Changes coming to Hamilton’s stormwater fees

Hello Ward 8 Neighbours,

Most property owners in Hamilton will be paying for stormwater costs directly through a new “sustainable” and “equitable” user pay model.

For more details, please continue reading below…

The ratified motion from the June 28 meeting doesn’t yet involve creating new stormwater rates. The City plans by December to do public consultations and create a financial incentive program for property owners who reduce or improve the quality of stormwater runoff.

The City has an annual funding deficit of $30,000,000 for stormwater management infrastructure – due mainly to runoff from large impervious concrete, asphalt and roof areas on commercial/industrial and institutional properties.

These properties currently pay a fraction of their fair share towards their use of the stormwater system.

What is stormwater and what is stormwater management?

Rain, melting snow, and ice that washes off driveways, parking lots,
roads, yards, rooftops, and other surfaces.

The funding from the dedicated stormwater fee aims to “strengthen the resiliency” of the stormwater system and “protect natural resources and waterbodies” from the harmful effects of stormwater. Problems from stormwater, which carries “harmful pollutants,” include flooding, erosion and poor water quality in waterbodies such as rivers, lakes, creeks and wetlands.

The City has cited the need for “sustainable funding” and financial challenges including Hamilton’s annual stormwater funding gap of $30 million. It will cost an estimated $43 million alone to manage the stormwater system this year in Hamilton, funded by both the rate and general tax levy. For 2025, the City’s stormwater budget is $54 million.

The move creates a dedicated user fee for stormwater services, which will be separate in the utility bill. The stormwater fee revenue will fund “all aspects of the City’s stormwater services,” according to the  report presented to council. Council will review the stormwater charge annually during each budget process.

How do the changes help taxpayers and property owners?

One of this term of Council’s official priorities is to reduce the residential tax burden.

The stormwater management fee structure was developed following five Council approved guiding principals:

1. Fair & equitable (“user-pay”)
2. Climate resilient & environmentally sustainable
3. Affordable & financially sustainable
4. Justifiable
5. Simple to understand & manage

Residential properties currently contribute nearly 50% of all water and wastewater revenues through water billing, and 70% of related tax revenue through their property tax, while only responsible for about 43% of the stormwater runoff.

This means residential properties are indirectly subsidising the cost of the stormwater system for other sectors (commercial/industrial/institutional) under the current stormwater system funding.

The new stormwater management rate structure will correct this inequity. For example, a commercial shopping mall will pay more than $100,000 per year in new stormwater fees and a big box store will pay roughly $20,000 per year.

For residential properties, the new stormwater management fee is set as close to revenue neutral as possible. The average residential property will see a 11.7% decrease on their annual water bill (roughly $124 in savings), and then pay a the new stormwater fee of $170 – a net annual difference of $46, or $3.83 per month.

The new fee will also apply to rural areas which currently pay about one tenth of the City’s spending on rural stormwater management systems.

The stormwater management fee ensures that residential taxpayers are not left to pay the bill for the current and future needs of the City’s critical stormwater infrastructure.

Questions or concerns?

If you have any questions or concerns, you can contact our office here.