City outlines $415M utility plan with bond expansion for wastewater and water projects

The Palm Coast City Council meeting on March 4, 2025, focused on significant infrastructure developments, particularly in the utility sector, as the city prepares for a substantial capital improvement plan (CIP) that could reach $415 million. The discussions highlighted the need for a bond expansion to support these projects, with a timeline set for February 2026.

Council members expressed concerns regarding the planning and financial implications of the proposed bond, particularly given the city's reliance on long-term loans for infrastructure improvements. Questions were raised about the adequacy of past rate studies and whether they anticipated the current expansion needs. The last comprehensive rate study, conducted in 2018, did not foresee the necessity for a wastewater plant expansion, which has now become critical due to rising construction and operational costs.

The council discussed the importance of planning for future capacity needs, emphasizing that the city should ideally begin preparations when utility systems reach 80% capacity. Current projections indicate that major expansions may not be necessary until 2035, barring unexpected growth. However, the council acknowledged that ongoing maintenance and smaller capacity projects would still require funding.

Several specific projects were outlined, including the construction of a new wastewater treatment facility and upgrades to existing plants to enhance capacity and efficiency. The city plans to utilize impact fees and federal funding to offset some of the costs associated with these projects, potentially reducing the need for extensive bonding.

The meeting concluded with a commitment to revisit the financial strategies and planning processes to ensure that the city can meet its future utility demands without over-reliance on debt. The council aims to present a more comprehensive long-term plan that addresses both current and future infrastructure needs while maintaining fiscal responsibility.