St. Pete Beach city commissioners were taken aback by the revelation of significant budgetary shortfalls in the wastewater, reclaimed water, and stormwater funds, which will require the city to find millions of dollars.

Interim Public Works Director Camden Mills presented a grim overview of the Enterprise Funds, leaving Mayor Adrian Petrila “livid” that former city staff had previously painted a “rosy picture” of the city’s finances.

Mills, who has been in his position for only five months, along with new City Manager Fran Robustelli, provided a more accurate depiction, indicating that St. Pete Beach faces budgetary deficiencies of around $4 to $5 million over the next five years. This figure does not include the additional $25 million needed just to break even.

Mills’ in-depth assessment revealed how the city’s three major Enterprise Funds—supported by user fees rather than tax dollars—have been managed and budgeted. He highlighted that the reclaimed water fund fell short in replacing laterals from the private reclaimed water box to the public main, opting for patches rather than full replacements due to limited resources.

The reclaimed water fund requires an additional $80,000 annually to make full-service replacements instead of quick fixes. Additionally, the revenue collected through reclaimed water system fees is insufficient to meet expenditures, necessitating a transfer of $381,902 from the General Fund to keep the Reclaimed Water Fund solvent.

The Stormwater Fund also relies on a $381,902 transfer from the General Fund to provide services, with expenditures exceeding revenues. Planned capital improvement projects for 2025 include significant investments in outfall improvements, baffle boxes, tide check valves, and drainage improvements.

Mills noted that ongoing maintenance had not been performed on the baffle boxes, contradicting previous assurances that the systems were well-maintained. The stormwater fund’s planned expenditures for 2025 total $4,642,856, while expected revenue is $2,570,000, requiring $226,530 to provide a high-quality level of service.

The wastewater system also faces challenges, with deficiencies in pump station maintenance, manhole inspection programs, and pipe inspection programs. The wastewater fund depends on a $381,902 transfer from the General Fund to remain solvent.

A major capital improvement project includes $3.8 million dedicated to rehabilitating Master Pump Station One. Budgeted expenditures for 2025 total $15,311,225, resulting in a service shortfall of $1,602,000. The city received a $2 million grant from the Florida Department of Economic Opportunity to help defray the cost of Pump Station One rehabilitation.

The wastewater system also incurred significant storm damage, with $2,032,296 in emergency repairs to Pump Station One and $3,415,631 in damages to 20 other lift stations. In about four years, the city will need to allocate $15 million to replace the transmission line from Pump Station One to the wastewater treatment plant in St. Petersburg.

Mayor Petrila expressed his frustration, stating, “We’re not even meeting our current obligations, and somehow in the next five years we have to come up with $25 million.” He called the report “shockingly disturbing information.”

Mills suggested implementing a rate structure that adequately services the fund to make it as self-sustaining as possible.

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(Image credit: Dirk Shadd/Tampa Bay Times)