What Is The New Stormwater Funding Model?
Starting in April 2026, the City will implement a stormwater funding fee. At that time, properties will be charged based on the load (or use) they place on the stormwater system.
Paying for stormwater management through a stormwater fee, also referred to as a utility, is similar to how the City funds its water and wastewater programs, and it is becoming more common in Ontario and across North America. Other municipalities that have successfully implemented a stormwater fee include Kitchener, Waterloo, Ottawa, Guelph, Brampton and Mississauga.
Stormwater rates will be determined by Council at the end of 2025 and applied in 2026 through the stormwater fee. Once rates are determined, property owners will be able to see their stormwater fee using a new online tool.
Currently the City spends approximately $56 million per year on its stormwater program (which includes $9 million of contributions to the local Conservation Authorities funded from property taxes).
Currently, stormwater and drainage services are mostly paid for through the City’s water and wastewater utility revenues, with some funding coming from property taxes. This means the amount of money a property owner contributes to stormwater services is mostly based on the amount of City drinking water used, not how much stormwater runs off their property. Properties such as parking lots with no water or sewer connection do not currently pay for stormwater services despite the amount of stormwater which runs off their site to be managed by the City’s stormwater system.
This is why the City is introducing a stormwater fee. With the stormwater fee, property owners will be charged based on the load (or use) they place on the stormwater system. When this new fee is implemented, wastewater charges will be reduced as they will no longer be used to fund stormwater management activities, and the stormwater fee will be broken out as a separate line item on utility bills. Properties who currently do not pay for water or wastewater will start receiving a stormwater utility bill.
This new stormwater fee will:
- Ensure the City adheres to Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure, which requires municipalities to have sustainable funding mechanisms for key assets.
- Be a dedicated funding source for projects to reduce flooding, remove stormwater from the combined sewer system, improve the quality of natural water bodies that receive stormwater runoff, and adapt to a changing climate.
- Support projects within the City of Hamilton’s Watershed Action Plan to improve our watersheds and the Hamilton Harbour conditions.
Stormwater Incentive Program
This unique, ‘made in Hamilton’ incentive program includes a multi-stream credit program for industrial, commercial, institutional, agricultural and multi-residential properties with greater than six units:
- Stormwater Management Infrastructure Credit
- Hamilton Harbour Discharge Credit
- Green Space Credit
Single-family residential and multi-residential properties with six or fewer units will have access to programs that provide a variety of discounts, subsidies, and advisory services for implementing stormwater management measures that support the natural water balance and natural environment.
Hamilton’s Stormwater Incentive Program encourages responsible stormwater management while considering different property types and their impact on the environment and the City’s stormwater system.