Commercial Activity Fixed Fee

For many years, Short Term Rentals on Silver Star Mountain have been increasing in their numbers and availability. Throughout North America, governments and municipalities have all found themselves in need of providing regulations to help integrate these short-term rentals into our existing communities. Some of the regulatory framework these organizations are introducing are;

  • the requirement of short-term rental business licenses,

  • the requirement of the home being a primary residence,

  • rezoning of properties to accommodate short-term rentals,

  • the introduction of hotel taxes for short-term rentals,

  • increased rates for utility services

While we all recognize the positive impact these rentals can have on the operation of Silver Star Mountain as a tourist destination, it is crucial that we address the unique demands these rentals place upon our utility.

It is important to highlight that many of the residential properties at Silver Star Mountain are available for short-term rental. These properties are being operated as commercial rental properties and thereby have a larger number of people staying in them than what is generally provisioned for in residential wastewater design. For example;

A property on the Knoll that was built in 1992 has the zoning designation from RDNO as “R4 - Residential - Single Dwelling & Suite”. Most properties on the Knoll with a R4 zoning have a grandfathered pillow capacity of 9.5 pillows. As part of our pillow survey, Silverhawk was able to easily find the property on a rental website that was advertising it as having 5 bedrooms and 6 bathrooms, and the capability to sleep 29 people.

CAFF House and Drops Image.jpg

The amount of wastewater generated by a rental property such as the example above can be up to three times that of a single-family home that does not offer short-term rentals. These properties can no longer be solely considered residential use. This increased demand placed on the utility will ultimately require Silverhawk Utilities to further upgrade the sewer infrastructure and treatment plant.

To divert the cost of these improvements onto the individual properties placing the increased demand on the utility, starting in the 2020 service year, where a property is designated as Commercial Activity through the short-term rental of the building, or portion of, they will be subject to a "Commercial Activity Fixed Fee". This Commercial Activity Fixed Fee will be charged per dwelling unit to properties on Silver Star Mountain that are involved in any aspect of advertising or facilitating the advertising of their unit for short-term rentals.

For the 2020 Service Year, the Commercial Activity Fixed Fee will be an additional $500.00 added to the Annual Residential Fixed Fee for any Dwelling Unit engaged in renting their property for short-term or seasonal rentals. All properties currently designated as Commercial (Hotels, Condos, etc) will be assessed on a case-by-case basis.

Back in 2012, Silverhawk Utilities was required to add a robust nutrient removal process to the treatment plant as mandated by the Ministry of Environment. As a result, it was necessary to introduce the Capital Upgrade Reimbursement Fund (CURF) to all ratepayers as the cost wasn’t due to specific properties but rather the entirety of Silver Star Mountain. Implementing this Commercial Activity Fixed Fee only for properties that are engaged in short-term rentals will place more of the burden of the increased demand upon those specific properties. This should then help relieve homeowners that do not commercially rent out their properties from the cost of this excess burden on the sewer system.

In addition, a portion of these fees will also be used to help lower our base rates for sewer services in the future, which all property owners will benefit from.