Pros of the Charter Amendment if approved:
- Increased Flexibility: Allows the city to use various funding methods like lease purchases related to public-private partnerships, making it easier to finance large projects.
- Faster Project Completion: Access to alternative funding could speed up important infrastructure improvements.
- Shared Costs Across Generations: Ensures future residents who benefit from projects also help pay for them, promoting fairness.
Cons of the Charter Amendment if approved:
- Potential for Increased Debt: Expanding funding options could lead to higher debt levels if not managed carefully.
- Risk of Mismanagement: New funding methods, like public-private partnerships, may carry risks if not properly overseen.
- Reduced Direct Control: Public input may be diluted. The financial decisions would move from direct public input (referendum vote) to indirect representation (vote of the city council). Voters would lose the ability to vote on unfunded bonds.
Since Palm Coast's incorporation in 1999, the City Charter has restricted the City Council's ability to enter into contracts without voter approval. This limitation has led previous city leaders to adopt a "pay as you go" approach for capital projects and infrastructure, requiring the city to save millions of dollars before beginning a project. This approach has caused projects to take years to complete and often resulted in higher costs. While the city can borrow money for specific projects with voter approval through a referendum, this process can be costly and slow, as referendums typically only occur every two years during the general election. This delay can prevent the city from taking advantage of favorable market conditions, potentially leading to higher expenses.
Additionally, the current limitations prevent the City Council from entering into lease-purchase agreements, including leasing vehicles, further constraining the city's ability to utilize financial tools effectively. The amendment would provide more flexibility to respond to urgent needs and make financially sound decisions.
The proposed amendment seeks to change this approach. By allowing the city to address critical needs more efficiently, current residents can benefit from the improvements while future residents share in the cost. Importantly, this change does not grant the city council unrestricted spending power. Voter approval will still be required for any borrowing against property taxes, ensuring that spending remains controlled and responsible.
The “pay as you go” approach is a lot like a family having to save up to pay for a new house in full instead of taking out a mortgage and spreading out the cost over many years.
- It’s not sustainable for a growing city
- It’s expensive due to rising costs
- It causes delays in projects
- It leads to aging infrastructure and deferred maintenance
- It places the burden on current taxpayers, rather than including future residents
The current charter language limits the City’s ability to enter into lease-purchase agreements without voter approval. These restrictions can delay the City from accelerating projects, addressing emergencies or critical needs, and can lead to higher costs.
Public-private partnerships (PPPs) and lease-purchase agreements can be incredibly beneficial for cities looking to complete projects and make improvements without placing a heavy financial burden on taxpayers. These innovative funding approaches allow cities to access private sector resources, expertise, and financing, which can accelerate project completion and ensure higher-quality outcomes.
Here's how they help:
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Reduced Financial Strain: By utilizing PPPs or lease-purchase agreements, cities can spread the cost of projects over time rather than paying all of the capital upfront. This helps manage budget constraints and avoids tax increases, making it easier to complete essential projects while maintaining fiscal responsibility.
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Faster Project Completion: PPPs often lead to quicker project delivery as private partners are incentivized to complete the work efficiently and on time. This can be especially valuable for infrastructure improvements or emergency repairs that need to happen quickly.
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Access to Expertise: Private partners bring specialized skills, technology, and knowledge that cities may not have in-house. This results in more innovative and efficient solutions to infrastructure challenges, enhancing overall quality.
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Long-term Sustainability: Lease-purchase agreements allow cities to gradually acquire ownership of assets, such as equipment or facilities, while benefiting from their use during the payment period. This makes it easier for cities to manage their resources while still enhancing public services.
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By leveraging these tools, cities can take on significant projects—such as building parks, upgrading infrastructure, or improving public safety—without being constrained by immediate funding challenges.
Public Safety Currently, it takes the City around 20 years to accumulate enough impact fees to construct a new fire station. This lengthy process hinders our ability to maintain the prompt response times our residents expect. New fire stations are essential for both current and future residents, but under the current system, we're only able to build once we've saved enough funds from existing residents. This delay in addressing critical needs can be costly, as construction costs have historically increased significantly due to inflation over the past decade. By building fire stations now, we can improve emergency response times and implement lifesaving measures sooner, benefiting current residents while ensuring that future residents contribute to the cost. For instance, we would not be able to build Fire Station 26 if we did not receive $5 million in state appropriations for this project.
Parks Our Palm Coast Community Survey consistently shows that residents highly value our parks and trails. However, the current amenities are not sufficient to meet the needs of all residents. There is a strong demand for a new pool and a sports complex, especially as our youth programs continue to grow. With our existing pool nearing the end of its life and field space already inadequate, these new facilities would greatly enhance our recreational offerings. This Charter Amendment would provide the necessary tools to improve the quality of life for all residents. Despite being identified as a priority in the 2008 Parks Master Plan, we have been unable to deliver a new pool due to funding constraints, and the need remains unmet in the 2023 community surveys.
Jobs By partnering with private enterprises, we can attract new businesses, create jobs, and strengthen our local economy, securing a prosperous future for Palm Coast. Removing the lease-purchase restriction would give the city the flexibility to collaborate with the business community more effectively. For example, the city owns a parcel of land zoned for industrial use, which could be developed into a commerce park. Our options are either to sell the land for someone else to develop or, if the amendment passes, to lease the land to a private entity to build the commerce park. This approach would save taxpayers the expense of development while still providing the economic benefits of a new employment center.
Infrastructure Public-private partnerships can be leveraged to fund essential infrastructure projects that benefit the entire community. These collaborations would allow us to modernize and expand services, ensuring our infrastructure keeps pace with the city's growing needs. The Charter Amendment would enable us to make these improvements now, with future residents contributing to the costs, ensuring that those who benefit from the infrastructure also help pay for it.
Intergenerational Fairness refers to how the responsibility for paying off debt is shared between current and future taxpayers. Without intergenerational fairness, current residents may end up paying taxes for assets they don’t benefit from, which can lead to a sense that their tax dollars aren’t being well spent.
