Fernandina Beach commission sets tentative millage and adopts tentative budget as amended

The Fernandina Beach City Commission on Sept. 3 approved a tentative millage and adopted a tentative fiscal‑year 2025–26 budget after a brief public hearing and staff presentation on the city’s finances.

Clerk Miss Prince read the TRIM (Truth in Millage) statement, which listed the rollback rate at 4.3632 mills per $1,000 of assessed value and a proposed operating millage of 4.6849 mills — a 7.37% increase over the rollback rate. Ms. Campbell (city staff) told commissioners the city’s combined funds total about $240,000,000 and that administrative adjustments could raise the general fund balance to roughly $628,000.

Why it matters: The commission must adopt a tentative millage before adopting a budget under Florida law; the tentative rates set now can be adjusted at a second public hearing before the budget is finalized. The numbers adopted tonight frame the amount of property tax revenue the city expects to collect and the range of options staff and elected officials can use to allocate funds for operations, reserves and capital projects.

Commission discussion focused on several choices for the surplus. Ms. Campbell outlined options including lowering the millage (she cited scenarios with rates near 4.573 mills that would reduce available surplus by roughly $600,000), using the funds to pay down debt, increasing contingency or funding specific capital projects. She noted three smaller debt obligations (SBITA ~ $101,000 at up to 3.3% interest; stormwater ~ $184,000 at up to 4%; golf course debt ~ $591,000 at up to 4.86%) could be paid off individually with available funds, while larger debts could not be fully extinguished with the current surplus.

Vice Mayor Askew pressed staff for a specific ‘modified rollback’ calculation to show the dollar impact of a 3% reduction scenario and asked that staff return that precise number at the next meeting. "It's a 3% reduction in millage," Askew said, describing the rollback approach as roughly tax neutral for homesteaded properties under typical county calculations.

Several commissioners urged keeping the surplus in contingency because of pending litigation and major infrastructure projects, including waterfront and downtown improvements. One commissioner said the city faces "multiple lawsuits" and recommended reserving the funds so the city can respond without cutting planned capital work.

Formal actions: The commission adopted Resolution 2025‑156 (the TRIM/millage resolution) by a 4–1 vote and then, after approving a slate of staff amendments, adopted Resolution 2025‑157 to set the tentative budget for fiscal 2025–26 by a 5–0 vote. No members of the public offered comment on the millage or budget during the hearing phase that preceded the votes. The city will hold a second public hearing on Sept. 16 to consider final millage and budget adoption; the new fiscal year begins Oct. 1.

What’s next: Staff will provide the requested rollback‑scenario numbers for the next meeting, and commissioners will have an opportunity Sept. 16 to adjust the millage before final adoption.