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Utilities present multi‑year CIP and warn Tampa Bay Water credits will raise future purchase costs
Summary
Utilities staff told commissioners the FY26 operating and capital budgets fund major water and sewer projects and warned that a multi‑year credit from Tampa Bay Water will expire in coming years, creating a projected $4–4.5 million increase in purchased water costs unless offset.
Utilities staff briefed the Board of County Commissioners on the FY26 operating and capital budgets for water and sewer and described a multi‑year capital program to rehabilitate aging pipes, pump stations and treatment assets.
Shane Coonseth (operating budget analyst) said the enterprise overall increases to $366.6 million for FY26 when capital transfers are included and that reserves will fall as planned because large capital projects move from planning to construction. He told commissioners that the water renewal and replacement plan includes $20 million this year for an Advanced Metering Infrastructure (AMI) program that has already seen 87,000 meter installations and that AMI will change how the utility manages usage and customer outreach.
James Lewis (capital analyst) summarized the requested six‑year CIP (FY26–31). The plan totals about $862.4 million (excluding reserves) and steers most additions to sewer renewal and replacement and water renewal replacement funds. Notable projects included Gulf Beach booster station replacement, Pinellas Park interceptor improvements, pump‑station rehabilitation and a Logan utilities operations building. Lewis said that many projects reflect updated consultant cost estimates and that material price volatility has moderated compared with recent years.
Linda (debt counsel) told commissioners the utility’s outstanding debt is approximately $69.4 million, with a blended interest rate near 2.89% and maturities that largely retire by 2032. Staff told the board to expect a large financing need — on the order of hundreds of millions of dollars over the next several years — tied to major pump station and force‑main programs as projects move to construction.
A key near‑term operational issue: Coonseth warned the board that a credit Pinellas currently receives for prior regional water purchases will expire in FY28 and that, under current forecasts, the county will face an incremental $4–4.5 million annual increase for purchased regional water beginning around FY29 unless offset by rates or reserves.
Ending: Commissioners asked staff to plan rate‑study work and financing options. No rate changes were before the board this meeting; staff said user fees and a four‑year user‑fee study are in the packet for consideration and that a formal rates analysis is scheduled in the run‑up to FY27.
