PALM COAST, Fla. - The Palm Coast City Council on Tuesday voted to raise impact fees to help account for the costs of future development. The vote was largely expected after a prior discussion in February. Four members formed the majority vote, with only Mayor David Alfin dissenting.
The City Council chose a 30% raise on impact fees, the one-time cost developers pay to offset the effects of new construction. It’s an informal standard in development that these fees are passed on to the consumer, in effect hinting a potential lift in home costs down the line.
The Flagler Home Builders Association lent their support to the increased fees via the endorsement of Executive Officer Annamaria Long, a rare instance of major players in the industry supporting upping their own investments. Though the move was in line with the vast majority community commenters, it may face renewed discussion at an upcoming forum on housing costs.
There were two primary alternatives on the table to pay for future infrastructure strain: an increase on water and sewer rates for the residents, something that was recommended by city staff but vehemently opposed by the community, or adopting a volumetric increase that would theoretically bill the greatest users of water at proportionally higher rate and leave the rate intact for the typical user.
The volumetric approach received support from Councilman Nick Klufas, who argued it was better designed to address the strain on existing city water infrastructure where impact fees pay for the effects they cause in the future. His pleas ultimately didn’t move the needle on the final vote, which was destined to be an impact fee hike. Klufas ultimately joined the majority vote.
Mayor Alfin read a statement to justify his no vote, one which vaguely laid blame at the city’s utility department and suggested some of his colleagues’ populist-if-popular stances were tied to their own ongoing campaigns. Alfin himself is campaigning for re-election, while Councilmen Klufas and Ed Danko are vying for seats on the County Commission.
“Good governance requires guts to stand up and lead towards a well planned and managed future above the noise of short term campaign preferences,” Alfin said. “I am not fully confident that investing more money in a utility department that suddenly claims extreme circumstances to justify increases is worthy of an immediate approval.”
