Budget presentation includes proposed millage rate reduction while addressing infrastructure needs
The Palm Coast City Council held its business workshop on July 8, 2025, covering a wide range of topics, including the proposed fiscal year 2026 budget, animal shelter concerns, stormwater management improvements, and ongoing infrastructure challenges.
Budget Highlights and Public Safety Investments
City Manager Lauren Johnston presented the fiscal year 2026 budget proposal, highlighting significant investments in public safety and infrastructure. The budget includes funding for nine new sheriff’s deputies and the opening of two new fire stations, while maintaining fiscal responsibility.
“This budget is a reflection of responsible financial stewardship and thoughtful investment in our future,” Johnston said. “We are investing in neighborhood road maintenance, public safety with the addition of nine new deputies, and we’ll be opening two new fire stations this year.”
The budget proposal includes a 2% cost-of-living adjustment and 3% merit increase for city employees. Financial Services Director Helena Alves explained that property values have increased 10.34%, with approximately 5.49% attributable to new construction.
Council members discussed setting the maximum millage rate, with options ranging from maintaining the current rate of 4.1893 mills to reducing it to 4.0893 mills. Vice Mayor Pontier advocated for the reduction, stating, “In the good years, and this is a good year, that property tax rate should get as low as we can get it without sacrificing the level of service and quality of life.”
After discussion, the council reached a consensus to set the maximum millage rate at 4.1893, maintaining the same rate as the previous year while preserving flexibility for potential future reductions.
Animal Shelter Concerns Dominate Public Comment
Multiple residents addressed the ongoing animal shelter crisis, with several speakers urging faster action on establishing a new facility. A 12-year board member of the Indian River County Humane Society criticized the slow pace of negotiations between the city and county.
“This is a very time-sensitive area,” they said. “There must be some way around the sunshine laws to let everybody just sit down for an hour and figure this out.”
A representative from the Animal Refuge Flagler noted frustration with the lengthy process, stating, “We’ve been at this for 18 months. The problems continue. They’re not going to go away.”
City Manager Johnston confirmed that a joint meeting with the county is scheduled for August 6th at 5:30 p.m., noting that animal control services are not currently included in the city’s strategic action plan or capital improvement program.
Ethics Complaints and Political Tensions
During public comment, Leslie Johnson raised concerns about potential conflicts of interest involving Acting City Manager Lauren Johnston’s involvement in various community organizations. Jeremy Davis echoed these concerns, calling for ethics investigations.
Mayor Norris addressed questions about legal expenses from a recent lawsuit, defending his actions and indicating he would continue to challenge what he views as improper procedures. The matter highlighted ongoing tensions within the council regarding legal costs and governance issues.
Infrastructure and Development Concerns
Several residents raised concerns about the city’s infrastructure capacity and development pace. One Resident warned about housing market saturation, noting that homes for sale in Palm Coast have increased from 1,200 to 2,400 over recent months.
“We have over a 2-year supply at the rate that homes are selling,” he said. “If we continue to flood the market with new homes as is proposed, it’s going to spiral the market down even further.”
Another resident criticized the city’s infrastructure preparedness, particularly regarding sewage systems during seasonal storms. “Here in Palm Coast, our local government has wasted vital resources and failed to provide even basic infrastructure that can withstand normal functions during seasonal storms,” she said.
Storm Water Management Presentation
Lynn Stevens, director of storm water engineering, provided a comprehensive update on the city’s storm water system, which includes over 1,200 miles of swales, 58 miles of freshwater canals, and over 36,000 driveway culverts.
Stevens detailed pilot programs testing different maintenance approaches, including walk-behind trenchers that showed promise for improving swale maintenance efficiency. The department tested various methods, including perforated liners used in Port St. Lucie and trenching equipment used in Palm Bay.
“We found that the walk-behind trencher is the most effective for our needs and would benefit and help us cover more swale work in our city,” Stevens said.
The presentation revealed that the city has made significant progress on projects from the 2019 stormwater master plan, with several major improvements completed or underway, including the London Waterway project and Colbert Lane drainage improvements.
Stevens requested approval to purchase two walk-behind trenchers at an estimated cost of $35,000, funded through savings in the sod budget, along with pipe inspection camera equipment to improve emergency response capabilities.
Nuisance Abatement Program
Code Enforcement Manager Barbara Grossman presented the annual nuisance abatement assessment, which addresses issues like wildfire mitigation, hazardous trees, and illegal dumping. Since 2012, the city has collected over $1.26 million from nuisance abatement assessments.
Vice Mayor Pontier questioned whether the city is being aggressive enough with repeat violators, particularly property owners with multiple violations. “I want to start being a deterrent,” she said. “Let’s start deterring. We’re constantly reactive with the same violators.”
Fire Department Achievements
Fire Chief Kyle Bariel reported record-breaking call volumes, with the department handling 17,700 calls in the past 12 months. Despite opening two new fire stations, the department is not requesting additional firefighter positions in the current budget.
“We anticipate that after about one year of service of those two new stations, we’ll have a pretty good idea of what the changes are,” Bariel said.
Looking Ahead
The council will continue budget discussions on July 15th, with additional presentations on proprietary funds scheduled for July 22nd. The stormwater equipment purchases are expected to be approved, with implementation beginning in the coming months.
The joint city-county meeting on animal services is scheduled for August 6th, potentially marking progress on the long-debated shelter issue.
