- December 4, 2025
Palm Coast’s proposed 2026 fiscal year budget is going to increase 65% to $696 million from the adopted 2025 budget of $421 million.
Most of the increase is spread across several departments, but the largest increase is in the water-wastewater capital projects fund, which is increasing 289% to $326 million from the previous year’s $83 million budget. This fund is not supported by property taxes, but instead various grant revenue, special assessments, and impact fees, according to city budget presentation documents.
Financial Services Director Helena Alves said at the Sept. 10 meeting that this fund is responsible for the water and wastewater treatment plant upgrades and other major capital improvement projects.
Despite the increase, the council and city staff reduced the budget in several areas, including eliminating several employee positions. The Palm Coast City Council did reduce the millage by one-tenth of a mill to 4.0893, or $4.0893 per $1,000 in assessed taxable property value.
Property tax revenue supports the city’s general fund, which is topping out in Palm Coast at $67.6 million for 2026. A rolled back rate is the rate a council would need to reduce the millage to to keep the amount of property taxes paid to Palm Coast the same as the previous year.
The council was happy that the city was able to trim the budget enough to be able to afford the partial reduction of one-tenth of a mill, saving around $1 million dollars.
Councilman Ty Miller said, just like with homeowners deal with the cost of living increases, so, too does the city. This budget represents a “half-way” point, he said.
“It's very difficult to just maintain the same budget every single year,” he said. “But I think we found a good middle ground of reducing the tax rate against not increasing anything at all.”
The City Council adopted the proposed budget and the reduced millage rate for the 2026 budget 5-0 at the Sept. 10 meeting. The city’s final public hearing is Wednesday, Sept. 24 at 5:15 p.m.
Vice Mayor Theresa Carli Pontieri said the budget distills important council priorities in water and wastewater infrastructure, public safety and stormwater infrastructure.
“When I think about what the role of government is, those are what the role of government should be: infrastructure and public safety,” she said.
