growth and improving water quality.
"Funding allocations have tried to be fair in terms of historical and future use, and every member agreed on the terms," added Gaultier. "The final decision on generating funds is still in discussion, but we will come up with a responsible solution. No one wants to spend money, but money on a reliable source of good quality water is money well spent.”
“Pembina Valley Water Co-op is vital to all the municipalities," added Brain Callum, Reeve for the R.M. of Thompson. "We all have ownership and need to secure its future.”
Dave Carlson, Emerson-Franklin Reeve, added, “We all know that economic development requires adequate water supply and so the ability to work together as a region to ensure we have the water needed is critical, and that is what this group is doing.”
"When the PVWC came to the municipalities requesting capital funding in order to expand their infrastructure to meet the needs of our communities, our main concern was, what would the RM of Morris be expected to contribute?" said RM of Morris Reeve Scott Siemens. "After several meetings with both the water co-op & our neighbouring municipalities, we understood that a municipal contribution would be necessary to ensure water availability for both current residents and for the future growth of the RM of Morris & our neighbours."
That contribution, added Siemens, looks to represent a 3-5% increase in the RM's operating budget.
"The requested amount that PVWC asked the RM of Morris to contribute was based on our RM’s historical growth in order to project our future water needs," he added. "Fortunately, the funding will be spread out over 5-10 years to reduce the impact. We take infrastructure funding seriously, so council is considering its options with regard to taxation in order to be a fair and equitable for all."
“This is true regional leadership," added Winkler Mayor, Henry Siemens. "Water is critical for Winkler and the region. The success of our region depends on the ability of the PVWC to produce clean safe drinking water. While Winkler has its own treatment capacity to serve our growing community, we do buy about 30% of our needs from the PVWC. As one of the 14 member owners of the PVWC, we support this plan. It is a hard, expensive decision but it is critical for our future. We are proud of the visionary leadership and planning that the board of the PVWC is showing by moving forward with a plan to create a long-term sustainable water plan for the region."
At this point, Winkler City Council has not confirmed how the funds will be generated.
"This is what regional partnership is all about: securing our available water now and for future growth," said Morden Mayor Nancy Penner. "By collaborating across municipalities, we can ensure a water supply for our communities today and for generations to come. Working together, we can innovate and plan effectively to support our region’s development and prosperity.
The Water Coop has studied various options and determined that a fair and equitable funding allocation will be based on historical water consumption and future water needs. The City of Morden has incorporated the Water Coop’s funding requirements into our Water and Wastewater Rate Study, with our share being funded from the Utility Reserve."
Additional member municipalities are the Town of Morris and R.M.s of Montcalm and Grey.