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Hillsborough commissioners extend interlocal with Tampa, direct staff to study purchase of Palm River service area
Summary
The Board approved a two-year extension to an interlocal agreement that defines water and wastewater service boundaries with the City of Tampa and directed staff to investigate funding to purchase the Palm River service area and program improvements.
The Hillsborough County Board of County Commissioners on June 4 approved a two-year extension to its interlocal agreement with the City of Tampa that defines water and wastewater service boundaries for unincorporated South County and directed staff to investigate funding options to purchase the Palm River water and wastewater service area.
The action extends the current boundary agreement while county staff and Tampa officials negotiate a “cleanup” of service lines and a fair cost-sharing arrangement, County Water Resources Director Lisa Ray told the board. Commissioner Gwen Myers moved the initial approval and later moved, and the board approved, a separate direction for staff to examine funding pathways to acquire the Palm River system; both motions passed 6-0.
County staff said the county’s priorities shifted from an immediate purchase two years ago to addressing capacity shortfalls in South County and making sure a new county water and wastewater treatment plant meets rapid growth needs. Ray told commissioners the extension will provide a two-year window to resolve boundary lines and service cost issues.
During debate, Commissioners raised concerns about valuation and service pricing in other city–unincorporated transfers. Commissioner Joshua Wostel noted prior examples in Town and Country where unincorporated customers pay an apparent 25% surcharge, and he said outside reviewers questioned whether asset deterioration had been fully reflected in valuations presented by cities.
Myers’ purchase motion included direction that the county continue buying services from Tampa until the county extends its own service into the area and that staff return with options before the county takes ownership steps. The board recorded the votes as unanimous on both decisions.
No budget appropriation was approved at the meeting; the board asked staff to return with funding options and implementation timelines, and county staff indicated they will present cost and financing scenarios before any purchase proceeds.
The item grew out of long-running negotiations over Palm River service and follows prior extensions while the county evaluates capacity and growth in South County.
