St. Petersburg residents will see stormwater rates climb another 17.5% in October, following a 25% increase last year. Many want developers to shoulder more of the cost for long-overdue infrastructure improvements, but city officials say impact fees won’t arrive until at least 2027.

At Thursday’s final public hearing on utility rates, several speakers urged the city to adopt stormwater-specific impact fees, which are already in place in other Florida communities. City Capital Improvements Director Brejesh Prayman said leaders are “moving very aggressively” on that front, but state restrictions continue to delay progress.

“The State of Florida can preempt us from doing things, period,” Councilmember Lisset Hanewicz said. “It’s almost like every time you try to solve an issue, you talk to legal, and they tell you that you can’t do it.”

Senate Bill 180 limits new local development regulations after disasters, affecting site plan reviews, permitting, and construction moratoriums. While stormwater-specific fees are held up, sewer capacity fees will rise sharply—from $600 to $1,000 per restroom connection.

Developers such as Mack Feldman of Feldman Equities say the increase won’t derail most projects, though it will squeeze affordable housing more than luxury condos. He suggested discounts for workforce housing, while noting that high-value developments downtown already boost city finances through added tax revenue.

Even so, officials say funding still falls far short. The stormwater master plan outlines more than $1 billion in projects over the next three decades, requiring $50 million annually—well above the $30 million currently invested. Hanewicz said the city’s water system, if rebuilt at the current pace, wouldn’t be entirely replaced until the year 2329.

Another possible funding option is a general obligation bond, which voters could decide on in November 2026. That would raise property taxes to pay for resiliency projects, but the timing and politics remain uncertain.

Despite the concerns, council members approved the utility rate increases on Thursday. Beginning Oct. 1, the average St. Petersburg household will see its overall bill rise 8% to 10%.

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