The City Commission of St. Pete Beach on first reading approved Ordinance 2025-15 to authorize the city to apply for and accept an emergency bridge loan from the State of Florida Department of Commerce of up to $16,000,000 to cover operating cost shortfalls linked to hurricanes Helene and Milton.

City Finance Director Devin Schmidt told commissioners the loan is intended as a cushion for the general fund and the wastewater utility to address revenue shortfalls and cash-flow needs arising from storm impacts. "This borrowing would really serve as a cushion for the city to work through our effects, in the general fund and in our wastewater utility," Schmidt said, adding that draw requests would be made in arrears and only after the finance director documents a shortfall.

The loan is expressly for operating costs, not capital expenditures, Schmidt said. Repayment is limited to legally available non ad valorem revenues — excluding ad valorem (property) taxes — and the promissory note would be limited obligation debt under the loan agreement. Schmidt said the ordinance delegates authority to the mayor and city manager to execute agreement documents and promissory notes and sets the loan term at up to 120 months with a 0% interest rate until maturity.

Why it matters: Commissioners and staff explained the city drained reserve balances while responding to recent storms and that FEMA reimbursements can take years to arrive. Jeff Larson, the city’s financial adviser, described the loan as a no-interest tool that still requires repayment of principal and recommended budgeting for repayment within the city’s annual process. "It's not free," Larson said. "You gotta repay the principal in a bullet amount or over time; you can prepay it."

How it works and next steps: Schmidt said any unused portion would be applied to prepay the state loan and a repayment plan would follow once the city determines how much was used after fiscal year 2026. The state requires proceeds to be held in a separate account and limits use and investment consistent with the loan agreement. City staff reported that the documents have been reviewed by bond counsel and state officials and that the city expects to close the loan in August if proceedings continue.

Roll-call and action: A motion for the ordinance’s first reading carried unanimously. The city clerk recorded votes of Yes from Commissioner Robinson, Commissioner Rizznicki, Commissioner Maldonado, Vice Mayor Marriott and Mayor Petrillo.

Discussion vs. decision: The commission’s approval at this meeting was for first reading only; staff described administrative steps and delegated authority to execute loan documents if the loan proceeds. No increase in ad valorem taxes was authorized or required by this ordinance. Repayment obligations will be funded from non-ad-valorem revenue sources as described in the ordinance.

Budget and fiscal context: Staff said the loan is intended to be a short-term liquidity tool while the city awaits reimbursements and evaluates its long-term budget effects; the finance office will recommend a repayment schedule to fit annual budgets. Larson suggested sweeping monthly interest earnings off the separate loan account to use for near-term revenue shortfalls before repaying principal.

Public comment: There were no public comments on the loan at the hearing.

What remains open: Final loan terms — including the specific principal the city will borrow — will be determined by the city manager with advice from the financial adviser and bond counsel. The ordinance remains subject to final reading and adoption in subsequent meetings.