Flagler County outlines $120M countywide beach management plan, seeks new half‑cent sales tax and MSBU contributions

Flagler County officials told the Flagler Beach City Commission on Feb. 27 that a multi‑reach beach management plan adopted by the county in October 2023 needs additional funding to complete initial construction and ongoing maintenance.

The county estimates roughly $120 million to restore and nourish about 18 miles of coastline; after identified federal and state allocations the county says a local shortfall of about $42.4 million remains for initial construction, plus a projected periodic maintenance program that the county’s engineers modeled at intervals of about six years. County Administrator Heidi Petito and her staff described a financing approach that layers existing tourism funds, grants, a proposed new half‑cent local option sales tax shared across municipalities, and a municipal service benefit unit (MSBU) in the unincorporated barrier‑island areas.

Why it matters: County staff said beaches drive tourism, protecting an estimated $890 million annual tourism impact to Flagler County and supporting roughly 12,000 jobs; they said unchecked erosion poses economic, access and infrastructure risks. The county staff urged cities and towns to decide whether to join a countywide funding plan so the county can pursue federal and state construction grants and manage periodic renourishment.

What was presented: Petito walked through the county’s four “reaches” of coastline and described work already completed in southern Flagler Beach (a Corps project that placed about 1.7 million cubic yards of sand and a 19‑foot dune at a cost of about $29 million). The county’s planning values show: Reach 2 (north of that project) would need about 1.8 million cubic yards of sand at an estimated $35 million construction cost; Reach 3 and Reach 4 raise permitting and hard‑bottom mitigation complexities that increase costs and lengthen schedules. FEMA Category G (permanent restoration) work for the unincorporated north was estimated by the county consultant at about $12 million with a $2 million local share pending FEMA review.

Funding proposal and timing: County staff proposed a countywide financing package that includes: (a) use of existing Tourist Development funds (TDC), including a capital fund; (b) leveraging the county’s existing half‑cent local option sales tax and exploring exercising the remaining eligible half‑cent (the county currently levies a half cent and said it is eligible to levy the other half); (c) an MSBU assessment (presented as a $160 flat annual charge per parcel in a draft scenario for properties that most directly benefit); (d) negotiating ongoing FDOT contributions (Petito said FDOT staff had previously mentioned about $500,000 annually but that figure may be renegotiated); and (e) a county carryover of $5 million already set aside in fiscal year 2025. Petito said grant applications and commitments total roughly $19.3 million so far (including $4.3 million already committed) but the county projects the remaining shortfall at about $22.4 million after mid‑level grant assumptions. The county proposed using a combination of the new half‑cent for initial construction (with municipalities receiving a share but being asked to pledge part back to the beach plan) and MSBUs for near‑term maintenance funding.

Questions and concerns from Flagler Beach commissioners and residents: Commissioners asked how on‑street parking, parcel counts and the MSBU design would be handled; whether cities could require interlocal agreements; and what assurances would prevent county control of all funds without project delivery in Flagler Beach. Petito said interlocal agreements would be required to allow the county to manage projects in municipal areas; she also emphasized that the county would assume responsibility for post‑storm FEMA Cat B and Cat G claims if municipalities signed on. Residents and local commenters urged Flagler Beach to participate in a unified funding strategy rather than leave the county to fund unincorporated areas alone. One resident noted that only a small share of Flagler Beach parcels lie east of A1A and asked about fairness of flat MSBU charges.

Next steps and local process: County staff said the Board of County Commissioners must adopt decisions by April–May to fit the county budget calendar. The cities are negotiating interlocal agreements and the county scheduled joint meetings: Petito said staff will meet with municipalities on March 3 and hold a joint county‑city workshop on March 12; Flagler Beach commissioners agreed to a local workshop for discussion on March 6 at 5:30 p.m. The county emphasized that the Board of County Commissioners would need a supermajority (four of five) to implement the additional half‑cent sales tax.

What was not decided: The Flagler Beach commission did not commit the city to any funding mechanism at the Feb. 27 meeting. Commissioners agreed to a March 6 workshop to develop a local position and to continue coordination ahead of the county’s April–May budget decisions.

Ending: County staff said the plan’s objective is long‑term protection and periodic nourishment; the county asked cities and other local stakeholders to continue negotiating interlocal frameworks and to finalize commitments in time for the county’s budget process.