Water Billing Modernization Project

Water and Wastewater Billing Update - As of April 2026

Understanding Your New Water Bill

The Town has recently mailed out water bills, and we understand there has been some confusion as we transition to a new billing system. We’d like to help clarify what’s changed and what you can expect moving forward.

What’s changed?

Water and wastewater billing has now been fully consolidated into one bill. Previously, some wastewater charges appeared on your property tax bill. These have now been moved to your water bill.

As a result:

• Your water bill may appear higher than in previous years
• Your property tax bill will be lower moving forward, as those wastewater charges are no longer included there

Why are costs different?

There are a few reasons you may notice a change in your bill:

• The 2025 Town budget included an 8% increase to water and wastewater rates. The majority of the increase relates to regional treatment cost increases.
• Wastewater fixed charges have been moved from the tax bill to the water bill. To help illustrate this change, a sample property tax bill is available in the Documents tab on the right side of this page.
• The billing model has shifted from a 50/50 fixed vs. variable split to a 40/60 model.

This new model:

• Lowers fixed charges (set costs that don’t change)
• Increases variable charges (based on how much water you use)

This means you now have more control over your bill, as using less water can help reduce your overall cost.

How your bill is structured

Your current bill now includes four line items:

• Water Fixed Charge
• Wastewater Fixed Charge (NEW on this bill)
• Water Consumption Charge
• Wastewater Consumption Charge

Billing frequency

• Water bills are now issued every two months.

A reminder about your last bill under the old system

Water and wastewater bills covering usage up to December 31, 2025, were issued under the previous billing structure. These were the final bills under the old system.

While those bills remain accurate for that time period, Grimsby has now fully transitioned to the new system as of March 2026.

Important note about your last 2025 bill

You may notice that the dates in the top right corner of your last 2025 bill are incorrect. Please refer to the meter reading dates shown in the highlighted section of your bill, as these reflect the actual period you are being billed for.

Estimate Your Future Water Bills

Residents can estimate future water bills using the Town’s online calculator:
https://www.grimsby.ca/living-in/property-taxes/water-calculator/

To use the calculator, you’ll need to know your water meter size. Most residential properties have a meter smaller than one inch, typically 5/8” or 3/4”. Non-residential customers can confirm meter size by contacting the Town.

Looking Ahead

The Town will continue exploring e-billing options and online tools that allow customers to monitor their account and water consumption more easily.

Project Background

Current Billing Practices for Water and Wastewater Services

Every time we turn on the tap or flush the toilet, we count on clean water being there and wastewater being carried away safely. Behind the scenes, it takes a lot of equipment, treatment plants, and dedicated staff to keep everything running smoothly. To cover these costs, municipalities charge customers for the water and wastewater services they use.

For many years, Grimsby has used a water bill to charge customers for the supply of water and a special area rate, otherwise known as a Wastewater Tax Levy, to bill customers for wastewater treatment. A Wastewater Levy is found on your tax bill, and it represents the property owner's share of the Town-wide costs to keep Grimsby's wastewater system running safely and efficiently.

Over the past few years, the Town has been working to modernize water and wastewater billing. In 2023, changes were introduced, splitting wastewater charges 50/50 between the tax and water bill. Charges on the tax bill are calculated by multiplying the assessed value of the property by a special area rate (Wastewater Levy). Variable charges on the water bill are based on individual water usage.

Rate Structure Changes

Town Council approved changes to eliminate the Wastewater Levy effective January 2026 and charge customers using meter size ratios for fixed water and wastewater costs. Customers will now find all of their water and wastewater costs in one place - the water bill. These changes will be effective for January 2026 water and wastewater consumption.

A Better Way to Bill Water and Wastewater

The Town is introducing a new billing structure that’s more equitable, transparent, and consistent with practices used across Ontario.

The current model can be difficult to reconcile, with wastewater collection costs shared between the property tax bill and water bill. This split makes it difficult to understand the true cost of water and wastewater services.

At present, everyone pays the same fixed water charge, whether it’s a small household or a large business, regardless of how much water they use or the size of their water meter. Some properties pay additional fixed charges for extra residential or commercial units tied to the same account, but this isn't the most equitable way to distribute fixed water costs.

The new rate structure simplifies billing and ensures fairness by linking water and wastewater charges to meter size and actual water use.

Customers with the same meter size and consumption will pay the same amount – a fair, consistent, and easy-to-understand approach for everyone.

Billing by Meter Sizes - How Does it Work?

The best practice for billing water and wastewater costs involves the use of meter size ratios, a method commonly adopted by municipalities across Ontario. The smallest meter size represents the base charge for how larger meters are billed proportionately. The size of a meter is relative to the capacity to consume or flow water. Larger meters place greater demand on the system and are therefore billed at a higher ratio than smaller meters.

Most residential meters are less than one inch in size. The table below outlines how costs are allocated based on meter size.

The wastewater tax levy will be eliminated for 2026 and future years. To estimate how much you will save on your tax bill, look for the Wastewater Levy line on your current 2025 final tax bill.

Visit the FAQ section on the right side of the page for more information about the Wastewater Levy and an example of a current bill.

Fixed Charges vs Variable Charges

Your bill is made up of Fixed charges that are payable regardless of the amount of water you use and Variable charges that are based on how much water you use.

We’ve updated our cost recovery model to give you more control. Previously split evenly at 50/50, we’ve shifted to a 40% fixed and 60% variable structure.

By lowering fixed costs and increasing the variable rate, your bill is now more directly tied to your usage. This means you have a greater opportunity to reduce your costs simply by using less water.

Billing Timeline Changes

Previously, all billing areas in the Town (A, B, C, and D) were billed three times per year, with each bill covering four months of consumption. A final bill for all areas was issued at the end of January 2026. This bill covered up to the end of December 2025. Fixed charges were prorated based on the number of months billed.

In 2026, all areas will be on the same billing schedule with bills being issued every other month. More frequent billing will allow customers to better manage their budget and monitor their water consumption. It will also help identify potential leaks sooner, saving customers money and reducing water towards greater environmental responsibility. These changes have been made possible, in part, by the 2025 Meter Exchange Project, which resulted in the exchange of approximately 2,100 outdated touchpad meters, enabling remote data collection and meter reads for all areas of the Town.

Beginning in March 2026, all customers in Town will be on the same billing schedule and receive a bill every other month. All water customers will be on the same billing schedule going forward.

Water Bill Calculator

Wondering how the new water rates might affect your bill? Try our easy-to-use Water Billing Calculator to estimate your future costs based on your typical water use.

Water Conservation

Customers can make a difference in the amount of their water bill by making changes in the way that they use water, reducing consumption and keeping a close watch for potential leaks.

Saving water is also good for the environment, reducing water loss and making best use of precious resources. Visit https://www.grimsby.ca/living-in/water-services/water-billing/water-conservation-and-leak-detection/ for more information.