Palm Coast council approves revised utility-rate plan amid debate over moratorium and infrastructure funding

The Palm Coast City Council voted 3-1 on March 18 to approve a modified utility-rates and charges plan meant to fund water and wastewater repairs and capacity work while avoiding a second bond issue in the near term.

The ordinance at its second reading — described to the council by Carl Cody, director of stormwater and engineering, and Murray Hamilton, a consultant with Raftelis — will update charges for services effective April 1, 2025 and implement a multi-step rate increase schedule the council adopted as modified plan option A.

The vote followed hours of public comment about flooding, stormwater swales, utility hookups and the pace of residential approvals. Mayor Norris moved a separate measure to place a citywide moratorium on new residential construction but that motion received no second and died on the floor.

Why it matters: City officials say the utility system must be funded now to meet regulatory requirements, maintain service and support future economic development. Opponents said earlier, higher rates or an immediate moratorium would harm residents and local contractors. Supporters urged action to avoid larger costs and regulatory violations in the future.

City presentation and council options Carl Cody summarized staff recommendations and a modified capital-improvement plan (CIP) developed after council direction to search for ways to eliminate a proposed second bond. Cody said the city already increased utility impact fees effective May 1, 2024 and,…