Reviled Daytona North Special Tax Will End as County Adopts Proposed 2025 Budget with Modest Tax Increase

The Flagler County Commission this afternoon adopted a proposed tax rate for next year that, absent further decreases before two September hearings, will be a hair lower than the existing rate.

County Administrator Heidi Petito, in a shift from last year, when she wanted to raise the levy–and ran into a wall of commissioners–is proposing suspending the increasingly reviled special tax in Daytona North (or the Mondex), eliminating $260,000 in revenue to the general fund that will be more than made up by tax collections. That revenue was paying for road improvements. The improvements will not cease.




“I was able to add general fund dollars and the amount of $250,000 into public works to maintain the current level of service in that area,” Petito said. The elimination of the tax is a victory for Commissioner Leann Pennington, who has been pushing for that elimination almost since her election less than two years ago. (See: “Daytona North/Mondex Residents Have Been Paying a Special Tax Since the 1980s. Is It Fair, ‘Wise’ and Worth It?“)

“Just want to say I’m really proud to serve with everyone on this board after seeing what we did with Daytona North today,” Pennington told her colleagues at the end of this evening’s meeting of the commission. “And I think I’ll go home and have a mocktail.”

Under Florida law, the county will still be levying a tax increase, because its general fund will increase by $14.2 million, or 13 percent, less than half of which is generated by new construction, which does not count as part of the tax increase.

The county’s proposed tax rate is $8.2343 per $1,000 in taxable value, down from $8.3343. The figure includes debt servicing. For a $250,000 house with a $50,000 homestead exemption, it means a county tax bill next year of $1,647, compared to a tax bill this year of $1,667, a $20 increase. But that’s assuming no improvement in the property’s valuation. Since most properties’ valuations have improved, the typical homesteaded property would see a 3 percent increase in valuation. So that $250,000 house would actually pay taxes on $207,500, resulting in a bill of $1,708, an increase of $62.




In sum, the county would officially be levying a 6.28 percent tax increase, reflective of increases on the homesteaded and the non-homesteaded: that’s the ratio above the “rolled back” tax rate it would have had to adopt if it were to keep the property tax flat, or take in the same amount of revenue next year as it took in this year. The overall county budget will be $307.8 million.

Still: for homesteaded properties–the majority of property owners–the tax increase will barely be perceptible. In inflation-adjusted dollars, homesteaded property owners of long date will be paying less next year than they were paying five years ago.

Take County Commissioner Dave Sullivan’s Grand Haven property. Five years ago he paid $2,732 in county taxes, into the general fund (and a bit more when debt service and Environmentally Sensitive Land dollars are included). This year he paid $2,972 into the general fund. If the commission doesn’t change the tax rate by September, his county tax bill next year will be a little over $3,000, a nominal increase over his bill of five years ago, but in inflation-adjusted dollars, a decrease of several hundred dollars.)

The County Commission today set only the maximum proposed tax rate that will be advertised to property owners before September’s public hearings. The commission may still lower the rate further. It may not set it higher than the rate it picked today.

The county’s various departments will account for $76.4 million, the Sheriff’s budget will account for $45.8 million, reserves will account for $41.7 million, and the rest of the constitutional officers will account for the balance of the $178.8 million out of the general fund.




The commission heard a presentation of the budget and the proposed tax rate during a workshop, adjourned, then convened a special meeting where it adopted the proposed rate. The first public hearing on the tax rate and next year’s budget will be on Sept. 4 at 5 p.m. The meetings drew no public comment.

“I feel our our early input was helpful this year in setting the goals and working through the process to come back and have itemized checkmarks that we’ve gone through these things to get to this point,” Commission Chairman Andy Dance said.

“Definitely made it a lot easier for us to work if we know what the vision and what the focus for the board is,” Petito said.

Referring to Pennington’s comment about Daytona North at the end of the evening meeting, Commissioner Donald O’Brien said: “Commissioner Pennington said it and I agree, I appreciate the comity of our discussions and the fact that we have respectful dialogue and we don’t always–we come at things from different perspectives. that’s just the way it is, we have different opinions, backgrounds and all of that stuff, but I appreciate the fact that we have good debate and dialogue and work together that way.”

[Correction: An earlier version of this article incorrectly transcribed Donald O’Brien’s reference to “comity” as “comedy.”]