Last Updated: 8:47 p.m. with Sheriff Staly’s comments.
Facing a $2.2 million deficit in next year’s budget Flagler County Administrator Heidi Petito is asking the county’s five constitutional officers to consider reducing what had been a proposed 4 percent cost-of-living pay increase to 2 percent, a reduction that would all but erase the gap.
Most of the constitutional officers are willing to work with the county toward that end, with caveats. The constitutionals include Property Appraiser Jay Gardner, Clerk of Court Tom Bexley, Sheriff Rick Staly, Supervisor of Elections Kaiti Lenhart, and Tax Collector Shelly Edmonson.
The deficit was at $2.9 million when Petito last presented the numbers to the County Commission on June 9. The updated valuations from the property appraiser’s office, issued on Monday, raised the increase in taxable values enough to increase expected property tax revenue and lower the deficit to $2.2 million.
“As we prepare for our workshop on Wednesday, July 2, I am seeking advice on how we can close this gap,” Petito wrote the constitutionals after hours Monday. “These budgets were based on a 4% COLA (same as what the State was proposing, however they reduced theirs to 2%). One suggestion would be to reduce all the budgets to 2% COLA, thus potentially saving $1,973,705 (based on our calculations). This would leave a remainder of $226,120; however, this is [a] relatively small amount.” The parentheses were Petito’s. COLA is the acronym for cost-of-living adjustment, or raises reflecting the cost of inflation.
“What suggestions can you offer to help minimize the gap? What are your thoughts on a 2% COLA?” the administrator asked the constitutionals. She was not making a decision, only soliciting ideas–and support.
One of the charts Petito sent the constitutionals shows their requests and the difference year-over-year:
“Can you please validate the 2% reduction from your personnel services, if we were to reduce the COLA?” Petito asked above a second chart showing what each constitutional office would have to cut to reduce the COLA allocation:
The Sheriff’s Office and county government would take the biggest hit, the Supervisor of Elections the smallest. But the proportional cut would be the same across all constitutionals, whether one constitutional had a big budget increase or not.
“Considering the increase in medical insurance and inflation, I do not support a COLA of less than 4% for my employees,” Lenhart said. “I have 11 full-time staff members, and my total budget increase is less than ½ of one percent.” Lenhart’s proposed budget with that 4 percent increase nevertheless increases just 0.44 percent, or just under $12,000. Other constitutionals’ budgets all increase by substantially larger amounts.
“This is not the final product and has not been discussed with our Board yet,” Petito wrote in an email to FlaglerLive today.
The commission is holding a workshop at 9 a.m. Wednesday to discuss the budget. The agenda and supporting documents had not been posted on the county’s website as of midafternoon today. The administration has tended to keep budget documents close to the vest until the last minute or past that, at times not posting a meeting’s back-up materials until after the meeting, or providing some of the material only upon request, which prevents informed public input or, for commissioners, preparation. For example, it isn’t clear how the figures Petito sent the constitutionals are or are not affected by line items that have been subjects of pointed discussion by commissioners such as beach protection or library funding.
Edmonson had not yet turned in her budget, even though Petito’s figures showed the Tax Collector’s proposed budget going from $4.7 million to $5.2 million, a 10.2 percent increase. “I am unsure where your staff obtained the estimated figures for our office,” Edmonson wrote Petito, sending her a summary of the office’s current budget.
Further, the Tax Collector’s office is fee-based, requiring no funding from the county. To the contrary: the office typically returns about $1 million to county coffers at the end of the fiscal year, Edmonson said, as revenue exceeds operational costs.
“As we continue working through our FY25–26 budget preparation, our current estimate for personnel services is $4,902,221,” Edmonson wrote Petito today. “This figure does not include any cost-of-living adjustments (COLAs) at this time. As you are aware, the costs associated with retirement contributions, health insurance, and other benefits continue to rise, further impacting our personnel services budget. Over the past several years, we have made meaningful progress in bringing our salaries in line with market rates to ensure we remain competitive. I would hate to see that momentum lost.”
In years that lacked cost of living raises, the tax collector wrote, wage gaps developed, triggering turnover and a loss of experienced staff to neighboring agencies that offered even “marginally” better pay, she wrote. “I strongly believe it would be a mistake to balance the budget on the backs of our staff. Doing so risks reversing the progress we’ve made and could once again lead to recruitment and retention challenges. For that reason, I would support a minimum 2% COLA for the upcoming fiscal year.”
But that would satisfy Petito’s approach.
Bexley’s proposed budget is less than $5 million, but the request reflects the proportionately largest year-over-year increase (almost 32 percent). A reduction in COLA would shave over $100,000 from that. Bexley is not opposed, but cautions: “When budget season began all the constitutional officers were given guidance suggesting we concentrate on employee retention. I think this was exactly what each of us decided to do and in doing so included a 4% cola increase in our budgets,” he said. “I think this would’ve been an ideal outcome, however, it appears the increase in property values and the net revenue will not support that full increase at the current millage rate. Although I think this could be viewed as a small setback, I am pleased with the board’s efforts and I value my ongoing relationship.”
Bexley, like Edmonson, stressed the importance of continuing to attract and retain quality employees.
Gardner, the property appraiser, is entirely willing to work with Petito’s request. “That’s the one area where they can pick on me,” he said, though he doesn’t think the administration is picking on him. If anything, he worries about the dynamics between the administration and the County Commission, with some commissioners as if unwilling to see the difficulties Petito is facing.
“She’s doing what she can do,” Gardner said. “It doesn’t seem like the commission is being very nice to her. Some of the new commissioners, they’ve got an agenda to them, so I don’t know if she’s been enjoying her job.” (Commissioners Pam Richardson and Kim Carney were elected last November, Leann Pennington over two years ago.)
“I’m not here to buck the system and I understand money’s short. I’m never the problem anyway,” Gardner said. “Our budget is fairly slim. Each year no one spends any time on me because we’re very constant.” His budget would increase 7 percent, from $3.7 to $3.9 million. A COLA cut to 2 percent would shave off $67,000. “I’m bound by the state or the county on that kind of stuff. They don’t get to tell me much but they get to tell me that,” Gardner said.
Reached this evening, Staly said he was amenable to working with Petito and expected to resolve the gap. “She’s trying to balance her budget, and we are willing to work with Heidi,” the sheriff said. “My staff has been working with her staff to come to an agreement and I think at the end of the day we’ll come to a satisfactory agreement that’ll balance safety and the available funding.”
Staly’s biggest concern, he said, is preserving his ability to keep his salaries competitive with neighboring agencies. “Right now my starting pay is below Nassau County, it’s below St Johns County and it’s almost equal to Clay County,” he said. “I’m ahead of Putnam County and I’m ahead of Volusia County, but we know that St. Johns County has told us they’re going to go to $60,500 for starting pay, and that will put them significantly ahead of my starting pay.” For now, when the Flagler County Sheriff’s Office combines salary and benefits, the agency is in a good position–good enough to have a waiting list. “I don’t want to lose my competitive edge,” Staly said.
“We know it’s not a never-ending pot of money, but we all also look for any efficiencies we can do in our agencies, and that’s part of what we do. Every constitutional does that,” the sheriff said. “We can work it out. You never get everything you ask for.”
Atwp says
The city has a Republican Government, perhaps that is the reason why we have a deficit. Will get worse.
Villein says
What is the county spending it’s money on that it can’t afford to give COLAs? You shouldn’t be running your business like a 7-11 that just turns over employees.
Using Common Sense says
The County needs to trim the fat, just like we do to make ends meet. Too many unnecessarily high and overpaid executive, assistant, and deputy positions along with unheard of retirement and benefit packages. Meanwhile, the residents have no quality of life, no peace in their own homes, toxic lead and chemicals allowed to be dumped upon our homes, schools, nursing homes, and hospitals by the hundreds of pounds every single year, overdevelopment and lack of Smart Growth. Who benefits? The very individuals that sit in the positions that make the decisions that affect their own personal monetary gain! Call the FCSO regarding noise or trespass concerns? Expect enforcement of excessive and illegal nuisance noise? Show proof of increased lead levels in our water supply and air? Beg for protections of our codified rights? You will be sorely disappointed in the blatant disregard for OUR RIGHTS TO SAFETY, HEALTHY, AND WELFARE. The WASTING of our TAX DOLLARS is UNACCEPTABLE, and we DEMAND accountability!
Concerned Citizen of Palm Coast says
COLA? Never heard of it in my many decades in the workforce. Tough it out until the overspending is DOGE’d out. The County has huge salaries, unheard of retirement packages, fat benefits, and perks that are not in line with what the general public has access to. OUR tax dollars that WE work hard for at a “normal” pay with “typical” benefits. NO COLA. CUT the WASTEFUL SPENDING!
JimboXYZ says
Not enough pie to go around for everyone, nobody is going to volunteer a cut that doesn’t get the budget to the amount that’s the final number ? The only fair way to do this is to an across the board, top to bottom reductions to fit the real number of dollars there to get the job done. Can’t afford eggs ? Go without eggs, that’s what the rest of us do.
County Employee says
AS a county employee……THIS SUCKS! They know cuts can be made to MANY things. Your going to punish your employees cause you can’t manage your money? Every county employee should FLOOD the next commission meeting!!!!
And so what if there is a deficit. The US gov has been operating on a deficit for almost 20 years! Make it up next year.
FollowUpWithThis says
That’s always the Sheriff’s reasoning every year: “Well, I’m behind this county and ahead of that one, but this other county said they’re increasing their pay to this amount…” Instead of living in fear about not being able to recruit or retain your deputies, your focus should be on identifying the why.
Do you truly believe these deputies want to uproot their entire families? I know many of them don’t even live in Flagler County—largely due to your take-home vehicle policies, which are a great incentive. But have you considered the cost of gas deputies incur commuting to and from work?
And don’t get me started on the funds you siphon from the school board—funds that are specifically allocated through Safe Schools dollars. Yet somehow, you sneak a commander into the contract at a so-called “50% cost,” which ends up being over $165,000 just for that one role. I struggle to see how the operations of one individual justify a $330,000 valuation.
To make matters worse, when a deputy is out sick or on vacation, you double dip by billing the school district for an off-duty deputy to cover that shift—despite the fact that staffing that position is your agreed-upon responsibility. The amount of overtime the district was charged this fiscal year was excessive and far beyond what Safe School funding was meant to cover.
I sincerely hope Barrs runs for Sheriff in the future.
FlaglerLive investigate the funds the school district spends of SRD’s it will be on the 3pm agenda next week, and look at the contract Volusia has with their Sheriff and City Chiefs.
just wait for it says
How about anyone working for BOCC that makes over $100k, forgo COLA this year.
Jane Gentile-Youd says
Flagler County itself governs less than 30,000 residents. No control over any of the cities within the borders because we are non charter county. Now Miami-Dade County is a charter home rule county and they can make county -wide laws, ordinances, etc which affect every city within Miami-Dade. So just google the salaries of the county attorneys who represent a population of 2.8 million people. The highest paid attorney for being legally responsible for close to 3 million people earned $393,000 . Just $140,000 more than Al Hadeed who represents just ONE PERCENT the population and who costs us an additional $118,000 pr year for OUTSIDE ATTORNEYS !!! And don’t forget his ‘assistant’ Sean’s salary as well.
It is throw up time when I get this fancy pancy digital magazine showing everything that Heidi and gang want to show – I want to photo shop the current photos of the piles of concrete strewn over 8 acres of wasted good land which is degrading the entire community and has for over 13 years! Al Hadeed is still paying former county Attorney Abe McKinnon – over $100,000 to date and have not foreclosed yet on this disgusting sight at the foot of the southern most I-95 entrance to Flagler County!
Are you as sick and tired as I am of the unjustifiable wasteful squandering of our tax money our officials approve and allow while ignoring what they are paid to do? Final budget on July 14 – Bastile Day in France -Let’s have a Bastile day here and say NO to any waste we see in the proposed budget – it’s online . Read, call, e-mail and insist upon answers to any questions you have and dont sit back as always and just letting them take what they want..
Ed P says
Maybe this concept is just ahead of the curve. What curve? Check out the housing markets in the pan handle and along the gulf coast. Cape Coral is the canary in the mine. Everything cycles, including the housing market, the primary tax base for our county. The housing market is softening. The stellar fair market price growth has peaked and is starting to wilt. As assessed values drop, so goes tax revenues unless the mill rates are increased.
New builds are being left unfinished in Cape Coral. Existing Cape Coral homes are setting longer than a year, some 2. Trouble is on the horizon.
Higher interest rates, homeowners insurance, car insurance, taxes, and escalating cost of repairing both homes and auto are starting to send people packing. Florida has the highest auto insurance in the country. Increases are no longer 2-3 percent but double digits are the norm.
Personally, balancing a public budget on the backs of the employees via sub par salaries isn’t the answer.
Flagler county/ Palm Coast need to expand the tax base beyond sales tax and home owners….we need some type of light/clean industrial. A diversification of sorts.
If not industrial, lean into our beaches and develop more tourist visits.
Hope, prayers, or doing nothing is not a great strategy.
hjc says
What business in the private sector gives the cost of living raises to their employees?
Flagler county has employees that empty garbage cans and are paid over 50 thousand a year. Let’s think about that for a while.
RWBoggess says
Just a thought. Current COLA projections for Medicare/SS Retires is estimated at 2.0 – 2.5%…Why shouldn’t the county employees be limited to the same COLA as retirees? Don’t retirees face many of the same rise in expenses as county employees? Why should county (or city) employees get a 4% COLA when the retirees may get 2.5%? PLUS, they have all kinds of employee benefits as well that are not available to retirees.
Is there waste in government operations? Absolutely!!! So finding a better way to build a mouse trap AND reduce COLAs to more reasonable amounts, maybe, just maybe, the county (and cities) can save money.
Lets have some degree of fairness and equality how about it!!!
Angry Taxpayer says
I know the department that my significant other works for has only received a cost of living raise every year…which amounts to +/- 1.5%. Factor in rising health insurance and the cost of living that goes up every year, his salary does not. Take the money away from another area. Maybe the park that is going under the PC bridge?
Laurel says
As a person who has worked both the public and private sectors, I find it interesting that people are quick to go after public employees when times get tight. Inevitable.
What you need to know is, benefits, pensions and cost of living raises are really the only draw to public jobs. There are no bonuses for the regular employee. There is no climbing the ladder unless you stay there for many years. Usually, you are not fully vested unless you stay for 10 years. There is no “job hopping.”
Everyone is so much smarter than public employees, by going into private industry, with possible rapid advancement and higher salaries, but when times get tough, and they lose their jobs, or don’t get the raise expected, public employees become the enemy and the targets. All of you, who were in the private sector, and now complain about COLA, could have gone into public jobs with less pay, but you chose not to, and you know why. Griping now just sounds jealous. Once times are good again, you, again, will become so much smarter than the public employees. This is a predictable cycle.
If you want to go after the appointed people, with higher than average pay, do so. Just stop picking on the average worker. Makes you sound as if you don’t know what you’re talking about.
Getting More Frustrated says
Today 7/14 this is all going to come up again, starting at 1pm; so I hope we all are watching.
The commission says they don’t want to fund unnecessary services but they want to add animal control AND at the same time get rid on senior citizen medical care programs and layoff mechanics.
They want to limit County employee raises to 2% (probably less than what social security is giving), unless you are police or fire then you get 2% plus a guaranteed step (not merit) raise.
Then they want to add a dozen firefighters- for work life balance – but there will be NO new fire trucks or ambulances added to serve us – just an additional person on the current trucks.
They want to add another IT person – seriously, someone should ask the County employees if they need more IT!
Then why are they so afraid to do a special tax for the beach – it’s a 1/2 cent sales tax, most won’t notice and those who would feel ot the most don’t realize that basic essentials- unprepared foods, are not even taxed.