Water, Sewer, Stormwater Rate Increases Coming Soon

A proposed rate increase would cost a resident, who uses 2,000 gallons of water a month, an extra $3.31 on their bill, according to Gulfport city leaders.

It's an increase that's needed to ensure customers aren't shocked by significant raises in the next four years, according to City Manager Jim O'Reilly. The recommendation was made by the city manager after similar water contracts with the City of St. Petersburg increased to 25 percent at the end of their agreements.

Currently, Gulfport residents receive water from the City of St. Petersburg. O'Reilly believes that when the current agreement ends in four years, St. Pete will impose a 25 percent increase. The vote Tuesday night was an effort to ease the costs over time.

"What I don’t want to happen, is when we get to the end of this agreement in four years, that we have this drastic change. I want to be able to bring it on a piecemeal basis. I’d rather see the resident absorb the 12 percent annually then one day hit them with 37 percent,"O'Reilly said Tuesday.

Gulfport City Council unanimously passed, during first reading, three ordinances Tuesday night that would increase water, sewer and stormwater rates by 12 percent.

"I understand perfectly and I appreciate that you’re thinking ahead and feathering it in slowly so it’s not a culture shock to customers," Councilor Christine Brown said.

“I think it’s unfortunate anytime we have to raise rates for water,” Vice Mayor Dan Liedkte said. However, he said he supported the ordinances and mentioned that other cities are hiking rates even higher. In Baltimore, they're raising rates by more than 40 percent, he said.

Councilor Jennifer Salmon questioned why officials wanted to raise rates by 12 percent, "(that's) more than we actually need," she said. However, Salmon voted in favor of the increase after further discussion about gradually passing on the costs.

With virtually no opposition, the ordinances will likely pass during second reading and take effect on Tuesday, October 1, the beginning of the next fiscal year.

Residents would be given a 30-day notice prior to the change.

According to city leaders, in the past 10 years, the City of St. Pete increased water rates by 82.85 percent with Gulfport only passing on 52 percent of those hikes to residents. Sewer rates have increased by 60 percent and Gulfport has only passed on 51 percent to customers, city officials say.
Take a look at the numbers:

Minimum Bill: 2,000 Gallons

Current Bill
Water   11.04
Sewer   13.72
Garbage   18.39
Stormwater   2.87
Recycling   1.68
TOTAL = 47.70

New Bill
Water    12.36
Sewer   15.37
Garbage   18.39
Stormwater   3.21
Recycling   1.68
TOTAL = 51.01                             INCREASE OF = $3.31

Bill: 4,000 Gallons

Current Bill
Water   22.08
Sewer   27.44
Garbage   18.39
Stormwater   2.87
Recycling   1.68
TOTAL = 72.46                           

New Bill
Water   24.72
Sewer   30.73
Garbage   18.39
Stormwater   3.21
Recycling  1.68
TOTAL = 78.73                              INCREASE OF = $6.27