Mayor Welch unveils $1.1 billion budget focused on housing, public works, and safer neighborhoods
/City of St. Petersburg City Council will vote on the proposed budget on Thursday, September 25th | City of St. Pete
Mayor Ken Welch has released his recommended Fiscal Year 2026 (FY26) budget for the City of St. Petersburg, a $967 million spending plan focused on affordable housing, infrastructure resilience, equitable development, and neighborhood health and safety.
The Capital Improvement Plan, which is funded through the city’s budget, includes an additional $202 million in funding for projects ranging from road resurfacing and wastewater treatment upgrades to municipal facility improvements.
The city’s total operating budget plus the proposed Capital Improvement Plan totals over $1.1 billion in spending for FY26.
The proposal represents a 7.25% increase over last year’s adopted budget and outlines major priorities across city departments and programs.
The plan was formally submitted to City Council on last Tuesday, July 15th following months of internal planning, public outreach, and Council workshops.
The city’s budget process began in December 2024, culminating in a public Budget Open House on April 14th and a final Committee of the Whole workshop on July 31st.
On July 17th, City Council adopted a tentative millage rate of 6.4525, the property tax rate expressed in mills per dollar of assessed value, maintaining the same rate as the previous year.
Infrastructure and public works make up the largest portion of the FY26 operating budget at $321 million, or 33% of total spending. The Public Works Administration includes six departments: Engineering and Capital Improvements, Stormwater, Pavement and Traffic Operations, Fleet Management, and Water Resources.
City workers cleaning up debris after last year’s back-to-back hurricanes | City of St. pete
The city has also introduced the St. Pete Agile Resilience (SPAR) Program, which will guide efforts to adapt to climate change and respond more rapidly to extreme weather events following two major hurricanes in fall 2024.
Affordable housing remains a central focus. The city has made progress on its Housing Opportunities for All Plan, launched in 2020, with more than 2,600 multifamily units and 196 single-family homes completed or in development.
The FY26 budget allocates $9.8 million to the Housing and Community Development Department, with an additional $6 million set aside over five years for affordable housing land acquisition. More than $2 million is earmarked for homelessness services, including support for rapid rehousing, youth homelessness prevention, and grants to organizations like Pinellas Hope, Safe Harbor, and St. Vincent DePaul.
Public safety is the second-largest area of spending, with $171 million allocated to the St. Petersburg Police Department and $73.4 million for Fire Rescue services. The budget maintains funding for officer body cameras, tasers, drones, and the Community Assistance and Life Liaison (CALL) program. It also adds firefighter-paramedic positions, funds the Fire Cadet Program, and includes mental health services for first responders and their families.
The City of St. Petersburg, in partnership with the St. Pete Police Department, hosting Real Talk About Teens & Social Media Safety | City of St. Pete
Economic development and equity-focused redevelopment remain key parts of the city’s strategy. The FY26 budget supports the continued transformation of the Historic Gas Plant District, the Manhattan Casino, and Tangerine Plaza, aiming to deliver community benefits such as housing, workforce development, and business opportunities.
The budget includes $250,000 for small business grants, $200,000 for workforce development, and support for local organizations like the Greenhouse and the St. Petersburg Economic Development Corporation.
Arts and culture funding totals $557,000 in city grants, with additional investments in local museums, artist grants, and events like Localtopia and St. Petersburg International Folk Fair Society, Inc. (SPIFFS).
According to a recent economic impact study, the city’s nonprofit arts sector generated $133 million in local economic activity in 2022.
As for youth programming, the Mayor’s Future Ready Academy, which has already helped place 18 graduates into city jobs, will receive $500,000 in continued funding. The city is also allocating $400,000 for year-round youth employment, as well as support for literacy and STEM initiatives, Junior Achievement, and other education nonprofits.
Mayor Ken Welch during last week’s ribbon cutting for Arya, a 415-unit apartment development with affordable housing on 4th Street in St. Pete | City of St. pete
To promote health and safety in neighborhoods, the city will maintain $1.1 million in funding for the Healthy St. Pete program and continue support for food access programs such as the Healthy Neighborhood Store Program and Community Food Grants.
Additional investments include beautification grants, tree planting initiatives, and community events like the MLK Festival and Juneteenth.
The FY26 budget is balanced with $411.8 million in General Fund revenue, supported primarily by taxes and user fees. While property value growth came in slightly lower than projected, 4.93% compared to the expected 6%, the city managed to reduce overall General Fund expenditures by more than $10 million from initial estimates through cost adjustments across departments.
The public will have two opportunities to weigh in before the budget’s final adoption. The first public hearing, where City Council will adopt the tentative FY26 budget and millage rate, will take place on Thursday, September 11th, 2025, at 6 p.m.
The second and final hearing, where Council will vote on the full FY26 budget and Capital Improvements Plan, will be held on Thursday, September 25th, 2025, also at 6 p.m. Both hearings will be held in Council Chambers at City Hall (175 5th St. N.) and will be broadcast live on stpete.org/TV and cable channels Frontier 20, Spectrum 641, and WOW! 15.
The new fiscal year begins on October 1st. Mayor Welch described the FY26 proposal as a reflection of the city’s long-term priorities and grounded in equity, resilience, and responsible investment.
Correction: An earlier headline misstated the proposed budget for FY26 as $967 million, which only reflects the city’s operating budget. The total proposed budget, including $202 million in Capital Improvements Plan spending, is approximately $1.1 billion. The headline has been updated to reflect this.
