Flagler Beach Approves Flat Tax Rate and $87 Million Budget, But Not Before 2 Commissioners Kill Engineer’s Job

The Flagler Beach City Commission last week approved its tax rate and $87 million budget for the coming year. The general fund, for which the property tax is levied and from which basic city services and public safety is funded, represents just $15.3 million of that. Pier construction and fee-based utility services account for almost three-quarters of the budget. 

The commission approved both items at its second and final budget hearing last Thursday, though not before two of the four commissioners at the meeting–Rick Belhumeur and John Cunningham–risked leaving the city without a budget if the city manager didn’t scrap his plan to hire a second city engineer. That second city engineer position was scrapped. 

It was an unusual level of micromanaging the city manager’s staff from the commission: Commissioners Scott Spradley and James Sherman, and the mayor, weren’t comfortable with it. But in the interest of ensuring that the commission approved the budget, City Manager Dale Martin didn’t put up a fight, and in doing so all but said that the need for the additional engineer wasn’t proven. 

Commissioners approved a flat tax rate of $5.45 per $1,000 in taxable value, the same as this year’s rate. For a house assessed at $250,000 with a $50,000 homestead exemption, the bill will be $1,090, not including county and other taxes. 

Under Florida law, the flat tax rate is officially a 5.6 percent tax increase, because even outside of new construction, the city will net more revenue next year ($6.4 million) than it did this year ($5.8 million). But Florida law, reflecting politics more than math or precision, misapplies the meaning of “tax increase” to expected revenue rather than to the tax rate. 

To erase the “tax increase” under Florida law, the city would have had to adopt the so-called rolled-back tax rate of $5.16 per $1,000 in taxable value, leaving city revenue flat. That approach does not take inflation into account or the city’s loss of purchasing power year after year, if it were to leave revenue flat. 

The pier fund this year includes $19.3 million–more than the general fund–most of it money earmarked for pier demolition and construction. The city’s water and sewer billing is expected to generate $43.6 million, its garbage pick-up fund $2.3 million. Its largest expense out of the general fund is the $4.8 million that pays for the police and fire departments. The city is also carrying a $3 million reserve. 

The hearing appeared routine, without a single member of the public addressing the commission before the vote, until Belhumeur objected to Marin’s plan to add the second city engineer to the payroll. 

“Three years ago, we had an engineer we paid $90,000, now we have an engineer who makes more than the city manager,” Belhumeur said, “and with the new proposed additional engineer, that 90,000 is up and over 330,000, counting benefits. I just think that’s too much, too quick, and I’ll be voting no unless the utility engineer comes out.”

According to a city spreadsheet of 2025-26 salaries, Bill Freeman, the engineer, is to make $171,810 in 2025-26 (he’s currently at $166,774, and $200,000 with benefits). Martin’s salary will be $170,000 (he’s currently at $165,000, and $198,000 with benefits). The new engineering position was to have a salary of $100,000, and $124,000 with benefits, according to the city’s finance director. 

“By all means,” Martin said. “I know there’s been discussion before, but there’s been no additional direction, but this is your budget. If you want it out, take it out.” Commissioner John Cunningham agreed. 

Commissioner Scott Spradley did not. He said costs keep rising and residents’ concerns over stormwater and infrastructure are daily in his ears. “We’ve had studies out there. We have plans. We have an incredible amount of work that needs to be done going forward,” Spradley said. “And for me, just as a city commissioner, there are just certain things that I’m not an expert at. I’m not an expert at what the range is. This is why we have a city manager. And so for me, I don’t feel I would be doing a service to say, let’s just cut somebody’s salary at the same time we’re saying we have a lot of work to be done that needs engineering work. I for one, would prefer that the budget be approved as it is, without singling in on that particular item and just slashing it.”

Commissioner Eric Cooley was absent (he was not on vacation but on a private family matter involving a death in the family). If the commission were to vote 2-2 for the budget, the vote would fail, and the city would be without a budget. Martin didn’t want the city in that situation. 

“As the year goes on, if there becomes a demonstrated need for it, we can always amend the budget and put it back in,” the city manager said. “But for the purpose of moving forward the budget, if this is a hold up, then cut it out.” Martin said he would bring the matter before the commission before the hire. He said there are additional staffers being added to address infrastructure matters. “If we still need more boots, we’ll come back to you and get your approval before we do any more,” he said. 

With that, Belhumeur motioned to approve the budget as amended, and Spradley seconded. Despite Martin’s compromise, Cunningham voted no: he had been displeased with the fact that the manager’s evaluations had not yet been conducted. “That’ll be scheduled at one of the future meetings when all five of you will be available,” Martin said. 

“Your contract says August,” Cunningham told the manager. The tone, and the dissent, itself suggested a level of dissatisfaction that wasn’t waiting for the evaluation.