The Palm Coast City Council held a business workshop on Tuesday, July 14, 2026, focused mainly on the proposed fiscal year 2027 budget, including a possible property tax rate increase, additional sheriff’s deputies, and how to spend leftover project funds. The council also heard public comment on water quality, traffic signals, and an animal control ordinance, and took action on a nuisance abatement assessment and a federal housing grant plan.
Public Comment
During the meeting’s public comment period, several residents raised concerns unrelated to the day’s main agenda items. One speaker said a stomach illness has been linked to the city’s water system and argued that boil-water notices should be announced countywide rather than street by street. The speaker also raised objections to city officials, including claims about a council seat held past its expiration and about campaign contributions accepted from developers.
Another resident criticized the city’s traffic signal timing on several streets, saying he had not received a response to concerns he raised by email. Councilman Ty Miller and Councilman Ed Danko (referred to in the meeting as Councilman Sullivan) both said they had responded to the resident’s messages and were looking into the issue.
Resident Barbara Fay urged the council to strengthen the city’s animal control ordinance, calling for stricter rules on tethering animals outdoors, requirements for weatherproof outdoor shelters, a ban on overnight outdoor confinement between 10 p.m. and 6 a.m., and tighter restrictions on backyard breeding operations. Councilman Miller asked staff to review best practices from other communities and report back with possible ordinance changes.
Budget Overview and the Millage Rate
City Manager Mike McGlothlin told the council that a slight increase in the city’s tax rate, known as the millage rate, is needed to maintain current service levels without adding new positions or a general cost-of-living raise for employees, though a merit-based raise capped at 3% would remain. Budget staff, led by Budget and Procurement Manager Gwen Ragsdale and Finance Director Helena Alves, walked the council through revenue and expense projections for the roughly $72 million general fund, which is projected to grow by about $4.6 million, or 6.8%, over the current year.
Flagler County Property Appraiser Jay Gardner presented an analysis of a proposed statewide homestead exemption increase that will appear on the November ballot. Gardner said the measure could cost Flagler County governments between roughly $9.2 million and $15.9 million in lost revenue in its first year, depending on the exemption amount chosen, with the loss expected to grow substantially in following years. Gardner said the change would shift more of the tax burden onto non-homesteaded properties, including rental homes and businesses, potentially leading to higher rents. “It is going to be a hit,” Gardner said. “This is a tax shift… You’re taking me and giving me a break, and making somebody else pay for it or cutting services.”
After discussion, the council reached a consensus to set a maximum proposed millage rate of 4.2296 for the coming budget year, up from the current 4.0893, with the understanding that the rate could still be lowered before final adoption in September. Council members discussed various ways to find additional savings, including declining a proposed rate increase from the Flagler Humane Society for animal control services, reducing funding earmarked for economic development incentives that have gone largely unused, and possibly adding two public works positions without accompanying vehicles.
Law Enforcement, Fire, and Parks Budgets
The proposed budget includes a contractual cost increase for the Flagler County Sheriff’s Office covering the city, but does not include funding for nine additional deputies the sheriff’s office has requested, which would cost about $1 million. Sheriff’s office Chief Mark Strowbridge urged the council not to fall behind on a three-year staffing plan developed after a study found the city was understaffed relative to population growth.
Fire Chief Kyle Berryhill said the department’s call volume has grown about 73% since 2020, while the department’s budget has grown at a slower pace. The proposed fire budget includes a 7.7% increase, driven mainly by personnel costs, and does not add new positions, even as two new fire stations come online.
Parks and Recreation Director James Hurst presented budgets showing continued financial losses at both the city’s aquatic center and its Southern Recreation Center, with the latter recovering only about 62% of its costs through user fees. Several council members asked staff to develop a clearer plan to increase revenue at the facility, noting it was originally funded in part through tourist development dollars with the expectation that it would draw outside tournaments. The golf course budget, by contrast, is nearing full cost recovery after improvements council members praised.
Public Works Director Matt Mansell and IT Director Doug Akins also presented their department budgets, both requesting no new positions despite growing workloads. Council members and Mansell discussed rising overtime costs tied to short-staffing and difficulty retaining trained employees who are recruited away by private companies offering higher pay.
Leftover Project Funds and a Future Skate Park
Stormwater and Engineering Manager Carl Cote presented options for spending about $960,000 in unused funds originally set aside for the recently completed Indian Trail Sports Complex parking expansion. Options included safety netting and raised fencing at ball fields, new batting cages for Little League, additional parking and site work at the Southern Recreation Center, and a future skate park.
Several children and teenagers spoke during public comment in support of building a larger, modern concrete skate park, arguing the city’s existing facilities are outdated and too small for its growing population. Council members expressed general support for a new skate park but did not commit funding at this meeting, instead directing staff to study potential locations, including property near the YMCA and the site of the aging Frieda Zamba pool, and to return with cost estimates for design work. The council reached consensus to fund the safety improvements, batting cages, and additional parking at the Southern Recreation Center from the leftover funds.
Nuisance Abatement Assessment
The council reviewed the city’s 2026 nuisance abatement assessment, which allows the city to recover costs for addressing problems such as hazardous trees, unsecured structures, illegal dumping, and wildfire mitigation on properties whose owners do not respond to notices. Code Enforcement Manager Barbara Grossman said the city has collected roughly $521,000 through the program since 2021, with a collection rate of about 98-99% each year.
Community Development Block Grant Plan
Community Development staff presented the city’s federal fiscal year 2026-2027 Community Development Block Grant (CDBG) action plan, which includes about $481,889 in federal funding for home repair assistance, first-time homebuyer programs, a public service mini-grant, a summer camp program, and program administration. Staff also highlighted a new online application system shared with the county’s SHIP housing program, an updated public housing data dashboard, and a series of free housing and financial counseling workshops. Staff said foreclosure filings have been rising locally, with about 60 to 70 homes currently in some stage of foreclosure, many of them originally built through Habitat for Humanity.
Closing Comments
In closing remarks, council members discussed early feedback on a new three-way stop intersection near Town Center, with a police commander confirming a recent crash there was unrelated to the new traffic pattern. Council members also thanked residents for participating in a recent Children’s Business Fair and promoted an upcoming Palm Coast night at a Daytona Tortugas baseball game.
