St. Pete considers utility rate hikes to offset inflation, maintain infrastructure

ST. PETERSBURG, Fla. - St. Petersburg residents could soon see higher monthly utility bills as city leaders consider rate adjustments to keep up with rising operational costs.

St. Petersburg utility rate increase

What we know:

Staff went over the possible changes at a city council meeting on Thursday. The city is reviewing water, wastewater, reclaimed water, stormwater and sanitation rates, which it looks at annually.

Under the proposal, single-family homes with reclaimed water service would see an overall monthly bill increase of approximately 7.71%. Households without reclaimed water would see an increase of about 6.86%. 

For most single-family households, the breakdown of proposed monthly bill increases includes:

• Stormwater for most: $10.18
• Wastewater: $4.38
• Potable water: $2.61
• Sanitation: $2.20

Claude Tankersley, the public works administrator for St. Petersburg, cited widespread economic conditions as the primary driver behind the proposed rate changes.

"We're not really adding anything at all to the operations," Tankersley said. "We haven't added any staff. We're [not] adding any new operational activities. We're just staying current. But as everybody is throughout the United States and throughout this community, our operations are being hit by inflationary pressures also. So, if we did a zero rate increase this year, we would have to look at how we would reduce those operation costs, and I don't know how we would do that without having to cut staff, to be honest with you."

Capital improvement bond proposal

The backstory:

The proposed utility rate adjustments come as the city prepares to ask voters in November to approve a general obligation bond. City leaders emphasized that the two funding streams serve different purposes.

They say the possible rate increases would maintain day-to-day operations and existing projects in the city's five-year capital improvement plan. The proposed bond would add up to $600 million to that five-year plan to help with even more stormwater infrastructure projects.

City council public hearings

What's next:

St. Pete City Council is scheduled to hold its first reading on the proposed rate changes on Aug. 13 at 3 p.m. at City Hall. A public hearing will take place Aug. 27 at 5 p.m. at City Hall.

If Council approves the changes, the new rates will go into effect Oct. 1.