Stormwater Fee Feasibility Study

• The town needs additional funding to support our stormwater management system and services into the future, and we need a fair and equitable way pay for it. 
• We should reward property owners who take action to manage stormwater quantity and quality on-site.
• Many municipalities across Canada are moving towards more equitable and sustainable funding models. 
• A new funding method will ensure we adhere to Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure. 

The study is reviewing the current tax system and different options for a separate, dedicated stormwater fee. A stormwater fee would charge property owners based on how much stormwater runoff their property creates. Properties that create more runoff and have a bigger impact on the stormwater system, are charged more. A stormwater fee can take different forms and several stormwater fee methods are under consideration. Our options:

Keeping the current tax system

• All fees related to stormwater management will be included in property taxes with no consideration for a property’s impact on the town’s stormwater system. 

A tiered flat stormwater fee

• Property types would be divided into three tiers, and all properties in the same tier would pay the same fee. With this method, all low-density residential properties (like single family homes) pay one fee, high-density residential properties (like multiplexes, townhouses and condos) pay another, and non-residential properties pay another.

A variable stormwater fee

• Fees are calculated for each property based on property size and estimated stormwater runoff. To estimate stormwater runoff, every property type is assigned a “runoff coefficient” using the town’s engineering guidelines. Property types with more hard surfaces that cannot effectively absorb stormwater (like non-residential buildings with large parking lots) have higher runoff coefficients. Property types with more green space and fewer hard surfaces (like single-family homes) have lower runoff coefficients.

Stormwater fees can also be designed so that different calculation methods are used for residential and non-residential properties.

Funding options will be evaluated according to the study’s guiding principles, prioritizing fairness, climate resiliency, and financial sustainability. The guiding principles also emphasize that the method should be easily justifiable and simple to understand and administer. 

Public feedback will help the town weigh the various factors and select the recommended funding option.

Like other municipalities that have implemented stormwater fees, an incentive program will be considered. A stormwater incentive program could include credits to help lower a stormwater fee for property owners who implement on-site measures. Stormwater management measures, such as rain gardens or cisterns, reduce the amount and/or improve the quality of stormwater runoff from their property. 

An incentive program would help property owners reduce stormwater fees. It would also encourage on-site stormwater management that better supports the natural water balance and protects the natural environment.