- April 29, 2024
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Though a court case could favor the city’s attempt to recoup money, the city will not pursue legal action.
The Palm Coast City Council, at its Oct. 25 workshop, decided not to seek back payments for fire hydrant fees for residents outside of Palm Coast city limits.
City Attorney Bill Reischmann briefed City Council on a court case about a similar situation that took place in Indian River County. In the case, the city of Fellsmere, which controls the water utility there, sued the county for back payment. (Palm Coast owns the water utility in Flagler County.)
Reischmann said the appeals court ruled in favor that Indian River County is a customer of the city of Fellsmere and should pay.
At the Sept. 27 workshop, the council agreed to set a monthly fire hydrant fee of $2.33 for water customers outside the city limits. That fee still applies for future bill. Hydrant availability is paid for by the general fund for Palm Coast residents, whose bills will not be affected.
Historically, Flagler County paid the water utility company for hydrant availability and upgrades. After incorporating in 1999, the city bought the water utility in 2003.
According to city documents, the city has paid its own utility fund approximately $2.84 million in hydrant fees, including $496,045 for 2011 fiscal year. But water customers outside of Palm Coast’s city limits have not been contributing to the cost of hydrants because they don’t pay city taxes. Therefore, the city claims the county has an outstanding balance of $175,595.
However, County Administrator Craig Coffey pointed out that if the county general fund is charged, Palm Coast residents would be double-taxed and other residents who are out of the service area would be charged unfairly.
Mayor Jon Netts said Tuesday it’s ridiculous for the county to think the county fire department isn’t a customer for the fire hydrant use. Nevertheless, Netts said it’s in the best interest of the city to just “write it off.”
He said residents can discuss the issue wth the County Commission if they feel it’s unfair.
