During the City Council Business Workshop held on May 27, 2025, in Palm Coast, significant discussions centered around the allocation of $1 million in impact fees and the funding strategies for upcoming city projects, particularly in fire services and parks and recreation.

Council members expressed the need for long-term planning to ensure that the city can effectively manage its budget, especially as larger projects, such as a new fire station, are on the horizon. The current funding model relies heavily on sales tax revenues, which are set to expire in 2032. This raises concerns about how the city will sustain its funding for essential services and infrastructure as the population grows and more dwelling units are added.

A key point of discussion was the use of American Rescue Plan Act (ARPA) funding, which has been categorized as grant money. Council members debated whether this funding should be recalculated in the context of impact fees, as it could slightly alter the projected costs for fire services. The importance of accurately reflecting these funds in financial studies was emphasized, as it impacts the overall budget and planning for future projects.

Public comments highlighted community concerns regarding the use of impact fees specifically for capacity increases at Fire Station 22. Residents expressed the need for transparency in how these funds are allocated, ensuring they are used solely for expansion rather than other costs associated with the station's operations.

The council ultimately agreed on the necessity of accepting the proposed impact fees and moving forward with the funding strategy, recognizing the importance of maintaining high service levels for the community's fire and emergency services. As the city prepares for future growth, the discussions underscored the need for clear direction on funding priorities to ensure that essential services continue to meet the needs of Palm Coast residents.

The meeting concluded with plans to reconvene after a brief break, indicating ongoing discussions about parks and recreation funding and other community services.