On Tuesday, the Community Issues Committee heard a proposal for advancing an innovative regional water and wastewater expansion project that could help unlock the next phase of transformative regional growth by:
- Supporting up to 22,000 new homes.
- Creating more than 44,000 jobs across Alberta.
- Opening approximately 4,000 hectares of land in southeast Lethbridge for future homes, businesses and jobs, including areas around the Lethbridge Airport that currently have constrained water and wastewater services.
A proposal was presented to Lethbridge City Council, as a business case for a $287 million regional water and wastewater expansion program.
According to the City of Lethbridge, the business case includes a funding request of $95.6 million from the Government of Alberta. The funding would form part of a three-way partnership between the City, the province, and the Government of Canada.
The proposal would also help the City pursue matching federal funding through the Canada Housing Infrastructure Fund.
A provincial commitment would allow this region-shaping project to begin construction in 2027 and be completed by 2030.
If approved by Council, and supported by provincial and federal funding partners, the expansion would increase water treatment capacity to 180 million litres per day. It could also:
- Contribute nearly $4.6 billion in Alberta’s GDP.
- Generate $2.8 billion in labour income.
- Produce more than $296 million in government revenues by 2042.
These outcomes align with provincial priorities to increase housing supply, improve affordability, and grow Alberta’s economy.
The project also unlocks wastewater conveyance and allows for development in areas currently restrained by a lack of capacity.
The business case shows existing water and wastewater systems are nearing their capacity limits.
In May, City Council approved $285 million for an accelerated expansion of the Wastewater Treatment Plant.
This additional $287 million of upgrades will be needed to support growth in Lethbridge and nearby communities. Lethbridge also supplies about 20 per cent of its treated water to neighbouring municipalities.
To support growth across southern Alberta, the City needs the infrastructure to make it possible, said Mayor Blaine Hyggen. “The City is ready to fund one-third of the upgrades. This proposal would help secure funding partnerships, while helping manage costs for residents.”
The City stands ready to fund its one-third program cost. This includes $10 million from its Local Government Fiscal Framework allocation and a rate-funded approach.
Longer term analysis included in the business case suggests a broader Lethbridge plant expansion could eventually increase water treatment capacity to 250 million litres per day for the region.
The business case identifies expansion of the Lethbridge system, as the most cost-effective path forward.
The Committee directed Administration to submit a formal funding request to the provincial government.
