DEP designates 10.3 miles critically eroded; Flagler leaders debate referendum, MSBU and funding mix

Flagler County officials told municipal partners on Aug. 27 that the state Department of Environmental Protection now lists 10.3 miles of the county’s coastline as critically eroded, expanding eligibility for a 50/50 state cost share on beach restoration projects.

Heidi Petito, Flagler County administrator, told the joint workshop that the newly designated area "fills the gaps from Varn Park all the way to the southern border" and makes those segments eligible for the DEP cost‑share program, provided local governments demonstrate public access and provide a local match. Petito also said the county budget for fiscal year 2026 includes $8,190,000 set aside for beach management.

Petito reported additional federal and state steps on construction funding. FEMA has obligated $8.7 million toward a roughly $11.7 million project for Hurricane Milton repairs; that FEMA obligation moves to the state for execution and requires a local match. Petito said the county has earmarked match funds from the $5 million already set aside in the current beach management budget. She added the county is pursuing separate FEMA CATG funds tied to Hurricanes Ian and Nicole; that request remains under DEP environmental review and the estimated cost for that project is roughly $5.5 million.

Officials spent most of the meeting discussing how to fund long‑term maintenance. County staff presented a funding model that mixes a new half‑cent local option sales tax, continued Tourist Development Tax (TDT) contributions, county general fund allocations and assessments such as an MSBU/MSTU for barrier‑island parcels. Several municipalities said they previously supported a referendum approach to create a dedicated half‑cent sales tax to generate recurring revenue; others urged caution and stressed the need for strict accountability and clear ballot language.

Arguments centered on fairness and transparency. Some municipal leaders said a referendum that specifies dedicated beach funding and explains how other uses (for example, Palm Coast infrastructure projects) would be accounted for would foster voter support. Others warned that even a voter‑approved funding stream can be subject to later municipal budget decisions unless interlocal agreements and legal mechanisms lock in commitments.

Procedural items and next steps were settled: staff will continue engineering apportionment work for MSBU calculations, a consultant will perform a parcel‑based apportionment so exact assessment amounts are known, and county staff will consult municipal attorneys about interlocal agreement language and the referendum timetable. Ansley Ryn, coastal engineering administrator, said the large dredging “reach 2” project will go to bid in September and the county expects dredging to occur in early spring next year once a contractor’s schedule is confirmed.

Public commenters and municipal leaders emphasized outreach and technical support. The regional compound‑flooding study was flagged as a grant and appropriation support document. No formal vote on a referendum or MSBU was taken at the workshop.