The “austerity resolution” Palm Coast Mayor Mike Norris is proposing calls for an immediate hiring freeze on all positions except public safety, merging several departments, moving to a four-day workweek, suspending all economic and cultural grants and festivals, and even reducing street lighting hours, among numerous other cutbacks.
The proposal, emailed to City Manager Mike McGlothlin and City Attorney Marcus Duffy on June 8, appears heavily drafted by artificial intelligence, as even Norris acknowledges in his email, so some of the proposals are hallucinatory, as is often the case with unverified AI work, and disconnected from the reality of Palm Coast’s budget or the meaning of the homestead tax cut appearing on the November ballot.
The term “hallucinatory” is not subjective or intended as pejorative snark: it is the term AI itself and AI experts use when describing AI errors. As an IBM definition of the term puts it, “AI hallucination is a phenomenon where, in a large language model (LLM) often a generative AI chatbot or computer vision tool, perceives patterns or objects that are nonexistent or imperceptible to human observers, creating outputs that are nonsensical or altogether inaccurate.”
When AI hallucinations intersect with real-world policy, budgets, human resources and everyday services that ensure quality of life, the results can be jarring–as indeed they are in Norris’s proposal. It is not clear to what extent the Norris as opposed to AI defined the proposal’s content, though in its current form the proposal seems to be largely AI-driven. Norris himself calls it a “shell” to work on.
The seven-section resolution addresses different aspects of city government in turn. “The City shall fund only core services in this order,” Section 1 states: “1) Police 2) Fire/EMS 3) Water/Sewer operations 4) Road safety maintenance 5) Solid waste collection. All other spending is secondary.” Strictly speaking, that makes code enforcement, public works (other than roads), permitting, parks and recreation, legal services, planning, communications, facilities maintenance and even the city administration and the five council members secondary.
Section 2 is the most drastic. It calls for an immediate freeze on all but public safety positions, merging parks and recreation, a department of 24 employees, with public works, a department of 61 employees, and merging finance with procurement. Either Norris or AI appears unaware that finance and procurement are under the same 15-employee department, all reporting to the finance director. The proposal calls for eliminating two directors’ positions.
Section 2 also calls for reducing the workweek to four days and extending daily shifts from eight to 10 hours Monday through Thursday, excluding fire, police, the “water plant, and 24/7 operations.” Also: “Suspend all new festivals, arts grants, economic development travel, and consultant studies until property tax replacement revenue is secured.”
In subsequent sections, the use of streetlights would be reduced either from 11 p.m. to 5 a.m. or limited to those hours (the resolution is not clear on that count). Mowing would be reduced. No new vehicles would be bought for two years (fleet managers generally caution against that approach, citing deterioration that ends up costing more to pay for), and the city would “offer HOA park takeover program,” which suggests that homeowner associations would potentially take over public parks (again, an unlikely possibility for numerous reasons, among them liability and the cost of maintenance that homeowners will not assume.)
Section 4 points to Norris’s preamble to Duffy in his email: “as I mentioned AI doesn’t know we have a stormwater fee and there may be a few other things that aren’t applicable to the city,” Norris wrote. The proposal calls for a stormwater fee and a utility fee and “cost-recovery” for garbage collection, all of which exist outside the general fund as self-supported, fee-based “enterprise funds.”
The section also calls for turning all recreation services into fee-based operations except for low-income residents, though most already are. There is to be no new debt. All software as a service licenses are to be cancelled if they are not tied to core services.
If the resolution is approved, McGlothlin is to present an “Austerity Budget” to the council within 45 days listing services and proposed new taxes or fees.
Council members who read the “shell” proposal today reacted with reserve. “I thought we were talking about a general idea of, hey, we need to look at savings (though the premise is that we always are,” Council member Ty Miller said in a text. “Not specific measures like not fixing roads, turning off the street lights, firing people, etc.”
Council member Theresa Pontieri on Tuesday put in her own request for certain data from the administration to prepare for budget discussions in light of the potential revenue reduction. Addressing the Norris resolution today, she said: “I’ve cut property taxes every year in office and have prioritized public safety, infrastructure, and economic development—in that order. I support the continued policy of ensuring government isn’t bloated, while protecting the quality of life our residents expect and deserve. This budget cycle is no different to me.”
Norris’s email had cut and pasted from AI, including AI’s prompts on how to present the proposal to the council, with suggested statements:
“How to use it at the podium:
Lead with Section 1: “Core services first.”
Hit Section 2: “We cut admin before we cut cops.”
Close with Section 7: “No new taxes until we show you the cuts.” (The full email appears below.)Want me to add estimated dollar savings next to each line item using Palm Coast’s current budget numbers? I can pull the last adopted budget and plug real figures in.
Norris proposed the idea verbally to the City Council on Tuesday, without the written material. He did not mention the details. The council agreed to consider it, with at least some pushback from Duffy over the reach of the proposal into the city administration’s lane, and from three council members, who seemed uncomfortable with putting into a resolution parameters that define their budgeting approach anyway. But they were speaking in the abstract, since they had not yet seen the proposal, which Duffy is to craft as a formal resolution and submit to the council later this month.
“It sounds, to use a military term, you’re wanting to put out as a council command guidance for the budget,” Council member Charles Gambaro said.
“We’re going to have to do a troop to task for or staff,” Norris said, also using military terminology.
“I know the city manager’s already put out his initial budget guidance moving forward, but okay,” Gambaro said, “I think we can look at that. I don’t know how that will impact the overall budget process, we all have our priorities and certainly have our concerns and throughout the budget process we’ll lay that out.”
McGlothlin was in the difficult position of balancing a mayoral initiative that, to the city attorney, may have been crossing into the manager’s lane, with a defense of his own process and staff. By then, he had seen the full email. ” I do have full faith in the processes that are here. If not, we would not be in the good financial position that we are,” McGlothlin said, which could be conservatively translated as: let’s not unnecessarily and prematurely make a Titanic of the USS Gerald Ford (Palm Coast’s sister city).
The proposed resolution as Norris submitted it is titled in direct response to “the elimination of property tax revenue.” The Legislature passed HJR 1 on June 2, sending to the November 3 ballot a proposed constitutional amendment to raise the homestead exemption from $50,000 currently to $150,000 on Jan. 1, and to $250,000 the following year. The 10 percent cap on taxable valuation increases on non-homesteaded properties such as businesses, shops, rental properties and agricultural land would fall from 10 percent to 5 percent. The combined effect would sharply reduce property tax revenue for local governments’ general funds.
But it would not affect many other local government funds–a distinction the Norris proposal’s AI version does not always make.
The general fund pays for police, fire, parks and recreation, public works and government administration, among other services. This year, it totals $67.6 million–a fraction of the nearly $700 million city budget. But the overall budget includes autonomous funds such as utilities, garbage and stormwater, all of which operate on the fees they charge customers, and, for stormwater and water and sewer, on loans. About $300 million of the $700 million budget for example, is proceeds from a bond issue to modernize the water and sewer infrastructure. (See a breakdown here.)
Within the general fund, property tax revenue this year accounts for $43.2 million, or 64 percent, of the total. Sales and gas taxes, permitting, state revenue sharing and a few other sources account for the rest. Notably, almost 30 percent of the general fund is in reserves rather than actual appropriated spending. (See a breakdown here.)
The full unedited text of the proposed resolution as Mayor Mike Norris emailed it to the city attorney and the city manager on June 8:
Marcus,
Here’s a shell for the resolution, as I mentioned AI doesn’t know we have a stormwater fee and there may be a few other things that aren’t applicable to the city. Like merging parks and rec with public works. That may or may not be an option, that will be for the CM and staff to determine. This resolution, if adopted will let the residents know that we are taking action.
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY OF PALM COAST, FLORIDA, ADOPTING AN AUSTERITY BUDGET PLAN IN RESPONSE TO THE ELIMINATION OF PROPERTY TAX REVENUE
WHEREAS, the State of Florida is expected to eliminate or drastically reduce municipal property tax authority, which funds approximately 60-70% of the City of Palm Coast General Fund; and
WHEREAS, the City Council has a fiduciary duty to maintain core services while eliminating non-essential spending before asking taxpayers for new fees or taxes; and
WHEREAS, “Cut First. Tax Last.” must be the governing principle of this budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Palm Coast, Florida:
Section 1. Core Service Priority
The City shall fund only core services in this order: 1) Police 2) Fire/EMS 3) Water/Sewer operations 4) Road safety maintenance 5) Solid waste collection. All other spending is secondary.
Section 2. Administrative Austerity Measures – Effective FY2027
Hiring Freeze: Immediate freeze on all non-public safety positions. Vacancies filled only if public safety or regulatory compliance requires. Attrition only.
Department Consolidation: Merge Parks & Recreation administration with Public Works. Merge Finance with Procurement. Reduce director-level positions by minimum 2 FTE.
4-Day Administrative Week: City Hall administrative offices closed Fridays, 10-hour shifts Mon-Thu. Excludes police, fire, water plant, and 24/7 operations.
Eliminate Non-Mandated Programs: Suspend all new festivals, arts grants, economic development travel, and consultant studies until property tax replacement revenue is secured.
Section 3. Infrastructure & Operations Austerity
Roads: Adopt “worst-first + preservation” policy. No new road expansions. Shift budget to crack sealing and resurfacing vs full rebuilds.
Streetlights: Reduce residential streetlight hours 11:00pm-5:00am where FDOT safety standards allow. Accelerate LED conversion.
Parks: Reduce mowing frequency. Convert low-use turf to native landscape. Close low-use amenities weekdays. Offer HOA park takeover program.
Fleet: No new non-safety vehicle purchases for 24 months. Extend replacement cycles minimum 2 years. Auction surplus vehicles.
Section 4. User-Fee Shift
Stormwater: Establish dedicated stormwater utility fee to replace lost property tax funding for drainage.
Solid Waste: Move to full cost-recovery pricing. End general fund subsidy of trash service.
Recreation: Charge full cost recovery for programs, rentals, classes. Maintain fee waivers for qualified low-income residents only.
Development: Increase impact fees and permit fees to 100% cost recovery for plan review, inspection, and infrastructure impact.
Section 5. Contracts & Procurement
Contract Audit: City Manager shall renegotiate or competitively bid garbage hauling, landscaping, IT, and insurance contracts within 90 days.
Software Audit: Cancel all SaaS/software licenses not directly tied to core services.
In-source vs Outsource: Public Works Director shall report which services are cheaper in-house vs contracted within 60 days.
Section 6. Debt & Growth
No new general obligation debt or revenue bonds for buildings, expansion, or amenities until existing DRIs are built out and impact fees are collected.
Section 7. Reporting
City Manager shall present a line-item “Austerity Budget” to Council within 45 days showing $ savings per section above, and a separate list of any proposed new taxes/fees with justification.
BE IT FURTHER RESOLVED that Council will not consider any new taxes, assessments, or fees until Sections 2-5 above are fully implemented and documented.
PASSED this _ day of ____, 2026.
Mayor: ___
City Clerk: ___
How to use it at the podium:
Lead with Section 1: “Core services first.”
Hit Section 2: “We cut admin before we cut cops.”
Close with Section 7: “No new taxes until we show you the cuts.”
Want me to add estimated dollar savings next to each line item using Palm Coast’s current budget numbers? I can pull the last adopted budget and plug real figures in.
Mike Norris
CPT(Ret.), USA
Palm Coast Mayor/City Council
160 Lake Avenue
Palm Coast, FL 32164
Tel: 386-286-9725
www.palmcoast.gov
QBALL says
So a city that can afford to fix its water plants or sewage systems should already be doing most of this. I find it odd every city truck on the road is almost brand new!!!! We waste money on landscaping roadways that dont need it the city waters said land scapes on roadways why let it be grass this fl grass grows great with out all this money wasted….
Jay Tomm says
Vote no in November! It’s going to kill local economies & lead to a state tax….