Thursday September 8th the council held a special meeting to adopt a tentative millage rate and budget. This does not mean that the budget and millage rate is set in stone yet, but it appears to be the path that the council is walking down. Council heard a presentation on the proposed budget along with any increases that will take place from the 2022-year to the 2023-year. Here is a brief overview of some of the increases in departments: Water/Wastewater budget increased 13%, Building Find increased 9.4%, Solid Waste fund increased 55%, IT increased 30%. Most of these increases are due to inflation and city growth. Because of the city growth, the departments are asking for more staff. The council heard how departments need more staff in many departments to keep up with growth from the city.
Major Capital Projects: these projects account for 135 million dollars of the budget and most of these are covered by fees like impact fees and even sales taxes and other incomes the city receives besides the millage rate. Focus of this fund includes upgrades to IT and firehouse 25. The Utility Wastewater Plant #2 is needing to expand to continue to keep up with city growth, Fire house 22 and 26 need improvements on their buildings.
Fleet maintenance is asking for a new position and to replace 43 assets, along with 26 new assets and 4 new fire vehicles. EMS has requested increases to upgrade their equipment. Health insurance fund increased due to standard inflation. Overall, they stated there was a request for 1.6 million for new equipment, and1.5 million for fire vehicles.
General Fund review was that expenditures increased 7.1%, and there were 3 new requests for the department. Construction, managing, and engineering is increasing by $240,000 due to a new position and increase in cost to operate. Planning budget is increasing $369,000 due to a new position increase and increase in cost to operate. Code enforcement is increasing $304,000 due to regular cost of increases like gas, as well as new programs like debris removal and abandoned buildings. Fire department is increasing 1.8 million dollars due to requesting 3 new positions as well as replacing two engines and other equipment. Law enforcement budget is increasing $797,000 due to a request for 5 additional deputies and a 5%increase built into the contract. Public works budget is increasing $854,000 due to a request for two additional positions and increased litter and median maintenance costs. Parks and Recreation budget is increasing $824,000 due to tennis, gold and aquatics parks maintenance and an increased cost in operation as well as a position request. Non-departmental budget is decreasing by 2.7million dollars largely due to a transfer of about 2.5 million dollars from the 2022 budget.
The council was informed that the max millage rate was 4.61 and the roll back rate is 4.0138.
The council was asked if they had questions about the budget and they answered they did not. Councilman Branquinho, and Klufas both went on record to state that the reason they do not have questions is because they have heard these figures at least 8-9 times over the last few months and they have already asked their questions.
The council went on to discuss the millage rate increase. The mayor read that the city proposes to levy a millage rate of 4.61, which is a 14.85% increase from the rollback rate of 4.0138 mills. The council then moved to discussion where Danko stated that he was against the budget, he is against the millage rate increase. He understands there is a deadline to agree to a millage rate increase and he urges his fellow councilmen to hold off on the increase and force the city departments to live under last years budget for one year, while the council finds a better way to decide the budget.
Councilman Fanelli stated that he did go back to the budget, and he doesn’t know the first thing about running a city, and what the departments need vs do not need. He stated everything in this budget is a necessity, it is meat, not fat to be trimmed. He states there is no room for anything to be cut from the budget. He sympathizes with residents and states that is raising his own taxes too.
Councilman Branquinho talked a bit about how even if we made cuts like a hiring freeze, it would only save the city 1.2million. That would still leave us with a deficit of 3 million dollars. He says he talked to the city manager and the department directors and that they all have justifiable reasons for their requests, and he cannot deny the city what they need to ensure proper functionality. He brought up the council salaries and canal study again and said if they revoked those two things that alone would save the city 350,000+. Branquinho also brought up the roads, he corrected his earlier statement from Tuesday that the roads would cost us 7 million; he said that it is 8.5million. If we don’t work on paving and fixing them, it won’t cost the 8.5 million dollars, but it could cost well over 20 million dollars if we wait a year or more to fix the roads. He brought up that the county takes double the taxes that the city of Palm Coast takes, and the city only receives about 23% of your property taxes, but the city provides most services.
Councilman Klufas essentially agreed with Fanelli on stating there is no fat to trim off of the city budget and that he trusts the city manager and the department directors to handle the day-to-day functions and decide what we need vs what can be lived without.
Mayor Alfin commented on the fact that the budget process is not something that is handled in just a couple of special meetings; he states on record that they have held special workshops and meetings regarding the budgeting process for about 7 months. Him and Danko both agreed that there is always room for improvement, and both expressed a desire to adjust how the budgeting for the city is handled in the future.
Public comment regarding the millage rate was just as emotional, and hard to listen to as it was on the September 6th meeting. Resident after resident got up to urge and plead with the council to not increase the millage rate this year strongly, and even emotionally. More than 25 people commented on the millage rate increase with all but one or two in total opposition of any kind of millage rate increase. Some commenters were upset and voiced offense at certain councilman and their comments from the September 6th meeting. Once commenter made a point to share his outrage over councilman Klufas’s comments about the canal dredging, especially the councilman’s violin comment.
After the long line of residents had their turn to share their opinions with the council, it was brought bake to the dais for discussion. Danko Talked about how the residents have spoken and all but one or two are in total opposition. He mentioned that by raising taxes we would be hurting our real estate industry, and he reiterated that we need to roll back the millage rate. Fanelli thanked the residents for their civility and respect while waiting to share their thoughts with the council and that he understands the hardships of the people, but he cannot find anything to cut in the budget.
Klufas agreed with his fellow councilmen and Fanelli especially that there is no fat to trim off this city budget and that he understands that homesteading creates inequality among taxes. He went on to state that homesteading allows people who have lived in their homes for long periods of time, to pay less taxes than those who just moved in. He understands that those who have been homesteaded for years upon years are not paying their fair share. He urged residents to remember that the budgeting and millage rate increases come up well in advance of the end of the year meetings and that residents need to pay attention to those meetings. He justified his agreement with the millage rate increase by stating that he must balance the quality of life for all residents with the city budget and needs.
Mayor Alfin went on to read a brief overview of the millage rate discussion and made a motion to pass a tentative millage rate increase of 4.61; it was seconded by councilman Klufas, and the motion passed 4-1 with only Danko being in opposition.
Upon adopting the tentative millage rate of 4.61 the city council then had to adopt the tentative budget for the 2023-year. The proposed budget is to be $328,187,633 for total expenditures and reserves. Public comment was opened for the budget, and one commenter came up to essentially support the councilman and asked them to ensure the city works on building up the infrastructure of the city as growth does not pay for itself. The commenter stated that it must be paid for so be it. The council voted to adopt the tentative budget and the motion passed 4-1 with Danko being the only one in opposition.
September 21st at 5:15 is when the council will hold their next meeting to formally adopt the final millage rate increase and final budget for the 2023-year.
