Flagler Beach accepts FY25 audit; commission approves budget adjustments and temporary building‑permit fee cuts

At its April 23 meeting, the Flagler Beach City Commission accepted the FY25 audited financial statements and approved several budget actions to reflect changes since last year’s adopted budget.

Brendan McKitrick of James Moore & Company presented the audit, saying the firm issued its opinion and found no material weaknesses in internal control but did report one "significant deficiency" tied to a small number of audit adjustments. McKitrick noted enterprise fund activity, roughly $6.2 million in capital additions for FY25 and pension‑related disclosures included in the statements.

Commissioners unanimously moved to accept the audit. The finance director, Holly, reviewed quarter‑2 FY26 financials (cumulative October–March) and reported a roughly $3.5 million estimated surplus at quarter end, noting that significant portions of fund balance are restricted for capital or program-specific purposes.

The commission approved Resolution 2026‑04 to amend the FY26 budget, which included reallocations such as moving governmental impact fees into the general fund and freeing restricted reserves for vehicle and roadway needs; the resolution passed unanimously. Separately, the commission approved a temporary reduction in building permit fees (Resolution 2026‑28) to 25% of the adopted schedule to address fund-balance thresholds under state guidance; that resolution also passed unanimously.

City staff said the fee reduction includes a sunset and that staff will return with recommended fee schedules during the budget process.

Those measures aim to align permit fund balances with statutory requirements and maintain reserve policies while staff continues to refine long‑term fee structure and capital funding plans.