Heavy rainfall in Red Deer leading to flooding on June 23, 2022. (rdnewsNOW/ Alessia Proietti)

By Alessia Proietti

infrastructure 50-100 years old

Red Deer considers creating stormwater utility fee as system ages

Mar 20, 2024 | 10:24 AM

The City’s stormwater system may one day be funded as a separate fee on Red Deerians’ utility bills.

At city council’s meeting on Monday, administration presented a report outlining the next steps regarding the creation of a Stormwater Utility.

The City’s Stormwater system, which collects water from precipitation and is interconnected to the pipes of other utilities, is an approximately $300 million depreciated value asset, with some nearing the 100-year mark in older neighbourhoods. Officials say the actual replacement value is estimated in the billions of dollars.

Stormwater infrastructure includes curbs and ditches, catch basins, sewers, manholes, outfalls, dry and wet ponds, wetlands, and lift stations.

The City is responsible to ensure any stormwater drainage generated from catchment areas causes minimal impact, danger and damage to people, property and the environment but rain and snowmelts receive minimal treatment before reentering into the river.

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City of Red Deer Storm Network Diagram (City of Red Deer website)

The City spends roughly $7 million annually on maintenance and repairs, funded from the tax base. The system has also typically been installed and funded by the developer of new neighbourhoods.

Work had been completed from 2014-2017 to draft various policies on the matter.

The City says increased maintenance of cleaning and inspection of stormwater assets may have helped prevent the 2022 floods in Red Deer.

During Budget 2024 deliberations, council considered the creation of a Stormwater Utility, as seen in other municipalities of various sizes across Canada and the United States, to be debated on March 18.

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City officials confirmed that if a Stormwater utility is created, it will take six to ten years to transition and for a capital reserve to build up to sustain this work.

They add that regardless of the model chosen, the Stormwater system will require a projected $14 million annual investment in combined capital and operating expense in the near future, which would lead to a seven per cent tax increase over time if the status quo is maintained.

City council decided to defer the decision of creating a Stormwater Utility to the date when they will discuss the Utility Governance Project. The project is currently underway, beginning in 2022, and aims to inform decision-making relating to the future of various city utilities, including electric, water, and waste. Focusing on water as one resource in the next few months, with an undetermined date of completion yet, city officials say it is a natural fit to have the stormwater discussion be part of the entire water management picture.

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