Rainwater levy applies to port areas that are not connected to sewerage

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Steve Salmons, CEO of the Windsor Port Authority, called Windsor’s new storm sewer rate plan unfair and is prepared to fight attempts to charge the organization $300,001 annually, noting that most of the port’s 60 acres is not connected to the system.

Salmons said the Port Authority’s groundwater is dammed, treated and released directly back into the Detroit River.

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“Our argument is that we appreciate the purpose of your program and agree that if we use the city’s services, we should pay for the services we receive,” Salmons said.

“The answer from a conversation with the advisor is that the municipality has taken the position out of fairness that everyone pays. I can tell you that the Port Authority does not believe it is fair to pay $300,001 for services it does not receive.”

The proposal will go to the city council on Monday and will come into effect on January 1 if it is approved. The plan aims to set a more realistic price for stormwater drainage.

“Every homeowner in the city will see a decrease in their overall water bill,” Windsor Mayor Drew Dilkens said.

“Today, homeowners pay disproportionate costs to maintain and operate the stormwater system. A place like Home Depot, Costco…when it rains, they contribute significantly to the stormwater in the system.

“They’re not paying the actual costs of managing that stormwater.”

Currently, homeowners pay 55 percent of the sewer bill, but under the new plan that percentage drops to 44 percent.

The city estimates that a $10 million increase will be needed for sewer services by 2025, regardless of which billing plan is used.

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“Ultimately, the size of any future increases will be determined by the city council and our priorities,” Dilkens said.

Salmons said the Port Authority supports the user payment system but will use all available legal remedies to challenge the imposition of the new fees if they involve services he believes his organization is not receiving.

As a federal body, the city cannot directly tax the Port Authority. It would have to apply to Public Services Procurement Canada (PSPC) to request payment in lieu of taxes.

“It’s either a tax or it’s a service,” said Salmons, who says the Port Authority pays about $750,000 in property taxes annually.

“If it’s a tax, go through PSPC and prove your case. When it comes to service, you have an obligation and obligation to demonstrate the service we receive for your fixed fee.”

The city responds that everyone benefits if streets and basements do not flood, regardless of whether they are connected to the sewer system.

Salmons added that other private port landowners, such as Windsor Salt, ADM and Morton Terminal, which are not connected to the city’s sewer system, are “concerned and confused as to why they are being dragged into this.”

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“They are facing about $250,000 each,” Salmons said.

Salmons said the new surcharge wipes out the Port Authority’s profit of just over $300,000 last year. He also found little comfort in the proposed credit/incentive package the city is offering to property owners.

“How generous is it to only charge you half for something you don’t use or need?” Salmon said.

The Windsor-Essex Regional Chamber of Commerce, Windsor Construction Association and Heavy Construction Association all expressed concern about the size of the increases, which will mainly impact larger businesses or those with extensive parking lots.

Dan Krutsch, president of the Heavy Construction Association, raised concerns about the methodology for calculating fees.

“This basis of my concern is my understanding that this region is different from the rest of the province,” said Krutsch, founder and chairman of Landmark Engineering Ltd.

“The clay acts as a paving, water does not soak in quickly and runoff occurs.

“It would be better if they measured total surface drainage and then gave a higher weighting to impervious ground cover. It would also spread the payment of fees more efficiently.”

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Jim Lyons, executive director of the Windsor Construction Association, expressed concern that the higher fees will make Windsor less attractive for investment.

“At a time when we are trying to attract development, these numbers are alarming,” Lyons said. “We don’t want to deviate too far from the rest of the province.”

The city’s deputy treasurer/financial planning Tony Ardovini said under the new plan, Windsor’s average combined sewer surcharges would be $15 below provincial averages. The combined average bill for property taxes and storm and sewer fees would be $1,851 lower than the Ontario average.

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