The City Council of Palm Coast held a business workshop on July 8, 2025, to discuss the proposed budget for the fiscal year 2026. The meeting highlighted key financial strategies aimed at enhancing city services while maintaining fiscal responsibility.

City Manager's presentation emphasized a potential reduction in the general fund millage rate from 4.1893 to 4.0893, which would still allow for improved services and a robust fund balance. Significant investments are planned in public safety, including the addition of nine new deputies and the opening of two new fire stations. The budget also allocates funds for neighborhood road maintenance and critical infrastructure projects, such as the maintenance operations complex and saltwater canal dredging.

The budget reflects a responsible approach to financial stewardship, with a proposed general fund budget of $69 million, marking a 12.9% increase from the previous year. This increase is attributed to rising property values and new construction, which are expected to generate additional revenue.

Employee compensation is also a priority, with a proposed 2% cost of living adjustment and a 3% merit increase for city staff. However, the budget includes the elimination of certain positions and a freeze on others to streamline operations and reduce costs.

The workshop also covered various departmental budgets, including public works, parks and recreation, and information technology. Notably, the parks and recreation budget is set to increase by 13.4%, focusing on maintaining existing facilities and enhancing community programs. The IT department's budget includes funding for technology upgrades and a strategic analysis of the city's GIS program.

Overall, the proposed budget aims to balance the city's strategic priorities with long-term sustainability, ensuring that Palm Coast continues to grow as a vibrant and resilient community. The council will review further details and adjustments in upcoming meetings as they finalize the budget for the fiscal year 2026.