‘Death by a thousand cuts’: Calgary proposes water rate hikes up to 95% for businesses

Calgary councillors are set to debate and finalize proposed water utility hikes that could see rates for businesses skyrocket by up to 95 per cent by 2030.

The water utility rate changes, which were endorsed by a committee earlier this month, state rate hikes are necessary “to support the investment needed to maintain services for current and future customers.”

“Make no mistake, if we do not increase our rates, at least somewhat, we’re going to be into continued catastrophic territory where major feeder mains will continue to break, as well as local businesses will continue to be disrupted,” Mayor Jeromy Farkas said Monday.

“We need to get ahead of this issue.”

The water utility changes also recommend increases for residential properties of up to 74 per cent in the next budget cycle.

Rate increases for drinking water, stormwater and wastewater are needed to help cover the $6.5 billion in capital investments to repair or replace Calgary’s aging water infrastructure, the report reads.

“We need to make sure any rate increases or any tax increases we ask Calgarians to support, that they’re justified,” Farkas said.

If finalized by council, a business using 400 cubic metres of water per month—such as a medium-sized restaurant or retailer—could see monthly water bills go from $1,661.33 in 2026 to $3,093.19 monthly in 2030.

Large business consumers—including food and beverage processors and private recreation centres using 10,635 cubic metres of water—would see monthly water bills of $40,914.46 in 2026 skyrocket to $79,991.54 monthly in 2030.

If the proposal is passed by councillors, it would mean yearly increases of between 14 and 20 per cent in each of the next three years.

“What’s going through my mind with another increase is it’s like here we go again,” said Bryce Parsons with True Wild Distillery.

“It’s death by a thousand cuts, really.”

True Wild Distillery produces whisky, gin and vodka and has a restaurant on site.

The margins are already thin, Parsons explained.

“There’s been years of tax increases, property tax increases, rent increases. We dealt with COVID not too long ago, as well,” he added.

The Canadian Federation of Independent Business wrote a letter to councillors about the proposed water increases, urging them to consider lower increases than what’s on the table.

“Businesses do recognize that city infrastructure is important. They rely on this infrastructures every day as well,” said SeoRhin Yoo with the CFIB.

“However, it’s just unfortunate the timing, as well as the steep increase, is coming their way because a lot of these businesses, they’re telling us they’re already overwhelmed.”

The proposed water utility rate changes are on council’s agenda for Tuesday.