Commissioners Praise “Lean” $240M City Budget But have minor Tweaks Planned

Fernandina Beach commissioners expressed strong support for the proposed 2025–26 city budget at Tuesday’s workshop, describing it as detailed, disciplined, and responsive to both fiscal pressures and community needs. The $240 million budget, as presented by City Manager Sarah Campbell, is balanced and includes a $510,000 surplus in the general fund.

“It has now become your budget,” Campbell told commissioners. “And so anything that we do in these workshops is really just discussion and consensus building.”

The proposed budget using the same property tax millage as last year, reduces the city workforce by 17 full-time equivalent positions —l argely unfilled vacancies — and holds operating reserves steady while funding all existing programs.

“It's a pretty conservative approach to the staffing for this upcoming year. No new positions added, with the exception of the three positions in fire (department) that the city commission added mid-year,” Campbell said.

The General Fund, Capital Projects, and Surplus Use

The general fund totals $44 million, a 6.5% increase from the previous year, while revenues grew closer to 8%.

“We did not utilize all of that in this proposed budget,” Campbell noted, explaining the resulting surplus.

Commissioners are now weighing how those funds might be used.

Commissioner Tuten

Commissioner Joyce Tuten pointed to steep inflation in core expenses.

“Just funding the new firefighters is $700,000… Workman’s Comp increases were $170,000… Health insurance… almost $300,000,” she said.

Commissioners Genece Minshew and Vice Mayor Darron Ayscue supported using some of the surplus for health and safety initiatives.

“Whether we get the grant or not, I think we need to buy that equipment,” Minshew said, referring to diesel exhaust removal systems at the 14th Street fire station. “Our employees deserve better.”

She also called for including $55,000 for air quality monitoring.

Ayscue agreed: “I don't have any issues funding… the exhaust system… It's a one-time capital cost.”

Tuten went further: “We can protect ourselves more with air quality and water quality monitoring… It's something we don’t put a price tag on until we suffer it later.”

Campbell confirmed such changes could be made in September: “We will likely bring you a handful of things that we recommend you adjust at that public hearing.”

The Marina and Golf Course Are Still in the Red

Despite improvements, the city’s golf and marina enterprise funds remain reliant on general fund support. The golf course will operate with a projected shortfall of $429,384.

City Manager Campbell

“Three of those four (golf) divisions operate in the red,” Campbell said, though she emphasized a focus on revenue-boosting upgrades including an automatic ball dispenser at the driving range and clubhouse improvements. “We are working daily… on how to solve the math of golf and make it positive.”

The marina’s deficit, at $674,659, is largely driven by capital costs, debt service, and insurance.

“The bulk of the costs are in the operating area,” Campbell explained. “We think fuel is going to be down for a little while… slip fee revenue [may be reduced] while we rearrange docks and have things under construction.”

The marina is scheduled for a major overhaul at the beginning of 2026 with the demolition of Brett's Waterway Cafe and the extension of the inner dock, connectors and construction of a new bulkhead and riverfront walkway.

Still, Commissioner Minshew branded the marina’s struggles are mostly due to legacy debt.

“If they didn’t have the debt (service), the marina would be, at a minimum, break even, even having to pay the very expensive insurance,” she said.

Mayor James Antun and other commissioners acknowledged the cost of subsidizing the two amenities.

“That’s… a million dollars a year that we’re subsidizing,” Antun said. “If the commission ought to just cut costs, those are your two biggest low-hanging fruits right there.”

Historic Downtown Renovation Funding Still Missing

Campbell noted that about $200,000 was allocated to complete downtown revitalization design work, but more than $1 million in reserves remains unassigned.

“Because we don't have complete funding for [the downtown project], it hasn't been assigned to anything,” she said.

Commissioner Tim Poynter expressed disappointment: “We still have not funded anything for the downtown… I’m disappointed there’s no dollars in here to start fixing up the downtown.”

Commissioners Poynter and Minshew favor implementing a paid parking program downtown that would be projected to raise $2 million annually in order to fund downtown improvements.

Commissioners Praise Transparency, Push for Strategic Planning

Multiple commissioners praised Campbell for providing clarity and accessibility in the 2025-26 budget.

“This is the best budget I've seen since off and on being a commissioner,” said Poynter, who is in his third term on the city commission. “There’s virtually no fluff in this budget.”

Minshew concurred: “Thank you for this level of detail… I’m comfortable with this budget and don’t really have any major recommendations or changes.”

Looking forward, commissioners urged long-term strategic planning.

“We probably need to hold that $500,000 in contingency because we are going to need some additional money for legal services,” Minshew said. “There may be an opportunity to pay down a little bit of debt.”

Ayscue, who is the chair of the local Republican Party, echoed the need to prepare for state-level changes.

“I would expect there to be something come out of Tallahassee that's going to address property tax relief,” he said.

Commissioners indicated they would finalize changes during September’s public hearings. “Any actions that you want to take to amend this proposed budget will happen at both of the hearings in September,” Campbell said.