The cost of the city's planned upgrades to the south end water pollution control centre is going up by $63 million.

A report going to Thursday's finance committee states the project budgeted to cost the city $273 million is now likely going to cost upwards of $335.6 million.

According to the report by the city's water and waste department, $37 million in additional funds will be needed to meet the more stringent licence requirements levied in 2012 by the province.

The other $26 million in added costs is the outcome of improved cost accuracy as the project moves along in development.

This number could still change, as the project's design is only 30% complete, the report states.

In 2011, the plant came under fire after a malfunction led to partly-treated sewage being dumped into the Red River. The city was eventually sued by the province over the mishap.

The more stringent environmental requirements will also lead to a change of completion schedule, slated for October 2016, according to the report.

Further funding from other levels of government still needs finalizing, but so far $42 million and $17 million has been committed by the provincial and federal government, respectively.

Those cost changes will head to the 2015 budget process for review.

Finance Chair Coun. Marty Morantz had not been briefed on the increase at press time and was not available for an interview.

kristin.annable@sunmedia.ca

Twitter: @kristinannable