Palm Coast council approves new utility rate path to fund water and wastewater overhaul

Palm Coast — The City Council voted 3–1 on March 4 to begin a multiyear rate increase and financing plan designed to fund a five‑year capital improvement program (CIP) for the city’s water and wastewater systems.

The ordinance, described in presentation materials as the recommended “scenario 3,” calls for phased rate adjustments in 2025–2027 followed by an annual index tied to a water‑and‑sewer CPI (not less than 4%) beginning in fiscal 2029. City consultants and staff told the council the plan finances about $614 million in projects over five years, roughly $415 million of which would be funded through two bond issues and the remainder through impact fees, grants, loans and reserves.

The rate path approved by the council is intended to pay for a set of projects officials said are needed to address long‑deferred repair and replacement (R&R), reduce inflow and infiltration (I&I) and add capacity — including a major expansion of Wastewater Treatment Plant 1 required by a Florida Department of Environmental Protection (FDEP) consent order.

Why it matters

Council members and city staff said the work is driven both by aging infrastructure placed during rapid growth and by regulatory obligations. Director of stormwater engineering Carl Cody told the council that the system includes 67 production wells, more than 830 miles of water main and about 700 miles of sewer main and that “the utility infrastructure is extensive and requires ongoing maintenance, repair and replacement.” Cody said the Plant 1 expansion and conversion to advanced wastewater treatment (AWT) are necessary to meet capacity needs and regulatory requirements.