• September 2024 project update

    On September 25, 2024, Council considered your feedback regarding a new stormwater infrastructure fund. The survey received 314 responses.

    Council voted to proceed with option four which will create a utility fee based on the actual measurement of the hard surface area in a sampling of all property types. Option four was the most popular with survey respondents, who said it seemed the most fair.

    The implementation of this option will take several months. Stay tuned for further updates.

    View the public engagement Council report 

Why stormwater matters

The City’s stormwater management system is largely unseen, underground infrastructure but it plays a huge role in keeping our community and natural environment safe. Rain, snowmelt, and residential/commercial water usage run off lawns, pavement, and other man-made surfaces into local waterways. If runoff is not managed properly, it can create sinkholes, flooding, erosion, water quality issues, and have a negative impact on aquatic life. Our stormwater management system (storm sewers, catch basins, ponds, ditches, culverts, etc.), helps to intercept and guide water to a safe place without causing damage.

Historical sprawling development in Prince George has resulted in a lot of infrastructure to support a relatively small population. The average installation date for the storm sewers we use today is 1981. Our storm infrastructure is, on average, around 40 years old. That means some of the underground pipes are eroding and leaking. The replacement value of this infrastructure is approximately $390 million.

We’ve seen evidence of our aging stormwater system in hazards like the sinkhole at Winnipeg and Carney Street in 2018. Aging stormwater infrastructure will continue to trouble us until we’re able to secure sustainable levels of funding to keep up with growing maintenance and replacement costs. During the 2024 budget consultation, we heard from residents that funding stormwater drainage is a top-three infrastructure priority next to roads and sidewalks.

Our system

Prince George's stormwater system consists of a massive network of pipes, drains, and other infrastructure that works together to safely divert water.

Funding stormwater management

Property taxes are the City’s main revenue source to provide services to residents. Property taxes include the general levy as well as dedicated levies to fund things like snow control, road rehabilitation, and general infrastructure renewal projects. The City funds water, wastewater, and solid waste collection services through utility fees.

The City primarily funds its stormwater management program using property taxes. More specifically, it is funded through:

  • Debt servicing. Debt is used to finance many capital needs which then must be paid back using property taxes.
  • Reserves. Some reserves are funded by property taxes, such as the General Infrastructure Reinvestment Fund.
  • Federal and provincial grant programs when available.
  • In 2023, approximately $1.8 million was allocated annually to stormwater operating from the general levy.

As noted in the City's Integrated Stormwater Management Plan (ISMP), there currently isn’t a dedicated funding source for the maintenance and renewal of our stormwater system. During the ISMP creation in 2021, an independent assessment estimated that the City should be spending approximately $9.1 million annually on the system. Increases to stormwater funding would allow City crews to replace deteriorated infrastructure before failure like sinkholes.

Proposed funding

Some of our most important services (like water and sewer) are funded using direct reserves which are separate from property taxes. Funds in those reserves can only be spent on the service it was collected for. For example, a utility bill includes a charge for water. The money collected for the water utility can only be spent on maintenance, operations, and eventual replacement of the water system.

In 2024, the average representative home in Prince George paid approximately $119 for stormwater management through property taxes. Property owners are already paying for stormwater infrastructure, however, the following options will allow us to create a dedicated fund for stormwater management programs. Option one is the simplest and least expensive to implement. Options two through four are more costly and complex to administer but they are more equitable as they are based on the amount of service actually used by each property owner.

This would be an annual fee in your property tax each year and will be increased gradually over several years to reach the amount needed to sustain service levels.

  • Pros:
    • No additional bills. The amount is calculated as part of your annual property tax.
    • Dedicated funding source that cannot be reallocated to anything other than the stormwater management program.
  • Cons:
    • Property taxes are based on a property’s assessed value, which does not typically correlate with its runoff contribution, so the fairness and equity of this revenue funding model is low.
      • Inequitable: Tax-exempt properties generally do not contribute tax funds to the municipality’s stormwater management program. Tax-exempt properties include institutional parcels (e.g., schools, hospitals, and churches) and other charitable organizations that have been provided a property tax exemption by City Council.
      • Unsustainable: There is no incentive for property owners to reduce stormwater runoff and pollutant discharge which could potentially reduce City costs in the operation and renewal of the stormwater system.

For example, the City currently charges a snow levy on each property to fund snow and ice operations. This rate is calculated based on property assessment values in the same way that property taxes are calculated.

Based on the type of property (residential, business, etc.) and tiered by property size, a flat fee would be charged on your utility bill. Basing the fee on property size ensures the amount of stormwater entering the system from your property matches what you pay. The amount will be gradually increased over several years to reach the amount needed to sustain service levels.

  • Pros:
    • Dedicated funding source that cannot be reallocated to anything other than the stormwater management program.
    • Those with larger properties may have more runoff so they pay more into the system.
  • Cons:
    • Those with larger properties might not have a large amount of hard surface so there are some that might contribute very little runoff.

An example of a tiered flat rate program can be found on the City of Richmond Hill website. In Richmond Hill, the rate is structured by property type. The site shows a new rate structure that has been proposed in response to feedback from residents which will now include property size in the rate calculation. This city calls their fee, “Flood Protection”.

Based on the zoning of your property, a formula will be developed to determine how much your property is contributing to the stormwater system. This is calculated by using the zoning's maximum site coverage to determine the amount of allowed hard surface on your property. For example, if you pave your entire property, stormwater is not naturally absorbed by the ground and must enter the stormwater system.

  • Pros:
    • Dedicated funding source that cannot be reallocated to anything other than the stormwater management program.
    • Fair and equitable fee that is based on runoff contribution rather than property value.
    • Potential to add an incentive program to encourage the use of low-impact development features such as rain barrels and rain gardens to keep the stormwater where it falls.
    • Costs for municipal stormwater management services are distributed to all privately and publicly owned developed properties within the municipality, including tax-exempt properties.
  • Cons:
    • As the fee is based on property zoning, the amount of hard surface is an estimate. Properties with very little hard surface will pay the same as others within the same zoning who may have more hard surfaces.

This option would use a statistical sampling of the measured hard surface area for all types of residential properties to determine the average ERU size. This becomes the base billing unit. The rate for non-residential properties would be determined by dividing the measured hard surface area by the average ERU size. This provides a more accurate picture of the probable hard surface area per property than option two which is based only on property type and size or option three which is based on the maximum allowable coverage by zoning.

  • Pros:
    • Dedicated funding source that cannot be reallocated to anything other than the stormwater management program.
    • Fair and equitable fee that is based on runoff contribution rather than property value.
    • Costs for municipal stormwater management services are distributed to all privately and publicly owned properties within the municipality, including tax-exempt properties.
    • Potential to add an incentive program to encourage the use of low-impact development features such as rain barrels and rain gardens to keep the stormwater where it falls.
    • There is more accuracy in the estimation of hard surfaces on the properties.
  • Cons:
    • Additional implementation costs (e.g., rate study, database management, billing, and customer service). This cost is dependent on a number of factors that have not been determined at this stage.
    • Required to update the system as properties redevelop.

An example of the rate structure can be found on the Town of Newmarket website. They measured a sampling of each property type’s hard surface and divided the rate structure into three categories: low runoff, medium runoff, and high runoff. The stormwater charge is calculated by multiplying the size of a property by the runoff rate categories.

This image shows the hard surface area for a property, highlighting the building footprint in the left panel and the driveway and parking areas in the right panel. The sum total of these areas within the lot boundary represents the total hard surface area for this property.

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