Stormwater Utility
Consultation has concluded.
At the March 11, 2024 City Council meeting, Council received the report on the Stormwater Drainage Bylaw update for information and directed Administration, during 2025 budget deliberations, to quantify the cost of stormwater services in the City's budget.
What is the Stormwater System?
Grande Prairie’s stormwater system is responsible for managing runoff water and directing it through a network of infrastructure above and below ground into natural water bodies like Bear Creek. This system is vital for preventing flooding and protecting the environment. Learn more about the City's stormwater system here.
Currently, the City funds, repairs and upgrades the stormwater system through municipal taxes and grants from provincial and federal governments. The total cost of operating the system averages $7.5 - $8.0 million per year.
What is a Stormwater Utility Charge?
A Stormwater Utility Charge, if approved under Bylaw C-1443, would change how the City funds its stormwater system. Instead of relying solely on taxes, this charge would link funding to how much impervious area is on a property. On February 12, 2024, Grande Prairie City Council postponed a decision on the Stormwater Utility Bylaw to allow for additional community consultation and a deeper exploration of funding models.
Alternative Stormwater Utility Models
To aid Council in their decision-making process, City administration was tasked with exploring four alternative models. They are:
- Tiered Model with a Billing Unit Cap
- Flat Fee Model
- Billing Unit Model, No Cap
- Bracket Model
To learn more, a summary of each model is provided below.
1. What is the Tiered Model with a Billing Unit Cap?
A tiered model is one where properties are charged based on impervious area, measured by billing units, and assigned into one of six tiers. The billing unit cap was established to limit any single property's financial burden.
How Are Charges Calculated?
For low density residential properties, the model sets a standard flat charge. For high density residential and nonresidential properties, the charge is based on tiers. Each billing unit represents 150 m2 of impervious area. The maximum number of billing units charged to a property is 100.
What Will You Pay?
- A low density residential property pays $9.28 each month per dwelling unit.
- High density residential and non-residential properties fall into tiers:
- Tier 1 (1 to 4 billing units) pays $23.80/month.
- Tier 2 (5 to 10 billing units) pays $67.42/month.
- Tier 3 (11 to 25 billing units) pays $163.74/month.
- Tier 4 (26 to 50 billing units) pays $337.66/month.
- Tier 5 (51 to 85 billing units) pays $612.52/month.
- Tier 6 (86+ billing units) pays $916.05/month
Advantages:
- Distributes costs based on property impervious area.
- Cap on billing units prevent excessively high charges for any single property.
- Aligns charges more closely with the use of stormwater system.
Disadvantages:
- More complex to understand and administer than flat rate models.
Estimator Tool
Click here to calculate the estimated charge for your property with this model.
2. What is the Flat Fee Model?
A flat fee model charges a fixed charge to properties, regardless of the size, level of development or characteristics of their property. The flat fee model is a straightforward approach to stormwater charges, intended to be easy to understand and manage.
How Are Charges Calculated?
The stormwater utility charge for low density residential, high density residential and non-residential properties is a flat charge. The charge is based on the total cost of the system, divided by the total number of properties charged in the City.
What Will You Pay?
Whether you own a small home or a large commercial space, the flat fee is the same:
- $33.36 per month, or $400.32 annually
Advantages:
- Simple to understand and efficient to administer.
- Ensures predictability in billing for property owners.
- Quick and easy to implement across the city.
Disadvantages:
- Does not account for the impervious area of the property.
- Does not align well with use of stormwater system.
Estimator Tool
Click here to calculate the estimated charge for your property with this model.
3. What is the Billing Unit Model, No Cap?
Properties are charged based on impervious area, measured by billing units. There is no billing unit cap setting an upper limit on the charge.
How Are Charges Calculated?
In this model, low density residential properties pay a flat charge while high-density residential and non-residential properties are charged based on the billing units determined by impervious area, where each billing unit represents 150 m2 of impervious surface. There is no cap to the number of billing units charged.
What Will You Pay?
- Low density residential properties have a fixed monthly charge of $6.85 per dwelling unit.
- Larger properties pay $6.85 for every billing unit, with no upper limit on the number of billing units charged.
Advantages:
- Correlates charges to the amount of impervious area on a property.
Disadvantages:
- Can lead to significantly higher charges for properties with large impervious areas.
- Higher administrative costs and complexity to administer.
Estimator Tool
Click here to calculate the estimated charge for your property with this model.
4. What is the Bracket Model?
The bracket model offers a hybrid approach to stormwater charges, combining a base rate with additional incremental billing unit charges.
How Are Charges Calculated?
For low density residential properties, the model sets a flat charge. For high density residential and non-residential properties, the charge is a tier-based plus an incremental rate for billing units above the base. Properties are assigned a tier using billing units to get the base charge. Each billing unit represents 150 m2 of impervious area.
What Will You Pay?
Low density residential properties will see a monthly charge of $6.85.
High density residential and non-residential properties pay the base rate assigned to their tier, plus an additional fee for each billing unit over their tier's threshold:
- Tier 1 (1 to 60 billing units) pays a base of $10.23/month + a monthly incremental charge of $10.23 for each billing unit over the first.
- Tier 2 (61 to 120 billing units) pays a base of $618.86/month + a monthly incremental charge of $5.11 for each billing unit over the sixty-first.
- Tier 3 (121 to 240 billing units) pays a base of $923.18/month + a monthly incremental charge of $2.56 for each billing unit over the one hundred and twenty-first.
- Tier 4 (241 to 480 billing units) pays a base of $1228.78/month + a monthly incremental charge of $1.28 for each billing unit over the two hundred and forty-first.
- Tier 5 (481 to 960 billing units) pays a base of $1535.01/month + a monthly incremental charge of $0.64 for each billing unit over the four hundred and eighty-first.
- Tier 6 (961 billing units and greater) pays a base of $1841.57/month + a monthly incremental charge of $0.32 for each billing unit over the nine hundred and sixty-first.
Advantages:
- Allows for more granularity in billing.
Disadvantages:
- Complexity in understanding the tier system and incremental charges.
- Higher administrative costs and complexity to administer.
Estimator Tool
Click here to calculate the estimated charge for your property with this model.
View examples of each model below.
Property Type | Assessment Value | Total Impervious Area | Billing Units | Amount no Longer Paid Through Taxes | Tiered Model | Flat Fee Model | Billing Units, No Cap | Bracket Model |
Low Density Residential | $230,000 | - | 1 | $9.30 | $9.28 | $33.36 | $6.85 | $6.85 |
Low Density Residential | $530,000 | - | 1 | $21.43 | $9.28 | $33.36 | $6.85 | $6.85 |
High Density Residential | $1,605,500 | 2,852 | 19 | $64.92 | $163.67 | $33.36 | $130.15 | $194.37 |
High Density Residential | $22,825,300 | 18,204 | 121 | $922.90 | $916.05 | $33.36 | $828.85 | $923.18 |
Non-Residential (Hotel) | $11,273,900 | 12,329 | 82 | $834.64 | $612.52 | $33.36 | $561.70 | $726.17 |
Non-Residential (Church) | $5,804,000 | 18,563 | 124 | $429.69 | $916.05 | $33.36 | $849.40 | $930.86 |
Non-Residential (Industrial - Annexed Area) | $6,294,800 | 32,435 | 216 | $0.00 | $916.05 | $33.36 | $1,479.60 | $1,166.38 |
Non-Residential (Large Industrial) | $71,807,780 | 702,188 | 4681 | $5,316.17 | $916.05 | $33.36 | $32,064.85 | $3,032.29 |
Charges listed are monthly estimates
Public Open House
Residents are invited to two open house sessions to learn more about the proposed models and share their feedback. The sessions take place:
Date: February 27, 2024
Location: Teresa Sargent Hall, Montrose Cultural Centre
Times:
- Morning Session: 11:30 a.m. – 1:30 p.m.
- Evening Session: 4:00 p.m. – 7:00 p.m.
Consultation has concluded.
At the March 11, 2024 City Council meeting, Council received the report on the Stormwater Drainage Bylaw update for information and directed Administration, during 2025 budget deliberations, to quantify the cost of stormwater services in the City's budget.
Please use this space to ask any stormwater management or stormwater utility questions. City administration will review and follow-up to all posted questions.