The Palm Coast city administration is proposing to the City Council to keep the same tax rate next year as was adopted last September–$4.2570 per $1,000 in taxable value, or what would equate to a $638 property tax bill for a $200,000 house with a $50,000 homestead exemption.
The administration is presenting a $61 million general fund budget to the City Council at a budget workshop Tuesday morning. The council will decide on a maximum proposed tax rate for next year, ahead of public hearings later this summer, when it could adopt a rate lower than that decided now, but not higher. The council is expected to formally adopt the proposed rate at a meeting next week.
The $61 million general fund budget would include an increase of $5.6 million over the current budget but no increases in city staffing paid through the general fund. That staffing stands at 271. It does not include as many or more employees paid through other funds that don’t depend on property tax revenue or the general fund, such as the utility fund, the stormwater fund and building permitting.
But there’s an important caveat to the total number of personnel: while the administration does not propose adding personnel, it hired several employees halfway through last year, paying them for part of the year, and is now including their costs on a full-year basis. That’s raising administrative costs in different departments. For example, the city budgeted for additional firefighters on Oct. 1 and on April 1, according to the plan submitted Tuesday.
A new community development director a month into the fiscal year, plus two customer service representatives added in April. Next year, the budget will reflect their full year’s salary, even as the total number of personnel stays at 271 in the proposed budget. (An earlier version of this article incorrectly stated that a planning manager position was added on Jan. 1. In fact, it was cut due to last year’s decision by the council to go to rollback.)
By far the single-largest line item increase in the budget would be for public safety, starting with policing through the city’s contract with the Flagler County Sheriff’s Office, and the addition of nine deputies to the city’s contract, for a total of 57. That would push the city’s policing budget from $7.4 million to $9 million, a 21.6 percent increase. (The $9 million includes the cost of one deputy paid out of the Town Center Community Redevelopment Agency fund, which is outside the general fund.)
The increase includes contractual obligations for existing deputies. The fire services account for the next-largest increase, going from $13.2 million to $14.4 million, a 9 percent increase that includes that full-year cost of the three firefighters added halfway through this year. The increase also includes contractual obligations and increases in operational expenses.
Though the tax rate would remain the same, it would be considered a tax increase under Florida law, because the city as a whole would generate $5 million more in property tax revenue, thanks to a continuing surge in new construction and increasing property values. Most homesteaded property owners would not see their tax bill rise. To the contrary: because of the Save Our Homes cap limiting valuation increases to 3 percent, and when adjusted for inflation, the typical homesteaded property is paying less in taxes today that it did five years ago. The combined public safety budget increase accounts for half the overall increase in proposed city expenses.
Public works, parks and recreation account for another $1.1 million, with other, lesser expenses spread through other departments.
As it did last year, the administration may face a difficult road in convincing at least some council members to keep a flat tax rate. One of them, Ed Danko, who is running for a County Commission seat and has adopted a dogmatic, no-additional-tax approach, has spoken repeatedly about wanting to go back to rollback again this year.
The rolled back tax rate means that, excluding new construction, the city would take in the same amount of property tax revenue next year as it did this year, sparing taxpayers a tax increase. The County Commission has adopted modest decreases in the tax rate without going so far as adopting the rolled back rate, because demands on the county budget–like demands on the city budget–have been building, not decreasing. The city’s budget is calculated on the addition of some 6,000 residents, for a total of 107,000.
New residents, renters and commercial properties that do not benefit from the 3 percent Save Our Homes cap on increases in taxable valuations feel the effects of higher tax bills much more than homesteaded property owners.
Take City Council member Nick Klufas’s Southlake Drive homesteaded property. He paid $813 in city taxes in 2019. This year he paid $832. In inflation adjusted dollars, that’s $142 less than he paid in 2019.
If the council kept the tax rate the same next year, Klufas would pay, at most, $864, but probably less. It would still be well below what he paid in 2019, in inflation-adjusted dollars. If the council were to go to the rolled-back rate, his tax bill would drop from $832 to about $810. Klufas is also running for a County Commission seat, but he has tended to avoid dogmatism on taxes.
PB says
Please vote for the increase. Then even more of us will vote your happy asses out!!!!!!!!!!!!!
Celia Pugliese says
Why fire services increase we have had no wild fires!. Administrators as usual wrong! They are always asking their wants and not their needs! We need change!
vance hoffman says
I never thought I would run for an office in public service but these politicians have me thinking g about it. No more taxes ,no more building bring salaries back in line with the budget.
John Stove says
Celia…that is a very shortsighted comment on your part….
Wildfires do not equal budget increases. Additional coverage territory for structural fire protection (as in new developments and/or population density) equates to more personnel and more equipment to maintain fire protection ratings and response times.
Yes, future developments and bigger populations require more firefighters, more equipment and more money to run and maintain everything.
Celia Pugliese says
John not shortsighted, our fire department is the largest budget item in 2024 city budget over 13 millions, Google it! Was also the largest in 2023. Questionable in comparison, an example Chandler AZ the largest budget item is Public Works and larger than Fire there is Police, which both needed here. Chandler AZ: General Government(1) $ 49,376,055 $ 55,676,753 12.8 %
Community Services 30,304,334 33,694,050 11.2 %
Development Services 10,745,501 11,783,576 9.7 %
Information Technology 16,084,234 21,304,000 32.5 %
Management Services 8,725,854 16,070,676 84.2 %
Neighborhood Resources 35,117,788 36,923,589 5.1 %
Non-Departmental 115,576,324 137,274,821 18.8 %
Public Safety – Fire 39,418,971 44,819,411 13.7 %
Public Safety – Police 84,134,636 93,645,766 11.3 %
Public Works & Utilities 103,214,965 111,638,664 8.2 %
Total Department Operating $ 492,698,662 $ 562,831,306 14.2 %
Equip/Tech/Vehicle Replacement 4,967,053 11,983,298 141.3 %
Debt Service 72,317,788 75,546,185 4.5 %
Contingency & Reserves 185,291,629 149,444,982 -19.3 %
Total Operating $ 755,275,132 $ 799,805,771 5.9 %
Something is wrong with local administrations. Also you said it “future developments and bigger populations need more services” then they need to pay for it, the future developments not the existing residents.
Too Funny says
ok. so we are going to compare governments that are 2,000 miles apart from one another. Too funny.
Callmeishmael says
Their total budget is nearly twice ours. How much comes out of its general fund? They also have a state income tax in addition to property taxes, so you’re kind of comparing bananas to tangerines.
atwp says
Republicans.
Cmon man says
Can I vote for a turn lane to be added at SR100 onto Seminole Woods by the Racetrac??
Deborah Coffey says
I’d like to know what percent of the total budget of Palm Coast and Flagler County goes to the Sheriff’s Department. It seems the Sheriff is always wanting more deputies and more toys…and getting them to the tune of millions of dollars.
Tony says
Right on Deborah – Staly is the gift that keeps on giving – I guess he needs more deputies to patrol I95 – I see them out there all the time, When was the las time you actually saw any of them doing enforcement in Palm Coast? You might see a parked empty car every now and then. It would be interesting to see the statistics regarding summons and ordinance violations issued in Palm Coast.
Greg says
Staley should NOT be on 95, that is a state road and the state police should be doing that job. Up north, the sheriff patrolled county roads and the state police attended to the state roads. Stop Staley from building his empire.
CCarlaarla Conrad says
Deborah, Greg & Tony — Does anyone oversee the Sheriff’s Dept??? Does seem to me that increasing number of deputies, staff, vehicles, equipment,etc., does not equate to increased services, attention to the needs of the City of PC and residents.
Villarreal says
July 2nd and 3rd, through the holiday weekend. Amongst others
R section concered says
I would like to know why we pay the county and city taxes for the sheriff. Why there is a deputies sitting in there cars for hours in the same spot. When they finally quit watching YouTube they pull some over and 6 deputies show up. All these sheriff’s try to outdo each other on our dime. Cost of living raises plus merit raises free vehicle to take your kids to school and shopping uniforms provided. Time to get into the real world. And cut the fat from the department like the rest of the world.
Celia Pugliese says
Here is your answer Deborah and keep in mind that the sheriff is paid also by our county taxes that are almost double that what we pay the city. City expenditures:
Administrative Services $ 5,750,826 $ 5,672,764 $ 5,934,186 $ 183,360
Construction Management & Engineering 1,168,036 1,129,912 1,445,586 277,550
Economic Development 411,945 403,227 530,219 118,274
Planning 2,577,743 2,392,395 2,836,703 258,960
Code Enforcement 3,314,269 3,199,125 3,573,326 259,057
Business Tax – – 248,677 248,677
Public Safety – Fire 12,827,111 12,920,146 13,130,018 302,907
Public Safety – Flagler County Sheriff’s Contract 6,532,276 6,532,276 7,363,929 831,653
Public Works Streets Maintenance 8,572,048 8,559,145 9,113,976 541,928
Parks, Recreation and Parks Maintenance 8,409,901 8,370,002 8,541,167 131,266
Non-Departmental 3,185,194 6,509,787 3,170,809 (14,385)
Total General Fund Expenses $ 52,749,349 $ 55,688,779 $ 55,888,596 $ 3,139,247 6.0
Protonbeam says
Grow a pair – fire his majesty Staley and create a palm coast PD – enough already-
bsplace says
So, if I am paying more taxes, ( in this shi**t hole), then I want my own City PD. Period.
No more of the political cra**p.
Average Joe says
Why does this city continue to rely on the Flagler County Sheriff’s department instead of taking steps to have their own police department? This city has grown too large for the Sheriff’s department to handle.
Not to mention the wasteful spending the Flagler County Sheriff’s department does. How many mold invested buildings, high speed pursuit vehicles or even boats will they continue to purchase at the expense of city tax payers?
Enough is enough, time for the city to start looking towards the future and replacing the Sheriff’s department.
DP says
Think your taxes arw high now. Just wait for the bill when your proposed dept. Is formed. Minimal list, personal, vehicles, uniforms, weapons, radio’s, health insurance. This is not a complete list of start up $$$ needed. What would benefit the citizens of this county would be consolidation of agencies. Bit that will never happen as the powers to be don’t want to lose control of thier little domain. And municipalities won’t reduce thier budgets to reflect the now consolidated departments/agencies. And before others will claim services will suffer, that’s just plain nonsense. Current fire stations would remain, the proposed new fire station will have been built in Seminole woods, and colbert/ PC Pkwy station would have been built as well. The city spends alot of money on thier fire stations, they very nice and spacious. This is compared to what Flagle County remodels for thier Firefighters. Which are shit hole stations. Stations that were built by the county many years ago for the volunteers that used to cover thoses area’s. These current stations may meet at minimum life safety standards. Oh wait look at the joint station in Halifax plantation, that Volusia County built, staffed by Flagler Firefighters. There’s an example of joint use. That station responds to both Flagler and Volusia calls for service.
Gary says
Im selling! Getting out of this crazy 24-7 construction zone!
Carla Conrad says
This is the first place I’ve ever lived, with the exception of when growing up and family had a summer country home in Va, without its own Police Department. I was not aware of that when I decided to move here. Had I known, I’d have changed my mind. Huge difference; very obvious, esp. in “quality of life”.
RWBoggess says
Public input on a variety of issues is one of the greatest advantages that our country has and nowhere else than in Palm Coast does it show the importance of that right. With that being said, I think there are merits in discussing the issue of having our own police department. Note, I said ‘discussing’ – it does not necessarily mean that is the right fit for Palm Coast. Cost is a BIG factor, for sure. I think it would be interesting and informative if the city were to sincerely and honestly investigate the option. I don’t mean spending more money on an outside consultant – we all know where those consultant reports end up. But use the staff that we have to look into the startup costs – which will be one of the major expenses – and then ask the citizens in a referendum if that is what they want. As for the here-and-now, the city is not obligated to pay the increased cost for the additional deputies. Maybe we need to ask what we are getting in return? What is the average response time in the city for law enforcement? How many incidents do they respond to in Palm Coast (note, I said ‘incidents’, not number of personnel or deputy vehicles responding – but actual incidents) and what type of incidents?
But that is only one element of the budget. As noted in the article, the city staff seems to agree to no new hires, but half-way through the budget they end up adding personnel. Buried in the proposed budget as foot notes, the city staff notes that an x-number of positions were ‘fully burdened’. What does that really mean? Are these positions added in the mid-budget year and now they need to be added to the up coming budget year?
A common oversight on the part of governments, is that it is all fine and dandy that we have impact fees to pay for changes in infrastructure due to new development but what is not typically factored in is the ongoing cost of maintaining those infrastructure additions or replacement when they age out. This is where a lot of governments get caught in a budget dilemma and where it appears Palm Coast has found itself to be in. As a result, we see these wild increases in certain areas of the capital budget which raises concerns. I know that somewhere in the budget is a contingency fund – maybe there needs to be capital reserve fund for the sole purpose of repair and replacement with very tight restrictions on its use – maybe requiring a super majority votes of the city council to use – and that has a reason cap so that funds don’t just build up unused. It may already be there – under a different name or something?