City Council Approves Utility Infrastructure Contribution Construction Adjustments

During the February 20th City Council Business Meeting, the Palm Coast Council members approved a modified staff proposal regarding changes to the existing utility rate structure. This includes adjustments to contributions in aid of construction. The revised fee is intended to support the operation, maintenance, and expansion of the City’s water and sewer utility infrastructure, as well as to facilitate proper infrastructure for future land development.

Similar to impact fees, developers pay contributions in aid of construction as part of the development approval process. These fees fund crucial capital improvement projects like road expansions, utility upgrades, and park developments, ensuring that the City can accommodate growth while maintaining the quality of life for its residents.

During the meeting, City Council deferred any changes to the city ordinance that would change resident usage rates. However, City Council plans to revisit proposals for usage rates or base fee adjustments at a later time, ensuring compliance with proper noticing requirements for public input. Additional information was requested regarding the usage of city reserve funds, or changes to usage fees only while keeping base rates flat. 

While City Council has accepted the staff proposal regarding impact fee adjustments, the decision is still pending further deliberation. The proposal will undergo a second reading on March 5 at 6 p.m. at the City Council business meeting, during which it must pass a second time before becoming finalized.

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