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Palm Coast Approves 46% Stormwater Fee Increase, But Permanent Solution Still Elusive

| December 11, 2012

Palm Coast is looking for the money to keep its infrastructure looking the way Florida Park Drive did in 2010. (Palm Coast)

By definition, stormwater is mucky. So is its infrastructure. So is the way to pay for that infrastructure. For over a year, the Palm Coast City Council and its administration have been wrestling with that question: how to pay for the stormwater system fairly, without generating budget deficits, lawsuits or refunds to customers, such as the tens of thousands of dollars that the city refunded to big businesses like Target and Walmart, if only to preempt lawsuits. Those businesses thought the city’s previous formula was unfair. City leaders have yet to find an answer that sticks.

They’re trying again. Tuesday, the city council spent two hours discussing the latest plan on coming up with $7.5 million a year, without drawing any of the money from property taxes.

Spoiler: the overwhelming majority of Palm Coast residents—property owners of single-family homes, rental units or businesses—will be paying more.

The current stormwater fee, which appears on your water bill, is $8 a month. It’s going up to at least $11.65. Commercial and other properties will pay more, or less, depending on their square footage and their designation. Properties with an agricultural exemption, for example, may not be charged a stormwater fee, by state law.

That new fee should not be a surprise: the council approved it when it approved its budget for the current year, which began on Oct. 1. But they didn’t want the new fee to kick in until a consultant working on a comprehensive stormwater solution was ready to submit recommendations. That’s what took place today: the consultant—Maitland-based Public Resources Management Group—presented its findings. And the council agreed to let the new stormwater fee kick in.

The city is three months into it budget year. It had scheduled stormwater projects based on a fee of $11.65, which it has not been collecting. In other words, the stormwater budget is running at a deficit. That deficit must be plugged as soon as possible.

A few months ago the administration proposed paying for the whole system by way of the property tax, or through an electric utility tax. The council liked the idea. Then residents jammed the council chambers and protested. The council, in one of its sharpest turnarounds in memory, reversed itself. But the administration still had to come up with a fair way to pay for a system that is currently paid for, in part, by loans. Lenders are not kind to anyone who doesn’t pay up, or doesn’t have an assured source of funding.

That explains the urgency of the council’s action. But the council has yet to settle on a permanent solution. That’s what it discussed today, after a very long, very complicated, and at times conflicting presentation by its consultant—conflicting, only because the consultant wanted to lay out every possible permutation, each with its own alternatives, so the council could make up its mind.

“We’re all going to have to come to a judgment about which ones are the fairest ones, and we’ve got our recommendation, but I wanted to calculate these alternatives for you,” PRMG’s Henry Thomas said.

“The bottom line is,” Mayor Jon Netts said, “no matter which of those alternatives we pick, when you plug it in, you’re going to generate the revenues necessary. So that is not an issue. The issue for city council is what’s going to be the fairest and most equitable, and maybe the easiest to administer.”

For council members, it was too much to take in at one time. They’ve given themselves until February to decide, pending yet more details to come from the administration. But it isn’t just the budget clock that’s ticking. So is the clock on the city’s infrastructure, which may be likened more to a time bomb.

“This is a very large, complicated issue,” Jim Landon, the city manager, said. “We have miles and miles of swales, ditches, canals, it is a system that was built by ITT with a 30 to 50 year lifespan, and we’re between 30 and 50 years, and much of it has lived its useful life.” He cited examples and pointed at familiar images of failed infrastructure, such as the breakdown of a Florida Park Drive culvert in 2010. “When you have a structure that looks like that, it’s going to blow,” Landon said.

Even the sort of routine, rain-soaked storms that blow through the area are taking the infrastructure to such a point that sooner or later, its weakest links will fail. The Florida Park Drive crossing’s emergency repairs cost $666,000, or twice what the planned construction of the culvert had been.


“In essence, what they have presented to you is two alternatives,” Landon said after the consultants’ briefing. “If you want to charge everybody within the city, you have to do a different method, and then that’s where alternatives four, five and six come in. But if you want to just charge people within the service area, then leave it alone. That’s what we’re doing today. Really, the question is, if you broaden this out to include everybody, you have to change the methodology, and they gave you three alternatives. If you don’t want to charge everybody, then leave it alone. That’s probably the simplest way I could put it.”

Based on today’s discussion—which was done in the absence of council member Bill McGuire, who was in St. Louis on family business until this afternoon—the council is leaning toward an alternative (Alternative four, in the consultants’ sum-up) that would spread the costs more evenly, with vacant lands seeing the steepest proportional cost increase, but existing residents seeing a considerable increase as well. No one would be spared. The council is also considering a more complicated hybrid model that would attenuate some of the proposed changes in that fourth alternative.

“This is not nearly enough time for me to fully understand the ramifications of it,” Netts said. “Tuesday we’re going to have a resolution to go to $11.65. It’ll pass or it won’t pass. If it doesn’t pass, then we’re going to come back and you’ll tell me what budget you’re going to cut out of our budget.” He was referring to the administration’s infrastructure-improvement list, which Netts does not favor cutting. “Assuming that it passes on Tuesday, we start collecting $11.65, and then council can review the options of alternatives four, five or six, versus  not changing at all, and or simply allocating more ad valorem [or property] taxes.”

He added: “I can guarantee no matter what council does, there’s going to be some segment of our population unhappy.”

One of them might be council member Jason DeLorenzo, who is opposed to charging vacant properties, if the council veers toward some of the proposed alternatives. “We can’t have 12, 13-acre parcels that pay 3, 4, $5,000 a year when their tax bill is $200 or $300,” DeLorenzo said. “I mean, that doesn’t make any sense. The property isn’t worth what we’re charging them to keep it.”

Palm Coast’s stormwater alternatives: December 2012

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25 Responses for “Palm Coast Approves 46% Stormwater Fee Increase, But Permanent Solution Still Elusive”

  1. Magnolia says:

    Everything this council does is last minute, “urgent.” Mayor Netts, why have you not taken care of this long before now? This is not a new subject.

  2. Stevie says:

    Stormwater crews were out on my street 3 times in the past year. The 72 hour standing water rule was NEVER breached. We had 10 inches an hour rain in one event last year and the street flooded for 5 hours. I told the guy from the utilities department the facts and had photos to back me up, but SO WHAT. They graded the whole thing out any way. The storm runoff still floods the street pretty much the same way it always has, but it does run off a little faster.

    The problem is, we are at the top of a V aquifer in Flagler and all the water runs towards Volusia. Any water we can hold onto keeps out fresh water wells safe from salt water intrusion. Salt water is heavier than fresh water and once it moves inland it can never be pushed back because the physics just don’t work. The more we drain the more we will need more fresh water once the salt takes over and we will have to desalinate. That means we need more government and more taxes to do this. See the picture yet.

    The same group the administers the storm water has a vested interest in growing their government and there is no better way to do this than to screw the folks that don’t know any better.

    Go ahead and sit on your butts and do nothing.

  3. Diego Miller says:

    I believe the record shows we are paying the top water rates of any county in Florida. Let’s raise it even higher. It reminds me of the cheap electric bills Eisenhower promised us back in the 50′s. I promise you this, the only thing that is not going up is your salary.

  4. Diego Miller says:

    I wanted to add a note, remember no customer access restroom when you pay you big water bill. Hope Bill, with the prostate issue is not holding water while paying bill.

  5. PJ says:

    Another prime example of the City’s mismanagement. This should have been in the planning ever year to the budget.

    The only reason why you have such a jump in the fee is because the Utilities Directors should have seen this coming and added the percentage to the budget over the last few years.

    Thus helping to maintain the the system.

    I don’t mind paying to maintain but I do mind paying to fix neglect.

    Why keep people employed like this if the best our over-paid City Manager and HIS staff can really do their jobs.

    We need a change in every department within the city(like that code enforcement dept). We need a city manager who can manage and knows how to hire people that work for the betterment of the residents and businesses of the city.

    Let’s work on ousting these department heads and this over paid bloated city manager.

    Imagine, this is again the best he (Landon) can do? So just raise the fee that’s the answer !

    ANOTHER FEE, ANOTHER FEE<ANOTHER FEE………….woe is me…………………….

  6. Jack Howell says:

    I see a class action law suit filed against the City of Palm Coast if our rates go to 46% or higher!

  7. palmcoastpioneers says:

    @ Magnolia – yes, it is not a new issue. Sadly, Palm Coasts’ first ‘Showcase Golf Course Neighborhood’ infrastructure has failed – on Carr Lane the Sewer has collapsed and is finally being repaired now. For those who live in the areas built just after us, it starts with a small depression in the road, then gradually the depression grows larger and larger and larger until the depression grows and causes a *KER PLUNK” when driven over -

  8. palmcoastpioneers says:

    In the picture above, you will note the area where VAST Vats once were. That was the location of the Brigadeer Jose Martin Hernandez’s ‘ St. Josephs ‘ Plantation – one of the largest Sugar Mills in the State of Florida – a truly noteworthy historic area.

  9. Clint says:

    You FREAKS have got to be kidding !!! 20 dam* years of waiting for you *ssholes to fix my SWALE. You DARE plan to raise the fee. You people OWE me 20 years of misery and stress. Yes STRESS from fighting the alligators and anaconda’s living in my SWALE.

    • downinthelab says:

      SAVE THE SWALES !!!

    • jimmythebull says:

      On my street the swells are all flat because of parked cars and commercial trucks parking in the swells.
      Code is, ‘ no parking between 1 a.m. and 6 a.m.’ The time makes a difference?
      They are still being flattened.
      Everything this city touches makes things worse. We don’t need a city manager,just hire one of the three stooges.

  10. Jennifer says:

    oh well we could have not put up all the pretty trees and stuff and used the money for this project..”hmmm” who are city officials…and what are they doing….Start selling off the town center that has one building and a pretty fountain and nothing else..they put this out there to draw businesses…noones a coming here they can’t afford the water bill.

  11. Shark says:

    If they did the work right the first time we could probably get our rates reduced. The swale on my street was dug up three times in the past year and water still puddles for days!!!!

  12. Reality Check says:

    Here we go again, another consultant fee, do our council members ever figure out any problem on their own? Better yet, let’s postpone what we postponed before; this is why it is in need of repair, they (council) refuse to actually deal with the real problems every city faces. They should hang their heads in shame, only in Government is doing a bad job acceptable, next time my boss asks me for a solution I think I will give him a consultants card; pretty sure I would be terminated.

  13. Ken Dodge says:

    Wanna find the money fast to fix the stormwater infrastructure? Just give the folks at Old City Hall that it’s OK to go ahead and build a new one.

  14. Tired says:

    Actually, the city employs some very competant people in the Stormwater & Engineering Department. Unfortunately, Landon is a control freak that totally dominates all city work so they have not been able to take any progressive steps in regards to the stormwater infrastructure. Landons background is in planning. Typically, artists and engineers think with different parts of their brain and often will not agree. Thus has been the case at the city but Landon gets his way. Classic example is the beautiful sidewalk project in front of Buddy Taylor Middle School. Over 50% of the storage capacity for stormwater collection was filled in with dirt and pipe to put the sidewalk there. Major engineering debate their but the planners won, and that was BEFORE the significant rain events we had four years ago that completely flooded that section of Belle Terre. Can’t imagine what would happen there now with the same rainfall. And in regards to the swales being dug three times. Perhaps if the Public Works Department actually surveyed their work instead of eye-balling the projects it could be done right the first time?

  15. DP says:

    Really let’s just keep pounding the citizen’s into submission with our careless and reckless spending, and then they will sneak by the emergency “NEW” city hall as they will find some issue that’s warrants a safety issue. I’ve got an answer for the fees, why not the council members give up there monies and do the job for free, doubt there would be any takers. Before you know it the city will own a lot of vacant homes as nobody will be able to afford live here! Our city’s new slogan welcome to Palm coast home of the greedy, misguided, city government, land of the empty Home’s & Store fronts, and as a courtesy will even snap your picture and send you a fee to see it.

  16. Magnolia says:

    Mr. Landon has an open ended contract. It might be time to close it. I don’t think we can afford him anymore.

  17. jimmythebull says:

    We don’t need a city manager.

  18. Disgusted says:

    All you Palm Coast residents so positively voted for a city and now you have all the problems including your city manager and the rest of the lame brains. Just like the Flagler BOCC and City Manager. They certainly are not working for the tax payers they all have their agendas and that is taking care of all the thieves that funded their campaigns.

  19. susan says:

    Could not have said, it better. Mayor Netts, needs to be impeached along with his croannies. Can not affors to live in Palm coast any more, I am selling the house and getting out . you all need to stop spending what you all do not have.

  20. Rob says:

    Well your not paying the top dollar for storm water rates in florida, here in Marion county every property owner for each parcel of land, weather it being a 50 x 100 sized lot or acers of land, Each property that generates a separate tax bill is assessed a fee of 15.00 every year… this a a deal in comparision to Miami – Dade County’s storm water tax bill,. They do it by the squire footage of your impevious areas. roof.. drive way,. patio’s etc,.

    IN Miami – Dade County this is how its assessed below:

    How Utility fees are calculated
    Stormwater Utility fees are assigned to all developed residential and non-residential properties and are determined as a function of equivalent residential units (ERU) for residential properties and by determining the impervious area for non-residential properties.

    Instead of tacking the fee to everyone’s property tax, the Utility measures the size of a given property that is impervious to rainwater and calculates the fee based on that figure.

    That way, the Stormwater Utility is charging a fee based on the runoff generated from those impervious surfaces (like rooftops and parking lots), since this runoff is what the Stormwater Utility is going to have to handle.

    For residential properties, the Utility conducted a statistical analysis to establish an ERU. The value of one ERU is set at 1,548 square feet and incurs a charge of $4 per month for residential homes. The $4-a-month Utility fee is one of the lowest rates in the state of Florida.

    Commercial, industrial and other non-residential properties are calculated using the same ERU concept, but account for the exact footage of a facility and all impervious surfaces when determining the total monthly stormwater fee.

    To determine the Stormwater Utility fee for non-residential properties, take the total square footage of the property’s impervious surfaces, divide by 1,548 (the size of one ERU) and multiply by $4 (the cost of one ERU). As an example, a non-residential property with a total impervious area of 4,644 square feet would pay $12 per month in Stormwater Utility fees (using this calculation: 4,644 / 1,548 X $4 = $12).

    If you are billed directly by the Miami-Dade County Stormwater Utility, payments are not currently accepted online.

    You may make your payment in person at our offices in Downtown Miami located at:
    701 NW 1st Court
    5th Floor
    Miami, FL

    Or mail your payment to:
    P.O. BOX 025297
    MIAMI FL 33102-5297

    Checks can be made payable to Miami-Dade County Stormwater Utility.

    A Notice of Lien may be placed on your property for non-payment of your Stormwater Utility bill if it’s more than 60 days past due. Call the Utility at 305-372-6688 for instructions to make a payment.

    • Rob says:

      now See If you lived in that Area of florida You’d Really Love there Local Tax Rates.. Nearly or “Are” one of the highest in Florida .. On top of there Local “Optional” Sales Taxes. There Rates of Local Taxing Down there would drive you either crazy or drive you out of there,. It seems all the County and City Commissions do down there .. Most of there topics are on how to create new or raise current and new forms / types of Taxes.. is whats mostly on there minds and adgenda’s

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