This is the first in a series about the $600 million the city wants to borrow for sewer, wastewater and stormwater improvements. It will be up to St. Petersburg voters to decide if they want to approve this borrowing when they vote in November.
The City plans to repay that borrowing, including interest, through additional property taxes over 30 years. Based on the estimates we have seen, the interest would bring the total cost of repaying the $600 million to approximately $1.1 billion, with property owners paying approximately $96 more each year for 30 years for every $100,000 of assessed value.
That is a lot of money.
But the $600 million is only one piece of a much bigger and much more complicated story.
The City has identified approximately $4.4 billion of sewer, wastewater and stormwater capital improvement needs for the period from 2027 through 2050.
Approximately $2.7 billion of that is part of SPAR — St. Petersburg Agile Resilience. SPAR is the City’s effort to prioritize and accelerate infrastructure projects intended to reduce flooding risks, strengthen the City’s water and wastewater systems, and protect critical facilities from future storms.
The proposed $600 million bond is intended to accelerate a portion of that $2.7 billion of SPAR work. The remaining approximately $1.7 billion is outside SPAR.
What This is Really About
For most of us, this isn’t really about billions of dollars of infrastructure projects. It’s about what happens the next time a hurricane hits St. Petersburg — what happens to our homes, our neighborhoods and our community, and whether our sewer, wastewater and stormwater systems can continue to function when we need them most.
Before reaching a conclusion about whether the $600 million bond should be approved, I think you’d agree that we need to see the entire picture.
I’ve been communicating with Public Works Administrator Claude Tankersley and have asked the City for more information about the projects that make up the $4.4 billion, which of those projects are included in the $2.7 billion of SPAR projects, their costs and timing, how they will be paid for, and what borrowing the $600 million would allow the City to accomplish sooner.
Tankersley has been responsive and is working on answers to my questions. But he also told me something important: the City’s programs are very large, many of the projects are still conceptual, and some of the forecasts extend far into the future.
That may mean that some of the detailed information I’m asking for doesn’t yet exist. And if this is the case, how were the $4.4 billion and $2.7 billion estimates developed and how firm are those cost estimates?
But I don’t want to get ahead of his response. I’ve asked the questions, and Tankersley is working on them. Let’s see what the City is able to provide.
Over the next several posts, I’m going to share what I learn.
Quite frankly, much of what I’m trying to find out should already be clearly available and understandable to the public — and there is still an opportunity for the City to provide that clarity.
And with a decision this large and complicated, residents shouldn’t be depending on someone like me to know what is being proposed, what it will accomplish and what it will cost.
What We Need to Know
The two hurricanes exposed serious flooding, sewer and wastewater problems in St. Petersburg.
What were the most serious problems? What needs to be done to prevent or reduce them the next time a major storm hits? Which improvements are most important and should be done first?
The City should be explaining to us what needs to be done first, what can reasonably wait, and why. It should also be showing us what will actually be built, where, when, how much protection it will provide, what it will cost and how it will be paid for.
That means we need to understand what makes up the entire $2.7 billion of SPAR projects: which projects have been defined, which are still conceptual, which are scheduled, when they are expected to be completed, and how the work will be paid for.
We also need more information about the approximately $1.7 billion of projects that are not part of SPAR. What are those projects, when are they supposed to be done, how important are they, and how are they going to be paid for?
And finally, there is the proposed $600 million itself.
Which projects will be completed sooner because the City borrows the $600 million, how much sooner, and what additional protection will St. Petersburg residents receive as a result?
What Will All of This Cost Us?
The proposed $600 million bond is not the total cost. It is part of a much larger, multibillion-dollar program.
Ultimately, residents and businesses pay for it all.
So we need to know not only the total cost of everything the City believes needs to be done, but how it will all be financed and what residents should expect to pay through both utility rates and property taxes over the years ahead.
Why Property Taxes to Pay for the $600 Million?
Historically, much of this type of water, sewer and wastewater infrastructure has been paid for through the utility system.
The proposed $600 million would be different. It would be borrowed by the City and repaid through property taxes.
Why should this particular $600 million be paid for by property taxpayers rather than through utility rates?
There may be good reasons. We need to know what they are.
Where Should We Go From Here?
Wouldn’t the better process be to step back and independently review the City’s entire $4.4 billion of identified needs before asking voters to approve $600 million in borrowing:
- What are the projects that make up $4.4 billion, and what will each cost?
- Which of those projects make up the $2.7 billion of SPAR projects?
- Why were those projects made priorities?
- What is the status and expected timing of each project?
- What will borrowing $600 million allow the city to accomplish sooner?
- How will all of this be paid for?
An independent advisory group, working with the city’s professional staff and outside experts in engineering, infrastructure and finance, could undertake that review and answer these basic questions.
Once that work was completed, the City could present the entire plan and the independent analysis to the public through a series of meetings where residents could ask questions and get answers.
Then voters could make their decision with the benefit of that information.
But We Don’t Have Time
Clearly, there isn’t enough time to do all of that before the November vote.
So that leaves an important question: Should the vote be put off until that kind of independent review can take place?
Or, alternatively, should the City bring all of this information together now, present the entire picture clearly to the public through a series of public meetings, and answer residents’ questions before November? Would that provide voters with enough information to make the decision, even without an independent review beforehand?
At this point, I’m not sure what the answer to those questions should be. But surely, don’t we want to see the additional information from the City before we are asked to vote?
(The City has said that there will be an advisory group for the $600 million if voters approve it. If the November vote goes forward, I would also want to understand who would serve on that group, what role independent outside experts would have, what the group would actually review, and how its work and recommendations would be reported to the public.)
Want to Help?
There are people in St. Petersburg who know a great deal about engineering, infrastructure planning, financing and many of the other issues involved here.
If you have particular expertise in any of these areas and would be interested in helping evaluate the information as we receive it, please email me – homerunsmatter@gmail.com
