Palm Coast City Council on Aug. 26 reviewed a consolidated proposed fiscal year 2026 budget that staff said totals about $697,533,000 and agreed by council consensus to present a proposed millage of 4.0893 — a reduction of 0.10 mill from the 2025 rate of 4.1893 — at the Sept. 10 tentative-adoption hearing. Helena Ragsdale, the city budget presenter, said the overall change in the general fund is an increase of $7,400,000, or 12.2 percent, and that the big drivers in the citywide numbers are water, wastewater and capital projects. "Overall change of $7,400,000 or 12.2% increase," Ragsdale told the council during the presentation.Why it matters: The proposed budget groups more than a dozen funds across operating, capital and utility accounts. Council members stressed the need to keep the general-fund millage as low as possible while also acknowledging infrastructure spending projected for the coming years, especially water and wastewater capital work that staff said will total in the hundreds of millions. The city manager and finance staff said much of the year-over-year increase reflects planned capital spending (not ongoing operating increases) and one-time items such as pump-station repairs and utility projects. Body: Staff presented the budget in sections: general fund summary and positions, proprietary funds including the utility rate study results, capital projects and internal service funds. Ragsdale said ad valorem taxes were the largest single revenue source and that assessed value rose roughly 10.34 percent year over year, with about 5.4 percent attributable to new construction. Staff built conservatively against uncertain state revenues such as communications-service tax and fuel tax and included a general contingency (appropriated fund balance) of about $2.1 million in the general fund. Major line items called out during the presentation included: - An 11 percent proposed increase to the fire budget tied to two new stations coming online and a collective-bargaining increase; - A 24.3 percent increase in the law-enforcement budget to fund deputies the sheriff requested (described in the meeting as 5 deputies beginning Oct. 1 and 4 more April 1); - Large multi‑year water/wastewater capital programs that staff summarized as part of a five-year plan (staff said total water/wastewater capital spending over five years could reach about $721 million). Council direction and vote: Council discussed the Truth in Millage (TRIM) options and asked staff to prepare the tentative budget using a 0.10‑mill reduction from the prior year. Council member Gamara said, "I'm all in on the, tenth of a mill reduction." Councilmember Miller seconded that position; the mayor and other members joined by consensus and staff said they would prepare the proposed millage of 4.0893 for the Sept. 10 meeting where the council will take formal tentative-adoption action and public comment. Discussion versus decision: The council’s reduction was recorded as a consensus direction to prepare the proposed millage at 4.0893 for the Sept. 10 tentative-adoption hearing; formal adoption requires the public hearings on Sept. 10 (tentative) and Sept. 24 (final). Staff and several council members repeatedly emphasized that the council’s control is the general‑fund millage and that enterprise funds (utilities, stormwater) must set rates consistent with cost recovery and bond/debt requirements. What council asked next: Council members asked staff for clearer, high-level summaries on internal allocations (IT, fleet, facilities) on the summary slides and for line‑item detail on capital projects that will drive the larger five‑year totals. The manager and finance team said they will post detailed line‑item budgets to the city website and present follow-up slides at the Sept. 10 meeting. Ending: City staff reminded residents about TRIM notices and homestead exemptions and said the council will consider the proposed millage and the tentative budget at 5:15 p.m. on Wednesday, Sept. 10; the final public hearing is scheduled for Sept. 24. The managers said the budget website and the line-item packet are available to the public.