Hillsborough County advances stormwater rate hike for maintenance, rejects impact fees

Hillsborough County advances stormwater rate hike for maintenance, rejects impact feesCommissioners voted 6-1 to advertise a $6 annual increase to the median residential stormwater assessment to cover a 15% boost in maintenance activities, following recommendations from a Black & Veatch evaluation.

The median residential stormwater assessment will increase from $86.49 to $92.58 annually if adopted at a September 2 public hearing.

The rate hike will generate $2.7 million to expand outsourced maintenance services such as ditch clearing and canal mowing.

Consultant Raftelis advised against implementing stormwater impact fees, citing legal risks and the effectiveness of the county's existing assessment model.

The county will maintain a $20 million general fund subsidy for stormwater operations in the FY27 budget, avoiding a steeper $45 rate increase.

Hillsborough County, Florida, is moving forward with a proposed increase to its annual stormwater assessment to fund expanded maintenance activities, while formally opting out of implementing new stormwater impact fees. During the June 17 Board of County Commissioners meeting, the board voted 6-1 to advertise a rate increase that would raise the median residential stormwater assessment from $86.49 to $92.58 annually. The $6 increase is designed to generate an additional $2.7 million, funding a 15% increase in stormwater maintenance activities. The rate adjustment follows a comprehensive stormwater evaluation conducted by Black & Veatch, which recommended focusing on both capital needs and ongoing maintenance. According to Josh Bilotti from the county's Engineering and Operations Department, the additional revenue will be directed toward expanding outsourced maintenance services, including right-of-way mowing, canal and slope mowing, ditch clearing, and pipe and inlet maintenance. Bilotti noted that staff did not recommend a rate increase to fund capital projects at this time. Federal Community Development Block Grant Mitigation (CDBG-DR) allocations have amounted to more than initially estimated, providing sufficient coverage for the current capital improvement program levels. The board also discussed the stormwater program's reliance on the county's general fund. Currently, the stormwater operations and maintenance budget is subsidized by $20 million annually from the general fund. Bilotti presented an alternative scenario showing that eliminating this subsidy would require a $45 annual rate increase to bridge the gap. However, County Administrator Bonnie Wise confirmed the $20 million subsidy remains intact for the recommended fiscal year 2027 budget, shielding ratepayers from the steeper hike despite looming uncertainties over potential state property tax reforms. Addressing a prior board inquiry, Bilotti presented findings from rate consultant Raftelis regarding the potential implementation of stormwater impact fees. Raftelis recommended against the fees, noting they are "exceedingly rare" in Florida—with fewer than five currently in place compared to 170 recurring assessments. The consultant concluded that impact fees carry legal risks and are less effective than recurring assessments, partly because onsite retention requirements already mitigate the stormwater impacts of new developments. Following the 6-1 vote, with Commissioner Donna Cameron Cepeda opposed, the county will mail notices to property owners in July. A final public hearing to adopt the calendar year 2026 stormwater rate resolution is scheduled for September 2.