Palm Coast City Council members spent Tuesday, Aug. 25, 2026, discussing the city’s proposed 2027 budget, debating how to pay for a recent land purchase and taking public comment on skate parks, taxes and other issues. The workshop started at 9 a.m. at City Hall with all five council members present: Mayor Norris, Vice Mayor Pontieri and council members Gambaro, Miller and Sullivan.
Public comment
Several residents spoke before the budget hearing. Skaters Liz Esposito and Forrest Salmons urged the council to maintain $300,000 for a concrete skate park in the budget, citing a change.org petition with 725 signatures.
City Council candidate Jeanie Duarte and Resident Mark Stancil argued that two appointed council members are improperly serving and should be removed so that the seats can be filled in the next election, which they believe occurred in the recent primary. Stancil said his friend Ray Stevens should rightfully represent District 3, noting the city charter doesn’t have a gray area,” and urging the mayor to do the “honorable thing.” Duarte described the seats as “unlawful.”
Resident Gary Kunis criticized the council for its responses to questions at a previous meeting, stating, “None of you four can be trusted.” Tony Amaral expressed concerns about the land settlement approved the night before, including the $1 million non-refundable escrow deposit and the need to borrow money. Oscar Chalico, who is building a home in Espanola, commented that Palm Coast had no business pursuing annexation there, saying, “This is not manifest destiny to go westward,” and that the city should “want to be left alone.”
Council Member Miller replied that the application to annex the Espanola area was withdrawn Friday, so the city has no plans to annex. Vice Mayor Pontieri said the land lawsuit “has nothing to do with what anybody on the dais said.”
The 2027 budget
Gwen Ragsdale from finance staff presented the final proposed budget. The city’s total budget for all funds is approximately 516 million, a 25 percent decrease compared to this year due to the timing of large capital projects. The general fund, which is primarily funded by property taxes, is approximately 70.7 million, an increase of 4.6 percent.
“This is where your taxes go,” Mayor Norris told the audience.
Taxable property value increased by 4.13 percent, mostly due to new construction, while existing properties decreased slightly. Staff proposed maintaining the millage (tax) rate at 4.1387, the “rollback rate,” which would generate roughly the same amount of revenue as last year. The maximum allowable millage rate is 4.2296.
Staff discussed the budgets for many of the departments. Significant changes include reductions due to a Community Development reorganization, three code enforcement positions, and five fire department employees (due to the delay of Tower 22). The law enforcement budget increased 8.7 percent under the current contract, but does not include the nine additional deputies the sheriff wanted. Costs of insurance and vehicles were frequently mentioned; staff noted that a pickup truck purchased in 2018 is now costing 60,000 to operate. “Insurance is killing us across the board,” one member remarked.
Deputies or spending
There was much debate over funding new sheriff’s deputies. Vice Mayor Pontieri proposed reducing the city manager’s contingency fund from 400,000 to 200,000 and cutting other spending to fund one or two new deputies, noting that the county funded four of the nine requested and the city funded none. She referenced a shooting that occurred early in the morning at the time of the meeting.
Mayor Norris, along with council members Gambaro, Miller and Sullivan, were not in favor of the addition of deputies, saying this is not the time due to uncertainty regarding Amendment 3, a ballot proposition which would change state taxes, and a pending lawsuit which could reduce Palm Coast’s impact fees. Gambaro referred to the situation as a “calculated risk,” and pointed out that Palm Coast is one of the safest cities in Florida.
Pontieri questioned the priorities, asking, “You all just approved a $15 million purchase of land in Town Center, and we’re talking about $300,000 to not be prudent?” Ultimately, the council agreed to a motion to reduce the city manager’s contingency fund by 200,000 but did not agree to fund the new deputies.
The council agreed that the 210,000 payment to the Flagler Humane Society is actually an increase of 21 percent over last year, not a decrease as stated in a newspaper op ed, though the city declines the humane society’s request to double its funding.
Paying for the land
The bulk of the meeting focused on how to pay for the 17 million purchase of land to settle the Palm Coast Holdings lawsuit. Staff revealed that the agreement was signed by the city manager on Aug. 20 and the escrow deposit of 17 million was paid on Aug. 24.
Options discussed included reducing reserves, creating a line of credit up to 15 million, and using tax increment (CRA) money. Palm Coast’s reserve fund is currently 28 percent; lowering it to 20 percent would release 5.7 million, and lowering it to 15 percent would release 9 million. A line of credit was estimated to cost around 4.9 percent interest. Mayor Norris and Sullivan preferred using more reserves and borrowing less, stating, “It’s not just money we dump in the ocean,” Sullivan said. “We at least get the land.” Pontieri was opposed to decreasing reserves to 15 percent given hurricane season, and to funding this particular purchase rather than other priorities such as roads, an animal shelter, or health care for on-site employees.
The council agreed to solicit bids for a line of credit up to 15 million and to compare the 15 percent and 20 percent reserve fund scenarios at the next meeting. Later in the meeting, Pontieri sought consensus to retain the services of an outside firm for due diligence on the complex land purchase, stating that staff lacks the “bandwidth.”
Roads, funds and the YMCA pool
Capital Projects Director Carl Cote spoke about the status of road projects. By moving some projects around, removing Hargrove Grade and funding Town Center, staff concluded that all six priority residential collector roads can be paved with the current funding level of 1 million per year (for roads, the city does not use reserves) without any road projects going unfunded. The council agreed to cease city funding for the Westward Expansion loop road until the state decides what it is going to do.
Cote confirmed that 300,000 has been set aside for the skate park. Fire Station 22 will be opened next Monday.
The council debated 3 million allocated toward the Olympic-sized pool at the planned YMCA. The 3 million is based on the assumption that the school district will contribute 3 million, which it has not decided to do. Pontieri questioned the 6 million price tag and garnered consensus to have staff look into the cost of similar pools. The YMCA building itself will be constructed either way; the pool is contingent on the funding.
Staff discussed water, wastewater, stormwater, sanitation, building and other funds, as well as smaller funds such as the 179,000 special events fund and 12.1 million health insurance fund.
Sheriff’s office and taxes
Chief Deputy Mark Stroberg spoke on the deputies, saying he responded to the 2 a.m. shooting. He stated “every deputy sheriff that we can add is a benefit” and that past councils had “kicked the can down the road.” He suggested that new deputies could be funded for only the last six months of the year so that changes can be made after Amendment 3 is decided.
Mayor Norris pointed out that Palm Coast has the lowest tax rate in the county and in Florida and that only 21 percent of a resident’s tax bill goes to the city. Miller added that the city has no fire fee, no utility fee and no franchise fee (besides commercial waste).
More public comment
In the final comment, contractor Nefti DeJesus of 1621 Building and Remodeling and a member of the Flagler Home Builders Association, objected to the proposed commercial hauling regulation which could require self-haulers to become registered franchisees, stating, “Hauling your own debris does not make you a garbage company.” He also raised a permitting issue that puts liability on him.
Another resident urged the city to rebid its trash contract to lower rates. Gary Kunis pressed the city on saltwater canal maintenance, saying promised work was not completed. Megan Rizzo called for more athletic fields, saying, “We simply need more places for kids to play.” Duarte returned to the issue of the improperly seated council members, saying, “I look forward to next week not seeing these two gentlemen still sitting there.”
The council’s first budget public hearing will be held on Sept. 9 at 5:15 p.m., and the final hearing on Sept. 23.
The post Palm Coast Debates Deputies, Reserves and a $17M Land Deal While Setting Its 2027 Budget first appeared on Flagler County Buzz.
