- December 15, 2025
Officials: Revisit the 2% tax after the half-cent sales tax is resolved and property tax estimates are in.
To help make up for a $2.6 million budget shortfall in Palm Coast’s $7.5 million stormwater budget, the City Council unanimously approved on Tuesday a 6% franchise fee on electric bills.
The current stormwater fee is $8 a month. The 6% franchise fee will cost the typical homeowner $6.36 per month, or $76.32 annually, based on the average residential Florida Power & Light bill of 1,200 kilowatts of usage, or $106.12. The usage portion average of $66 is what gets taxed, according to the city. The 6% franchise fee would be locked in for 30 years, according to City Manager Jim Landon.
While the 6% franchise fee passed unanimously, the ordinance for a 2% utility tax was tabled because of a motion by City Councilman Bill McGuire.
McGuire wants other financial options to develop before making a decision on the 2% tax.
The funding future is still a bit foggy, though. The half-cent sales tax, which provided about $885,000 toward this year’s stormwater budget, expires Dec. 31. Elected officials throughout the county are still weighing options on what to do with the tax.
Funding from the half-cent sales tax in the coming years is no guarantee, according to city officials. The other unknown is what the property tax revenue will be.
The preliminary values will be released by the property appraiser’s office June 1. Final values are sent out July 1.
The 2% utility tax can be enacted at any time, as long as a 120-day notice is given to the state. It must also take place at the beginning of each quarter. So, with it being tabled Tuesday, the Oct. 1 deadline will not be met, and the next possible enacting date would be Jan. 1, 2013.
The 2% utility tax would collect about $200,000 per quarter, according to Palm Coast Finance Director Chris Quinn.
McGuire’s motion to table the 2% passed 3-2. City Councilman Frank Meeker supported the delay, saying he wanted to see what McGuire presents during budget time to make up the difference.
The City Council will formally terminate the stormwater fee at its next regular meeting, June 5.
