Clearwater hikes stormwater rates 8% to address flooding, infrastructure

Residents are set to pay more for stormwater utility fees over the next five years as Clearwater invests in drainage to address flooding and respond to sea level rise.

The City Council on Thursday voted unanimously to increase rates by 8% every year through 2029, which will average to $1.30 more annually for single-family households.

The hike is needed to pay for a backlog of citywide stormwater upgrades that had been deferred over the past decade and a major flood-control project on north Clearwater Beach, according to public works director Marcus Williamson.

But Clearwater is not alone. On average, fourteen municipalities in Tampa Bay are increasing stormwater rates by 13% in 2025, with some hitting 20%, according to Leticia Doohaluk, senior manager for the engineering firm Stantec.

“Hopefully you understand the magnitude of the needs around this area because of the exposure to water and sea level rise and a significant amount of flooding in all of Florida, really,” Doohaluk told the council this week.

Residents got a break on stormwater fees in 2020 when the city dropped rates by 8.5% and held them steady the following two years as the utility paid off bonds.

In 2022, the city had a projected $121 million need for drainage work over the next decade, and a study proposed rate increases of 1.75% for the following five years. But after Williamson was hired last year, he said he started identifying citywide needs due to a lack of investment in the system.

A new analysis has identified a need for $232 million in stormwater investments over the next decade, and an updated study by Stantec recommended the 8% annual rate increases through 2029 to pay for it. More than half of that increase will cover a major project to expand stormwater pipe sizes and other work to prevent flooding on north Clearwater Beach. It’s one of the city’s most vulnerable neighborhood where streets are regularly inundated after storms.

Williamson said the rest of the funding will pay for “a gigantic backlog” of pipe replacement and street projects throughout the city.

“Over the last decade ... they really were just putting money into paying off the bonds and were more just trying to hold the status quo,” Williamson said in an interview. “There was some maintenance going on, it just wasn’t as much as was needed.”

While approving the rates on Thursday, council members addressed the hardship on residents. But Mayor Bruce Rector noted the need to fix the “unacceptable” flooding that is occurring in Clearwater, not just on the barrier islands but inland, most recently this month with Hurricane Debby.

He said stormwater drainage deficiencies are a regional concern that leaders across Tampa Bay are having to address also to protect the health and safety of coastal waters.

“We need to prepare for the worst of the worst, and to be prepared for the worst of the worst, we need to make some investments in our stormwater (system),” Rector said.