The City of Winnipeg Public Service is recommending a three-year increase for sewer and water rates in order to fund $1.2 billion in upgrades to sewage treatment facilities, along with tackling the cost of inflation.

Officials said water and sewer rates, including the basic charge, would increase by 4.3 per cent each year from 2013 to 2015. The average homeowner would see an increase of about $3 per month, said the city.

City officials said the proposed increase is lower than previous projections, which called for two six per cent increases, following by a 6.5 per cent increase in year three.

The upgrades to the sewage treatment facilities have been provincially mandated, said the city.

The proposed increase still needs to go before a city committee and then council as a whole to determine whether or not it will be approved.