ST. PETERSBURG, Fla. — St. Petersburg residents could see their utility bills increase again this fall as city leaders consider a new round of rate hikes aimed at covering rising costs and paying for upgrades to the city’s aging water and stormwater infrastructure.
The proposed fiscal year 2027 rates are scheduled for a first reading before the St. Petersburg City Council on Thursday, less than a week before the city’s mayoral election.
If approved, the new rates would take effect Oct. 1. according to city documents, based on monthly water usage of 3,500 gallons and a Tier 2 stormwater property.
The proposed increases vary by utility. The city is seeking a 7.5% revenue increase for drinking water, 6.5% for wastewater, 9.75% for reclaimed water, 8.5% for stormwater and 6% for sanitation.
City officials say the increases are based on the city’s annual utility rate study, which examines the operating and capital expenses of St. Petersburg’s five public utility systems.
In a memo to city council members, St. Pete Mayor Ken Welch wrote that this year’s study generally aligns with previously forecasted rates, although overall costs are slightly higher than originally anticipated because of inflation affecting operating and construction expenses. The stormwater proposal has also been scaled back from what the city initially considered. According to the mayor’s memo, the city temporarily changed the way it plans to finance stormwater projects, shifting the cash-to-debt ratio from 50/50 to 30/70.
Councilmember Corey Givens Jr. says the city will have to make a decision on how to come up with the money needed to restore the aging systems.
“I think the hurricanes had a lot to do with it, it’s not the only reason,” Givens said. “There are certainly a lot of factors that have gone into us having to make this tough decision. There’s a lot of upgrades that need to happen to our aging and crumbling infrastructure and somebody has to pay for it.”
The proposed increases come after St. Petersburg residents already saw utility rates rise last year and as the city considers how to pay for significant investments in its water, sewer and stormwater systems.
St. Petersburg resident Jason Scott is urging city leaders to look for other sources of money before increasing residents’ bills.
“I just really want the City Council to explore other creative measures, may it be the SPAR program or removing PILOTs, which is payment in lieu of taxes, from our water utility bill and reinvesting that back into the water utility and solve these long-term issues now,” Scott said.
Thursday’s meeting represents the first formal reading of the proposed FY2027 utility rates and will include an opportunity for public comment.
If the measures advance, a formal public hearing and final vote are scheduled for Aug. 27.