Stormwater Fee Feasibility Study

A study to explore funding options for replacing and repairing aging stormwater infrastructure and making improvements to help adapt to the impacts of climate change.

Study update

A Stormwater Fee Feasibility Study was launched in 2024 to explore funding options for a fair and equitable way to pay for the Town’s stormwater management system and services. The new structure shifts away from the traditional property tax method to a “user pay” model to provide a sustainable funding source and support infrastructure needs into the future.  

After extensive community input, Town Council directed staff to proceed with a stormwater funding structure and implementation plan, an initiative that will advance the Town’s Rainwater Management Plan (RWMP) ensuring sustainable stormwater infrastructure and greater resiliency against flooding.

In September 2025, Council approved a dedicated stormwater funding structure, Stormwater Management Fee Policy and by-law to ensure sustainable infrastructure and flood resiliency. Phase-in of the fee has been approved for 2026 implementation. Learn more on the Stormwater Fee page.

Need for a new funding model

The Town needs additional funding to support our stormwater management system and services into the future, and we need a fair and equitable way to pay for it. 

Updates to the Town’s Rainwater Management Plan estimate it will cost upwards of $732 million to care for and improve the Town’s stormwater system over the next 30 years – averaging $24 million per year.

Stormwater management challenges the Town is facing include:

  • Aging infrastructure that is nearing its end of life and will need to be replaced.
  • Pipes, shoreline, harbour walls, ponds, and other infrastructure requiring renewal. 
  • Impacts of climate change, including more extreme rainstorms and temperature changes. Extreme weather events will put a strain on the town’s stormwater system and increase the risk for flooding and property damage.

A dedicated stormwater fee would improve equity and more effectively address the Town’s funding needs, making it a preferable alternative to the current property tax method. 

Learn about the study

Watch the video below to learn more about stormwater and the Stormwater Fee Feasibility Study.

Contact

ServiceOakville
905-845-6601

service@oakville.ca

Exploring better funding options

Currently, property owners pay for the Town’s stormwater management system and services through property taxes. 

Under the current funding model, the amount of money a property owner pays is based on the value of their property, not on how much stormwater their property creates and sends to the Town’s stormwater system. This leaves some residents paying more than their fair share while some are paying less than they should.

The study team conducted a technical evaluation on the existing funding structure as well as on several dedicated stormwater fee structures. Based on the analysis, under the current property tax method over 80 per cent of the funds collected come from residential homeowners, however the amount of stormwater runoff residential properties contribute to the Town’s stormwater system is only 57 per cent as illustrated in the charts below.  

With a stormwater fee, the estimated runoff area from each sector is estimated to determine the distribution of stormwater management costs to each property category (single detached properties pay for the estimated runoff area of single detached homes, commercial properties pay for their estimated runoff area, and so forth).  

Existing tax method

Runoff area

Study process

Establishing the need for the study

Funding options and analysis

Public engagement on preferred funding option and implementation plan

Council meeting

Virtual public meeting

  • September 4, 2025: A virtual meeting was held for Oakville business owners to discuss how the proposed stormwater fee structure could impact businesses and how the fee could be reduced through an incentive program.