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City backs 3‑year phase‑in of wastewater rate increases; commissioners also seek county takeover analysis
Summary
A consultant presented a wastewater financial plan requiring substantial rate increases to fund a $58M capital program; the commission approved a 3‑year phase‑in option that rebalances charges toward commercial meters and asked staff to continue talks with Pinellas County about possible system transfer.
The commission heard a detailed wastewater enterprise fund forecast and rate design alternatives from consultant Sean Ocasio. The baseline analysis showed the system currently cannot fully fund operating and capital needs; the consultant proposed revenue increases (roughly 16% in early years under a baseline plan) and two phase‑in options that rebalance cost across customer classes by increasing commercial base charges scaled to meter size.
Ocasio explained the equity rationale: "When we looked at it on a by‑class basis...residential average cost per thousand gallons was about $34.62, multifamily about $45.42, and commercial about $25.42," which suggested commercial accounts were underpaying on a cost‑per‑unit basis. The recommended restructuring would scale commercial base charges by meter size and bill commercial classes for all flow rather than providing a 6,000‑gallon minimum embedded in the base charge.
Commissioners expressed concern about impacts on small businesses and restaurants. Commissioner Marriott said the city should help small businesses understand meter sizes and potential mitigation (including meter downsizing) and emphasized outreach. Commissioner Causey and others noted a parallel process to explore whether Pinellas County might assume operation of the city's wastewater system; staff confirmed those conversations are underway and that a county takeover would subject customers to county rate structure. After deliberation, the commission directed staff to adopt Alternative 1 (3‑year phase‑in), continue county discussions, and monitor small‑business impacts during implementation.
