Palm Coast Residents’ Utility Rates Set to Increase

The Palm Coast City Council on Tuesday approved a plan that will increase residents’ utility bills over time through the fiscal year 2029. They were presented with several potential plans of increases, opting for one which the Council generally felt would have the least impact on residents. The vote was 3-1, with only Mayor Mike Mike Norris dissenting. Under the approved plan, residents’ rates will first increase by 8.0% beginning on April 1st. The next change will be another 8.0% on October 1st, followed by annual 4.0% increases on October 1st of each year through 2028. Due to a compound structure, the total increase will amount to 31% by the time the plan is fully implemented. The rate could increase by a greater total if inflation exceeds 4.0% for the applicable periods. The majority of residents who weighed in on the change during public comment agreed that an increase was a necessity in order to address Palm Coast’s aging infrastructure concerns. The city’s water and sewage systems have become a point of critical concern, especially as the rate of residential development picks up steam and the city looks to expand westward. Carl Cote, Palm Coast’s Director of Stormwater and Engineering, outlined the city staff’s proposal to the Council. Mayor Norris attempted to leverage the utility rate issue to enact an indefinite building moratorium so that the existing infrastructure wouldn’t be further strained until it could be remedied. He threatened earlier this month to vote against a utility rate plan if the Council did not grant the moratorium. He motioned for that moratorium Tuesday, receiving no second from either of the two members who were procedurally allowed to do so. As such, he kept his promise and voted against the utility plan. Even with only four members on the Council instead of five, Norris’ colleagues were able to form a sufficient majority to pass the plan despite the mayor’s objections. As residents prepare to shoulder another fee increase from the Palm Coast government, pressure is building on the City Council to ease the cost of living burden that made some commenters on Tuesday express regret for ever moving there. Part of that mission will inevitably be expanding the proportion of the property tax base paid by commercial and industrial entities, who currently pay a relatively low share compared to other cities. Proponents for a building moratorium hoped that halting residential building would help to accomplish this, while those against the idea warned that no more new homes would scare large businesses away from wanting to open a location in Palm Coast.