The Flagler County Board of County Commissioners held a lengthy budget workshop Tuesday afternoon, working through every division of the county’s general fund for fiscal year 2027 while grappling with two major uncertainties: the potential financial impact of Florida’s proposed homestead property tax reform, and a state-required exercise showing what a 10% across-the-board budget cut would look like. The meeting also surfaced serious questions about administrator spending authority after a commissioner revealed that a nearly $100,000 settlement had been paid out without board approval.
General Fund Highlights: COLA Only, No Merit, Nine Fewer Positions
Financial Services Director Brian Eichinger presented the full general fund division-by-division budget review. The big-picture numbers: every department’s budget reflects a 2.3% cost-of-living adjustment (COLA) only — merit pay has been removed entirely. There are no new full-time positions in the general fund, and the county is carrying a net reduction of 9.25 full-time equivalent positions, largely from the planned closure of the adult daycare center and reductions in land management and social services.
Eichinger described the current budget process as the most aggressive review he had seen, saying staff was “fighting over $15 in some budget meetings.”
Key division-by-division changes include:
Board of County Commissioners: The $5,000 Chamber of Commerce membership dues were cut, with staff noting the county may not need to pay for chamber membership. Travel budget was trimmed but not gutted, since one or two commissioners may be new and want different training options.
Administration: Longevity pay was moved out of the central administration budget and into individual department budgets. ICMA membership was cut, but could be restored if the incoming county administrator is a member.
County Attorney: Operating budget decreased by reducing reserved funding for title work, most of which relates to beach projects already underway.
OMB: Took a modified zero-based budget approach, eliminating one less employee per conference, removing a budgeted public hearing that may not occur, and discontinuing a budget-book software that staff felt was not delivering value.
HR: Eliminated the summer internship program and moved tuition reimbursement back into the county’s pooled expenditure account.
Veterans Services: Reduced the Veterans Day Parade budget to match actual spending and removed a grant program for deployed veterans’ property tax reimbursements — a fund that staff said has never been accessed.
IT: Reorganized internally to move the two employees who work on the county’s CAD dispatch system into the E-911 fund, creating a clearer picture of CAD costs. The county lost the Flagler Beach IT services contract due to pricing; the Sheriff’s Office contract was lost a few years ago. Net change in IT positions: zero.
Drone (UAS) Program: Reduced equipment replacement budget because drones are experiencing less wear than originally anticipated. Staff confirmed the program maintains a return-on-investment calculator showing the cost savings versus outsourcing aerial surveys — typically saving around $70,000 per beach survey compared to third-party vendors.
Health and Human Services: An increase in the outside agency cold weather shelter budget was noted, though commissioners questioned whether the new Expo Center facility could eventually take over cold weather shelter operations. Staff said a new contract with the current shelter provider — at $1,000 per night for up to 24 nights annually, split with three municipalities — is set for renewal in October, potentially opening a window to make a change. Commissioners noted several faith-based organizations in Flagler County have expressed interest in participating on a rotating basis.
Outside agency funding — totaling approximately $470,000 going to roughly 10 organizations including food banks, behavioral health providers, and the Family Life Center — was flagged as an area commissioners want to review more carefully. SMA Behavioral Health was specifically discussed, with commissioners asking staff to clarify the county’s full financial relationship with the organization and what services it provides in return.
Senior Services: Increases in federal grant pass-throughs for the elderly; funding for congregate meals partially shifted into this division.
Adult Daycare: The budget currently shows no funding for next year, reflecting the direction to close or privatize the program. The private-partner proposal from the June 1 workshop is still being explored.
Libraries: The Palm Coast Library budget decreased slightly as some functions shifted to the Nexus Center. The new Nexus Center facility — which doubles as the Bunnell branch library and a community event space — is adjusting to its first year of real-world operations. Library Director Holly Albany said she will present a full operational review to the board in August, covering rental revenues, events, and expenditures. Commissioners raised concerns about staff burnout from late-night events and about maintaining the facility’s long-term condition.
Regarding free use by government entities: commissioners questioned why county departments, constitutional offices, school board, and municipalities are not charged for Nexus Center use. The library director explained that reciprocal use agreements and the policy approved by the board allow this. The policy can be revisited in August.
9-1-1 Dispatch: Now in its second year under the county, the dispatch division saw a significant personnel budget increase — primarily because the original budget assumed overtime would be reduced by changing the shift schedule, which did not happen. Interim County Administrator Adam Mengel acknowledged the original estimate was made under assumptions that did not materialize, and that a $99,000 transfer from pooled expenditures was needed this year to cover the shortfall. The dispatch workers are in the process of forming a union, and a formal contract is being negotiated. Mengel noted that overtime is simply a structural reality of 24/7 dispatch and EMS coverage.
AEDs: Commissioners confirmed that the county’s aging defibrillators — some more than 20 years old — were approved for replacement at the previous night’s meeting using reserve funds.
Fleet Management: Two fleet employees were eliminated in the prior year based on a projection that a newer fleet would require less maintenance. Now, as the county transitions from vehicle leases to vehicle purchases and longer hold times, those two positions may need to be reconsidered. Overtime costs are currently masking the gap.
Public Transportation: Removed from the general fund entirely and set up in its own fund, with 28 FTEs moving with it. The general fund will still contribute local match money required to receive federal and state transit grants.
Carver Center: Rising janitorial costs following a building expansion, combined with a history of growing county investment in the facility, prompted commissioners to reach consensus to have the interim administrator explore whether the school board — which uses the facility daily — could take over operations or enter a more formal cost-sharing arrangement. The old courthouse was also mentioned in the same context. No formal action was taken.
Pooled Expenditures: The $600,000 strategic plan reserve fund has been eliminated. No funds are budgeted for tax anticipation notes, as reserves are at a healthy level. A $4 million transfer for County Road 304 was removed; the county will fund road sections as they arise.
Princess Place Preserve and Eco-Cottages: Moving to their own dedicated fund, consistent with the Nexus Center model.
The Property Tax Reform Numbers
Property Appraiser Jay Gardner joined the discussion to walk commissioners through what the proposed homestead property tax exemption ballot measure could mean for Flagler County.
Under current projections:
- Year one: approximately $28–$30 million in lost ad valorem revenue county-wide from the $150,000 exemption increase, plus an additional $5 million from the non-homestead assessment cap dropping from 10% to 5%
- Year two: estimated $62 million county-wide when the exemption rises to $250,000
- By year five: countywide losses could approach $113 million when counting all taxing authorities
Gardner noted that these figures are based on the Florida Revenue Estimating Conference’s projections, and that Representative Greco recently presented significantly different numbers at a local meeting — roughly half the amount the county’s own projections show. Commissioners said Greco was unable to explain the discrepancy when challenged by the Property Appraiser at the meeting. Chair Pennington said she has a scheduled meeting with state Senator Leak to discuss the figures.
Gardner also noted that the referendum language — titled “Save Our Homes” in its original form — is currently before a court to clean up language that was described as one-sided. He confirmed the referendum itself is going to the November ballot regardless, but the title and some language will likely be stripped and rewritten.
Gardner added that he believes the five-year phase-in included in the bill may face legal challenges once it starts moving, and that no homestead exemption measure has ever failed when put to Florida voters.
He also warned that the bill restricts what remaining property tax revenue can be spent on, effectively limiting general government spending to enumerated categories related to public safety and administration, which could affect the county’s ability to fund libraries, parks, and other quality-of-life services.
The governor received $5.5 million in state funds to market the ballot initiative — money that will also be used to cover the required TRIM notice inserts that the Property Appraiser must mail with no ability to modify the content.
The 10% Cut Exercise
The second major discussion covered the state-required exercise modeling what a 10% reduction in the county’s general fund would look like. Options presented included:
- Eliminating all CRAs — county attorney noted CRAs cannot legally be terminated before their 2039 sunset date under current state law; all four active CRAs (Palm Coast, Flagler Beach, Bunnell, and Marineland) will continue unless dissolved through a complex statutory process
- Creating a library district — would require a public referendum and take time to implement; would remove library millage from the BOCC and give the library system more independence
- Eliminating the beach millage from the general fund — the county could still fund the beach through the half-cent sales tax and tourism development tax, roughly $4.5–$5 million annually
- Eliminating the strategic plan fund — already done; $600,000 removed
- Cutting constitutional officer budgets by 10% — shown for informational purposes, totaling approximately $6.4 million
- Cutting outside agency grants by 10% — approximately $144,000
At least one commissioner expressed dissatisfaction with the exercise as presented, saying she expected each individual department to produce its own 10% reduction scenario rather than high-level structural cuts. She asked that every department head come to the tentative budget process prepared to show where 10% could come out of their own area if needed. The interim administrator acknowledged that getting into department-level 10% cuts would mean cutting programs and positions — the “nice-to-haves” first, and eventually personnel.
Commissioners also discussed: raising the local option gas tax (one county in Florida has already done so), increasing the millage rate while still possible, and whether consolidation or outsourcing of certain services could reduce costs without service cuts.
Spending Authority and Settlement Controversy
One commissioner raised a significant concern about a $75,000 settlement paid by the prior administration earlier this year — without board approval — to resolve an impact fee dispute the board had previously discussed in a 2024 workshop and declined to settle.
She noted that a check was written from the strategic plan pooled expenditures account and that only administration signed the document; the county attorney apparently did not sign it. She argued this was an action the board had specifically said it wanted to control.
She also cited a separate $99,000 check written from the same account for dispatch overtime — again without a board agenda item.
The commissioner called for rolling back the administrator’s spending authority from $100,000 to $25,000, citing “velocity” of spending — meaning that even small amounts can add up quickly when there is no board review.
There was general consensus to revisit the procurement manual and spending authority thresholds before September, with multiple commissioners expressing support for a reduction. The discussion will return during the budget policy review in August.
July 4th Holiday
Commissioners reached consensus to give county employees Thursday, July 2 as an additional paid holiday, creating a four-day weekend for the nation’s 250th anniversary. Constitutional offices said they would generally follow the county’s lead. Shift-based employees in fire rescue and EMS will be accommodated on equivalent days.
The next budget milestone is the July 13 meeting, when the interim administrator will present the tentative budget and the board will vote on a not-to-exceed millage rate.
This article is based on a Flagler County Board of County Commissioners Budget Workshop transcript from June 16, 2026.
The post Flagler County Commissioners Prepare for Possible $30 Million Hit, Scrutinize Spending Authority, and Debate Hiring Freeze first appeared on Flagler County Buzz.
