One of the options that may emerge to manage Calgary’s future water services is its separation into a dedicated unit at the City of Calgary.  

With an independent review report on the Bearspaw feeder main coming Jan. 6, it’s believed the panel may recommend the transfer of those duties to a dedicated water utility department. There has been some speculation that a full transfer to a third-party provider, like Enmax, is a possibility.   

The panel’s report will be delivered in public during a special meeting of council scheduled to begin at 1:30 p.m. on Wednesday.

Currently, Calgary’s Water Services department is one of seven units that fall under Operational Services, with Utilities Delivery split into a unit that falls under Infrastructure Services. These allocations were part of a citywide reorganization done under previous city councils.

Enmax, a wholly owned subsidiary of the city, while largely being an electricity provider, is already contracted by the City of Calgary to handle the billing of water and wastewater services, along with waste and recycling.

Back in February 2009, the Metro Calgary newspaper had reported that the City of Calgary was exploring the third-party delivery of water services, though primarily for regional water service delivery. Calgary provides water to Airdrie, Strathmore, Chestermere and Tsuut’ina Nation.

When asked about the future infrastructure investment in Calgary’s water services, Ward 5 Coun. Raj Dhaliwal said a different question should be asked.

“I think the bigger question is, is this the right approach, which is, can water and wastewater be approached from a business standpoint, a different lens?” Dhaliwal said.

LWC asked if that meant farming the infrastructure and governance of Calgary’s water system to a third-party, like Enmax.

“That could be an option. (Edmonton’s wholly owned subsidiary) Epcor does it,” he said.

“They’re making rapid dividend returns to the city. Is that a way forward that with that entity, whatever that entity is, they will be able to have their own borrowing bylaw, they should be able to borrow on their own credit ratings, with taxpayers not bearing the cost.

“But then we’ve got to be careful. What does that mean for water rates?”

How Calgary pays for water infrastructure

Currently, Calgary’s primary source of funds for the delivery of new infrastructure, and to upgrade aging infrastructure, is through water rates, with the city often borrowing the upfront amount and then repaying through increases to how much Calgarians pay for water.

Growth-related water infrastructure costs are initially covered by offsite development levies.

In some cases, provincial or federal government capital grants are available to fund portions of water infrastructure.

“The water utility does not profit from rate and service charge adjustments. Water utility rates and charges are set at the lowest amount possible to deliver current services, and expand, upgrade, repair, and maintain the infrastructure so we can continue to deliver the stormwater services you value,” reads the City of Calgary’s website.

“The water, wastewater, and stormwater services are entirely funded by rates paid by customers. The water utility does not receive any funding from property taxes.”

In the recently approved City of Calgary budget, there was a $1.1 billion investment in Calgary water infrastructure. Also, a part of the budget was an increase of around $5.29 per month for the typical homeowner, or 3.9 per cent.

Business customers will pay around seven per cent extra for water in 2026.

Coun. Dhaliwal acknowledged there could be political cover by having water rate increases done by a separate entity. Right now, Calgary city council approves water rate hikes through the budget process.

The City of Calgary was contacted about funding for water infrastructure and the potential transfer of water services to a third party like Enmax. Both requests were acknowledged, but neither one received a response.

When asked specifically about water services governance and oversight being transferred to a third party, Calgary Mayor Jeromy Farkas said that he wanted to have an open mind going into the panel presentation on Tuesday.

“I’m open to all options but want to come into tomorrow’s meeting with as much an open mind as possible to action the panel’s recommendations,” he said via text in response.

Reached Tuesday afternoon, Enmax said they await the independent panel’s report.

“As a regulated utility, Enmax brings experience and capability in managing essential services and has a long track record of delivering reliable electricity to Calgarians,” read an email response from Alexandra Frison, Director Communications & Community Impact.

“Any decisions regarding future governance or service delivery would ultimately be for City Council to consider.”