The dispute stems from a long-standing services agreement dating to at least 1994, under which Delray Beach’s Fire-Rescue Department provided fire suppression, advanced life support, emergency medical transport, hazmat response, dive-rescue services, and fire code inspections to Highland Beach — a town that did not maintain its own fire department. The parties formalized and updated that arrangement through a 15-year Interlocal Service Agreement and subsequent amendments, most recently extending the deal through September 30, 2026. Under the agreement, Highland Beach was required to make monthly payments and reconcile actual costs through annual “True-Up” billing. The suit claims Highland Beach failed to pay True-Up bills of $121,514 for fiscal year 2020-2021 and $396,140 for fiscal year 2021-2022, and also refused to repay a $103,025.80 overpayment that Delray Beach discovered through an audit.
Tensions rose after April 2021, when Highland Beach issued a Notice of Intent to Terminate the agreement, citing a feasibility study that suggested the town could operate its own fire-rescue department at reduced cost. Highland Beach voters approved creation of the town’s own Fire and Rescue Department in November 2021. Highland Beach then rejected Delray Beach’s proposed staffing increase from 22.5 to 26.5 positions and disputed the city’s breach notices and billing demands throughout 2022 and 2023. When Delray Beach sought non-binding mediation in March 2025 — a step required under the contract before litigation — Highland Beach refused to participate, according to the complaint…