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Lealman residential collection assessment study: staff recommends $48 annual increase for next two years to rebuild reserves
Summary
Pinellas County staff recommended a $48 per‑year increase to the Lealman municipal service benefit unit assessment for FY‑26 and FY‑27 to restore minimum cash reserves and cover an expected collection contract cost increase when the contract expires in December 2026.
Cassie Hartman, the solid waste business financial manager, presented an update March 20 on the Lealman solid waste collection and disposal assessment (MSBU) and recommended a three‑year funding approach that staff say will restore fund reserves and smooth rate impacts.
Hartman said the MSBU assessment has remained $240 annually since 2014 and that staff and Raftelis, the county’s rate consultant, evaluated options after participation increased in 2023 and a collection contract set to expire Dec. 2026. The department earlier secured a $300,000 loan from the solid waste operating fund to the Lealman fund with a six‑year payback and interest, and adopted $24 annual increases for FY‑24 and FY‑25.
For FY‑26 staff presented three scenarios and recommended scenario 3: a $48 per year increase for two consecutive fiscal years (FY‑26 and FY‑27), raising the assessment to $288 per year. Hartman said the department used a $78 per‑unit assumption for the future collection contract (midpoint of a $54–$102 forecast range); that assumed increase represents about $625,000 in additional revenue annually, roughly 30% of the current Lealman budget. Hartman told commissioners the recommended increase meets the clerk‑finance office 75‑day minimum cash requirement and provides reserve coverage if contract bids exceed staff assumptions.
Hartman said staff will procure the collection contract in about a year and, if the awarded contract is lower than the model assumption, the department can shorten the loan payback and limit future increases. The assessment is charged on the property tax bill; staff translated the $48 annual increase into about $4 per month for affected households.
Key details
- Current assessment: $240 annually (Lealman MSBU).
- Board action already taken in 2023: $300,000 loan from solid waste operating fund to Lealman fund, six‑year payback with interest; $24 annual increases adopted for FY‑24 and FY‑25.
- Staff recommendation (scenario 3): $48 annual increase for FY‑26 and FY‑27, moving the assessment to $288 per year; estimated impact ~$4 per month per household. (Cassie Hartman)
- Forecast assumptions and budget impact: future collection contract assumed to increase costs by $54–$102 per unit; staff used $78 for modeling (~$625,000/year, ~30% of current MSBU budget).
Next steps
Hartman said procurement of the collection contract is planned to begin next year, with the contract expected to be executed by early summer; staff will return with the final contract amount and will adjust the rate model and repayment schedule as needed. The board did not take a formal vote on March 20; Hartman indicated the recommendation will be part of the FY‑26 budget and user‑fee process.
