Who should pay more as reclaimed water strains under drought?

Pinellas County’s reclaimed water debate is no longer just about conservation. It is now about who pays, who gets priority and whether a system built decades ago still matches today’s demand.

At a work session Thursday in Clearwater, Utilities Director Jeremy Waugh told county commissioners the county is preparing to launch a new rate study this summer, with the goal of adopting an updated water rates plan by June 2027 for an October 2027 start. The new rates would be in effect for four years.

The county’s current reclaimed framework covers about 14,700 metered customers across two separate systems in North and South Pinellas. Those systems are not physically connected, a distinction that could become more important as the county considers whether one countywide rate still makes sense.

The backdrop is drought and tighter watering limits. Pinellas County is currently operating under a Phase II water shortage order issued by the Southwest Florida Water Management District that took effect Feb. 8. County officials say reclaimed water is a limited resource and heavy use by some customers can leave others without enough pressure or supply, especially in dry months. That pressure has been most visible in places like Tierra Verde and parts of North County, where residents have complained that sprinklers do not get enough water during restricted irrigation windows.

Waugh laid out a blunt financial picture. In fiscal 2025, reclaimed water rates generated about $9.5 million while overall expenses were roughly $21 million, meaning user charges covered only about half the operating cost. He said North County is more expensive to serve on a per-thousand-gallon basis because it produces and distributes less reclaimed water than South County, even though operating and debt costs are similar.

That raised one of the central policy questions of the workshop: should customers in Ozona, Lealman and Tierra Verde all keep paying under the same countywide rate when the cost to deliver water is not the same? The county can now separate those systems more easily because of its new advanced metering infrastructure, though doing so would still require technology changes.

Commissioners also zeroed in on golf courses. Waugh said seven golf course agreements were originally created to give the county a pressure relief valve for reclaimed water. Those courses receive cheaper water in exchange for accepting interruptible service and, if needed, emergency flooding.

He said the County sent about half a billion gallons to golf courses in fiscal 2025 out of roughly 6.5 billion gallons distributed overall. Commissioners signaled support for revisiting those deals as part of the next rate study, especially as the county develops injection well projects tied to Florida’s 2021 reclaimed water law, Senate Bill 64, which pushes utilities to eliminate nonbeneficial surface water discharges.

Another live issue is fairness for residents who do not have reclaimed service. Commissioners asked staff to examine whether customers watering lawns with potable water but without access to reclaimed lines should get relief on sewer charges.

Waugh said a second irrigation meter is technically possible in areas without reclaimed water, but it could be costly and complicated. He suggested the County may be able to reach a similar result by lowering the cap on sewer charges instead of installing thousands of new meters.

The workshop stopped short of decisions. But commissioners gave staff direction to study more options, including separate North and South rates, possible new tiers for heavy users, seasonal pricing and updated treatment of golf courses and commercial properties.

The larger message was clear. Pinellas is moving from the promise of abundant reclaimed water to the reality of rationing a limited supply. The next rate study will decide how much that shift costs homeowners, businesses and large institutional users.