- April 11, 2025
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Calling the current state of construction in the city a "Ponzi scheme for more development," Palm Coast mayor Mike Norris said he will not support a utility rate increase — unless a moratorium on development is put in place.
"When I propose it, I'm going to say to a date uncertain," Norris said during a special workshop on Friday, March 7. "Now, I know I'm going to get pushback because, 'We can't stop building, we can't stop building.' Well, if we don't stop building, we're going to be broke and we're going to force lifetime residents of Florida and Flagler County to flee their homes because they cannot afford to live in the state anymore, plain and simple."
Palm Coast is at an inflection point, he said. The city is over $155 million in debt from the original purchase of the wastewater and water treatment facilities, which require $701 million in upgrades and maintenance through 2029 to be able to serve its current population.
"We have been in the hole since our inception as a city, as far as water is concerned, and it's ridiculous," Norris said.
On March 4, the City Council voted 3-1 on first reading to raise residents' utility bills. The increases, if the second reading passes at the council's March 18 meeting, will come as four 8% rate hikes on residents' monthly bills by October 2028. After that, residents will see a 4% increase annually.
However, with about 19,000 houses ( a figure that includes the maximum entitlements laid out in Developments of Regional Impact on the east side of the county) in the pipeline for the city, the utility rate increase won't cover the necessary infrastructure costs to sustain future capacity — only current needs.
"Everyone sees our dilemma here? We are never going to catch up, and it's always going to fall on the backs of our residents," Norris said.
When he proposes a moratorium at the council's March 18 meeting, the mayor said he would time it to a "date uncertain."
"Either the developers are going to start doing industrial growth to bring in jobs to offset our tax base, or we're going to stop building houses altogether," Norris said.
Two council members issued words of caution to the mayor regarding a building moratorium. Councilman Charles Gambaro said a moratorium would impact skilled workers and laborers in the community whose industry is tied to construction.
"Do we put them out of work by doing this?" Gambaro said. "Do we create an unemployment issue, Mr. Mayor, for our community?"
Anything that's currently in the works to be constructed — infill lots or previously approved developments — would not be impacted, Norris said. But, the moratorium would impact westward expansion.
Councilman Ty Miller said moratorium proposals come with a lot details, including questions about the legality and risk of enacting a moratorium.
"If we're tossing the grenade, what's going to be hit by that frag, right?" Miller said. "In theory, I completely understand. I just want to make sure that we're not causing more damage by doing something quick with little discussion, without understanding the full ramifications of it."
Gambaro also said he believed a moratorium decision should be separate from the utility rate increase.
Councilwoman Theresa Pontieri said she's moved for a moratorium twice in the last year or so. The city continues to charge too little for its impact fees, she said, and not collecting other "miscellaneous" fees it should have been, though she didn't say what those fees were.
"We have been crop dusted," she said. "Period. The time to take corrective action, unfortunately, leaves us with these very drastic measures."
A residential building moratorium may hurt the city, Pontieri said, but she doesn't think it's as "inflammatory" as others make it seem. Other cities have instated moratoriums, she said, adding that the city cannot afford to keep building at its current pace.
Based on the discussion, Norris acknowledged that it appeared the council was at a 2-2 vote regarding a moratorium. Residents are "mad as hell," he said. They hate the council, and Norris said he gets the brunt of it as mayor.
He described the moratorium as a safeguard until the city can upgrade its wastewater and water treatment facilities.
"If not, we're going to be sitting on the deck of the Titanic and we're going to be raising property taxes, our ad valorem, to try to cover some of these improvements," Norris said.
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