Stormwater Fee

Common measures and practices that qualify for credits include (but are not limited to):

• Stormwater ponds that are designed to hold and slowly release stormwater to prevent flooding
• Green roofs that absorb rainwater, reducing runoff and improving water quality
• Permeable pavement that allows rainwater to soak into the ground, reducing surface runoff
• Raingardens and bioswales designed to capture and filter rainwater
• Oil/grit separators and other water quality treatments that remove pollutants like sediment, oil, and grease before stormwater is discharged
• Cisterns and rainwater harvesting systems that store runoff for later use

The City of Hamilton conducted a Stormwater Funding Review in 2023 to assess a fairer way to pay for stormwater management. The key findings showed:

• Hard surfaces increase runoff, putting more strain on stormwater infrastructure.
• Some properties contribute more runoff but pay less, while others contribute less but pay more under the current system. 
• A stormwater fee – where properties pay based on their stormwater impacts – provides a more fair, equitable and sustainable way to fund critical infrastructure and services. 

As part of the review, staff also consulted with the public on a financial incentive program. The consultation period included public information sessions and a survey. 

Learn more about the Stormwater Funding Review

Switching to a stormwater fee will provide a more equitable and sustainable way to fund stormwater management in the City of Hamilton. This new approach ensures that costs are distributed based on the amount of runoff a property generates, rather than on how much City water is used. This change will:

• Be fairer for everyone – Properties will contribute based on their impact, meaning those with more hard surfaces (like parking lots and large rooftops) will pay more than those with less. 
• Be a dedicated funding source for critical infrastructure, projects and action plans – A stable funding source will help the City 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.
• Encourage sustainable practices – Incentives and credits will reward property owners who take steps to reduce stormwater runoff, such as detention ponds, permeable pavement, or rain gardens. 

Learn more about how the City manages stormwater

We know that some people with large properties are worried about how the new stormwater fee will affect them. That’s why the City will be offering a Green Space credit. This credit will help to reduce the stormwater fee for properties that have a large amount of green space, like forests and fields. This credit will be applied automatically to the stormwater fee without the need for a credit application.

The City invests millions of dollars per year in stormwater services for rural parts of Hamilton, which provides valuable benefits to the rural community:  

• City staff inspect, fix and clean assets like culverts, stormwater ponds and ditches. They also reshape ditches to better catch dirt and mud and address invasive species. 
• The City takes care of natural watercourses, like streams and wetlands, inspecting, cleaning them of debris and sediment, and fixing places where the water is eroding the land. 
• The City addresses water quality issues from pollutants that include high levels of nutrients like phosphorus. 
• The City also contributes millions of dollars each year to Conservation Authorities which address watershed management issues in rural and urban areas.

Right now, much of this work is paid for through City water and wastewater rates. But some rural and agricultural property owners do not pay into this funding system. The City’s stormwater fee ensures that all property owners contribute. This way, everyone helps pay for managing stormwater, whether you live in the urban centre, a suburban neighbourhood or one of Hamilton’s rural communities.

A rural property with just a house (e.g., no commercial, industrial or agricultural buildings) will be charged as a residential property and will pay the same as any other house in the city. An agricultural property with just outbuildings like barns and greenhouses will be treated as non-residential and will be charged based on how much of the land is covered by hard surfaces (like roads, parking areas, walkways and roofs) and how much is green space. A property that is undeveloped (like fields or gardens), with no hard surfaces will not be charged any fee.

Since many agricultural properties have both a house and outbuildings, the stormwater fee for those properties will be calculated based on the impervious area of the property, however many of these properties will be eligible for the Green Space Credit. 

Like other properties in Hamilton, residential-only rural properties would be eligible for the Rain Ready Rebate program offered through Green Venture, and agricultural properties would be eligible for the approved Green Space Credit.

The City’s new stormwater fee is designed with fairness and simplicity in mind. There are over 120,000 single-family homes in Hamilton – this makes up 84% of all properties. Charging each residential property owner a different fee based on the actual measured amount of hard surfaces on their property (like driveways and rooftops) would require significant time and effort to calculate and monitor. Additional staffing resources would be needed to administer this approach.  After careful analysis, we found that the City can provide a lower stormwater fee for everyone by avoiding the administrative expenses that would be required to calculate and continually monitor individual property rates. Therefore, to keep things both fair and simple, all single-family residential properties will share the same rate.

Multi-family residential properties typically have a smaller footprint than single-family detached homes, so they will be charged less. The rate for townhouses and duplexes will be half of the rate of a single-family detached home, while the rate for triplexes, fourplexes, five-plexes and six-plexes will be approximately one-third of a single-family detached home. These categories will be determined using Municipal Property Assessment Corporation (MPAC) property assessments.