The City of St. Petersburg is moving toward a 2026 voter referendum on general obligation bonds that would fund major stormwater and water resilience projects, as officials weigh potential property tax changes, utility rate increases, and long-term infrastructure costs.
The proposal comes after the city accelerated $614 million in stormwater improvement projects following the 2024 hurricane season.
Officials are reportedly considering whether to fund the work through a property tax referendum backed by general obligation bonds, with St. Pete Catalyst reporting that some city leaders favor a hybrid approach combining debt financing with utility fee increases. The outlet also reported that utility revenues currently cover only routine operations.
Utility costs are projected to rise in the coming years. St. Pete Catalyst also reported that average utility bills are expected to increase by about 9 percent in fiscal year 2026, with the administration recommending a 17.5 percent stormwater rate increase that year and a 75 percent increase in 2027. The city’s Stormwater Master Plan calls for roughly $1 billion in projects over the next 20 years.
According to city budget documents, St. Petersburg has budgeted $228.876 million in ad valorem revenue for fiscal year 2026, accounting for 55.62 percent of general fund revenues. Of that total, 75.88 percent—about $173.666 million—is allocated to the Police Department, with the remainder funding fire rescue services and required redevelopment transfers.
Separate analysis from Florida TaxWatch found that the city could lose an estimated $52 million annually in franchise fees and property tax revenue if it were to pursue a municipal electric utility. Duke Energy Florida currently pays about $24 million per year in franchise fees under a 30-year agreement with the city that expires in August.
The city’s utility and infrastructure planning comes as St. Petersburg continues broader civic and cultural development, including investment in public facilities and long-term redevelopment planning tied to resilience and growth.
