Stormwater Funding Implementation

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The Town will be introducing a flat stormwater fee of $48 per residential unit on the final tax bill being issued in May 2023. Non-residential properties (such as commercial, institutional, industrial etc.) will be charged $0.25 per m2 impervious area, per year. The stormwater fee will be indexed annually using the Municipal Price Index (MPI), like the Town’s other user fees.

About the Stormwater Fee

The Town is implementing this critical and responsible fee to ensure we protect our valuable stormwater system (which consists of storm sewers, catch basins, bridges and culverts, watercourses and facilities), and the health and safety of the community. This management is expressly important to the Town as it protects the quality of our waterways like rivers and lakes from becoming polluted, prevents flooding that can cause property damage or harm to residents, and decreases unwanted erosion that affects our shoreline, trail networks and open spaces.

The stormwater fee is expected to generate $2.7M in revenue in year one to support the Town’s stormwater management program.

As of 2021, 16 municipalities in Ontario had implemented a fee. Municipalities include: Waterloo ($163.68), Richmond Hill ($73.92), Vaughan ($53.52), Guelph ($76.80), etc. The numbers are for residential units and the Guelph fee is based on the Equivalent Residential Unit (ERU) billing method.

Residential Fee

The Town is applying a flat $48 stormwater fee to all final residential tax bills. The charge is based on runoff contribution rather than property value.

Non-Residential Fee

Non-residential properties will be charged $0.25 per m2 impervious area per year. Non-residential properties include commercial and industrial units, schools, places of worship, etc. Non-residential units are charged based on their measured imperviousness.

Non-Residential Credit Program

Participation in the credit program is by application only. Owners of Non-residential property must request a Stormwater Fee Credit from Town staff for qualification and consideration of a Stormwater Fee Credit. Credit Applications will be reviewed by Town staff and approved credit amounts will be approved by the Director of Planning and Development Services.

Owners of Non-Residential property who wish to apply for a credit must apply prior to April 1 of the calendar year (beginning in 2024) for any approved credit to be applied to their Stormwater Fee ahead of issuance of the Final Tax Bill for that same year. Credit applications for 2023 only are due by September 1, 2023 and, if approved, will have a refund cheque issued.

Applicants or owners should be prepared to provide:

  • address
  • contract information
  • a brief description of their site
  • maintenance records
  • copies of pollution prevention plans or pond cleanout records
  • any further details to support their application

Town staff will determine qualification for a credit through a comprehensive review of previous site plan applications to determine the level of existing stormwater controls on-site. The credits available have been geared towards the types of controls that sites in Ajax are most likely to be employing already, thereby maximizing potential uptake. The credit will be valid for three years and can be renewed following the three year period. To renew, the Town will require updated maintenance records to ensure that the applicant is maintaining their stormwater management infrastructure appropriately. By-law Number 16-2023 - Stormwater Fees and Charges is available in full for review under the documents section of this page.

Any property owner may appeal their Stormwater Fee on the basis of a legal or technical exemption, or inaccurate Stormwater Fee calculation by June 30 of the calendar year. Appeals will be subject to review and ultimate approval by the Director of Planning and Development Services.

Applicants should contact the Town's Stormwater Team (contact information below).

Stormwater Fee Inquiries

Inquiries may be directed to the dedicated stormwater fee phone line and email address at 905-619-2529 ext. 3100 or stormwater@ajax.ca.

How did we get here?

Stormwater infrastructure is considered a core asset as per Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure. All Ontario municipalities are required to have a final asset management plan by July 1, 2025, which must include information about the levels of service that the municipality proposes to provide, the activities required to meet those levels of service, and a strategy to fund activities related to Stormwater management infrastructure.

A feasibility study conducted in 2021 showed the Town spends significantly less on stormwater management (maintenance and rehabilitation) compared to other Ontario municipalities. The Town’s annual expenditures average around $1.6M, a fraction of the required true costs of $10M.

Approximately 50% of this spending has been through leveraging federal and provincial grant programs, which fluctuate annually and cannot be relied on, and through Town Reserves, which require stable funding. The other 50% is through property taxes. The average house currently contributes $18 per year to stormwater through taxes. If there were no reserves/grants, the contribution would need to increase to $38 per house to maintain the current program with no change in the level of service. A property tax increase of 10% would be required to bring the Town’s stormwater program to a fully funded level ($10M). 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 source is low.

The feasibility study showed that approximately 59% of the impervious area within the Town is from residential areas, while the remaining 41% is from non-residential areas such as institutional, commercial, and industrial. Compare this to tax revenue, which is 80% from residential, and 20% from non-residential. This means that residential properties are paying 21% more for stormwater than they are contributing to stormwater runoff based on imperviousness.

After considerable discussion and analysis, Council directed staff in June 2021 to develop a variable user fee based on impervious area and using the Equivalent Residential Unit (ERU) method. The ERU method charges all residential dwellings the same rate based on average imperviousness per dwelling unit, and non-residential units are charged based on their measured imperviousness.

The Town will be introducing a flat stormwater fee of $48 per residential unit on the final tax bill being issued in May 2023. Non-residential properties (such as commercial, institutional, industrial etc.) will be charged $0.25 per m2 impervious area, per year. The stormwater fee will be indexed annually using the Municipal Price Index (MPI), like the Town’s other user fees.

About the Stormwater Fee

The Town is implementing this critical and responsible fee to ensure we protect our valuable stormwater system (which consists of storm sewers, catch basins, bridges and culverts, watercourses and facilities), and the health and safety of the community. This management is expressly important to the Town as it protects the quality of our waterways like rivers and lakes from becoming polluted, prevents flooding that can cause property damage or harm to residents, and decreases unwanted erosion that affects our shoreline, trail networks and open spaces.

The stormwater fee is expected to generate $2.7M in revenue in year one to support the Town’s stormwater management program.

As of 2021, 16 municipalities in Ontario had implemented a fee. Municipalities include: Waterloo ($163.68), Richmond Hill ($73.92), Vaughan ($53.52), Guelph ($76.80), etc. The numbers are for residential units and the Guelph fee is based on the Equivalent Residential Unit (ERU) billing method.

Residential Fee

The Town is applying a flat $48 stormwater fee to all final residential tax bills. The charge is based on runoff contribution rather than property value.

Non-Residential Fee

Non-residential properties will be charged $0.25 per m2 impervious area per year. Non-residential properties include commercial and industrial units, schools, places of worship, etc. Non-residential units are charged based on their measured imperviousness.

Non-Residential Credit Program

Participation in the credit program is by application only. Owners of Non-residential property must request a Stormwater Fee Credit from Town staff for qualification and consideration of a Stormwater Fee Credit. Credit Applications will be reviewed by Town staff and approved credit amounts will be approved by the Director of Planning and Development Services.

Owners of Non-Residential property who wish to apply for a credit must apply prior to April 1 of the calendar year (beginning in 2024) for any approved credit to be applied to their Stormwater Fee ahead of issuance of the Final Tax Bill for that same year. Credit applications for 2023 only are due by September 1, 2023 and, if approved, will have a refund cheque issued.

Applicants or owners should be prepared to provide:

  • address
  • contract information
  • a brief description of their site
  • maintenance records
  • copies of pollution prevention plans or pond cleanout records
  • any further details to support their application

Town staff will determine qualification for a credit through a comprehensive review of previous site plan applications to determine the level of existing stormwater controls on-site. The credits available have been geared towards the types of controls that sites in Ajax are most likely to be employing already, thereby maximizing potential uptake. The credit will be valid for three years and can be renewed following the three year period. To renew, the Town will require updated maintenance records to ensure that the applicant is maintaining their stormwater management infrastructure appropriately. By-law Number 16-2023 - Stormwater Fees and Charges is available in full for review under the documents section of this page.

Any property owner may appeal their Stormwater Fee on the basis of a legal or technical exemption, or inaccurate Stormwater Fee calculation by June 30 of the calendar year. Appeals will be subject to review and ultimate approval by the Director of Planning and Development Services.

Applicants should contact the Town's Stormwater Team (contact information below).

Stormwater Fee Inquiries

Inquiries may be directed to the dedicated stormwater fee phone line and email address at 905-619-2529 ext. 3100 or stormwater@ajax.ca.

How did we get here?

Stormwater infrastructure is considered a core asset as per Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure. All Ontario municipalities are required to have a final asset management plan by July 1, 2025, which must include information about the levels of service that the municipality proposes to provide, the activities required to meet those levels of service, and a strategy to fund activities related to Stormwater management infrastructure.

A feasibility study conducted in 2021 showed the Town spends significantly less on stormwater management (maintenance and rehabilitation) compared to other Ontario municipalities. The Town’s annual expenditures average around $1.6M, a fraction of the required true costs of $10M.

Approximately 50% of this spending has been through leveraging federal and provincial grant programs, which fluctuate annually and cannot be relied on, and through Town Reserves, which require stable funding. The other 50% is through property taxes. The average house currently contributes $18 per year to stormwater through taxes. If there were no reserves/grants, the contribution would need to increase to $38 per house to maintain the current program with no change in the level of service. A property tax increase of 10% would be required to bring the Town’s stormwater program to a fully funded level ($10M). 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 source is low.

The feasibility study showed that approximately 59% of the impervious area within the Town is from residential areas, while the remaining 41% is from non-residential areas such as institutional, commercial, and industrial. Compare this to tax revenue, which is 80% from residential, and 20% from non-residential. This means that residential properties are paying 21% more for stormwater than they are contributing to stormwater runoff based on imperviousness.

After considerable discussion and analysis, Council directed staff in June 2021 to develop a variable user fee based on impervious area and using the Equivalent Residential Unit (ERU) method. The ERU method charges all residential dwellings the same rate based on average imperviousness per dwelling unit, and non-residential units are charged based on their measured imperviousness.

Page published: 26 Apr 2023, 02:29 PM