The Palm Coast City Council held a lengthy workshop meeting on Tuesday, August 26, 2025, covering the city’s proposed budget, the future of Palm Harbor Golf Course, and potential management changes for recreational facilities.
Budget Presentation Shows Major Infrastructure Investment
City staff presented the final proposed budget for fiscal year 2026, totaling nearly $698 million. This represents a significant increase from the previous year’s $348 million budget, largely due to major water and wastewater infrastructure projects.
“The total for the funds is approximately 697.5 million. This represents an increase of 65.5% from your fiscal year 2025 adopted budget,” explained the budget director. “Utility capital accounts for 242.5 million or 47%.”
The general fund, which covers day-to-day city operations, would increase to $68.6 million, up 12.2% from the previous year. This includes adding new staff positions, particularly in code enforcement and the sheriff’s department.
The council discussed property tax rates, known as millage rates. Currently set at 4.1893 mills (meaning $4.19 per $1,000 of property value), council members debated whether to reduce it by one-tenth of a mill. A mill is a unit of measurement for property tax rates.
“I’m all in on the tenth of a mill reduction,” said one council member, with others agreeing. The reduction would save taxpayers about $1 million citywide while still providing necessary city services.
Several residents spoke about the budget during public comment. One questioned why the city would spend $500,000 on building improvements at City Hall during tough economic times. Another praised the council for considering tax relief.
Golf Course Operations Under Review
Much of the meeting focused on Palm Harbor Golf Course, which has been losing money for several years. Currently operating at a deficit of about $100,000 this year, the 147-acre course serves as both a recreational facility and a neighborhood amenity.
Staff presented three options: sell the golf course, outsource management to a private company, or keep it under city control while working toward breaking even financially.
“We have three options for council. Execute the RFP process for the golf course sale, draft up an RFP for outsourcing golf course operations, or the golf course remain under city management to be cost-recovered every year,” explained the parks and recreation director.
Dennis, the recreation manager now overseeing golf operations, has implemented several changes, including adjusted hours, new fees, and updated pricing. “Over the last two months, I’ve been observing, getting feedback from our golfers and trying to find ways to improve our operations,” he said.
Many residents spoke passionately about keeping the golf course public. One longtime resident said, “All those people don’t want our golf course sold. We need to keep the golf course a public municipal amenity.”
Another speaker noted the course’s importance to property values and drainage, referencing problems at nearby Matanzas Golf Course after it was sold and developed with housing.
The council ultimately decided to give city management until March to improve operations, with plans to evaluate outsourcing management if needed. “I think we need to give Dennis and the rest of our team a chance to actually see what a year will do,” said one council member.
Other Facility Management Discussions
The council also reviewed potential partnerships for other recreational facilities. The YMCA proposed managing the Frieda Zamba swimming pool, but after analysis, staff found no financial benefit to the city.
Instead, they recommended a partnership where the city maintains operations while the YMCA provides specialized programming like mermaid classes and scuba instruction. “We would maintain operations until the new pool is built,” staff explained, referring to planned future facilities.
For the Southern Recreation Center, USA Tennis offered to take over management and programming. However, council members requested more detailed cost comparisons before making a decision. The item was postponed to allow a thorough review of the proposal.
Fire Station Conversion Plans
The council reviewed plans to convert the old Fire Station 22 into a community facility. After meeting with various community groups, including the Historical Society, Chamber of Commerce, and arts organizations, architects presented three design options.
The preferred option would create a flexible space combining historical exhibits, arts and crafts areas, meeting rooms, and event space. “The recommended option from the various user groups, even including the historical society this was the preferred option,” explained the engineer.
The council unanimously supported the plan, which includes rebuilding the station’s original bell tower as a historical feature.
City Manager Search Continues
The council briefly discussed its ongoing search for a new city manager. Over 100 people applied for the position, which closed on August 15. The council will narrow the list to its top 25 candidates before the next workshop meeting.
Public Input on Various Topics
Throughout the meeting, residents voiced concerns about various city issues. Several questioned spending priorities, with one asking why recreational facilities should be subsidized by taxpayers.
Golf course supporters emphasized its value as a community amenity, while others worried about the financial burden on residents. Tennis and pickleball players expressed interest in maintaining quality programming at the Southern Recreation Center.
The workshop lasted several hours, with council members taking a break midway through to continue discussions. The next workshop is scheduled for September 9, where several items will return for further consideration.
The council’s decisions reflect ongoing efforts to balance fiscal responsibility with community services, as growth continues throughout Palm Coast. Property values have increased by over 10% this year, providing more tax revenue while also raising costs for residents.
The post Palm Coast Council Votes to Cut Taxes While Weighing $698M Budget and Golf Course Future first appeared on Flagler County Buzz.
