The president of the Association of Manitoba Municipalities has written a letter to the Public Utilities Board expressing concern over Manitoba Hydro's five-year rate hike proposal.

Hydro has proposed the rate hike start with a 7.9% increase on August 1, 2017, followed by another 7.9% increase on April 1, 2018.

Chris Goertzen says his letter to the Public Utilities Board expressing his concern and clearly stating the strain municipalities would face is these increases became reality.

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AMM President Chris Goertzen"When it comes to cost incurred, especially for public infrastructure, recreation facilities, and cultural facilities. When it comes to the hydro rates we are concerned that a 7.9% increase that will happen twice or maybe even three times will be a significant blow to many municipalities."

Goertzen notes at present there are municipalities struggling with hydro costs and an increase will only create more problems.

"So, to have them go up more than 15% would be a real challenge for many municipalities, depending on the size of the facility they have and the age of the facility. [The size and age of a facilitity] can make a really big difference on the bottom line and how they balance their budget."

He says municipalities do look for efficiencies where they can but with a high increase municipalities are concerned about how this will affect their budget this year and in the year's going forward.

Speaking as the mayor of Steinbach, Goertzen adds the cost implications of Manitoba Hydro's proposed rate hikes should also be a concern to citizens as they are really substantial.

"We obviously want Manitoba Hydro to be viable, but at the same time, 7.9% hike or 15% hike is going to be really substantial and will be a concern for many residents and the city as well."

Goertzen says, going forward, he would like to see sustainable costs from Manitoba Hydro.