It was rough going at the Palm Coast City Council meeting this morning as the administration’s budgetary options crashed against a fractured council that has yet to agree on whether, by how much, and at what price to municipal services, to cut the property tax even as any considered cut would have a negligible–and to some taxpayers invisible–impact on tax bills.
The meeting got tense and a few recriminations flew about before City Manager Mike McGlothlin and City Attorney Marcus Duffy drew out this much clarity out of the five council members:
- They want to see a budget set at the rolled-back rate. The rolled-back rate is the rate at which the city will take in as much property tax revenue next year as it did this year, excluding new construction.
- They want to see a budget set at rollback plus inflation.
- The sheriff will most certainly not get the nine deputies he requested, and there’s strong doubt whether he will get even five. Two council members are pushing an outright “pause” in hiring new deputies, at least until the November election and the fate of the homestead amendment is made clear.
Council members Theresa Pontieri and Mayor Mike Norris were interested in a budget exercise that reflected an overall 10 percent cut in the general fund, but even Norris stepped back from that, preferring to set a target tax rate and leave the rest to the administration.
The final outcome was puzzling because what the council ended up requesting after much sound and fury was not that much different from what Finance Director Helena Alves had just outlined in three scenarios.
One of the scenarios was a budget at rollback. That budget would result in no new positions anywhere in the organization (or at least the side of the organization paid for through the general fund), except for two additional sheriff’s deputies. The sheriff is requesting nine new deputies. That scenario would also have reduced the allocation to the Flagler Humane Society, though no precise number was given.
And it would reduce the code enforcement division by 11.5 positions, following Pontieri’s proposal that code enforcement no longer be a patrolling division. It would only respond to complaints. After today’s discussions, and strong opposition to that approach by Council member Charles Gambaro, changing code enforcement’s role is no longer on the table: the proposal would not have the votes, Council member Dave Sullivan said.
So Alves’s scenario would still have to be reconfigured significantly. She does not see the new proposal coming before the council again until Aug. 25. “It would be the earliest, just because we’d have to recalculate all of the allocations in the department’s budgets,” Alves said.
The budget will look more like the kind of austerity budget Norris wanted than the budget the administration is recommending. It will also leave the council very little room for negotiations: the first hearing for the budget and tax rate adoption will be the following week.
When Alves had initially outlined three scenarios–one at rollback, two at slightly higher tax rates–Pontieri, who is running for a County Commission seat, got visibly and audibly upset, using language unusually critical of the administration. “This option has been shoved down our throat as a recommended proposed budget to raise taxes. Why?” Pontieri said, “When we have expressed from this council, we don’t want to raise taxes. Why has nothing else been looked at and proposed other than this? And then, oh, let’s also do what, you know–blame it on Theresa. She wants to go ahead and cut a whole department, but nothing else has been proposed to look at cutting a level of service by 10 percent, even though I remember you saying that from the dais.”
Pontieri was referring to past references to that effect from Norris. She was especially frustrated by the third scenario. It set the tax rate at the maximum that the council approved last week (4.2296), which would amount to a tax increase that would raise the budget to $72 million, from $67 million, “while still not providing any meaningful cost savings,” in Pontieri’s view.
Things got testy between her and McGlothlin. Alves and the city manager disputed that the proposed scenarios had no cost savings. The 4.2296 scenario funds no sheriff’s deputies and no new administrative or other positions. McGlothlin said there had not been, by council consensus, precise direction on which way to go other than to seek cuts.
“What has been shared with me, ma’am, and what I have also seen in the time that I’ve been here,” the city manager said, “is that we have cut every single possible place that we can and still meet the mission. If the mission needs changing in order to be funded, then we need a mission change, and those mission changes come through the service level reductions. The only reduction that we have received to date has been via the code enforcement model change, and that’s why we bring these back to you.”
Alves reminded the council that this is the first time in 14 years that the city has not seen an increase in property values, so there is no windfall from that for the general fund. “We already know we don’t have the 10 percent that we had last year,” she said. “We don’t have the 14 percent we had a year before, so we still had to deal with the increases in inflation. We still have to deal with the increase in costs.” She outlined those, and noted that any additions to the budget were cut if they were not in public safety. That’s how the scenario ended at the 4.2296 rate.
McGlothlin went as far as challenging the tax-cut dogma head-on, as if he wasn’t worried about his job: “We’ve had four and five-fold increases in cost post-Covid. If we had simply left our millage at what it was in the 2018-19 budget year, and not even messed with it,” McGlothlin said, “we’d be over $51 million dollars to the good. It’s a combination of things. It’s responsible spending and planning, and it’s also appropriate funding. This year alone, because of this current budget year’s decision on millage, we have lost over $8 million in potential revenue, and that’s buying power over the years.”
Just as unexpected were several council members openly challenging the sheriff’s request for nine deputies, at times suggesting–as Sullivan and Gambaro did–the very notion that Palm Coast should be paying as much as it does for the additional service. “Palm Coast is paying just under 27 percent of the sheriff’s budget,” Gambaro said (the city funds 67 deputies out of 251 uniform deputies).
Sullivan said the city should “pause” the hiring of new deputies until it knows the outcome of the November amendment on the homestead exemption.
“We’ve got a big thing hanging over our heads, and that is the amendment from the state,” Sullivan said. “If that amendment goes through, and we try to fund the government at some level of service that we have right now in the coming year, the following year has become a real problem, and if we were to add nine new sheriff deputies this year, not knowing what’s going to happen with that amendment, we’re putting a tail.” By “tail,” Sullivan meant that the additional nine deputies would be an annual expense from then on.
As he has at previous meetings, he said the Hammock is not receiving a lesser quality of service in policing than Palm Coast does, just because it doesn’t have a supplemental contract.
Council member Ty Miller agreed with a pause. “I agree. I think it’s a tough decision to make,” Miller said, “but I think it’s prudent to take our time with this and, and as you said, maybe defer this decision until we know more.” He added: “My position would be to pause. I applaud all the work that the sheriff’s office does–they do a great job. Obviously, we have a very safe community because of them, and so the ask would be hold the line for one year till we know what’s going on in the future with this funding situation, at least from my position.”
It is not yet clear who may join Miller and Sullivan for a complete “pause” in deputy hirings, just as it is not clear how the council will line up for a new budget. Once the new numbers are in at the end of August, the council will have very little time to make decisions on both counts, though that leaves plenty of time for lobbying in the meantime.
Waiting patiently says
Now let’s watch for the social medial rhetoric from the Sheriff every time he doesn’t get his way…”they want to defund the police”…oh goodness. Sit down Sheriff. Sell your helicopter and get more deputies if you need them so desperately. The insurance on that thing will surely cover at least 7!
Ed Danko, former Vice-Mayor PC says
“Tax $ Spend” Theresa is always playing that “Victim Card” when she doesn’t get her own way! She was “visibly and audibly upset” because everyone knows, including her, that the only reason she finally wants to actually cut taxes is because she is running for County Commissioner! Poor, Poor Pontieri! The “Tax Queen of Palm Coast!”
Chris J says
Danko was censured based on a motion by Pontieri. He claimed he wore it as a badge of honor, but looks like sour grapes to me.
Thanks Google AI for explaining the background.
In fact, FlaglerLive was central to the story! It was an investigative report published by the blog on October 29, 2024, that broke the text message controversy in the first place. Those published text messages showed Danko actively attempting to recruit resident Alan Lowe to sue the city over a charter amendment while Danko was simultaneously representing the city in that litigation.
That specific FlaglerLive article was cited directly by Councilwoman Theresa Pontieri on the dais when she formally made the motion to censure him during the November 12, 2024, council meeting.
https://flaglerlive.com/palm-coast-council-censures-ed-danko/
https://flaglerlive.com/ed-danko-referendum-lawsuit/
Deborah Coffey says
Good idea. Pretty soon, the Sheriff will own Palm Coast if you keep giving him everything he wants.
Speed Kills says
About time someone grew a set and puts the sheriff within the same perimeters as all other departments.
I know it’s not city BUT there is absolutely no traffic enforcement in western Flagler county.
ANOTHER major wreck at Cody’s Corner again last Sunday
Rt 11 and Rt 100 are nothing but race tracks
JimboXYZ says
Just no solutions for inflationary Bidenomics of growth, more money isn’t the answer overpopulation needs to stop. Can’t count the duplexes around me for unrented Alfin/Biden era builds, For sale signs on new construction as well. Doesn’t help when the properties are grossly under utilized for rental & tax revenues & over utilized rental properties for occupancy rates & FCSO has to visit for a 911 domestic call & deescalate the village idiots that are multiplying like fertile bunnies, while trying to over run the residential with their entitlement for a fleeting fragility of barely having this months rent to dodge eviction for 30 more days. That’s Bidenomics in a nutshell, the smoke & mirrors of Biden-Harris prosperity. What a dump Palm Coast has become in the last 6 years for it all ? And with 28K houses forthcoming for westward expansion in Bunnell (6K) & Palm Coast (22K) and whatever else Flagler Beach annexation will add to the daily cattle drives, the traffic is gridlock. Shortly (August), going back to the school year for even more traffic. That’s not a challenge it’s a miserable impossibility. Locked into financial hardships throughout the community in every budget bucket, it’s what it feels like to be a trapped animal. Welcome to Alfinville, FL.
TR says
With all the new house built in the last year alone and people filling those houses. The sheriff’s department needs more deputies and they should get them. I hope these city council members (and anyone else) that are against hiring new deputies don’t ever complain if they need a deputy for whatever reason and it takes to long for one to show up. Regardless that crime is down, as soon as criminals find out that Flagler county has a shortage of deputies to handle all the complains coming into the sheriff’s office, they will start coming into Flagler and start their crime spree here.
hmmm says
the “shortage” is staly’s making. he creates units left and right and fills detective positions like deputies grow on trees. with such a decrease in crime, there is less crime to investigate leaving less need for detectives. maybe put some detectives and admin on patrol and there wont be any issues.
t.o. Doug says
I heard a lot of Councilmen running their mouths about cutting the city budget with ZERO idea of where to actually cut. Usually Pontieri is above that, but with the election coming up, she joined in. The closest to an idea any of them had was when Pontieri recommended cutting Code Enforcement, and she backed off of that position now.
The fact is, inflation continues to be a problem in this economy, so city departments have to pay more for the same things (electric, gas, chemicals) just like all of the rest of us do. In addition to that, the population keeps going up, so more services, and capacity for services, are required from them to meet the same goals.
To substantially cut the city budget, one of two things has to happen: 1. Someone identifies fraud, waste, and abuse at such a massive level that stopping it is a substantial savings, or 2. Reduction in city services and or personnel has to take place.
Unless either of those things is on the table, it’s all really just sound & fury coming from the dias, amongst Councilmen who are just trying to say they cut taxes during an election year.
D W Ferguson says
The scenario playing out appears to me that the City Council is stepping well beyond its policy making role into making operating and staffing decisions normally the purview of the City Manager. This has become the norm ever since the Bevan era .The Mayor and Council’s actions are effectively overstepping their responsibilities in line with their political aspirations and Egos
Chris J says
Not sure I understand your comment.
At the meeting on Tuesday the city manager all but threw his hands in the air saying he had not been given any direction from the council to cut the budget or even trim it down. He was concerned about service levels, yet none of these concerns were raised to the council.
Star # FCSO says
Finally! Some common sense. I am retired FCSO Deputy. This sheriff has done a great job of using fear to manipulate everyone. Please look back at every single Sheriff going back to Manfre’s first term…2001. Every election every Sheriff has boasted that they lowered crime. From 2001 through 2013 we had very few raises and our budget was closely watched. The biggest raise we had was under Flemming’s first term. Then comes Staly. He still boasts like every other Sheriff before him that he lowers crime every time he is up for reelection BUT his budgets and demands for money have skyrocketed like the national debt. He can do more with less! He does not need helicopters, new shiny boats, more swat toys….his spending is outta control and his deputies (excluding new hires) are making much more than most Flagler residents. If this Sheriff can not control crime in Flagler County without bankrupting its citizens than we need a new Sheriff! This is not about public safety it is about greed and power.
Standing in the Middle of Palm Coast Parkway says
The problem with Palm Coast and Flagler County is that none of the elected officials have a clue about how to build the tax base. They all want to lower or freeze taxes and fees, but they don’t seem to understand that if they brought more businesses that pay taxes to the County and City, they could freeze or lower residential fees and taxes. More businesses other than storage facilities. The school district and hospitals being the major employers is a sign of this. Maybe this is a byproduct of electing lawyers, real estate salespeople, and small business owners? And the occasional grifter. Reading the interviews with the candidates is sad because it really doesn’t seem like anyone has a clue about how to make things better by running for office.
Rwboggess says
Since the inception of the City of Palm Coast, there has NEVER been a Democrat majority on the City Council. That should tell everyone something. Where this city is today is something that the Republicans need to own up to as it has been in political control of this city from the beginning. They are the ones that have allowed growth to get out of hand; that has failed to encourage commercial development; and that have failed to provide for the employment future of our children within Flagler County.
Rather than governing in the interest of the people and the community they have appeared to govern based on their own personal benefits, the benefits to their party; and the benefits to the developers. That is what the problem is today. Politician do not serve the people; they serve the party (Democrat and Republican) and turn a blind eye to the people that are paying their salaries and benefits.
Gail says
I don’t see which party the leaders are in, as having anything to do with coming up with solutions for our community. What does democrat or republican have to do with this economy? I look at cities and states run by Democrats, I don’t see that they have any answers.
If anyone thinks they can bring new business into this city or county, why don’t you bring it to the podium and tell us your ideas?
We’ve been talking about bringing new business to this county for 25 years. We had the Flagler economic development council, aligned with the chamber, and they were given a big budget; the result is what we have today.
Why don’t you tell us your thoughts on how to bring new business here?
The only thought I have on this subject is to remind the Council – let The administration do their job, they are the professionals.
Just give them the budget, tell them how much to cut, let them decide where the cuts should be and bring it back to you.
Mike C says
Does Palm Coast even have an Economic Development Director or Department?
FlaglerLive says
Craig McKinney was the economic development manager for Palm Coast until last Friday, when he accepted a position in South Florida. He’d been with the city since March 2024.
The dude says
Not much for him to actually do here, considering every new business that isn’t a chain restaurant is met with angry resistance here.
JimboXYZ says
At one point, over the last 5 years, there was talk that the Economic Development government service would be dismantled for just being ineffective at attracting anything more than Boston Whaler that is now gone. There was a woman in the hot seat/under fire for being ineffective for attracting commerce to Flagler County/Palm Coast. America is collective of one Broke Azz B*tches for the hair brained incompetent Ponzi Schemes of growth, Visions of 2050. Those extensive lists of the grossly underfunded/completely unfunded projects of all the self proclaimed Ivy League economic & finance genius & gurus that want to spend everyone else’s retirement money. Like it’s a reserve to be stolen from for their next gig of employment opportunity. Just makes me sick in the pit of my stomach the next proposal of false hope that anything much improves for even a short term relief.
The last time it happened per a Google Search was under Obama-Biden in 2011. Also after the Bush-Cheney era of waste, fraud & abuse for those inflationary-bailout economies.
https://flaglerlive.com/enterprise-flagler-is-no-more/