Possible water and sewer rate increases

At 11, Tampa City officials say the city is facing a $28 million revenue gap because of a new state law that will eliminate an extra charge that some water and sewer customers have been paying up until now. So now the city is weighing its options to make up that revenue shortfall, including a proposed rate increase that could hit customers bills. Let's get more on this now. Fox 13's Jennifer Vageless live in our studio. So Jennifer, what's the city considering here, and what could happen next? Yeah, well, Chris, let's start with what's at the center of this debate. The city of Tampa provides water and sewer services to people who live both inside and outside of city limits. But some parts of Hillsborough, unincorporated Hillsborough County, currently pay the city an extra 25% surcharge. So, for example, a $100 bill would become $125, and that extra charge brings the city about $28 million every single year. But that extra charge is about to go away with Florida lawmakers signing House Bill 1451 into law. It prohibits Tampa from collecting that extra territorial surcharge, and that change takes effect July 1st of 2027. So this means the city is looking at a loss of about $28 million in annual revenue, and the city still has to pay to keep its water and sewer services running. Now, the city says it can't simply absorb that loss. Because running a water and sewer system is expensive, it's also working on long-term infrastructure plans to figure out what needs to be repaired or replaced or upgraded and how much that will cost. So those studies aren't expected to be finished until 2028. So what is the city considering? Well, the biggest option on the table is a 9% increase to water consumption and wastewater disposal rates for Tampa residents starting again July 1st, 2027. But that's not the only option. The city could also delay some infrastructure projects and also change some project funding sources between different avenues. So that last option still needs some more review from the city's financial advisor. And the next big step will come this Thursday at the city council meeting where city council members could vote on a solution to address that $28 million revenue loss. And this timing is important because the city is also preparing to borrow money for major water and wastewater infrastructure. Okay, so still some decisions to be made, but it sounds like the city leaders are thinking about raising those water and sewer rates for residents in the city limits of Tampa. All right, thank you, Jennifer.