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20May
Wholesale Water Rate Remains Stable as Regional Utility Addresses Future Water Supply Needs
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News Release

For Immediate Release

Contact: Brandon Moore
bmoore@tampabaywater.org
(727) 791-2304 | (727) 470-0702

CLEARWATER, Fla. (May 20, 2025) – Tampa Bay Water’s board of directors approved the utility’s $219.4 million operating budget and $254.5 million Capital Improvements Program (CIP) budget for fiscal year 2026. The budgets address the needs of the growing Tampa Bay region, while balancing the board’s three overarching goals: to maintain a reliable water supply system, be good stewards of the environment and maintain cost effective rates. 

The Tampa Bay region is projected to need an additional 10-12 million gallons per day (mgd) by 2028 and at least 10 mgd by 2033. Earlier this year, Tampa Bay Water issued approximately $420 million of new bonds to fund the utility’s capital projects and system improvements to address growing demands.  

“Anticipating the need to fund new water supply infrastructure, we built up our cash reserves to mitigate increases to the wholesale water rate – keeping it stable and affordable,” said Chuck Carden, general manager for Tampa Bay Water.  

The wholesale water rate for 2026 is $2.64 per 1,000 gallons, a 0.8% increase from the current year. The utility’s budget includes using $4.5 million from reserves, which reduced the potential rate increase from $0.08 to $0.02 per 1,000 gallons. At less than a penny per gallon, wholesale drinking water remains a value in the Tampa Bay region.  

The CIP addresses the utility’s capital needs through 2035. The 2026 CIP includes funding for 39 projects in various stages. Two projects make up nearly 80% of planned expenditures – the Tampa Bay Regional Surface Water Treatment Plant Expansion (29%) and the South Hillsborough Pipeline (50%). The remaining 20% will go towards other system improvements. 

Projected regional water demand for 2026 is 209.7 mgd. Tampa Bay Water will use the following mix of sources to meet these demands: 

  • River water: 79.07 mgd 
  • Seawater: 12 mgd 
  • Groundwater: 118.63 mgd (85.03 mgd from consolidated wellfields and 33.60 mgd from other groundwater sources) 

About Tampa Bay Water
Tampa Bay Water is the largest wholesale water supplier in Florida, providing high-quality drinking water to its members, who in turn, supply water to more than 2.6 million residents of the Tampa Bay area. Tampa Bay Water member governments include Hillsborough, Pasco, and Pinellas counties and the cities of New Port Richey, St. Petersburg and Tampa. To learn more, visit tampabaywater.org.