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In a joint meeting today, the Agriculture and Rural Affairs Committee and the Environment and Climate Change Committee approved a new water rate structure that would come into effect in 2027. The new structure would result in more equitably distributed costs for water, wastewater and stormwater while keeping water bills affordable for Ottawa residents, and economically competitive compared to other cities in Ontario.
Most ratepayers are expected to experience minimal change to their water bills as a result of the new structure. The average residential property would see a decrease of two per cent, and the average multi-residential property would see no change. The average non-residential property would see an increase of five per cent. In rural areas, vacant land properties and some farms would begin contributing to stormwater costs, while most rural residential properties would see a decrease in their current stormwater fees. The new water rate structure would be revenue-neutral for the City.
For stormwater rates, the City would transition to billing based on impervious surface area (total paved or other hard surface area). This approach provides a more accurate measure of the demand that a given property places on the City's stormwater system and promotes climate resiliency by encouraging property owners to reduce impervious surfaces. This would apply in urban areas as well as within the villages of Manotick, Richmond and Carp, given the impervious surface area and stormwater pipe density in those villages is comparable to that of urban or suburban neighborhoods.
All other properties within the rural boundary would no longer pay a stormwater charge and would instead contribute to a special area levy to specifically fund rural roadside ditch maintenance. Typical rural properties would see a decrease in stormwater costs. The levy would distribute the cost of maintaining roadside ditches fairly among rural property owners that benefit from these drainage systems, ensuring transparent and locally responsive funding in rural areas.
Oversight of the ditch maintenance levy would rest with the Agriculture and Rural Affairs Committee to align with rural needs. Culvert funding would be moved to the general tax levy, ensuring all properties citywide contribute to culvert maintenance. These changes will ensure that urban, suburban and rural properties pay for the infrastructure they use, rather than subsidizing infrastructure they don’t use.
The City would seek to recover more fixed costs for drinking water and wastewater services through fixed fees. Fixed costs are those needed to maintain the City’s extensive infrastructure. They do not change based on consumption levels by system users. While they account for 90 per cent of costs to maintain the system, the City currently recovers only 20 per cent of revenue through fixed fees. Increasing the proportion of total revenues recovered from fixed fees to 35 per cent would ensure stable funding and better reflect the true costs of maintaining the system. There would still be an incentive for users to conserve water to reduce their overall water bill. The new structure would also rebalance the increased fixed cost recovery across property types and decrease the proportion of a water bill that is fixed for low consumption users.
The City would adopt a new model for drinking water and wastewater rates, with separate tiers for residential, multi-residential and non-residential properties. This model provides a more balanced approach to both fixed and variable charges. It also better reflects actual usage patterns, ensures fairness across all property types and continues to promote water conservation.
Earlier in the day, the Environment and Climate Change Committee met separately and approved updates to the Water By-law. This by-law regulates the municipal water supply, ensuring the City’s water distribution system is safe, reliable and sustainable.
Under the updated by-law, private developments would be required to install water meters at the perimeter of their property to reduce the risk of water loss through leaks or unauthorized use. The City would offer a Leak Assistance Program for eligible single-unit residential account owners. Each property owner could use the program one time to repay, interest-free, a large and unexpected water bill resulting from a leak.
The City would apply a new $567 service fee for same-day cancelled and rescheduled drinking water service appointments, to reflect the costs of time and resources. The City would apply a bill correction fee of $52 to recover the additional administrative costs of reversing doubled water bills associated with denied meter access. Newly proposed fees and any anticipated revenues will be included in the annual budget process.
The Committee also approved a revised inspection program for septic systems located near municipal wells. The program aims to meet legislative requirements outlined in local Source Protection Plan policies, which help safeguard drinking water quality and public health. For areas near municipal supply wells, septic systems and septic holding tanks are considered a significant threat to drinking water sources. Policies require that septic systems in the most vulnerable areas near municipal wells be inspected every five years.
Council approved a two-year inspection program in Greely in 2015, and the revised permanent inspection program will be implemented citywide. Inspections would be conducted according to an ongoing five-year schedule, with a budget of $40,000 per year. At present, the program only applies to 128 private septic systems in Greely, but new septic systems installed within the most vulnerable areas will be included in the future. The inspection program will be delivered by the Rideau Valley Conservation Authority and the Ottawa Septic System Office. Landowners would be responsible for any required repairs or mitigation measures.
Items approved at this meeting will rise to Council on Wednesday, May 28.
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Most ratepayers are expected to experience minimal change to their water bills as a result of the new structure. The average residential property would see a decrease of two per cent, and the average multi-residential property would see no change. The average non-residential property would see an increase of five per cent. In rural areas, vacant land properties and some farms would begin contributing to stormwater costs, while most rural residential properties would see a decrease in their current stormwater fees. The new water rate structure would be revenue-neutral for the City.
For stormwater rates, the City would transition to billing based on impervious surface area (total paved or other hard surface area). This approach provides a more accurate measure of the demand that a given property places on the City's stormwater system and promotes climate resiliency by encouraging property owners to reduce impervious surfaces. This would apply in urban areas as well as within the villages of Manotick, Richmond and Carp, given the impervious surface area and stormwater pipe density in those villages is comparable to that of urban or suburban neighborhoods.
All other properties within the rural boundary would no longer pay a stormwater charge and would instead contribute to a special area levy to specifically fund rural roadside ditch maintenance. Typical rural properties would see a decrease in stormwater costs. The levy would distribute the cost of maintaining roadside ditches fairly among rural property owners that benefit from these drainage systems, ensuring transparent and locally responsive funding in rural areas.
Oversight of the ditch maintenance levy would rest with the Agriculture and Rural Affairs Committee to align with rural needs. Culvert funding would be moved to the general tax levy, ensuring all properties citywide contribute to culvert maintenance. These changes will ensure that urban, suburban and rural properties pay for the infrastructure they use, rather than subsidizing infrastructure they don’t use.
The City would seek to recover more fixed costs for drinking water and wastewater services through fixed fees. Fixed costs are those needed to maintain the City’s extensive infrastructure. They do not change based on consumption levels by system users. While they account for 90 per cent of costs to maintain the system, the City currently recovers only 20 per cent of revenue through fixed fees. Increasing the proportion of total revenues recovered from fixed fees to 35 per cent would ensure stable funding and better reflect the true costs of maintaining the system. There would still be an incentive for users to conserve water to reduce their overall water bill. The new structure would also rebalance the increased fixed cost recovery across property types and decrease the proportion of a water bill that is fixed for low consumption users.
The City would adopt a new model for drinking water and wastewater rates, with separate tiers for residential, multi-residential and non-residential properties. This model provides a more balanced approach to both fixed and variable charges. It also better reflects actual usage patterns, ensures fairness across all property types and continues to promote water conservation.
Earlier in the day, the Environment and Climate Change Committee met separately and approved updates to the Water By-law. This by-law regulates the municipal water supply, ensuring the City’s water distribution system is safe, reliable and sustainable.
Under the updated by-law, private developments would be required to install water meters at the perimeter of their property to reduce the risk of water loss through leaks or unauthorized use. The City would offer a Leak Assistance Program for eligible single-unit residential account owners. Each property owner could use the program one time to repay, interest-free, a large and unexpected water bill resulting from a leak.
The City would apply a new $567 service fee for same-day cancelled and rescheduled drinking water service appointments, to reflect the costs of time and resources. The City would apply a bill correction fee of $52 to recover the additional administrative costs of reversing doubled water bills associated with denied meter access. Newly proposed fees and any anticipated revenues will be included in the annual budget process.
The Committee also approved a revised inspection program for septic systems located near municipal wells. The program aims to meet legislative requirements outlined in local Source Protection Plan policies, which help safeguard drinking water quality and public health. For areas near municipal supply wells, septic systems and septic holding tanks are considered a significant threat to drinking water sources. Policies require that septic systems in the most vulnerable areas near municipal wells be inspected every five years.
Council approved a two-year inspection program in Greely in 2015, and the revised permanent inspection program will be implemented citywide. Inspections would be conducted according to an ongoing five-year schedule, with a budget of $40,000 per year. At present, the program only applies to 128 private septic systems in Greely, but new septic systems installed within the most vulnerable areas will be included in the future. The inspection program will be delivered by the Rideau Valley Conservation Authority and the Ottawa Septic System Office. Landowners would be responsible for any required repairs or mitigation measures.
Items approved at this meeting will rise to Council on Wednesday, May 28.
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