Gandalf the Gray’s morphing into Gandalf the White in Lord of the Rings is one of the great transformations in literature. One could have sworn that a similar transformation took place Wednesday evening as Palm Coast City Council member Charles Gambaro suddenly sounded awfully like former City Council member Ed Danko.
The council had been humming along–not a phrase often associated with the council this year–towards final votes on the tax rate and budget for the coming fiscal year, which starts next week. It was the second of two required hearings. The first had gone without a hitch. The second one looked like it was heading that way when, well into the 11th hour, Gambaro attempted to change the fate of Middle-earth.
Gambaro cited the steadily rising local unemployment rate, the struggles local residents face paying rent, the pending departure of Boston Whaler, the county’s largest manufacturing employer, and the slowdown in home sales. Then he asked the council not to vote for the proposed tax rate, which would decline from this year’s by 2.4 percent, but to adopt the so-called rolled-back rate, which would be a 4.4 percent decline.
The difference for homesteaded homeowners would be negligible–$13 for a $200,000 house, though the cumulative effect on the city’s budget would be significant. It would require the budget to be cut by $1 million then and there.
Gambaro minutes before had thanked the city’s finance department and directors “for all the hard work in putting this budget together.” Now he was asking them to redraw it. Danko in his four years on the council, had also been an advocate of the rollback rate, and was sometimes fanatical about it. But he never pulled the rolled-back challenge at the last minute. He would make his intentions clear at the outset of budget season, or while the budget was still a work in progress.
Council member Theresa Pontieri was stunned.
“Councilman Gambaro, what are your proposed cuts?” Pontieri asked him after hearing that the cut would equate to a $1 million reduction in the general fund’s $67.6 million budget. The general fund pays for police, fire, parks, code enforcement, streets, street lights and other day-to-day municipal functions, with employee salaries accounting for a substantial part of the cost.
“We could have sold the golf course, we could have done a bunch of different other things that would have allowed us to even out,” Gambaro said.
“Even if we sold the golf course, that wouldn’t have happened until maybe next year,” Pontieri said, her voice unusually stern. “So what are your other savings? Because you don’t get to just throw out a proposed rollback without coming to this council with the actual solution. That’s a tagline. That’s not a solution.”
“It’s my position. Thank you,” Gambaro said.
“It’s a hollow position, councilman,” Pontieri shot back.
Mayor Norris conducted a few back-of-the-envelope calculations to come up with $1 million, suggesting slashing $1 million of an intended $1.5 million merit pay raise for employees. The proposal did not get support.
Pontieri half-heartedly suggested other avenues. “We already did go with a lower percentage raise in order to better accommodate the budget,” she said. “We saw in our risk management assessment that we just got back that retaining employees is already a challenge. We currently have a salary survey ongoing. I’m hesitant to cut in that regard, knowing that that’s already a risk and they’re in the middle of that survey. So that’s a concern for me.”
Interim City Manager Lauren Johnston also cautioned against reducing the merit pay to a third of its intended amount, advocating for her employees (all city employees except the city manager and the city attorney are under Johnston’s purview, not the council’s): “It’s an all or nothing,” Johnston said. “It would not be fair to employees to do that. So we either give our merit program or we don’t.”
“Yeah, this is really unfair to the staff to do this now. The better time to do this would have been the last hearing, but here we are,” Pontieri said. Removing money from economic development did not make more sense, she found, nor did disinventing in employees. She again asked Gambaro what he was proposing. He suggested switching employee health care from PPO (preferred provider organization) to a cheaper HMO with less individual autonomy and choices (health maintenance organization). That ship has sailed, Johnston told him, as employees have already selected their plans.
The rolled-back rate is theoretically the tax rate at which the city would take in as much revenue next year as it did this year, outside of new construction. The state defines any rate higher than the rolled back rate as a tax increase. The definition is more politically than mathematically accurate, and in some regards it is an outright fallacy. For the homesteaded–the majority of local property owners–the Save Our Homes cap on taxable value increases chronically benefits homeowners even when the tax rate stays the same (which purportedly translates to a tax increase under Florida law’s definition).
More importantly, the rolled-back rate does not take inflation into account, or the loss of purchasing power. Applied year after year, especially in inflationary years, the rollback rate would cripple a city’s ability to function at the service level demanded of it by residents. Still, asking for the rollback rate remains a potent political tool. Gambaro is running for a congressional seat against Randy Fine, who bills himself as an ultra-right fiscal conservative, possibly prompting Wednesday’s turnabout.
Pontieri returned to the charge as what had started as a routine, seemingly pro forma meeting had now crossed passed the half-hour mark in a room distinctly more barometrically pressured than it had been at the start.
“Councilman Gambaro. Would you please answer my question,” Pontieri said. “Because this happens every single year, and it’s always, let’s do the rollback, because that is a good political position to take. But, but looking at the employees, the directors, of whom [many] are sitting in the back of the room and telling them, go back to your folks and tell them you’re not getting your performance-based raise, that’s the hard part. Saying I’m going to roll back is easy. I want to know, sir, what you would cut.”
“Let’s sell the golf course,” Gambaro said, immediately adding: “Listen, if you guys don’t agree with me, don’t vote for it. But I’m not changing my position.”
The budget and tax rate at the original amount the council had approved at the first hearing passed with a 4-1 vote. The hearing drew almost no audience in the chamber.
Danko’s actual voice was not far off. On Facebook, he called Pontieri the “tax and spend Queen of Palm Coast,” a demonstrably unfair accusation: Wednesday’s adopted tax rate adds up to a cumulative 11.1 percent reduction in Palm Coast’s property tax rate over the past four years, the sharpest four-year decline in the city’s tax rate in nearly 20 years, even as inflation has risen nearly 20 percent in that span. (Between 2006 and 2009 the city’s total tax rate fell by 12.9 percent, largely through reductions in the capital tax rate, only for a sudden 18 percent increase in 2010 as the city weathered the effects of the housing bust.)
The 2025-26 tax rate’s combined loss in purchasing power and reduced revenue, compared to what the city would have collected with a somewhat flatter rate, is likely to have consequences for the budget as the city continues to struggle to meet demand for services.
t.o. Doug says
Sounds to me like he doesn’t have the first clue what to actually cut to achieve a rollback. This is simply political posturing from a guy that knows it will likely pass without his vote anyway.
With that kind of gutless, style-over-substance rhetoric, Gambaro might actually be well suited for the national congress after all.
Duncan says
Gambaro failed to research his position and offered little more than vague remarks to justify his eleventh-hour change of mind. That shows poor judgment, and Theresa Pontieri was right to call him out on it.
As for Randy Fine, he’s a prime example of the broken state of today’s politics, so I’d vote for almost anyone over him. But if Gambaro’s strategy is to rely on posturing and opportunism, he has a lot to learn before he can beat Fine at his own game.
Larry says
His idea about the rollback seems insincere, because it’s impossible to sell the golf course in time for a tax rollback and he knows that. Seems he’s just trying to create a talking point for his upcoming campaign for the US House seat. Playing politics. Too bad.
Florida great! says
“Gambaro cited the steadily rising local unemployment rate, the struggles local residents face paying rent, the pending departure of Boston Whaler, the county’s largest manufacturing employer, and the slowdown in home sales.” These are all temporary pains as we transition to the Trump economy.
A true republican would know that. If anything, the city should have raised the taxes another $13 per household to tamp down on what will be the greatest economy in history!
Jim says
I suspect Gambaro is trying to position himself as a “tax cutting” candidate for Congress. If that’s the case, from my viewpoint he just failed spectacularly.
I am at a complete loss as to the type “leaders” we have from local to federal level who seem to have completely given up any premise of planning (or even thinking) of the future. If you want to cut taxes, I’m all for it. Personally, I’d prefer to not pay a penny. However, I also understand that since I expect police, fire, utilities, roads, waste pickup, and all the other services provided by the local government to support my ability to live in a first world country, I have accepted that taxes (like death) are inevitable and, unfortunately) necessary. So, as a member of the city council, if you want to cut my taxes, I’m willing to listen. However, when I listen and you do two things: (1) bring up a proposed tax cut at the 11th hour and (2) provide zero realistic option(s) as to how to cut the budget to accommodate that tax cut, you have lost your credibility with me. Mr. Gambaro, I too, would like to see (almost) anyone replace Randy Fine as our congressman and, up until now, I would have given you consideration. But now, that is now happening. You have just demonstrated that you really have no management capability and you will not get any consideration for congress. (And, if you decide to run for council, I hope the citizens of this city look at your antics and vote for (almost) anyone else.
Norris is useless as mayor. Gambaro now joins him as another useless member of the council. Pontieri is going to run for county commissioner so it certainly appears to me that Palm Coast is likely doomed to continue to nose dive into the sewer of city government. I don’t know why we can’t put up a candidate that would truly work for the best interests of this city for the entirety of their term but it seems we just can’t.
Also, regarding the comparison to Danko: I have no use for Danko and I’m glad he’s gone. That said, at least Danko made his demands for tax cutting known up front. Like Gambaro, he never had any ideas on what and how to cut the budget to support those tax cuts but, despite that, he showed more management skill than Gambaro. And, Mr. Gambaro, when you can’t clear a low bar like Danko, maybe you should seriously reconsider running for congress.
Using Common Sense says
Mr. Gambaro- We see through your pathetic attempt to pretend you care about local residents. If you actually did, you WOULD NOT keep trying to sell off OUR golf course! We did not vote for you, or your puppet master, and we WILL never vote for you. You owe the residents 30k in legal fees, and an apology. Please go away, and take your agenda with you.
Ed Danko, former Vice-Mayor PC says
Don’t be fooled by “Tax & Spend Theresa” and her phony claim to reduce taxes with a tiny millage rate rollback. It is still a tax increase that comes directly out of your pocket! While homestead properties are capped at 3%, rental and business properties are not. They pay the full amount and pass that increase onto us, the consumers and/or renters. Despite the Trump tax cuts, despite DOGE, despite Governor DeSantis’s call for no property taxes, don’t count on “Tax Queen Theresa” to cut government spending. Remember her failed attempt at an FPL Franchise Fee? How about her support for those greedy “Alfin Bonds.” And let’s not forget her repeated attempts for a 1/2 cent sales tax increase! Just a few of the many reasons not to elect her to Flagler County Commissioner.
john stove says
Why is the City experiencing “diminished buying power” and “cost of inflation”? Could it be that the idiots who currently control congress and their orange face jabroni leader enacted tariffs and we are all paying for it? Oh but at least we got a new rose garden and a new ballroom……jeeezzzz
Roger Williams says
We’ve lived here 10 years. Whoever writes the articles about Palm Coast taxes is disingenuous and deceptive. They always quote what the tax increase will be on a $200,000 home or some other nonsensical value. Please tell me where I can find a home for $200,000 home in Palm Coast. This is constantly poor reporting in regards to Palm Coast taxes.
FlaglerLive says
The figures are always based on the median assessed and taxable values, not on the market value of a house, which is vastly different. For purposes of an article on tax rate, it would be deceptive and inaccurate to make inapplicable calculations based on market values.
Standing in the Middle of Palm Coast Parkway says
The Palm Coast ‘RCW Main Extension to the Sports Complex’ project, worth $1.5 million, is currently ‘on hold’. That money was previously budgeted. Cancel that project and recoup the funds. You’re welcome.
JimboXYZ says
“Councilman Gambaro. Would you please answer my question,” Pontieri said. “Because this happens every single year, and it’s always, let’s do the rollback, because that is a good political position to take. But, but looking at the employees, the directors, of whom [many] are sitting in the back of the room and telling them, go back to your folks and tell them you’re not getting your performance-based raise, that’s the hard part. Saying I’m going to roll back is easy. I want to know, sir, what you would cut.”
The performance-based raise, that assume 1.5% is performance based. Today’s rainstorm, the swale flooded again to a level that hasn’t happened until 2025. There’s a group of City/County employees that need no raise for performance. Flooding is not desirable, yet here we are paying more every utility bill for that ? 1.5% is more like a COLA than it is performance based for anything. Inflation is the problem and this is a legacy of 4 years of Biden-Harris, Trump can’t reverse that, the best he has done is to slow it from the >3% it was for Bidenomics to the <3% of the first 8+ months of 2025.
That's why "John Stove says" comment is just as absurd as Pontieri's. My question to John Stove, where was your comment/outrage over the 4 years of Biden-Harris when inflation was the worst in US History ever ? Trust me, I'm not giving Trump a pass on it, but if consumer purchasing were to be restored to pre-Biden era Bidenomics, the economy would collapse. Just the tariffs & lowering of inflation just tenths of a point are resulting in what we are seeing for unemployment & inflation for weaker to zero consumer purchasing power. Pontieri says it's unfair ? Well the world never has been fair. Maybe the perception should be that instead of expecting raises, those folks should be grateful they still have a job & aren't Boston Whaler employees that will get the usual 12 weeks of FL State Unemployment. Just me, but who tells themselves they did a bang up job and the situation just gets worse as the nonsense of inflation continues. Some of these folks on the council are legacy Alfin approvals for any & everything that led to the higher property taxes ? Any & everything none of us ever wanted. But Alfin had a vision and here we are with that legacy of being sandbagged for growth that never was funded/grossly underfunded, "will never pay for itself". Personally, they've 3% my property every year and even if I go buy Zillow Z-Estimates the value of my property declines periodically. And yes, I'm getting hit with the same inflation that took eggs off my breakfast plate for the last 1-2 years. How can we ever thank Biden-Harris enough for that inflation alone. Harris was right when she said "we aren't going back" the inflation has at least 2 years of data to call it the "new normal" of inflationary gouging.
"Why is the City experiencing “diminished buying power” and “cost of inflation”? Could it be that the idiots who currently control congress and their orange face jabroni leader enacted tariffs and we are all paying for it? Oh but at least we got a new rose garden and a new ballroom……jeeezzzz"
And don't get me started again on the restatement of the DOL.gov numbers for the last 2 rolling years, 818K jobs in 2024, 911K jobs in 2025, both reports overstated. Retaining employees is one thing, having the money to retain them is another. I cautioned/warned that this day would come for the unsustainable, yet the last mayor did as he pleased, he even fired in a vote/coup the last city manager type ? Remember Denise Bevan, did she deserve to be unemployed ? That's one example of unfair. And here we are trying to replace a City manager & paying for that ?
When the belt tightening has to be done, the belt tightening is across the board, that would be fair ? But that doesn't seem to be a concept Pontieri grasps. If I have to go without, I expect her to go without. I don't put myself above/below her or ahead/behind her. She's either standing alongside the rest of us, or I have no use for her to be drawing a salary. There are plenty that would take her job for a few bucks less & probably be just as effective. She isn't irreplaceable, nobody on this planet. I don't miss Biden-Harris one bit. I didn't miss Bush-Cheney either. Every recession this nation has had, it was good riddance to those that aren't sharing in the economic hardships.
Pogo says
@Gambaro
… is an amalgam of characters in James Jones’s and Norman Mailer’s novels — with Trump’s Best Flavor Secret poured on top like ketchup from a pump. In other words, the boy has a bright future in a typical Floriduh roadside attraction; you know — your one and only life…
maga