On Aug. 15, the Flagler County government administration issued a letter to property owners in the unincorporated portion of the barrier island alerting them to a possible special tax the county would be enacting in the future to raise money for beach protection. The letter noted that while a line item for the new tax would appear on tax bills, there would be no levy in the coming fiscal year, from next Oct. 1 to Sept. 30, 2026. The indicated sum would be zero.
The county is proceeding with the public hearings legally required before such a special assessment is levied, scheduled for Sept. 11. But it is awaiting the results of an engineering study to determine what the levy would be next year (starting on Oct. 1, 2026). Property owners have taken the letter to mean that a tax is on its way now, and have also been critical of being singled out to bear the cost of beach protection.
Today, the county issued a clarifying statement and Q & A. “I wanted to provide context on why we issued a public statement regarding the MSBU,” County Administrator Heidi Petito said, referring to the levy by its technical term: a Municipal Service Benefit Unit, as the levy’s revenue is intended to provide a direct “benefit” to property owners–namely, protect their properties from the effects of beach erosion. “Many residents are having difficulty understanding the MSBU letter.”
The statement, which follows in full as provided by the administration, is intended to clarify concerns.
Flagler County mailed a public notice to residents within the unincorporated area of the barrier island regarding the proposed Municipal Service Benefit Unit (MSBU) for Beach Management.
The MSBU district was formally established in December 2024. As stated in the notice, the County Commission will not levy the assessment at the September 11, 2025, public hearing, and the assessment will appear on property owners’ tax bills as zero dollars ($0.00). Nevertheless, state law requires that the annual notice be issued to keep the MSBU active for future use.
A MSBU will be an important part of the overall Beach Management funding strategy going forward. However, before any assessments can be levied, we must complete the required apportionment study. To that end, the County has hired an engineering consultant to evaluate the appropriate cost allocation of the MSBU based on the needs of beach management and the direct benefit to the properties being assessed. Before any future assessment is levied, property owners will receive a separately mailed notice identifying the specific amount to be levied on their properties, the date of the public hearing at which the assessment is to be levied, and how to object.
Flagler County has remained consistent in its approach to funding this vital program, which requires a countywide solution. Because of the significant costs involved, and recognizing both the direct and countywide benefits of a healthy coastline, the funding plan will be structured as a blend of potential sources – including dedicated ad valorem millage, tourist development tax, the MSBU, local option sales tax, and state/federal grants. Some portions of this funding structure may require a voter referendum.
To demonstrate our commitment, the County has already set aside $8.1 million in the Fiscal Year 2026 budget to support Beach Management. Over the next year, the Board of County Commissioners will continue to solicit feedback from residents through a variety of channels including workshop discussions and public forums to gather input and explore options for establishing a sustainable, long-term funding stream.
No final decisions have been made. We deeply value public input and engagement, and we appreciate the community’s continued support and patience as we work together to protect and preserve our beaches for generations to come.
Beach Management MSBU – Frequently Asked Questions
Q: Why did I receive a public notice about a Beach Management MSBU?
A: The MSBU (Municipal Service Benefit Unit) district was created in December 2024. Even though no assessments are being levied this year, state law requires that a notice be mailed annually to keep the MSBU active.
Q: Does this mean I have to pay something now?
A: No. Nothing is being levied in 2025. The notice was informational only.
Q: Will the MSBU be used in the future?
A: Yes. The MSBU will be part of the funding plan for Beach Management, but the amount to be assessed must be determined by an engineering study that is currently underway.
Q: How will Beach Management be funded?
A: The plan has always been to use a blend of potential funding sources—including ad valorem (dedicated millage), tourist development tax, MSBU, local option sales tax, and state/federal grants. Some of these may require voter approval.
Q: How much money has the County committed so far?
A: The Board of County Commissioners has already set aside $8.1 million for Fiscal Year 2026 to support Beach Management efforts.
Q: What happens next?
A: Over the next year, the County will continue hosting public forums and discussions to shape the final funding strategy. No final decisions have been made—we want and value public input.
Q: Why is this important?
A: Protecting and preserving Flagler County’s beaches benefits residents countywide—supporting tourism, property values, storm protection, habitat, and quality of life.
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