Homeowners could be facing a new method of calculating their water bills following recent developments. Initially approved in 2024, a program that was expected to lower bills for most homeowners ended up increasing them. In response, the council approved corrective measures last year and has now established rates to ensure that the majority of homeowners will see lower water bills this year compared to 2024 levels for similar water usage.
However, this adjustment has resulted in a deferral of sewer enhancement projects planned for 2026, prompting concerns about potential rate hikes to adhere to Windsor’s sewer master plan. Mayor Drew Dilkens has issued a directive urging staff to present program modifications to the council. These changes aim to provide clear and transparent information to all customers, particularly in managing costs, ensuring fair storm water fee distribution, maintaining residential savings, and generating sufficient funds for storm water expenses as outlined in the city’s sewer master plan.
During the budget meeting this year, Mayor Dilkens emphasized the need for simplification, transparency, cost savings for residents, and improved business convenience in the revised program. The mayor expressed frustration over the complexities and challenges faced in implementing the program that was originally intended to be beneficial.
The shift in water billing occurred post-2024 council approval, where property owners began receiving separate bills for waste water and storm water management. Described as a “fair share” model by the city, this change aimed to transfer costs from homeowners to commercial or industrial property owners. Storm water fees are now based on the size of impermeable areas on a property, such as asphalt surfaces, due to water runoff entering the sewer system.
Following the initial program’s discrepancies in early 2025, adjustments were made by the city council to align rates with the commitment that most homeowners’ water bills would decrease compared to 2024. Consequently, there arose a shortfall in the storm water and wastewater budget, attributed to rising costs from increased staffing expenses and inflationary pressures. To bridge this gap, the city will utilize $5.5 million from a reserve fund of $19.5 million to sustain the budget and ensure essential work is completed, leading to the rescheduling of certain sewer enhancement projects to 2027.
Budget documents caution against sustained reliance on reserves for transitioning to the new program to uphold the sewer master plan. The plan, valued at $5 billion, was established after severe rainfall events in 2016 and 2017 caused numerous basement floods, with future projections indicating more frequent and severe storms due to climate change. The budget highlights the necessity for annual increases to cover capital and operational costs for wastewater and storm water facilities.
City Treasurer Janice Guthrie proposed exploring alternative funding sources, such as grants from higher government levels or reassessing the master plan to ensure long-term financial viability. She reassured the council that current reserves are adequate for managing previously approved budgets. Mayor Dilkens stressed the importance of balancing cost-effectiveness for businesses while ensuring residential savings, addressing concerns raised by property owners like Joe Mikhail, who have experienced financial challenges under the new billing system.
Mikhail, a commercial property owner, expressed dissatisfaction with the increased costs, leading to vacant properties and financial burdens for tenants. He cited specific examples of cost escalation due to the storm water fee structure. Despite the city offering a credit system for property owners reducing storm water runoff, challenges persist, with some property owners investing significant sums in engineering reports to apply for credits without satisfactory outcomes.
Mayor Dilkens acknowledged the struggles faced by property owners and emphasized the need to avoid discouraging businesses. City staff will present a report to the council for consideration, aiming to address these issues and enhance the program’s effectiveness. The timeline for this report’s submission to the council remains uncertain.