Largo presents FY2630 capital plan; wastewater, stormwater funding prompt scrutiny

Largo City staff presented the proposed FY2026through FY2030 Capital Improvements Program (CIP), outlining fund projections, major project portfolios and next steps for commission review and adoption.

The presentation covered enterprise funds (golf course, wastewater, solid waste), special revenue funds (stormwater, CRA/West Bay Drive, penny-for-pinellas), the general fund and the Horizon capital projects fund. Staff emphasized the CIP is a five-year planning document used to prioritize capital spending, align projects with the citys strategic goals and to set rates needed for implementation.

Why it matters: The CIP sets near-term capital investments and underpins potential utility rate adjustments. Large projects and multi-year rate plans affect residents budgets, service reliability and the citys ability to borrow for infrastructure.

Key financial details and projections presented

- Government-wide and fund highlights: staff reported a government-wide surplus discussed earlier in the meeting and showed a $4.5 million increase in general-fund total fund balance for 2024 (total fund balance, not unassigned). The Horizon capital project fund showed large bond and project activity: an ending 2023 balance reported around $37 million, 2024 around $9.5 million and a current balance identified in presentation text at roughly $2.22 million; staff noted a $20.5 million bank loan issued in October will increase available cash for Horizon projects.

- Debt and pension: staff noted the ERP loan is scheduled to be paid off in July and government-wide annual debt service is about $5 million. The police and fire pension net liability was presented in a separate audit/pension update as roughly $54.4 million with an actuarial funded ratio near 77278% depending on valuation timing; staff scheduled a future work session for detailed pension valuation discussion.

- Enterprise funds and rates: wastewater fund drivers cited were legally mandated projects and deteriorating infrastructure. Staff projected wastewater revenues to meet FY25 budget at about $39.8 million; annual enterprise fund debt service was presented as roughly $8.7 million. Commissioners pressed staff on a projected wastewater rate increase (comments in the meeting referenced a roughly 20% planning scenario) and asked for alternatives and more detail on the drivers of the increase.

- Solid waste and tipping fees: the solid-waste fund projection showed fund balance rebuilding in later years but flagged substantial out-year vehicle and equipment purchases deferred by COVID-era supply issues. Staff said tipping fees historically made up about 40% of the operating budget and reported a projected multi-year escalation in tipping fees (past projections used 6.3% with expectations rising toward 8%), which will affect rate analyses.

- Stormwater: staff proposed building recurring capital funding of about $7 million annually to address backlogs of pipes and drainage repairs. The stormwater fund was projected to decline to about 9% of fund balance in FY27 before recovering; the FY26 CIP includes significant capital increases and a planned stormwater and wastewater joint rate study.

Portfolio highlights and projects

- Facilities: citywide roofing and HVAC replacements; Old City Hall demolition and sewer relocation; separate reconstruction projects for Fire Stations 38 and 40 (Station 42 unfunded in the FY26 window).

- Mobility: neighborhood roadway resurfacing and parking-lot resurfacing, sidewalks (including Largo Middle School/CSX), and a fourth-year pavement plan. The undergrounding-of-utilities project was moved to unfunded to balance the CIP.

- Stormwater projects added/updated: Allens Creek BMPs moved into FY26, Starkey Road additional funding, Woodbrook Ditch rehabilitation advanced from FY28 to FY27 for hurricane-related impacts, and new projects proposed for Brookside neighborhood flood abatement and Venetian Gardens resiliency improvements. Staff outlined the scope for Venetian Gardens as an initial consultant-led preliminary engineering study in FY26 with later construction phases tied to report findings.

- Wastewater projects: sanitary sewer evaluation survey, 20th Street SW siphon replacement, solids-processing dewatering equipment and structures proposed for funding; additional resiliency projects at lift stations and plant flood-protection noted.

Commissioner concerns and staff next steps

Commissioners praised the level of detail but several expressed concern about cumulative rate impacts on residents, especially the wastewater proposal and long-term solid-waste increases tied to sheltering vehicle replacements and rising tipping fees. Staff and the city manager repeatedly stressed that the five-year projections are planning-level and that nearer-term years (one to two years) are most likely to be implemented; outer-year projections are subject to change.

Staff requested and received direction to forward recommendations from the Finance Advisory Board: the board will meet May 28 to finalize recommendations, present them at the May 13 commission work session and return a final CIP for commission consideration at the May 20 meeting. Per the city charter, the CIP must be adopted by June 1.

Ending: Staff closed the presentation by inviting further technical questions and confirming the timeline for Finance Advisory Board review, commission work sessions and final adoption. No formal vote was taken at the work session; staff will return with recommended rate analyses and more granular project cost detail as requested by commissioners.