How Canmore's $67 Million Wastewater Project Just Became a $103 Million One

When Canmore first started planning a major upgrade to its wastewater treatment plant, the early estimate put the cost at about 67 million dollars. Two years later, that same project is now projected to cost 103 million dollars. The increase is large enough that Town staff brought the issue to the Finance Committee this week, warning that the upgrade has become one of the most expensive capital projects on the horizon and will require ratepayers to shoulder a significant portion of the additional cost.

The wastewater treatment plant sits just east of downtown and treats everything flushed or drained from homes and businesses before the water enters the Bow River. The system has been operating since the late 1990s and was built for a much smaller community than Canmore is today. The Town has been planning a regulatory upgrade for years, in part because the existing treatment technology is older and because Canmore must meet provincial environmental standards that apply to every municipality that discharges into a river.

According to the Finance Committee transcript, the early 67 million dollar estimate was based on what staff described as a very high level design with only a rough understanding of what the technology or supporting infrastructure would look like. Since then, the Town has gone through a formal process to pick the technology for the new system, complete more detailed engineering, and update the numbers to 2025 construction pricing.

Town administration told councillors that these steps changed the scope and that the final number is now clearer. The increase from 67 to 103 million dollars is tied to several factors confirmed in the meeting. First, the Town evaluated two competing treatment technologies and ultimately chose a membrane bioreactor system known as MBR. This is a widely used and well understood wastewater technology across Canada and the United States. Second, during the design process, engineers identified the need for an additional holding tank and treatment upgrades to support both the current demand and future flows. Third, the project cost was updated to reflect recent construction pricing, which administrators noted has risen sharply in the last few years, especially for concrete and other industrial materials.

The final price tag, however, is not entirely new spending. During the same discussion, administrators explained that three projects originally linked to the wastewater plant are no longer required, saving a combined total of about 12 million dollars. One of these was a planned round of testing for the old treatment system. Another was a proposed third clarifier that engineers have since determined is not needed. The third was a planned upgrade to the older biological aeration filtration system, which will be replaced entirely once the new MBR system is built.

While these savings reduce some of the pressure on the utility, they do not change the core reality. Canmore is now preparing for a regulatory upgrade that will cost more than 100 million dollars. Wastewater projects of this size are usually funded through a combination of utility fees, debt, and a portion paid by developers through what is known as off site levies. In the meeting, staff confirmed the split for this project is roughly half paid by ratepayers and half paid by growth. The complication is that the Town must build the new system before future development happens. That means Canmore will need to borrow money to build the upgrade now and recover the development portion over time.

Because of that timeline, utility rates are expected to rise. Staff noted that the utility must have enough revenue each year to cover operating costs, debt payments, and contributions to reserves. To meet those targets and keep the utility financially stable, the Town will be asking for higher increases than previously planned. Administration told the committee that the average household was originally expected to see its utility bill rise by about twenty dollars a month in 2026, but the updated costs mean that increase is now projected to be closer to twenty five dollars. The exact rate changes will be finalized in December when council votes on the budget and the utility bylaw.

The wastewater treatment upgrade is not the only cost that Canmore residents may remember. Earlier this year, the Town approved a separate project focused on odour control at the same facility. That work involved updating chemical treatment systems and adding what is known as a phase three odour treatment upgrade. It added five million dollars to the utility budget and is already underway. Bow Valley Insider has reported on that project previously, but it remains a relevant part of the overall picture because it is another significant cost added to the wastewater system in a short period of time.

While the odour project is separate from the 103 million dollar regulatory upgrade, both affect the utility at the same time and both draw from the same reserve and rate structure. That is why administration warned the Finance Committee that waiting another year to adjust rates would leave the utility in what they described as a dire situation. The bulk of the wastewater upgrade will be funded through debt, but that debt must still be serviced. That means higher annual costs for the utility for many years.

The wastewater treatment plant is one of the most important pieces of infrastructure in the community. It protects the Bow River, supports public health, and ensures the town can continue to grow. The upgrade is not optional. It is required to meet provincial regulations and replace aging technology that was installed almost three decades ago. The new system is expected to be more reliable, more efficient, and easier to operate under modern standards.

What is optional is how quickly the Town chooses to raise rates and how much financial buffer it wants to maintain in utility reserves. Those decisions will be made in the coming weeks as the budget moves from committee to council. For now, the clarity is in the numbers. A project once expected to cost 67 million dollars is now 103 million dollars. The Town will need to borrow, ratepayers will need to pay more, and the wastewater plant is officially one of Canmore’s largest infrastructure investments for the next decade.