- March 18, 2025
Dear Editor:
Will a moratorium on new housing help or hurt Palm Coast? At the March 7 city council meeting, Mayor Mike Norris vowed to amend the proposed water usage fee adjustments with a moratorium on new residential construction.
The crowd erupted — cheers rang out, banners waved. This is what residents have wanted for years: a halt to reckless expansion until infrastructure catches up.
This moratorium could stop up to 1,200 permits per year — a number from four years ago. In just the first half of 2023, nearly 1,000 permits were issued. According to a recent city growth management presentation, this year’s total is projected to be near 2,000. And Florida is projected to gain 1.7 million new residents in five years, with over 40,000 potentially settling in Flagler County. But not in Palm Coast, thanks to the mayor’s moratorium, right?
It’s a noble pursuit. Palm Coast’s aging water system is struggling. Boil water notices are frequent, lift stations are backing up and storms overwhelm drainage and treatment facilities.
The city’s response? Increase water fees for current residents — a proposal met with outrage. At the March 7 council meeting, Mayor Norris responded by announcing a moratorium on new construction. While other council members raised concerns, the public heard one thing: “No New Residential Construction.” Mic drop.
How did we get here? Palm Coast inherited its water system from ITT, which sold it to the city for over $200 million after years of neglect. That purchase left $155 million in debt, and now, an additional $701 million in upgrades is needed by 2029.
Where does the city find $614 million over the next four years? The budget relies on State Revolving Fund loans, utility rates, grants, impact fees, and bonds, which account for nearly 75% of the budget. But without new customers, existing residents will shoulder more of the financial burden.
With an average impact fee of $10,000 per home, impact fees from 2,000 permits contribute roughly $100 million over five years — funds that support water treatment and drainage projects. Without new construction, that revenue disappears. Bonds, too, depend on impact fees. Without them, financial stability weakens, leading to higher costs. Grants may also be at risk, as they often require proof of sustainability and growth.
A moratorium is what residents want, but is it what Palm Coast needs? Mayor Norris made a politically astute move — proposing a popular but unsustainable plan. When the rate increase comes to a vote, he may oppose it to maintain his image, while the rest of the council takes the heat. A classic political maneuver.
Ron Long
Palm Coast
