The Palm Coast City Council today threw cold, brackish water on County Administrator Heidi Petito’s comprehensive but expensive financing plan for a long-term solution to saving the county’s 18 miles of beaches.
At least three council members favor sending the proposal to the ballot for a referendum, which would almost certainly fail and delay the enactment of an already lagging beach-management plan to 2027, after the next general election.
Beaches are daily getting eroded more critically, not least because the county did not ramp up plans to manage its beaches until well after Hurricane Matthew in 2016, what Petito has been referring to as a “wake-up call” to grave erosion. But as her administration has rolled out various plans since last year–none as complete or detailed as the current plan–cities have repeatedly proven to be the main obstacle, with Palm Coast in particular raising the sharpest objections. Without Palm Coast’s support, Flagler Beach has no incentive to endorse the plan.
Palm Coast is facing its own challenges. The council may soon be compelled to call for the largest utility rate increase in the city’s history, in the shortest time. Council members see the county’s ask for the beach to compound the costs to rate and taxpayers, which is inaccurate: Petito’s management plan adds to Palm Coast’s revenue bottom line. And while it would increase the sales tax marginally, Palm Coast Mayor Mike Norris himself said today that most necessities, like medicines and groceries, would be exempt.
In contrast with his almost shrill opposition to any beach plan that would cost “a dime” to Palm Coast residents when he addressed the issue at a joint government meeting earlier this month, Norris turned out to be the mildest voice on the beach proposal today, repeatedly suggesting that it is a work in progress that warrants discussion. It’s what Petito wanted to hear. But Norris was outnumbered.
“I think if we’re going to do this, we need to put it up to the voters in a referendum,” Council member Charles Gambaro said. “The citizens of Palm Coast could potentially get hit with a utility rate increase, and then the Board of County Commissioners decides to move forward with another half-cent sales tax. I mean, that’s on top of what’s happening within the city of Palm Coast. So to the extent possible, I’m always in favor of trying to let the citizens make the choice.”
The existing half-cent sales tax supplement had, before 2012, been put to a referendum–and passed. But that was in 2002, in a different political environment. When it came time to renew it, Palm Coast refused to support the county because the county wanted to change the sharing formula. Knowing that it would fail at the ballot box without the city’s support, the county pulled the nuclear option: it adopted the sales tax increase anyway, with a supermajority of the commission, as required by law (the measure passed, 4-1).
Since the sales surtax had not won passage by referendum, the revenue could not be bonded. It could only be spent as it was accrued. That was a big loss. The county would take the same approach with the additional half-cent–pass it by a supermajority vote. On the other hand, if it floated the sales tax increase of the new half-penny through a referendum, it could then bond revenue.
Those nuances were not discussed today, and may be irrelevant anyway: a referendum on the sales tax may be a non-starter. Residents are not as willing to pay for sand as they are for children’s laptops (the school board continues to be successful with its decennial half-cent sales surtax).
The county had done a poor job of pitching the beach-management plan in early February: it lacked substance and numbers. Petito has remedied that.
The plan calls for the county to assume the initial costs of rebuilding the beach for $42 million, and for the cities to support increasing the sales surtax by half a penny and spend either half their proceeds or the full proceeds on beach maintenance over the next six years. It also calls for shifting $1 million a year in tourism-tax revenue from capital improvements around the county to beach management.
It does not require the cities to raise property taxes or give up existing dollars. Palm Coast and Bunnell would get more revenue from the new sales tax. But it does require barrier island property owners to pay a $160-a-year fee, or tax, since their properties would most directly benefit from the beach-management plan.
Petito and Deputy Administrator Jorge Salinas crafted the plan at the direction of the County Commission, which has not yet seen it in its present form, with an abundance of details about costs and breakdowns in revenue sources and responsibilities.
Petito has been presenting the plan to local governments since unveiling it last Thursday in Marineland, followed by a presentation to the Bunnell City Commission on Monday and Palm Coast this afternoon. The administrator is doing so ahead of a March 12 joint meeting of local governments to discuss the plan.
“I understand that it’s a joint asset that everybody uses. But then obviously some people benefit more than others,” Council member Ty Miller said. He sees the benefits of the sales tax, which “socializes that cost to other people than just the people that live in this county,” and for that reason would support that approach over others. But “if the residents are going to pay for it, I think that they should possibly decide whether they want to or not, whether they think that asset is valuable enough to them to pay that.”
Neither Miller nor Council member Theresa Pontieri support shifting $1 million a year (for three years) of tourism-tax revenue from capital improvements to beach management. That would be another blow to the plan, though cities don;t have the ultimate say in that regard. The County Commission could act unilaterally–and has, some years ago, when it increased the beach management pot. (It did so with the Tourist Development Council’s recommendation, though even if the TDC board recommended otherwise, the Commission may override.)
Additionally, Pontieri was “very hesitant to vocalize any support to use this for the beach, knowing that we have what I consider to be higher priorities that we cannot get grant funding for”–namely, additional sheriff’s deputies, which she said the sheriff is almost certain to ask for at budget time. She was sympathetic to Petito, but she said the County Commission itself had to weigh in first with its own support of the plan. It has not done so.
Then Petito threw her a curveball: “Well, if I could, if you were to levy the half cent for law enforcement or public safety, do you feel strongly that you would still put that out to referendum as well?”
“I don’t see the difference. I do think it would have a better chance of passing, though,” Pontieri said.
Without Palm Coast’s support, the county’s plan as a comprehensive, all-county approach is dead, though it may be too early to call out the embalmer. “We’re willing to work the county,” Norris said, “and the county is going to have to decide what they’re going to do, and we’re going to do what we have to do.”
The Beach Management Plan in Details:
- Flagler County’s Coastal Erosion and Management: Comprehensive Report
- Flagler County’s Coastal Erosion and Management: Executive Summary
- Flagler County’s Coastal Erosion and Management: Slide Presentation to Local Governments
Deborah Coffey says
I am feeling a strong desire for all those that still call themselves Republicans to move to Mars with Elon Musk. Earth is no place to ignore science, to never plan for the future, and to constantly mismanage governing and the people’s money. Build your hateful Utopia on Mars, MAGA.
celia pugliese says
Kudos to our city Mayor Mike Norris, Vice Pontieri, Councilmen Miller and Stevens (thou still ill) for your realistic objections to this additional county tax for beach erosion!
Kudos also to Mayor Norris for the great idea of the airport annexation…imaging we boot the nuisance dangerous schools over Palm Coast and promote instead an executive airport that will make $$ and will get the KFIN off the 1 to 2 millions read yearly and force subsidized by the taxpayers. Rental of hangars and service for executive pilots will be a win win. Peace and safety for the residents in the ground and added value to Palm Coast!
Doug says
And who didn’t see this coming?! I beginning to wonder which entity is managed worse, Palm Coast or Flagler County. They both have destroyed the county with overdevelopment. Failed to prioritize projects. Both are engineering nightmares. Overpaid for dilapidated buildings that were inhabitable after being rebuilt, and the list goes on and on. Here’s an afterthought, had you left the natural dunes in place, we probably wouldn’t be having this problem or discussion of this magnitude. But, I’m just a resident.
Marty Reed says
I say that Flagler Beach should move toward charging for parking to help generate revenue for beach management. I find it difficult to understand why Flagler County has waited so long to deal with preserving our beach. Everyone loves the beach but want it for free. Shame on Palm Coast government!
Jan says
We all should support beach renourishment. Those who live on the ocean (which I do) should pay more than those that don’t. That is fair.
We should also consider what Cocoa Beach is doing – they are now charging short-term rental businessowners $1,500 to renew a short-term rental, and new short-term rental businesses will now cost $2,500 to register. If we did that in Palm Coast, a portion of that money could go toward protecting and renourishing our beaches. I don’t think that we’d have as many short-term rental businesses here in residential areas if we didn’t have the ocean – do you?
Thomas Hutson says
Thank you Palm Coast. Proves leadership in the county is on the horizon. If there is anymore money spent on that beach it needs to be on a countywide referendum.
ROGER CULLINANE says
It is time to just increase the property tax rate, which would end up having all property owners in the county sharing in the cost of maintaining the beach. Our county officials have spent hundreds of hours coming up with a multitude of plans, over a period of years, and they all get shot down by Palm Coast, while the beach is getting more eroded with every storm. If this does not get taken care of soon, it will be too late.
L. Martin says
First, I had hope for the mayor till I heard him discuss this topic. He needs to educate himself. How does he think one pays for a police dept and EMS without county revenue? Where does he think said revenue comes from? Try 40% of it from that stretch of beach.
Shame on Andy Dance for not recognizing he’s leading a problem staff. He puts up with it because of his wife who works for Heidi.
celia pugliese says
Really Marty? Kudos to Palm Coast Government!! Thet great idea of our Mayor Norris that I been posting for years in our social media for the county. Get a grant other, than 69 millions for an airport since 2019 were most residents are not served as we can’t get a tkt to fly anywhere. Instead a grant for buying land east of the Rte 100 bridge build a several floors fee paid parking with a beach small shuttle (sustained by the restaurants in their bills tkts and tips) and will make enough profit to repair beach erosion. A real money maker like Mayor Norris said on 2/25 meeting. There go the funds needed for the coastal preservation! Also go ahead Mayor and lets annex the airport a real enclave surrounded by Palm Coast residents being bombarded by these thousands of pilot trainees touch and goes and dangerous lead contaminating rounds over our city that by the way is the largest stake holder in the county and often ignored by the FCBOCC. Our Vice Mayor put it clearly why PC is the biggest stake holder in minute 2.23.01 in meeting here https://www.youtube.com/watch?v=pMUPLsaszpU. PC taxpayers fund this county to the tune of 44 cents of every dollar we pay in our ad valorem to the county and only 22 cents to our city. Actually like Mayor Norris says to Mr. Salinas we PC pays twice for sheriff services and sure Palmcoasters may not be happy to see these use of our ad valorem. Build a parking building deck and income will resolve the beach erosion repair issue with tourism funds.
Marty says
Yes Really Celia! Palm Coast wouldn’t be in such a cash crunch if the council and County Commissioners as well would have stood up to developers to halt their overdevelopment of homes. They just cannot come to realize that that kind of development does NOT pay for itself. If the beach goes, there goes the entire county. Do you think for one minute that Palm Coast would even exist without the beach?
Focused on the matter at hand says
OK, but what does that have to do with this article, this issue?
Laurel says
The population of Flagler County is 140,000. The population of Palm Coast is 106,000. The population of the barrier island is 6,000. Clearly, any vote outcome will be dominated by Palm Coast, which is not a good representation of what happens to the barrier island residents. The beach does NOT benefit ALL barrier island residents (as suggested in the article) more than Palm Coast, with advertises the beaches for its tourism. Many Hammock residents must drive to a public beach park, not having access to private beaches, same as Palm Coast residents.
The number of parcels, within the county, is 55,000. The number of commercial businesses is 2,000. The number of “other” is 26,500 (stats provided by Google AI; the county could not answer me). Yet to be built: a whole, new city at Bunnell, expected to be around 6,000 homes. The number of new houses coming to Palm Coast is approximately 5,000 +/-. The number of businesses to come is unknown to me. There is clearly enough properties to divide up the funding needed.
The aforementioned stats do not include possible funding from a 1/2 cent sales tax, fund 1109, fund 1111, 0.14 mil, “potential grants,” FDOT seawall, and FY 2025 allocation.
It appears to me that the main problem is the $42 mil up front. Other than how to deal with that, the share of the cost of a program would be minimal, and has not been presented to Palm Coast residents as such. All the citizens of Palm Coast know is a new tax, right when they are getting hit with more costs. Throwing a $160 tax on all barrier island residents is inequitable and unreasonable. Those on the sand of a private beach get one hell of a deal, those in subdivisions with private beaches get one hell of a deal. Those who can walk to the end of a beach street get one hell of a deal. The resort, condos and golf course gets one hell of a deal. Margaritaville gets one hell of a deal. Those of us on the island who have to drive to a public beach, and have no access to the much larger length of private beaches, get no deal at all. There is a definite misconception about Hammock residents that the county and city representatives are allowing to perpetuate. Our representative, Hansen, is also misrepresenting us.
To me, it looks like the cost of the beach re-nourishment can be distributed more equitably if the residents of the cities were given better information instead of the fear of an unknown tax amount. They should also know that because the Hammock pays 25% more for Palm Coast water, and will for sewer, we, too, are paying for Palm Coast’s mismanagement even though we are not a part of Palm Coast, so the argument about Palm Coast not having a beach, does not hold water (pun intended).
If the county, and cities, will not handle the problem in a more equitable manner, then the options would be to let the private beaches pay for their own re-nourishment, and the county and cities pay for public beach re-nourishment only. Have metered parking for all public beaches. This is not as bad as some businesses believe, it is occurring all over the state in busy areas. If that’s not good, give it up.
This can be done fairly.
Mr. Acker Bilk says
Wow, what incompetence we have running our County.
This County Administrator Petito is so bad. When is the County going to do something about her.
Can’t these County Commissioners see they are starting to look bad. That they can’t do their jobs.
Her planning is terrible, no facts, bad numbers and directions.
If the most senior Commissioners Andy Dance and Hansen don’t remove her you’ll all be considered the most ineffective Commissioners the run our County.. Hansen almost lost in the last election. I’ll never vote for Andy Dance again because I’m losing faith in you. I’m starting to think you just slide from one political seat to another because of your name. It’s pretty evident you can’t see bad management.
Wake up stop protecting incompetence.
celia pugliese says
Martin our Mayor Norris so far is great for Palmcoasters he pointed that Palm Coast pays the lion’s shared for the sheriff services and we pay twice. So p;lease be informed. Thank you Mayor Norris!
Bob says
Charge $2.00 per person for 24 hr pass. Family of four is $8.00 for all day. You use it, you gotta pay for it . If I go, I pay too. No problem. Five places to enter onto the beach. Different wristbands everyday.
Laurel says
Palm Coast has the lion’s share of the population, and crime.
Your inability to let go of ITT, which is long gone, and eternally brought up, shows what appears to be an adversarial attitude towards the Hammock. There is an apparent need to punish the Hammock for not wanting anything to do with Palm Coast. We see what Palm Coast has done.
Doug says
Deborah Coffey, why do you have to make this a political issue and attack a particular party? Your hateful rhetoric is irrelevant to the issues we face, whether you’re a Republican or Democrat. And quite frankly, neither has a great track record.
Doug says
Laurel, have you considered running against Greg Hansen?
Not beachside says
Wondering why there is no impact fee on new construction to go toward the beach maintenance. Less would move here if n If not for the beach !
Joe D says
In reply to Marty Reed
I can tell you EXACTLY why Palm Coast doesn’t want to participate in Beach erosion prevention. they want full beach access and their portion of the tourist revenue…but they don’t want to PAY much (if ANYTHING) to preserve it. The tourism group that put out the beach use report, said 4 out of 5 beach users were from PALM COAST…as they used to say in the olden days, “Why pay for the cow, when the MILK IS FREE.” If they have free beach access, but the expense of maintaining it falls on someone else WHOPPIE!
The reason the council wants a referendum, is those members do not have COURAGE to make a stand for preserving the beach, and the financial benefits it provides for ALL Flagler County residents, not just Barrier Island residents! Maybe my HOA should close our block of the beach from public access (I didn’t REALLY know, I own my “slice” of the beach across from my 2 bedroom inexpensive houses/1.5 bath 1154 sq ft townhouse, until the beach renourishment sign off arrived. Current there is FREE parking and free unrestricted public access to our full deeded block of the beach
The only TWEEK I would suggest on the proposal would be to make on the $160 for Barrier Island residents a tiered fee. People living in 2 bedroom inexpensive houses if there is such a thing anymore) and million dollar properties should not be paying the same fee. I would suggest maybe a $100/$175/ $250 spread, based on assessed property value.
Crystal Lang says
Thought about a toll, but we already have one that don’t make sense to me because there are four other ways to get to the beach without paying $3.00. So instead of clearing land to put up ugly looking hotels and establishments that are not needed concrete the land and put parking lots. And where you can’t put parking lots install meters. I don’t know it’s just a thought.
Laurel says
Doug: Oh, hell, no! I have the diplomacy of a habanero pepper. I’m retired. I’m going on vacations, where the beaches have clear water.