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.