The Palm Coast City Council held a workshop on Tuesday, January 13, 2026, covering major topics including a $300 million utility bond financing plan, frustrations over grant funding for water projects, recreation advisory board restructuring, and a new process for transferring city-owned canal bulkheads to residents.
The workshop, which does not include formal votes, provided council members with an opportunity to discuss upcoming agenda items and provide direction to city staff.
Utility Bond Financing Plan Reviewed
Finance Director Helena Alves and Joel Tindall from Hilltop Securities presented an update on the debt market and the financial plan for the Series 2026 utility bonds. The city plans to issue approximately $300 million in bonds to fund utility system improvements, with closing anticipated in April 2026.
Tindall explained that current interest rates, while higher than the post-COVID lows of 2020-2021, are actually near the historical average when looking back to the 1990s. He noted that by combining the new bond issuance with a refinancing of approximately $49 million in existing taxable utility bonds from 2021, the city could save an estimated $1.7 million on a present value basis.
The bonds will be repaid over approximately 30 years through utility system revenues. Tindall noted that interest rates have improved since the initial gap analysis, dropping from 5.25 percent to approximately 4.52 percent, which would result in lower debt service costs for the city.
Utility Director Brian Rosen presented the capital improvement plan, which totals approximately $590 million over five years. He emphasized the importance of addressing inflow and infiltration issues in the wastewater system, noting that during Hurricane Milton, the system processed 17 million gallons of water compared to the normal average of 8 to 8.5 million gallons per day.
“Two days after I got sworn in, Hurricane Milton hit, had 17 million gallons of water flowing through our wastewater treatment plant that wasn’t necessarily just the wastewater,” Mayor Norris said. “And that overcapacity was primarily due to the infiltration of water coming through our pep tanks and other parts of our system.”
Vice Mayor Expresses Frustration Over Grant Funding
Vice Mayor Pontieri expressed strong frustration with the city’s efforts to secure grant funding for water projects.
“I am tired of hearing about our failure to get grants. We have a failure to get grants in this department, period,” Pontieri said. “Whether it’s from state appropriations, federal monies, I know we had Representative Fine here, and I haven’t heard any updates.”
Pontieri noted that the council had approved funding for a grant writer position that remains unfilled and referenced a meeting with the Department of Environmental Protection, where officials indicated money would be available for inflow and infiltration projects.
“I implore you and our new city manager to look at whether or not we are sufficiently staffed and/or have consultants to go after money grants—I’m sorry, grants for water,” Pontieri said. “I feel like we’re dropping the ball in this department.”
Rosen acknowledged the concerns and noted that staff recently gained access to technical engineering specialists who can help prepare project definitions for grant applications. He committed to improving the department’s grant pursuit efforts.
Recreation Advisory Board Restructuring
The Parks and Recreation Director presented recommendations for restructuring the Recreation Advisory Board, which has been inactive since before COVID-19. Staff proposed reducing the board from seven members to five, with one representative from each of the five city council districts and two at-large alternates.
Council members reached consensus on the five-member structure with district representation and two non-voting at-large alternates. Vice Mayor Pontieri suggested including youth representation, and James indicated staff would explore connecting the board with a teen council recently created at the community center.
A member of the public suggested that multiple skate parks may be needed throughout the city, noting this was a topic of interest among younger residents.
Canal Bulkhead Transfer Process Approved
Land Management Administrator Virginia Smith presented a proposed process for transferring approximately 20 city-owned canal bulkheads to adjacent property owners upon request. The bulkheads are parcels of land at the end of canals, primarily located in the C-Section.
Under the proposed process, if a seawall exists, the city will determine the value based on age and condition and transfer the land to the property owner. If no seawall exists, the city will donate the land with the requirement that the new owner construct a seawall within two years, or the land reverts to the city. In both cases, the city will retain easements for access and drainage.
Smith noted the city currently has three pending requests from residents to purchase bulkheads. Benefits include increased property values, higher maintenance levels by residents, and cost savings for the city.
Council Member Sullivan suggested legal language changes to strengthen the “as-is” sale provisions and extend the survival period for closing provisions from six months to five years to match the statute of limitations for breach of contract claims.
Interlocal Agreement Discussions
Council members discussed the pending interlocal service boundary agreement with Flagler County and expressed concerns about coordination with the City of Bunnell.
Vice Mayor Pontieri called for specific timelines to be added to the county agreement for notification and response periods when development projects affect the other jurisdiction. She cited a recent situation involving a Seminole Woods development where communication between the city and county broke down due to emails going to general mailboxes during the holidays.
“I would like to put pressure on Bunnell to enter into a similar agreement,” Pontieri said. “I commend the county and our staff for being willing to enter into this type of ILA, and I am formally asking Bunnell to consider the same.”
Pontieri expressed strong concerns about Bunnell’s recent rezoning decisions and their potential impact on Palm Coast residents and infrastructure. “I am disgusted, to be quite frank. And we have no say over it. We’re silent. Or I should say we are silenced,” she said.
Tallahassee Trip Preparation
Council members discussed their upcoming trip to Tallahassee during the legislative session. Staff confirmed meetings are being scheduled with state representatives, including Greco, League, Sullivan, and Senator Wright, as well as agencies including FDOT and FDEP.
Council Member Sullivan requested that staff prepare an analysis of pending legislation that could affect the city, particularly bills that could limit home rule.
“I think 180 got by them. Really, I do. 180 became 180 at 10 p.m. the night before it voted,” Sullivan said, referring to legislation the city is currently litigating. “And we’re paying for it, and we’re litigating because of that.”
A presentation of the city’s legislative priorities will be added to the February 3 business meeting agenda to inform residents before the Tallahassee trip.
Public Comment
During public comment, resident Jeanie Duarte raised concerns about the District 4 council seat appointment, water quality, and public health data. She claimed that Flagler County has higher disease rates than comparable counties and complained about delays in receiving public records related to boil water notices and chemical changes.
Council Member Gambaro responded to Duarte’s ongoing concerns about the council appointment. “On the matter that you continue to bring up has been clearly, clearly, clearly settled by a court,” Gambaro said. “I will tell you that this council is focused on moving forward positively in a positive manner to take care of the residents’ business.”
Resident Chantal Prolinger asked the council to revisit overnight parking restrictions in swells, arguing that residents should be able to use their own judgment about when to park on swells after rain.
Other Business
Council Member Gambaro announced that members of the Affordable Housing Committee will present their bylaws and recommendations at the next meeting. He also reported on his attendance at the Northeast Florida Regional Council Board of Directors meeting, noting the council received a $400,000 federal grant for fish and wildlife studies. He added that new City Manager Mike McLaughlin will participate in the 2026 Regional Leadership Academy.
City Manager McLaughlin confirmed that health insurance discussions are scheduled for March and that staff would follow up on public participation comments.
The next business meeting is scheduled for January 20, with 14 items on the agenda.
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