St. Petersburg residents can expect 8–9% utility rate increases as the city confronts escalating infrastructure costs, compounded by the aftermath of a historic hurricane season.

City administrators presented their proposed utility rate adjustments for fiscal year 2026 during Thursday’s Budget, Finance, and Taxation Committee meeting. If approved, the changes would raise typical monthly utility bills — including water, wastewater, stormwater, and sanitation — from $149.09 to $161.84. Stormwater fees alone would jump by an average of 17.5%.

Developers would also feel the impact. The city plans to raise sewer capacity fees (often charged per restroom) from $600 to $1,000 — a 66.7% increase and faster than originally planned.

However, the new rates do not include funding for the city’s $600 million St. Pete Agile Resiliency (SPAR) plan. If implemented, SPAR could push stormwater rates up by as much as 75% in 2027 — five times the current projection — followed by a 7.5% increase in 2028.

“Let’s just call SPAR what it is — a buzzword for making the stormwater improvement plan a reality,” said Councilmember Brandi Gabbard. “We need to move beyond the buzzwords and commit to real action — not just for one neighborhood, but for the entire city.”

Gabbard pointed to the city’s recent $130 million infrastructure investment in support of the new Tampa Bay Rays stadium and Gas Plant District redevelopment as a contrast to the slower progress on citywide upgrades.

Public Works Administrator Claude Tankersley called the SPAR proposal aspirational. “We are trying to shoot for the stars to get this work done,” he said.

But Gabbard criticized the plan to fund SPAR with a 50/50 split between debt and utility rates. “That’s not sustainable for people,” she warned.

Councilmember Lisset Hanewicz echoed concerns about long-term infrastructure funding, noting the city is facing a $6.8 billion capital improvement need over the next 30 years — with water and sewer projects making up nearly three-quarters of the total.

“Yes, we’re investing, but it’s not enough,” Hanewicz said. “And sometimes it takes a hurricane to make people realize it needs to happen — and it needs to happen now.”

Hanewicz said she believes the public is ready to back a larger bond issuance to jumpstart infrastructure work — beyond the $130 million recently committed to the Gas Plant project. But she stressed the need to clearly identify which projects would be funded.

Council Chair Copley Gerdes urged caution, arguing the city only recently established the current 50/50 funding model and warning against taking on too much new debt. “We went 20 years without rate increases,” he said. “Now we’re catching up, and it’s painful.”

Still, Councilmember Richie Floyd expressed support for accelerating sewer capacity fee hikes and exploring bonds to avoid saddling ratepayers with the full burden. He noted the city’s current $600 fee is far below Hillsborough County’s rates.

“It’s pretty clear we could justify charging more,” Floyd said. “And I don’t want ratepayers subsidizing new development — at all.”

The committee is expected to continue discussions at its next meeting on July 10.

Follow the St. Pete-Clearwater Sun on Facebook, Instagram, Threads, Google, & X

(Image credit: Spectrum News/Josh Rojas)

PIE-Sun.com: local St. Pete-Clearwater news