Stormwater Service Fee - Financing, Implementation and Lessons Learned

To address the water quality and environmental protection concerns of its citizens, the City of Guelph has embarked upon a number of initiatives involving all of its water utilities and affecting both groundwater and surface water resources. Two key studies were completed that identified the infrastructure funding needs required to support the City's long-term stormwater management program, namely: - City of Guelph Stormwater Management Master Plan (AMEC, February 2012): Twenty-five priority projects for quantity control were recommended at an estimated cost of $15.6 million to be implemented over the next ten years, with an additional $45.7 million in long term improvements. Another $5.6 million in quality control projects had been identified. - City of Guelph Sustainable Infrastructure Report (AECOM, September 2012): Stormwater management system assets received an 'F' grade on the Infrastructure Scorecard, and funding for stormwater assets was found to be at only 41 per cent of the estimated sustainable annual funding level. Continued underfunding of the City's stormwater management program would widen the gap between future needs and available funding. Further, continuing the status quo posed a threat by not addressing the risk of flooding/erosion damage or the negative environmental impacts on waterways and groundwater supplies. To deal with these concerns, City staff undertook a Stormwater Funding Study that began in August 2013. The overall goal of this study was to identify the most appropriate revenue source to support the City's stormwater management program. This paper dives into the details of and shows that, at the recommended 2020 rate, the Stormwater funding levels will be at approximately 70% of the annual sustainable funding target to address the city's needs, including existing infrastructure backlog.