The Flagler County Board of County Commissioners set the county’s FY‑2026 tentative budget framework July 14, establishing proposed millage rates and special assessments, and scheduling the first public hearing for Sept. 11. The board also continued a substantive discussion about long‑term beach renourishment funding, the potential use of a municipal service benefit unit (MSBU) or other agreements, and how to meet local match requirements for federal and state grant programs.

Budget votes and timing

At a special meeting immediately after the workshop the board voted unanimously to set proposed operating millage rates that will appear on August notices: a general fund operating rate of 7.8695 mills and an environmentally sensitive lands (ESL) operating rate of 0.125 mills, producing a combined operating rate of 7.9945 mills. The board then approved proposed debt‑service millage rates of 0.0855 mills (ESL debt) and 0.10 mills (judicial center debt), for a total proposed FY‑2026 rate of 8.18 mills — a net reduction of 0.0543 mills from FY‑2025.

Motions and recorded procedure: Commissioner Carney moved, Commissioner Richardson seconded the operating millage motion; Commissioner Hansen moved and Commissioner Carney seconded the debt‑service motion. All motions passed unanimously (5–0). The board also set its first public hearing to adopt the tentative budget for Sept. 11, 2025 at 5:01 p.m. in the Board Chambers at the Flagler County Government Services Building, and approved the format and amounts for FY‑26 special assessments (see "Votes at a glance").

Budget priorities highlighted by staff

John Brower, financial services director, presented the tentative budget as balanced at an 8.18‑mill proposed rate and said it reflects the board’s strategic priorities: public safety, infrastructure and core services. Brower and County Administrator Heidi Petito noted the budget includes funding for new public safety positions (15 firefighter‑paramedics, three sheriff deputies and one RadioCAD technician), the transfer of 28 emergency communications dispatch employees to the county, three new positions at the Nexus Center, a 2% cost‑of‑living adjustment and increased reserves. Brower said the tentative budget includes roughly $12.55 million for capital projects and $2.7 million for capital equipment replacement; staff also pointed to $8.1 million earmarked for beach work in next year’s plan.

Public and commissioner focus on beaches and MSBU path

A significant portion of the public comment and commissioner questioning centered on beach renourishment funding, and whether the county can meet state and federal funding match requirements for planned projects (the discussion repeatedly referenced FEMA "CATG" eligibility) without a dedicated, recurring local funding source. Commissioner Hansen and several public commenters urged the county to pursue a Northern 10‑mile MSBU to create a standing local funding mechanism; staff and legal counsel said the MSBU path requires a narrowly specified engineered cost and a defined benefit allocation and that enacting an MSBU for FY‑2026 would be difficult on the current timeline.

Staff outlined alternatives: (1) proceed with interlocal agreements or local contribution agreements for specific reaches north of certain landmarks (a stopgap that could satisfy grant conditions for eligibility), or (2) complete a targeted engineering and assessment methodology and enact an MSBU for FY‑2027. Staff said that earlier engineering and PFM consulting work gave options but that a new, focused engineering methodology would likely be required if the board wishes to adopt an MSBU by the end of the calendar year. Several public speakers representing homeowner and property groups urged quick action so local match funds will be available for scheduled federal or state projects.

Other items and fiscal details

Brower noted the tentative budget reduces the overall millage for the fifth consecutive year and increases general fund reserves. The budget also includes carryforward dollars, non‑ad valorem funding for stormwater and beach activities recorded in operating accounts rather than the capital program, and support increases for constitutional officers.

Commissioners moved a handful of direction items during the workshop: (a) staff will prepare lease language improvements and return the Bull Creek lease for formal consideration; (b) the board asked staff to come back with a clearer proposal and timeline for an MSBU or alternate interlocal funding agreements on the beach program; and (c) staff agreed to bring back more detailed CIP options for sports fields, courthouse parking/parking improvements, and operations such as the adult day‑care phase‑out options.

Votes at a glance

- Set proposed general fund operating millage at 7.8695 mills and ESL operating at 0.125 mills (total operating 7.9945 mills). Motion: Commissioner Carney; second: Commissioner Richardson. Vote: 5–0, approved.

- Set proposed ESL debt service millage at 0.0855 mills and judicial center debt at 0.10 mills (total proposed rate 8.18 mills). Motion: Commissioner Hansen; second: Commissioner Carney. Vote: 5–0, approved.

- Set first public hearing on the tentative budget for Sept. 11, 2025 at 5:01 p.m., Board Chambers. Motion: Commissioner Kearney; second: Commissioner Hansen. Vote: 5–0, approved.

- Set FY‑26 special assessment rates as presented (Espinosa SSD, Rema Ridge SSD, county mandatory solid waste collection, North Malacampa, Marineland Acres, Painters Hill seawall, Dunes CDD stormwater and nuisance abatement by cost). Motion: Commissioner Hansen; second: Commissioner Richardson. Vote: 5–0, approved. (Clerk to provide assessment sunset dates per board request.)

Why this matters: The tentative budget sets staffing, capital and reserve priorities for the county and establishes the property tax rates that will be published in August notices. The unresolved question of a durable local funding source for beach maintenance — and the timeline for either an MSBU or alternate agreements — has immediate implications for federal and state matching funds and for the county’s ability to assume long‑term maintenance responsibilities for certain reaches of shoreline.

What’s next: The board will publish the tentative rates on August notices, hold a first public hearing Sept. 11 and continue to refine the budget, the capital improvement plan and the beach‑funding options before final adoption in late September.