Stormwater Charge as a
Revenue Source
Town of Newmarket
Agenda
• Introduction to Stormwater
• Newmarket’s Catalyst
• Newmarket’s Model
– Sort
– Verify
– Charge
• Project Management Lessons Learned
Introduction to Stormwater
Stormwater 101
What is stormwater?
Impervious Areas
Stormwater Runoff
Natural Areas
9% Impervious
Suburban Properties
44% Impervious
Urban Properties
88% Impervious
Low Runoff
Natural
Area Sample Property
Med Runoff
Sample Property
Suburban
Property
High Prorperty
Runoff Sample Property
Urban
Stormwater Management Infrastructure
StormwaterManagement
ManagementInfrastructure
Stormwater
Infrastructure
Stormwater Stormwater
Management
Newmarket’s
Assets
Infrastructure
Asset Name
Estimated Unit of
Quantity Measure
Real Assets
Land
130
Pipe Assets
Storm Sewers
225
Catch Basins
7,278
Stormwater Manholes
3,450
Outlets to receiving waters
355
Pond Assets
Stormwater Management Facilities
53
Watercourse Assets
Watercourses, streams, rivers, and
55
creeks
Acres
Historical
Cost
$ 12,264,376
Kilometers
Number
$ 63,919,809
Number
Number
Number
$ 9,847,092
Kilometers
N/A
Estimated 2017 Funding Level
Current Level of Funding
Operations: $510,000 per year
Capital: $1,350,000 per year
Total: $1,860,000 per year
Share of Tax Bill: 2.8%
Share of Water Bill: 1%
Newmarket’s Catalyst
Why Newmarket is Adopting a
Stormwater Charge
The Perfect Storm
Aging Assets
Flood Prevention
Environmental
Protection
Environmental
Protection
Aging Assets
Aging Assets
Projected
Replacement
Replacement Value
Percentage
1 - 10 Years
$ 17,017,100
15%
11 - 20 Years
$3,992,900
4%
21 - 30 Years
$ -
0%
31 - 40 Years
$ 219,300
0%
41 - 50 Years
$ 1,670,400
1%
51 + Years
$ 90,939,100
80%
Total
$ 113,839,000
100%
Flood Prevention
Flood Prevention
Frequency of Severe Storms
Then
Now
0
10
20
Source: Insurance Bureau of Canada
30
40
How to Weather the Storm:
Learning From Others
Stormwater
Charge
Stormwater
Management Rate
Newmarket’s Model
How to calculate charge
Rate Principles
Stormwater Charge Spectrum
Simple
Fair
Flat Rate
Classification of your property
or
Prorated Rate
Impervious area of your property
Hybrid Model
AKA Development Intensity Model
Size of Property x Group Rate = Charge
Low runoff group
9% Impervious
Medium runoff group
44% Impervious
High runoff group
88% Impervious
Public Feedback
• Press Release
• Facebook Ad
• Hosted Public Information
Centre
• Present at Newmarket Open
House
Three Step Process
Sort
Verify
Charge
Collect Data
Key Themes
• MPAC data
– Assessment
• GIS Data
– Zoning
28
Organize Data by Property
Property
Greenspace
1
2
3
4
No
No
Yes
No
Excess and
Single
Multi
Vacant Land Residential Residential
$
$
$
$ 800,000
$
- $
$ 300,000 $
$ 700,000 $
$
- $
-
Industrial Commercial
$
$
$
$ 1,400,000
$ 9,000,000
$
$
$
-
Evaluate Data by Property
If
If value is
If value is
If value is
If value is
If value is
Greenspace greater than greater than greater than greater than greater than
equals “Yes” 50% of total 80% of total 80% of total commercial Industrial
Property
Greenspace
1
2
3
4
0
0
1
0
Excess and
Single
Multi
Vacant Land Residential Residential
0
0
0
0
0
1
0
0
0
0
0
0
Industrial Commercial
0
0
0
1
1
0
0
0
Property
Greenspace
1
2
3
4
No
No
Yes
No
Excess and
Single
Multi
Vacant Land Residential Residential
$
$
$
$ 800,000
$
- $
$ 300,000 $
$ 700,000 $
$
- $
-
Industrial Commercial
$
$
$
$ 1,400,000
$ 9,000,000
$
$
$
-
If
If value is
If value is
If value is
If value is
If value is
Greenspace greater than greater than greater than greater than greater than
equals “Yes” 50% of total 80% of total 80% of total Commercial Industrial
Property
Greenspace
1
2
3
4
0
0
1
0
Excess and
Single
Multi
Vacant Land Residential Residential
0
0
0
0
0
1
0
0
Evaluate Left to Right
0
0
0
0
Industrial Commercial
0
0
0
1
1
0
0
0
Property
Greenspace
1
2
3
4
No
No
Yes
No
Excess and
Single
Multi
Vacant Land Residential Residential
$
$
$
$ 800,000
$
- $
$ 300,000 $
$ 700,000 $
$
- $
-
Industrial Commercial
$
$
$
$ 1,400,000
$ 9,000,000
$
$
$
-
If
If value is
If value is
If value is
If value is
If value is
Greenspace greater than greater than greater than greater than greater than
equals “Yes” 50% of total 80% of total 80% of total Commercial Industrial
Property
Greenspace
1
2
3
4
0
0
1
0
Excess and
Single
Multi
Vacant Land Residential Residential
0
0
0
0
0
1
0
0
Evaluate Left to Right
0
0
0
0
Industrial Commercial
0
0
0
1
1
0
0
0
Property
Greenspace
1
2
3
4
No
No
Yes
No
Excess and
Single
Multi
Vacant Land Residential Residential
$
$
$
$ 800,000
$
- $
$ 300,000 $
$ 700,000 $
$
- $
-
Industrial Commercial
$
$
$
$ 1,400,000
$ 9,000,000
$
$
$
-
If
If value is
If value is
If value is
If value is
If value is
Greenspace greater than greater than greater than greater than greater than
equals “Yes” 50% of total 80% of total 80% of total Commercial Industrial
Property
Greenspace
1
2
3
4
0
0
1
0
Excess and
Single
Multi
Vacant Land Residential Residential
0
0
0
0
0
1
0
0
Evaluate Left to Right
0
0
0
0
Industrial Commercial
0
0
0
1
1
0
0
0
Property
Greenspace
1
2
3
4
No
No
Yes
No
Excess and
Single
Multi
Vacant Land Residential Residential
$
$
$
$ 800,000
$
- $
$ 300,000 $
$ 700,000 $
$
- $
-
Industrial Commercial
$
$
$
$ 1,400,000
$ 9,000,000
$
$
$
-
If
If value is
If value is
If value is
If value is
If value is
Greenspace greater than greater than greater than greater than greater than
equals “Yes” 50% of total 80% of total 80% of total Commercial Industrial
Property
Greenspace
1
2
3
4
0
0
1
0
Excess and
Single
Multi
Vacant Land Residential Residential
0
0
0
0
0
1
0
0
Evaluate Left to Right
0
0
0
0
Industrial Commercial
0
0
0
1
1
0
0
0
Property
Group
1
2
3
4
High
Medium
Low
High
Low runoff group
Medium runoff group
High runoff group
Three Step Process
Sort
Verify
Charge
Low Runoff
Sample Property
Random
Sampling
Sampled 100 properties of each group
Random Sampling
40
35
30
25
20
15
10
5
0
0%
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
High
Low
Medium
High
Low
Runoff Level
Observed Average
Imperviousness
Low
9.0%
Medium
44.0%
High
88.0%
Three Step Process
Sort
Verify
Charge
Property
Group
Area
1
2
3
4
High
Medium
Low
High
1,000
600
3,000
1,500
Average
Percent
Impervious
0.88
0.44
0.09
0.88
Stormwater
Runoff
Assessment
880
264
270
1320
Total funding requirement / Total Stormwater runoff assessment = Stormwater
rate
Stormwater rate x Average percent impervious = Group stormwater rate
Size of Property x Group
Stormwater Rate = Stormwater Bill
Equivalent to
Assessment x Class Tax Rate =
Tax Bill
43
$$$
Stormwater Charge Calculator
Calculator Output
Size of Property x Group
Stormwater Rate = Stormwater Bill
Property
Group
Area
1
2
3
4
High
Medium
Low
High
1,000
600
3,000
1,500
Group
Stormwater
Rate
$0.15
$0.08
$0.01
$0.15
Stormwater
Charge
$150
$48
$30
$225
SWM Charge - High
369.48
1,440.97
Recap Video
Estimated Average Stormwater Charge
Rate Per Square
Meter
Average Size in
Square Meters
Average Annual
Fee
Low
Medium
High
$ 0.01
$ 0.08
$ 0.15
14,200
600
3,720
$ 180
$ 45
$ 560
Impact of Implementing a Stormwater
Charge
Low
Medium
High
Total Annual Average Municipal
Costs without Stormwater
Charge
2,368
2,804
10,778
Total Annual Average Municipal
Costs with Stormwater Charge
2,488
2,790
11,070
Change in Total Annual
Average Municipal Costs ($)
$120
-$14
$292
Change in Total Annual
Average Municipal Costs (%)
5.06%
-0.51%
2.71%
Project Management Lessons
Learned
Tips on How to Implement a
Stormwater Charge
Project Timeline
Stormwater charge was first
recommended in 2002
Current project started in
mid-2015
Projected to be implemented
in 2017
Project Timeline
Set Principles
and a Plan
Ask for
Feedback
Develop
Charge
Series of Easy Tasks
Project Management Tips
1. Adapt to the resources (skills, data, software) that you
have on hand.
2. Make clear the balance of your principles for setting
charge structure (fairness and simplicity)
3. Great is good enough, don’t get caught up on being
perfect.
4. Communicate, Communicate, Communicate
5. Build a strong cross-departmental team, no one knows or
can do everything.
Key Takeaway
If you just walked in / tuned in, this
is what you should know
Key Takeaways
There is general public acceptance of a
stormwater charge.
Municipal colleagues are willing to share
their experiences
Newmarket developed a model that uses
data common to Ontario municipalities,
that calculates charges fairly and simply.
Question Period
Kevin Yaraskavitch
Financial Business Analyst
Town on Newmarket
[email protected]
(905) 716-4906