The 2006 Draft Daytona Beach City Budget (Item #169200) shows $7 million allocated to the Public Utilities Department under 'Other' and not assigned for any service, project or equipment purchase. Since this money was 'allocated' without a purpose to the Public Utilities department, it can be transferred and spent anywhere for anything, without the City Commission's vote or oversight. When questioned under Sunshine Law, a city accountant stated the $7 million was for 'If an emergency occurred'. This violates state law and city accounting policy. Emergency funds are to be kept in the city's General Fund or requested by ordinance and voted on by the City Commission. This $7 million allocation is actually a 'slush fund' hidden in plain site, for city management to use, without Commission approval or oversight. In 2005, city management transferred over $40 million from City Redevelopment Area funds and other sources to make money losing projects look profitable. (Click here for the evidence.)

Years Of Increases In Taxes, Spending & Debt
Daytona Beach property taxes have more than doubled between 2001 and 2006 while the cost of living (Consumer Price Index or CPI) has only risen 16% during that time and Daytona’s population has remained the same for ten years. The Daytona Beach city budget increased by over $100 million in six years! $120 million in 2001 to $224 million in 2007. The number of Daytona Beach City employees grew from approximately 675 in 2001 to over 1,100 in 2007, with no population increase and no need for 500 more city employees. (click here for evidence)

City management has borrowed millions of dollars through the years by selling bonds and obtaining other types of loans. The interest and principle charged for those loans is over $16 million dollars annually. From 2007 to 2025 residents will pay almost $75 million dollars in principle and interest on General Obligation and Water & Sewer Series 2002 Bonds. Those are just a few of the many bond debt category obligations we have. (Click here for the evidence).
City business ventures such as the municipal golf course and LPGA Tennis Center all operate at a loss. Hundreds of thousands of dollars are transferred from City Redevelopment Area funds (CRA) for these ventures to break even. What most residents don’t realize is we pay hundreds of thousands in interest on bonds or other loans, which were used to start these ventures in the first place.
In 2006-2007 the municipal golf course transferred $186,000 from the Halifax Harbor (CRA) to balance their budget. They also paid $205,509 in principle and interest (debt service) on the loan to buy the golf course years ago. Our municipal golf course is actually losing almost $400,000 annually! Taxpayers shouldn’t be forced to support these types of money losing businesses. They should be sold or leased to a private company to retire the debt.

Community Redevelopment Areas (CRA's) were created by Daytona Beach government to utilize a portion of property taxes collected to offer a combination of incentives and financing for redevelopment projects. The majority of property taxes collected from a specific CRA are supposed to be used in that same CRA. Our city management has used most of the CRA money for administrative purposes and to bankroll developers projects.

Bad Ideas and Poor Decisions 2005-2007
City management and politicians try to use $500,000 of Community Redevelopment Area money to fund the London Symphony Orchesta (LSO) event. Residents protest. Politicians use $500,000 from advalorum taxes instead, ignoring residents protests, violating state law, local ordinances and the public's trust. The Daytona International Festival Company, a new organization is created to manage the LSO event, and to avoid the lawsuit filed by Cox News against the News-Journal for using shareholder profits to fund this event. Daytona International Festival Company (DIFC) purchases the assests of bankrupt Central Florida Cultural Endeavors (CFCE) who previously ran the LSO event, creating the possibility the new company may be sued by Cox News, placing taxpayers $500,000 'donation' at risk. Daytona International Festival Company discovers it hasn't been in existance long enough to qualify for the $400,000 in grants the CFCE previously received. The LSO event now has $400,000 less funding than initially needed. In mid October, 2007 a Daytona resident sues the city to prohibit funding the LSO event. (Click here for a copy of the lawsuit) City management eliminates 74 city employees budgeted for 2007-2008 including 10 police support staff personnel, one police captain and $275,000 from the $32 million police budget. In the 2007 Daytona Beach City Commision Budget Workshop, Chief Chitwood lists 'Personnel Shortages' as his key Fiscal Year (FY) Issue. Contrary to their clain the city commission voted to reduce the number of police personnel (and other city personnel) while providing $500,000 of non-budgeted tax dollars to the London Symphony Orchestra special event. (Click here for more information).

Though land was donated and a Fire Truck already purchased, city management cancels construction of new LPGA Fire Station, due to lack of money in the city budget. Perhaps the $500,000 spent on the London Symphony Orchestra and $450,000 spent on illegally relocating private residents back-flow valves in the Lions Paw subdivision, should have been on a new Fire Station for LPGA residents.

City management selects new garbage collection company and raises rates 46%, even though majority of residents polled thought previous service was fine.

City management and elected officials don’t follow their own Fiscal Integrity Ordinance which requires that user fees be reviewed should an enterprise report an operating loss for two consecutive years…The Tennis Center has been in a deficit position since its inception. (Click here for the evidence)

City management continues over-hiring, unneeded land purchases, increasing employee health insurance benefits, discrimination lawsuits, vehicular injury lawsuits, accidental death lawsuits, etc causing consolidated insurance charges in increase from $9.9 million to $16.6 million in just five years. (Click here for the evidence)

Recent City employee history & facts:
A. The number of city employees earning between $70,000-$100,000 has doubled every year since 2004. Currently 67 employees fit this category costing taxpayers: 2004=$246,946, 2005=$425,526,
2006=$594,743.
B. In 2006, city management convinces Commission to give an 8% salary increase to 365 non-union employees regardless of their personal performance, costing taxpayers over $1.5 million more than previously budgeted.
C. In 2006 the city manager and city attorney receive 8% salary increases with undetermined auto allowances even though city manager's contract was only for a 4.7% increase
D. 18 City employees are paid in excess of $100,000 plus bonuses and car allowances.

Daytona sued for $100,000 due to free speech violations of woman who bared breasts in public nudity protest. City management and city attorney continues six year legal battle with adult clubs risking up to $30 million in civil rights lawsuits, if they lose. (Click here for evidence)

During the 2005 expansion of Daytona's public marina, city management sells the only Fire Boat in Volusia County. Stated it 'Wasn't used' and 'Had a high cost of maintenance'. In 2007, City management wants to buy a new Fire Boat at a cost of $125,000.

City management spends $600,000 on land for new police station, then discovers land is too wet to build on. Spends over $1 million more for new property on Williamson Boulevard. $24 million police station project is already $2 million over budget before construction started.

City manager wants $9 million bond issue to purchase the Corbin building on Main Street and convert it to another parking garage for the Ocean Center. Building could have been purchased in 2004 for $3 million but city manager elected not to do so.

City management, City Attorney and Commission continue to use Code Enforcement as political tool rather than as intended, leaving over $2 million in uncollected code enforcement fines outstanding, while ignoring violators that are often campaign contributors or Commissioner's friends.

City Commission allows numerous land use changes for beach side developer who chose not to repair majority of hotels damaged by hurricanes, instead planning to convert them to condominiums. After receiving major density and land use changes from City Commission, developer sells hotel properties for $12 million profit. Now, not enough hotel rooms exist to support multi-million dollar Ocean Center expansion and new proposed parking garage on Main Street.

City management continues over-hiring, unneeded land purchases, increasing employee health insurance benefits, discrimination lawsuits, vehicular injury lawsuits, accidental death lawsuits, etc. causing consolidated insurance charges to increase from $9.9 million to $16.6 million in just five years. (Click here for the evidence.)

City management convinces Commission to give an 8% salary increase to 365 non-union employees regardless of their personal performance, costing taxpayers over $1.5 million more than previously budgeted.

City management convinces Commission to offer additional health insurance benefits to city employees costing taxpayers $600,000. City employees now have better health insurance than most of the residents they 'serve'.

City Manager and City Attorney receive 8% salary increases with undetermined auto allowance. City Manager's contract was for 4.7% increase. (Click here for story)

October 2006, city management couldn't reduce the budget by $4 million to lower the property tax to the roll back rate. Four months later City Manager was able to cut budget $14 million because it was mandated by state law.

City management and commission vote to elimiante vehicle purchase program in 2005. Program still going strong in 2007, costing residents over $1.5 million annually.

City employee cell phone costs tripled from $42,778 in 2004 to over $128,000 in 2007!

City printing costs tripled since from $94,072 in 2004 to $248,559 in 2007!

Though 19 senior 'well qualified' City Directors and senior managers earn over $100,000 per year, (top 2% of salary in the nation) they still must spent $4 million on outside consultants over three years to help them do their jobs. (Click here for the evidence).

City Commissioners votes themselves another pay raise, the third one is six years.

City management increases redevelopment budget (money from CRA's) from $147,000 in 2004 to over $4 million in 2007. $500,000 spent on 'salaries', $150,000 on 'other professional services', $315,000 on 'accounting', $375,000 on 'other contractual services' and $150,000 on 'promotional activities,' Less than $200,000 was budgeted for neighborhood improvements. (Click here for the evidence).

City owned property at 144 S. Grandview is overgrown, graffiti covered, garbage in yard, boarded windows and transients living inside. Vacant lot to the north is used as a parking lot and pass through. Though numerous complaints have been filed against property over three years, Commissioners say it's the first they've heard of the problem during recent redevelopment discussions.

Home at 613 Vermont Ave. is abandoned with transients living inside. After numerous complaints resident receives email from city employees J. Carton and M. Guglielmo stating, "It's just a matter of finding the money and manpower to board up and secure the house." With over a $200 million in the city budget, the money shouldn't have to be 'found' to deal with this problem.

City management elects to purchase 516 S. Grandview Ave. property that's been in continual decline for years. Pays top dollar for neglected property that has no code enforcement fines on it, even though it's been cited numerous times.

Florida State Ethics Commission decides it's illegal for Commissioners to accept free tickets to NASCAR events. Commissioners then vote to have taxpayers buy the tickets for them at the cost of $5,000 annually.

Almost all city departmental budgets grow by at least 30% from 2006-2007. Redevelopment Services increases by 2,600%, Cultural Services by 265%, City Manager/Government Relations by 149%, City Attorney by 46%, Municipal Golf Course by 24%. City Manger adds $500,000 'contingency' category to his department budget. (Click here for City of Daytona Beach Division Summaries)

City management spends $100,000 in consulting fees for 'Visioning Plan' with 400% density growth in neighborhoods. Residents vote against plan. City management then creates new 'Visioning Plan' inviting residents participation and vote. Part way through plan development, resident volunteers are told they can't vote on items in plan because it violates Sunshine Law, though city attorney Robert Brown said it did not, weeks earlier. Many volunteers for 'Visioning Plan' are commercial real estate developers that don't live in Daytona Beach.

City management transfers over $40 million between various department budgets and CRA's including $86,200 from Halifax Harbor Fund (CRA) to Golf Course; $144,287 from Halifax Harbor Fund (CRA) to Tennis Center Budget; $117,224 from three CRA funds to Public Works Department violating Florida law. (Click here for evidence).

City makes $12 million profit, by overcharging residents for water, sewage treatment and garbage collection. City's 'publically' owned utility makes over 170% profit at residents expense.

City management out-sources utility billing to Orlando company then increases Utility Accounting Budget by over 300%, from $40,738 in 2004 to $149,703 in 2007.

City Utility Department needs more space due to growth in number of employees. City management moves them to city owned Halifax Harbor Marina office space that was built with CRA money. Now office space can't be rented out to pay debt service on the construction bonds.

City management votes to spend $5.5 million on new glass butterfly conservatory and shuffle board courts. Meanwhile, 12,000 Daytona residents, many disabled, continue to live below the poverty level.

City management requests a $38 million budget increase from 2006 to 2007. That's a 17% increase while Daytona's population remained the same and the consumer price index (cost of living) increased less than 3%.

City management doubles Business Tax, previously known as Occupational License for 2007. Commission continues to wonder why new businesses won't move to Daytona Beach.

City management quietly declines offer to purchase Halifax Harbor Marina without opening the issue for public debate.

City spends $7 million constructing new LPGA tennis club in 2005. Elects to close or sell club in 2007 and will continue to lose $250,000 per year after sale or closure to service the debt. City's Director of Leisure Services was never disciplined or terminated for multi-million dollar mistake.

City management and Commission refuse to assist Daytona Beach YMCA, built in the city's minority housing area, and allows it to close due to financial problems.