Homeowners may experience a new adjustment in how their water bills are calculated. This change follows an earlier program approved by the council in 2024, which, contrary to promises of reduced bills for the majority of homeowners, actually resulted in increases. To address this issue, the council approved a remedy last year and has now set rates that the city claims will ensure most homeowners receive water bills below the 2024 levels for comparable water usage this year.
However, budget documents reveal that this move has caused a deferral of sewer enhancement work planned for 2026, leading to a potential necessity for rate hikes to align with Windsor’s sewer master plan. Mayor Drew Dilkens has issued a directive urging staff to propose changes to the program that prioritize clear and transparent information for all customers to manage costs effectively. The directive also aims to ensure equitable stormwater fee contributions from large contributors, continued savings for residential customers, and adequate funds to cover all stormwater expenses and infrastructure investments outlined in the city’s sewer master plan.
During the recent budget meeting, Dilkens emphasized the need for simplification, transparency, cost savings for residents, and improved processes for businesses within the program. He expressed concerns about the complexities and frustrations arising from the program’s implementation, which was initially intended to be beneficial.
The alterations to water bills stem from property owners now being separately billed for wastewater and stormwater management following the 2024 council-approved changes. Described as a “fair share” model by the city, this shift transfers costs from homeowners to commercial or industrial property owners. The stormwater fees are now calculated based on the size of impermeable areas on a property, such as asphalt-covered surfaces, which contribute runoff to the sewer system.
After the initial program failed to deliver the expected homeowner savings in early 2025, the council made adjustments and established rates based on the commitment that most homeowners’ water bills would be lower than in 2024. Consequently, there is a shortfall in the stormwater and wastewater budget due to increased staffing expenses and inflationary pressures. To maintain the budget and ensure essential work is completed, the city plans to utilize $5.5 million from a $19.5 million reserve fund, causing the postponement of some sewer enhancement projects from 2026 to 2027.
City officials caution that relying on reserves for transitioning to the new program is unsustainable if the goal is to continue funding the city’s sewer master plan. The long-term strategy aims to address the challenges posed by climate change-induced severe storms, which have led to flooding in thousands of basements in recent years. The budget document emphasizes the need for reasonable annual increases to cover the necessary capital and operating expenses for wastewater and stormwater facilities.
City Treasurer Janice Guthrie suggests exploring options like securing grant funding from higher levels of government or reassessing the master plan to address future financial needs effectively. Despite the current ability to manage budgets with existing reserves and approved rates, sustainable financial strategies are crucial for the city’s infrastructure plans.
Regarding the frustrations with the current program, Dilkens advocates for adjustments that enable businesses to control costs while ensuring continued savings for residents. Property owners, such as Joe Mikhail, have criticized the program, citing increased costs that have led to vacant properties and financial challenges. Mikhail’s experiences exemplify the significant cost implications of the new stormwater fee system, particularly for properties with extensive impermeable surfaces.
In response, the city offers a credit system to property owners who implement measures to reduce stormwater runoff, aiming to alleviate some of the financial burden. However, challenges persist, with property owners facing high expenses and bureaucratic hurdles in securing credits. Dilkens acknowledges these issues and highlights the importance of maintaining a business-friendly environment while addressing property owners’ concerns.
City staff are expected to present a report to the council for review and approval, focusing on potential adjustments to the program. Dilkens stresses the need to avoid discouraging businesses and appreciates the efforts of staff in addressing property owners’ challenges. The timeline for the report’s submission to the council remains uncertain.