Palm Coast council considers referendum on $114M utility rate funding strategy

During the recent Palm Coast City Council meeting on February 25, 2025, council members engaged in crucial discussions regarding the city's funding strategies and potential utility rate increases that could impact residents significantly.

One of the primary topics was the development of a funding plan aimed at addressing the city's financial needs. Council members expressed relief that a preliminary plan was finally presented, as many residents had been eager for clarity on the city's financial direction. The plan is still in its early stages and will require further refinement, but it marks a step forward in addressing community concerns.

Councilman Gambiero raised important points about the potential for utility rate increases and the possibility of a new half-cent sales tax. He emphasized the need for transparency and community involvement, suggesting that any significant financial decisions, particularly those affecting everyday life, should be put to a referendum for voter approval. Gambiero highlighted the substantial financial implications, estimating that the city could require around $114 million over the next six years for various projects.

The council also discussed the implications of the existing half-cent sales tax, which is set to expire in 2032. There was some confusion regarding whether a new tax would overlap with the existing one, but it was clarified that any new tax would be an addition rather than a replacement.

Additionally, the council explored the concept of a Municipal Service Benefit Unit (MSBU) to fund services on the Barrier Island. This discussion included considerations of how to fairly assess costs based on property size and usage, particularly for larger facilities like Hammock Beach Resort.

As the council navigates these complex financial decisions, the emphasis remains on ensuring that residents are informed and involved in the process. The outcomes of these discussions will play a significant role in shaping the financial landscape of Palm Coast in the coming years, directly affecting the community's quality of life and economic stability.