City Council revises parks and recreation fees reducing costs by $456 per unit

A significant financial shift was announced during the Palm Coast City Council meeting on June 3, 2025, as officials revealed a reduction in impact fees for residential development. The total capital projects budget has been revised down from $236 million to approximately $195.4 million, resulting in a decrease of about $40 million. This adjustment directly impacts the fees charged to developers, which will now be set at $3,164 per residential unit, down from $3,620.

City officials explained that this decrease is a response to revised calculations of existing and future investments in parks and recreation assets, scaled to the projected population growth by 2035. Despite the reduction, the new fee remains on the higher end compared to similar municipalities, with some areas in Southern Florida charging as much as $6,000 per unit.

The council also highlighted the potential financial implications of not adopting the revised fees. If the fees are not implemented at the calculated level, the city could face a revenue shortfall of approximately $13 million for growth-related projects, which would need to be covered by existing residents. However, if the statutory approach is adopted, this shortfall could be reduced to about $5.6 million.

The meeting underscored the city's commitment to balancing development costs while ensuring adequate funding for essential community projects. Further discussions and comments from council members are anticipated as the city moves forward with these changes.