Flagler County administration and financial staff opened work on the FY2027 budget and delivered a detailed capital improvement program update.

Staff highlighted major near‑term capital projects (County Road 205 reconstruction, Jungle Hut Road resurfacing, Malecomper Canal restoration, 1st Avenue drainage, fire station construction, the SMA mental‑health receiving facility, visitor eco discovery center and a multipurpose preparedness/shelter facility). The presentation stressed a substantial unfunded capital gap; the adopted five‑year CIP anticipates roughly $10 million in programmed projects but staff identified an additional approximately $77 million of unfunded capital needs across the county.

Budget staff also warned that several pending state legislative proposals could meaningfully reduce ad valorem revenues if voters approve expanded homestead exemptions or similar measures. Administration estimated that immediate changes under some proposals could remove tens of millions of dollars from the county tax base and said the county should examine contingency revenue strategies — for example, MSBUs (municipal services benefit units), MSTUs (municipal service taxing units), assessments or other non‑ad valorem tools — while carefully weighing equity and statutory constraints.

Commissioners asked staff for scenario work and for consultant support where required (for example, to model MSBU/MSNU options for public safety funding), and asked that staff prioritize stormwater, roads and coastal resilience in capital planning. The board also asked for staged budgeting scenarios reflecting different legislative outcomes and to bring back prioritization recommendations and probable local‑match requirements for state/federal grants.

What’s next: staff will run multi‑scenario revenue and expenditure analyses, evaluate non‑ad valorem funding options and return with prioritized project lists and budget options as the FY27 development continues toward the official kickoff and timelines.