Delray Beach has taken its long-running money fight with neighboring Highland Beach straight to court, accusing the smaller town of skipping out on millions in fire and rescue bills. In a civil complaint filed June 10 in Palm Beach County Circuit Court, the city says a post-fiscal-year true-up review pushed the total Highland allegedly owes to about $3.8 million, turning a years-long billing dispute into full-blown litigation just as Highland Beach moves to stand up its own fire-rescue operation.
What the complaint says
The City of Delray Beach filed the civil complaint (City of Delray Beach, Florida v. Town of Highland Beach, Florida, Case No. 502026CA006503XXXAMB) on June 10, 2026, naming the Town of Highland Beach as defendant. The filing, prepared by Cole, Scott & Kissane, P.A. and listing attorney Sarnaz Alempour for the city, alleges Highland Beach failed to pay a series of post-year true-up bills, identifies an overpayment and references a December 2022 notice of breach. The complaint brings claims for breach of contract and breach of the covenant of good faith and fair dealing. Delray seeks damages, late charges, interest and costs and has demanded a jury trial, according to Boca Post.
How the towns' deal worked
For decades the two communities relied on an interlocal setup under which Delray Beach staffed Highland Beach’s fire station and provided services that included fire suppression, heavy rescue, basic and advanced life support, hazardous-materials response and dive rescues. Delray’s 2022 budget lists Highland Beach as an intergovernmental revenue line of about $5,439,029, according to the City of Delray Beach budget.
Highland Beach’s official financial report documents the agreement’s renewal history and mechanics, including the town’s recent push to evaluate a standalone fire-rescue department, as detailed in the Town of Highland Beach financial report.
True-ups and the disputed bills
State review materials compiled for the Florida Legislature show true-up differences of $121,514 for fiscal 2020–21 and $396,140 for 2021–22, figures that have been at the center of the local dispute, according to the Joint Legislative Auditing Committee.
Delray’s court filing says a later 2025 review of transactions pushed the total true-up amount to roughly $3.8 million. The complaint also alleges the city identified a $103,025.80 overpayment and issued a December 2022 notice of breach for $517,654, figures described in the complaint reported by Boca Post.
Why Highland wanted out
Highland Beach commissioners approved a 2021 resolution to establish and fund a municipal fire-rescue department, subject to voter approval, and voters later backed the plan. The town then began planning station upgrades, equipment purchases and staffing to start local operations. Highland’s financial report also records that the town sent Delray a notice terminating the contract effective April 30, 2024, a move that set the stage for the billing fight that followed, according to the Town of Highland Beach financial report.
What comes next
The lawsuit is newly filed in Palm Beach County civil court, and Delray’s jury demand means the parties could face a drawn-out exchange of motions, discovery and settlement talks before a trial date is set. The dispute also arrives amid earlier legislative and audit scrutiny into how interlocal true-ups were calculated, a point raised in a 2023 audit request and related review of city records that has helped focus attention on the municipal accounting behind the bills. For background, see the Joint Legislative Auditing Committee packet.
For residents, the suit could have budgetary ripple effects if the parties do not resolve the accounting disagreement quickly. The outcome will determine whether Delray’s claimed shortfalls become a budget problem for Highland Beach, Delray Beach, or both, and court filings such as an answer, motions or a case calendar will ultimately set the timetable for what happens next.
