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

After extensive community outreach in fall 2024, Town Council directed staff to proceed with further public engagement on the preferred stormwater funding fee structure, beginning in 2025.

Based on feedback from public meetings and a community survey, there is strong support for a dedicated stormwater funding model. The community prefers a fee structure that distributes costs proportionally to the amount of runoff that different properties contribute to the stormwater system.

Review the December 16, 2024 Rainwater Management Financial Plan and Stormwater Funding Options staff report for a summary of the funding options considered, the preferred stormwater fee structure and the engagement conducted so far. 

Learn more about the study below.

About the study

The Town of Oakville is completing a Stormwater Fee Feasibility Study to explore options for a fairer, and more equitable way to pay for our stormwater management system and services. This would ensure we have a sustainable funding source to support our infrastructure needs into the future. 

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

We face some challenges

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.  

Recent 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. The town currently collects an average of $12.2 million each year for stormwater management through property taxes. We need to plan now to ensure sufficient funds are in place to continue to invest in our stormwater infrastructure.

Exploring better funding options

Currently, property owners pay for the town’s stormwater management system and services through property taxes. 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 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. 
  • We should reward property owners who take action to manage stormwater quantity and quality on-site.
  • Many municipalities across Canada are moving towards more equitable and sustainable funding models. 
  • A new funding method will ensure we adhere to Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure

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. Based on a technical evaluation and public feedback, the following stormwater fee structure is preferred: 

  • Distribution of the stormwater funding needs based on runoff area. Non-residential property owners would contribute 56 per cent of the stormwater management funding and residential property owners would contribute 44 per cent. This distribution better reflects the real impact different property types have on the town’s stormwater management system.
  • For Residential Properties: A three-tier (single family, high density, semi-detached/link home) flat fee. Property owners in each tier would pay based on the average runoff area for each tier. This method reflects the typical residential property impact on the town’s stormwater system, while minimizing administrative cost and effort. 
  • For Non-Residential Properties: A variable fee based on property size. A rate is calculated based on the estimated stormwater runoff area for non-residential property types using the town’s Development and Engineering guidelines. Each property owner would pay a different fee based on the rate multiplied by the area of their individual property. A variable fee is recommended due to the greater variability among non-residential properties compared to residential properties. 

Like other municipalities that have implemented stormwater fees, the development of an incentive program is under consideration. A stormwater incentive program could include credits to help lower a stormwater fee for property owners who implement stormwater management measures, such as rain gardens or cisterns, reduce the amount and/or improve the quality of stormwater runoff from their property. 

An incentive program would help property owners reduce stormwater fees. It would also encourage on-site stormwater management that better supports the natural water balance and protects the natural environment.

Public engagement opportunities

We value your input! Building on past consultation, additional public meetings and business community outreach are planned for 2025. Future opportunities will be announced in the coming weeks. Stay tuned for more information and reach out anytime with your feedback by emailing stormwaterfee@oakville.ca.

You can read more about past engagement events below.  

Past engagement opportunities

October 1, 2024 - Virtual public meeting

We held a virtual meeting to provide the public with more information about the funding options being considered.

Watch the meeting recording

October 2, 2024 - In person public meeting

We held a public meeting at Glen Abbey Community Centre, including a presentation and question and answer period.

Review The Presentation Slides (PDF)

October 9, 2024 - Virtual public meeting for the business community

We held an information session for commercial, retail and industrial property owners.

Watch the business community meeting recording

Two public surveys were open until October 18, 2024. Residential and non-residential property owners were invited to share their thoughts on the stormwater funding options. The town received 741 survey responses:

  • Over 80 per cent of respondents consider the town’s stormwater services “important” or “very important,” and support improvements for climate change resiliency and sustainable funding. 
  • More than 67 per cent agree that funds should be collected based on the amount of stormwater runoff a property contributes, with a preference for a variable stormwater fee. 
  • Over 70 per cent of respondents support incentive programs, and 69 per cent would likely implement on-site measures if offered a subsidy or rebate. 

Timeline and next steps

Establishing the need for the study
  • Council workshop was held on June 11, 2024.
  • The education campaign to share the rationale for the Stormwater Fee Feasibility Study began in summer 2024.
Funding options and analysis
  • Council workshop to discuss funding options was held on September 10, 2024.
  • Town-wide public engagement, including a public meeting, stakeholder meetings and online survey to gather input and feedback on the different funding options and impacts, and incentive program options.
  • Council directed staff to proceed with further public engagement on the preferred stormwater funding fee structure, beginning in 2025.
Public engagement on preferred funding option and implementation plan
  • Public information sessions to share back what was heard in previous public engagement, present the preferred fee structure and why, how the fee is calculated and implementation plan and to gather further input on a credit incentive program. 
  • Interim report to Council in May 2025 to present the proposed credit incentive program and property exemption options in advance of the final recommendations.
Final recommendations
  • Council meeting to present and seek approval on the final recommendations including the funding method, proposed fees and implementation plan.