Funding stormwater repairs

Photo: Contributed

Property owners may see a new line on their property taxes in the coming years.

The addition would set aside money to deal with aging stormwater infrastructure, but how exactly to fund the account is still up for debate.

Cory Sivell with Urban Systems gave a presentation to council on Tuesday about funding the city’s stormwater network.

Sivell told council the city owns $74 million in stormwater infrastructure, but he added that there’s a funding gap to ensure proper maintenance of the stormwater system. That gap ranges from $100,000 to $1 million, depending on the risk the city is willing to take.

The majority of that is driven by capital expenses, including repairs and maintenance, while operating expenses would only cost the city between $150,000 to $200,000.

If the city were to continue on its current path, Sivell warned of failing infrastructure, flooding and water backing up into homes.

Several different options to fund the stormwater fund were presented, including the status quo, where that money would come out of the city’s general fund; a levy, which would come as a separate line on property tax notices; an addition to the parcel tax, which like a levy, would come as a separate line on the parcel tax notice; a user fee or a stormwater utility.

Sivell said the parcel tax or levy would be ideal for transparency in showing where the money is going, the fact that the money would go into a specific fund for stormwater infrastructure and that it would be based on the individual's ability to pay.

However, those options wouldn't guarantee future councils couldn't skim funds from the stormwater reserve – an issue a stormwater utility or user fee would solve. But those options come with their own drawbacks: deciding what constitutes use of stormwater, and how to allocate those fees.

Acting CAO Mitch Moroziuk said a levy or parcel tax would initially be revenue neutral, but in subsequent years, it would begin to increase, adding that residents should expect to see raises in property taxes incoming to deal with the overall infrastructure deficit as one of the ways the city can increase revenue.

The issue is set to be part of budget talks in late January, where the city will decide whether or not to approve a $40,000 study on the issue to determine how best to fund a stormwater reserve.