The Palm Coast City Council is looking to brace the public for one of two things come next year: either a big tax increase, or big cuts in services, including lay-offs. That’s the consequence of yet another huge drop in property values—12 percent this year, compounding last year’s a 15 percent drop the previous year—and the city refusing to raise taxes last year to make up for even part of the lost revenue.
Palm Coast lost $3 million in property tax revenue last year. Going by current estimates, it will lost another $1.8 million next year, bringing property tax revenue down to a little over $13 million, the lowest amount since 2005. Last year, the city made up for the loss by halting spending on construction and capital projects, and laying off employees or leaving unfilled what amounted to a couple of dozen positions. The previous year, the city used reserves to plug the hole, and raised taxes. Reserves have been wiped out: the general fund’s reserves are at their lowest level in the city’s history, and several other funds’ reserves are running a deficit.
Click On:
- County Property Values Fall Another 14%; Palm Coast: -12%; Tax Rates Heading Up
- Property Tax Reform: 50% Exemptions, Breaks for Investors, Losses for Local Governments
- County and City Fire Departments Merge Methods and Training in Hint of Consolidation
- For Palm Coast, Community Centers Are “Pie in the Sky” But City Hall Hovers Closer
- Palm Coast Largely Rejects County’s Economic Development Track, Including New Tax
“There are no more jars buried in the backyard,” City Manager Jim Landon told the city council on Tuesday. “We’ve had four years of cuts so far. People talk about tightening belts. There isn’t anymore belt to tighten. You’ve got to get rid of the person if you will to make those kinds of cuts after four years. So what we’ve talked about last year, it’s not a message anybody likes to hear, you know, look up in my office, Nancy is the only one sitting there. Get rid of Nancy there’s nobody to answer the phone type thing. It’s not a matter of OK, how can we reduce the number of staff members. We’re down to the bare bones in the office, so where we’re headed, if we’re going to cut this year, is boots on the street. We’re talking about really three departments that are big cost departments, particularly the two big ones—fire, streets and somewhat code enforcement. Those are the three you can make cuts in, but it will be people out there that are mowing right of ways or firefighters or code enforcement out on the street.”
The prospects are grim financially. They’re also grim politically. Mayor Jon Netts is all but certain to run for reelection. He’s facing two challengers. City Council member Holsey Moorman is facing challenges for his seat. Council member Mary DiStefano isn’t running again, being term-limited. She alone spoke more freely Tuesday about the prospect of raising taxes.
“I don’t want to raise taxes, but I’ve got to tell you guys, this is going to be a tough year, and all you do when you lay people off is you’re contributing to the unemployment,” DiStefano said, “and I don’t know how many more people we can lay off in the city. I just don’t know.” It costs the city about $30,000 a month to pay its share of unemployment benefits to laid off employees. That figure will go down, particularly since the Florida Legislature passed a bill that slashes the length of time the unemployed can get benefits to as little as 12 weeks, and no more than 23 weeks, depending on the unemployment rate. But the point council members were making is that lay-offs don’t come cheap, either.
Moorman cited the Medicaid costs the unemployed incur, the house the unemployed own that may end up in foreclosure, cutting off tax collection for the city, the reduced income for stores that once were earning revenue from that employed person. “So we may save the city money, but we’re not really because we end up supporting that person,” Moorman said.
Ray Britt, the city’s finance director, recently spoke to a local Citizen’s Academy class that Moorman attended. Moorman described the assembly’s demands and expectations. “They want more bike paths, they want more park and recreation programs, they want the world,” Moorman said. “And then Ray just kind of laid it out to them and said, here’s what you’re getting for $40 a month, without raising the taxes.” The $40 a month figure is drawn from the average city tax bill for Palm Coast residents. It does not include county, school and other taxes. “Now,” Moorman continued, “either you’re going to pay for it—there are no free lunches. Either you pay for this additional service that you want or you accept what it is at the current tax rate. I thought it was a very good presentation, and he shut them up. There wasn’t a whole lot of talk after that when he started telling them what they’re getting for $40 a month.”
The council is holding its goal-setting session on May 31. The same day, it will also get a mid-year report on the city’s finances to have a clearer idea of what to do next. Council members want Britt to make public presentations over the next several weeks, at city council meetings, where the city’s expenses are laid out, so that residents have a better understanding of what they’re getting for their money.
The approach is laying the groundwork for what’s likely to be a tax increase. But even if the city were to increase taxes by, say, half a point (that is, 50 cents per $1,000 in taxable value), all it would do is generate almost the same revenue next year as it’s generating this year. Under Florida law, that does not even rate as a tax increase, since the net result is flat revenue. Most residents, too, would not experience a tax increase: their values have dropped. The property tax rate is raised, but the end result is that residents would pay about the same in taxes next year as they did this year. For the city, raising the same amount of money next year would enable it to maintain what has been an austerity budget, with perhaps $200,000 to $500,000 extra in the pot, according to Britt—not a whole lot to do much with.
DiStefano, for her part, wants the city to resume investing in capital—the infrastructure of the city. “Not having money in capital projects is killing us, and our city is going to go downward if we don’t start to figure out how we can put something in capital projects,” she said.
Council member Frank Meeker flatly disagreed: “I think you hold off on capital projects until the economy improves. You have to live within your own belt-tightening. The question is has the city government tightened its belt as much as residents have had to do it at home.”
Nowhere along the line was the city’s hopes for a new $10 million city hall mentioned. Landon had been claiming that that money is available, though the building hasn’t been on any council members’ lips for months, at least not publicly.
After the meeting, Meeker spoke of exploring various avenues to make ends meet while sticking to his conviction that taxes should not be raised, though he clearly was conflicted over the matter. “Or does the city take one more bold step and say for one more year we’re going to try something really out there,” Meeker said. “To balance the budget, we’re all going to take a voluntary reduction in salary.” He stressed that he was merely suggesting ideas. “Nobody is going to like it, but the alternative is what, a 10 or 20 percent loss of staff?”
Not quite. But Britt’s budget presentations over the next few weeks are designed to give council members a better idea of those numbers—numbers that have generally remained murky. “The problem for council by the way is,” Meeker said, “because the manager is the guy that manages and operates the staff, I think we have kind of a limited understanding of how much staff it would take to really run a city of this size.”
Joe says
Get the money back from PCD and what Ginn owes and you could give us a tax cut, morons!!!!!!!!
lawabidingcitizen says
We bought property in PC six years ago for $125,000 (it’s now assessed for $48,000) that we can’t rent or sell. However, the city wants us to kick in over one thousand dollars in taxes although they think nothing of spending manyh multiple thousands for nonsensical “economic development.”
I’m truly sorry that people will have to be laid off, but many/most of them probably shouldn’t have been hired in the first place … oh and nobody needs someone to answer their phone. Everyone working for the city can answer their own phone or let it go to voice mail.
Big bucks could be saved if property owners paid the millions it costs to keep up the illusion that City Center is a viable entity, instead of the taxpayer funded CRA.
[email protected] says
what a mess, over 4500 vacant homes in the city and approaching over 5000, i know this to be a fact
Scott says
You can’t have it both ways. You want a nice place to live but you don’t want industry to thrive. Palm Coast is anti-business and has been for some time. The old players just don’t want change. It was easy looking good during the building boom when houses were being built left and right. New homes aren’t being built and banks won’t lend money to an average man on the street. Palm Coast and it’s leaders aren’t looking so smart anymore.
Toyota and kia, just to name a few manufactures came to the south and built plants. They sniffed around Palm Coast, but I assure you our leaders did everything possible to drive good corporate partners far away. Palm Coast has problems, yet it’s leaders want to remain retired and asleep at the wheel.
palmcoaster says
The revenue problem that Palm Coast has now within this financial crisis for all, is that we pay to the county almost double the amount of taxes that we pay to our City of Palm Coast that provides “all our services except law enforcement Sheriff and judiciary” provided by our county taxes. Then for double the bill that we pay to the city, what the heck is what our county provides? In this economic crisis is outrageous the tax bill we pay to the county and for what? Consolidation saves as in Miami Dade County Government, one entity. Here should be Palm Coast Flagler County Government. After all Palm Coast is in reality the eight hundred pound gorilla wether accepted or not. Otherwise we keep on wasting our tax dollars in too many chiefs and very few indians, that we can no longer afford!
PalmCoastPioneers says
THE STATE OF PALM COAST
The State of Palm Coast
On February 4, 1987, ITT Community Development Corporation President Jim Gardner delivered his State of Palm Coast address to the Palm Coast Civic Association. He reported ‘nothing but good news,’ and included in that category were challenges ahead for ITT CDC and local citizens. Here are excerpts:
‘The taxable value of the Palm Coast Service District has increased almost 600 percent since 1980, from 102 million to 566 million at the end of 1986. During that time the population increased from about 4,500 to almost 10,000 today. In other words, while the population has doubled, the assessed value for tax purposes has increased almost six times. Economic growth is the primary reason…bringing in more tax revenues without additional burden on residents…
Palm Coast emerging personality is a combination of our company activity and the strong, ongoing commitment of residents and local government…Palm Coast has matured to the stage where responsibilities for public services are being picked up by the public- a sign of a healthy, progressive community…
For years, CDC was the only game in town. That isn’t true anymore. We have a good balance here now…
industry,
recreation,
outside businesses coming in,
healthy competition in the marketplace,
government facilities, public services, schools, activities and residents who are making a difference. We remain the major catalyst, but our involvement in the running of this community is demising , as Palm Coast residents move toward self-government and self-reliance…
Palm Coast citizens are moving ahead on many fronts…
The quality of our school system, the physical plant, the instructional staff, are all expanding because of the citizens perceived the need and were willing to meet it:
A group of citizens bucked the many obstacles and went doggedly ahead to create from their own pockets and sweat a new rifle and archery range available to the public;
The Service District Advisory council, the fire department and county staff are engaged with us in a program to establish a new central fire station west of I 95.
the Civic Association is completing work on a major expansion of the RV storage compound – a place that allows the community to enforce rules against parking of vehicles in residential areas;
The Humane Society is pushing for expansion of its center;
The Chamber of Commerce has started work on its new headquarters building;A group of citizens is involved in an intensive study of our local governments with a full public review planned….so we can mutually decide on what our government should be in the future;
The Civic Association has joined in seeking tougher enforcement to the covenants and restrictions that help to assure our high quality of life;
and the
Civic Association is getting primed to initiate a community wide cleanup effort so that the junkers, refuse dumpers and garden-variety litterbugs will, where possible, be prosecuted, and citizens will be enlisted to help clean up their own neighborhood.
The list could go on and on, for with every new project completion, another gets started.
I’d also like to take a look into the crystal ball for 1987 with these predictions:
1,300 new residents are expected to arrive;
FAA classes will begin in the fall;
Construction on the bridge will be well underway; You’ll be shopping and dining out at St. Joe Plaza, eating chicken from The Colonel, seeing Wal Mart nearing completion, stopping by two lil’ Champ stores, taking pets to a new vet clinic, visiting doctors, dentists and professional at new office buildings on Old Kings Road;
Preliminary work on our fourth golf Course in Cypress Knoll, the Cypress Knoll Golf Course;
Wadsworth Elementary School will open its doors this fall.
There will be many others, but suffice to say Palm Coast is booming, and tomorrow looks to be even better than today”
The Palm Coaster, Spring 1987, p. 16.
PalmCoastPioneers says
The State of Palm Coast Addendum:
The Sheraton Palm Coast
If we have used the word beautiful too many time, forgive us. But with regards to the new Sheraton Palm Coast Resort – 154 rooms overlooking the Intracoastal Waterway, its forested shore and the
Palm Coast Marina –
we have little choice but to use it again.
Here is a hotel that reflects the high standards of the community around it. Nature played an integral role in its design; virtually all trees on the site were preserved ; the lobby literally was built around oaks and palms – rising through the roof inside a glass-enclosed courtyards.
The waterfront view seen from every room are the kind for which you stand several minutes and admire.
The service is pure Sheraton, the atmosphere vintage Palm Coast.
We walk inside through a decor of early Florida elegance, and see meeting and banquet rooms for up to 400 people…visiting conferences or local clubs, the perfect setting for either. We make plans to meet after our tour, for local seafood, steaks, or fowl at Flagler’s Restaurant; for a bit of relaxation later in Henry’s Good Spirits. The pool out back looks inviting; the scenery, both beside the pool and beyond it, makes us wish we had packed your swimsuits. All the while we are treated like royalty, just another word for guest in the Sheraton tradition of hospitality. Of course the tradition continues off the hotel grounds…
at Palm Coast Golf courses,
the Players Club,
other amenities
and around town. In fact, between the scenery and the friendly atmosphere, a few days at the new Sheraton Palm Coast Resort might be described as….hmmmm….yes…the perfect word…..
Beautiful…
****************************************
The Designer Dedicates Matanzas
Arnold Palmer came to town Wednesday, November 12, and as usual, attracted an army. He cracked the traditional club against the side of Matanzas Woods Golf Club’s new clubhouse- just as he had done to dedicate Pine Lakes Country Club five years earlier. Then he teed off with 120 fellow golfers- among them local leaders, state legislators, business people and co-designer Ed Seay- in an invitational tourney. The day ended with a reception for members and golfers on the driving range, and then Arnie was off by helicopter, flying low over the crowd.
“Florida’s next great golf course,”
in the words of Golfweek magazine, is now officially christened by the golf legend who designed it.
Pine Lakes New Members Lounge
Golfers are second only to fishermen in the telling of tall tales, and therin lies the logic behind “Fibber’s,” resident Jay Bell’s winning entry in SunSport Recreation’s “Name the Pine Lakes Members Lounge” contest.
With the closing of The Harbour Restaurant for Sheraton hotel construction, Pine Lakes Country Club restaurant-newly – remodeled and renamed “Champions” – opened its doors to the public last summer. Earlier this year Palm Coast Construction started work on a new member-only lounge and restaurant, due for completion this summer. More then 400 contest entries poured in, ranging from the lofty and spiritual – “Treetops” and “Members’ Monastery” – to the jazzy and political “Boogie Bar’ and “Bourgeois Lounge” But “Fibber’s” came out on top, and earned Pine Lakes charter member Jay Bell a $200.00 gift certificate.
Palm Coast three golf courses, by the way, are looking good and playing even better. Matanzas’ Woods and Pine Lakes were the host courses for the $ 80,000.00 Palm Coast Classic, A Tournament Players Association tour event, on February 23 – March 1.
John Boy says
Several things that will put us back on track;
– Consolidation of City & County
– Reduce all salaries ober $50,000. by 25%
– Eliminate Pensions, adopt Defined Contribution (401) only
– Eliminate Health Care Coverage
– Reduce vehicle fleet by 25%
Rob says
Well , well, well. Did this crisis just happen yesterday? No it has been manifesting for the past ½ decade, five years. Instead of building a golf course, and planning an end run to build a town hall these so called leaders should have been forecasting and devising a plan to present when, not if, spending exceeded revenues. The tells were there for all to see if they bothered to look or had the capacity to see them.
And these folks want to develop more housing in this city. That will only contribute to more of the same.
Look in the DNJ today. There is now a moratorium on internet cafes. The only argument I heard was that internet cafes bring crime. WHAT CRIME! Duh. This is business enterprise, generating taxable revenue. So what if it is gambling. The state of Florida supports gaming. Is this town council out to lunch and do they have their heads of their collective a**es . I would say so. These people are so out of touch. I think the majority of them are satisfied to collect their pensions / retirement and act like they are leading something.
Aren’t there any younger folks with fresh perspectives and direction available to lead this city. There are workshop meeting s that are scheduled so that only someone who is retired or has flexibility to attend can serve. Doesn’t that exclude participation of certain citizens and include others.
Can we all say pay cuts and furloughs? Start at the top with the town manager and work down to the bottom. Don’t start at the bottom and then stop mid way up.
Until the voters remove these people the situation will not get better. They can’t sweep it under the rug by raiding reserves again.
@Palmcoaster. Yes consolidation makes sense, this city can’t sustain itself. The fact that it makes sense is the overriding reason that it won’t happen. There are too many with vested interests to maintain the status quo.
palmcoaster says
Sure I respect the historic info presented here by Pioneer but in some ways was the perfect paradise mirage sold by the good intentions of ITT while selling property then. I sure miss ITT services while in Palm Coast. I also resent ITT manner of its rushed disposal of his last possessions here leaving us all residents totally ignored and holding the bag, ripped off by Centex and successive buyers of the Matanzas Golf Course. Look at what those residents around Matanzas have to put up with nowadays after paying prime for those parcels. We fought hard for the Palm Harbor Golf course and succeeded.
In a past article Pioneer mentioned the 6 miles of Palm Coast ocean front…sure not one that palm coasters have easy access too with any amenities around it, unless can afford the only eatery inside Hammock Beach Club at a kings ransom rate. ITT did not care to reserve for us “their pioneers” our gorgeous gathering ocean front clubhouse with that amazing ocean front pool, showers, bar cabana that we enjoyed in so many community gatherings. Nope, gave/t sold it to Ginn. What six miles of ocean front are we talking about the ones limited parking accessible thru Jungle Hut..surrounded by the millionaire condos staring the beach commoner visitors over their shoulders? That is why we go to Flagler Beach instead. We need Palm Coast and County government consolidation so the unfair amount of taxes we overpay to Coffey are equitably distributed in the services we are already paying for. Without palm coasters taxes county will succumb. We have been abused by the good old boys with the county tax rate since ITT left and we should request by referendum “government consolidation” that will lower our taxes. Among other things will put at better use that Taj Mahal in 100.
If they want to create jobs our elected ones really need to go to the files and find out and stop the outsourcing of our tax generated contracts for no other reasons than lies. Finally good riddance of the county chief buyer Whitherton “resignation”? http://www.news-journalonline.com/news/local/flagler/2011/05/10/flagler-official-quits-takes-hernando-job.html
Maybe someone took the magnifying glass to his unfair buying policies regarding Flagler county businesses. No matter what former Daytona Beach NJ, Carl Laundrie IT county spokesman lauded him for… the guy was just an outsourcing tool of our tax payers contracts that sure did not help to lower unemployment here. Next look into the local schools buying…unfair policies.
As per housing we have plenty of vacant ones…C’mon our elected ones.. stop at least for this new budget all capital projects temporarily and any new developments thriving only on free provided infrastructure and tax giveaways like the Town Center one….When are we going to be refunded the 5 million that at least, we were forced to put in that CRA? Sure that will help our budget shortfall. Our City of P.C services is probably solely surviving in the revenue received by our utility company that was the best move we ever supported, as is like pooling gold out of the ground. I bet if not for that, city sure be in deep financial trouble and had raised our taxes. This unfair local tax revenue that favors the county 2 to 1.. will end with consolidation. Just look at the itemization in our homes tax bill.
Consolidate and we will cut off a lot of fat!! One Fire dept, One Emergency Dept, one administration, one planning, one code enforcement, one IT, one building dpt., one Taj Mahal now half empty if the pretensious dtps square footage will be reduced down to the reality of our tax payers pockets. Millions will be saved, as well as jobs by reducing some of the too highly paid.
fox2trot says
Sorry state of affairs. Someone wrote that they should get the money back from PCD & Ginn, well from what I’ve heard they have had more layoff’s & this time in the Call Center and if I remember correctly the Ginn Company wanted us buy a parcel of land for conservation? If they raise our taxes I’ll just let my house go into foreclosure. For what its worth & what I owe, it’s not worth it. (no, I haven’t borrowed on it) .
silent says
I agaree withe John Boy, in particular:- Consolidation of City & County; reduce all salaries over $50,000 by 25%, and slaries over $100,000 by 40%; eliminate Pensions, adopt Defined Contribution (401) only
and eliminate the current Health Care Coverage and have staff contribute at least 50% to costs.
PalmCoastPioneers says
Reply to Palmcoaster:
Federal Trade Commission ‘Consent Agreement’ C-2854 and its’ 15 year ‘Compliance Report’ & Exhibits A and Exhibits B.
RE: Palm Harbor Golf Course – we all paid for it once already in 1970 & 1971.
palmcoaster says
401 K’s are the biggest rip offs to workers in the face of earth. Did any of the fans for those here, had 401K’s in 2007 and 2008? Those crooks is Wall Street are the 401 K’s manipulators to their benefit and the candid contributors don’t even know the gouging fees are being charged in a monthly basis on their accounts as the statements are so complicated to understand with all the hidden fees. “Is just their retirement savings being played in the (Las Vegas Russian roulette style) good old stock market for the benefit of the hedge and mutual fund managers. Workers need their pensions and their medicals even if they were to contribute a bit more to those and only because now we are in this financial mayhem. Otherwise the traditional way to reward our American workers for their fair labor paid, was fine. The Wall Street crooks in collusion with Federal Reserve and SEC looking the other way and promoting disastrous instrumental deregulation for the benefit of hundreds of hedge fund managers like John Paulson and Goldman Sachs is what destroyed our economy. Stop bashing our middle class, workers and their unions as escape goats and enlighten yourselves;
http://www.nytimes.com/2011/05/09/opinion/09krugman.html?smid=fb-nytimes
Mike says
I have had several friends who have tried to start businesses in Palm Coast and gave up trying. All I hear from them is that the city is tough to do business with. Town Center is dead for now, City walk is dead for good. Nothing but the same old restaurants everywhere. What really bothers me is how many people that i hear are either leaving or thinking of leaving. High end homes especially, these people can take a hit on their property and move on. But they also have money to spend but no where to spend it. Town Center Jacksonville is where most people go to spend big money, not here. Are we so Eco friendly that we have given up on business development? the parks are nice but gee how many more of those can we build. The beaches are just plain tacky. Please paint the buildings on Flagler Beach once a century. In the end it will be just bars and motorcycles around here. Great for them but
sorrytoserve says
The writing was on the wall years ago. Palm Coast’s lack of ability to control spending has now become it’s biggest downfall. I feel like I’m in a really bad “B” movie. Pearl Harbor is going to be attacked based on all of our evidence Sir, “no it’s not”, Pearl Harbor is going to be attacked based on all of our evidence Sir, “no it’s not”; Mr. President Pearl Harbor was attacked this morning……Oh, how could we ever have seen this coming. DUH! Now we have talks of cutting peoples means to support their families and cutting pensions? I’m sorry, I was under the impression that 25 years of service, especially those in high risk employment, meant more than just being able to say “Welcome to Wal-mart”. We all know what this really comes down to, not being able to admit you were wrong, not being able to admit your over paid and not being able to admit you will tell the masses whatever they want to hear to be re-elected. Previous comments were correct though, City Hall what?
It is simply amazing to me to see how many people want their cake and eat it too! “Does code enforcement have anything better to do?”(Let me call and report my neighbor for having his grass too long). “Why are there so many Fireman and Fire Trucks?”, (but when you have an emergency those guys are there day and night). “Why are there so many people out on mowers and picking up trash?”, (We need more flowers and trees and shrubs and beautiful things to look at, BLAH, BLAH, BLAH. I know, let’s all just bitch about how we spend to much on City services and then when they get reduced or taken away, we can all bitch about not having them. I think that sounds like a nice fun game to play! How many of you ungrateful, self centered, narcissistic baby boomers are with me?…………… What, your silence is overwhelming…………
palmcoaster says
To Pioneer, thank you so much for the historical information. Now my question is, if we “all pay for it by 1970 and 1972” how come ITT sold it with the former Sheraton and Marina package to Centex? Am I missing something here?
Did we loose the Marina serving us all, in the same manner? Can we go back to these documents and reclaim what was improperly sold if was already ours. Would be nice to repossess our Marina and keep the current profits and even further revitalize the business. Also would be nice to recover the few millions between 3 to 5 spent to repair the Palm Habor Golf Course damaged over the abandonment of Centex.
Also what rights these poor Matanzas residents have, after paying premium for the homes located next to a golf course that became and abandoned eyesore now? These corporations really abuse their power and for few millions their greed save them, ruin the lives of the residents that were sold with total impunity a lie.
Liana G says
Funny how these higher ups in gov’t aren’t talking about reducing their over blown salaries, and 40% is not a big enough cut. Let’s get the house in order, starting with the upstairs. Money still available to build that 10 million dollar city hall?
By the way, code enforcement does not work on my street for a specific house. Almost every resident on my street has called about this particular house but nothing gets done.
Nice job on Belle Terre Pkwy though. Pleasing on the eyes. Thanks. Hope it didn’t cost much!
PalmCoastPioneers says
Reply to Palm Coaster:
You are getting warmer and almost have figured it out.
Keepcutting says
Let’s see……..cut code enforcement, and fire department jobs. No mention of cutting the City Managers $200K salary………good job hiring that one council members. November elections are just around the corner.
Department managers working for the city living outside the city limits, paying thier taxes in Volusia or St Johns county. Seems to me these department managers don’t have to worry about spending, their taxes aren’t being effected. Middle management in the city doesn’t seem to be considered for job cuts. In some departments there are 4 levels of management to get to the street workers.