Multiple Flagler County municipalities met Wednesday evening for a joint workshop to address three critical issues facing the coastal community: lifeguard funding, legislative priorities, and long-term beach restoration financing.
The workshop included representatives from Flagler Beach, Flagler County, Palm Coast, Bunnell, Beverly Beach, and Marineland. Officials began by addressing recent changes in state law that now allow Tourist Development Tax (TDT) revenues to be used for lifeguard services.
Lifeguard Program Funding Changes
House Bill 731 amended state law to permit TDT funds to support lifeguard programs, providing a new funding option for the approximately $400,000 annual cost of Flagler Beach’s lifeguard services. The program has faced budget uncertainty in recent years, with county contributions sometimes threatened during budget discussions.
“The legislative change is favorable. It’s a good use of money,” said one Flagler Beach representative. “A lot of the tourists that come here tend to flock towards the guarded areas and tourists and non-residents of Flagler Beach are the vast majority of the ones getting pulled out of the water.”
The new law allows TDT revenues to be split between local and traveler visitation, though officials noted that tourism funds are already heavily committed to beach restoration projects. County commissioners expressed support for finding a stable funding mechanism to avoid annual budget battles over the lifeguard program.
Officials agreed to review the existing interlocal agreement (ILA) between the county and Flagler Beach, incorporate potential TDC funding, and examine visitor data to determine if lifeguard services should expand to other public beach access points to reduce congestion in central Flagler Beach.
Legislative Priorities Focus on Infrastructure
The workshop addressed upcoming legislative priorities ahead of the September 19 delegation meeting. State representatives and senators have indicated that infrastructure and storm resilience projects will receive the most support in the upcoming legislative session.
Officials discussed the importance of keeping project requests at $5 million or less, providing local matching funds, and demonstrating how projects improve hurricane preparedness. The legislature continues to face internal challenges, with one official noting that “the infighting is still there from last year” and that successful projects will likely need to go through the Senate rather than the House.
Several municipalities expressed interest in coordinating wastewater treatment requests, as all local governments face requirements to stop discharging treated water into the Intracoastal Waterway. One representative noted that framing these requests as water quality improvements rather than local infrastructure needs improves chances of state support.
County officials agreed to compile all municipal requests into a unified program by September 5, maintaining the collaborative approach that has proven successful in previous years.
Beach Restoration Funding Challenges
The most complex discussion centered on long-term funding for beach restoration and maintenance. Recent surveys show Flagler County now has 10.3 miles of critically eroded coastline, an increase from the previous 8 miles. While this designation makes more areas eligible for 50-50 cost sharing with the state, it also increases the scope of needed work.
County officials announced that FEMA has obligated $8.7 million for Hurricane Milton beach restoration, covering 75% of an $11.7 million project. The remaining 25% will be split between state and local governments, with the county’s $1.4 million share already budgeted.
However, the larger challenge remains finding sustainable funding for ongoing beach maintenance, estimated at $12 million annually. The county has allocated $8.19 million for fiscal year 2026 beach management through a combination of general funds, Tourist Development Council funds, and sales tax revenue.
Officials discussed the possibility of a half-cent sales tax referendum in November 2026, since the county commission lacks the supermajority needed to approve the tax without voter approval. Under the proposed plan, municipalities on the barrier island would dedicate their entire share to beach restoration, while inland municipalities like Palm Coast and Bunnell would split their portion between beach funding and local infrastructure needs.
“I think it would make sense if there to have a discussion and see if there’s support for a referendum,” said one county representative. However, another commissioner expressed concerns about the timeline and potential changes in elected leadership, asking “Can we actually do it without new boards undoing it?”
Palm Coast indicated support for a referendum approach, with one council member stating, “If we’re talking about a referendum at that point, I don’t know what it looks like now, but at that point, the city of Palm Coast was in favor of a referendum.”
Flagler Beach expressed full support, noting that “the original referendum presentation, Flagler Beach was in full support of.” Beverly Beach officials also indicated support for the referendum approach.
The funding plan would also include Municipal Service Benefit Units (MSBUs) – special tax districts that charge property owners who directly benefit from a service. These would be established on the barrier island by the end of 2025 to begin collections in the following tax year.
One resident raised concerns about the sales tax distribution, arguing that funds should be dedicated solely to beach restoration rather than split with other municipalities. “When you raise a tax which nobody likes, they want that tax to go towards something that they want done right,” the resident stated.
Officials acknowledged that the funding structure involves multiple revenue sources beyond the proposed sales tax, including existing sales tax funds, Tourist Development Council revenue, property tax millage, and the MSBU assessments.
Next Steps and Timeline
County officials face several approaching deadlines. The legislative delegation meeting is scheduled for September 19, and any sales tax referendum would need ballot language completed by early 2025 for the November 2026 election.
For beach funding, municipalities must establish MSBU districts by December 2025 to begin collections in 2026. The county offered to assist barrier island communities with this process.
The next joint workshop is tentatively scheduled for February 4, 2025, to continue discussions on all three topics. Officials also plan to receive a presentation on September 15 from the Northeast Florida Regional Council regarding their compound flooding study, which examines how multiple water sources contribute to coastal flooding during severe weather events.
The discussions highlighted the complex challenges facing Flagler County’s coastal communities as they balance growing tourism, increasing development, and the ongoing need to protect critical infrastructure from coastal erosion and storm damage.
Definitions:
- Tourist Development Tax (TDT): A tax on hotel rooms and short-term rentals used to promote tourism and fund tourism-related infrastructure
- Municipal Service Benefit Unit (MSBU): A special tax district where property owners pay for services that directly benefit their properties
- Interlocal Agreement (ILA): A contract between different government entities to share costs or services
- Supermajority: More than a simple majority, typically requiring 4 out of 5 votes on a county commission
- Millage: The tax rate applied to property values, expressed as dollars per $1,000 of assessed value
