Palm Coast council adopts tentative FY2026 budget, sets tentative millage at 4.0893 mills

The City of Palm Coast City Council on Sept. 5 adopted a tentative fiscal year 2025–2026 budget of $696,444,327 and set a tentative millage rate of 4.0893 mills, by unanimous vote during a public hearing at the John Nitz Community Wing of City Hall. The council also set a final public hearing to adopt the budget and final millage on Sept. 24 at 5:15 p.m.

The tentative budget funds a large slate of capital and operating needs, with council and staff saying the principal drivers are water and wastewater infrastructure, stormwater work and public safety. Finance Director Helena Aus and Budget and Procurement Manager Gwen Ragsdale told council that ad valorem (property) tax revenue accounts for about 63% of general fund revenues; state revenues about 15%; charges for services about 11%; and permits and fees about 4%. The council reduced the city tax rate by one‑tenth of a mill from an earlier proposal in response to council guidance given at the Aug. 26 workshop.

Councilmembers and staff framed the change: the rollback rate — the rate that would yield the same total dollars as last year — is 4.0035 mills; the city’s adopted maximum for 2026 is listed as 4.1893 mills; the council’s proposed tentative rate is 4.0893 mills. City leaders explained that under Florida’s TRIM process the state defines a “tax increase” as any situation where the taxing authority would collect one dollar more than the prior year; staff said the council reduced the rate by 0.1 mill while still increasing…