Finance director warns reclaimed water fund unsustainable; commission questions metering impacts
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Summary
Devin Schmidt told the St. Pete Beach commission on June 10 that the reclaimed water fund cannot sustain operations under current fee structures. Commissioners raised concerns about upcoming metering by Pinellas County and potential rate impacts on residents.
Finance Director Devin Schmidt told the St. Pete Beach commission on June 10 that the city’s reclaimed water fund is not sustainable under its current fee structure and that staff is exploring short‑term financing and fee changes as part of a broader fee study.
Schmidt said the city is discussing use of a bridge loan with bond counsel and the city’s financial advisor to sustain operations for the reclaimed water system while longer‑term solutions are developed. She also said staff has a pending fee study that will examine metering strategies and rate options, and that those results will inform any recommended changes to residential or commercial charges.
Commissioners asked how Pinellas County’s plan to meter reclaimed water would affect city residents and revenues. One commissioner said metering could push many residential users to pay more or to stop using reclaimed water, reducing uptake and revenue; staff acknowledged multiple scenarios are possible and said commercial metering is a likely first step. “The fee study is going to help us identify, for example, our largest users possibly commercial,” Schmidt said.
Commissioners and staff discussed practical options: full system metering, partial metering focused on commercial accounts, and creative rate structures that avoid installing thousands of new residential meters. Schmidt said residential accounts are often similar in size, which makes a flat rate feasible, and that staff will report fee study findings and recommended changes once complete.
Schmidt also reminded the commission that FEMA and other reimbursements are changing and that a proposed bridge loan or a general fund subsidy would be considered if needed. The finance committee recommended that enterprise funds (like reclaimed water) aim to be self‑sustaining.
No formal rate changes or ordinances were approved at the workshop. Staff will return with the fee‑study results and any proposed rate changes for commission review.
