User pay financing of stormwater management: A case-study in Ottawa-Carleton, Ontario

Stormwater management upgrade and maintenance costs in the province of Ontario are significant. As capital grant programs decline, municipalities are exploring alternative means for financing the abatement of stormwater quantity and quality problems. User pay financing represents one such option. The economic, institutional and legal issues related to implementing user pay financing of stormwater management in Ontario are addressed using the Regional Municipality of Ottawa-Carleton (RMOC) as a case-study. The paper reviews the experience with user pay stormwater management programs in Canada and the USA, and recent stormwater issues and financing needs in the RMOC. The presented spreadsheet rate model is based on stormwater quantity and quality considerations and best management practices (BMPs) for various land-use categories. The modelling results vary depending on the inclusion or exemption of certain land-use categories and whether BMPs are implemented. Preliminary results indicate the monthly stormwater user charges are comparable with those charged in USA programs. In Ontario, existing statutes provide the enabling legislation for stormwater user charges, and there are no legal or regulatory barriers to implementing them. However, program we start-up costs and public perception could be significant obstacles to instituting user charges.