Property owners in the unincorporated area of the barrier island received a letter from the Flagler County government administration on August 15 informing them of a potential special tax the county may implement in the future to fund beach protection. The letter stated that there would be no levy in the upcoming fiscal year, which runs from October 1, 2026, to September 30, 2026, even though a line item for the new tax will show up on tax bills. The sum that would be shown would be zero.
The county is holding the legally mandated public hearings on September 11 before imposing such a special assessment. To ascertain the levy for the next year (beginning on October 1, 2026), however, the results of an engineering study are still pending. Property owners have interpreted the letter as a warning that a tax is imminent and have expressed disapproval at being singled out to pay for beach protection.
The county released a Q&A and clarifying statement today. County Administrator Heidi Petito explained, “I wanted to give context for why we issued a public statement regarding the MSBU.” She referred to the levy by its technical term, a Municipal Service Benefit Unit, because the money raised from it is meant to directly benefit property owners by protecting their properties from the effects of beach erosion. The MSBU letter is difficult for many residents to interpret.
Clarifying concerns is the goal of the statement that follows in its entirety as supplied by the administration.
Residents of the barrier island’s unincorporated region received a public notification from Flagler County via mail about the proposed Municipal Service Benefit Unit (MSBU) for Beach Management.
In December 2024, the MSBU district was legally created. According to the notice, the assessment will show up as zero dollars ($0.00) on property owners’ tax bills and the County Commission will not levy it during the public hearing on September 11, 2025. However, in order to maintain the MSBU’s validity for future use, state law mandates that the yearly notice be sent.
In the future, an MSBU will play a significant role in the overall finance plan for beach management. However, we have to finish the necessary apportionment study before any assessments may be imposed. In order to achieve this, the County has engaged an engineering expert to study the MSBU’s suitable cost allocation in light of beach management requirements and the properties’ immediate benefits.A separate postal notice detailing the precise amount to be assessed on their properties, the date of the public hearing where the assessment will be levied, and how to object will be sent to property owners prior to the imposition of any future assessments.
Flagler County’s funding strategy for this crucial program, which calls for a countywide solution, has remained constant. The funding plan will be set up as a list of possible sources, such as dedicated ad valorem millage, tourist development tax, the MSBU, local option sales tax, and state/federal grants, due to the substantial costs involved and the recognition of the direct and countywide benefits of a healthy coastline. A referendum by voters may be necessary for some parts of this finance arrangement.
The County has already allocated $8.1 million in the Fiscal Year 2026 budget to assist Beach Management as a sign of our dedication. In order to get input and look into possibilities for creating a long-term, sustainable funding source, the Board of County Commissioners will keep asking citizens for their opinions over the course of the upcoming year using a range of platforms, such as public forums and workshop discussions.
There are no final decisions yet. As we collaborate to safeguard and maintain our beaches for future generations, we sincerely welcome community participation and feedback. We also appreciate the community’s ongoing patience and support.
The MSBU’s Beach Management frequently asked questions
What was the purpose of the public notification of a Beach Management MSBU that I received?
A: In December 2024, the Municipal Service Benefit Unit (MSBU) district was established. Despite the fact that there are no assessments this year, state law mandates that an annual notice be delivered in order to maintain the MSBU’s existence.
Does this imply that I must make a payment right away?
A: Not at all. In 2025, no taxes are imposed. It was merely an informational notice.
Is the MSBU going to be utilized in the future?
A: In agreement. Although an engineering study is now being conducted to establish the amount to be assessed, the MSBU will be included in the financial plan for Beach Management.
How will funding for beach management be provided?
A combination of possible funding sources, such as ad valorem (dedicated millage), MSBU, local choice sales tax, state/federal grants, and tourism development tax, has always been the strategy. Voters may need to approve some of these.
To date, how much has the County committed?
A: To support Beach Management initiatives, the Board of County Commissioners has already allocated $8.1 million for Fiscal Year 2026.
What comes next?
A: To help define the final funding approach, the County will continue to organize public forums and discussions throughout the course of the upcoming year. We value and seek public input before making any final decisions.
What makes this significant?
A: Residents of Flagler County gain from the preservation and protection of the county’s beaches in many ways, including increased tourism, property values, storm protection, habitat, and quality of life.
