The Flagler County Board of County Commissioners held a budget workshop Monday afternoon, working through the county’s fiscal year 2025 audit results and hearing preliminary budget presentations from all five constitutional officers, the Clerk and Comptroller, Property Appraiser, Sheriff’s Office, Supervisor of Elections, and Tax Collector. The meeting ended with commissioners raising serious concerns about the financial uncertainty ahead, including possible changes to homestead property taxes and a state directive to model a 10% budget reduction.
A Clean Audit Across the Board
The workshop opened with Zach Shalifour, a partner with auditing firm James Moore & Company, presenting the results of Flagler County’s fiscal year 2025 audit — the firm’s first year working with the county.
The news was largely positive. The county received an “unmodified opinion” — the best possible — confirming that financial statements are fairly presented. The county had no material weaknesses, no significant deficiencies in internal controls, no compliance findings in its federal or state grant programs, and no red flags about its financial condition. The only two findings in any report were minor items for the Sheriff’s Office and the Property Appraiser, and Shalifour noted both had already been addressed.
The county’s general fund reserves stood at approximately 43% of annual spending — roughly five months — compared to the Government Finance Officers Association’s minimum recommendation of two months. Shalifour described the county’s reserve position as “healthy,” noting that Florida’s hurricane risk and other uncertainties justify holding more than the minimum.
“The word I kind of use is ‘healthy,’” Shalifour said, “because you’re above the minimum, which I’m conservative — but there’s a lot of reasons to say, here’s reasons why you might want to be above that minimum recommendation.”
The county also has a $91 million net pension liability shown in its financial statements, though Shalifour clarified this is a theoretical accounting figure and not an amount the county will need to write a check for, as long as required monthly contributions continue to be made.
Clerk and Comptroller Tom Bexley thanked Shalifour’s team and introduced Haley Pretz, a recent Flagler Palm Coast High School graduate from the digital arts program who designed the cover artwork for this year’s Annual Comprehensive Financial Report. Bexley joked that when he previously designed the covers himself, “they sucked,” and praised the school partnership.
Commission Chair Leanne Pennington asked that the audit report be added to the county’s transparency dashboard so residents can find it without navigating to the Clerk’s website. Staff agreed.
Property Appraiser: Lean Budget, Praised by Commissioners
Property Appraiser Jay Gardner presented a budget that commissioners described as one of the most efficient they had reviewed. Commissioner Pennington said she had compared Flagler County’s property appraiser budget against seven comparable counties and found it to be among the lowest — both in total dollars and in staff count — while delivering strong results.
Gardner’s office is requesting a 3% cost-of-living adjustment (COLA) and 2% merit, which, per Department of Revenue direction, have been placed in a “non-operating” line rather than the personnel line until officially approved. The office is not adding any new full-time positions, though Gardner noted new state legislation around homestead fraud investigation may eventually require additional staffing.
Clerk and Comptroller: 10% Budget Increase Faces Pushback
Bexley presented a proposed budget increase of approximately $500,000 — about 10% — driven by a 3% COLA, 2% merit, two new full-time positions to support financial operations between the Clerk’s office and the county, and retirement rate adjustments set by the state legislature.
Commissioner Pennington questioned why Flagler County spends significantly more on its Clerk’s office than comparable counties. Her analysis showed the county spends approximately $32 per resident on its Clerk, compared to $18-$19 for peer counties. She also noted that Volusia County — with a much larger population — spends less from its general fund on its Clerk’s office than Flagler does.
“We are 36%, 55%, 200% more than our peers,” Pennington said, asking for a clearer explanation of the discrepancy.
Bexley defended the budget, pointing to the complexity of the Clerk’s dual role as both a court-related function and a full county comptroller, and the growing difficulty of managing county finances. He also noted that earned revenue — fees from court-related operations — may account for some of the difference when comparing to other counties.
Pennington was direct about the budget outlook: “I just want to say it publicly — this is not going to be a good year. And we’re going to have to say no.”
She indicated that a 5% combined COLA and merit increase for all constitutional officers would not be sustainable given current projections, and suggested she would have preferred the merit discussion be delayed until after budget season. Bexley acknowledged the board’s position and said he would work within whatever parameters were set.
Commissioner Andy Dance asked Bexley to justify the two new positions — explaining what they would do, how many hours they would work, and why they are needed now. Pennington agreed that justification would be required before approval.
Sheriff’s Office: Growing Calls, Falling Crime, Rising Costs
Chief of Staff Mark Strowbridge presented on behalf of Sheriff Rick Staly, who was in Washington representing Flagler County’s model inmate programming at the National Sheriffs’ Association.
Strowbridge highlighted the agency’s continued growth in calls for service alongside a consistent decline in crime rates, which he attributed partly to increased staffing since 2017. He noted that Palm Coast was recently ranked the second safest city in Florida and the number one city in the state for retirees.
The Sheriff’s Office budget increase is approximately 4.13%, driven primarily by a 3% COLA. Unlike other constitutional offices, the Sheriff’s Office does not have a separate merit system — increases for union employees are governed by existing contracts.
Strowbridge touted the agency’s inmate programming, including culinary certification, HVAC and electrical training, a GED program, and the Homeward Bound fatherhood program. He said Sheriff Staly was presenting these programs to sheriffs across the country as a national model. Volunteers now number nearly 100, providing more than $1 million in services annually.
Key budget details included:
- Starting deputy pay at $57,000 — compared to $63,000 in neighboring St. Johns County, creating ongoing recruitment competition
- Average cost to bring on a new deputy: $166,000, compared to $206,000 in St. Johns County
- A Sheriff’s helicopter program operating cost is estimated at approximately $250,000 per year
- 13 new law enforcement officers requested — nine funded by the City of Palm Coast, phased in throughout the year
- A $350,000 inmate substance abuse treatment program, previously funded by a federal grant that has now expired, needs to become a recurring line item
Commissioner Pennington raised concerns about health insurance costs rising 20% — double digits for the second consecutive year — and asked whether consolidation with the county’s health plan was being considered. Strowbridge said all options remain on the table.
Commissioner Richardson expressed concern about rising fraud, citing it as one of the two most dangerous issues facing the community, alongside domestic violence. Strowbridge agreed, noting that most of his career in law enforcement has involved mental health-related calls.
Supervisor of Elections: Election Year Costs and a Cramped Office
Supervisor of Elections Katie Lenhart presented a budget reflecting the added costs of a general election year — more ballots, 13 days of early voting (compared to 8 for a primary), additional poll worker training, rising postage costs, and expanded software and communication contracts.
Lenhart noted that her office returned $370,000 in unspent funds from the prior year, much of it left over from a special election. Her budget includes a 3% COLA and 2% merit in line with other constitutional officers.
She also gave an update on a long-overdue renovation at the Supervisor of Elections office. The project has faced delays, but the main lobby is expected to open to the public by Wednesday of the current week. The early voting room — previously only 800 square feet — will nearly double in size once work is complete.
“Our office, unfortunately, wasn’t really designed for future growth, even though that’s what they said when they built this massive complex,” Lenhart said, adding that a new building will eventually be needed.
Chair Pennington thanked Lenhart and her team for maintaining public services throughout a construction project that she said caused significant disruption.
Tax Collector: Fee-Based and Budget Still Being Finalized
Tax Collector Shelly Edmondson noted that her office’s budget is commission-based — tied to the volume of taxes and fees collected — and is not due to the Department of Revenue until August 1. Her preliminary line shows a slight decrease of approximately $2,500. Her office returned more than $1 million to the county from unspent funds in the prior year.
The Big Picture: A Difficult Year Ahead
After the constitutional officer presentations, commissioners had a direct conversation about the overall fiscal outlook and the challenges the county faces going into fiscal year 2027.
Chair Pennington said the combined ask from all constitutional officers — totaling approximately $4.9 million — exceeds what a flat millage rate is projected to produce. She warned that a 5% combined compensation increase across all agencies is not currently sustainable.
Commissioners also discussed two major financial uncertainties that could reshape the county’s entire budget picture:
Save Our Homes / Homestead Exemption Changes: A proposed state ballot initiative to eliminate or significantly reduce homestead property taxes — which would require voter approval — could dramatically reduce local government revenue. Pennington said she needs to see financial scenarios showing what the county’s revenues and obligations would look like if the measure passes, before committing to any major new spending. She noted the county currently carries $86.4 million in debt, including beach renourishment and other projects. “Without seeing the scenario of Save Our Homes, what it leaves us with, along with the debt payments, I can’t — I’m very skeptical about going forward and committing to new projects,” she said.
10% Budget Reduction Exercise: A new state bill — effective January 1, 2027 — requires local governments to model what a 10% reduction in their budgets would look like. Commissioners said they asked for this exercise back in April and are still waiting for the results. Pennington said she wants to see that scenario before the June 15 general fund workshop, not after January.
Interim County Administrator Adam Mengel confirmed that the administrator’s proposed budget currently reflects a 3.6-3.9% decrease in general fund spending compared to the prior year. The COLA being modeled for county employees is 2.3%.
Commissioner Richardson expressed concern about the county’s financial direction: “I’m just very concerned about where we’re going to be three months from now and what we can do to be as conservative as possible.”
The next budget workshop is scheduled for June 15 at 1 p.m., where the general fund department budgets will be presented. The tentative budget is scheduled for the July 13 meeting, along with a discussion of Municipal Services Benefit Units. Two previously scheduled budget meetings — June 22 and June 29 — have been canceled.
This article is based on the Flagler County Commission Workshop transcript from June 8, 2026.
The post Clean Audit, Tight Budgets, and a Looming Tax Overhaul: Flagler County Commissioners Dig Into 2027 Budget Season first appeared on Flagler County Buzz.
