Hamilton’s New Stormwater Fee
What Property Owners Need To Know
Starting April 2026, the City of Hamilton will implement a new stormwater fee aimed at creating a more equitable and sustainable approach to funding stormwater services. This change is significant for property owners, as it shifts the funding model from one based on water consumption to one based on the actual impact a property has on the stormwater system.
Why The Change?
Currently, stormwater services in Hamilton are primarily funded through water and wastewater utility revenues, with some contributions from property taxes. This means that properties with high water usage, such as laundromats or restaurants, pay more for stormwater services, even if they don’t contribute significantly to stormwater runoff. Conversely, properties with large impervious surfaces, like parking lots, may contribute substantial runoff but pay less.
The new fee structure addresses this imbalance by charging property owners based on the “load” their property places on the stormwater system, primarily determined by the amount of impervious surface area. This approach aligns with practices in other Ontario municipalities, including Ottawa, Mississauga, Kitchener, and Guelph.
How Will The Fee Be Calculated?
Residential Properties:
Single-Family Detached Homes: Charged a fixed fee of one billing unit. In other Ontario municipalities, this fee typically ranges from $15 to $20 per month.
Townhouses and Duplexes: Charged 0.5 billing units per dwelling unit.
Triplexes to Sixplexes: Charged 0.3 billing units per dwelling unit.
Non-Residential and Large Multi-Residential Properties:
Fees will be based on the actual impervious area of each property, such as rooftops and paved surfaces. The City has measured these areas using aerial photography.
A stormwater fee estimator tool will be available online in spring 2025, allowing property owners to estimate their fees.
Incentive Programs
To encourage responsible stormwater management, the City will introduce a stormwater incentive program:
Stormwater Management Infrastructure Credit: Up to 50% reduction for properties implementing stormwater management infrastructure.
Hamilton Harbour Discharge Credit: Up to 90% reduction for properties discharging directly to Lake Ontario.
Green Space Credit: Automatic credits for properties with significant green space, such as forests and fields. This credit will be applied without the need for an application.
These credits are designed to incentivize property owners to implement measures that reduce stormwater runoff and improve water quality.
Impact on Water/Wastewater Utility Fees
With the implementation of the stormwater fee, wastewater charges will no longer be used to fund stormwater management activities. As a result, wastewater rates will be reduced, and the stormwater fee will appear as a separate line item on utility bills. Properties that currently do not pay for water or wastewater services will start receiving a stormwater utility bill.
Preparing For The Change
For real estate professionals and property owners, it’s essential to understand how this new fee structure may impact property expenses. Reviewing property characteristics, such as impervious surface areas, and exploring eligibility for incentive programs can help mitigate costs. Engaging with the City’s resources and planning for these changes can lead to both environmental benefits and cost savings.
For more detailed information and updates, visit the City of Hamilton’s Stormwater Funding Review page.
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