Pinellas County recommends 8% solid waste rate increase amid revenue losses

Solid waste management took center stage at the St. Pete Beach City Commission meeting on April 8, 2025, as officials discussed a crucial financial forecast that could impact local rates. Paul Sacko, the director for solid waste with Pinellas County, presented the findings of a recent rate recommendation study, emphasizing the need for adjustments due to the expiration of a lucrative power purchase agreement with Duke Energy.

Sacko explained that the agreement, which had been in place for 30 years, accounted for approximately 55% of the revenue for the solid waste fund. With this significant revenue source set to expire at the end of 2024, the county is facing a financial "cliff." To mitigate the impact, the county has proposed an 8% rate increase for solid waste services over the next three years, a move that follows nearly three decades without any rate adjustments.

The proposed increase is part of a broader strategy to stabilize the solid waste fund, which operates without tax dollars. Sacko noted that the last rate hike occurred in 2019, and the county has been gradually increasing rates to catch up with rising operational costs. The new rates, if approved, would bring the average fee to approximately $60.62, still below the median rates of other counties operating similar waste energy facilities.

Sacko reassured commissioners that the county is actively seeking a new operator for the waste energy facility, as the current provider has raised costs by nearly 50%. The county anticipates that competitive bids may lower operational costs, but any unforeseen increases could lead to adjustments in future rate studies.

The discussion highlighted the importance of proactive financial planning in solid waste management, ensuring that municipalities and private haulers can prepare for the upcoming changes. As the commission weighs the proposed rate adjustments, the implications for residents and local businesses remain a key consideration in the ongoing conversation about sustainable waste management practices.