- August 4, 2026
The City of Palm Coast has eliminated six positions as part of an organizational restructuring that city officials say is intended to improve efficiency and prepare for a tighter fiscal future, while some elected officials defended the move as a necessary consequence of budget constraints and one longtime employee criticized how the process was handled.
In announcing the changes, the city said the restructuring was part of an effort to align operations with the fiscal direction established by the City Council and improve efficiency.
According to the city, the restructuring is designed to "align operations with the fiscal direction established by the City Council" while maintaining service levels for residents.
"The restructuring included the elimination of several positions," the city said in a statement. "Decisions like these are never easy and are made only after careful evaluation of the organization's operational needs and long-term financial responsibilities."
The city said it would not discuss individual personnel matters out of respect for employee privacy.
The eliminated positions include Code Enforcement Manager Barbara Grossman, Animal Control Officer Shelley Burton, Temporary Staff Assistant Carol Goewey, Land Management Coordinator Tracey Doak, Landscape Architect Richard Picatagi and Temporary Animal Control Officer Kathryn Tillman.
City records show the eliminated positions represented more than $490,000 in annual salaries. Four employees — Grossman, Burton, Doak and Picatagi — also received $20,000 separation payouts. Grossman's annual salary was approximately $137,766, while Picatagi earned about $106,801, Doak about $86,488 and Burton about $61,059.
Budget direction
City Manager Mike McGlothlin said the restructuring stems from City Council's direction to prepare a budget using the rollback millage rate.
"My responsibility as City Manager is to provide the City Council with objective, professional analysis of the financial impacts associated with their policy decisions," McGlothlin said. "Presenting the operational consequences of various millage rates is not a pressure tactic. It is part of my duty to ensure elected officials and the public have the information needed to make informed decisions."
McGlothlin said staff is already working toward that goal.
"At City Council's direction, staff is currently preparing a budget based on the rollback millage rate for presentation at the Aug. 25 workshop," he said. "Staff has already made significant progress on that effort and will provide the Council and the public with a clear understanding of the adjustments necessary to balance the budget at that funding level."
He emphasized that council ultimately will decide the city's final property tax rate and budget.
"Ultimately, it is City Council's decision to establish the final millage rate and adopt the City's budget," McGlothlin said. "My role is to provide accurate information, present available options, and implement the policy direction established by the Council."
Residents will have an opportunity to comment during public budget hearings, with the first tentatively scheduled for Sept. 9 at 5:15 p.m. at City Hall.
Pontieri: Focus was on finding efficiencies
Vice Mayor Theresa Pontieri said the restructuring followed City Council's direction to pursue a rollback budget but stressed that the executive team determined where efficiencies could be achieved.
"The City Council gave direction to the city manager to work within a certain millage rate for this coming fiscal year," Pontieri said. "The city manager went back to our executive team and said, 'We need to look again at our departments and see if there's any cost savings or inefficiencies that we can achieve in order to get us to this reduced millage rate.'"
She said department leaders analyzed operations before recommending changes.
"After that analysis, the executive team came back with certain suggestions, and it just resulted in a restructuring of some things in our code and planning department in order to achieve those efficiencies."
Pontieri said she supports continually reviewing city operations to identify savings and believes that effort should occur regardless of economic conditions.
"There's always a way to find efficiencies in the things that you have to get done for the upcoming year," she said.
While acknowledging ongoing discussions about Florida's proposed constitutional amendment to eliminate property taxes, Pontieri said that issue did not influence her support for the restructuring.
"For me personally, Amendment 3 had nothing to do with this," she said, adding that her focus remained on reaching the rollback rate and keeping city costs as low as practical.
Pontieri also sought to reassure residents concerned about city services.
"There have been some assumptions out there that the steps that were taken are resulting in a lowered level of service for our code enforcement or for our animal control, and that's not the case," she said.
She noted the city intends to fill an existing animal control officer vacancy and said maintaining animal control services remains "a top priority."
Miller backs city manager's authority
Councilman Ty Miller said council members learned of the restructuring through an internal email that closely mirrored the city's public announcement and were not involved in the personnel decisions.
"There had been no discussion, I think, with council," Miller said. "Operationally, that falls within the city manager."
Miller said he supports McGlothlin's authority to determine staffing levels if those decisions improve efficiency.
"I support what he feels is necessary to do the job that we direct," Miller said.
He added that discussions surrounding the city's upcoming budget and uncertainty over future revenues likely influenced the review of staffing levels, although he stopped short of saying the council directly ordered the cuts.
"I support their efforts to find efficiencies," he said.
Miller acknowledged that budget reductions inevitably affect employees and city operations.
"When we're talking about budget cuts, some of those budget cuts are going to have real-world consequences," he said. "It'll look like service level cuts, it'll look like operational cuts and it'll look like cuts in people."
At the same time, Miller said city leaders must balance taxpayer expectations with maintaining services.
"You can't spend money you don't have, and you can't spend the residents' money that they don't have," he said. "You have to find ways to keep that organization going and viable."
Former manager criticizes departure
Among the employees affected was Grossman, who spent 21 years with the city before her position was eliminated.
Grossman declined to discuss the restructuring in detail but criticized how her departure was handled.
"I spent not 33 years with the city, but 21 years with the city, and to be walked out the way I did was really disgusting," Grossman said.
When asked about morale at City Hall, Grossman said she could not speak for remaining employees but said she had heard from many current and former colleagues.
"Have I received many phone calls concerning what happened and the concerns? I've received lots. I've received lots of phone calls," she said.
Pontieri said she could not comment on the specifics of Grossman's departure because council members were not involved in personnel decisions.
"I trust that our administrative team is very professional," Pontieri said, adding that she does not anticipate additional layoffs during the current fiscal year.
Miller likewise said he was not privy to the circumstances surrounding any individual employee's departure, noting that immediate separations are common in many organizations when employees leave.
Looking ahead
The restructuring comes as Palm Coast continues to navigate one of its most challenging budget seasons in recent years. City leaders have directed staff to prepare a rollback-rate budget while also weighing the potential financial implications of future state property tax changes.
The proposed budget will be presented to the City Council during an Aug. 25 workshop before formal public hearings begin in September.
