Exploring a City-owned Municipal Service Corporation for water and wastewater services

The City of Port Colborne is exploring whether a City-owned Municipal Service Corporation could help address high water and wastewater rates, reduce duplication between the City and Niagara Region, and improve long-term affordability for residents.

This work is in the early stages. No final decision has been made.

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.

Exploring a new approach like a Municipal Service Corporation can raise important questions.

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:

  • Reduce duplication between the City and Niagara Region
  • Stabilize and potentially lower water and wastewater rates over time
  • Improve coordination by managing services under one organization
  • 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. This may include infrastructure currently operated by Niagara Region within Port Colborne’s boundaries.

The City is also exploring whether related roadway infrastructure currently owned by Niagara Region within Port Colborne should be reviewed as part of this work, if a City-owned MSC proceeds. This is because water, wastewater and stormwater systems are often located within road rights-of-way and are planned, built and maintained alongside road infrastructure.

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. This will be reviewed in more detail through the business case, including human resources and labour relations impacts.
 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.

As broader governance discussions in Niagara have evolved, the City is now exploring whether a larger, city-wide MSC model could help address water and wastewater costs, reduce duplication, and improve service delivery for the whole community.
 What has Council approved?

Council has directed staff to:

  • Engage with the Province and regulatory bodies
  • Submit an Expression of Interest to the Province
  • Develop a comprehensive business case
  • Review financial, legal, governance, operational, risk and labour considerations
  • Request information from Niagara Region to support the review
  • Prepare a communications and engagement plan for residents and stakeholders
  • Report back to Council before any final decisions are made
 What will the business case review?

The business case will help Council and the community understand whether a City-owned MSC is feasible, responsible and beneficial.

It will include 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
 How can residents get involved?

Community engagement will be an important part of this work. The City will share clear information, answer questions, and provide opportunities for residents, workers and stakeholders to share feedback before any final decision is made.

More information about upcoming engagement opportunities will be posted on this page.

Has Council decided to create a Municipal Service Corporation?

No. Council has only approved the next steps to explore the option. No final decision has been made.

Would the City still own the infrastructure?

Yes. Maintaining public ownership is a key principle of this work.
 Will my water and wastewater bill go down?

That is one of the goals being explored, but the City needs a full business case before it can confirm any potential savings. The review will look at whether this model could help stabilize and potentially lower rates over time.

How long could this take?

Updates will be posted on this page as the work continues. Residents can also review Council reports, public updates and engagement opportunities as they become available.