The Palm Coast City Council is prepared to set its tentative, maximum tax rate for next year 3.4 percent higher than the current rate. The rate would nevertheless not be enough to pay for about $3.3 million in additional needs or requests in a $72.2 million general fund budget, among them a $1 million request for nine new sheriff’s deputies, over half a million dollars in a cost-of-living pay increase and $740,000 in staffing increases.
The tentative rate the council will adopt next week allows it either to set it as the final rate for next year or to go below it in coming weeks. It may not exceed it. That leaves the council with no option but to either eliminate the $3.3 million in additional spending, or to find the equivalent in budget cuts.
The budget includes a $2 million fund balance, carried over from unspent funds in this year’s budget, that Finance Director Helena Alves said may be used for “one-time expenditures or capital projects.” Alves strongly counseled against using the money for recurring needs, as Council member Theresa Pontieri said at one point when she suggested using the balance to lower the tax rate. (The fund balance should not be confused with the city’s reserve, which is much higher.)
The council could not reach a unified approach at its workshop Tuesday, though budget season typically implies weeks of deliberations to reach consensus. This is an especially difficult budget season for three reasons, any one of which would have upended the process.
First, the economy is slowing, sharply lowering tax valuations and revenue compared with previous years. Second, a proposed constitutional amendment could raise the homestead tax exemption and cut general fund revenue by up to 30 percent by 2028. Third, it’s an election year, which may influence candidates’ decisions.
Pontieri is running for a County Commission seat. She was opposed to eliminating the request for nine new deputies, which seemed like a possibility during Tuesday’s discussion. Sheriff’s Chief of Staff Mark Strobridge urged the council not to step back from a three-year program of adding nine deputies each year. The city is entering the third year.
Mayor Mike Norris was empathetic, but also cautious. “The sheriff is trying to do exactly what he needs to do to keep the city and the county safe, and we’re eternally grateful for it,” Norris said. “It’s just we are very constrained, and I know you guys understand.”
“I completely agree in terms of the sheriff’s contract that we entered into an agreement,” Council member Ty Miller said. “We said we were going to do these things. Obviously, things have changed from the state level as well as the drivers in terms of property valuations going down this year in comparison to the previous years.”
There were discussions about a proposed 3 percent merit pay increase (“what I’m trying to prevent is an automatic 3 percent merit increase when some may deserve it and some may not,” Pontieri said), whether to use the fund balance to pay for the city’s contract with the Flagler Humane Society, whether to cut the Humane Society’s budget request by $200,000, or even–as Pontieri suggested–whether to end code enforcement patrols and transform the division into a complaint-based system only.
“I’m not sure the juice is worth the squeeze,” Council member Charles Gambaro said. He has generally opposed loosening of code enforcement rules, including the relaxing of rules on work truck parking in residential zones and looser outside paint colors for residential homes.
Running the Southern Recreation Center will cost $831,000 next year, while generating half of that in user fees. “The Southern Rec Center is gorgeous, it’s a beautiful facility,” Pontieri said. “I know it’s highly utilized by our public, and all of that’s great. But it’s costing us almost a half a million dollars, and we talked about the aquatic center and how that’s such a bleed to us every year. This is trending to be not very different.” She wants a plan for revenue-generating tournaments that will stop the bleed.
The increase in the tax rate is deceptive. Excluding new construction, the city would have to modestly increase its tax rate just to keep next year’s revenue equal to this year. Under Florida law, that would not be considered a tax increase. It would be going to a rollback, or in this case rollup, rate. The proposed budget barely raises the tax rate above rollback.
“The rollback rate is basically to have the same number of dollars coming in from last year and this year,” Council member Dave Sullivan said. “Normally, the rollback rate reduces the millage rate. In this case, even to just duplicate what we took in last year, we still would have to increase the millage rate.”
The current tax rate is $4.0893 per $1,000 in taxable value. The rollback rate would be 4.1389. If the city were to fund its $3.3 million in additional needs, the rate would have to be 4.5350. If the city were to keep the existing tax rate–which would be a tax cut, under Florida law–it would have to cut $1.5 million from the budget on top of the $3.3 million in unfunded needs and requests.
“I’m not saying that we need to adopt that as the max today,” Pontieri said of the current rate. “But that is what I will be advocating for as we move forward.”
Palm Coast’s projected general fund budget is $72 million. If voters approve the amendment raising the homestead exemption, the city, by its own calculation, will lose $9.2 million of that. It will lose $15.9 million the following year, or more than a fifth of its revenue.
Florida’s Revenue Estimating Conference, a consensus of analysts from each branch of government, projects a $12.4 million loss for Palm Coast next year and $21.7 million the following year (30 percent).
Revenue Estimating Conference numbers are usually “pretty close,” Flagler County Property Appraiser Jay Gardner said, suggesting they are likely more accurate than his, which are based on projections of some increased values locally. He cautioned that assessments are “in the decrease mode,” which will add further downward pressure on the city’s revenue, and that the numbers will change–and the amendment will be challenged in court.
The projected loss framed some but not all of the discussions of the council’s long workshop Tuesday, especially with the proposed amendment’s premise that public safety is to be immunized from cuts.
In the current budget, Miller said, public safety consumes $30 million. By year two of the amendment, the city would face an $8 million deficit if it were to keep funding public safety at current levels, and face the same other services it is providing.
“We do have some big decisions to make and try to figure out how we’re going to fund everything that the residents deem to be essential versus non-essential,” Miller said.
“I think we have to hold the line this year and see what happens with the election and the referendum,” Norris said. He agreed with Gardner that the amendment will be a tax shift rather than a tax cut.
“In general terms, I think we should be very careful this year in making significant changes, and we don’t know what’s going to happen on the amendment yet,” Sullivan, the most experienced of the elected officials by far, said. “We will not know till November. We can always cut back on things if we have to. So, as far as the millage rate goes, we’ve got to look at everything. I know personally, I would never go below the rollback rate. As a point of fact, I think to fund things properly, we probably should do what the staff is recommending to 4.2296.”
Sullivan’s recommendation carried, keeping in mind that it will be the tentative rate, above which the council cannot go, but it may still set it lower by the time it votes on next year’s rate and budget in a pair of hearings in September.
Robjr says
Tell the Sheriff NO. There is one million dollars saved.
And if there has to be reductions in force do not begin at the bottom of the hierarchy. How many
of the city staff are in the low to mid six figure salary bracket?
Shark says
It’s about time the Palm Coast gravy train ends !!!
MITCH says
If I delay making needed repairs to my house, then when I do make the repairs, I can expect costs to be higher. Same with running any business or organization (city). The residential roads East of US 1 have been ignored for 26+ years and are in need of repairs, now the city has to juggle where to find the funds. It’s not just the residential roads, but infrastructure as a whole has been ignored to push growth. Expansion of West of US 1 threatens to take repair funds from East of US 1 which will leave the residents of East of US 1 with deteriorated unsafe residential neighborhoods. Then there are problems with sewer systems in some residential arears, where will those funds come from? We are all concerned about our water quality. Where will the focus of city resources go in this time of dwindling funds. Sadly, from looking at the past 26+ year, we have somewhat of an idea how our leaders have been following previous city council leaders.
Villein says
I agree with Mitch. Fix the roads. I’ll pay the $12 in taxes to have a nice place to live.
The sheriff probably doesn’t need 9 more deputies. Some may think baby boomers retiring from New Jersey are into criminality, but there’s no evidence to support that or more deputies to fight nonexistent crime…
john stove says
“Code Enforcement Patrols”???…..where? The only time you see them is if you call. I know of at least 10 code violations on Covington Ct from 77 to 93. Trash cans outside, siding falling off, mold on walls etc etc
Scare Tactics about the proposed tax amendment!!!! Enough of taxpayers opening our wallets every time the city cries about poor mouth.
Lets reset the City by asking them to slim down their budget for a change!!!
Grandson Of A LEGAL Immigrant says
I see them all the time driving (peeping?) all the time while I’m riding my bicycle in the E Section. They just drive through or sit on the side of the road typing crap on their computer.
Laurel says
It’s called “writing a report.” A job requirement.
NO PAY RAISES says
This is laughable were it not so completely outrageous. My disgust at the current city council has finally boiled over today, and I must respond finally to the stupidity and circus antics of the current members of the Palm Coast City Council who are the exact people who’ve created the mess we’re currently in:
“as Pontieri suggested–whether to end code enforcement patrols and transform the division into a complaint-based system only”
The REASON we need continued code enforcement controls is directly related to the fact that Pontieri and Ty Miller voted to allow commercial vehicles in residential areas. THAT is one of the reasons that code enforcement controls need to continue. In fact, code enforcement needs more funding.
These people who are currently sitting on city council are so busy jockeying politically for their next run for political office they don’t have time to drive the residential streets they supposedly represent. Now there are all types of commercial vehicles and huge boats being parked on residential streets on swales and driveways all night and all weekend. Pontieri and Ty Miller created that problem. Plus there are beat up smashed cars being parked in driveways with garbage piling up in garbage cans that never leave the side of the road. THAT’S JUST ONE REASON WE NEED ADDITIONAL CODE ENFORCEMENT.
Second, Palm Coast could never afford the Southern Recreation Center (already $400,000 in arrears) or the fiasco of the Splash Pad (millions upon millions spent).
Third, and most importantly, NO COST OF LIVING RAISES. NO MERIT-BASED PAY RAISES for the next couple of years at a minimum for any city employee.
I worked at Halifax Health in Daytona Beach for 20+ years. In 2009, my pay was cut 50 percent due to the great recession. I was told that I should feel lucky to still have a job. By the way, that was across the board for all employees of Halifax Health at that time (except for the CEO). Ten years later that 50 percent decrease in pay never came back up to where my pay had been and additionally I never had a pay raise from 2009 to 2019 when I left the organization.
City and county workers have to learn to live like the rest of us peons out in the real world. Meaning, no cost of living increases or pay raises on the backs of the taxpayers at this time or in the near future due to the cash crunch.
Taxpayers are fed up with the stupidity, in fighting and circus-like behavior of the people we have elected to represent us in Palm Coast. Pontieri and Ty Miller have been the absolute worst for contributing to the decline in Palm Coast.
DO NOT DE-FUND THE HUMANE SOCIETY.
DO NOT DE-FUND CODE ENFORCEMENT. That department needs additional funding to keep control over the problems that YOU, Ms Pontieri, and YOU, Ty Miller, have helped to create with your votes and your policies.
Please remember, just because you elect someone doesn’t mean they are intelligent or capable of doing the job. Vote wisely in the upcoming election.
Thistownneedsanenima says
Most of us don’t want to live somewhere with effectively, an HOA. Most of the people where I live have been endless harassed by code enforcement that constantly violate our rights. I really got into it with them last year and one of their pathetic excuses for an employee threatened me with violence. They need to go.
Over It says
You think the city’s workers aren’t peons too? I think you’re confusing them with the National government.
Your average day to day worker is just trying to make a paycheck that isn’t keeping up with inflation to feed their families, also serving people who are ungrateful like you! If you think working in public service is easy, why don’t you do it?
I feel bad for the city and county employees who have to deal with people like you every day. Just like your postal worker, garbage people, teachers, first responders, etc. they are just trying to serve their community and make a home here. They’re not your enemy.
Laurel says
Over it: Correct! Most people have no idea what they are talking about when it comes to civil service.
By the way, civil service workers are tax payers too.
Laurel says
And…civil service workers are paying into private, religious and home school vouchers, that they cannot afford to send their own kids to.
Skibum says
And all of this concerning revenue shortage is local government’s reality without even considering the devastating hit that local governments all across the state will be facing if and when voters are duped into supporting the horrible property tax cut amendment that irresponsible state maga politicians are scheming to enact.
Ever hear the saying “You can’t squeeze blood from a turnip?” You cannot plan for revenue that isn’t there. Local government budgets would be decimated, and citizens would only find out the horrible impacts that await them once it would be done and over with. Wise up… get yourselves educated and informed! Don’t let the state’s tax fraud scheme wipe out the important, even critical city and county services and infrastructure that we rely on and enjoy here in Palm Coast!
Koyote says
But, but, but …. didn’t Uncle Ronnie promise that all the ‘essential’ services (i.e. acceptable according to the Book of Ron) will be provided for in his Small, Ugly Bill?
Cut the waste says
The entire budget (all depts) could be cut a minimum of 10% without any noticable difference. There is easily that much waste existing today..
Next eliminate all the losers that the city is carrying (Golf course,Tennis center etc)
Sell them and realize some capital
Thirdly grow a set and tell the sheriff NO MORE $$. That dept is the biggest budget drain with the most waste..(just look how many show up for anything requiring their presence and how many just sit in their cars parked for hours
Lastly eliminate 15% of road dept and park dept employees. There is no need for them to travel in groups. Real workers don’t need an audience.
Let the dust settle and see what we gain financially
Rwboggess says
The budgeting and staff of the sheriff’s office needs to be shifted from a staffing model based on a 4-5 year old study which was based on population increases to a model based on need and performance. And as also pointed out, each incident to which the sheriff’s office responds usually results in 2 or 3 deputies – that policy needs to be re-evaluated. As taxpayers we are paying millions for a sheriff’s office to provide services but where are the services? Again, I ask, how many warnings or citations have been issued for e-bike infractions? No one seems to have an answer.
The budget needs to be based on fact-based needs – not wants.
Laurel says
Don’t y’all love it when trying a make a call, you get the automatic answering system, that makes you sit through all the possibilities you aren’t interested in, to pass you on to the elevator music, while you wait for the system to repeated tell you how important your call is?
You ain’t seen nothing yet.
No answer says
Try to call the water dept now
It’s impossible
If you don’t go to the website you can’t get them at all anyway
Laurel says
I have, and I got through, though it took time.
Do you figure it will somehow get better with less staff?
What, exactly is the plan after the election?
There is none.
Disgusted and Dismayed says
Apparently the city council has been oblivious to the comments of the citizens for the past two years. It is more and more difficult to afford to live here and you are considering a significant rate increase? Do they not realize what happens when empty homes start occupying the streets in our neighborhoods because people are forced out???
Land of no turn signals says says
Shortfall? Is that because everybody’s Property tax went down?I must have missed it.With the ridiculous amount of house’s being built that’s a lot of impact fee’s and new revenue $$$ being collected.Let’s face it no matter how much money is collected they will alway’s cry poverty.Vote yes and watch them really squirm.
Atwp says
Does anyone who works for the city no anything about budgeting? I do. Stop wasting, stop stealing if that is happening, spend money on what is needed, save because what is saved should be used to invest and spent on needs. Ask tough questions do we need nine sheriffs, does the staff NEED A HUGE PAY RAISE. LOOK AT THE FUNDS AVAILABLE LOOK AT THE NEEDS AND SPEND ACCORDINGLY. RIGHT NOW FIGET THE WANTS, SPENDING MONEY ON WANTS IS NOT THE BEST THING TO DO. INCREASING TAXES ISN’T GOOD IF FINANCIAL BAD HABITS DONT CHANGE.
Waste not want not says
Theft if time I believe is the biggest issue
GW says
Wow, great, intelligent comments. Having lived d here off and on since 1987, i see a city with big city ambitions but no jobs to support it.
I will start with the Sheriffs Department. We are NOT Daytona Beach. We cannot afford all of your possee. Bust everyone back to patrolmen. Get rid of all the layers of management. Be accountable!
Waste not want not says
Interesting how much $$ the sheriff horse posse cost us taxpayers just to ride in parades.
They have NEVER been used on any search and rescue or missing person!
Is this actually a needed expense so slick Rick can ride a house in a parade ?
Do we even really need a full time agriculture officer ?
FlaglerLive says
The claim that the Sheriff’s Office has never been used on a search and rescue mission or a missing person mission is grossly wrong. We have reported on several search and rescues–a little boy in the Bulow Creek ruins, a kayaker in the Bulow Creek area, the Ricky Wheeler search, a couple in west Flagler’s woods come to mind–and have stopped reporting on searches for missing persons because they are so frequent, though generally successful, thanks to the sheriff’s cooperation with Flagler County FireFlight, the emergency helicopter. While we have been skeptical of the need for an additional helicopter (as opposed to a needed 24-hour FireFlight operation), knocking the sheriff’s search and rescue or missing person operations is inaccurate. Please do n ot use this site to disseminate misinformation. The commenter, incidentally, routinely violates FlaglerLive’s policy against using different handles, to deceive readers into thinking that the commenter is many different persons. Repeat offenses will get you banned, and the sheriff will not search for or rescue you.
Waste not want not says
I clarify my comment and stand by it.
The mounted posse unit of FCSO has never been called upon to assist in any manner in any way for any ongoing investigation
I was NOT referring to SO as an agency just the posse
Dennis C Rathsam says
Time to layoff some people, cut the councils salary.Teach 2 deputy’s to fly the chopper, or sell it. Too many crews with far too many people, watching 1 guy work. 1 man garbage trucks with a giant arm, like the have in St Pete, the man never leaves the truck. And whom ever the person is that plays chemist with our water needs to be replaced, The city should be ashamed of this yellow tinted water, & brown toilet rings. Replace Grossman with a cheaper hire.
Skibum says
Mr. “expert” on all things local government, huh? You sound just like the orange-faced buffoon in the WH, dismissing experienced and level headed U.S. Park Service restoration experts with a wave of his tiny hands. He says to them, “I have a pool guy that does all of the cleaning down in Mar-A-Lago and I can get him to do the reflection pool restoration work at a fraction of the cost you bozos are proposing!”
All I can say is this: it is evident that you have no clue, but you keep hitting those keyboard keys like you are posting nonsense on social media at 3 am like daddy pedo does. Now, I will admit that there are always ways that public agencies could look at to save money and be more efficient. But have you even thought for a brief second that there are actual laws, policies, regulations and yes, those dastardly SAFETY considerations that inform procedures that are mandatory, as well as numbers of personnel that are mandatory for safety and to avoid potential civil liability if something bad happens?
The bottom line is that while very minimal staffing for many of the jobs you listed above maybe could be put in place, that doesn’t mean it would be more efficient, OR SAFE! Saving money in the short term could well mean paying out much more in the long term. Especially if a preventable accident or occurrence was the foreseeable result of a failure to provide adequate personnel just to save a few bucks.
Your daddy in the WH is the perfect example of a complete idiot, know nothing who is costing American taxpayers tons and tons of money with all of his boneheaded, ignorant and foolish ideas. Causing chaos and catastrophe in everything he touches seems to be his calling card, just like most of his other “bizness brainstorms” that went bankrupt. If I were you, I wouldn’t hold him up as some genius with good ideas on how to save money, or try to emulate his brain farts… just saying.
Brad W says
The City had the opportunity to cut $400k in expenses at the Southern Recreation Center, have better operations for racquet sports there with more programming, and bring larger tournaments for both sports generating economic impacts and they snubbed the opportunity.
Tired of it says
The same politicians telling us there is not enough money to do the necessary things that need to be done, will turn around and tell you they support DeSantis abomination of a tax bill. Has anybody seen a plan to address what will happen if the bill passes? The bill is an effort to dupe the taxpayers into thinking this will benefit them. Wait until they begin to experience the lack of services.
Laurel says
The *plan* after the midterm is made up of unicorns and butterflies.
The fact that people are accepting that is astounding!
Thistownneedsanenima says
They need to gut the police. Such a waste. The other day I saw no less than 5 cops arresting, presumingly at least, an old, non violent offender. The reason being is that they are way more cops than are needed and they are sitting around, bored, doing cocaine in cul de sacs. This right wing stupidity needs to end. Any of the people that voted for any of these Republicans and are now complaining…well, what do you think is going to happen when you vote in clowns. Other than the parks people, there has not been one sensible decision made in this town in the 30+ years that I have lived here.
Lois says
It’s very sad that the city is always crying about no money. The sheriff is always trying to build his empire bigger. The living conditions in the city are reduced every year by more traffic and crummy roads. City leaders MUST grasp the needs of the people. Slow down, fix the issues, and finally run the city as it should be run you people are embarrassing.
Deborah Coffey says
I just don’t know how many times some of us in the minority in Flagler County have to say this: Republicans always fail at governing because their priorities are always out of order! Always! You can’t keep feeding the wealthy donors and starving the poor tax payers. Sooner or later, people will see and understand the scam and get angry! Are we there yet?
Ed P says
Hello Deborah,
If we could just get rid of those damn pesky Republicans, everything with the world would be right again.
Ask yourself why over the past 2-3 decades Florida evolved from a swing state to Republican.
Look no further than conservatism framed to voters as common sense.
Pandemic freedom, economic practicality, cultural reassurance.
Makes an awful lot of the lefts political ideologies appear out of step with the realities of daily life.
Over simplified but basic underlying cause.
Bronxite says
Several websites list salaries of palm coast city employees.
https://opengovpay.com/employer/fl/city-of-palm-coast
Ed Danko, former Vice-Mayor PC says
WATCH AND LEARN as “Tax & Spend” Pontieri votes to raise your taxes once again while at the same time claiming she reduced them! She is pissing on your leg and telling you it’s raining!
Laurel says
All class.