St. Petersburg residents will likely see their municipal utility bills increase by 8-9% as administrators continue grappling with increased infrastructure costs exacerbated by an unprecedented hurricane season.
Developers could see their sewer capacity fees soar from $600 to $1,000, a 66.67% spike. The proposed stormwater rate for fiscal year 2026, which begins Oct. 1, will increase by an average of 17.5%.
Administrators presented the proposed utility rate program to city council members for the first time Thursday at a Budget, Finance and Taxation Committee meeting. The increases do not reflect funding for the highly-touted St. Pete Agile Resiliency Plan (SPAR), which would cause stormwater rates to increase between 20% and 75% in 2027 instead of the planned 15%.
“Let’s just call SPAR what it is – it is a buzzword for taking the $600 million that’s in the stormwater improvement plan and making it a reality,” said Councilmember Brandi Gabbard. “I want to get out of buzzwords and hoping and get to a place where we have a real conversation about what we are willing to really do now. Because we were willing to do it last year for one small area of our city.”
Gabbard was referring to the administration’s willingness to cover $130 million in infrastructure upgrades for a new Tampa Bay Rays stadium and the surrounding Historic Gas Plant District. Residents have questioned why officials could not do that for the rest of the city.
Public works administrator Claude Tankersley called SPAR aspirational. “We are trying to shoot for the stars to get this work done,” he said.
Gabbard said the “50-50 scenario” of equally funding SPAR through debt financing and utility fees is “not sustainable for people.” Stormwater rates would increase by 75% in 2027 before a more modest 7.5% in 2028.
Councilmember Lisset Hanewicz noted the committee had a similar conversation in 2024, before officials voted on the Gas Plant’s redevelopment, regarding how St. Petersburg would pay for $6.8 billion in capital improvement projects (CIP) – water resources and infrastructure improvements account for 73% – over the next 30 years. “The numbers were staggering,” she said.
“Yes, there are investments being made in our system, but not at the level we need and that the public would like to see,” Hanewicz added. “And frankly, sometimes it does take a hurricane for people to realize, OK, this needs to be done, and it needs to be done now.”
She believes residents are ready for officials to discuss issuing debt to finance long-overdue infrastructure upgrades. Hanewicz said the amount should exceed $130 million.
She also stressed the importance of clarifying what projects would receive funding. Hanewicz called that a “much bigger conversation” than what was presented at the meeting “because of what people experienced last year.”
Council Chair Copley Gerdes said the city would have used Intown Community Redevelopment Area (CRA) tax revenues to pay for the Gas Plant’s infrastructure. While he would consider using those resources for stormwater projects in corresponding districts, he opposed moving away from the recently implemented 50% financing and 50% rate revenue model and incurring additional debt.
“We went 20 years with no rate increases,” Gerdes continued. “We are, unfortunately, paying the piper for that. So, I’m struggling to get away from something we worked really hard to get to again. That doesn’t mean I’m absolutely against it; I’m just very sensitive to it.”
Under the proposed plan, which excludes SPAR funding, typical residents would see their potable water, wastewater, stormwater and sanitation bills increase by 7.25%, 7.25%, 17.5% and 7%, respectively. That would raise the average monthly bill, without reclaimed water, from $149.09 to $161.84.
The proposed utility rate program exceeds the administration’s previous projections. Officials also planned to gradually increase sewer capacity (water closet) fees from $350 in 2023 to $1,000.
The fee per restroom increased to $393.75 in 2024 and jumped 52.38% to $600 in fiscal year 2025. However, instead of another 33.33% hike to $800 in 2026, administrators now plan to charge the full $1,000.
Councilmember Richie Floyd has previously voiced his displeasure over the incremental increases and celebrated the accelerated implementation. He also advocated for a fee analysis to ensure “we’re not putting a burden on ratepayers for development.”
Floyd noted that St. Petersburg’s sewer capacity fee is less than half of what Hillsborough County charges. “It’s pretty clear that we are able to justify a lot more,” he said.
“I don’t want ratepayers to subsidize new development – at all.”
Floyd also supported a bond issuance discussion “as soon as possible.” The committee will discuss the measure further at a July 10 meeting.
This content provided in partnership with StPeteCatalyst.com
