Changes to the Storm Drainage Charge

Introduction
Background on storm drainage
Why would the Storm Drainage Charge apply to my property if there is not a storm sewer directly in front of my property?
What does the Storm Drainage Charge fund?
Why do I have to pay the Storm Drainage Charge on my water bill? Shouldn't taxes be charged on the municipal tax bill?
How will property owners be affected by this change?
What are the criteria to be exempt from the Storm Drainage Charge?

Introduction

At its October 18, 2004 meeting, London City Council approved changes to the way the City applies exemptions to storm drainage charges (Sewer System Charge By-law ). Changes to the by-law were enacted on December 6, 2004. There are 96,000 water customers located in London's urbanized area, of which 14,000 are exempt from the Storm Drainage Charge.  The changes recognize that all properties benefiting from the City's municipal drainage system should contribute to the costs of maintaining, repairing and replacing the system.

Under the previous by-law's interpretation, if there was not a storm sewer directly in front of a property then that property was exempt from the Storm Drainage Charge. While historically there has not been a requirement to construct storm sewers in front of every property, most properties benefit from the municipal drainage system (i.e. overflow to a storm sewer, ditch, drain or watercourse), which must be managed and maintained.

To ensure all properties benefiting from the municipal drainage system are contributing to the costs of operating, maintaining and improving the system, since 2005 they have been subject to the Storm Drainage Charge. In general, most properties - with very few exceptions -- located within the City of London's urbanized area are included.

Properties in the non-urbanized parts of the City are affected, as they do not benefit from storm sewer management infrastructure. Storm sewer runoff from these properties flows to designated municipal drains, which are maintained under the Drainage Act.

Background on Storm Drainage

Drainage is often required to collect runoff from rainfall, snowmelt or any type of precipitation. While some water will infiltrate or percolate into the ground, a great deal needs to be managed.

Storm drainage is managed through various storm water management systems:

• overland flow, along swales, roadways, sidewalks etc.
• channels, ditches, streams, rivers and other watercourses
• piped systems (storm or combined sewers)
• storm water management facilities

Why would the Storm Drainage Charge apply to my property if there is not a storm sewer directly in front of my property?

If your property is located within the urbanized area of the City, storm runoff from your property is being managed by some or all of the storm water systems that are in place (see above). Having all benefiting property owners contribute to charge is a more equitable way of funding the costs of providing this service.

What does the Storm Drainage Charge fund?

 

The revenue from the Storm Drainage Charge funds replacement, repairs and improvements of:

 

• the storm sewer pipe system
• all other municipal drainage systems
• facilities for storm water management systems
• erosion control programs related to the drainage and river systems in the City
• upkeep and repairs to the Springbank Dam

 

This revenue also funds system improvements to address flooding in the City and partial funding of programs that provide homeowner subsidies to address flooding concerns.

 

Why do I have to pay the Storm Drainage charge on my water bill? Should taxes Not be charged on the municipal tax bill?

• Sanitary sewer system and storm drainage charges are fees and charges for the provision of sanitary sewerage and storm sewerage services under Part XII of the Municipal Act.
• User pay charges for these services is a more fair and equitable way of assessing these charges than on the basis of property assessment.
• The Storm Drainage Charge is NOT a charge based on water consumption, but is a flat rate charge for residential, commercial and institutional customers and is charged on a land area basis for industrial customers.

How will property owners be affected?

• If you're currently paying the Storm Drainage Charge on your London Hydro billing, you will continue to pay the same charge.
• Properties that were from this charge prior to 2005 started paying this charge in 2005. Properties affected are located within the urbanized area of the City and not serviced by a designated Municipal Drain.
• Properties outside the Urban Growth Boundary or ones that are serviced by a Municipal Drain designated under the Drainage Act continue to be exempt from the Storm Drainage Charge. This is because properties serviced by a designated Municipal Drain pay for the cost of maintenance and capital costs for work relating to the drain.

Financial Implications:

Customer Class	2010 Charges
Residential	$11.65/month
Commercial	$14.07/month
Institutional	$11.24/month
Institutional over 600,000 m3	$11.24/month
Industrial	$1,170.39/hectare/year
Industrial over 600,000 m3 and under 1,200,000 m3	$995.01/hectare/year
Industrial over 1,200,000 m3	$995.01/hectare/year

What are the criteria to be exempt from the Storm Drainage Charge?

Customers are exempt from the storm sewer service charge where:

• The property serviced is outside the urban growth boundary.
• The property is drained by a Municipal Drain for which costs are assessed from time to time for construction or maintenance of the drain under the Drainage Act.
• The water meter account is for a bulk water meter for a duplex, triplex, fourplex or bulk metered townhouse where the individual meters are assessed the storm sewer service charge.
• The service is to specific properties owned by the Upper Thames River Conservation Authority or the Kettle Creek Conservation Authority.