Establishing a City-owned Municipal Service Corporation for water, wastewater and stormwater services

The City of Port Colborne is taking steps toward establishing a City-owned Municipal Services Corporation to help address high water and wastewater rates and improve long-term water, wastewater and stormwater affordability for residents.

On April 28, 2026, Port Colborne City Council directed staff to begin the next phase of review, including developing a comprehensive business case, engaging with residents and stakeholders, and continuing discussions with the Province of Ontario and Niagara Region. 

On June 23, 2026, Council approved a draft business case examining the potential creation of a City-owned Municipal Serviced Corporation focused on water, wastewater and stormwater services. Council directed public engagement on the topic, which included two open houses and an online and paper survey.

On July 14, 2026, Council reviewed the public engagement results and approved the establishment of a City-owned Municipal Services Corporation. 

City staff are completing the final steps to prepare for the formal establishment of the Municipal Services Corporation. Additional information will be shared in the coming weeks, including details about any steps residents may need to take. No action is required from residents at this time.

 

Below are answers to some of the most common questions we’ve heard from residents and businesses. We will continue to update this section as more information becomes available and as we hear from the community.

 Questions & Answers about Municipal Service Corporations

 What is a municipal service corporation?

A Municipal Service Corporation, or MSC, is a separate organization created and owned by a municipality to deliver specific public services or manage public infrastructure.

An MSC operates with a business-like structure, but remains publicly owned and accountable to the municipality. In Port Colborne, a City-owned MSC is being explored as a potential way to own and operate water and wastewater infrastructure locally, while maintaining public ownership, local control and City oversight.

This model is similar to other public service structures people may already be familiar with, such as municipally owned utilities, library boards and other public corporations.
Why is the City exploring this?

Port Colborne residents currently pay some of the highest water and wastewater rates in Ontario. Niagara Region has also projected significant annual increases to water and wastewater rates in the years ahead.

The City is exploring whether a City-owned MSC could help:

  • Stabilize and potentially lower water and wastewater rates over time
  • Maintain public ownership of water and wastewater assets
  • Keep local decision-making in Port Colborne
  • Support long-term financial sustainability
 What services could be included?

The City is currently exploring a City-owned MSC for water and wastewater infrastructure in Port Colborne.

In the future, the MSC could expand to potentially include infrastructure currently operated by Niagara Region within Port Colborne’s boundaries. Additional research and data is required to determine if this would be a feasible option. 

Would this privatize water services?

No. The City is not exploring privatization.

A City-owned MSC would remain publicly owned. Water and wastewater infrastructure would remain public assets, and the services would continue to be delivered for the public benefit. Major decisions, including rate-setting, would require Council approval.
 What would change for residents?

At this stage, nothing is changing.

The City is gathering information and preparing a business case to determine whether this model is feasible and beneficial. The goal of the review is to understand whether a City-owned MSC could provide more stable and affordable water and wastewater services for Port Colborne residents and ratepayers.

Residents would continue to receive safe, high-quality water and reliable wastewater services.
 What would happen to workers?
Workers would remain in the same facilities, performing the same work, with no loss of seniority, benefits or OMERS pension plan.
 How did this work begin?

Port Colborne has been exploring the idea of a City-owned MSC since February 2025, originally as a way to finance the underground infrastructure needed for the East Side Employment Lands district.
 What did the business case review?

The final business case was meant to support Council and the community in understanding whether a City-owned MSC is feasible, responsible and beneficial.

It included a review of:

  • Financial impacts and potential savings
  • Governance and accountability
  • Legal and regulatory requirements
  • Service delivery options
  • Human resources and labour relations
  • Risks and mitigation measures
  • Implementation steps and timelines
  • Potential impacts for residents, workers and ratepayers

Has Council decided to create a Municipal Service Corporation?

Yes. Council has approved the establishment of a Municipal Services Corporation. Work is currently underway to formally establish the corporation and setup the necessary legal and financial aspects.

Would the City still own the infrastructure?

Yes. Maintaining public ownership is a key principle of this work.