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Palm Coast council adopts maximum millage rate after hours-long budget debate
Summary
After lengthy discussion about deputies, staffing and pay plans, Palm Coast City Council set a FY27 maximum millage of 4.2296 on July 21, 2026, preserving staff direction to seek reductions before final adoption and voting 4–1 to set the statutory cap.
The Palm Coast City Council on July 21 adopted a maximum millage rate of 4.2296 for fiscal year 2027 after an extended budget discussion that touched on public-safety staffing, code-enforcement reductions and employee pay plans.
Finance staff presented the proposed general fund budget at $72,000,000, an increase of about $4.6 million (6.8%) over FY26. Gwen Ragsdale told the council the proposed millage would generate roughly $46.5 million and estimated a cost to homeowners at about $423 per $100,000 of taxable value. "The proposed general fund budget for fiscal year 2027 is 72,000,000," Ragsdale said. Council members pressed staff on unfunded items including nine additional sheriff deputies (estimated at $1,087,000) and two public-works positions.
Debate centered on how many deputies to fund now, whether the city should continue paying for a school resource officer and where recurring savings could be found. Vice Mayor Pontieri argued for funding five deputies immediately, while other council members urged prioritizing service levels and finding budget cuts. Mayor Michael Norris said he did not support raising taxes and emphasized trying to hold the line as the city navigates economic uncertainty: "I do not feel comfortable raising the millage rate at all."
After discussion, Council member Miller moved to adopt the proposed maximum millage as the statutory cap; the motion passed 4–1 (Miller, Norris, Sullivan and Gambaro yes; Vice Mayor Pontieri no). The vote sets a ceiling; staff and council will continue work over the summer to identify reductions so the final adopted millage in September can be lower. Public hearings on the tentative and final budgets are tentatively scheduled for Sept. 9 and Sept. 23 at City Hall.
The council also discussed personnel policy questions tied to pay, including whether to replace the proposed merit program with a straightforward cost-of-living adjustment (COLA). Members debated the distributional effects of merit increases versus COLA and highlighted potential recurring costs tied to merit eligibility.
