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The city-operated marina will have 11 employees in total — three full-time and eight part-time — following the transition from private management. The budget also adds three full-time stormwater employees and a chief resiliency officer shared among the water, wastewater and stormwater utilities. At the same time, vacant positions were eliminated in parks and other departments, resulting in a reduction in General Fund staffing.
Proposed budget boosts property taxes while expanding marina, public safety spending
Posted
FERNANDINA BEACH – City Manager Sarah Campbell has proposed a 2026-27 budget that increases the city's operating property tax rate, adds six full-time employees, launches a new marina department and positions the city to address growing demands despite financial uncertainty over the future of paid parking revenue and state property tax changes.
The proposed budget, to be presented to city commissioners Tuesday, calls for an operating millage rate of 4.8530 mills, up from the current 4.6849 mills, a 3.6% increase. The proposed rate is below the maximum tentative rate adopted by the City Commission last week but above both the rollback and modified rollback rates.
Under the tentative budget, property tax revenue would increase to $24.74 million, supporting a total operating budget of $23.75 million, approximately $2 million more than would be available under the rollback rate. City budget documents note that every one-tenth of a mill generates about $489,400 in additional property tax revenue.
The proposed rate reflects continued growth in Fernandina Beach's tax base. Total taxable value increased nearly 18% over the previous year to more than $5.09 billion, while projected property tax receipts would rise 22.2% over the current fiscal year because of both higher property values and the proposed millage increase.
The proposal now moves to public budget hearings later this summer before commissioners adopt a final millage rate and budget before the Oct. 1 start of the fiscal year.
The proposed budget increases the city's full-time workforce from 244 to 250 employees, while total staffing, including part-time and seasonal workers, would total 250 full-time, 76 part-time and 63 temporary or seasonal employees.
Although the proposed budget adds six full-time positions citywide, Campbell emphasized that all of the new full-time employees are in enterprise funds that support themselves rather than relying on property taxes.
Some departments would see reductions, including building/permitting, parks, recreation and youth programs. Overall, the city projects a net increase of six full-time employees and five full-time equivalent positions.
Personnel continues to account for the largest share of city spending.
The proposed budget allocates $6.36 million for police personnel, $7.84 million for fire personnel, $966,097 for finance, $847,931 for the city manager's office and $748,858 for information technology.
Overall personnel costs would increase to $34.27 million, a 6% increase over the current budget. Enterprise fund personnel costs would rise 20%, driven largely by the addition of marina staff and expanded stormwater operations.
Property taxes continue to be the city's largest General Fund revenue source.
The proposed budget estimates $23.59 million in property tax revenue, $3.29 million from local option gas taxes, insurance premium taxes and the small county surtax, $1.79 million in franchise fees, $1.53 million in state shared revenues and nearly $959,000 in ambulance and other service charges.
Commissioners will review the proposed spending plan while weighing several significant financial issues facing the city.
The city has committed paid parking revenues to demolition of Brett's Waterway Cafe, construction of a new marina bulkhead and waterfront improvements. At the same time, officials continue planning for future capital needs, including athletic fields and infrastructure projects, while monitoring the potential impact of the statewide homestead exemption referendum, which city officials have previously estimated could significantly reduce future property tax revenues if approved.
The proposed budget will be the subject of public hearings before the commission adopts a final spending plan and millage rate for the fiscal year beginning Oct. 1.
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Comments
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GDecker
Look, 4.8530 IS the "max" rate set by the Commission--so we have a City Manager (?) just building a budget to use that "max"--how clever. Now that is a real problem. Why a Marina dept? Wny not a Golf dept too? Why 6 more people in an organization already oversized? Well, voters elected a spend-spend-spend commission and here it is. When will there be actual management and operational efficiency?? Anybody can spend, management requires critical decision making--time for real (not pretend) management soon.
Tuesday, August 4 Report this
DouglasM
What GDecker said!!!
Mike L...last week you reported the Commission voted to tentatively set the rate at 4.8530 (4-1). This week you write that the budget just happens to be worked for 4.8530 which is "below" what the Commission voted on last week. You got something wrong here in your reporting.....I'll watch the video to see what really happened.
Amazing how the budget (which the Commissioners had not seen yet) magically matched the high rate they just happened to choose....man, something really smells on Ash Street.
Wednesday, August 5 Report this
rswarner
Excellent start. Guess I am, as a city resident, tired of not being prepared for infrastructure demands - or agreeing on any city priorities. It's always easy to complain, say no - and let everything decay. It's time to more forward.
Wednesday, August 5 Report this
Robert W
The city manager follows direction of the commission. There was a need for the city to take over operation of the marina which includes the significant improvement of what could result in increased revenue. So more people needed to be hired for marina operations. The water and storm water department has only three over-worked people. Increased development of the city requires more work for this department. Infrastructure maintenance has been kicked down the road for years and it is imperative to catch up. To achieve this, the commission set a maximum tax rate (they could have set a higher one). The city manager followed the commission's instructions.
Wednesday, August 5 Report this