Newmarket's stormwater charges will rise 118% by 2030 if new plan approved

Annual charges will rise from $46 in 2021 to $91 by 2030

Newmarkettoday.ca
October 22, 2020

Newmarket taxpayers will face a 118 per cent increase in stormwater rates over the next decade if a new plan is approved to provide much needed maintenance, upgrades and replacements to the town's stormwater sewer system.

If the 10-year stormwater infrastructure plan is approved by council, annual stormwater charges will gradually increase from $46.29 in 2021 to $91.60 in 2030, according to a report presented at a special committee of the whole meeting Oct. 19.

Stormwater charges on an average property tax bill, based on a single detached home with an assessment value of $700,000, will increase by $4.21 or 10 per cent next year, another 10 per cent the following year, averaging out to 5 per cent annual increases over the following eight years,

The increase, if approved, would be on top of a proposed 2.99 per cent property tax increase that would cost the average taxpayer $118 more next year.

The town is also bringing back a four per cent increase to water and sewer rates, which it suspended earlier this year at the height of the COVID-19 pandemic, amounting to an increase of about $49 to the average ratepayer.

Newmarket is one of only a few municipalities in Ontario that provides storm sewer charges on a bill separate from the tax bill.

A new stormwater plan will go through a public consultation before being approved by council.

Town of Newmarket treasurer Mike Mayes said the town needs to be more proactive when it comes to maintaining and replacing its stormwater infrastructure. 

"Although Newmarket is good right now, we are not putting enough money away to replace infrastructure down the road," he told NewmarketToday.

"It's going to be a few years, but at some point, we are going to get a big hit (of storm sewers in need of replacement). We could let future generations worry about it, but that's not prudent fiscal management."

The plan would see a closed-circuit camera system installed inside storm sewers that would allow town workers to visually inspect the condition of underground pipes.

As well, the plan would provide for sediment to be cleaned from the bottom of catchment ponds -- something that is overdue, according to a new infrastructure report card.

Eighteen of the ponds used for holding rainwater were rated "very poor" because of how much sediment had built up.

Nine per cent of water mains in the stormwater system were rated "very poor."

The plan would also boost the town's asset replacement fund, which is used to cover the cost of replacing aging infrastructure.

"These enhancements are not like ones for a recreational program where they are 'nice-to-haves," said Councillor Victor Woodhouse at Monday's meeting. "They are not nice-to-have; these will be important going forward and, quite frankly, could save us a significant amount in expenses down the road."

The plan that council is considering is one of three 10-year stormwater infrastructure plans presented to them Monday:

• Option 1: Would maintain the system at current service levels, but would provide funds for dredging the ponds. This option requires a 10 per cent increase to rates next year and in 2022, and further annual increases of five per cent amounting to an 89 per cent increase over 10 years. The average annual stormwater charge would rise to $79.58 by 2030.
• Option 2: Selected by council, and includes the camera system.
• Option 3: Would add improvements to deal with the impacts of climate change, such as flooding in low-lying areas, and would put the system on track to being in regulatory compliance. This option calls for a 55 per cent increase in 2021, up about $23 over this year. By 2030, the average stormwater charge would be $110.40, for an overall increase of 162 per cent.

The third option was dismissed by Mayor John Taylor, who said, "If nothing else, there is an optical insensitivity to the time times we live in, given COVID-19, when you ask for a 55 per cent increase. That's a $23 increase or about a third of the overall increase for 10 years. But still, proceeding with this might be a little insensitive given the times."

Councillor Bob Kwapis said the town will eventually need the upgrades proposed in the third option and suggested that the issue should be reconsidered in the future and that the cost could be spread out more evenly.