Thrive
City council hopes to minimize stormwater rate increase
Public Works Administrator Claude Tankersley said officials now expect to receive disaster recovery funding from the U.S. Department of Housing and Urban Development (HUD) “sooner than we had anticipated.”
St. Petersburg’s leadership continues searching for ways to fund much-needed stormwater projects without overburdening residents who already struggle to keep pace with soaring living costs.
Administrators presented the latest utility rate scenarios to city council members at their Aug. 7 meeting. They will hold a public hearing on the proposed changes, which include increasing stormwater rates by 17.5%, Thursday afternoon.
However, a new proposal would increase stormwater rates by 22.6% in fiscal year 2026. The additional revenue, and $32 million in utility bonds, would provide the city with $64 million to complete capital improvement and St. Pete Agile Resiliency (SPAR) projects.
“Nobody likes having this conversation about rates and where they need to go,” said Council Chair Copley Gerdes. “I’m really struggling to go from a 17.5% to a 22.6% increase. That’s where my big struggle is on this.”
The average customer would see their monthly municipal utility bill increase by 8% to 10% under the administration’s recommended rate schedule. Officials would allocate $10 million to SPAR “pre-planning work” in the upcoming fiscal year, which begins Oct. 1.
Many city council members would like to accelerate those projects due to increasing environmental threats. Mayor Ken Welch announced SPAR and its $614 million in stormwater initiatives in the aftermath of an unprecedented hurricane season.
Program funding remains elusive. In July, officials discussed letting voters decide whether officials will issue general obligation bonds to help pay for the projects.
A new property tax would finance the debt issuance if approved through a referendum in November 2026. “It’s going to be a hard pill to swallow,” said Councilmember Lisset Hanewicz.
“There’s only so much capacity for the rate payers.”
Hanewicz, like Gerdes and others, preferred capping the stormwater rate increase at 17.5%. Those revenues, combined with $25 million in grant funding, would provide $57 million for capital improvement and SPAR projects in FY26.
Public Works Administrator Claude Tankersley said officials now expect to receive disaster recovery funding from the U.S. Department of Housing and Urban Development (HUD) “sooner than we had anticipated.” Councilmember Brandi Gabbard questioned if the city has the “bandwidth” to utilize that money “tomorrow versus over six years.”
Capital Improvements Director Brejesh Prayman noted that the council recently approved hiring outside firms to assist with the planning and permitting process for stormwater projects.
Prayman explained that stormwater projects typically require additional regulatory approval from state and federal agencies. “We will continue to push as hard as we can to start these projects early,” he said.
Gabbard said the city could combine the $25 million from HUD with the scenario that includes $32 million in utility bonds and a 22.6% stormwater rate hike. “I’m just feeling like we’re at a place where we just have to make what I think is a relatively low investment over time for a better return on that investment.”
Gabbard believes vulnerable residents would prefer to pay an additional $1.16 on their monthly bill to help fund projects that could potentially keep their homes from flooding. She is not “ready to give up on us moving something forward more aggressively today, with the actual utility rates.”
Councilmember Gina Driscoll, like most of her colleagues, preferred the 17.5% increase with the $25 million in grant funding going to the most “shovel-ready” projects. She believes residents will not consider a debt issuance if “they aren’t seeing enough going on now.”
Councilmember Corey Givens Jr. said developers should shoulder more of the burden. Administrators plan to increase sewer capacity fees from $600 to $1,000 per restroom.
However, those revenues can only support sewer projects. Tankersley declined to opine on any other potential impact fees the city could impose on developers during the utility rate discussion.
Givens said administrators should consider selling parcels within the Historic Gas Plant District to fund infrastructure improvements. “I would rather not burden taxpayers and burden those who have the money.”
City officials will hold a first reading of ordinances related to utility rate changes at 5 p.m. Thursday. The final public hearing is Sept. 4.
