City Council has unanimously approved a new stormwater rate that will see Windsor homeowners pay less and business owners with large properties pay more.
Under the new calculation, the rate is based on the amount of impervious area on a property, not water consumption.
An impervious area is defined as an area that can't absorb water, such as parking lots or other paved areas.
The city says impervious surfaces contribute to more water runoff into the sewer and stormwater system, yet non-residential users currently pay a smaller contribution to the overall sewer surcharge revenue compared to residential properties.
Large commercial property owners, like malls, big box stores, and other properties with large paved areas, could see bills substantially increase under the new system.
When the rate change takes effect on Jan. 1, 2025, the storm water fee will be administered to property owners through the ENWIN utility bill and will be shown as a separate line item to provide the breakdown between sanitary sewer and stormwater sewer surcharges.
Windsor Mayor Drew Dilkens says the good news is that this is all about equity and fairness.
"So residents will actually pay less on their ENWIN bill when this plan is implemented because right now they are paying too much for the coverage of stormwater; now we're going to bring Home Depot and Costco and people with large parking lots on board to pay their fair share, which will be a net reduction for residents," he says.
According to a report from administration, the average residential property owner will realize a savings of up to $73 on their overall wastewater and stormwater fees.
Dilkens says the review of this has been going on since 2018, but he believes they may have to fine tune the system once they see how it works.
The city will offer credit of up to 40 per cent to property owners who can prove they directly discharge their stormwater into the Detroit River or Lake St. Clair and are without a connection to a municipal sewer.
Dilkens says knowing that there is a credit system available for businesses as they construct new parking lots, this is the time they will implement the tools to get the maximum credit.
"I am sure that there are many businesses that are now looking at how they can implement some of the collection systems in their parking lot to help apply for a credit and reduce their bills as well," he says.
The fee will be billed monthly, similar to the current billing frequency for sanitary surcharge and electricity.
Windsor Port Authority CEO Steve Salmons told Monday's meeting of council that the plan will see the authority hit with an annual fee of $300,001, up from a current bill of $300, which includes the credit being offered by the city.
He argued that the port should not be included because it contributes next to nothing to the stormwater system, is not connected to it, and all stormwater at the port is released directly back into the Detroit River.
Salmons says the authority will review the decision to see what options they have to challenge the decision.