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Sewer rate likely to change for condos

By PAUL SWIDER
Published September 11, 2005

ST. PETE BEACH - Seeking to correct a 10-year-old inequity but also enhance the ability to maintain its sewer system, the city may soon start charging condominium owners more for sewer service even when their units are empty.

"It's basic unfairness," Commissioner Ed Ruttencutter said during a commission budget workshop. The change to a per-unit rate as opposed to a per-complex rate could also net the city at least $60,000 a year to fix a notoriously leaky sewer collection system.

"That would be a nice little addition we could use to cure a lot of little problems," Ruttencutter said.

The city charges single-family homes a base rate per month for sewer service that includes 3,000 gallons of flow. The owner pays an additional charge for each 1,000 gallons. Rates are based on the metered amount of water consumed, assuming that what flows in will flow out.

Unlike houses, which have their own meters, condos often have a single meter for an entire complex. If the complex is mostly empty because residents are living temporarily out of state, the complex pays a low rate because the flow through the meter is low. The owner of an empty house, though, would still pay the base rate.

"There's really no justification to be treated differently from single-family homes," said Commissioner Deborah Nicklaus. "There are part-time residents who live in houses, too."

City Manager Mike Bonfield said that having every unit pay something regardless of flow is simple fairness because owners of empty condos should have to pay their share for the upkeep of the system even when they're not using it so the system will be available when those part-time residents come back.

The city charged a base rate plus usage on every living unit until about 10 years ago, said Finance Director Steve Gallaher. The city had difficulty then trying to find and keep track of actual living units, particularly garage apartments and other conversions, so it went to the current system. Now, seeing the inequities it has caused, commissioners are including a shift in this year's budget proposals. The commission will hold a first public hearing about the proposed budget Sept. 14.

Ruttencutter and others had asked the staff to analyze the situation over the past several months. Gallaher chose a random sample of nine condo complexes and determined that reverting to a per-unit charge for only those would increase city revenues by $60,000 a year.

"We hadn't heard of that," said Jeff Trull, president of the homeowners association of Starlight Towers, one of the condo complexes in the city's study. Trull said that most of the residents aren't around at this time of year. He thought the change made sense.

"Some of them will say they shouldn't have to pay when they're not here," he said, "but there should be some kind of carrying charge. It's a utility that's being provided for them. If you want that facility, there should be some cost."

The city's analysis suggests that rate increases would depend on the complex and its historical averages but would likely be a maximum of $15 a month for any one condo unit.

Other cities along the Pinellas County coastline already charge per unit for condominiums and other multiunit dwellings. Only Clearwater charges the way St. Pete Beach does right now. City officials there say that any inequity evens out over time because a condo complex has much larger flows when full and so it pays large bills during peak season.

Part of the problem in St. Pete Beach's case is its antiquated collection system. When sewer pipes crack, groundwater can flow into them, meaning the city has to pay to treat more sewer water than residents actually produce. Because residents are charged based on the water that comes into their homes, that extra cost comes from general city funds, not customer bills. City officials hope that changing to the new system will give them extra money to fix leaky pipes, reduce overall costs and possibly bring all residents a reduced sewer rate. The current budget incorporates the new rate system for a year, after which the city will study its effects.

"This is something the commission has talked about for years," said Mayor Ward Friszolowski. Another concern is the budget cycle of condo associations. Commissioner Deborah Martohue said that most associations are legally required to present their members with an annual budget for such expenses. If the city is to change its billing scheme, she said, it needs to inform these associations soon or the change will create havoc in their budgeting process and anger residents.

"I think that is something that will bring the associations out in force," she said.

[Last modified September 11, 2005, 01:12:04]