Tentative millage rate set as paid parking and bond referendum sparks heated Commission debate

Bond referendum versus paid parking argued by Ayscue (left), Minshew (middle) and Poynter (right)

The Fernandina Beach City Commission on Tuesday voted 4-1 to keep the city’s current millage rate of 4.6849 for the upcoming fiscal year, setting the stage for a formal budget adoption process that includes modest infrastructure investments and a projected $510,000 surplus.

Although the millage remains the same as 2024-25, it is a tax increase because higher property values will generate more revenue.

Much of the special meeting was focused on how to pay for two "big ticket" projects - revitalization of historic downtown pegged at $20 million and construction of the remainder of the riverfront flood protection wall at about $12 million.

City Manager Sarah Campbell recommended holding the line on the existing tax rate.

"There's not a lot of fluff. I mean, if you wanted me to go back and start reducing other areas, I could bring you a prioritized list of what I would cut first and where you would find additional money, but without harming the level of service, I think this is a lean budget," she said. "Overall, I think it shows minus 17 (positions) on the full -time equivalents in the budget streamlining."

Campbell told commissioners the proposed budget is balanced and leaves roughly half a million dollars in surplus. City leaders will decide whether to use those funds for capital improvements, debt reduction, or eliminate it altogether for a potential millage rollback.

Revenues from a proposed downtown paid parking program were not incorporated into the draft budget "because we don't know where we're going to land with that," Campbell said.

The adopted tentative rate will appear on TRIM (Truth in Millage) notices mailed to property owners. While commissioners may still reduce the rate during September hearings, any increase would require additional public notification and procedural hurdles under Florida law.

Campbell outlined the city's budget approach that balances all 26 city funds and includes key allocations such as:

• $600,000 to cover marina debt service.

• $400,000 to support the municipal golf course, with about 75% of that for capital improvements.

• Nearly $1 million for street paving and $100,000 for sidewalk repairs.

• Modest investments in software to improve efficiency across city departments.

• Major projects such as the riverfront seawall and the demolition of the damaged Brett’s Waterway Cafe have separate funding sources. The flood protection wall has $6 million in state grants available, and the Brett's project will likely be paid for with a line of credit.

City Manager Sarah Campbell

Campbell said the general fund retains a $510,000 surplus, giving commissioners some leeway for project prioritization, debt reduction, or possibly lowering the millage in final hearings.

The proposed budget includes funding for two beach walkover repairs based on the city's 2019 condition assessment. However, several commissioners pressed for a long-term strategy, citing rising construction costs and increased dune elevations that complicate access.

Vice Mayor Darron Ayscue suggested the problem may already be partially solved through the county’s beach preservation fund, the MSTU sand tax, which he believes could provide sufficient future funding.

Commissioner Genece Minshew pushed back stating that the MSTU provided only $50,000 annually for walkovers that can cost $350,000 each.

There was brief discussion of raising the tax rate by half a mill.

Commissioner Minshew warned that raising the millage would disproportionately affect commercial properties, accelerating the loss of local retailers downtown. “We are pricing businesses off the street,” she said, arguing instead for exploring general obligation bonds or paid parking.

Just how the city plans to finance long-delayed projects like the downtown revitalization and flood protection seawall sparked a heated debate.

Minshew noted that previous commissions failed to advance bond proposals to a referendum vote in 2022, 2023 and 2024. She claimed political considerations played a role in not "pulling the trigger" on a bond referendum.

Commissioner Tim Poynter argued that relying on future voter approval of bonds is a gamble. “We can’t keep kicking the can down the road,” he said. “Now is the time to fix the city.”

Ayscue proposed a modified rollback rate that would capture about $1 million in additional revenue without raising taxes for homesteaded properties. He also questioned the city’s 50% budget increase over the past decade despite a relatively flat population.

However, Minshew branded Ayscue's proposal as targeting potential voters by ensuring no tax increase for the 2026 city election. Ayscue's seat will be contested in next year's election.

"I'm not willing to go back to the modified rollback rate because I think that all that does is try to protect homesteaded properties which equate to voters and that people who own non-homesteaded properties and commercial properties are generally not voters in the city and so we're just going to put the burden on them and not worry about the consequences and I think that's wrong," she said.

Some commissioners supported letting voters decide through a bond referendum, potentially in the 2026 election. But others cautioned that if such a measure fails, the city could be left with no new revenue stream for pressing needs.

"You know that was the whole idea of getting paid parking. It's getting other people to also contribute to the well-being of this town that everyone says they love so much. Well, there's a cost to it," Commissioner Poynter said. "We could raise taxes, so we don't have to have paid parking. Or we can hold the line like we're trying to do and then ask other people to contribute.

“Paid parking may be unpopular, but it allows us to spread the burden beyond the 8,000 taxpayers in the city,” said Poynter. "Sometimes doing your job (as commissioner) is an inconvenient thing. But I care more about the city than my job (as commissioner) here......I'm tired of just the city of Fernandina Beach doing all the heavy lifting for everybody else."

Ayscue said he had no issues with a bond referendum to fund the projects.

"I have no problems with bond. I'm in favor of the bond because it will tell us exactly what the people want. People say that they want downtown revitalized. People say that they want the seawall. If you take this to a bond, if you get the price put it out and

say this is how much it costs, you will put it in their hands, and they will tell you if they want it or not.... I'm a big proponent of saying hey if you want it, put your money where your mouth is and this is how much it's going to cost do it," he said.

The issue is expected to resurface in coming weeks, as the commission continues work on selecting a potential paid parking management firm and on finalizing the budget and setting the millage rate.

Two public hearings on the proposed budget are scheduled for Tuesday and Wednesday.

and the final millage rate will be determined in September.