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Who Pays When Pipes Fail?

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Richmond Hill council debated whether residents facing extreme water bills from accidental leaking pipes should qualify for a one-time refund. While some councillors argued for added relief in rare hardship cases, others warned that shifting private plumbing costs onto taxpayers requires clearer data and careful limits.

Richmond Hill council mixed celebration with caution at its February 25 meeting, pairing community-focused announcements with pointed debates over risk, data and who ultimately pays.

Council announcements

Councillor Karen Cilevitz opened with a personal note, wishing her mother a happy 95th birthday.

Mayor David West reported on a recent meeting with Chippewas First Nation Chief Big-Canoe, saying he looks forward to future collaboration.

United Way campaign

Council heard from representatives of the local United Way about its annual workplace campaign. The organization funds social service agencies and is exploring community real estate models to keep services embedded near residents.

Speakers thanked council for promoting fundraising and participating in local events. Mayor West praised staff engagement, including the upcoming Megabike ride in June featuring a 30-seat bicycle.

The discussion underscored broad support for community-building initiatives — alongside a quieter question about accessibility. If City Hall champions participation, ensuring residents across Richmond Hill can reach and afford these events remains part of the equation.

Insurance pool under review

Council then debated joining a municipal insurance pool after Vaughan chose not to participate. Staff pointed to long-running pools in Kitchener-Waterloo and Durham Region, noting no municipalities have withdrawn from those programs over decades.

Councillor Mike Thompson said Vaughan’s departure does not negate potential savings for Richmond Hill and urged council to focus on direct financial impacts to the city.

Councillor Scott Davidson welcomed efforts to control costs.

Councillor Simon Shiu pressed staff on exposure to market forces, reserve protections and exit options. Staff acknowledged that while the pool spreads risk and is projected to accumulate roughly $824,000 over five years, there is no formal backup plan if targets are not met. A five-year commitment would be required.

At Shiu’s request, the treasurer confirmed support for the recommendation. Mayor West argued the pool could help the city avoid higher insurance premiums.

Throughout the exchange, council signaled a consistent priority: reduce costs where possible — but ensure assumptions are backed by solid data before locking into multi-year arrangements.

One-time water leak relief?

A proposed one-time water leak refund program prompted sharper disagreement.

Councillor Carmine Perrelli Chan noted that several Ontario municipalities offer relief for extreme, unexpected leaks that can generate bills of $1,000 or more. Richmond Hill currently offers payment plans but no refund option.

Councillor Tony DiPaola seconded the motion and suggested earlier detection and quicker intervention when leaks occur.

Staff explained that water consumption is monitored monthly, courtesy letters are sent when unusual usage appears, and most high bills result from private plumbing failures. In 2025, 1.2 per cent of accounts made inquiries; only 18 required payment arrangements out of more than 54,000 accounts.

Davidson opposed transferring private plumbing costs onto taxpayers, arguing such cases are rare and not the city’s responsibility.

Thompson cautioned against broad policy changes without clearer reporting on frequency, financial impact and effectiveness of existing remedies. Before altering policy, he said, council should understand how often these cases occur and who would bear the cost.

Shiu supported exploring feasibility, provided additional information is presented and any assistance applies equitably.

Mayor West emphasized that the city purchases water from the region and someone must pay the bill. While expressing sympathy for affected residents, he warned against offloading individual expenses onto the broader public. He also noted that administering a refund program could require additional staff. Council ultimately agreed that a memo — not a full staff report — would return within a month.

By meeting’s end, a pattern had emerged: celebrate community partnerships, collaborate externally and seek efficiencies — but insist on evidence before expanding programs, and weigh carefully whether changes serve the many without burdening them.

(You can find the minutes used to prepare this report here.)

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